Corporate Overview Enghouse - Corporate Presentation Q3 FY 18 Q3 FY 19 1
Forward-Looking Statements Disclaimer Certain statements made in this presentation and the related materials may contain forward-looking statements, which are not historical facts, but are based on certain assumptions and reflect Enghouse’s current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current These risk factors are identified in Enghouse’s Annual Information Form and other expectations. periodic reports filed with applicable regulatory authorities from time to time. Enghouse disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Market and Industry Data This document contains certain statistical, market and industry data obtained from industry publications and reports. Industry publications and reports generally indicate that information has been obtained from sources believed to be reliable, but do not guarantee the accuracy and completeness of such information. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. While we believe this data to be reliable, market and industry data is subject to variations and cannot be verified with certainty due to limits on the availability and reliability of data. Enghouse has not independently verified any of the third party data referred to in this document. 2
Strategy Build a diverse enterprise software and services company through: Growing our interaction management solutions business • Interactive Management Group Growing our network solutions and transportation management software businesses • Asset Management Group Consistently generating revenue growth and positive cash flow Completing selective acquisitions within existing markets and entering new strategic software markets on an opportunistic basis 3
Snapshot HQ in Canada, offices in Toronto Stock Exchange Dual Growth Revenue 20+ countries (organic & acquisitions) TSX:ENGH Enghouse Interactive Enghouse Networks Enghouse Transportation Contact center software Telecom software Transportation software ~1,600 employees Revenue Profitable growth 4
Interactive Portfolio Solutions that transform customer engagement OMNI-CHANNEL CAL ALL RE RECEPTION/CALL VIDEO INTER VI ERACTION CONTACT CEN ENTER ER HAN ANDLING Healthcare Mid-market Contact Center Mid-market Attendant Console Financial Institutions Enterprise Contact Center Enterprise Attendant Console Enterprise Video Collaboration Cloud Contact Center Cloud Attendant Console AI Powered Social Media Directory Integration Video Enabled Contact Center SELF SELF-SERVICE QUALITY QU Y MAN ANAGEMENT TEL ELEP EPHONY, VI VIDE DEO & CRM RM INTEGRATION AI Powered Multi-channel Self-service Call Billing and Reporting CRM Integration Mobile Self-service Platform Interaction Recording and Analysis Telephony Application Enablement Knowledge Management Suite Survey Management Video Application Enablement Workforce Management VoiceXML Application Test AI Powered Business Insights 5
Networks Portfolio Technology solutions to optimize performance for next generation network operators BUSINESS SU SUPPORT SYSTEMS OP OPER ERATIONS SUP SUPPORT GEOGRAPHIC INFORM RMATION SYSTEMS SYSTEMS MVNO Solutions e-AI Fiber Planning & Design Wholesale Revenue Management Network Inventory Coverage Portals Order to Cash Planning & Resource Management Network Operations Centre Telecom Optimization Management Service Assurance Customer Care Network Testing Mobile Alert Messaging MOBILE E VAS AS CLOUD NET ETWORK SE SECURITY, MEDI EDIA & CONTENT ROUTING & CONTROL VAS Consolidation TVaaS Network Firewalls Messaging Video Solutions Diameter Signaling Controller Call Completion Analytics Public Safety Smart TV Browser 6
Transportation Portfolio Software solutions for Public Safety, Transit and Supply Chain TRA RANSIT OPER ERATIONS PRIV RIVATE TRA RANSP SPORTATION COMMUNICATIONS Fixed Route & Paratransit Coach & Tour Operations Management Fixed Route Scheduling Paratransit Dispatch Operator & Fare IVR Workflow & Driver Management e-Ticketing Automated Fare Collection PUBL BLIC SAFE AFETY FLEET & TRA FLEE RANSPORTATION MAN ANAGEMEN ENT Emergency Control & Dispatch Logistics Management (1 st responders) Order Tracking Non-Emergency Patient Telematics Transport Container Tracking & Monitoring 7
A NNUAL R ESULTS 8
Fiscal Year Results (ending Oct 31) HOSTED & MAINTENANCE TOTAL REVENUE REVENUE $ 343m $176m $325m $166m $ 308m $152m $279m $136m $115m $220m 51% 52% 49% 49% 51% FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18 ADJUSTED EBITDA DIVIDEND PER SHARE $0.34 ( based on date of record) PER SHARE $1.94 $1.73 $0.30 $0.26 $1.44 $1.30 $0.22 $0.18 $1.02 FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 FY 15 FY 16 FY 17 FY 18 Note¹: Compounded annual growth rate FY14 - FY18 9
Revenue Split - FY 18 REVENUE BREAKDOWN REVENUE BY GEOGRAPHY Hardware 2% Services License 17% SCANDINAVIA 30% US 24% 30% Hosted & APAC/Others Maintenance 6% UK EUROPE 51% 19% 18% CANADA 3% REVENUE BY BUSINESS GROUP Interactive Management Asset Group Management $189m or 55% Group $154m or 45% 10 Note: % rounding applied to charts and tables throughout this corporate presentation
Annual Results % FY 18 FY 17 Change Revenue $342.8m $325.4m 5.4% Revenue - Interactive Management Group $189.3m $190.7m -0.7% Revenue - Asset Management Group $153.6m $134.7m 14.0% Hosted and Maintenance revenue $176.4m $165.8m 6.4% Adjusted EBITDA¹ per diluted share $1.94 $1.73 12.1% Adjusted EBITDA¹ $106.0m $94.0m 12.8% Dividend - per common share, based on date of record $0.34 $0.30 13.3% Cash spent on acquisitions - net of cash acquired & holdbacks $16.8m $21.3m -21.1% Cash & Investments balance - end of period $193.9m $130.3m 48.8% Cash flow from operations $98.3m $83.2m 18.1% Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition related restructuring costs. 11
Q3 & YTD FY 19 (9 MONTHS ) 12
Q3 & YTD FY 19 (9 months) % % Q3 FY19 Q3 FY18 YTD FY19 YTD FY18 Change Change Revenue $101.3m $86.7 m $276.5m $257.0 m 16.8% 7.6% Revenue - Interactive Management Group $56.9m $47.5m $144.9m $143.5m 19.6% 1.0% Revenue - Asset Management Group $44.4m $39.2m $131.7m $113.5m 13.3% 16.0% Hosted and Maintenance revenue $58.4m $48.6m $158.7m $142.6m 20.2% 11.3% Adjusted EBITDA¹ per diluted share $0.51 $0.50 $1.48 $1.43 2.0% 3.5% Adjusted EBITDA¹ $28.1m $27.4m $81.6m $78.1m 2.3% 4.4% Dividend - per common share, based on date of $0.11 $0.09 $0.29 $0.25 22.2% 16.0% record Cash spent on acquisitions - net of cash acquired $68.7m $1.9m $95.3m $16.6m & holdbacks Cash & Investments balance - end of period $141.3m $178.4m $141.3m $178.4m -20.8% -20.8% Cash flow from operations $13.9m $29.3m $59.6m $74.2m -52.6% -19.6% Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition related restructuring costs. 13
Acquisition Strategy Established track record of value creation through acquisitions To consistently generate positive operating cash flows to fund further growth, drive shareholder value while minimizing shareholder dilution Economic factors are favorable for acquisitions especially for small- cap companies Target companies in the $5m - $50m revenue range preferably with strong recurring revenue Geographic, product or scale expansion Mission critical solutions High barriers to entry Objective is for a cash on cash payback within 5 - 6 years 14
Recent Acquisitions MOBILETHINK CAPANA VIDYO Q2 FY 18 Q1 FY 19 Q3 FY 19 TELEXIS PROOPTI SIMATECH ESPIAL Q1 FY 19 Q2 FY 19 Q1 FY 18 Q3 FY 19 DENMARK SWEDEN USA NETHERLANDS SWEDEN DENMARK CANADA 15
T HANK Y OU ! 16
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