INVESTOR PRESENTATION December 2019
Forward-looking Statements & Non-GAAP Financial Information TECHNOLOGY | INNOVATION | SOLUTIONS Forward-Looking Language This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward- looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, our guidance relating to revenue, EBITDA or Adjusted EBITDA and cash and cash equivalent balance, and statements we make regarding targeted, possible and expected growth in revenue, EBITDA or Adjusted EBITDA, free cash flow and headcount. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, our ability to achieve operational efficiencies and meet customer demand for products and services and the risks described in the Company’s filings with the Securities and Exchange Commission, including the Company’s reports on Form 10-K and Form 10-Q. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise. Use of Non-GAAP Financial Information To supplement the unaudited condensed consolidated financial statements presented in accordance with U.S. GAAP in this presentation, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include adjusted EBITDA and adjusted earnings from operations. Management believes that such information can enhance investors’ understanding of the company’s ongoing operations. See the accompanying table below for a reconciliation of adjusted EBITDA and adjusted earnings from operations to the most closely related GAAP measure. 2
Agilysys Overview Reservations PaaS Software Solutions Provider Platform Guest Value Exclusively Hospitality Staff Analytics Mobility Optimization Provide Mission Critical Solutions Payment Guest Connected- ness Products with Global Reach Kitchen Guest Operations Self-service $ 151.7 M 52 % 34 % 22 % Total Recurring Revenue as a % of Subscription Revenue as a Subscription Revenue Revenue Total Revenue % of Recurring Revenue Growth Rate 3
What Sets Agilysys Apart TECHNOLOGY | INNOVATION | SOLUTIONS Pure Hospitality Hospitality is all We Do Because our Business is 100% Focused on this Industry Comprehensive Solutions Agilysys has the Broadest Software Offerings with the Deepest Functionality in the Market Obsessively Customer Centric We are Obsessive About Putting our Customers at the Center of Everything We Do 4
Go To Market Strategy TECHNOLOGY | INNOVATION | SOLUTIONS OBSESSIVELY CUSTOMER CENTRIC IN EVERY MARKET WE SERVE ENGINEERING DRIVEN COMPANY R&D Team >95% ~50%* Increase Strength** Customer in TTM Jan 2017 – 230 Retention International Oct 2019 – 680 Annually Bookings Dec 2019 – 730 *Note: All data is as of the trailing twelve months ended September 30, 2019. **R&D strength numbers represent approximate headcount. The Dec 19 figure is an estimated projection. 5
Strategic Product Vision TECHNOLOGY | INNOVATION | SOLUTIONS We Are in the Business of Providing A Fully Integrated Suite of Software Solutions to Enterprise Food & Beverage and Lodging Operators in the Hospitality Space that Enable Memorable Experiences Across All Channels of Guest Engagement 6
Enabling The Guest Journey TECHNOLOGY | INNOVATION | SOLUTIONS Online Golf Omni Channel Kiosk Employee Spa Activities Discover Arrive/Plan Procure Order Experience Reserve/Book Suggest Pay Analyze Market Gaming Hotels & Resorts Cruises Food Service Sports & Entertainment Delivering a Comprehensive Suite of Solutions 7
An Omni-Channel F&B Product Strategy TECHNOLOGY | INNOVATION | SOLUTIONS Smart Phones: rGuest Buy OnDemand Current Solutions Interface With In Room Tablets: Physical Store: rGuest Buy InfoGenesis OnDemand IG Mobile Order rGuest Seat Marketing(CRM) Analytics: & Upsell: rGuest Analyze CRM / Loyalty Desktop: Website: rGuest Buy OnDemand rGuest Buy OnDemand rGuest Seat Kiosk: Mobile Apps: rGuest Buy Kiosk APIs 8
PMS Ecosystem TECHNOLOGY | INNOVATION | SOLUTIONS Search & Discovery Current Solutions Marketing Analytics & CRM Booking Interface With Reviews & Arrival Reputation Management Payment Loyalty & Rewards Spa Housekeeping Activities Golf Maintenance Concierge Back of House Activities 9
We Serve Leading Hospitality Brands TECHNOLOGY | INNOVATION | SOLUTIONS 10
We Provide Industry Leading Hospitality Solutions TECHNOLOGY | INNOVATION | SOLUTIONS 66 % PROPERTY Allocation of POINT-OF-SALE of Revenue 23 % MANAGEMENT Total Revenue of Revenue Lodging Solutions Food and Beverage Solutions ~274k rooms at 09/30/19 ~57k end points at 09/30/19 9 % +1% since 09/30/18 +11% since 09/30/18 of Revenue 2 % DOCUMENT INVENTORY & MANAGEMENT PROCUREMENT of Revenue 10 % 90% Region of Revenue of Revenue North America APAC Plus EMEA Note: Revenue contribution figures represent percentage for the trailing twelve months ended September 30, 2019 and include an allocation of revenue amounts to our 4 core product groupings. 11
Hospitality Market TECHNOLOGY | INNOVATION | SOLUTIONS ARR Market Opportunity ARR Product Opportunity $4.8 Billion $4.8 Billion SA $0.35B 7% APAC PMS $1.36B $1.61B 28% 34% NA $1.72B POS 37% $3.18B 66% EMEA $1.36B 28% Agilysys ARR ~ $79.1M* *Trailing twelve months ended September 30, 2019. 12
Achievements Under New Management Team TECHNOLOGY | INNOVATION | SOLUTIONS Continuing to Focus on Expand Product Revenue Growth Improve Profitability Capabilities 14% $3.2M 6 Tripled Raised FY20 Revenue Q1 FY20 was Record Consecutive Quarters of R&D Team Strength Guidance Adjusted EBITDA Record Revenue 8 25% $6M Fully Captive IDC Quarters of Sequential YOY Increase in Improvement in Cash Revenue Growth Adjusted EBITDA YOY Q2FY20 22% $38.9M 10 Cash Flow Positive in FY19 TTM Subscription Growth Cash as of Q2FY20 New Software Modules 13
Long Term Financial Targets TECHNOLOGY | INNOVATION | SOLUTIONS Current 12/31/17 EV/Rev EV/Rev 1.9 3.9 Targeting Four-Year Revenue Growth CAGR of between 10% - 20% and Adjusted EBITDA of between 10%-20% of Revenue by FY2021 (begins April 2020) 14
India Development Center TECHNOLOGY | INNOVATION | SOLUTIONS • Currently Expanding Capacity To: • 100,000 Square Feet • 1,000 Employee Capacity • Approximately 90% of Current Employees are Technical Staff Chennai 15
FINANCIAL OVERVIEW
Evolving Business, Evolving P&L TECHNOLOGY | INNOVATION | SOLUTIONS Financial Metrics and Valuation* Business Metrics (as of 09/30/19) Share Price (12/03/19) $26.23 Direct POS End Points Managed ~57k Y/Y Growth 11% Diluted Shares Outstanding 23.2M Direct Hotel Rooms Managed ~274k Diluted Market Capitalization $609.5M Y/Y Growth 1% Cash (as of 09/30/19) $38.9M Recurring Revenue* 52% Debt (as of 09/30/19) $14.8M As % of Total Revenue Enterprise Value $585.5M Subscription Revenue* 34% As % of Recurring Revenue Revenue $151.7M Services Revenue* 19% As % of Total Revenue Gross Profit $78.5M Adjusted EBITDA^ $10.7M Subscription Revenue Growth Y/Y* 22% Adjusted Earnings from Operations^ $6.8M rGuest as % of Total Revenue* 10% Earnings per Share ($0.52) New Customer Count* 70 EV/Revenue 3.9x EV/Gross Profit 7.5x ^Non-GAAP measure, see reconciliation on slide 27. *Trailing twelve months ended September 30, 2019. 17
Strong Balance Sheet TECHNOLOGY | INNOVATION | SOLUTIONS Consolidated Balance Sheet (in thousands) March 31, 2019 September 30, 2019 Cash, Cash Equivalents and Marketable Securities $40,771 $38,915 Other Current Assets 38,237 33,478 Long-Term Assets 84,583 91,402 Total Assets $163,591 $163,795 Current Liabilities $58,301 $52,585 Other Liabilities 4,668 12,845 Total Liabilities 62,969 65,430 Shareholders’ Equity 100,622 98,365 Total Liabilities and Shareholders’ Equity $163,591 $163,795 18
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