Annual General Meeting
June 24, 2020
L I F E C YC L E S E RV I C E S
Integration
D a t a C e n t r e Security
5G 5G
Network
Annual General Meeting June 24, 2020 Network Security D a t a C - - PowerPoint PPT Presentation
Annual General Meeting June 24, 2020 Network Security D a t a C e n t r e 5G 5G Integration L I F E C YC L E S E RV I C E S Forward-Looking Statements This presentation contains statements that, to the extent they are not recitations of
June 24, 2020
L I F E C YC L E S E RV I C E S
Integration
D a t a C e n t r e Security
5G 5G
Network
Private and Confidential
This presentation contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements include statements regarding key industry trends and growth strategy. Any such forward-looking statements are based on assumptions made by Pivot in light of its experience and its perception of historical trends, current conditions and expected future developments, including the continued growth in IT spending, Pivot's continued financial liquidity to invest in its business and pay quarterly dividends, as well as other factors Pivot believes are appropriate under the relevant
subject to any number of risks, assumptions and uncertainties. Many factors could cause Pivot's actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: negative impact of the COVID -19 pandemic on the industry and Pivot’s operations and those of its suppliers and customers, uncertainty in the global economic environment; the possibility that Pivot will not be able to maintain its liquidity, and the risks described in the Company's Annual Information Form for the year ended December 31, 2019 under the heading "Risk Factors" available at sedar.com. The "forward-looking statements" contained herein speak
publicly update or revise such information, whether as a result of new information, future events or otherwise. Non-GAAP Measures Certain financial measures contained in this presentation are not recognized under IFRS and are identified by the notation “Non GAAP measure”. A description of these non-GAAP measures and a reconciliation to relevant IFRS measures appear in the Company’s MD&A for the relevant period (available on the Company’s website or sedar.com).
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Private and Confidential
Customers
Technology Partners
Knowledge Based Workforce
Growing Services Portfolio Global Touch and Reach
1. Fiscal 2019 re-presented in Canadian Dollars 2. Non GAAP measure
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($ CAD Millions except otherwise noted)
Private and Confidential
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Complex Offer
Basic Offer Complex Offer Optimize Offer Outcome Offer
LEVEL 1 SUPPLIER LEVEL 2 SUPPLIER LEVEL 3 SUPPLIER LEVEL 4 SUPPLIER
Great Product Great Product Great Product Product-Attached Services Product-Attached Services Outcome Offers and Platforms Operate, Adopt, Optimize Managed Services Source: Tsia
Private and Confidential
✓ Scale ✓ Sales force ✓ Experienced leadership team ✓ Vendor relationships ✓ Knowledge ✓ Access to customers ✓ Enterprise B2B eCommerce platform ✓ Global reach
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✓ Build on core products and services business ✓ Enhance services/solutions capabilities and portfolio ✓ Drive a commercial transformation to expand addressable market ✓ Improve cost management ✓ Leverage preferred partnership agreement with Intel
Private and Confidential
6 Workplace
Modern Desktop Collaboration Contact Center Mobile
Enterprise Network
Wifi (6) DC Network Route / Switch SDN
Edge
SDWan Private Mobility uCPE/NFV WAN Connectivity
Cloud
Public Private Hybrid Data Mgmt
6,300 + certifications across 800 + manufacturers
Application
Database OT IoT AI/ML Security
Private and Confidential
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▪ Fulfillment & Management ▪ Depot & Disposition ▪ Imaging & Configuration ▪ Logistics & Coordination
▪ Consulting ▪ Assessment ▪ Implementation ▪ Resident ▪ Optimization
▪ Onsite/Remote Install, Move, Add & Change ▪ Low Voltage/Fiber ▪ Maintenance & Break-Fix ▪ Smart Hands
▪ Perm/Direct Hires ▪ Enterprise Contract Staffing ▪ Contract Staffing ▪ Executive Level Hires ▪ Remote Hires
▪ First Call Support ▪ Service Desk as a Service ▪ ITAM as a Service ▪ Digital Operations Center - NOC/SOC
Private and Confidential
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Low High High
Private and Confidential
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1. Non-GAAP measure
($ CAD Millions)
1,205 1,232 1,297 758 533 308 FY 17 FY 18 FY 19
Non-Major Majors
219.1 211.4 217.7
FY 17 FY 18 FY 19
31.3 20.1 35.6 3.1 6.6 2.9 FY 17 FY 18 FY 19
Net Smart Edge spend Adjusted EBITDA
IFRS 16 improved 2019 Adjusted EBITDA by $6.9 million
11.2 12.0 13.6
FY 17 FY 18 FY 19
Private and Confidential
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48.7 52.1
Q1 F19 Q1 F20
12.5 13.8
Q1 F19 Q1 F20
1. Non GAAP measure
($ CAD Millions) 315 345 75 32
Q1 F19 Q1 F20
Non-Major Majors 9.7%
4.4 5.4 0.4 Q1 F19 Q1 F20
Net Smart Edge spend Adjusted EBITDA
Private and Confidential
11 ($ CAD Millions except ratios)
Increase in Adjusted Debt1 from December 2019 to March 2020 due to foreign exchange impacts. Notes: 1 - Adjusted Debt is a non-GAAP measure. It normalizes the impact
liabilities less current assets plus long term financial liabilities, excluding Lease liabilities from IFRS 16. Adjusted Debt: EBITDA ratio is also a non-GAAP measure. 2 - Drawn on ABL Facility is actual amount drawn on the facility at period end. 3 - Adjusted EBITDA is a non-GAAP measure.
TTM EV/Adjusted EBITDA 6.9 EV**/Adjusted EBITDA 3.9
Notes: ** - EV calculated using Adjusted Debt instead of standard net debt definition
98.1 106.0 72.9 77.9 Dec-17 Dec-18 Dec-19 Mar-20
Key Metric Dec-17 Dec-18 Dec-19 Mar-20 Actual Draw on credit facility2 170.3 135.1 138.7 188.4 Adjusted Debt1 98.1 106.0 72.9 77.9 TTM Adjusted EBITDA3 31.3 20.1 35.6 36.5 TTM Interest Expense 7.1 7.9 8.0 7.5 Adjusted Debt:Adjusted EBITDA1 3.13 5.27 2.05 2.13 Net Interest Coverage 4.41 2.54 4.45 4.85
Increase due to FX
Private and Confidential
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TSX Symbol: PTG Dividend: $0.04 per share paid quarterly, Yield ~9.3% Total Shares Out: 38,359,650 (at May 11, 2020) Insider Ownership: ~1,700,000 Market Cap: ~$64.4 million (at June 18, 2020) Adjusted Debt: $77.9 million1(at March 31, 2020) 52-week High/Low: $1.97/ $0.78 Founded: 2010
From Jan 2017, PTG Total Return is 34.2%
1 definition in MD&A
L I F E C YC L E S E RV I C E S
Integration
D a t a C e n t r e Security
5G 5G
Network
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