Annual General Meeting June 24, 2020 Network Security D a t a C - - PowerPoint PPT Presentation

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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


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SLIDE 1

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

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SLIDE 2

Private and Confidential

Forward-Looking Statements

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

  • circumstances. However, whether actual results and developments will conform to Pivot's expectations and predictions is

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

  • nly as of the date of this presentation and, unless required by applicable law, the Company undertakes no obligation to

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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SLIDE 3

Private and Confidential

2019 Revenue¹

$1.6B CAD

Customers

~2000

Technology Partners

400+

Knowledge Based Workforce

800

Growing Services Portfolio Global Touch and Reach

A Leading Provider of IT Products and Services Serving a $280 Billion Global Market

1. Fiscal 2019 re-presented in Canadian Dollars 2. Non GAAP measure

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Q1 2020 Adjusted EBITDA2

$5.4M CAD

Pivot At A Glance

($ CAD Millions except otherwise noted)

2019 Adjusted EBITDA1,2

$35.6M CAD

Q1 2020 Revenue

$376.8 CAD

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SLIDE 4

Private and Confidential

Go-to-Market – More Than A VAR

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Product- Focused Outcome- Focused Supplier Operating Model

Complex Offer

Basic Offer Complex Offer Optimize Offer Outcome Offer

LEVEL 1 SUPPLIER LEVEL 2 SUPPLIER LEVEL 3 SUPPLIER LEVEL 4 SUPPLIER

Cap Ex Op Ex

Great Product Great Product Great Product Product-Attached Services Product-Attached Services Outcome Offers and Platforms Operate, Adopt, Optimize Managed Services Source: Tsia

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SLIDE 5

Private and Confidential

✓ Scale ✓ Sales force ✓ Experienced leadership team ✓ Vendor relationships ✓ Knowledge ✓ Access to customers ✓ Enterprise B2B eCommerce platform ✓ Global reach

Strengths Strategy

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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

Leveraging Our Strengths Through Strategy

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SLIDE 6

Private and Confidential

Solutions and Partners

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

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SLIDE 7

Private and Confidential

Service Channels Overview

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Integration

▪ Fulfillment & Management ▪ Depot & Disposition ▪ Imaging & Configuration ▪ Logistics & Coordination

Professional

▪ Consulting ▪ Assessment ▪ Implementation ▪ Resident ▪ Optimization

Deployment

▪ Onsite/Remote Install, Move, Add & Change ▪ Low Voltage/Fiber ▪ Maintenance & Break-Fix ▪ Smart Hands

Workforce

▪ Perm/Direct Hires ▪ Enterprise Contract Staffing ▪ Contract Staffing ▪ Executive Level Hires ▪ Remote Hires

Managed

▪ First Call Support ▪ Service Desk as a Service ▪ ITAM as a Service ▪ Digital Operations Center - NOC/SOC

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SLIDE 8

Private and Confidential

Key Industry Trends Growth Strategy

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Data Management Cloud Services Edge Solutions & Services Security

Build Partner De-Prioritize Buy

Low High High

Strategic Priority Urgency

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SLIDE 9

Private and Confidential

2019 Performance

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Continued gross margin strength, EBITDA growth on lower revenue

1. Non-GAAP measure

($ CAD Millions)

1,205 1,232 1,297 758 533 308 FY 17 FY 18 FY 19

Revenue

Non-Major Majors

219.1 211.4 217.7

FY 17 FY 18 FY 19

Gross Profit

31.3 20.1 35.6 3.1 6.6 2.9 FY 17 FY 18 FY 19

Adjusted EBITDA1

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

Gross Profit Margin %

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SLIDE 10

Private and Confidential

Q1 2020 Performance

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Gross margin improved, EBITDA growth on lower revenue

48.7 52.1

Q1 F19 Q1 F20

Gross Profit

12.5 13.8

Q1 F19 Q1 F20

Gross Profit Margin %

1. Non GAAP measure

($ CAD Millions) 315 345 75 32

Q1 F19 Q1 F20

Revenue

Non-Major Majors 9.7%

4.4 5.4 0.4 Q1 F19 Q1 F20

Adjusted EBITDA1

Net Smart Edge spend Adjusted EBITDA

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SLIDE 11

Private and Confidential

Liquidity & Valuation

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

  • f the changes in working capital. It is calculated as current

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

Adjusted Debt1

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

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SLIDE 12

Private and Confidential

Stock Overview

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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

  • Share Buy-

back Program:

  • Ongoing NCIB, purchase history:
  • 960,600 shares in 2018
  • 237,310 shares in 2019
  • 824,115 shares in 2020 (to March 27)

From Jan 2017, PTG Total Return is 34.2%

  • vs. S&P/TSX Composite of 14.1%

1 definition in MD&A

  • Since May 2016, PTG dividend:
  • $0.04 paid quarterly
  • $0.16 per share per annum
  • Yield: 9.5% (at June 18, 2020)
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SLIDE 13

Questions

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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