Corporate Overview Corporate Overview Q3 FY 18 Q2 FY 19 1 - - PowerPoint PPT Presentation

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Corporate Overview

Q3 FY 18

Corporate Overview

Q2 FY 19

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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 expectations. These risk factors are identified in Enghouse’s Annual Information Form and other 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.

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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

Strategy

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Enghouse Interactive Contact center software Profitable growth Revenue ~1,500 employees HQ in Canada, offices in 20+ countries

Snapshot

Enghouse Networks Telecom software Enghouse Transportation Transportation software Dual Growth Revenue

(organic & acquisitions)

Toronto Stock Exchange TSX:ENGH

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Interactive Portfolio

MULTI-CHANNEL CONTACT CENTER

Contact Center Enterprise · Contact Center Service Provider · Communications Center with Skype for Business · Contact Center OnDemand · Outbound Communication Suite · Contact Center for Market Research · AI Powered Social Media Interaction · Video Enabled Contact Center

CALL RECEPTION/CALL HANDLING

Intuition Attendant Console (Avaya/Genband) · Arc Pro Attendant Console for CISCO · Operator Console for Microsoft Skype for Business · ANDTEK Console

SELF-SERVICE

Communication Portal · Mobile IVR Navigator · Knowledge Management Suite · AI Powered Chatbot Platform

QUALITY MANAGEMENT

Call Billing and Reporting (Enterprise & Cloud) · Survey Management · Quality Management Suite · Workforce Management · AI Powered Business Insights

TELEPHONY, VIDEO & CRM INTEGRATION

Video Application Enablement · CTI Connect · CTI for CRM · VoiceXML Test Suite · Applications for Avaya CS1000

VIDEO INTERACTION

Healthcare · Financial Institutions · Enterprise Video Collaboration

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Networks Portfolio

Technology solutions to optimize performance for next generation network operators

MEDIA & CONTENT

TVaaS · Video Solutions · Analytics · Smart TV Browser

NETWORK SECURITY, ROUTING & CONTROL

Network Firewalls · Diameter Signalling Controller · Public Safety

OPERATIONS SUPPORT SYSTEMS

e-AI · Network Inventory, Planning & Resource Management · Service Assurance · Network Testing

MOBILE VAS CLOUD

VAS Consolidation · Messaging · Call Completion

BUSINESS SUPPORT SYSTEMS

MVNO Solutions · Wholesale Revenue Management · Order to Cash · Telecom Optimization Management

GEOGRAPHIC INFORMATION SYSTEMS

Fiber Planning & Design · Coverage Portals · Network Operations Centre · Customer Care · Mobile Alert Messaging

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Transportation Portfolio

Software solutions for Public Safety, Transit and Supply Chain

TRANSIT OPERATIONS

Fixed Route & Paratransit Scheduling · Dispatch · Workflow & Driver Management · e-Ticketing · Automated Fare Collection

COMMUNICATIONS

Fixed Route · Paratransit · Operator & Fare IVR

PRIVATE TRANSPORTATION

Coach and Tour Operations Management

PUBLIC SAFETY

Emergency Control Center & Dispatch (Police, Fire, Ambulance) · Non-Emergency Patient Transport

FLEET & TRANSPORTATION MANAGEMENT

Logistics Management · Order Tracking · Telematics · Container and Vehicle Tracking and Monitoring

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ANNUAL RESULTS

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Fiscal Year Results (ending Oct 31)

Note¹: Compounded annual growth rate FY14 - FY18

FY 14 FY 15 FY 16 FY 17 FY 18

$220m $279m $325m

TOTAL REVENUE

$308m $343m

FY 14 FY 15 FY 16 FY 17 FY 18

$176m $115m $136m $152m $166m 51% 52% 49% 51%

HOSTED & MAINTENANCE REVENUE

49%

FY 14 FY 15 FY 16 FY 17 FY 18

$1.02 $1.30 $1.44 $1.73 $1.94

ADJUSTED EBITDA PER SHARE

FY 14 FY 15 FY 16 FY 17 FY 18

$0.18 $0.22 $0.26 $0.30 $0.34

DIVIDEND PER SHARE (based on date of record)

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Revenue Split - FY 18

Note: % rounding applied to charts and tables throughout this corporate presentation

License 30% Hosted & Maintenance 51% Services 17% Hardware 2%

REVENUE BREAKDOWN

Interactive Management Group $189m or 55% Asset Management Group $154m or 45%

REVENUE BY BUSINESS GROUP

US 30% UK 19% EUROPE 18% CANADA 3% APAC/Others 6% SCANDINAVIA 24%

REVENUE BY GEOGRAPHY

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FY 18

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FY 18

FY 18 FY 17

% Change

Revenue $342.8m $325.4m

5.4%

Revenue by Segment Interactive Management Group $189.3m $190.7m

• 0.7%

Asset Management Group $153.6m $134.7m

14.0%

Hosted & 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%

Annual dividend - per common share, based on date of record $0.34 $0.30

13.3%

Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition related restructuring costs.

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FY 18

FY 18 FY 17

% change

Cash spent on dividend $18.4m $16.2m

13.6%

Cash spent on acquisitions - net of cash acquired & holdbacks $16.8m $21.3m

• 21.1%

Cash & Investments balance - beginning of period $130.3m $85.9m

51.7%

Cash & Investments balance - end of period $193.9m $130.3m

48.8%

Cash flow from operations $98.3m $83.2m

18.1%

Acquisitions Tollgrade Q2 Survox Q4 XConnect Q1 SimaTech Q1 Mobilethink Q2

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Q2 YTD FY 19 (6 MONTHS)

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Q2 YTD FY 19(6 months)

YTD FY 19 YTD FY 18

% Change

Revenue $175.2m $170.3 m

2.9%

Revenue by Segment Interactive Management Group $88.0m $95.9m

• 8.3%

Asset Management Group $87.3m $74.3m

17.4%

Hosted and Maintenance revenue $100.3m $94.0m

6.6%

Adjusted EBITDA¹ per diluted share $0.97 $0.93

4.3%

Adjusted EBITDA¹ $53.5m $50.7m

5.6%

Quarterly dividend - per common share, based on date of record $0.18 $0.16

12.5%

Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition related restructuring costs.

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Q2 YTD FY 19 (6 months)

YTD FY 19 YTD FY 18

% Change

Cash spent on dividend $9.8m $8.6m

14.0%

Cash spent on acquisitions -

net of cash acquired & holdbacks

$26.7m $14.8m

80%

Cash & Investments balance - beginning of period $193.9m $130.3m Cash & Investments balance - end of period $205.5m $155.3m Cash flow from operations $45.8m $44.9m

1.9%

Acquisitions Xconnect Q1 Simatech Q1 MobileThink Q2 Capana Q1 Telexis Q1 ProOpti Q2

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Q2 FY 19 (3 MONTHS)

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Q2 FY 19 (3 months)

Q2 FY 19 Q2 FY 18

% Change

Revenue $89.2m $85.2 m

4.7%

Revenue by Segment Interactive Management Group $44.5m $47.6m

• 6.4%

Asset Management Group $44.7m $37.7m

18.7%

Hosted and Maintenance revenue $49.5m $47.7m

3.6%

Adjusted EBITDA¹ per diluted share $0.49 $0.46

6.5%

Adjusted EBITDA¹ $27.2m $25.3m

7.0%

Quarterly dividend - per common share, based on date of record $0.09 $0.08

12.5%

Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition related restructuring costs.

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Q2 FY 19 (3 months)

Q2 FY 19 Q2 FY 18

% Change

Cash spent on dividend $4.9m $4.3m

14.0%

Cash spent on acquisitions - net of cash acquired & holdbacks $3.2m $9.8m

• 67.8%

Cash & Investments balance - beginning of period $190.5m $145.0m Cash & Investments balance - end of period $205.5m $155.3m Cash flow from operations $21.6m $21.8m

• 1.0%

Acquisitions MobileThink Q2 ProOpti Q2

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Quarterly Results

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 16 FY 17 FY 18 FY 19

REVENUE

$ millions $0 $10 $20 $30 $40 $50 $60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 16 FY 17 FY 18 FY 19

HOSTED & MAINTENANCE REVENUE

$ millions $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 16 FY 17 FY 18 FY 19

ADJUSTED EBITDA PER SHARE

$0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 16 FY 17 FY 18 FY 19

DIVIDEND PER SHARE

(based on date of record)

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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

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Recent Acquisitions

SIMATECH Q1 FY 18 DENMARK

MOBILETHINK

Q2 FY 18 DENMARK CAPANA Q1 FY 19 SWEDEN TELEXIS Q1 FY 19

NETHERLANDS

PROOPTI Q2 FY 19 SWEDEN ESPIAL Q3 FY 19 CANADA VIDYO Q3 FY 19 USA

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THANK YOU!