Corporate Overview Enghouse - Corporate Presentation Q3 FY 18 Q3 - - PowerPoint PPT Presentation

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Corporate Overview

Q3 FY 18

Enghouse - Corporate Presentation

Q3 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 ~1,600 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

SELF SELF-SERVICE

AI Powered Multi-channel Self-service Mobile Self-service Platform Knowledge Management Suite

QU QUALITY Y MAN ANAGEMENT

Call Billing and Reporting Interaction Recording and Analysis Survey Management Workforce Management AI Powered Business Insights

TEL ELEP EPHONY, VI VIDE DEO & CRM RM INTEGRATION

CRM Integration Telephony Application Enablement Video Application Enablement VoiceXML Application Test

OMNI-CHANNEL CONTACT CEN ENTER ER

Mid-market Contact Center Enterprise Contact Center Cloud Contact Center AI Powered Social Media Video Enabled Contact Center

CAL ALL RE RECEPTION/CALL HAN ANDLING

Mid-market Attendant Console Enterprise Attendant Console Cloud Attendant Console Directory Integration

VI VIDEO INTER ERACTION

Healthcare Financial Institutions Enterprise Video Collaboration

Solutions that transform customer engagement

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Networks Portfolio

Technology solutions to optimize performance for next generation network operators

BUSINESS SU SUPPORT SYSTEMS

MVNO Solutions Wholesale Revenue Management Order to Cash Telecom Optimization Management

OP OPER ERATIONS SUP SUPPORT SYSTEMS

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

GEOGRAPHIC INFORM RMATION SYSTEMS

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

MOBILE E VAS AS CLOUD

VAS Consolidation Messaging Call Completion

NET ETWORK SE SECURITY, ROUTING & CONTROL

Network Firewalls Diameter Signaling Controller Public Safety

MEDI EDIA & CONTENT

TVaaS Video Solutions Analytics Smart TV Browser

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Transportation Portfolio

Software solutions for Public Safety, Transit and Supply Chain

PUBL BLIC SAFE AFETY

Emergency Control & Dispatch (1st responders) Non-Emergency Patient Transport

FLEE FLEET & TRA RANSPORTATION MAN ANAGEMEN ENT

Logistics Management Order Tracking Telematics Container Tracking & Monitoring

TRA RANSIT OPER ERATIONS

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

COMMUNICATIONS

Fixed Route Paratransit Operator & Fare IVR

PRIV RIVATE TRA RANSP SPORTATION

Coach & Tour Operations Management

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ANNUAL RESULTS

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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)

FY 14 FY 15 FY 16 FY 17 FY 18

$1.02 $1.30 $1.44 $1.73 $1.94

ADJUSTED EBITDA PER SHARE

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%

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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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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.

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Q3 & YTD FY 19 (9 MONTHS)

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Q3 & YTD FY 19 (9 months)

Q3 FY19 Q3 FY18

% Change

YTD FY19 YTD FY18

% Change

Revenue $101.3m $86.7 m

16.8%

$276.5m $257.0 m

7.6%

Revenue - Interactive Management Group $56.9m $47.5m

19.6%

$144.9m $143.5m

1.0%

Revenue - Asset Management Group $44.4m $39.2m

13.3%

$131.7m $113.5m

16.0%

Hosted and Maintenance revenue $58.4m $48.6m

20.2%

$158.7m $142.6m

11.3%

Adjusted EBITDA¹ per diluted share $0.51 $0.50

2.0%

$1.48 $1.43

3.5%

Adjusted EBITDA¹ $28.1m $27.4m

2.3%

$81.6m $78.1m

4.4%

Dividend - per common share, based on date of

record

$0.11 $0.09

22.2%

$0.29 $0.25

16.0%

Cash spent on acquisitions - net of cash acquired

& holdbacks

$68.7m $1.9m $95.3m $16.6m Cash & Investments balance - end of period $141.3m $178.4m

• 20.8%

$141.3m $178.4m

• 20.8%

Cash flow from operations $13.9m $29.3m

• 52.6%

$59.6m $74.2m

• 19.6%

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

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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!