Corporate Overview Q2 FY 16 Forward-Looking Statements Disclaimer - - PowerPoint PPT Presentation

Q2 FY 16

Corporate Overview

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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 Consistently profitable Revenue ~1500 employees HQ in Canada + 27 countries

Snapshot

Enghouse Networks Telecom software Enghouse Transportation Transportation software Dual Growth – organic & acquisitions Toronto Stock Exchange TSX:ESL

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Interactive - Sector Dynamics

Contact Center is at the front line of customer interaction, driving technology upgrades on premise and in the cloud IP migration, multi media routing and email driving technology refresh Mobile computing/workforce driving significant multi-channel requirements Trend to in-sourcing contact centers due to increasing costs overseas and political/nationalistic pressures Traditional PBX market becoming increasingly commoditized, adoption of SaaS delivery model Microsoft’s entry in the IP PBX could be a disruptive force (Skype for Business)

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Consoles

• 10-50 seats
• Channel GTM and OEM
• On-premises

Mid-Market

• 10-500 seats
• Channel GTM
• On-premises or hosted private cloud

Enterprise

• 50-1000’s of seats
• Direct/Channel GTM
• On-premises, private cloud, or hybrid

Cloud

• True multi-tenant cloud solution
• GTM through carriers and service providers
• Public, community, or private cloud

Interactive Portfolio

Leading customer interaction solutions, in the cloud, hosted or on- premise to address specific market requirements

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Interactive Portfolio

Leading solutions to maximize the value of customer interaction

MULTI-CHANNEL CONTACT CENTER

Contact Center Enterprise · Contact Center Service Provider · Communication Center w/Skype for Business · Contact Center OnDemand · Outbound Dialer

ATTENDANT/OPERATOR CONSOLE

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

SELF-SERVICE

Communication Portal · Knowledge Management Suite

QUALITY MANAGEMENT

Call Billing and Reporting Enterprise & Cloud · Call & Computer Recording · Agent Evaluation · Quality Management Suite · Workforce Management System

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Networks - Sector Dynamics

Industry growth fueled by wireless subscriber growth and demand for smartphones, tablet devices and OTT applications Continuing transition to next-generation network technologies and new service offerings while also dealing with customer services and retention Big data and analytics technologies being deployed to tailor value-added services based on subscriber usage and behavior Adoption of cloud and network virtualization will continue to gain momentum Highly fragmented, open for more industry consolidation among 400+ vendors BSS/OSS market was valued at $17B in 2011 and is expected to grow to $48.5B in 2018, a CAGR of 16% from 2012-2018 (Source – Transparency

market Research)

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MOBILE VALUE ADDED SERVICES

VAS Consolidation · Messaging · Call Completion · Rich Media · Ring Back Tones · Networks & Subscriber Protection Network Inventory · Configuration Management · Geographic Information Systems

OPERATION SUPPORT SYSTEMS BUSINESS SUPPORT SYSTEMS

Hosted Billing · Wholesale Revenue Management · Mobile Virtual Network Operators · Intelligent Routing · Fraud Management

Networks Portfolio

Technology solutions to optimize performance for next generation network operators

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Transportation - Sector Dynamics

Fragmented and competitive market. New technologies driving growth in systems and tangible cost benefits / savings Evolving tablet and smart phone technologies replacing traditional Mobile Data Terminals (MDT’s). LTE networks to provide interoperability across geographies Cloud computing gaining momentum and driving replacement of legacy technology systems in a space traditionally slow to adopt Economic uncertainty and rising fuel costs driving increased ridership in both public and private sectors International political focus on terrorism and natural disasters driving continued investment in transportation and public safety systems

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Transportation Portfolio

TRANSIT OPERATIONS

Fixed Route & Para-transit Scheduling · Dispatch · Workflow /Driver Management

COMMUNICATIONS

Fixed Route & Para-transit IVR · Web Based Trip Planning

PRIVATE TRANSPORTATION

Coach and Tour Operations Management

Software based transportation and workforce management solutions for the public, private and public safety sectors

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 : CAGR – Compound annual growth rate

FY11 FY 12 FY 13 FY 14 FY 15

$123m $136m $220m

TOTAL REVENUE

$180m $279m

FY11 FY 12 FY 13 FY 14 FY 15

$136m $59m $72m $92m $115m 49% 48% 52% 52%

RECURRING REVENUE

51%

FY 11 FY 12 FY 13 FY 14 FY 15

$1.26 $1.35 $1.69 $2.09 $2.69

ADJUSTED EBITDA PER SHARE

FY 11 FY 12 FY 13 FY 14 FY 15

$0.18 $0.23 $0.29 $0.36 $0.44

DIVIDEND PER SHARE

(based on date of record)

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Revenue Split - FY 15

Interactive Management Group $188m or 67% Asset Management Group $91m or 33%

REVENUE BY BUSINESS GROUP

License 31% Hosted/Maintenance 49% Services 18% Hardware 2%

REVENUE BREAKDOWN

US 29% UK 18% EUROPE 17% CANADA 3% APAC 7% SCANDINAVIA 26%

REVENUE BY GEOGRAPHY

% rounding applied to charts and tables in the corporate presentation

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FY 15 RESULTS

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FY 15 Results

FY 15 FY 14

% Change

Revenue $279.3m $220.0m

27%

Revenue by Segment Interactive Management Group $188.2m $168.9m

11%

Asset Management Group $91.1m $51.1m

78%

License revenue $86.3m $71.9m

20%

Recurring revenue $135.8m $115.0m

18%

Adjusted EBITDA¹ per diluted share $2.69 $2.09

29%

Adjusted EBITDA¹ $71.9m $56.0m

28%

Quarterly dividend - per common share, based on

date of record

$0.44 $0.36

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 15 Results

FY 15 FY 14

Cash spent on dividend $11.5m $9.4m Cash spent on acquisitions

(net

• f

cash acquired & holdbacks)

$30.0m $45.0m Cash & Investments balance - beginning of period $84.9m $90.3m Cash & Investments balance - end of period $98.4m $84.9m Acquisitions IAT Nov IT Sonix March Basset July Jinny Aug Voxtron Oct CDRator March Reitek May Aktavara Sept

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Q2 FY 16

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Q2 FY 16

Q2 FY 16 Q2 FY 15

%Change

Revenue $78.5m $68.7m

14%

Revenue by Segment Interactive Management Group $48.7m $44.9m

8%

Asset Management Group $29.8m $23.8m

25%

License revenue $24.4m $21.1m

16%

Recurring revenue $38.3m $33.7m

14%

Adjusted EBITDA¹ per diluted share

$0.71 $0.60

18%

Adjusted EBITDA¹ $19.3m $16.2m

19%

Quarterly dividend - per common share, based on

date of record

$0.12 $0.10

Note 1: 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 16

Q2 FY 16 Q2 FY 15

Cash spent on dividend $3.2m $2.6m Cash spent on acquisitions (net of cash acquired & holdbacks) $6.1m $20.0m Cash & Investments balance - beginning of period $80.0m $101.8m Cash & Investments balance - end of period $85.1m $88.5m Acquisitions CDRator March CellVision March

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Quarterly Results

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 13 FY 14 FY 15 FY 16

REVENUE

$ millions $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 13 FY 14 FY 15 FY 16

RECURRING REVENUE

$ millions $0 $5 $10 $15 $20 $25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 13 FY 14 FY 15 FY 16

ADJUSTED EBITDA

$ millions $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 13 FY 14 FY 15 FY 16

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 payback within 5 - 6 years

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Recent Acquisitions

AKTAVARA Sept, 2015 Q4 FY 15 SWEDEN REITEK May, 2015 Q3 FY 15 ITALY CELLVISION March, 2016 Q2 FY 16 NORWAY VOXTRON Oct, 2014 Q4 FY 14 BELGIUM CDRATOR March, 2015 Q2 FY 15 DENMARK CTI Dec, 2015 Q1 FY 16 USA NETBOSS May, 2016 Q3 FY 16 USA

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THANK YOU!