Enghouse - Corporate Presentation Q4 FY 19 Corporate Overview Enghouse - Corporate Presentation Q3 FY 18 Q4 FY 19 1
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 These risk factors are identified in Enghouse’s Annual Information Form and other expectations. 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. 2
Strategy 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 3
Snapshot HQ in Canada, offices in Toronto Stock Exchange Dual Growth Revenue 25+ countries (organic & acquisitions) TSX:ENGH Enghouse Interactive Enghouse Networks Enghouse Transportation Contact center software Telecom software Transportation software ~1,600 employees Revenue Profitable growth 4
Interactive Portfolio Solutions that transform customer engagement OMNI-CHANNEL CALL RECEPTION/CALL HAN HANDLING VIDEO INT NTERACTION CONTACT CEN ENTER Mid-market Attendant Console Healthcare Enterprise Attendant Console Financial Institutions Mid-market Contact Center Cloud Attendant Console Enterprise Video Collaboration Enterprise Contact Center Cloud Contact Center Directory Integration AI Powered Social Media Video Enabled Contact Center SEL ELF-SE SERVICE QUALITY MANAGEMENT TEL ELEPHONY, VIDEO & & CRM RM INTE NTEGRATION AI Powered Multi-channel Self-service Call Billing and Reporting Mobile Self-service Platform Interaction Recording and Analysis CRM Integration Knowledge Management Survey Management Telephony Application Enablement Video Application Enablement Workforce Management AI Powered Business Insights VoiceXML Application Test 5
Networks Portfolio Technology solutions enabling network & digital transformation for 5G operators NE NETWORK OPE PERA RATIONS NE NETWORK VISU SUALIZATION Network Inventory, Planning & Resource e.AI Management OSS Geographic Information Systems Performance Management Network Operations Centre Fiber Planning & Design Network Correlation Service Assurance Coverage Portals Customer Care NETWORK MONETIZATION NE REVENUE GEN ENERATION MVNO Billing Solutions Cloud IPTV IoT Monetization & Billing Video Solutions Wholesale Revenue Management Mobile VAS Consolidation Managing, monetizing & protecting networks in digital transformation 6
Transportation Portfolio Software solutions for Transit, Public Safety, and Supply Chain TRA RANSIT OPE PERA RATIONS COMMUNICATIONS PRIVATE TRA PR RANSPORTATION Fixed Route & Demand Response Fixed Route Coach and Tour Operations Management Scheduling & Dispatch Demand Response Driver Management Operator & Fare IVR e-Ticketing Automated Fare Collection PU PUBLIC SAFETY FLEET MANAGEMENT Emergency Control & Dispatch Logistics Management (1st responders) Order Tracking Non-Emergency Patient Transport Telematics Container Tracking and Monitoring 7
A NNUAL R ESULTS 8
Fiscal Year Results (ending Oct 31) TOTAL REVENUE HOSTED & MAINTENANCE $386m $343m $220m $325m $191m $308m $178m $279m $166m $142m 57% 56% 55% 51% 54% FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 ADJUSTED EBITDA DIVIDEND PER SHARE $0.40 ( based on date of record) PER SHARE $0.34 $2.10 $1.94 $0.30 $1.73 $0.26 $1.44 $0.22 $1.30 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Note¹: Compounded annual growth rate FY15 - FY19 9
Revenue Split - FY19 REVENUE BREAKDOWN REVENUE BY GEOGRAPHY Hardware 4% License Services 23% SCANDINAVIA US 16% 22% 34% OTHER 5% Hosted & Maintenance EUROPE UK 57% 19% 16% CANADA 4% REVENUE BY BUSINESS GROUP Asset Interactive Management Management Group Group $205m or 53% $181m or 47% 10 Note: % rounding applied to charts and tables throughout this corporate presentation
Annual Results % FY 19 FY 18 Change Revenue $385.9m $342.8m 12.5% Revenue - Interactive Management Group $204.9m $189.3m 8.2% Revenue - Asset Management Group $181.0m $153.6m 17.8% Hosted and Maintenance revenue $219.6m $191.1m 14.9% Adjusted EBITDA¹ per diluted share $2.10 $1.94 8.3% Adjusted EBITDA¹ $115.6m $106.0m 9.0% Dividend - per common share, based on date of record $0.40 $0.34 17.7% Cash spent on acquisitions - net of cash acquired & holdbacks $102.3m $16.8m 508.9% Cash & Investments balance - end of period $150.3m $193.9m -22.5% Cash flow - before working capital adjustments $118.5m $108.3m 9.5% Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PE and special charges for acquisition related restructuring costs. 11
Q4 & FY19 12
Q4 & FY19 % % Q4 FY19 Q4 FY18 FY19 FY18 Change Change Revenue $109.3m $85.8m $385.9m $342.8m 27.4% 12.5% Revenue - Interactive Management Group $60.0m $45.8m $204.9m $189.3m 31.0% 8.2% Revenue - Asset Management Group $49.3m $40.0m $181.0m $153.6m 23.3% 17.8% Hosted and Maintenance revenue $60.9m $48.5m $219.6m $191.1m 25.7% 14.9% Adjusted EBITDA¹ per diluted share $0.62 $0.51 $2.10 $1.94 21.6% 8.3% Adjusted EBITDA¹ $34.0m $27.9m $115.6m $106.0m 21.8% 9.0% Dividend - per common share, based on date of $0.11 $0.09 $0.40 $0.34 22.2% 17.7% record Cash spent on acquisitions - net of cash acquired $7.0m $0.2m $102.3m $16.8m 3,539% 508.9% & holdbacks Cash & Investments balance - end of period $150.3m $193.9m $150.3m $193.9m -22.5% -22.5% Cash flow - before working capital adjustments $33.9m $29.5m $118.5m $108.3m 14.7% 9.5% Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PE and special charges for acquisition related restructuring costs. 13
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 14
Recent Acquisitions MOBILETHINK EPTICA CAPANA VIDYO Q2 FY 18 Q4 FY 19 Q1 FY 19 Q3 FY 19 TELEXIS PROOPTI ESPIAL Q1 FY 19 Q2 FY 19 Q3 FY 19 DENMARK FRANCE SWEDEN USA NETHERLANDS SWEDEN CANADA 15
T HANK Y OU ! 16
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