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
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
Enghouse Interactive Contact center software
Consistently profitable Revenue 1350+ employees HQ in Canada + 27 countries
Snapshot
Enghouse Networks Telecom software Enghouse Transportation Transportation software Dual Growth – organic &acquisitions Toronto Stock Exchange
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
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
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
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
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
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
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
Fiscal Year Results
(ending Oct 31)
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 $0.44Revenue Split - FY 15
Interactive Management Group $188m or 67% Asset Management Group $91m or 33%FY 15 Results
FY 15
FY 14
% ChangeRevenue
$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%R & D expense as a % revenue
(excl. hardwarerevenue)
15.0%
17.7%
-2.7%Adjusted EBITDA¹ per diluted share
$2.69
$2.09
29%Adjusted EBITDA¹
$71.9m
$56.0m
28%Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition related
FY 15 Results
FY 15
FY 14
Quarterly dividend -
per common share, based on date ofrecord
$0.44
$0.36
Cash spent on dividend
$11.5m
$9.4m
Cash spent on acquisitions (net of cash acquired)
$30.0m
$45.0m
Cash & Investments balance - beginning of period
$84.9m
$90.3m
Cash & Investments balance - end of period
$98.4m
$84.9m
Q4 FY 15
Q4 FY 15
Q4 FY 14
%ChangeRevenue
$76.3m
$62.1m
23%Revenue by Segment
Interactive Management Group
$51.5m
$42.6m
21%Asset Management Group
$24.8m
$19.5m
27%License revenue
$23.8m
$19.1m
24%Recurring revenue
$36.1m
$32.2m
12%R & D expense as a % revenue
(excl. hardwarerevenue)
14.2%
17.8%
-3.6%Adjusted EBITDA¹ per diluted share
$0.78
$0.58
34%Adjusted EBITDA¹
$21.0m
$15.6m
35%Note 1: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition
Q4 FY 15
Q4 FY 15
Q4 FY 14
Quarterly dividend -
per common share, based on date of record$0.12
$0.10
Cash spent on dividend
$3.2m
$2.6m
Cash spent on acquisitions (net of cash acquired)
$2.7m
$23.5m
Cash & Investments balance - beginning of period
$91.3m
$105.0m
Cash & Investments balance - end of period
$98.4m
$84.9m
Acquisitions
Jinny
Aug 5
thVoxtron
Oct 3
rdQuarterly 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 12 FY 13 FY 14 FY 15 REVENUE $ millions $0 $5 $10 $15 $20 $25 $30 $35 $40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 12 FY 13 FY 14 FY 15 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 12 FY 13 FY 14 FY 15 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 12 FY 13 FY 14 FY 15DIVIDEND PER SHARE
