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1 Corporate Overview Q3 FY 18 Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20
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Page 1: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

1

Corporate OverviewQ3 FY 18

Enghouse - Corporate PresentationQ4 FY 19

Enghouse - Corporate PresentationQ3 FY20

Page 2: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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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.

Page 3: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Two-pronged growth strategy focused on internal growth and

acquisitions

The Company is organized around two business segments delivering

solutions for remote work, visual computing and communications for

next generation software defined networks:

➢ Interactive Management Group (“IMG”)

▪ Customer interaction solutions (including video collaboration)

➢ Asset Management Group (“AMG”)

▪ Networks Group provides technology solutions to communications and media,

utilities and defense organizations

▪ Transportation & Public Safety Group provides software solutions for transit,

supply chain and public safety

Completing selective acquisitions within existing markets and entering

new strategic software markets on an opportunistic basis

Strategy

Page 4: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Enghouse Interactive

Profitable growthRevenue~1,800 employees

HQ in Canada, offices in

25+ countries

Snapshot

Enghouse Networks Enghouse Transportation

& Public Safety

Dual Growth Revenue (organic & acquisitions)

Toronto Stock Exchange

TSX:ENGH

Page 5: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Interactive Portfolio

SELF-SERVICE

AI Powered Multi-channel Self-service

Mobile Self-service Platform

Knowledge Management

QUALITY MANAGEMENT

Call Billing and Reporting

Interaction Recording and Analysis

Survey Management

Workforce Management

AI Powered Business Insights

TELEPHONY, VIDEO & CRM

INTEGRATION

CRM Integration

Telephony Application Enablement

Video Application Enablement

VoiceXML Application Test

OMNI-CHANNEL

CONTACT CENTER

Mid-market Contact Center

Enterprise Contact Center

Cloud Contact Center

AI Powered Social Media

Video Enabled Contact Center

CALL RECEPTION/CALL

HANDLING

Mid-market Attendant Console

Enterprise Attendant Console

Cloud Attendant Console

Directory Integration

VIDEO INTERACTION

Healthcare

Financial Institutions

Enterprise Video Collaboration

Solutions that transform customer engagement

Page 6: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Managing, monetizing & protecting networks in digital transformation

Networks Portfolio

NETWORK OPERATIONS

Network Inventory, Planning &

Resource Management OSS

Performance Management

Fiber Planning & Design

Service Assurance

NETWORK VISUALIZATION

e.AI

Geographic Information Systems

Network Operations Centre

Network Correlation

Coverage Portals

Customer Care

NETWORK MONETIZATION

MVNO Billing Solutions

IoT Monetization & Billing

Wholesale Revenue Management

REVENUE GENERATION

Cloud IPTV

Video Solutions

Mobile VAS Consolidation

Technology solutions enabling network & digital transformation for communications

and media, utilities and defense organizations

Page 7: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Transportation & Public Safety

PortfolioSoftware solutions for transit, supply chain and public safety companies

PUBLIC SAFETY

Emergency Control & Dispatch

(1st responders)

Non-Emergency Patient Transport

FLEET MANAGEMENT

Logistics Management

Order Tracking

Telematics

Container Tracking and Monitoring

TRANSIT OPERATIONS

Fixed Route & Demand Response

Scheduling & Dispatch

Driver Management

e-Ticketing

Automated Fare Collection

COMMUNICATIONS

Fixed Route

Demand Response

Operator & Fare IVR

PRIVATE TRANSPORTATION

Coach and Tour Operations Management

Page 8: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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ANNUAL RESULTS

Page 9: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Fiscal Year Results (ending Oct 31)

Note¹: Compounded annual growth rate FY15 - FY19

FY 15 FY 16 FY 17 FY 18 FY 19

$0.22

$0.26

$0.30

$0.34

$0.40 DIVIDEND PER SHARE (based on date of record)

FY 15 FY 16 FY 17 FY 18 FY 19

$279m

$308m

$343m

TOTAL REVENUE

$325m

$386m

FY 15 FY 16 FY 17 FY 18 FY 19

$1.30$1.44

$1.73

$1.94

$2.10

ADJUSTED EBITDA

PER SHARE

FY 15 FY 16 FY 17 FY 18 FY 19

$220m

$142m

$166m$178m

$191m

57%51% 54% 56%

HOSTED & MAINTENANCE

55%

Page 10: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Q3 FY20 & YTD

Page 11: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Q3 FY20

Q3 FY20 Q3 FY19%

Change

Q3 FY20

YTD

Q3 FY19

YTD

%

Change

Revenue $131.3m $101.3m 29.7% $382.9m $276.5m 38.5%

Revenue - Interactive Management

Group$75.2m $56.9m 32.1% $227.9m $144.9m 57.4%

Revenue - Asset Management Group $56.2m $44.4m 26.5% $154.9m $131.7m 17.7%

Hosted and Maintenance revenue $77.4m $58.4m 32.4% $213.7m $158.7m 34.7%

Adjusted EBITDA¹ $45.6m $28.1m 62.4% $130.2m $81.6m 59.6%

Adjusted EBITDA¹ per diluted share $0.81 $0.51 58.8% $2.35 $1.48 58.8%

Dividend - per common share, based on date of

record $0.135 $0.110 22.7% $0.355 $0.290 22.4%

Cash (received)/spent on acquisitions - net of

cash acquired & holdbacksnil $68.7m (106.3%) $43.9m $93.1m (53.9%)

Cash & Investments balance - end of period $228.9m $141.3m 62.0% $228.9m $141.3m 62.0%

Operating cash flow - before working capital

adjustments$45.3m $28.5m 58.8% $130.5m $84.7m 54.2%

Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PE and ROU assets and special charges for acquisition

related restructuring costs.

Page 12: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Quarterly Results

$0

$20

$40

$60

$80

$100

$120

$140

$160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 17 FY 18 FY 19 FY 20

REVENUE$ millions

$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 17 FY 18 FY 19 FY 20

HOSTED & MAINTENANCE REVENUE$ millions

$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 17 FY 18 FY 19 FY 20

ADJUSTED EBITDA PER SHARE

$0.00

$0.02

$0.04

$0.06

$0.08

$0.10

$0.12

$0.14

$0.16

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 17 FY 18 FY 19 FY 20

DIVIDEND PER SHARE(based on date of record)

Page 13: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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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

Page 14: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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Recent Acquisitions

DIALOGIC

Q1 FY 20

USA

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

EPTICA

Q4 FY 19

FRANCE

Page 15: Enghouse - Corporate Presentation Corporate Overview...2020/09/11  · Enghouse - Corporate Presentation Q4 FY 19 Enghouse - Corporate Presentation Q3 FY20 2 Forward-Looking Statements

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THANK YOU!


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