Investor Presentation Q1 2021Propelling to New Heights
Safe Harbour
The statements in this presentation relating to matters that are not historical fact are forwardlooking statements that are based on management's beliefs and assumptions.
Such statements are not guarantees of future performance, and are subject to a number ofuncertainties, including but not limited to future economic conditions, the markets that Tecsys Inc.serves, the actions of competitors, major new technological trends and other factors beyond thecontrol of Tecsys Inc., which could cause actual results to differ materially from such statements.
All names, trademarks, products and services mentioned are registered or unregistered trademarksof their respective owners.
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Our Purpose: To empower good companies to be great.
Our Position: To clarify uncertainty in the supply chain.
Our Mission: To equip supply chain greatness.
Our Vision: That good companies have the space to thrive.
Our story is all about our customers
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Visionary provider of supply chain technologyfor the world’s most complex supply networks
9 Times“Visionary” in
Gartner’s WMS Magic Quadrant
Top 3in Gartner’s
2019 Healthcare Supply Chain
Top 25 “Masters”
37 Yearsof complex
supply network experience
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E-Commerce
Pointof Use
End-to-end Integrated Supply Chain Management Solutions
Financial Management 3RD Party Billing
ANALYTICS
Healthcare – Distribution – Retail – 3PL
CUSTOMERSPARTNERSSUPPLIERS ENTERPRISE SYSTEMS
TransportationWarehouseProcurement& Inventory
DemandPlanning
Collaboration
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Delivering end-to-end solutions with technology & services tailored to key industries
Solutions Built on Experience
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Complex Supply Networks Retail
Third Party Logistics Healthcare
Global Reach
1,000+ Customers
$109M Revenue*
60% USA 21% Canada 19% ROW
(primarily Europe)
$49MAnnual Recurring
Revenue**
534 Employees
7 * Last twelve months, July 31, 2020** At July 31, 2020
Extending our Reach in $10B US Health Systems Market – The ARR Opportunity
87%13%
Market Opportunity Current Share
ARR Opportunity:
$600m
83%
17%
Market Opportunity
ARR Opportunitywith Current Base:
$76m+300Target Health Systems
Health SystemsMarket Share
Base AccountPenetration
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B2B and B2C Marketplace Convergence
Businesses/trading partners expect the same
Extraordinary pressure on supply chain to deliver
Result: Supply Chain Management is at a crossroads and in need of answersOpportunity: Tecsys is well positioned to solve these challenges
Seismic shift happening in retail – amplified by COVID19
Consumers demand products faster
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Evolution of Annual Recurring Revenue (ARR*)
16%Q1 YTD 2021 ARR growth, annualized
2017 2018 2020
$26.5 $26.9
$49.3
*Refer to July 31, 2020 Management Discussion and Analysis “Key Performance Indicators”
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2019
$38.6
Amounts in July 31, 2020 constant CAD millions
$47.4
Q1 YTD 2021
Annual Recurring Revenue Net Retention Rate
111%LTM Q1 2021 Recurring Revenue Net Retention Rate
2018 2019 LTM Q1 2021
98%
111%
Net Retention = (Existing customer expansion less churn) divided by Beginning period ARR
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2020
106%106%
SaaS Bookings Growing Rapidly, and increasing as a Proportion of Total(License Equivalency Basis)
Amounts in CAD millions
2017 2019 2020
$5.9$6.7
$22.2
SaaS
License
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$8.9
2018
147%YoY growth
23%License bookings
77%SaaS bookings
SaaS and Professional Services Bookings Growth
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In $CAD Millions
$26.0$30.0
$37.4
$50.7
0
10
20
30
40
50
60
2017 2018 2019 2020
*Please refer to FY 2020 Annual Report MD&A for definition of Bookings and Backlog under Key Performance Indicators
FY20 PS Bookings* Growth: 36%
$0 $0.1
$1.5
$8.8
0
2
4
6
8
10
2017 2018 2019 2020
FY20 SaaS Bookings* Growth: 486%
Strong Bookings Resulting in Healthy Backlog Growth
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In $CAD Millions
$16.6 $15.9
$24.5
$35.0
0
5
10
15
20
25
30
35
40
2017 2018 2019 2020
PS Backlog
*Please refer to FY 2020 Annual Report MD&A for definition of Bookings and Backlog under Key Performance Indicators
FY20 PS Backlog* Growth: 43%
$0 $0.4
$15.1
$52.0
0
10
20
30
40
50
60
2017 2018 2019 2020
SaaS Backlog
FY20 SaaS Backlog* Growth: 244%
SaaS Bookings Fuel Recurring Revenue Growth
121%YoY SaaS Revenue Growth*
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Amounts in CAD millions
31%Q1 FY21 SaaS Revenue as a percentage of total Cloud, Maintenance and Subscription Revenue (up from 18% in Q1 FY20)
$0,0 $0,0
$0.9$1.4
$1.7$2.1
$2.5 $2.7
$3.8
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
11,0
12,0
13,0
Q1 FY19A Q2 FY19A Q3 FY19A Q4 FY19A Q1 FY20A Q2 FY20A Q3 FY20A Q4 FY20A Q1 FY21A
Quarterly SaaS Revenue Growth
Total SaaS Revenue Total Cloud, Maintenance and Susbscription Revenue
Strengthened portfolio with a strong retail capability to expand addressable market (OrderDynamics, Order Management Platform)
Expanded footprint in Europe (PCSYS A/S, now Tecsys A/S) Acquisitions integrated and contributing positively to growth
Key Acquisitions -Update
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Corporate Information
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Annual Recurring Revenue**
$49.3Mup 29% YoY
SaaS ARR Bookings*
$10.7Mup 435% YoY
Cloud, Maintenance and Subscription Revenue*
$43.5Mup 28% YoY
* Last twelve months, July 31, 2020** At July 31, 2020
Financial Highlights, in CAD 000 except EPS
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Q1, 2021 Q1, 2020 Δ YoY Q1, 2021 TTM Q1, 2020 TTM Δ YoY$ % $ % $ % $ % $ % $ %
Total Revenue $28,091 100.0% $24,250 100.0% $3,841 15.8% $108,696 100.0% $84,417 100.0% $24,279 28.8%Cloud, Maintenance and Subscription Revenue $12,253 43.6% $9,782 40.3% $2,471 25.3% $43,529 40.0% $34,073 40.4% $9,456 27.8%Cost of sales $14,601 52.0% $12,717 52.4% $1,884 14.8% $56,421 51.9% $43,027 51.0% $13,394 31.1%Gross margin $13,490 48.0% $11,533 47.6% $1,957 17.0% $52,275 48.1% $41,390 49.0% $10,885 26.3%
Sales & Marketing $4,997 17.8% $4,508 18.6% $489 10.8% $20,623 19.0% $18,278 21.7% $2,345 12.8%General and Administration $2,426 8.6% $2,384 9.8% $42 1.8% $9,863 9.1% $10,158 12.0% ($295) -2.9%Research and Development $4,099 14.6% $3,718 15.3% $381 10.2% $15,616 14.4% $13,731 16.3% $1,885 13.7%Restructuring costs $0 0.0% $420 1.7% ($420) 100.0% $0 0.0% $420 0.5% ($420) 100.0%Operating expenses $11,522 41.0% $11,030 45.5% $492 4.5% $46,102 42.4% $42,587 50.4% $3,515 8.3%
Profit (loss) from operations $1,968 7.0% $503 2.1% $1,465 291.3% $6,173 5.7% ($1,197) -1.4% $7,370 615.7%
Net income (loss) $1,235 4.4% ($267) -1.1% $1,502 562.5% $3,848 3.5% ($1,021) -1.2% $4,869 476.9%
Adjusted EBITDA $3,509 12.5% $1,995 8.2% $1,514 75.9% $11,785 10.8% $4,235 5.0% $7,550 178.3%
EPS Basic $0.09 ($0.02) $0.11 550.0% $0.29 ($0.08) $0.37 462.5%EPS Diluted $0.08 ($0.02) $0.10 500.0% $0.28 ($0.08) $0.36 450.0%
License Bookings $461 $393 $68 17.3% $4,786 $5,364 ($578) -10.8%
SaaS ARR Bookings $2,370 $380 $1,990 523.7% $10,748 $2,008 $8,740 435.3%
Annual Recurring Revenue $49,293 $38,348 $10,945 28.5%SaaS Backlog $57,030 $15,182 $41,848 275.6%Professional Services Backlog $38,060 $22,229 $15,831 71.2%
Refer to July 31, 2020 Management Discussion and Analysis “Key Performance Indicators”
Refer to July 31, 2020 Management Discussion and Analysis “Non-IFRS Performance Measure”
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Market Cap14.4M S/O
$400M
BrokerageCoverage
Corporate Overview
Symbol TCS Dividend per Year
24¢Insider Ownership
26%
Cormark Securities Echelon Partners Stifel/GMP LB Securities National Bank
Management Team
Peter BreretonPresident and CEO
Mark J. BentlerChief Financial Officer
Bill KingChief Revenue Officer
Peter initially led the company’s software development, product management, sales and marketing. In 1998, he was appointed CEO and was largely responsible for the company’s Initial Public Offering. He repositioned Tecsys in the supply chain execution industry, and leveraged the company’s strengths in technology and supply chain expertise to achieve significant growth and become a leader in its markets.
Mark joined Tecsys in 2018 as chief financial officer. Mark has more than 20 years of international experience and was previously Chief Financial Officer for Aptos Retail. In addition to playing a significant role in the formation and growth of the company, he led the successful transition of the business’ retail management enterprise solutions to a cloud-centric platform. Prior to his work at Aptos Retail, he served as Vice President, Finance for Epicor Retail.
Bill has led Tecsys’ go-to-market strategy and expansion since January 2019. Prior to joining Tecsys, he held executive sales leadership positions at Oracle in the North American Sales organization, most recently as vice president of key accounts and previously as group vice president of North America Storage Sales. Prior to Oracle, Bill was with Fujitsu for over a decade and held a variety of executive management positions.
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Questions & Answers Thank you