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Corporate OverviewQ4 FY 17
Corporate OverviewQ1 FY 18
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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
Profitable growthRevenue~1,500 employees
HQ in Canada + 25
countries
Snapshot
Enghouse Networks
Telecom software
Enghouse Transportation
Transportation software
Dual Growth – organic &
acquisitions
Toronto Stock Exchange
TSX:ENGH
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Interactive - Sector Dynamics
Contact Center is at the front line of customer interaction,commoditization of the PBX market is driving on-premise, cloud and SaaSdelivery models
Integration of contact center, CRM and analytics are needed to enablecustomer experiences that are contextual, progressive and relevant
Mobile device and application proliferation requires an intelligent andseamless transition from self service to agent assisted interactions
Email, chat and SMS interactions are increasingly popular but voice stillaccounts for 60% of interactions and are typically more complex and ofhigher value and importance
The best person to handle the interaction may be staff in the front, middleor back office, driving convergence of contact center, UC and consolesolutions
Microsoft’s entry in both on-premise and cloud-based UnifiedCommunications (Skype for Business) is a disruptive force as the marketmoves from IP Telephony to UC
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Consoles
2-50 seats
Channel GTM and OEM
On-premise
Mid-Market
10-500 seats
Channel GTM
On-premise or hosted private cloud
Enterprise
50-1000’s of seats
Direct/Channel GTM
On-premise, 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
MULTI-CHANNEL CONTACT CENTERContact Center Enterprise · Contact Center Service Provider · Communications
Center with Skype for Business · Contact Center OnDemand · Outbound
Communication Suite · Contact Center for Market Research
CALL RECEPTION/CALL HANDLINGIntuition Attendant Console (Avaya/Genband) · Arc Pro Attendant Console for
CISCO · CC Console for Microsoft Skype for Business · Andtek Console
SELF-SERVICECommunication Portal · Mobile IVR Navigator · Knowledge Management Suite
QUALITY MANAGEMENTCall Billing and Reporting (Enterprise & Cloud) · Survey Management · Quality
Management Suite · Workforce Management
TELEPHONY & CRM INTEGRATIONCTI Connect · CTI for CRM · VoiceXML Test Suite · Computer Telephony ·
Application Development Environnent · Applications for Avaya CS1000
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Networks - Sector Dynamics
Industry growth fueled by next generation wireless subscriber growth,demand for smartphones, tablet devices, OTT applications and Internet ofThings (IOT)
Continuing investment and roll out of next-generation networktechnologies 4G & LTE and new service offerings, while also dealing withcustomer services and retention
Big data and analytics technologies being deployed to tailor value-addedservices based on subscriber usage and behavior
Network convergence, cloud services and network function virtualization(NFV) 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 – Transparencymarket Research)
Investment by service providers in cloud application and infrastructuretechnologies that enable high value, high margin enterprise businessservices offerings
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Networks Portfolio
Technology solutions to optimize performance for next generation
network operators
OPERATIONS SUPPORT SYSTEMS (OSS)Service Assurance · Performance Management · Inventory Management ·
Resource Management · Planning · Configuration Management · Geographic
Information Systems
BUSINESS SUPPORT SYSTEMS (BSS)Wholesale Revenue Management · MVNO Revenue Management · Intelligent
Routing · Billing SaaS · Customer Experience Management · Electronic
Invoice Management
NETWORK & VALUE ADDED SERVICES (VAS)Mobile VAS · Routing & Control · Security · Call Recording
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Transportation - Sector Dynamics
Fragmented and competitive market. New technologies driving growth insystems and tangible cost benefits / savings
Evolving tablet and smart phone technologies replacing traditional MobileData Terminals (MDT’s). LTE networks to provide interoperability acrossgeographies
Cloud computing gaining momentum and driving replacement of legacytechnology systems in a space traditionally slow to adopt
Economic uncertainty and rising fuel costs driving increased ridership inboth public and private sectors
International political focus on terrorism and natural disasters drivingcontinued investment in transportation and public safety systems
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Transportation Portfolio
TRANSIT OPERATIONSFixed Route & Paratransit Scheduling · Dispatch · Workflow /Driver Management
COMMUNICATIONSFixed Route & Paratransit IVR · Web Based Trip Planning
PRIVATE TRANSPORTATIONCoach and Tour Operations Management
Software solutions for Public Safety, Transit and Supply Chain
PUBLIC SAFETYEmergency Control Center & Dispatch (Police, Fire, Ambulance) · Non-
Emergency Patient Transport
FLEET & TRANSPORTATION MANAGEMENTLogistics 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: Compounded annual growth rate FY13 - FY17
FY 13 FY 14 FY 15 FY 16 FY 17
$180m
$220m
$308m
TOTAL REVENUE
$279m
$325m
FY 13 FY 14 FY 15 FY 16 FY17
$166m
$92m
$115m
$136m
$152m
HOSTED & MAINTENANCE
REVENUE
FY 13 FY 14 FY 15 FY 16 FY 17
$0.29
$0.36
$0.44
$0.52
$0.60 DIVIDEND PER SHARE (based on date of record)
FY 13 FY 14 FY 15 FY 16 FY 17
$1.70
$2.05
$2.59
$2.87
$3.45ADJUSTED EBITDA
PER SHARE
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Revenue Split - FY 17
Note: % rounding applied to charts and tables throughout this corporate presentation
License
30%
Hosted &
Maintenance 51%
Services
17%
Hardware
2%
REVENUE BREAKDOWN
US
32%
UK
20%
EUROPE
17%
CANADA
1%
APAC
6%
SCANDINAVIA
24%
REVENUE BY GEOGRAPHY
Interactive
Management Group
$191m or 59%
Asset
Management Group
$135m or 41%
REVENUE BY BUSINESS GROUP
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Q1 FY 18
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Q1 FY18 (3 months)
Q1 FY 18 Q1 FY 17 % Change
Revenue $85.1m $78.8m 7.9%
Revenue by Segment
Interactive Management Group $48.4m $47.6m 1.8%
Asset Management Group $36.7m $31.3m 17.2%
License revenue $25.8m $24.2m 6.6%
Hosted & Maintenance revenue $42.6m $39.2m 8.8%
Adjusted EBITDA¹ per diluted share $0.93 $0.84 10.7%
Adjusted EBITDA¹ $25.3m $22.8m 11.0%
Quarterly dividend - per common share, based on
date of record $0.16 $0.14 14.3%
Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE, foreign exchange gains and losses and
special charges for acquisition related restructuring costs.
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Q1FY18 (3 months)
Q1 FY 18 Q1 FY 17
Cash spent on dividend $4.3m $3.8m
Cash spent on acquisitions (net of cash acquired &
holdbacks)$4.9m $0.4m
Cash & Investments balance - beginning of period $130.3m $85.9m
Cash & Investments balance - end of period $145.0m $88.3m
Cash flow from operations $23.1m $10.7m
Acquisitions
XConnect Nov 28
SimaTech Dec 19
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Quarterly Results
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 15 FY 16 FY 17 FY 18
REVENUE$ millions
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 15 FY 16 FY 17 FY 18
HOSTED & MAINTENANCE REVENUE$ millions
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 15 FY 16 FY 17 FY 18
ADJUSTED EBITDA$ millions
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
$0.18
$0.20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 15 FY 16 FY 17 FY 18
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
NETBOSS
Q3 FY 16
USA
TOLLGRADE
Q2 FY 17
USA
PRESENCE
Q4 FY 16
SPAIN
NORWAY
SURVOX
Q4 FY 17
USA
XCONNECT
Q1 FY 18
GERMANY
SIMATECH
Q1 FY 18
DENMARK
CELLVISION
Q2 FY 16
NORWAY
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THANK YOU!
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