Investor Presentation

Q2 2019

Looking Forward

Statements

2

The statements in this presentation relating to

matters that are not historical fact are forward

looking statements that are based on

management's beliefs and assumptions.

Such statements are not guarantees of future

performance, and are subject to a number of

uncertainties, 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 the control 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

trademarks of their respective owners.

Collaboration

End-to-end, Integrated Supply Chain

Management Solutions

3

Financial Management 3RD Party Billing

A N A L Y T I C S

E X E C U T E | A D A P T | S C A L E | E X P A N D

CUSTOMERSPARTNERSSUPPLIERS ENTERPRISE SYSTEMS

Sales Orderto Cash

Point

of Use

TransportationWarehouseProcurement& Inventory

Demand Planning

HealthcareComplex

Distribution

Top 3PL ProvidersHeavy Equipment Dealers Wine and SpiritsHealth Systems

Visionary Provider of SCM Technology

4

of total

revenue

56%

of new acct

bookings

50%

of total

revenue

44%

of new acct

bookings

50%

600+customers

1500+sites

50,000+users

((

Solid Sustaining Growth in

Complex Distribution

5

Source: International Warehouse Logistics Association (IWLA), Warehousing Education and Research Council (WERC), American Production and Inventory

Control Society (APICS), European Logistics Association (ELA), Company Websites, Expert Interviews, White Papers, and MarketsandMarkets Analysis

14% SCM Growth

through 2019*

$1.5BMarket in 2017

6

Visual LogisticsVisual images and

instructions delivered

via RF

Cloud-based

OneSprintWMS system in the

cloud for faster

implementation

Mobile-EnabledDelivery management

designed for mobile

Building Market Leadership

through Innovation6

Leveraging Technology

and Expertise

in a New Vertical Regulatory Compliance

Mergers & Acquisitions

Healthcare SCMThe next wave of

sector-wide process

improvement

Drivers:

Affordable Care Act

Sustaining Operating Margin

7

SCM Impact on Healthcare Costs

8

5-15% in SCM

savings improves

Operating Margin

by 3-8%

94%6%

Market Opportunity Current Share

Market Opportunity:

$9.6B

83%

17%

Market Opportunity

Extending our Reach in Health Systems

Health Systems

Market Share

Opportunity

with Current Base:

$610M+

Base Account

Penetration

500Target Health Systems

38%of Total Bookings

9

TECSYS and UNC

2,675 Staffed Beds 56 Clinics

12 Hospitals 249 Operating Rooms

3.5 Billion in Total Revenue

9.5 Billion in Patient Revenue Signed a LOI to merge with

Carolinas HealthCare System;

the combined entities operate

over 50 hospitals

10

TECSYS visibility gives us optimal performance at the six-sigma level with less than 5%

obsolescence in our supply chain.

“With the deployment of TECSYS SMS we have

been able to capture $14 to $16 million in revenue per year.”

• Not-for-profit community-based

health system

• 9 hospitals, 10,000 employees

TECSYS brings to the table a very important flexibility… it allows us schedule and allocate

resources more efficiently.”

“We anticipate between $8 and $13 million in

savings.”

Why We Win

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• One of the top 5 U.S. health systems

• 45 acute care and specialty hospitals

• 700 physician practices and outpatient

facilities

Steady Revenue Growth

12

In $CAD Millions

* Refer to 2018 annual report MD&A for definition of recurring revenue

Growth Drivers• Cloud, Maint. and Sub. Revenue

(4-year CAGR 12%)

• Healthcare revenue

(4-year CAGR 27%)

$46.6

$57.3

$67.5 $68.4$70.7

$17.1$19.3

$23.3$26.3 $27.0

36.8%33.7% 34.5%

38.4% 38.2%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

2014 2015 2016 2017 2018

Total Revenue Recurring Revenue Recurring revenue %*

Predictable Professional Services Revenue

13

* Base account revenue for PS divided by total PS revenue

Service Revenue

Includes PS, EBS and ATS

Proportion of PS revenue from

Base Account in the last 5 years

83%*

Healthcare Revenue Growth

14

In $CAD Millions

Total Revenue

4-year CAGR

11%

Healthcare Revenue

4-year CAGR

27%

Financial highlights

15

* Refer to 2018 Annual Report MD&A “Non-IFRS Performance Measure”

** Refer to 2018 annual report MD&A for definition

$ % $ % $ % $ % $ % $ %

Revenue $18,184 100.0% $18,072 100.0% $112 0.6% $70,602 100.0% $70,415 100.0% $187 0.3%

Cost of sales $8,674 47.7% $8,634 47.8% $40 0.5% $35,823 50.7% $34,926 49.6% $897 2.6%

Gross margin $9,510 52.3% $9,438 52.2% $72 0.8% $34,779 49.3% $35,489 50.4% ($710) -2.0%

Sales & Marketing $4,100 22.5% $3,851 21.3% $249 6.5% $14,546 20.6% $15,260 21.7% ($714) -4.7%

General and Administration $1,931 10.6% $1,611 8.9% $320 19.9% $6,652 9.4% $5,991 8.5% $661 11.0%

Research and Development $2,655 14.6% $2,381 13.2% $274 11.5% $10,261 14.5% $5,190 7.4% $5,071 97.7%

Operating expenses $8,686 47.8% $7,843 43.4% $843 10.7% $31,459 44.6% $26,441 37.6% $5,018 19.0%

Earnings from operations $824 4.5% $1,595 8.8% ($771) -48.3% $3,320 4.7% $9,048 12.8% ($5,728) -63.3%

Net earnings $596 3.3% $1,356 7.5% ($760) -56.0% $3,133 4.4% $7,089 10.1% ($3,956) -55.8%

EBITDA $1,422 7.8% $2,184 12.1% ($762) -34.9% $5,577 7.9% $11,486 16.3% ($5,909) -51.4%

EPS (basic) ($0.05) -50.0% ($0.33) -57.9%

Bookings $16,226 $11,453 $4,773 41.7% $53,620 $47,037 $6,583 14.0%

Backlog $51,657 $42,350 $9,307 22.0% $51,657 $42,350 $9,307 22.0%

Q2, 2019 Q2, 2018 Δ YoY Q2, 2019 TTM Q2, 2018 TTM Δ YoY

$0.05 $0.10 $0.24 $0.57

*

**

**

Acquisition of OrderDynamics

Key Metrics

▪ Purchase Price: $13.4 M

▪ Revenue Forecast (March 31, 2019): $7M

▪ Revenue forecast growth FY19/FY18: ~30%

▪ EBITDA (March 31, 2019): ($2M)

Description

▪ Cloud-based Distributed Order Management software

▪ 50 employees

▪ Based in Richmont Hill, Ontario

▪ Key customers include: Ubisoft, Sephora, Uniqlo, Golf

Town, Kmart Australia, Khiels

Rational of the transaction

▪ Acquisition of a complementary technology

▪ Expand omnichannel distribution capabilities for

E-commerce companies that have high growth

potential

▪ Leverage OD’s global presence (especially in

Europe and Australia)

▪ Strenghten TECSYS offering for the 3PL and

retail market

▪ SaaS-based business model

▪ Leverage their growing SI partners

Key Strengths

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• Selected markets with deep

pockets

• Solutions to the right problem

• Differentiated technologyproviding unequalled

efficiency and visibility

• Tailored solutions to fit clients’

needs perfectly

• Seamlessly integrated

• Experienced workforce

• Clear understanding of

sector specific issues

• TECSYS SMART™

CustomizationFocus Expertise

The vendor offers very differentiated

capabilities, domain expertise and customer

experience in healthcare provider SCM, with

more than 60% of its bookings now in that

industry. It also is pursuing a notably unique

vision for Omni-Channel concepts applied to

pharmacy SCM. The core WMS requirements in

these environments are not dramatically

different from other industries; however, TECSYS

has distinguished itself by adding specialized

capabilities, such as integrating WMS upstream

into hospitals for automatic replenishment.”

Continued

Recognition

by Gartner

C. Dwight Klappich

Research VP, Supply Chain

Visionaryfor 5 years

consecutively

4 TECSYS

customersin top 5 - Gartner’s

Top 25 Healthcare

Supply Chains

17

Near-term Growth Strategies

18

• Additional POU solutions

• Expand into pharmacy

• Expand into home care

• Leverage new leadership with dedicated

sales team

• Revitalize and simplify products

Healthcare

Complex

Distribution

• Grow revenue as a percentage of total

revenue

• Strategic tuck-in acquisitions

Base

Accounts

Mergers &

Acquisitions

40%Target Annualized

Recurring Revenue

Tracking Our Progress

19

8% -12%Topline Growth

Continue Growing

Total

Bookings

Enhanced

Operating

Leverage

Corporate Overview

20

$182MMarket Cap

13.1M S/O

Symbol

TCS22¢Dividend per Year

30%Insider Ownership

Brokerage Coverage

Institutional Holders

EdgePoint

Fiera

FTQ

Mawer

Pembroke

Stableview

Beacon Securities

Cormark Securities

Echelon Partners

GMP

IA Securities

LB Securities

Question & Answer

21

Thank You