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ANNUAL GENERAL MEETING June 28, 2017 LIFECYCLE SERVICES Integration Data Centre Security Engineering Network 1

Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Page 1: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

ANNUAL GENERAL MEETING

June 28, 2017

L I F E C Y C L E S E R V I C E S

Integration

D a t a C e n t r e

Security

Engineering

Network

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Page 2: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

Head Table

Wade K. DaweChairman of the Board

Kevin ShankPresident and Chief Executive Officer

Matt GirardotCorporate Secretary and Counsel

David ToewsInterim Chief Financial Officer

Page 3: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

Copyright 2017 Not For Re-Distribution

Agenda

Formal Session

Wade Dawe, Chairman of the Board

Financial Review

David Toews, Chief Financial Officer

Business Overview and Outlook

Kevin Shank, Chief Executive Officer

Q&A

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Page 4: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Recent Developments

Executing transformational strategy

Acquired TeraMach

Achieved a TSX listing

Consolidated shares on a 4:1 basis

Repurchased over 1M shares

Paid our regular quarterly dividend

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Page 5: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling
Page 6: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Business of the Meeting

Appointment of Secretary and Scrutineers

Notice

Presentation of Financial Statements

Election of Directors

Reappointment of Auditors

Termination

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Page 7: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Forward-Looking StatementsThis presentation contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking

statements" within the meaning of applicable Canadian securities laws. Forward-looking statements include statements regarding

growth and value creation opportunities available generally and through the acquisition of TeraMach and the assumptions

underlying any of the foregoing. Pivot uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend",

"anticipate" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on

assumptions and analyses made by Pivot in light of its experience and its perception of historical trends, current conditions and

expected future developments, including the assumption that by co-ordinating efforts, relationships and assets with TeraMach,

Pivot will create additional value for its business, and that the general business climate will not deteriorate, as well as other factors

Pivot believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform

to Pivot's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause

Pivot's actual results to differ materially from those expressed or implied by the forward-looking statements contained in this

presentation. These factors include, without limitation: uncertainty in the global economic environment; delays in integration of

TeraMach within Pivot’s operations; delays in the purchasing decisions of Pivot's customers; the competition Pivot faces in its

industry and/or marketplace; the possibility of technical, logistical or planning issues in connection with the deployment of Pivot's

products or services; the possibility that TeraMach’s results of operations for future periods will be less than for its most recent

period; the risk that costs of integration will negatively impact Pivot’s results of operations; the possibility that Pivot will not be able

to further align its support functions with the selling and delivery arms of the business; the possibility that Pivot will be unable to

capitalize on opportunities it has identified in the manner and timeframe anticipated, and the possibility that Pivot will not be able to

successfully sustain growth or grow its profitability. The "forward-looking statements" contained herein speak only as of the date of

this presentation and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such

information, whether as a result of new information, future events or otherwise.

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Page 8: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

Financial ReviewDavid Toews, CFO

Page 9: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

Copyright 2017 Not For Re-Distribution

Annual Performance

1.14

1.25

1.371.42

2013 2014 2015 2016

Revenue1

$ Billions

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2016 growth of 4% (in line with market)

Product revenue up 4%

Services revenue up 3%

Services revenue growth of 8.6% (excluding

sales of OEM maintenance contracts)

1. Excludes GTS

Page 10: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Annual Performance

11.4% 11.6% 11.6%12.0%

2013 2014 2015 2016

Gross Margin1

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2016 gross profit up 8.2% or $13M to $171M

Gross margin highest in past 4 years

Basic profit generation capabilities stayed strong

Future growth of Pivot’s service business

intended to drive margin improvement

1. Excludes GTS

Page 11: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Annual Performance

24.8

33.4

30.3

25.1

2013 2014 2015 2016

Adjusted EBITDA1,2

$ Millions

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Performance reflected non-recurring expenses

and some inefficiencies related to development

of new capabilities

Expenses included costs to fix legacy issues,

bring stability to the business, effect value

creation plan

1. Excludes GTS

2. Non IFRS measure

Page 12: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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First Quarter Performance

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308.7329.8

35.4 34.1

Q1 2016 Q1 2017

Revenue Gross Profit

1,208

(1,550)11.5% 10.3%

Gross Profit Margin

Revenue vs Gross Profit/Margin1

$ Millions

Adjusted EBITDA1

$ Thousands

1. Excludes GTS

2. Non IFRS measure

Q1 2016

Q1 2017

Page 13: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Credit Facility - Flexible for Growth

Credit Agreement Senior Secured Credit Agreement (“Asset Based Lending Agreement”)

Term 5 Year – expiring September 2020

Size $225M + remaining accordion of $50M

Drawn amount As at March 31/17: $90.0M

Available $69.5M

Financial Covenants Fixed Cost Coverage Ratio 1.1 if Undrawn Availability < 12.5%

Negative Covenants Limitation on amount of Dividends, Share buybacks, Acquisitions and other

Fees Libor+ 1.5% to 1.75%

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Page 14: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Capital Market Strategies

Acquired ~1.2M shares under

prior NCIB

Acquired ~ 920,000 shares from

former Directors and officers

Renewed NCIB with TSX June

22, 2017

Paid $0.04 dividend

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Page 15: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

Business OverviewKevin Shank, CEO

Page 16: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Vital Statistics

Listed: Toronto Stock Exchange

Trading Symbol: PTG

Dividend: C$0.04/share paid quarterly, Yield ~8%

Total Shares Out: 40,293,020

Market Cap: C~$85 million

52-week High: C$2.20

52-week Low: C$1.35

Founded: 2010

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Page 17: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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About Pivot

A Leading Provider of IT Infrastructure Products and Services

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1. Excludes GTS

Page 18: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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A Large and Growing Available Market

Sources: IDC, Markets and Markets

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2017 US IT Spending

Expected to Grow 4%

Pivot

Addressable Market

~$280B

Pivot

$1.4B1

Field Service Market Forecast to Grow 21% Annually to 20201. Excludes GTS

Page 19: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Blue-Chip Customer Base

~2,000 Customers

MajorityEnterprise-Class

Companies

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Page 20: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Trusted Partner To Global Technology Leaders

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>400technology partners

~ 40%engineers, technicians,

subject matter experts

Page 21: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Value Creation Strategies

Build on core products and services business

Expand services capabilities and portfolio

Execute commercial transformation

Follow the customer

Optimize cost structure

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Page 22: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Building On The Core

Integration Capabilities

State-of-the-art integration center

for staging, configuration, testing,

inventory management & shipping

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Page 23: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Digital Enterprise B2B eCommerce platform delivering customer procurement integration

New customers on the platform:

Large teleco

Large software company

Large beverage company

Large wireless company

Digital Ecommerce – Interconnect

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2015 2016

$22m $215m

11K transaction 46K transactions

Building On The Core

Page 24: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Evolving Our Market Position

SOURCING DESIGN& PROCUREMENT

INTEGRATION LIFECYCLESERVICES

VALUE

Notional View Of Competitive Landscape

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Today

Recurring Revenue

Higher Margin

Services ~ 30% EBITDA

Products ~70% EBITDA

Tomorrow

Page 25: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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The Strategic Value of Services

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Page 26: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Building Our Brand

Disparate & Under Leveraged Capabilities

Building Client, Partner & Industry Portfolio Awareness

Brand Identity

5 Service

Channels

4 Solution

DisciplinesEnd User Data Center CollaborationNetwork

Fulfillment Services

Deployment Services

Workforce Services

Managed Services

ProfessionalServices

Client Care

Customer First Experience

Outcome Based Accountability

PMO

Common Methodology

Consistent, Repeatable, Successful

Solutions Management

Forward Thinking

Radical Transparency

Technology Innovation

Capability Expansion

Value Continuum

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Page 27: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Evolution to Service Growth

Services

Portfolio

Creation

Solution

Skills

Service

Commercial

Transformation

Creation

Service Deal

Assembly Line

Expansion

of Installed

Accounts

New PTS

Service

Capabilities

Knowledge

Experts in

MS

Short-Term Longer-Term

Ongoing

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Page 28: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Proven Functional Management Expertise

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Kevin Shank

CEO

Chief Strategy Officer

Unified Portfolio

Chief ServicesOfficer

Each Team Member Has 20+ Years of Relevant Experience

CanadaACS

Legal

HR

Finance

Sales

Page 29: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Services Portfolio Design and Concept

Channels End User Network Data Center Collaboration

Fulfillment

Services

Professional

Services

Deployment

Services

Workforce

Services

Managed

Services

New or planned capabilityExisting capability Partial Capability

S o l u t i o n D i s c i p l i n e s

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Page 30: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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5 Service

Channels

4 Solution

Disciplines

Pivot Unified Services Portfolio - 2017

End User Data Center CollaborationNetwork

Fulfillment

Services

Deployment

Services

Workforce

Services

Managed

ServicesProfessional

Services

Assess > Design > Implement > Manage > OptimizeServices

Value Stream

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Page 31: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Commercial Transformation – Client Example

Tremendous growth potential via the introduction of:

Account planning methodology (5x5)

Account based marketing approach

New Portfolio Capabilities

Introduction of adjacent service offerings to existing product sales

Solution management and selling methodology

Increased attach and annuity revenue via Managed Services & Integrated Solutions

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CustomerX EndUser Network DataCenter Collaboration

EnterpriseProduct

$2.23M $13.8M $14.67M

ProjectServices

AdvisoryServices

$184K

IntegratedSolutions

$2.2M(3rd

Party)

ManagedServices

Product&ServiceDisciplines

ServiceCh

anne

ls

Sizeable, Sticky,

Annuitized

Revenue…Driving

Enterprise Value For Pivot

Existing Capability

Penetrated

Existing Capability

Not Penetrated

New or Enhanced Capability

Opportunity

Page 32: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Ongoing Expansion – Q1 & Q2 Discipline Launches

• Client Computing

• Mobile Computing

• VDI

• User Data & Security

• Advanced Integration

& Deployment

• Mobile Lifecycle

Services

End User

• LAN

• WAN

• Wireless

• Application Optimization

• Security

• Software Defined

WAN

• Software Defined

Network

Network

• Contact Center

• Mobility

• Voice / IP Telephony

• Collaborative

Workspace

• Next-Gen Meetings

(Cisco Spark)

• Collaboration

Consumption

Collaboration

• Traditional Datacenter

• Private Cloud

• Public Cloud

• Hybrid Cloud

• DevOps

• Cloud Brokering

(AWS)

• Private Cloud

Foundation

Datacenter

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Page 33: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Transformation Continuation

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6 Primary Work Streams

People Alignment

Process & Operations

Technology & Integrations

Innovation

Communications

Finance

Prioritized by CTQs & Business

Impact

CTQs – Improved Stability, Multiple

Improvements, Increased EBITDA

37 Projects in Motion

Page 34: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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M&A

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Services Capability Scale

Geography Reach And Touch

Page 35: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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TeraMach Acquisition Furthers Our Objectives

Capabilities we can integrate, sell

Strong customer base

Attractive territory

Synergistic supply relationships

Enhancing portfolio

Strong Q1 2017

As a Canadian Leader, TeraMach is a Perfect Complement

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Page 36: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

Moving Forward

Page 37: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Looking Ahead

Continued enhancement of portfolio

Commercial transformation underway includes:

▪ Educating sales team on our expanded offerings

▪ Implementing a unified CRM and deal process flow

▪ Adding additional solutioning capabilities and an account

planning and measurement process

Amount of change in marketplace is

accelerating

Pipeline of services opportunities growing

Second half of 2017 stronger than first half due

to seasonality, expected traction with plan

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Page 38: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

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Summary

PAYMENTS

Large addressable market featuring attractive growth trends/prospects

Proven business serving ~2,000 customers, generating US$1.4 billion of revenues

Trusted vendor relationships with the world’s leading IT companies

Low-risk, low cost adjacency strategy to enhance earnings and consistency

Opportunity to reduce variable costs and optimize balance sheet

Experienced and proven managed services and technology leadership talent

Dividend payer with ~8% yield

1.

2.

3.

4.

5.

6.

7.

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Page 39: Network - pivotts.comAccount based marketing approach New Portfolio Capabilities Introduction of adjacent service offerings to existing product sales Solution management and selling

ANNUAL GENERAL MEETING

June 28, 2017

L I F E C Y C L E S E R V I C E S

Integration

D a t a C e n t r e

Security

Engineering

Network

39