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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
1
Head Table
Wade K. DaweChairman of the Board
Kevin ShankPresident and Chief Executive Officer
Matt GirardotCorporate Secretary and Counsel
David ToewsInterim Chief Financial Officer
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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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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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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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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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Financial ReviewDavid Toews, CFO
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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
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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
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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
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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
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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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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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Business OverviewKevin Shank, CEO
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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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About Pivot
A Leading Provider of IT Infrastructure Products and Services
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1. Excludes GTS
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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
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Blue-Chip Customer Base
~2,000 Customers
MajorityEnterprise-Class
Companies
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Trusted Partner To Global Technology Leaders
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>400technology partners
~ 40%engineers, technicians,
subject matter experts
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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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Building On The Core
Integration Capabilities
State-of-the-art integration center
for staging, configuration, testing,
inventory management & shipping
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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
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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
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The Strategic Value of Services
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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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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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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
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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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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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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
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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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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
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M&A
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Services Capability Scale
Geography Reach And Touch
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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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Moving Forward
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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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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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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