enghouse - corporate presentation corporate overview

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1 Corporate Overview Q3 FY 18 Enghouse - Corporate Presentation Q3 FY21

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Page 1: Enghouse - Corporate Presentation Corporate Overview

1

Corporate OverviewQ3 FY 18

Enghouse - Corporate PresentationQ3 FY21

Page 2: Enghouse - Corporate Presentation Corporate Overview

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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.

Page 3: Enghouse - Corporate Presentation Corporate Overview

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Two-pronged growth strategy focused on internal growth and

acquisitions

The Company is organized around two business segments delivering

solutions for remote work, visual computing and communications for

next generation software defined networks:

➢ Interactive Management Group (“IMG”)

▪ Customer interaction solutions (including video collaboration)

➢ Asset Management Group (“AMG”)

▪ Networks Group provides technology solutions to communications and media,

utilities and defense organizations

▪ Transportation & Public Safety Group provides software solutions for transit,

supply chain and public safety

Completing selective acquisitions within existing markets and entering

new strategic software markets on an opportunistic basis

Strategy

Page 4: Enghouse - Corporate Presentation Corporate Overview

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Enghouse Interactive

Profitable growthRevenue~1,800 employees

HQ in Canada, offices in

25+ countries

Snapshot

Enghouse Networks Enghouse Transportation

& Public Safety

Dual Growth Revenue (organic & acquisitions)

Toronto Stock Exchange

TSX:ENGH

Page 5: Enghouse - Corporate Presentation Corporate Overview

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Interactive Portfolio

SELF-SERVICEAI Powered Multi-channel Self-service

Mobile Self-service Platform

Knowledge Management

QUALITY MANAGEMENTCall Billing and Reporting

Interaction Recording and Analysis

Survey ManagementWorkforce Management

AI Powered Business Insights

TELEPHONY, VIDEO & CRM INTEGRATION

CRM IntegrationTelephony Application Enablement

Video Application EnablementVoiceXML Application Test

OMNI-CHANNEL CONTACT CENTERMid-market Contact CenterEnterprise Contact Center

Enghouse CCaaSAI Powered Social Media

Video Enabled Contact Center

CALL RECEPTION/CALL HANDLING

Mid-market Attendant Console Enterprise Attendant Console

Cloud Attendant ConsoleDirectory Integration

VIDEO INTERACTIONHealthcare

Financial Institutions

Enterprise Video CollaborationTechnology Companies

UCaaSEnterprise Video

Solutions that transform customer engagement

Page 6: Enghouse - Corporate Presentation Corporate Overview

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Managing, monetizing & protecting networks in digital transformation

Networks Portfolio

BUSINESS SUPPORT SYSTEMS

Billing as a ServiceMVNO Billing Solutions

IoT Monetization & Billing

Wholesale Revenue Management

Technology solutions enabling network & digital transformation for 5G operators

OPERATION SUPPORT SYSTEMS

e.AI

Geographic Information Systems

Network Inventory & PlanningPerformance Management

Fault ManagementNetwork Testing

NETWORK INFRASTRUCTUREMobile Value-Added Services

Intelligent Routing

Session Border ControllerStack, Signalling and STP

Media GatewaysControl Switch

DIGITAL TRANSFORMATIONTV as a ServiceVideo Solutions

Embedded Browsers

Page 7: Enghouse - Corporate Presentation Corporate Overview

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Transportation & Public Safety

PortfolioSoftware solutions for transit, supply chain and public safety companies

PUBLIC SAFETYEmergency Control & Dispatch

(1st responders)Non-Emergency Patient Transport

FLEET MANAGEMENTLogistics Management

Order Tracking

TelematicsContainer Tracking and Monitoring

TRANSIT OPERATIONSFixed Route & Demand Response

Scheduling & Dispatch

Driver Management

e-TicketingAutomated Fare Collection

COMMUNICATIONSFixed Route

Demand Response

Operator & Fare IVR

PRIVATE TRANSPORTATIONCoach and Tour Operations Management

Page 8: Enghouse - Corporate Presentation Corporate Overview

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ANNUAL RESULTS

Page 9: Enghouse - Corporate Presentation Corporate Overview

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Fiscal Year Results (ending Oct 31)

Note¹: Compounded annual growth rate FY16 – FY20

FY 16 FY 17 FY 18 FY 19 FY 20

$308m

$343m

TOTAL REVENUE

$325m

$386m

$504m

FY 16 FY 17 FY 18 FY 19 FY 20

$220m

$287m

$166m$178m

$191m

HOSTED & MAINTENANCE

FY 16 FY 17 FY 18 FY 19 FY 20

$1.44

$1.73

$1.94$2.10

$3.18

ADJUSTED EBITDA

PER SHARE

FY 16 FY 17 FY 18 FY 19 FY 20

$0.26

$0.30

$0.34

$0.40

$0.49 DIVIDEND PER SHARE

(based on date of record)

Page 10: Enghouse - Corporate Presentation Corporate Overview

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Q3 & YTD FY21

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Q3 & YTD FY21

Q3 FY21 Q3 FY 20%

Change YTD FY 21 YTD FY 20%

Change

Revenue $117.6m $131.3m -10.4% $354.1m $382.9m -7.5%

Revenue - IMG $65.6m $75.2m -12.8% $201.7m $228.0m -13.0%

Revenue - AMG $52.1m $56.2m -7.3% $152.3m $154.9m -1.7%

Hosted and Maintenance revenue $68.4m $77.4m -11.6% $211.1m $213.7m -1.2%

Adjusted EBITDA¹ $41.7m $45.6m -8.6% $126.4m $130.2m -2.9%

Adjusted EBITDA¹ per diluted share $0.75 $0.81 -7.4% $2.26 $2.35 -3.8%

Dividend - per common share, based on date

of record

including special dividend² of $1.50 per common

share

$0.16

$0.16

$0.135

$0.135

18.5%

18.5%

$0.43

$1.93

$0.36

$0.36

19.4%

436.1%

Cash spent/(received) on acquisitions - net

of cash acquired & holdbacks$5.1m ($4.3m) 218.5% $36.3m $43.9m -17.3%

Cash & Investments balance - end of

period$187.8m $228.9m -18.0% $187.8m $228.9m -18.0%

Operating cash flow - before working

capital adjustments$41.1m $45.3m -9.2% $125.4m $130.5m -3.9%

Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PE and ROU assets and special charges for acquisition

related restructuring costs.

Note²: A special dividend of $1.50 per common share was paid on Feb 16, 2021 to shareholders of record as at Jan 15, 2021

Page 12: Enghouse - Corporate Presentation Corporate Overview

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Quarterly Results

Note¹: A special dividend of $1.50 per common share was paid on Feb 16, 2021 to shareholders of record as at Jan 15, 2021 – not reflected

in the above chart

$0

$20

$40

$60

$80

$100

$120

$140

$160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 18 FY 19 FY 20 FY 21

REVENUE$ millions

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 18 FY 19 FY 20 FY 21

HOSTED & MAINTENANCE REVENUE$ millions

$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 18 FY 19 FY 20 FY 21

ADJUSTED EBITDA PER SHARE

$0.00

$0.02

$0.04

$0.06

$0.08

$0.10

$0.12

$0.14

$0.16

$0.18

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1¹ Q2 Q3 Q4

FY 18 FY 19 FY 20 FY 21

DIVIDEND PER SHARE(based on date of record)

Page 13: Enghouse - Corporate Presentation Corporate Overview

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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-on-cash payback within 5 - 6 years

Page 14: Enghouse - Corporate Presentation Corporate Overview

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Recent Acquisitions

DIALOGIC

Q1 FY 20

USA

ALTITUDE

Q1 FY 21

PORTUGAL

MOMINDUM

Q3 FY 21

FRANCE

ESPIAL

Q3 FY 19

CANADA

VIDYO

Q3 FY 19

USA

EPTICA

Q4 FY 19

FRANCE

NEBU

Q3 FY 21

NETHERLANDS

Page 15: Enghouse - Corporate Presentation Corporate Overview

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THANK YOU!