INNOVATION AT THE HEART OF SUPPLY CHAINS. Investor Presentation

Transcription

1 SUPERIOR PLATFORM FOR A NEW ERA OF GROWTH INNOVATION AT THE HEART OF SUPPLY CHAINS Investor Presentation

2 Safe Harbor 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. 2

3 TECSYS Supply Chain Platform End-to-end, Integrated Supply Chain Management Solutions Analytics Demand Planning & Procurement Order & Inventory Management Warehouse Management Distributed & Virtual Inventory Transport Management Financial Management 3rd Party Billing Collaboration - Customers, partners, suppliers, and enterprise systems E A S E Execute Adapt Scale Expand Supply Chain Platform 3

4 Visionary provider of SCM technology 600+ CUSTOMERS CUSTOMERS 1,500+ SITES HEALTH SYSTEMS HEALTH SYSTEMS Complex Distribution WINE AND TOP 3PL DOMINANT MARKETDOMINANT SHARE MARKET SHARE DEALERS SPIRITS PROVIDERS 4

5 Continued Recognition by Gartner Positioned in the Visionaries Quadrant during 4 consecutive years 5

6 Market Opportunity - Healthcare 5,686 Hospitals 300 Target Health Systems = 10 health systems = Inroads = 10 hospitals = Inroads Average Deal Size: $0.4M Average Deal Size: $1.5M 6

7 Market Opportunity Complex Distribution $3B Market in % SCM Growth through 2019* *Gartner estimate

8 Industry drivers HEALTHCARE COMPLEX DISTRIBUTION Revenue Model Change Need for lower cost structure Omni-Channel Environment Multiple Warehouses Multiple SKUs Multiple Formats Regulations HIPAA DSCSA UDI Technology and the Internet of Things From Proprietary to Proven Reliable and Scalable 8

9 Why we win FOCUS 2 CUSTOMIZATION 1 3 EXPERTISE Selected markets with deep pockets Solutions to the right problem Differentiated technology providing unequalled efficiency and visibility Tailored solutions to fit clients needs perfectly Seamlessly integrated Experienced workforce Clear understanding of sector specific issues TECSYS SMART 9

10 FY 2015 sources of revenue HEALTHCARE COMPLEX DISTRIBUTION 40% 60% 10

11 Delivering sustainable revenue growth 4-year CAGR: 13% $57.3 Growth Drivers: $35.7 $39.5 $43.8 $46.6 Proprietary products (4-year CAGR 21%) Healthcare

12 Growing recurring revenue $25.0 $20.0 $15.0 $10.0 $ year CAGR: 11% $14.8 $15.5 $17.6 $ % 37% 35% 38% 37% Recurring revenue includes: Support & Maintenance license (under Services and Products) Hosting (under Services) (Recurring Revenue in Millions) $5.0 $ % of total revenue 12

13 New Account Bookings Growth In Millions of CDN$ New Account Bookings 2011 New Account Bookings 2014 New Account Bookings 2015 Healthcare Complex Distribution 18% 25% $5.9M $7.9M $15.3M 75% Complex Distribution Complex Distribution 52% 48% Healthcare 82% Healthcare 13

14 Total Bookings Growth In Millions of CDN$ $18,112 $28,902 $17,508 $17,985 Healthcare 28% Healthcare 25% Healthcare 61% Complex Distribution 72% $6,892 Complex Distribution 75% $5,898 Complex Distribution 39%

15 Track record of long-term growth Total Bookings* (Millions) Backlog* (Millions) $47.0 $44.9 $19.3 $23.2 $24.4 $23.9 $21.0 $26.3 $27.2 $ *Total Contract Value

16 New regulation driving change in healthcare Improving affordability Higher productivity Controlling costs to comply with ACA Complying with UDI and DSCSA regulations 16

17 Impact of Supply Chain on healthcare costs 55% supply chain 15% 100% 15% 25% 45% HOSPITAL COST SEGMENTS clinical & general labour supplies logistics & distribution others total 17

18 In Business for Optimizing Health Systems Supply Chains For Better Outcome Manage Optimize Eliminate Reduce Deliver Maximize Information, Transparency and Control 30% Reduction in Inventory Levels Better Patient Outcomes 10% Product cost Retain Cash Longer 25% Delivery cost Regulatory Compliance 50% Clinical time 92% Reduction in Expired Stock 18

19 Shift from Legacy Model to CSC * Model of Healthcare Supply Chain Management * CSC: Consolidated Service Center 19

20 The Parkview Health story TECSYS will revolutionize how business is conducted in the healthcare arena. The ROI is solid. If you are looking for innovation to become the front-runner in the industry, then you should look at TECSYS. I did look and I did not find anyone with the same depth and breadth of a superior Warehouse Management System solution as TECSYS. Donna van Vlerah VP Supply Chain, Parkview Health 7 hospitals 4 community hospitals Outpatient facility Long-term care facility Distributor fees Distribution costs >$17M Reclaimed uncharged supplies $8M Obsolescence costs 50% Manual work 8% Non-catalogue items 20

21 Near-term growth strategies HEALTHCARE 2 COMPLEX DISTRIBUTION 1 3 Additional POU Solutions Expand into Pharmacy Expand into Home Care Brought in new Leadership with dedicated sales team Revitalize and simplify products GROW Base account revenue as a percentage of total revenue Strategic tuck-in acquisitions 21

22 Financial highlights Q1/2015 Q1/2016 Change $ % $ % $ % Revenue 13, % 14, % 1,919 15% Cost of sales 6,926 53% 7,511 50% 585 8% Gross margin 6,086 47% 7,420 50% 1,334 22% Sales & Marketing 2,611 20% 3,592 24% % General and Administration 1,427 11% 1,369 9% -58-4% Research and Development 1,574 12% 2,252 15% % Operating expenses 5,612 43% 7,213 48% 1,601 29% Earnings from operations 474 4% 207 1% % Net earnings 343 3% 69 0% % EBITDA 1,003 8% 831 6% % EPS (basic) $0.03 $0.01 ($0.02) -67% 1 Annualized 22

23 Tracking our progress 8 to 12% Topline Growth 40% Target Annualized Recurring Revenue Maintaining Backlog Continue Growing Total Bookings 23

24 TECSYS Superior Value for Shareholders Performance Against TSX Technology Index Outperformance TCS-T S&P/TSX Information Technology Index 91% 100% 25% 40% 12% 20% 65% 11% 80% 60% 40% 20% 0% -20% -40% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY % 24

25 Committed leadership Peter Brereton President and CEO Pedro Patrao Sr VP Global Services Larry Lumsden VP Products Catherine Sigmar VP Strategic Initiatives Co-founder 10+ years Former SAP, Head of North America Enablement Services Former CAE, Director, Core Software Technologies Former Baan, Senior Vice President Berty Ho CFO Greg MacNeill SVP Global Sales Robert Colosino VP Marketing and Business Dev Patricia Barry VP Human Resources 10 + with years together TECSYS 25

26 Corporate overview $111M 12.3M MARKET CAP S/O BROKERAGE COVERAGE Beacon Securities Cantor Fitzgerald Cormark Securities Euro Pacific Laurentian Bank Securities PI Financials Corp. SYMBOL TCS INSTITUTIONAL HOLDERS Fiera Capital Mackenzie Pembroke Pender 10 DIVIDEND PER YEAR 45% INSIDER OWNERSHIP 26

27 Question & Answer 27