Post on 24-Jul-2020
InvestorPresentationQ42020
ASymbolofLeadership
SafeHarbour
The statements in this presentation relating to matters that are not historical fact are forwardlooking statements that are based on management's beliefs and assumptions.
Such statements are not guarantees of future performance, and are subject to a number ofuncertainties, 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 thecontrol 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 trademarksof their respective owners.
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OurPurpose:Toempowergoodcompaniestobegreat.
OurPosition:Toclarifyuncertaintyinthesupplychain.
OurMission:Toequipsupplychaingreatness.
OurVision:Thatgoodcompanieshavethespacetothrive.
Ourstoryisallaboutourcustomers
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Visionaryproviderofsupplychaintechnologyfor theworld’smostcomplexsupplynetworks
9Times“Visionary”inGartner’sWMSMagicQuadrant
Top3inGartner’s2019HealthcareSupply
ChainTop25“Masters”
37Yearsofcomplexsupply
networkexperience
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E-Commerce
PointofUse
End-to-endIntegratedSupplyChainManagementSolutions
FinancialManagement 3RD PartyBilling
ANALYTICS
Healthcare – Distribution – Retail –3PL
CUSTOMERSPARTNERSSUPPLIERS ENTERPRISESYSTEMS
TransportationWarehouseProcurement&Inventory
DemandPlanning
Collaboration
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Delivering end-to-end solutions with technology & services tailored to key industries
SolutionsBuiltonExperience
6 7/21/20
Complex Supply Networks Retail
Third Party Logistics Healthcare
GlobalReach
1,000+ Customers
$105M Revenue*
58% USA 23% Canada 19% ROW
(primarily Europe)
$48MAnnual Recurring
Revenue**
514 Employees
7 * Last twelve months, April 30, 2020** At April 30, 2020
ExtendingourReachin$10BUSHealthSystemsMarket–TheARROpportunity
87% 13%
Market Opportunity Current Share
ARROpportunity:
$600m
83%
17%
Market Opportunity
ARROpportunitywithCurrentBase:
$76m+300TargetHealthSystems
HealthSystemsMarketShare
BaseAccountPenetration
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B2BandB2CMarketplaceConvergence
§ Businesses/tradingpartnersexpectthesame
§ Extraordinarypressureonsupplychaintodeliver
Result: SupplyChainManagementisatacrossroadsandinneedofanswersOpportunity: Tecsys iswellpositionedtosolvethesechallenges
§ Seismicshifthappeninginretail
§ Consumersdemandproductsfaster
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EvolutionofAnnualRecurringRevenue(ARR*)
23%YoY ARR Growth (constant currency)
2017 2018 2020
$27.1 $27.5
$48.1
*RefertoJanuary31,2020ManagementDiscussionandAnalysis“KeyPerformanceIndicators”
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2019
$39.1
Amounts in January 31, 2020 constant CAD millions
AnnualRecurringRevenueNetRetentionRate
106%2020 FY20 Recurring Revenue Net Retention Rate
2017 2018 2020
98% 98%
106%
NetRetention= (Existingcustomerexpansionlesschurn)dividedbyBeginningperiodARR
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2019
106%
ShareholderValueGrowthThroughSaaSMigration
WhySaaS?
Agility ofDeployment
Accelerated Upgrades
Managed Security and
Certifications
Mature Cloud Data Security
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0
200
400
600
800
1000
1200
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
License SaaS
PerpetualLicensevs.SaaSPricingModelCrossOver
SaaS typically priced at 2.5xperpetual license maintenance
SaaS Annual Contract Value (ACV) typically equals .5x license
In year 4 (at ~40 months) SaaS cumulative revenue crosses over perpetual license cumulative revenue*
Net gain over perpetual maintenance revenues
*SaaScontractstypically5yearsindurationwithautorenewalthereafter
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SaaSBookingsGrowingRapidly,andincreasingasaProportionofTotal(License Equivalency Basis)
Amounts in CAD millions
2017 2019 2020
$5.9$6.7
$22.2
SaaS
License
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$8.9
2018
147%YoY growth
23%License bookings
77%SaaS bookings
SaaSFuelsRecurringRevenueGrowth
279%YoY SaaS Revenue Growth*
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* As of Q4 FY20
Amounts in CAD millions
25%Q4 FY20 SaaS Revenue as a percentage of total Cloud, Maintenance and Subscription Revenue (up from 15% in Q4 FY19)
$0.0 $0.0
$0.9
$1.4$1.7
$2.1$2.5 $2.7
0.0
0.5
1.0
1.5
2.0
2.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
Q1 FY19A Q2 FY19A Q3 FY19A Q4 FY19A Q1 FY20A Q2 FY20A Q3 FY20A Q4 FY20A
Quarterly SaaS Revenue Growth
Total SaaS Revenue Total Cloud, Maintenance and Susbscription Revenue
§ Strengthenedportfoliowithastrongretailcapabilitytoexpandaddressablemarket(OrderDynamics,OrderManagementPlatform)
§ ExpandedfootprintinEurope(PCSYSA/S,nowTecsysA/S)
§ Nowafteroneyear- Acquisitionsintegratedandcontributingpositivelytogrowth
KeyAcquisitions-Update
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CorporateInformation
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AnnualRecurringRevenue**
$43.8Mup 57%
SaaSARRBookings*
$8.8Mup 472%
Cloud,MaintenanceandSubscriptionRevenue*
$41.1Mup 31%
* Lasttwelvemonths,April30,2020** AtApril30,2020
FinancialHighlights,inCAD000exceptEPS
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Q4,2020 Q4,2019 ΔYoY Q4,2020TTM Q4,2019TTM ΔYoY
$ % $ % $ % $ % $ % $ %TotalRevenue $27,750 100.0% $23,191 100.0% $4,559 19.7% $104,855 100.0% $76,449 100.0% $28,406 37.2%Cloud,MaintenanceandSubscriptionRevenue $10,638 38.3% $9,360 40.4% $1,278 13.7% $41,058 39.2% $31,282 40.9% $9,776 31.3%Costofsales $14,854 53.5% $12,282 53.0% $2,572 20.9% $54,537 52.0% $39,008 51.0% $15,529 39.8%Grossmargin $12,896 46.5% $10,909 47.0% $1,987 18.2% $50,318 48.0% $37,441 49.0% $12,877 34.4%
Sales&Marketing $5,368 19.3% $5,058 21.8% $310 6.1% $20,134 19.2% $17,204 22.5% $2,930 17.0%GeneralandAdministration $2,637 9.5% $2,836 12.2% ($199) -7.0% $9,821 9.4% $9,354 12.2% $467 5.0%ResearchandDevelopment $4,297 15.5% $3,852 16.6% $445 11.6% $15,235 14.5% $12,681 16.6% $2,554 20.1%Restructuringcosts $0 0.0% $0 0.0% $0 100.0% $420 0.4% $0 0.0% $420 100.0%Operatingexpenses $12,302 44.3% $11,746 50.6% $556 4.7% $45,610 43.5% $39,239 51.3% $6,371 16.2%
Profit(loss)fromoperations $594 2.1% ($837) -3.6% $1,431 171.0% $4,708 4.5% ($1,798) -2.4% $6,506 -361.8%
Netincome(loss) $375 1.4% $79 0.3% $296 -374.7% $2,346 2.2% ($741) -1.0% $3,087 -416.6%
AdjustedEBITDA $1,951 7.0% $684 2.9% $1,267 -185.2% $10,271 9.8% $2,776 3.6% $7,495 270.0%
EPS(basicanddiluted) $0.03 $0.01 $0.02 -200.0% $0.18 ($0.06) $0.24 -400.0%
Bookings $40,885 $19,248 $21,637 112.4% $112,683 $63,211 $49,472 78.3%LicenseBookings $1,388 $1,239 $149 12.0% $4,718 $5,928 ($1,210) -20.4%SaaSARRBookings $4,075 $917 $3,158 344.6% $8,758 $1,530 $7,228 472.4%
Backlog $120,351 $76,563 $43,788 57.2% $120,351 $76,563 $43,788 57.2%AnnualRecurringRevenue $48,140 $38,276 $9,864 25.8% $48,140 $38,276 $9,864 25.8%ProfessionalServicesBacklog $34,965 $24,478 $10,487 42.8% $34,965 $24,478 $10,487 42.8%
RefertoApril30,2020ManagementDiscussionandAnalysis“KeyPerformanceIndicators”
RefertoApril30,2020ManagementDiscussionandAnalysis“Non-IFRSPerformanceMeasure”
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MarketCap14.4MS/O
$460M
BrokerageCoverage
CorporateOverview
SymbolTCS DividendperYear
23¢InsiderOwnership
26%
§ Cormark Securities§ EchelonPartners§ Stifel/GMP§ LBSecurities§ NationalBank
ManagementTeam
PeterBreretonPresidentandCEO
MarkJ.BentlerChiefFinancialOfficer
BillKingChiefRevenueOfficer
Peterinitiallyledthecompany’ssoftwaredevelopment,productmanagement,salesandmarketing.In1998,hewasappointedCEOandwaslargelyresponsibleforthecompany’sInitialPublicOffering.HerepositionedTecsysinthesupplychainexecutionindustry,andleveragedthecompany’sstrengthsintechnologyandsupplychainexpertisetoachievesignificantgrowthandbecomealeaderinitsmarkets.
MarkjoinedTecsysin2018aschieffinancialofficer.Markhasmorethan20yearsofinternationalexperienceandwaspreviouslyChiefFinancialOfficerforAptosRetail.Inadditiontoplayingasignificantroleintheformationandgrowthofthecompany,heledthesuccessfultransitionofthebusiness’retailmanagemententerprisesolutionstoacloud-centricplatform.PriortohisworkatAptosRetail,heservedasVicePresident,FinanceforEpicorRetail.
BillhasledTecsys’go-to-marketstrategyandexpansionsinceJanuary2019.PriortojoiningTecsys,heheldexecutivesalesleadershippositionsatOracleintheNorthAmericanSalesorganization,mostrecentlyasvicepresidentofkeyaccountsandpreviouslyasgroupvicepresidentofNorthAmericaStorageSales.PriortoOracle,BillwaswithFujitsuforoveradecadeandheldavarietyofexecutivemanagementpositions.
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Questions&AnswersThankyou