Investor Presentation, March 1 2017
Providing organizations the
Edge
they need to succeed
while generating
Measurable results.
Looking
Forward
Statements
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
End-to-end, Integrated Supply Chain
Management Solutions
SUPPLIERS PARTNERS CUSTOMERS ENTERPRISE SYSTEMS
Collaboration
Sales Order
to Cash
Demand Procurement
Warehouse Transportation
Planning & Inventory
Point of
Use
Financial Management 3RD Party Billing
AN AL Y T I C S
EXECUTE | A D A PT | S CA LE | EXP A ND
3
Visionary
Provider of 600+ Customers
SCM
1500+ Sites
Technology
50,000+ Users
Health Systems Complex
Distribution
Wine and Spirits
Healthcare
53% 26%
Top 3PL Providers 47% 74%
of total of new acct
revenues bookings
Heavy Equipment of total of new acct
Dealers revenues bookings
4
Solid Sustaining Growth in
Complex Distribution
$4.7B
5,000,000
Global SCM Execution - All Industries, All Sizes $000s
4,500,000
4,000,000 Market in 2017
3,500,000
3,000,000 Replacement Spend
New
2,500,000
Functional Expansion
10%
2,000,000
Recurring
1,500,000
1,000,000 SCM Growth
Maintenance through 2019*
500,000
0
2011 2012 2013 2014 2015 2016 2017
*Gartner estimate 2014 5
Visual Cloud-based Mobile-
Logistics OneSprint Enabled
Visual images and
WMS system in the Delivery
instructions
cloud for faster management
delivered via RF
implementation designed for mobile
Building Market Leadership 6
through Innovation 6
Leveraging Technology and Expertise
in a New Vertical
Drivers:
Regulatory Compliance
Mergers & Acquisitions
Healthcare
Affordable Care Act
SCM
The next wave of
sector-wide Sustaining Operating Margin
process
improvement
7
Transformational Supply Chain Platform
Only truly end-to-end platform for managing all supplies across the healthcare continuum
Nursing Units
Cath Labs
Perioperative
Laboratories
Pharmacies
8
Building Our Healthcare Market Footprint
500
target
Health Systems Market Share
health systems Base Account Penetration
12%
74%
of new account 95%
Market Opportunity:
Opportunity
with Current Base:
bookings $9.6B 5%
$450M+
88%
Market Opportunity Current Share Market Opportunity Penetration into Current Share
9
SCM Impact on Healthcare Costs
SUPPLY CHAIN = 55%
15% 100%
5-15% in SCM
15%
savings
25% improves
Operating
45% Margin by 3-8%
Clinical & General Supplies Logistics & Distribution Other Total
Labour
10
The Only SCM Platform Designed for
Healthcare
Typical healthcare supply
chain has many points of
potential error
Multiple
Demand Planning
Multiple Distribution Multiple Procurement Warehouse Transportation Hospital Inventory Performance
& Forecasting Management Management Management Management Management
Sources Channels Endpoints
Direct Manufacturers End-to-end visibility
Flexibility to address needs of different departments
Enables front-line staff to maintain focus on patient care
11
Why We Win
TECSYS brings to the table a very important TECSYS visibility gives us optimal
flexibility it allows us schedule and performance at the six-sigma level with less
allocate resources more efficiently. than 5% obsolescence in our supply chain.
We anticipate between $8 and $13 million With the deployment of TECSYS SMS we
in savings. have been able to capture $14 to $16
million in revenue per year.
One of the top 5 U.S. health systems
Not-for-profit community-based health
45 acute care and specialty hospitals
system
700 physician practices and outpatient
9 hospitals, 10,000 employees
facilities
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Financials
13
Steady Revenue Growth
4-year CAGR: 14%
$80.0
$67.5 $70.0
$57.3 $60.0
Growth Drivers
$46.6 $50.0 Recurring Revenue
$43.8
$39.5 (4-year CAGR 14%)
$40.0
Proprietary products
(4-year CAGR 17%)
$30.0
$20.0
$10.0
$0.0
2012 2013 2014 2015 2016
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Recurring Revenue
In $CAD Millions
4-year CAGR: 14%
25.0
21.3
Growing Recurring
17.6 Revenue
14.8 15.4 Proprietary & Third-party
support/maintenance
Cloud & SaaS
(Millions)
37% 35% 38% 37% 37%
2012 2013 2014 2015 2016
% of total revenue 15
Healthcare Revenue Growth
In $CAD Millions
Total
80.0 Revenue
4-year CAGR
70.0 67.5
14%
60.0 57.3
50.0 46.6 Healthcare
43.8
39.5 Revenue
4-year CAGR
40.0
30.0
31.7 28%
20.0
22.9
10.0
12.9 13.4 12.1
0.0
2012 2013 2014 2015 2016
Total Revenue Healthcare Revenue
16
Backlog*
In $CAD Millions 4-year CAGR 21%
44.9 44.6
29.2
26.3 27.2
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Backlog
*Total Contract Value 17
Financial highlights
Change Q3/2017 Q3/2016 Change
Q3/2017 Q3/2016 YoY TTM TTM YoY
$ % $ % $ % $ % $ % %
Revenue 17,385 100% 15,629 100% 1,756 11% 71,144 100% 62,088 100% 15%
Cost of sales 8,470 49% 7,710 49% 760 10% 34,636 49% 31,160 50% 11%
Gross margin 8,915 51% 7,919 51% 996 13% 36,508 51% 30,928 50% 18%
Sales & Marketing 3,672 21% 3,601 23% 71 2% 15,283 21% 14,647 24% 4%
General and Administration 1,454 8% 1,387 9% 67 5% 6,352 9% 5,758 9% 10%
Research and Development 2,451 14% 2,327 15% 124 5% 9,735 14% 8,900 14% 9%
Operating expenses 7,577 44% 7,315 47% 262 4% 31,370 44% 29,305 47% 7%
Earnings from operations 1,338 8% 604 4% 734 122% 5,138 7% 1,623 3% 217%
Net earnings 888 5% 543 3% 345 64% 5,047 7% 1,274 2% 296%
EBITDA 1,941 11% 1,343 9% 598 45% 7,527 11% 4,282 7% 76%
EPS (basic) $0.07 $0.04 $0.41 $0.10
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Key Strengths
Focus Customization Expertise
Selected markets with deep Tailored solutions to fit clients Experienced workforce
pockets needs perfectly
Clear understanding of
Solutions to the right problem Seamlessly integrated sector specific issues
Differentiated technology TECSYS SMART
providing unequalled
efficiency and visibility
19
Continued
Recognition
4 TECSYS
by Gartner
customers
Visionary in top 5 - Gartners
for 5 years Top 25 Healthcare
consecutively Supply Chains
The vendor offers very differentiated capabilities, domain expertise and
customer experience in healthcare provider SCM, with more than 60% of
its bookings now in that industry. It also is pursuing a notably unique vision
for Omni-Channel concepts applied to pharmacy SCM. The core WMS
requirements in these environments are not dramatically different from
other industries; however, TECSYS has distinguished itself by adding C. Dwight Klappich
specialized capabilities, such as integrating WMS upstream into hospitals
Research VP, Supply Chain
for automatic replenishment.
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Near-term
Growth Healthcare
Strategies Additional POU solutions
Expand into pharmacy
Base
Accounts
Expand into home care
Grow revenue as a
percentage of total
revenue
Healthcare
Complex Distribution
Complex
Distribution
Base Accounts Leverage new leadership M&A
with dedicated sales team Strategic tuck-in
Revitalize and simplify acquisitions
Mergers & Acquisitions
products
21
Tracking Our Progress
Continue Growing Enhanced
40%
8-12% Total Operating Target Annualized
Topline Growth
Bookings Leverage Recurring
Revenue
22
Committed Leadership
Peter Brereton Co-founder 10+ years
President and CEO
Pedro Patrao
Sr VP Global Services Former SAP, Head of North America Enablement Services
Catherine Sigmar
VP Strategic Initiatives Former Baan, Senior Vice President
Berty Ho
CFO
10+
Greg MacNeill
SVP Global Sales
years together
Robert Colosino with TECSYS
VP Marketing and Business Dev
Patricia Barry
VP Human Resources
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Corporate Overview
$131M Symbol
18 42%
Market Cap
12.3M S/O
TCS Dividend per Year Insider Ownership
Beacon Securities EdgePoint
Brokerage Cantor Fitzgerald Canada
Cormark Securities
Institutional Fiera
FTQ
Coverage LB Securities Holders Pembroke
Echelon Partners Stableview
24
Thank You Q&A Period
