Slides
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Q3 FY26 Enghouse Corporate Presentation
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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. Forward-Looking Statements Disclaimer Market & 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. Disclaimer
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Company Enghouse Interactive - IMG Profitable growthRevenue ~1,800 employees HQ in Canada, offices in 25+ countries Enghouse Networks - AMG Enghouse Transportation & Public Safety - AMG Dual Growth Revenue (organic & acquisitions) Toronto Stock Exchange TSX:ENGH
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Strategy • Two-pronged strategy to grow earnings (internal growth and acquisitions) • The Company is organized around two business segments delivering solutions for remote work, visual computing and communication networks: ➢ Interactive Management Group (“IMG”) ▪ Customer interaction solutions (including video collaboration) ▪ Specialty Product Group (including solutions for marketing communications, call accounting, device asset management and telecom expense management) ➢ 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
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Interactive Portfolio Solutions that transforms customer experience OMNI-CHANNEL CONTACT CENTER Mid-market Contact Center Enterprise Contact Center Enghouse CCaaS AI Powered Social Media Video Enabled Contact Center CALL RECEPTION/CALL HANDLING Mid-market Attendant Console Enterprise Attendant Console Cloud Attendant Console Directory Integration VIDEO INTERACTION Healthcare Financial Institutions Legal and Court Enterprise Video Collaboration Technology Companies Enterprise Video Management QUALITY MANAGEMENT Agent Optimization Interaction Recording and Analysis AI Powered Business Insights Augmented Supervisor Call Billing and Reporting TELEPHONY, VIDEO, CRM INTEGRATION CRM Integration Telephony Application Enablement Video Application Enablement VoiceXML Application Test CUSTOMER SELF-SERVICE AI Powered Voice and Chat Bots Mobile Self-service Platform Knowledge Management AI Chat-bots SPECIALTY PRODUCT GROUP Marketing Communications Mobile Device Management Call Accounting Telecom Expense Management
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Network Portfolio Technology solutions that enable telecom operators to build, manage, monitor and monetize their communication network BUSINESS SUPPORT SYSTEMS Billing as a Service MVNO Billing Solutions IoT Monetization & Billing Wholesale Revenue Management OPERATION SUPPORT SYSTEMS e.AI Geographic Information Systems Network Inventory & Planning Performance Management Fault Management Network Testing NETWORK INFRASTRUCTURE Mobile Value-Added Services Intelligent Routing Session Border Controller Stack, Signalling and STP Media Gateways Media Processing Control Switch DIGITAL TRANSFORMATION TV as a Service Video Solutions Embedded Browsers
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Transportation & Public Safety Portfolio Software solutions for transit, supply chain and public safety companies PUBLIC SAFETY Emergency Control & Dispatch (1st responders) Non-Emergency Patient Transport FLEET MANAGEMENT Logistics Management Order Tracking Telematics Container Tracking and Monitoring TRANSIT OPERATIONS AND PAYMENTS Fixed Route & Demand Response Scheduling & Dispatch Driver Management e-Ticketing Automated Fare Collection COMMUNICATIONS Fixed Route Demand Response Operator & Fare IVR
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Annual Results
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Fiscal Year Results (Ending Oct 31) 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 FY 21 FY 22 FY 23 FY 24 FY 25 $467 $428 $454 $503 $499 TOTAL REVENUE ($millions) FY 21 FY 22 FY 23 FY 24 FY 25 $3.02 $2.53 $2.42 $2.60 $2.31 ADJUSTED EBITDA PER SHARE FY 21 FY 22 FY 23 FY 24 FY 25 $279 $258 $298 $347 $348 SaaS & MAINTENANCE SERVICES ($millions) FY 21¹ FY 22 FY 23 FY 24 FY 25 $0.59 $0.69 $0.81 $0.96 $1.12 $1.50 DIVIDEND PER SHARE special dividend
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Q3 FY26
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Q3 FY26 Q3 FY26 Q3 FY25 % Change YTD FY 26 YTD FY25 % Change Revenue $117.6m $125.6m -6.4% $352.0m $374.4m -6.0% Revenue - IMG $64.6m $69.6m -7.2% $194.7m $217.0m -10.2% Revenue - AMG $53.0m $56.0m -5.3% $157.2m $157.4m -0.1% SaaS and Maintenance revenue $81.7m $87.8m -6.9% $245.4m $261.9m -6.3% Adjusted EBITDA¹ $30.8m $32.3m -4.5% $88.4m $93.9m -5.9% Adjusted EBITDA¹ per diluted share $0.57 $0.58 -1.7% $1.62 $1.70 -4.7% Dividend -per common share, based on date of record $0.31 $0.30 3.3% $0.91 $0.82 11.0% Cash spent on acquisitions -net of cash acquired & holdbacks $2.2m $0.0m N/A $9.2m $33.4m -72.5% Cash & Investments balance -end of period $267.8m $271.6m -1.4% $267.8m $271.6m -1.4% Operating cash flow -before working capital adj & income tax paid $28.4m $30.9m -7.9% $88.5m $94.2m -6.0% Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and ROU assets and special charges for restructuring costs.
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Quarterly Results $0 $20 $40 $60 $80 $100 $120 $140 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 23 FY 24 FY 25 FY 26 TOTAL REVENUE ($ millions) $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 23 FY 24 FY 25 FY 26 SaaS & MAINTENANCE SERVICES $ millions $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 23 FY 24 FY 25 FY 26 ADJUSTED EBITDA PER SHARE $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 23 FY 24 FY 25 FY 26 REGULAR DIVIDEND PER SHARE
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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 - 7 years
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Recent Acquisitions TRAFI Q2 FY 25 LITHUANIA SIXBELL TELCO Q1 FY 26 CHILE MEDIASITE Q2 FY 24 USA MARGENTO Q2 FY 25 SLOVENIA SEACHANGE Q3 FY 24 USA ACULAB Q1 FY 25 ENGLAND LIFESIZE Q4 FY 23 USA
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Q&A
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16 Thank You!