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Extending our Reach Investor Presentation, March 1, 2018

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Page 1: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Extending

our Reach

Investor Presentation, March 1, 2018

Page 2: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Looking Forward

Statements

2

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.

Page 3: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Collaboration

End-to-end, Integrated Supply Chain

Management Solutions

3

Financial Management 3RD Party Billing

A N A L Y T I C S

E X E C U T E | A D A P T | S C A L E | E X P A N D

CUSTOMERSPARTNERSSUPPLIERS ENTERPRISE SYSTEMS

Sales Orderto Cash

Point

of Use

TransportationWarehouseProcurement& Inventory

Demand Planning

Page 4: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

HealthcareComplex

Distribution

Top 3PL ProvidersHeavy Equipment Dealers Wine and SpiritsHealth Systems

Visionary Provider of SCM Technology

4

of total

revenue

55%

of new acct

bookings

44%

of total

revenue

45%

of new acct

bookings

56%

600+customers

1500+sites

50,000+users

((

Page 5: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Solid Sustaining Growth in

Complex Distribution

5

Source: International Warehouse Logistics Association (IWLA), Warehousing Education and Research Council (WERC), American Production and Inventory

Control Society (APICS), European Logistics Association (ELA), Company Websites, Expert Interviews, White Papers, and MarketsandMarkets Analysis

14% SCM Growth

through 2019*

$1.5BMarket in 2017

Page 6: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

6

Visual LogisticsVisual images and

instructions delivered

via RF

Cloud-based

OneSprintWMS system in the

cloud for faster

implementation

Mobile-EnabledDelivery management

designed for mobile

Building Market Leadership

through Innovation6

Page 7: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Leveraging Technology

and Expertise

in a New Vertical Regulatory Compliance

Mergers & Acquisitions

Healthcare SCMThe next wave of

sector-wide process

improvement

Drivers:

Affordable Care Act

Sustaining Operating Margin

7

Page 8: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

SCM Impact on Healthcare Costs

8

5-15% in SCM

savings improves

Operating Margin

by 3-8%

Page 9: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

94%6%

Market Opportunity Current Share

Market Opportunity:

$9.6B

88%

12%

Market Opportunity

Extending our Reach in Health Systems

Health Systems

Market Share

Opportunity

with Current Base:

$590M+

Base Account

Penetration

500Target Health Systems

46%of Total Bookings

9

Page 10: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

TECSYS and UNC

2,675 Staffed Beds 56 Clinics

12 Hospitals 249 Operating Rooms

3.5 Billion in Total Revenue

9.5 Billion in Patient Revenue Signed a LOI to merge with

Carolinas HealthCare System;

the combined entities operate

over 50 hospitals

10

Page 11: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

TECSYS visibility gives us optimal performance at the six-sigma level with less than 5%

obsolescence in our supply chain.

“With the deployment of TECSYS SMS we have

been able to capture $14 to $16 million in revenue per year.”

• Not-for-profit community-based

health system

• 9 hospitals, 10,000 employees

TECSYS brings to the table a very important flexibility… it allows us schedule and allocate

resources more efficiently.”

“We anticipate between $8 and $13 million in

savings.”

Why We Win

11

• One of the top 5 U.S. health systems

• 45 acute care and specialty hospitals

• 700 physician practices and outpatient

facilities

Page 12: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Steady Revenue Growth

12

In $CAD Millions

Growth Drivers• Recurring revenue

(4-year CAGR 13%)

• Healthcare revenue

(4-year CAGR 23%)

$16.2 $17.1$19.3

$23.3$26.3

37.1% 36.8%33.7% 34.5%

38.4%

$43.8$46.6

$57.3

$67.5 $68.4

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

2013 2014 2015 2016 2017

Total Revenue Recurring Revenue Recurring revenue %

4-year CAGR 12%

Recurring revenue represents cloud, maintenance and subscription revenue

Page 13: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Predictable Professional Services Revenue

13

* Base account revenue for PS divided by total PS revenue

Professional

Services Revenue

Proportion of PS revenue from

Base Account in the last 5 years

83%*

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017

New Base

Page 14: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Healthcare Revenue Growth

14

In $CAD Millions

Page 15: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Financial highlights

15

Page 16: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Key Strengths

16

• Selected markets with deep

pockets

• Solutions to the right problem

• Differentiated technologyproviding unequalled

efficiency and visibility

• Tailored solutions to fit clients’

needs perfectly

• Seamlessly integrated

• Experienced workforce

• Clear understanding of

sector specific issues

• TECSYS SMART™

CustomizationFocus Expertise

Page 17: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

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 specialized

capabilities, such as integrating WMS upstream

into hospitals for automatic replenishment.”

Continued

Recognition

by Gartner

C. Dwight Klappich

Research VP, Supply Chain

Visionaryfor 5 years

consecutively

4 TECSYS

customersin top 5 - Gartner’s

Top 25 Healthcare

Supply Chains

17

Page 18: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Near-term Growth Strategies

18

• Additional POU solutions

• Expand into pharmacy

• Expand into home care

• Leverage new leadership with dedicated

sales team

• Revitalize and simplify products

Healthcare

Complex

Distribution

• Grow revenue as a percentage of total

revenue

• Strategic tuck-in acquisitions

Base

Accounts

Mergers &

Acquisitions

Page 19: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

40%Target Annualized

Recurring Revenue

Tracking Our Progress

19

8% -12%Topline Growth

Continue Growing

Total

Bookings

Enhanced

Operating

Leverage

Page 20: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Corporate Overview

20

$223MMarket Cap

13.1M S/O

Symbol

TCS20¢Dividend per Year

32%Insider Ownership

Brokerage Coverage

Institutional Holders

EdgePoint

Fiera

FTQ

Mawer

Pembroke

Stableview

Beacon Securities

Cormark Securities

GMP

IA Securities

LB Securities

Echelon Partners

Page 21: PowerPoint Presentation - Slide 1 - Home | TECSYS Inc. statements in this presentation relating to ... 600+ customers 1500+ sites 50,000+ ... experience in healthcare provider SCM,

Question & Answer

21

Thank You