1

Top Image Systems

Investors Presentation

Nasdaq: TISA

Brendan Reidy, CEO

Yossi Dagan, CFO

November 2016

Safe Harbor Statement

• The information in this presentation is confidential and proprietary to Top Image Systems Ltd. ("TIS") and may not be disclosed without the permission of TIS. This presentation is not subject to your license agreement or any other service or subscription agreement with TIS. TIS has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and TIS' strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by TIS at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. TIS assumes no responsibility for errors or omissions in this document, except if such damages were caused by TIS intentionally or grossly negligent.

• All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Founded

1991

• Content Process

Automation

• Financial Process

Automation

• Banking Process

Automation

1996

Key partnerships

• End-to-end Accounts

Payable Automation

• Industry leading

mobile capture

platform

• Highly secure cloud

application platform

Core Competencies

AMBITION

Deliver repeatable end to end business

process automation solutions with flexible

deployment options on premise, cloud and

mobile.

Q3 2016 Highlights• Recruited U.S enterprise software industry veteran Brendan Reidy to the position of CEO in August 2016;

• Quarterly revenues were $7.7 million, compared to $8.5 million in the second quarter of 2016;

• Adjusted EBITDA* was $234,000, compared to ($162,000) in the third quarter of 2015;

• Quarterly recurring revenues were $ 4.9 million, representing 64% of total revenue in the current quarter;

• Quarterly expenses were $8.2 million, a decrease of $1.7 million;

• Signed an agreement worth over $525,000 for a content process automation (CPA) forms processing

project in the government sector in Latin America that was deployed with a key strategic partner;

• Signed an agreement with a total contract value of over US$450,000 to deploy eFLOW for a new project in

the U.S. public sector;

• Signed a $420,000 financial process automation (FPA) contract with a leading energy supplier that will

extend the use of eFLOW® AP for SAP globally, including to North, Central and South America;

• Upsold an FPA solution to an existing customer in the European power sector;

• Signed a $350,000 CPA agreement for a government project in Asia Pacific that was deployed with an

affiliate of a key strategic partner;

• Announced issue of a U.S. patent to TIS protecting advanced data classification technologies;

• Named as a Vendor in Gartner’s “IT Market Clock for Mobile Imaging for Banks, 2016” and in Gartner’s

“Hype Cycle for Digital Banking Transformation 2016”.

5

Brendan Reidy Recruited as Chief Executive Officer

• Prior to joining TIS, served as President, COO and CTO of XRS Corp.

and before that held the position of Chairman, CEO and President of

Clarus Systems – in both cases grew value of SaaS model companies;

• In parallel served as a board member of eGistics for ten years prior

to its acquisition by Top Image Systems;

• As a Venture Partner at Trident Capital, Inc. served on boards of

and held full-time positions with Trident portfolio companies;

• Before that held numerous senior executive positions in the telecommunications industry,

including at US WEST. Prior to that position, served in senior management positions at Litton

Integrated Automation, the Bank of Oklahoma and at Software Alliance Corporation;

• Mr. Reidy holds an M.B.A. from the Wharton School of the University of Pennsylvania and a

B.A. from Stanford University.6

“My mandate is to institute with a high sense of urgency the measures necessary to better capitalize on

our market potential; improve our execution, accelerate growth and return value to our shareholders.”

Our Portfolio Strategy

CORE BUSINESS CORE BUSINESS

Our Portfolio Strategy

CORE BUSINESS

BANKING PROCESS AUTOMATIONCONTENT PROCESS AUTOMATION

CHANNEL

Extend Market Reach

Digital Mailroom

Forms Processing

Customer Response Management

Remittance Processing

Account Servicing

Mobile Banking

CHANNEL

Extend Market Reach

Our Portfolio Strategy

CORE BUSINESS

BANKING PROCESS AUTOMATIONCONTENT PROCESS AUTOMATION

CHANNEL

Extend Market Reach

FINANCIAL PROCESS AUTOMATION

Target under served mid market

Digital Mailroom

Forms Processing

Customer Response Management

Remittance Processing

Account Servicing

Mobile Banking

FINANCIAL PROCESS AUTOMATION

Target under served mid market

eFLOW Platform

Cloud ERP Opportunity

Cloud Adoption

47% of mid market companies with

less than $1 billion in revenues plan

to move their core ERP systems to

the cloud within the next 5 years;

Source: Paystream AdvisorsSource: Gartner Research

AP Automation Adoption

Accounts Payable Automation is an

under served market opportunity with

only 39% of SMBs with deployed AP

workflow automation

Excerpt from Figure 3: Cloud ERP

Adoption Plans by Organization Size

TIS Cited as a “Leader” in the Capture Market

Competitive Differentiators

Customer success with our AP solution• Bosch SSC * automated recognition of invoice data * 160 supplier company codes with specific

requirements * over 300K invoices (avg 2.5 pages) monthly * invoices in German, English, Chinese & other languages * high field recognition rate > 80%, straight through processing of up to 40% * posting in SAP

• ENEL power * 17 ENEL subsidiaries / companies * 7000 suppliers / agents * 7-8 million invoices * scan, EDI, Batch, email, fax * multiple SAP systems & versions (4.6c, 4.7 e ECC 6.0) * 2013 internal review - ROI of 385%, NPV €14m

• CNH America, LLC, subsidiary of Fiat Industrial S.p.A, manufactures agricultural and construction equipment * 30,000 employees worldwide * 11,300 dealers in approximately 170 countries * 9 plants supported * 15 AP clerks working on SAP * 53,000 invoices per month * 11,000 EDI items * 70% field recognition (before initiation of system tuning) * over 70% of matching invoices are touched only once in eFLOW and posted directly to SAP * 75% of invoices posted automatically; EDI visualization functionality for erroneous EDI.

Recent Wins and Project Announcements

• Financial Process Automation / Accounts Payable

– A $420,000 financial process automation (FPA) contract signed with a leading energy supplier that will

extend the use of the new end-to-end eFLOW® AP for SAP globally, including to North, Central and South

America. The supplier is deploying the new Extract, Control and Resolve modules to achieve single point

visibility into and analysis of accounts payable processes from their familiar SAP interface;

– eFLOW AP for SAP upsell to an existing power generation customer in the European energy sector

– Closely monitoring successful continued deployment of five Q2 early adopters of eFLOW AP for SAP.

• eFLOW Core Capture Wins

– A large-scale, time-sensitive government content process automation (CPA) forms processing project in

Latin America worth over $525,000 to be deployed in 2017 with a key strategic partner;

– A CPA forms processing project in the U.S. public sector with a total contract value of over US$450,000 to

classify and extract data from over a hundred document types with volumes of up to 40 million documents

per year;

– Deployed a government CPA forms processing project in Asia Pacific to capture and process several

million documents within tight time constraints with an affiliate of a key strategic partner for a total

contract value of some $350,000;

• Mobile Wins

– A mobile check deposit win with financial services partner Alogent at a leading bank in North America.

Customer Distribution by Region

2014 Revenue by Region(as a % of total)

EMEA APAC AMERICAS

2015 Revenue by Region(as a % of total)

EMEA APAC AMERICAS

YTD 2016 Revenue by Region(as a % of total)

EMEA APAC AMERICAS

Annual Revenuesin USD millions

21.8

28.7 31.3 29.1

35.9 33.8

Annual Revenue

21.8

28.7 31.3 29.1

36.6 37.3

Annual Revenue in Constant Currency

GAAP P&L YTD 2016in USD thousands

17

Q1-16

Actual

Q2-16

Actual

Q3-16

Actual

YTD 2016

Actual

Revenues 8,457 8,486 7,681 24,624

Cost of Revenues 4,250 4,212 4,059 12,521

Gross Profit 4,207 4,274 3,622 12,103

% of Revenue 50% 50% 47% 49%

Expenses

Research & Development 1,291 1,024 1,241 3,556

Sales & Marketing 2,163 1,933 1,650 5,746

General & Administrative 1,489 1,410 1,285 4,184

Restructuring 1,183 3 - 1,186

Total Operating Costs 6,126 4,370 4,176 14,672

Operating Income (Loss) (1,919) (96) (554) (2,569)

Financing Expenses (Net) (78) (196) (169) (443)

Other Income (Net) 5 1 - 6

Income (Loss) before taxes on income (1,992) (291) (723) (3,006)

Tax Expenses (Income) 123 (117) (427) (421)

Net Income (Loss) (2,115) (174) (296) (2,585)

Net Income (attributable to non-

controlling interest) (2) (6) (3) (11)

Net Income (Loss) (2,117) (180) (299) (2,596)

Adjusted EBITDA 23 667 234 924

Non GAAP Net Income (347) 414 325 392

Operating Lossin USD thousands

18

Q3 2016

Actual

YTD 2016

Actual

Operating Loss (554) (2,569)

Depreciation 167 517

Amortization 356 1,071

Stock-based Compensation Expenses 265 719

Restructuring Charge - 1,186

Total EBITDA 234 924

Quarterly EBITDA Expensesin USD millions

19

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

6.5 7.0

7.7 8.3 8.4

6.6 7.0 7.7

8.7 7.8

6.6 6.6

12.2

9.1

7.4 6.9

8.0

8.8 9.1

Q1 Q2 Q3 Q4

20

Recurring Revenues in USD millions

1.90 1.85 1.95

2.10 1.91

2.16 2.23 2.40

2.61 2.78

5.04

5.38

4.80

5.20

4.69 4.75

5.03 4.85 4.91

25% 23% 23%

29% 28%

34%

28% 30%32%

34%

53% 54%58%

52%52%

72%

60%57%

64%

-30%

-10%

10%

30%

50%

70%

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Total Revenue % of Recurring Revenues out of Total Revenue

Balance Sheetin USD millions

* Company obtained a line of credit of $3m from a leading bank in Israel

** Excluding deferred revenues

September, 30

2016

December, 31

2015

Total Current Assets $ 13,982 $ 12,946

Total Current Liabilities** $ 8,730 $ 6,039

Net Assets $ 5,252 $ 6,907

Period Ending

ManagementMr. Schrader moved from the position of CEO to President in 2016 upon recruitment of U.S.-based

CEO Brendan Reidy. Before his appointment as CEO in 2014, Mr. Schrader served as CTO/COO and

before that as General Manager for EMEA and Senior VP of Global Solutions. Mr. Schrader has been

with TIS since 1999 and rapidly progressed within the company, serving as a software engineer, a

technical team leader, an international strategic project manager and as Director of Engineering for

Europe. Mr. Schrader managed TIS’s German operations since 2004, where he successfully

established a solid operation with skilled sales and engineering teams able to respond to the demands

of a highly competitive market and develop superior standardized applications. Prior to joining TIS, Mr.

Schrader was a software engineer at Siemens and owned a Document Management consulting and

development business. Mr. Schrader holds a degree in Business Engineering / Administration from the

Bochum University of Applied Sciences and is an Associate Engineer of Siemens Technical College in

Erlangen.

Mr. Dagan was appointed in August 2015 to the position of CFO. He brings over 13 years of

experience working with private and publicly traded technology companies. Before joining TIS, Mr.

Dagan served as VP Finance of Kenshoo, a SAAS company, that manages and optimizes online

advertising, where he managed the finance department. Prior to Kenshoo, he held the role of

Corporate Controller at Imperva Inc. (IMPV) a leading global provider of data security, where he

managed the finance department and in 2011 led the company to a successful IPO at the NYSE.

Prior to Imperva, Mr. Dagan was employed as a manager in the high-tech group at

PricewaterhouseCoopers. He is a certified CPA and holds a B.A. in Business and Accounting from

the College of Management. Yossi Dagan

CFO

Michael

Schrader

President

Management

Mr. Pery joined TIS in 2015 with 25+ years of executive experience in the high technology sector. He has

vast industry experience managing global marketing teams as CMO for Hummingbird (now Open Text) and

Kofax (now Lexmark), with a focus on document process automation and enterprise content management

solutions. Most recently Mr. Pery held the role of CMO at ReadSoft (now Lexmark), where he led a global

marketing initiative to drive continuous improvements to demand generation activities with increased

emphasis on digital content and social media marketing investments that resulted in increased marketing

program effectiveness. He holds a Masters of Law degree with Distinction from Northwestern University and

a Bachelor of Arts with Honors in History and Political Science from Loyola, Montreal.

Appointed in May 2015 to the position of CTO, Mr. Nelk has held executive positions at various global

enterprise software leaders. Mr. Nelk is responsible for the company’s global product strategy and future

roadmap, managing all TIS' product management, strategy and R&D teams. Before joining TIS, Mr. Nelk

was responsible for innovation in Financial Process Automation at ReadSoft AB. Prior to that position, for

six years Nelk served as CEO of the ReadSoft SAP Solutions Lab, where he oversaw the development

and worldwide rollout of ReadSoft’s SAP solutions. Mr. Nelk joined ReadSoft in 2006 upon the acquisition

of Ebydos AG, a company he founded and where he was responsible for Invoice Cockpit and Process

Director, the most widely used Accounts Payable and Financial Process Automation solutions for SAP.

Prior to the founding of Ebydos, Mr. Nelk was employed by SAP AG. Mr. Nelk holds an M.Sc. in

Mathematics from the University of Aachen. Carsten Nelk

CTO

Andrew Pery

CMO

Mr. Fresneda was appointed President, TIS Americas in 2015 to substantially expand U.S. business operations

and participate in the Global Executive Management team. Prior to joining TIS, Mr. Fresneda served as SVP,

Americas & Asia Pacific for ReadSoft AB, where he drove significant growth. After the acquisition of ReadSoft

by Lexmark in 2014, Mr. Fresneda took responsibility for Worldwide Channel Sales. Mr. Fresneda has

demonstrated his management and leadership skills, starting in 2001 by building up the North American sales

and delivery teams, expanding U.S. brand presence and dramatically growing U.S. market share. Under his

leadership, ReadSoft North America was the fastest growing subsidiary, eventually becoming the largest

subsidiary of the global enterprise, leading in total revenues and profits, number of personnel, and profit growth.

Mr. Fresneda was then asked to help South America and Asia Pacific replicate the success achieved in North

America. He holds degrees in Marketing, Accounting and Business Administration from Southeastern Louisiana

University.

Robert Fresneda

President

Americas

Management

Kristian Niklasson

Chief Services

Officer

Mr. Kristian Niklasson was appointed CSO in early 2016 to take responsibility for TIS’ worldwide

professional services, customer support and IT and cloud operations. Mr. Niklasson spent many years

managing services organizations in the engineering consulting and document automation industries.

Prior to this position, he held the position of Managing Director for Etteplan Stockholm and Director of

Technical Information for Etteplan Industry; VP Global Services for ReadSoft and prior to that Program

Manager for Xerox Professional Services. Mr. Niklasson Earned an MSC in Engineering and

Mathematics from the Swedish KTH Royal Institute of Technology.

Contacts

Nasdaq: TISA

Company Contacts

Brendan Reidy, CEO

Yossi Dagan, CFO

Top Image Systems Ltd., Plano, Tx. 75024

Tel: 1 (214) 256-4600 | www.topimagesystems.com

Investor Relations

Brett Maas, Managing Partner

Hayden IR

Tel 646.536.7331 | www.haydenir.com

THANK YOU