Tecsys Inc. · TSX:TCS
Tecsys — Investor Presentation (September 2017)
28 slides from Tecsys's investor presentation, September 2017
Slide 1: Extending our Reach
Extending our Reach Investor Presentation, September 2017
Slide 2: Looking Forward Statements
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 uncertaintie
Slide 3: End-to-end, Integrated Supply Chain Management Solutions
End-to-end, Integrated Supply Chain Management Solutions SUPPLIERS PARTNERS CUSTOMERS ENTERPRISE SYSTEMS Collaboration Sales Order to Cash Procurement Demand Planning Warehouse Transportation & Inventory Point of Use Financial Management 3RD Party Billing ANALYTICS EXECUTE | ADAPT | SCALE | EXPAND 3
Slide 4: Healthcare and Complex Distribution
( 600+ Complex Healthcare ( customers Distribution 1500+ sites 56% 45% 44% 55% of new acct of total 50,000+ of new acct of total users bookings revenue bookings revenue Visionary Provider of SCM Technology Heavy Equipment Dealers Health Systems Top 3PL Providers Wine and Spirits 4
Slide 5: Solid Sustaining Growth in Complex Distribution
Solid Sustaining Growth in Complex Distribution 5,000,000 Global SCM Execution - All Industries, All Sizes 4,500,000 4,000,000 $000s $4.7B Market in 2017 3,500,000 Replacement 3,000,000 New Spend 2,500,000 Functional Expansion 10% 2,000,000 Recurring 1,500,000 1,000,000 SCM Growth Maintenance throug
Slide 6: Building Market Leadership through Innovation
Visual Logistics Cloud-based Mobile-Enabled Visual images and OneSprint Delivery management instructions delivered WMS system in the designed for mobile via RF cloud for faster implementation Building Market Leadership 6 through Innovation
Slide 7: Leveraging Technology and Expertise in a New Vertical
Leveraging Technology and Expertise Drivers: in a New Vertical Regulatory Compliance Mergers & Acquisitions Affordable Care Act Sustaining Operating Margin Healthcare SCM The next wave of sector-wide process improvement
Slide 8: Transformational Supply Chain Platform
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
Slide 9: Extending our Reach in Health Systems
Extending our Reach in Health Systems Health Systems Market Share Base Account Penetration 12% 500 Opportunity Target Health Systems Market Opportunity: 94% with Current Base: $9.6B 6% $590M+ 46% 88% of Total Bookings Market Opportunity Current Share Market Opportunity
Slide 10: SCM Impact on Healthcare Costs
SCM Impact on Healthcare Costs SUPPLY CHAIN = 55% 15% 100% 15% 25% 45% 5-15% in SCM savings improves Operating Margin by 3-8% Clinical & General Supplies Logistics & Other Total Labour Distribution 10
Slide 11: The Only SCM Platform Designed for Healthcare
The Only SCM Platform Designed for Healthcare Typical healthcare supply chain has many points of potential error Multiple Multiple Distribution Multiple Demand Planning Procurement Warehouse Transportation Hospital Inventory Performance & Forecasting Management Management Management Management Manag
Slide 12: Extending RFID Replenishment to Broader Distribution Industries
smartpanel Replenishment Status LEDs Pending (replenishment requested) Processing(replenishment underway) Backorder Extending RFID Replenishment to Broader Distribution Industries
Slide 13: Why We Win
Why We Win TECSYS brings to the table a very important TECSYS visibility gives us optimal performance flexibility… it allows us schedule and allocate at the six-sigma level with less than 5% resources more efficiently.” obsolescence in our supply chain. “We anticipate between $8 and $13 million in “
Slide 14: Financials
Financials 14
Slide 15: Quarterly Revenue
Quarterly Revenue In $CAD Millions $25.0 $21.1 $20.0 $18.4 $17.4 $15.8 $15.8 $15.6 $16.1 $16.5 $16.5 $15.0 $14.9 $15.0 $13.5 $12.5 $13.0 $11.5 $11.7 $11.8 $10.7 $10.4 $11.1 $10.6 $10.0 $5.0 $0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 2018 Quarterly Re
Slide 16: Steady Revenue Growth
Steady Revenue Growth In $CAD Millions 4-year CAGR 12% Growth Drivers $68.4 • Recurring revenue $67.5 (4-year CAGR 13%) $57.3 • Healthcare revenue (4-year CAGR 23%) $46.6 $43.8 2013 2014 2015 2016 2017 16
Slide 17: Recurring Revenue
Recurring Revenue In $CAD Millions 4-year CAGR 13% Recurring Revenue Recurring revenue % $30.0 2017 Recurring Revenue 44.0% 4-year CAGR $25.0 13% $26.3 42.0% $23.3 $20.0 $19.3 40.0% $15.0 $17.1 $16.2 38.4% 38.0% 37.1% 36.8% $10.0 36.0% $5.0 34.5% 34.0% 33.7% $0.0 32.0% 2013 2014 2015 2016 2017 17
Slide 18: Predictable Professional Services Revenue
Predictable Professional Services Revenue 100% 90% Professional 80% Services Revenue 70% Proportion of PS revenue from 60% Base Account in the last 5 years 50% 40% 30% 83%* 20% 10% 0% 2013 2014 2015 2016 2017 New Base * Base account revenue for PS divided by total PS revenue 18
Slide 19: Healthcare Revenue Growth
Healthcare Revenue Growth In $CAD Millions Total Revenue 4-year CAGR 12% $67.5 $68.4 $57.3 $43.8 $46.6 Healthcare Revenue 4-year CAGR $31.7 23% $30.5 $22.9 $13.4 $12.1 2013 2014 2015 2016 2017 Total Revenue Healthcare Revenue 19
Slide 20: Backlog
Backlog* In $CAD Millions 4-year CAGR 14% $46.1 $44.9 $44.6 $29.2 $27.3 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 *Total Contract Value 20
Slide 21: Financial highlights
Financial highlights Q1, 2018 Q1, 2017 Δ YoY Q1, 2018 TTM Q1/2017 TTM Δ YoY $ % $ % $ % $ % $ % $ % Revenue $16,511 100.0% $16,097 100.0% $414 2.6% $68,861 100.0% $68,632 100.0% $229 0.3% Cost of sales $8,759 53.0% $8,491 52.7% $268 3.2% $34,519 50.1% $33,621 49.0% $898 2.7% Gross margin $7,752 47.0
Slide 22: TECSYS and UNC Hospitals
TECSYS and UNC 12 Hospitals 249 Operating Rooms 9.5 Billion in Patient Revenue Signed a LOI to merge with Carolinas HealthCare System; the combined entities operate 2,675 Staffed Beds 56 Clinics 3.5 Billion in Total Revenue over 50 hospitals
Slide 23: Key Strengths
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
Slide 24: Continued Recognition by Gartner
Continued The vendor offers very differentiated Recognition capabilities, domain expertise and customer experience in healthcare provider SCM, with more than 60% of its bookings now in that by Gartner industry. It also is pursuing a notably unique vision for Omni-Channel concepts applied to pharmacy
Slide 25: Extending our Reach with Partners
Extending our Reach with Partners Implementation Service Providers Avalon Systems RiseNow TECSYS Resellers Integrators Ryder System Sequoia Technology Providers Terso 25
Slide 26: Near-term Growth Strategies
Near-term Growth Strategies Healthcare • Additional POU solutions • Expand into pharmacy • Expand into home care Complex • Leverage new leadership with dedicated Distribution sales team • Revitalize and simplify products Base • Grow revenue as a percentage of total Accounts revenue Mergers & • Strat
Slide 27: Tracking Our Progress
Tracking Our Progress Continue Growing Enhanced 8% -12% 40% Topline Growth Total Operating Target Annualized Bookings Leverage Recurring Revenue 27
Slide 28: Question & Answer Thank You
Question & Answer Thank You 28