Tecsys Inc. · TSX:TCS
Tecsys — Investor Presentation (April 2016)
28 slides from Tecsys's investor presentation, April 2016
Slide 1: Innovation at the Heart of Supply Chains
SUPERIOR PLATFORM FOR A NEW ERA OF GROWTH INNOVATION AT THE HEART OF SUPPLY CHAINS Investor Presentation
Slide 2: Safe Harbor
Safe Harbor 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 bu
Slide 3: TECSYS Supply Chain Platform
TECSYS Supply Chain Platform End-to-end, Integrated Supply Chain Management Solutions Analytics Demand Order & Planning & Inventory Distributed & Transport Procurement Management Warehouse Management Virtual Inventory Management Financial Management 3rd Party Billing Collaboration - Customers , part
Slide 4: Visionary provider of SCM technology
Visionary provider of SCM technology 600+CUSTOMERS CUSTOMERS 1,500+ SITES HEALTH SH EALTH SYSTEMS Complex Distribution YSTEMS WINE AND TOP 3PL DOMINANT MARKETDSOMINANT HARE MARKET SHARE DEALERS SPIRITS PROVIDERS 4
Slide 5: Continued Recognition by Gartner
Continued Recognition by Gartner Positioned in the “Visionaries” Quadrant during 5 consecutive years 5
Slide 6: Market Opportunity - Healthcare
Market Opportunity - Healthcare 5,686 Hospitals 300 Target Health Systems = 10 health systems = Inroads = 10 hospitals = Inroads Average Deal Size: $0.4M Average Deal Size: $1.5M 6
Slide 7: Market Opportunity – Complex Distribution
Market Opportunity – Complex Distribution $3B Market in 2014 10% SCM Growth through 2019* *Gartner estimate 2014 7
Slide 8: Industry drivers
Industry drivers HEALTHCARE COMPLEX DISTRIBUTION Revenue Model Change Omni-Channel Environment Multiple Warehouses • Multiple SKUs • Need for lower cost structure Multiple Formats Technology and the Regulations Internet of Things HIPAA • DSCSA • UDI From Proprietary to Proven • Reliable and Scalable
Slide 9: Why we win
Why we win 1FOCUS 2 CUSTOMIZATION 3 EXPERTISE • Selected markets with deep • Tailored solutions to fit clients • Experienced workforce pockets needs perfectly • Clear understanding of sector • Solutions to the right problem • Seamlessly integrated specific issues • Differentiated technology • TECSYS
Slide 10: FY 2015 sources of revenue
FY 2015 sources of revenue HEALTHCARE COMPLEX DISTRIBUTION 40% 60% 10
Slide 11: Delivering sustainable revenue growth
Delivering sustainable revenue growth 4-year CAGR: 13% $57.3 Growth Drivers: Proprietary products $46.6 (4-year CAGR 21%) $43.8 $39.5 Healthcare $35.7 2011 2012 2013 2014 2015 11
Slide 12: Growing recurring revenue
Growing recurring revenue $25.0 4-year CAGR: Recurring 11% $21.3 revenue $20.0 $17.6 includes: Support & Maintenance $15.5 license (under Services $14.8 $15.0 $14.0 and Products) Hosting (under Services) (Recurring Revenue $10.0 in Millions) 39% 37% 35% 38% 37% $5.0 $0.0 2011 2012 2013 2014 2015
Slide 13: New Account Bookings Growth
New Account Bookings Growth In Millions of CDN$ New Account Bookings 2011 New Account Bookings 2014 New Account Bookings 2015 Complex Distribution 18% Healthcare 25% $5.9M $7.9M $15.3M 52% 48% 75% 82% Complex Complex Healthcare Distribution Distribution Healthcare 13
Slide 14: Total Bookings Growth
Total Bookings Growth In Millions of CDN$ $18,112 $28,902 $17,508 $17,985 Healthcare Healthcare 28% Healthcare 61% 25% Complex Complex Complex Distribution Distribution Distribution 72% 75% $6,892 39% $5,898 2013 2014 2015 14
Slide 15: Track record of long-term growth
Track record of long-term growth Total Bookings* (Millions) Backlog* (Millions) $47.0 $44.9 $29.2 $26.3 $27.2 $23.2 $24.4 $23.9 $21.0 $19.3 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 *Total Contract Value 15
Slide 16: New regulation driving change in healthcare
New regulation driving change in healthcare Controlling Complying with Improving Higher costs to comply UDI and DSCSA affordability productivity with ACA regulations 16
Slide 17: Impact of Supply Chain on healthcare costs
Impact of Supply Chain on healthcare costs 55% supply chain 15% 100% 15% 25% 45% HOSPITAL COST SEGMENTS clinical & supplies logistics & total others general labour distribution 17
Slide 18: In Business for Optimizing Health Systems Supply Chains
In Business for Optimizing Health Systems Supply Chains For Better Outcome Manage Optimize Eliminate Reduce Deliver Maximize Information, Transparency and Control 30% 10% 25% 50% 92% Better Product cost Retain Cash Delivery cost Regulatory Clinical time Reduction in Patient Longer Compliance Reducti
Slide 19: Shift from Legacy Model to CSC Model of Healthcare Supply Chain Management
Shift from Legacy Model to CSC* Model of Healthcare Supply Chain Management * CSC: Consolidated Service Center 19
Slide 20: The Parkview Health story
The Parkview Health story “TECSYS will revolutionize how business is conducted in the healthcare arena. The ROI is solid. If you are looking for innovation to become the front-runner in the industry, then you 7 hospitals Outpatient facility should look at TECSYS. I did look and I did not find anyone
Slide 21: Near-term growth strategies
Near-term growth strategies 1 HEALTHCARE 2 COMPLEX DISTRIBUTION 3 GROW • Additional POU Solutions • Brought in new Leadership • Base account revenue as a with dedicated sales team percentage of total revenue • Expand into Pharmacy • Revitalize and simplify • Strategic tuck-in acquisitions • Expand i
Slide 22: R&D - Product Roadmap
R&D - Product Roadmap Enhance mobility capability for EliteSeries Delivery Management - Q2 / FY16 Pharmacy (phase 1) - Q1 / FY17 - Q3/FY15 BMS - Q2 / FY16 SMS-OR + RFID - Q1 / FY17 SMS -OR V.1 - Q2 / FY16 Demand Forecasting Module - Q2 / FY16 Pharmacy (phase 2) - Q4 / FY17 SMS - OR V.2 - Q4/FY16 FY1
Slide 23: Financial highlights
Financial highlights Q3/2015 Q3/2016 Change 9-months 2015 9-months 2016 Change $ % $ % $ % $ % $ % $ % Revenue 14,958 100% 15,629 100% 671 4% 41,518 100% 46,322 100% 4,804 12% Cost of sales 7,888 53% 7,710 49% -178 -2% 21,744 52% 23,193 50% 1449 7% Gross margin 7,070 47% 7,919 51% 849 12% 19,774 48%
Slide 24: Tracking our progress
Tracking our progress 8 12% 40%+ to Target Annualized Delivering Operating Leverage Continue Growing Total Bookings Topline Growth Recurring Revenue 24
Slide 25: TECSYS’ Superior Value for Shareholders
TECSYS’ Superior Value for Shareholders Performance Against TSX Technology Index Outperformance TCS-T S&P/TSX Information Technology Index 91% 100% 80% 65% 60% 40% 40% 25% 20% 12% 11% 20% 0% -20% -40% -60% FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 25
Slide 26: Committed leadership
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 Larry Lumsden VP Products Former CAE, Director, Core Software Technologies Catherine Sigmar VP Strategic Initiatives Former Baan, Senior
Slide 27: Corporate overview
Corporate overview 10¢ SYMBOL $85M 12.3M MARKET CAP S/O TCS DIVIDEND PER YEAR INSTITUTIONAL BROKERAGE COVERAGE HOLDERS 42% Beacon Securities Fiera Capital Cantor Fitzgerald Mackenzie Cormark Securities Euro Pacific Pembroke Laurentian Bank Securities Pender INSIDER OWNERSHIP 27
Slide 28: Question & Answer
» Question & Answer TECSYS 28