Corporate OverviewQ3 FY 17
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Forward-Looking Statements Disclaimer
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.
Market and 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.
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Build a diverse enterprise software and services company through:
Growing our interaction management solutions business
• Interactive Management Group
Growing our network solutions and transportation management software
businesses
• Asset Management Group
Consistently generating revenue growth and positive cash flow
Completing selective acquisitions within existing markets and entering new
strategic software markets on an opportunistic basis
Strategy
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Enghouse Interactive
Contact center software
Profitable growthRevenue~1600 employees
HQ in Canada + 25
countries
Snapshot
Enghouse Networks
Telecom software
Enghouse Transportation
Transportation software
Dual Growth – organic &
acquisitions
Toronto Stock Exchange
TSX:ENGH
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Interactive - Sector Dynamics
Contact Center is at the front line of customer interaction,commoditization of the PBX market is driving on-premise, cloud and SaaSdelivery models
Integration of contact center, CRM and analytics are needed to enablecustomer experiences that are contextual, progressive and relevant
Mobile device and application proliferation requires an intelligent andseamless transition from self service to agent assisted interactions
Email, chat and SMS interactions are increasingly popular but voice stillaccounts for 60% of interactions and are typically more complex and ofhigher value and importance
The best person to handle the interaction may be staff in the front, middleor back office, driving convergence of contact center, UC and consolesolutions
Microsoft’s entry in both on-premise and cloud-based UnifiedCommunications (Skype for Business) is a disruptive force as the marketmoves from IP Telephony to UC
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Consoles
2-50 seats
Channel GTM and OEM
On-premise
Mid-Market
10-500 seats
Channel GTM
On-premise or hosted private cloud
Enterprise
50-1000’s of seats
Direct/Channel GTM
On-premise, private cloud, or hybrid
Cloud
True multi-tenant cloud solution
GTM through carriers and service providers
Public, community, or private cloud
Interactive Portfolio
Leading customer interaction solutions, in the cloud, hosted or on-
premise to address specific market requirements
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Interactive Portfolio
MULTI-CHANNEL CONTACT CENTERContact Center Enterprise · Contact Center Service Provider · Communications
Center with Skype for Business · Contact Center OnDemand · Outbound Dialer
CALL RECEPTION/CALL HANDLINGIntuition Attendant Console (Avaya/Genband) · Arc Pro Attendant Console for
CISCO · Operator Console for Microsoft Skype for Business · ANDTEK Console
SELF-SERVICECommunication Portal · Mobile IVR Navigator · Knowledge Management Suite
QUALITY MANAGEMENTCall Billing and Reporting (Enterprise & Cloud) · Call & Computer Recording
Agent Evaluation · Quality Management Suite · Workforce Management
TELEPHONY & CRM INTEGRATIONCTI Connect · CTI for CRM · VoiceXML Test Suite · Directory Integration
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Networks - Sector Dynamics
Industry growth fueled by next generation wireless subscriber growth,demand for smartphones, tablet devices, OTT applications and Internet ofThings (IOT)
Continuing investment and roll out of next-generation networktechnologies 4G & LTE and new service offerings, while also dealing withcustomer services and retention
Big data and analytics technologies being deployed to tailor value-addedservices based on subscriber usage and behavior
Network convergence, cloud services and network function virtualization(NFV) will continue to gain momentum
Highly fragmented, open for more industry consolidation among 400+vendors
BSS/OSS market was valued at $17B in 2011 and is expected to grow to$48.5B in 2018, a CAGR of 16% from 2012-2018 (Source – Transparencymarket Research)
Investment by service providers in cloud application and infrastructuretechnologies that enable high value, high margin enterprise businessservices offerings
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Networks Portfolio
Technology solutions to optimize performance for next generation
network operators
OPERATIONS SUPPORT SYSTEMSService Assurance · Performance Management · Inventory Management ·
Resource Management · Planning · Configuration Management · Geographic
Information Systems
BUSINESS SUPPORT SYSTEMSWholesale Revenue Management · MVNO Revenue Management · Intelligent
Routing · Billing SaaS · Customer Experience Management · Electronic
Invoice Management
NETWORK & VALUE ADDED SERVICESMobile VAS · Routing & Control · Security · Call Recording
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Transportation - Sector Dynamics
Fragmented and competitive market. New technologies driving growth insystems and tangible cost benefits / savings
Evolving tablet and smart phone technologies replacing traditional MobileData Terminals (MDT’s). LTE networks to provide interoperability acrossgeographies
Cloud computing gaining momentum and driving replacement of legacytechnology systems in a space traditionally slow to adopt
Economic uncertainty and rising fuel costs driving increased ridership inboth public and private sectors
International political focus on terrorism and natural disasters drivingcontinued investment in transportation and public safety systems
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Transportation Portfolio
Software based transportation and workforce management
solutions for the public, private and public safety sectors
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ANNUAL RESULTS
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Fiscal Year Results (ending Oct 31)
Note¹ : CAGR – Compound annual growth rate
FY 12 FY 13 FY 14 FY 15 FY 16
$136m
$180m
$279m
TOTAL REVENUE
$220m
$308m
FY 12 FY 13 FY 14 FY 15 FY 16
$152m
$72m
$92m
$115m
$136m
49%52% 51% 49%
HOSTED & MAINTENANCE
REVENUE
52%
FY 12 FY 13 FY 14 FY 15 FY 16
$1.35
$1.69
$2.09
$2.69
$3.19
ADJUSTED EBITDA
PER SHARE
FY 12 FY 13 FY 14 FY 15 FY 16
$0.23
$0.29
$0.36
$0.44
$0.52
DIVIDEND PER SHARE (based on date of record)
Note¹: Compounded annual growth rate FY12 - FY16
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Revenue Split - FY 16
License
30%
Hosted & Maintenance 50%
Services
19%
Hardware
1%
REVENUE BREAKDOWN
Interactive
Management Group$192m or 62%
Asset
Management Group$116 m or 38%
REVENUE BY BUSINESS GROUP
Note: % rounding applied to charts and tables throughout this corporate presentation
US
28%
UK
21%EUROPE
16%
CANADA
3%
APAC
5%
SCANDINAVIA
27%
REVENUE BY GEOGRAPHY
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YTD FY 17 (9 MONTHS)
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YTD FY 17
YTD FY 17 YTD FY 16 % Change
Revenue $241.1 $229.3m 5.2%
Revenue by Segment
Interactive Management Group $141.4m $143.9m -1.7%
Asset Management Group $99.7m $85.3m 16.7%
License revenue $72.5m $69.2m 4.8%
Hosted & Maintenance revenue $122.5m $114.0m 7.5%
Adjusted EBITDA¹ per diluted share $2.43 $2.20 10.5%
Adjusted EBITDA¹ $66.3m $60.0m 10.5%
Annual dividend - per common share, based on
date of record $0.44 $0.38 15.8%
Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition related
restructuring costs.
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YTD FY 17
YTD FY 17 YTD FY 16
Cash spent on dividend $11.9m $10.2m
Cash spent on acquisitions (net of cash acquired &
holdbacks)$17.2m $40.3m
Cash & Investments balance - beginning of period $85.9m $98.4m
Cash & Investments balance - end of period $103.8m $90.7m
Acquisitions
CTI Q1
Cellvision Q2
NetBoss Q3
Tollgrade Q2
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Q3 FY 17
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Q3 FY 17
Q3 FY 17 Q3 FY 16 %Change
Revenue $82.8m $76.4m 8.4%
Revenue by Segment
Interactive Management Group $46.8m $46.6m 0%
Asset Management Group $35.9m $29.7m 21.0%
License revenue $24.5m $23.9m 2.3%
Hosted & Maintenance revenue $43.4m $37.9m 14.6%
Adjusted EBITDA¹ per diluted share $0.83 $0.79 5.6%
Adjusted EBITDA¹ $22.6m $21.6m 5.0%
Quarterly dividend - per common share, based on
date of record $0.16 $0.14 14.3%
Note¹: Adjusted EBITDA: Results from operating activities adjusted for depreciation of PPE and special charges for acquisition related
restructuring costs.
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Q3 FY 17
Q3 FY 17 Q3 FY 16
Cash spent on dividend $4.3m $3.8m
Cash spent on acquisitions (net of cash acquired & holdbacks) $0.6m $7.5m
Cash & Investments balance - beginning of period $87.6m $85.1m
Cash & Investments balance - end of period $103.8m $90.7m
Acquisitions
Netboss Q3
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Quarterly Results
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 14 FY 15 FY 16 FY 17
REVENUE$ millions
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 14 FY 15 FY 16 FY 17
HOSTED & MAINTENANCE REVENUE$ millions
$0
$5
$10
$15
$20
$25
$30
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 14 FY 15 FY 16 FY 17
ADJUSTED EBITDA$ millions
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
$0.18
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 14 FY 15 FY 16 FY 17
DIVIDEND PER SHARE(based on date of record)
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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 payback within 5 - 6 years
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Recent Acquisitions
CTI
Dec, 2015
Q1 FY 16
USA
AKTAVARA
Sept, 2015
Q4 FY 15
SWEDEN
NETBOSS
May, 2016
Q3 FY 16
USA
CELLVISION
March, 2016
Q2 FY 16
NORWAY
PRESENCE
Oct, 2016
Q4 FY 16
SPAIN
TOLLGRADE
April, 2017
Q2 FY 17
US
SURVOX
Sept, 2017
Q4 FY 17
US
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