Slide 1: Investor/Analyst Day August 27, 2015
TECHNOLOGY | INNOVATION | SOLUTIONS Investor/Analyst Day August 27, 2015
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
TECHNOLOGY | INNOVATION | SOLUTIONS 2 Forward-looking Statements & Non-GAAP Financial Information Forward-Looking Language This presentation and all publicly available documents, including the documents incorporated herein and therein by reference, contain, and our officers and representatives may f
Slide 3: Today's Agenda
TECHNOLOGY | INNOVATION | SOLUTIONS 3 Today’s Agenda Executive Summary Market Overview Products & Technology Financial Overview
Slide 4: Executive Summary
Executive Summary Agilysys, ,
Slide 5: Connecting Hospitality Managers to Their Guests
5 Connecting Hospitality Managers to Their Guests Guest Recognition Dining & Stay Preferences Reaching your Target Market Integrated Purchasing & Payment
Slide 6: Connection Value
TECHNOLOGY | INNOVATION | SOLUTIONS 6 Connection Value Improve recruitment Connecting purchasing & payment Targeted promotions Increase wallet share Acting persona Contextually relevant offers Strengthen guest connection Guest recognition Guest value
Slide 7: Vision & Purpose
TECHNOLOGY | INNOVATION | SOLUTIONS 7 Transform the guest experience in the hospitality industry Build lasting connections with our team, our customers, our stakeholders and our communities Our Purpose Our Vision Vision & Purpose
Slide 8: Operating Plan Guidelines
TECHNOLOGY | INNOVATION | SOLUTIONS 8 Operating Plan Guidelines Strategy Objectives/Key Results: • Substantially grow market share • Increase SaaS portion of revenue • Market leading innovation • Leader in employee retention Go to Market Strategy: • Dominate gaming and food service management • Exte
Slide 9: Investment Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS 9 Investment Highlights 53% Recurring Revenue TTM* 78% Recurring Revenue Gross Margins 95%+ Renewal Rate in FY15 $14B+ Market Opportunity 10+ Year Average Customer Relationship *TTM for the twelve month period ended June 30, 2015.
Slide 10: Market Overview
ee a. Market Overview Agilysys. .
Slide 11: Total Addressable Market is Growing
TECHNOLOGY | INNOVATION | SOLUTIONS 11 Total Addressable Market is Growing $14B+ Market Opportunity $4.3B Addressed Market AGYS Product roadmap & reseller channel significantly expands total addressable market Industry growth expected at 5-7% annually (commissioned IHL and STR study)
Slide 12: Agilysys Dominates Gaming
TECHNOLOGY | INNOVATION | SOLUTIONS 12 Agilysys Dominates Gaming • Market Domination • 49% of AGYS total revenue • Leading provider to US gaming companies • New product up-sales, competitive take outs • Leading in Tribal Gaming • Top Customers Caesars Entertainment uses Agilysys solutions for PMS, P
Slide 13: Agilysys Leads in FSM
TECHNOLOGY | INNOVATION | SOLUTIONS 13 Agilysys Leads in FSM • Market Leadership • Partnered With: #1 North American Foodservice Management Company • Exceeding Targeted Growth • Top Customers Compass Group deploys Agilysys solutions throughout its base of institutional foodservice customers to lower
Slide 14: Your Hotel is Ready with Agilysys
TECHNOLOGY | INNOVATION | SOLUTIONS 14 Your Hotel is Ready® with Agilysys • Market Growth • Leading PMS Products: Info-Tech PMS Landscape • New SMB Solution • Winning Limited Service Chains • Top Customers Rosen Hotels depends on Agilysys to help drive revenue growth and wallet share, improve operat
Slide 15: Agilysys Delivers in Cruise
TECHNOLOGY | INNOVATION | SOLUTIONS 15 Agilysys Delivers in Cruise • Market Leadership • 2 of the Top 3 by Revenue • Top 2 in Growth Expansion • 2 Newest Ships • Top Customers RCCL deploys Agilysys solutions across its fleet of cruise ships to simplify operations, increase cruise revenue and ensure
Slide 16: Increasing Share in Restaurants
TECHNOLOGY | INNOVATION | SOLUTIONS 16 Increasing Share in Restaurants • Targeted Growth • Full Service Groups • Fast Casual • Reseller Channel for Down-Market • Top Customers Benchmarc Restaurants relies on Agilysys to maximize the security of every guest’s payment transaction 0. 50. 100. 150. 200.
Slide 17: International Presence and Growth
TECHNOLOGY | INNOVATION | SOLUTIONS 17 International Presence and Growth Despite global presence, there is still room for tremendous international growth International revenues represent approximately 5% of revenue composition, reflecting a large growth opportunity Seattle Las Vegas Santa Barbara Ed
Slide 18: Recognized Solution Leadership
TECHNOLOGY | INNOVATION | SOLUTIONS 18 Recognized Solution Leadership • Agilysys has a longstanding history in the PMS space, catering to the needs and desires of the hospitality market. Agilysys’ Lodging Management System® (LMS) is built on the iSeries platform and is designed to run in high volume
Slide 19: Recognized Cloud Solutions
TECHNOLOGY | INNOVATION | SOLUTIONS 19 Recognized Cloud Solutions • InfoGenesis® Flex • Finalist – SaaS Solutions • Innovation & efficiency in cloud-based delivery • Program theme – “Operational Excellence” “Recognizes companies, executives, and services whose innovative approaches are helping to ac
Slide 20: Market Dynamics
TECHNOLOGY | INNOVATION | SOLUTIONS 20 Market Dynamics • Strong market fundamentals • Product development success • Sales execution • Favorable competitive landscape
Slide 21: Products & Technology
Products & Technology Agilysys. .
Slide 22: Established In-Market Product Offerings
TECHNOLOGY | INNOVATION | SOLUTIONS 22 Established In-Market Product Offerings: Interfaced, Not Common Platform Workforce Management (Staff) 2% of Revenue Property Management (Book, Arrive, Order) 27% of Revenue Point-of-Sale (Order) 56% of Revenue Inventory & Procurement (Procure) 11% of Revenue Do
Slide 23: Key Differentiators
TECHNOLOGY | INNOVATION | SOLUTIONS 23 Key Differentiators The best hospitality knowledge coupled with the best technology talent Competitive Strengths Scalability Support deployments from single lane café (POS) to 8,000 room property (PMS) on a single instance Scalability Scalability High levels of
Slide 24: rGuest Platform & Product Offering Overview
TECHNOLOGY | INNOVATION | SOLUTIONS 24 rGuest ® Platform & Product Offering Overview: End-to-End Solutions Promote Staff Survey Promote Supply Seat Reserve Seat Stay Buy Stay Upsell Profile Analyze NextGen Offering Today’s Offering Guest Lifecycle Pay Suggest Order Market Discover Book / Reserve Arr
Slide 25: Delivering Vision Through the rGuest Platform
TECHNOLOGY | INNOVATION | SOLUTIONS 25 Delivering Vision Through the rGuest ® Platform Common User Interface Shared Configuration Common Services Cloud Technology Open Architecture Rich Integrations
Slide 26: Product Status
TECHNOLOGY | INNOVATION | SOLUTIONS 26 Product Status Insight Mobile Manager (IMM) v1.x for LMS & Visual One (POS) Initial Release: Fall 2015 (PMS) Limited Release Available
Slide 27: Recently Released Offerings
TECHNOLOGY | INNOVATION | SOLUTIONS 27 Recently Released Offerings SaaS-based Reservations & Table Management solution Leverage comprehensive guest data Drive operational efficiency PCI-validated P2PE gateway gets merchant out of PCI scope Card data protection Differentiated pricing mode
Slide 28: Guest-Centric Operation
TECHNOLOGY | INNOVATION | SOLUTIONS 28 Guest-Centric Operation • Thrill the guest • Maximize wallet share • Increase recruitment • Reduce cost rGuest® Seat: Guest Centric 2 8 PERSONALIZE SCORE IDENTIFY SATISFY UPSELL RECRUIT
Slide 29: Product Demo
TECHNOLOGY | INNOVATION | SOLUTIONS 29 Product Demo
Slide 30: TECHNOLOGY | INNOVATION | SOLUTIONS 30
TECHNOLOGY | INNOVATION | SOLUTIONS 30
Slide 31: rGuest Buy Kiosk – Upcoming Initial Offering
TECHNOLOGY | INNOVATION | SOLUTIONS 31 rGuest® Buy Kiosk – Upcoming Initial Offering • Menu scheduling • Suggestive selling • Real-time menu updates • P2PE payment w/rGuest pay • USB scanner and scale support • Menu modifiers & choice groups • Image management • White label branding • Table top or f
Slide 32: Product Demo
TECHNOLOGY | INNOVATION | SOLUTIONS 32 Product Demo
Slide 33: Financial Overview
33 Financial Overview
Slide 34: Historical Financial Results
TECHNOLOGY | INNOVATION | SOLUTIONS 34 Historical Financial Results All numbers in thousands, except per share data *FY13 & FY14 results reflect the sale of RSG and UK entity **TTM for the twelve month period ended June 30, 2015 ^ Non-GAAP measure, see reconciliation on slide 40 & 41 $94,008 $101,26
Slide 35: Recurring Revenue Growth
TECHNOLOGY | INNOVATION | SOLUTIONS 35 Recurring Revenue Growth Agilysys’ pure-play software business model is driving robust recurring revenue Reported revenue growth of +2% in FY15 TTM revenue growth of 4% 54% recurring revenue in FY2015 with high retention rates More than doubled new cust
Slide 36: Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS 36 Strong Balance Sheet Consolidated Balance Sheet (unaudited) in thousands June 30, 2015 March 31, 2015 Cash, cash equivalents and marketable securities $66,034 $75,067 Other current assets 23,434 29,950 Long-term assets 81,172 76,508 Total assets $170,640 $181,5
Slide 37: FY16 Outlook
TECHNOLOGY | INNOVATION | SOLUTIONS 37 FY16 Outlook • Revenue outlook • $106-108M compared to $103.5M in fiscal 2015 • Gross margin • Expected to be consistent with fiscal 2015 in high 50% range • Adjusted EBITDA • Incrementally higher Adjusted EBITDA compared to fiscal 2015 Adjusted EBITDA of $1.2M
Slide 38: Investment Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS 38 Investment Highlights Focused Business with Significant Room for Growth Over $4B in annual industry spend for current product portfolio, Gain share, expand product capabilities through focused investments and acquisitions Support growth with world-class c
Slide 39: Appendix
39 APPENDIX
Slide 40: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS 40 Non-GAAP Reconciliation *TTM for the twelve month period ended June 30, 2015. 2013 2014 2015 TTM* Net (loss) income (1,298)$ 17,097$ (11,497)$ (9,452)$ (Loss) Income from discontinued operations, net of taxes 4,916 19,992 - - Loss from continuing operations (6,
Slide 41: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS 41 Non-GAAP Reconciliation *TTM for the twelve month period ended June 30, 2015. 2014 2015 TTM* Operating activities: Net cash used in operating activities from continuing operations 1,384$ (2,186)$ 4,136$ Non-recurring cash items: Payments for restructuring, seve