Rimini Street, Inc. · NASDAQ:RMNI
Rimini Street — Investor Presentation (March 2019)
34 slides from Rimini Street's investor presentation, Mar 19, 2019
Slide 1: Investor Presentation March 2019
Investor Presentation March 2019 Property of Rimini Street ©2018 1
Slide 2: Legal Notice
Legal Notice “Rimini Street” is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of
Slide 3: Company Overview
Company Overview Property of Rimini Street ©2018 3
Slide 4: Company Snapshot
Company Snapshot Rimini Street is a global provider of enterprise software support products and services Global Platform Strong Revenue Growth Profile Founded: 2005 Public: October 2017 – Nasdaq: RMNI Global Headquarters: Las Vegas, NV Employees(1): Approximately 1,100 Active Clients(1)(2): Over 1,8
Slide 5: Senior Management Team
Senior Management Team Seth Ravin Thomas Sabol Sebastian Daniel B. Founder & SVP, CFO Grady Winslow CEO President SVP & General Counsel Kevin Jim Petraglia David Rowe Maddock SVP & Chief SVP & CMO SVP, Global People Officer Sales – Recurring Revs Steven Salaets Nancy Brian Slepko Anthony SVP, Global
Slide 6: Strategy, Service, & Value Drive Change
Strategy, Service, & Value Drive Change Platforms Supported Property of Rimini Street ©2018 6
Slide 7: The Enterprise Software Maintenance Support Problem
The Enterprise Software Maintenance Support Problem 1 High Cost, Low Value for Maintenance Dollars 2 Limited Innovation in Core ERP • “Enterprises have come to believe that there is • "EBS 12 didn’t have any features our business needed. We not enough value received for the high annual were very con
Slide 8: Business Driven Roadmap
Business Driven Roadmap Property of Rimini Street ©2018 8
Slide 9: A Changing IT Mission: Support Competitive Advantage & Growth
A Changing IT Mission: Support Competitive Advantage & Growth Something Must Change 90% ONGOING OPERATIONS AND ENHANCEMENTS THE GROWTH BUDGET CHALLENGE #1 CEO PRIORITY 10% BUSINESS TRANSFORMATION Gartner - “CEO Top Business Priorities for 2018 and 2019” Gartner - “IT Key Metrics Data 2018: Executive
Slide 10: Vendor Policies & Support Models Benefit Software Vendors
Vendor Policies & Support Models Benefit Software Vendors Impact of Following a Vendor-Dictated Roadmap POOR SUPPORT FORCED HIGH& COST END OF VENDO UPGRADES & VENDO VALUEPOOR NOR MIGRATIONS R SUPPORT SUPPORT CLOUD CLOUDERP LOCK INNOVATIONLOCK IN IN IMMATURE SOLUTIONS = Property of Rimini Street ©201
Slide 11: Taking Back Control of the IT Roadmap - Powered by Rimini Street
Taking Back Control of the IT Roadmap - Powered by Rimini Street Business-Driven Roadmaps Create Competitive Advantage & Growth Key Attribute Vendor-Dictated Roadmap Business-Driven Roadmap Focus Benefits Vendor Benefits Business Investments Upgrades & Migration Innovation & Differentiation Agility
Slide 12: Comprehensive Support: Keeping Systems Running Smoothly, Securely and In Compliance
Comprehensive Support: Keeping Systems Running Smoothly, Securely and In Compliance Rimini Street… . Assigns senior engineers directly to each client No call centers – each client is assigned a Primary Support Engineer (PSE) with an average of 15 years of real-world experience . Delivers 15-minute g
Slide 13: Innovation & Transformation: Rimini Street Supports Clients' Growth and Innovation
Innovation & Transformation: Rimini Street Supports Clients’ Growth and Innovation Perform Roll-Out Expand Change Innovate with Upgrades Globally Capabilities Infrastructure Hybrid IT Hundreds of Upgrades Support 120+ Countries Licenses and Products Run 15+ More Years Innovate Around Edges • Upgrade
Slide 14: Case Study – NCH Corporation
Case Study – NCH Corporation NCH saving 83% compared to Oracle’s annual support program costs with switch to Rimini Street Support Annual Costs with Software Annual Costs with Rimini Street Support Vendor Support “By avoiding forced upgrades with independent support, we were able to fund strategic p
Slide 15: Value of a Business-Driven Roadmap – Powered By Rimini Street
Value of a Business-Driven Roadmap – Powered By Rimini Street Today Tomorrow Property of Rimini Street ©2018 15
Slide 16: Overview of Market Opportunity
Overview of Market Opportunity Property of Rimini Street ©2018 16
Slide 17: $15 Billion TAM for Current and Planned Rimini Street Products
$15 Billion TAM for Current and Planned Rimini Street Products $87 Billion Market Opportunity Total Rimini Street Currently Supported Products Planned Future Products Annual Market Opportunity(1) $81 Billion On-Premise Maintenance Opportunity (2) $7.1 Billion(2) $7.4 Billion $360 Million(2) Technolo
Slide 18: Competitive Landscape
Competitive Landscape Few competitors and a defensible market position Primary Competitors Why Rimini Street Wins • Substantial cost savings Software Vendors • Support for all custom code • Custom global tax, legal and regulatory support • Excellent service experience (4.8 out of 5 client satisfacti
Slide 19: Growth Drivers
Growth Drivers Numerous avenues for future expansion Global Enter additional countries Expansion Expand capabilities in existing countries New SaaS Pursue premium support services for SaaS products, Products including Salesforce and Workday New License Add product support for additional soft
Slide 20: Financial Overview
Financial Overview Property of Rimini Street ©2018 20
Slide 21: Historically High Growth, Predictable Revenue
Historically High Growth, Predictable Revenue Key Statistics Near 100% subscription revenue with 90%+ Revenue Retention Rate(1) results in highly predictable revenue Backlog(2) of $399M, as of December 31, 2018, further bolsters visibility (1): See Revenue Retention Rate definition on page 33. (
Slide 22: Key Operating Metrics
Key Operating Metrics Annualized Subscription Revenue(2) Active Clients(1) Revenue Retention Rate(3) Gross Margin (1): See Active Client definition on page 33. (2): See Annualized Subscription Revenue definition on page 33. (3): See Revenue Retention Rate definition on page 33. Property of Rimini St
Slide 23: Historical Financial Performance
Historical Financial Performance Observations (US$ in millions) 2015A 2016A 2017A 2018A Strong revenue growth across the Revenue $118.2 $160.2 $212.6 $252.8 years Gross Profit $65.4 $93.1 $129.7 $156.8 Continued gross margin expansion Sales & Marketing Expenses $50.3 $72.9 $66.8 $93.2 Sales &
Slide 24: Credit Facility Refinancing & Elimination of Covenants
Credit Facility Refinancing & Elimination of Covenants • Issued $140 million of new Series A Shares on July 19, 2018 along with ~2.9 million common shares and placed a follow-on offering of $6.5 million and 134,483 common shares on March 7, 2019 • Cash dividend of 10%; Payment In Kind Dividend of 3%
Slide 25: Pro Forma Capital Structure
Pro Forma Capital Structure (1) 64.2 million Common Shares Outstanding 11.9 million Stock Options with an average strike price of $4.00 3.4 million Warrants with an exercise price of $5.64 14.0 million Series A Convertible Preferred with a conversion price of $10.00 14.7 million Warrants with an exe
Slide 26: Conclusion
Conclusion Property of Rimini Street ©2018 26
Slide 27: Top Tier Sponsorship with Long Term Investment Horizons
Top Tier Sponsorship with Long Term Investment Horizons Leader in Alternative Investments Private Equity Leadership in Technology Since its foundation in 1993, GP Investments has completed over Single largest shareholder in Rimini Street 50 investments across multiple sectors and over 20 capital
Slide 28: Summary Highlights
Summary Highlights $81 billion TAM for on-premise maintenance opportunities Large Market Opportunity $6 billion TAM for supplemental cloud premium maintenance opportunities Clients can save up to 90% in total maintenance costs by replacing vendors with Rimini Street Compelling Client Value Pro
Slide 29: Property of Rimini Street ©2018 29
Property of Rimini Street ©2018 29
Slide 30: Appendix
Appendix Property of Rimini Street ©2018 30
Slide 31: Unaudited GAAP to Non-GAAP Historical Reconciliations
Unaudited GAAP to Non-GAAP Historical Reconciliations 2014A 2015A 2016A 2017A 2018A GAAP Net Income (Loss) ($127.8) ($45.3) ($12.9) ($53.3) ($67.9) Interest expense 0.7 0.8 13.4 43.4 32.5 Income tax expense 1.0 1.5 1.5 1.3 2.0 Depreciation and amortization expense 1.9 1.5 1.8 2.0 1.8 E BIT DA ($124.
Slide 32: Supported Products
Supported Products Product Lines: ALL Product Lines: HCM, FIN, Product Lines: HCM, Product Lines: ALL Product Lines: ALL Product Lines: Majority of the Oracle Releases: 5.x, 6.0x, 6.3x, CRM, EPM, SRM, SCM, Financials, Distribution Releases: 10.7 and later Releases: Certified in Fusion Middleware Pro
Slide 33: Summary of Key Operating Metrics
Summary of Key Operating Metrics Active client - Distinct entity, such as a company, an educational or government institution, or a subsidiary, division, or business unit of a company that purchases Rimini Street services to support a specific product Number of Clients Growth in the number of cl
Slide 34: About Non-GAAP Financial Measures and Certain Key Metrics
About Non-GAAP Financial Measures and Certain Key Metrics To provide investors and others with additional information regarding Rimini Street’s results, we have disclosed the following non-GAAP financial measures and certain key metrics. We have described below Active Clients, Annualized Subscriptio