Slide 1: Investor Presentation Q2 FY2025
Investor Presentation Q2 FY2025 A HIGHER STANDARD
Slide 2: Safe harbour
Safe harbour 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 b
Slide 3: Tecsys at a glance
Tecsys at a glance Purpose: Position: Mission: Vision: To empower To clarify To equip supply That good good companies uncertainty in the chain greatness companies have to be great supply chain the space to thrive Our story is all about our customers 3
Slide 4: Trusted provider of supply chain technology for the world’s most complex supply networks
13 times 40+ years Tecsys named in 40% of complex Gartner's Magic of Gartner’s Healthcare supply network Quadrant for WMS and Supply Chain Top 25 experience positioned as for 2024 are customers Challenger since 2022 Trusted provider of supply chain technology for the world’s most complex supply netw
Slide 5: Global reach and financial strength
Global reach and financial strength 1,000+ 35% $172M $101M 741 SaaS revenue Revenue* Annual Recurring Employees** Customers growth* 71% USA Revenue** 19% Canada 10% ROW (primarily Europe) * Last twelve months, October 31, 2024 ** On October 31, 2024 5
Slide 6: End-to-end integrated supply chain management solutions
End-to-end integrated supply chain management solutions A platform for success POU Point of use CONSUME PLAN BUY STORE SELL FULFILL Demand Procurement, Warehousing E-commerce, order Distribution, COMPLETE forecasting and contracting and and inventory AI management and pick, pack AI planning releasin
Slide 7: Momentum
Momentum $171 Total Revenue (in $ million) $152 $137 $123 $105 $40.10* TSX:TSE $14.96 2020 2021 2022 2023 2024 2025 New CHRO New CMO Launched Normal COVID-19 Organic TSX30 Course Issuer Bid Named Leader in Growth Nucleus WMS Matrix New IT Sec Promoted to Challenger New R&D New Global New Chief Leade
Slide 8: SaaS growth driving increase in recurring revenue
SaaS growth driving increase in recurring revenue in $CAD millions $100.6 million based on Q2 FY25 ARR1 85.9 70.2 59.6 51.9 47.9 52.9 37.5 26.9 41% 39% 39% 19.2 31.4 33% 33.7 32.7 32.7 34.0 16.4 FY 2021 FY 2022 FY 2023 FY 2024 Q2 YTD FY 2025 Maintenance and Support revenue SaaS revenue % SaaS Revenu
Slide 9: Customers
Customers Percentage of annual recurring revenue Converging complex distribution 47% 53% Healthcare Solutions built on experience: Delivering end-to-end solutions with technology and services tailored to key industries 9
Slide 10: Healthcare supply chains are stressed
Healthcare supply chains are stressed Standardization across Point of use breakdowns networks Volume fluctuations Extraordinary pressure on IDNs struggling supply chain to deliver Regulatory requirements Result: Healthcare supply chains need solutions urgently Opportunity: Tecsys is cons
Slide 11: Healthcare market opportunity
Healthcare market opportunity Becoming dominant in U.S. Health Systems market – The $1.2B ARR* opportunity Health Systems Base Account market share penetration 373 28% 16% ARR opportunity: ARR opportunity $1.2B with current base: $188M 84% Target Health Systems 72% Market Opportunity Current Share M
Slide 12: Brand owner/Retail convergence drives opportunity in complex distribution
Brand owner/Retail convergence drives opportunity in complex distribution Seismic shift happening Businesses/trading in retail partners expect the same Consumers demand Extraordinary pressure on products faster supply chain to deliver Result: Supply Chain Management needs urgent upgrade to h
Slide 13: Distribution convergence market opportunity –$6B
Distribution convergence market opportunity –$6B Industries: High-volume distribution/wholesalers of hard goods in these specific verticals: General hard goods – agricultural equipment, auto parts, computer equipment, construction materials, 12,000 consumer packaged goods, electrical and electronics
Slide 14: Partner ecosystem - Accelerate growth
Delivering exceptional innovation and ser vice together Partner ecosystem - Accelerate growth Technology partners Advisory and service partners AWS, Workday, Oracle, Shopify, Deloitte, CGI, KPMG, Bricz, Avalon CSC, Locus Robotics, Zebra Technologies, RiseNow Consulting, Sequoia Group, SVT Robotics,
Slide 15: SaaS driving Annual Recurring Revenue (ARR) growth
SaaS driving Annual Recurring Revenue (ARR)1 growth in $CAD millions SaaS represents 69% of total ARR Q2 FY25 31% Q2 FY25 SaaS ARR growth YoY 56% Q2 FY25 recurring revenue as a % of total revenue 1 Refer to October 31, 2024, Management Discussion and Analysis “Key Performance Indicators” 15
Slide 16: Annual Recurring Revenue net retention rate
Annual Recurring Revenue net retention rate 115% 113% 113% 113% 110% 108% 107% 113% 105% 100% LTM Q2 Fiscal 2025 Recurring Revenue net 95% retention rate 90% Net Retention = (Existing customer expansion less churn) divided by Beginning 85% period ARR 80% 2021 2022 2023 2024 LTM Q2 2025 16
Slide 17: SaaS Remaining Performance Obligation (RPO) $204 million
SaaS Remaining Performance Obligation (RPO) in $CAD millions 197 $204 million 138 Q2 FY25 SaaS RPO 94 66 52 39% Q2 FY25 SaaS RPO 15 YoY Growth 2019 2020 2021 2022 2023 2024 17
Slide 18: Projected SaaS margin expansion
Projected* SaaS margin expansion Previously sub-scale SaaS business at an inflection point. Current Elite product margins on latest infrastructure are running at over 75%. AEBITDA FY25P and FY26P represent guidance mid-point. AEBITDA FY27P and FY28P are directional targets. 18 * Refer to Oct
Slide 19: Financial highlights
Financial highlights in $CAD thousands except EPS Q2 2025 Q2 2024 Δ YoY Q2 2025 TTM Q2 2024 TTM Δ YoY $ % $ % $ % $ % $ % $ % SaaS Revenue 16,130 38% 12,072 29% 4,058 34% 59,795 35% 44,244 27% 15,551 35% Maintenance and Support Revenue 7,703 18% 8,899 21% (1,196) -13% 33,178 19% 33,545 21% (367) -1%
Slide 20: Corporate overview
Corporate overview $592M 32¢ 17% Market cap** Symbol TCS Dividend per year* Insider ownership** 14.8M S/O Cormark Securities Inc. Brokerage National Bank Financial Raymond James coverage Stifel Ventum Financial * Last twelve months, October 31, 2024 20 ** On October 31, 2024
Slide 21: Reasons to invest
Reasons to invest $1.2B $6B 35% 3.1x Cloud- SaaS ARR ARR NTM based revenue TAM TAM growth EV/sales Operates a single Greenfield Disruptor opportunity LTM October 31, 2024, Trading at 3.1x cloud-based opportunity in in complex YoY SaaS revenue NTM EV/sales, an platform that healthcare with the distri
Slide 22: Thank you
** tecsys” Thank you