Intellinetics, Inc. · AMEX:INLX
Intellinetics — Taglich Brothers 18th Annual Investor Conference (May 2022)
21 slides from Intellinetics's conference presentation, May 2, 2022
Slide 1: Taglich Brothers 18th Annual Investor Conference
Taglich Brothers 18th Annual Investor Conference May 2, 2022 Presentation by A oe Intellinetics
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements, including expressions of future goals, projections, statements about future business, growth, synergies associated with the Yellow Folder acquisition, intentions, beliefs, expectations, plans, strategies, antic
Slide 3: Digital Transformation
Digital Transformation Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digita age is digital transform
Slide 4: Digital Transformation = Market Opportunity
Digital Transformation = Market Opportunity 2021 Forrester Report - “It’s Time for Digital Government” 62% of government decision 66% of government decision makers makers said the pandemic said the agency will maintain forced accelerated investment accelerated digital transformation in digital trans
Slide 5: Market Opportunity-Enterprise Content Management
Market Opportunity-Enterprise Content Management North America Enterprise Content Management Market Size, 2017-2028 (USD Billion) $28.64 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 www. fortunebusinessinsights.com Intellinetics.com Knowledge In Motion
Slide 6: Intellinetics Meets Market Needs
Intellinetics Meets Market Needs Solutions and Services that Enable and Accelerate Digital Transformation Unlock Organizational Data into a Digital Asset a =&D MI-O Document Processing: IntelliCloud Software Suite: Document Scanning Content Management (ECM) Microfiche/Film Workflow Automation Scan o
Slide 7: President and CEO: Jim DeSocio
President and CEO: Jim DeSocio ) Intellinetics — Chief Executive Officer * 8 Straight Quarters of positive income (through 12/31/2021) ¢ 6 Straight Quarters of EBITDA exceeding $300K * Completed three acquisitions & Relayware - Chief Revenue Officer + Doubled subscription revenue; tripled new custom
Slide 8: Impactful Events
Impactful Events & Record Year in 2021 - Successfully integrated cross-selling opportunities with acquisitions + Vastly expanded document conversion capabilities o Scanning, BPO and storage services Launched new solutions/products Annual Revenue (000's) @. Business Process Outsourcing - Payable Auto
Slide 9: Impactful Events
Impactful Events Z FY 2 O 231 new orders | <4 Total Contract Value $3.2 million <4 343 new orders including 108 new logos Z FY y 1 > 48% Growth over FY20 Total Contract Value* $5.8 million > 81% Growth over FY20 Order distribution by vertical: *Total Contract Value (TCV) represents estimated total f
Slide 10: Building For The Future
Building For The Future 2022 Sales QUOTAS 2022 Sale Territory Plan by Rep NON-Dss TCV Dss TCV Total TCV ae Brad Lahr $ 300,000 | $ 500,000 800,000 Gary VanBuhler | $ 400,000 | $ 400,000 800,000 Matt Chretien |$ 600,000 | $ 250,000 850,000 Terry Buchanan | $ - $ 3,550,000 3,550,000 Jill Saxon $ 50,00
Slide 11: Sales Pipeline Growth
Sales Pipeline Growth Nov 2021 Pipeline Stage TCV Qualification $206,000 Needs Analysis $141,000 Proposal $1,562,000 Negotiation $673,000 Total Active $2,582,000 QTY 20 18 54 26 118 April 2022 Pipeline Stage Qualification Needs Analysis Proposal Negotiation Total Active TCV $1,851,000 $2,685,000 $1,
Slide 12: Mergers & Acquisitions
MERGERS & AQUISITIONS Closed YellowFolder on April 1, 2022 WHY YELLOWFOLDER Intellinetics.com
Slide 13: Yellow Folder, LLC
Yellow Folder, LLC ¢ 2021 unaudited annual results o $2.8M sales revenue, all K-12 o $2.6M document management - all SAAS o 2/3 Student & Special Ed records o 1/3 HR & Admin records Y 0 | YellowFolder o $0.2M record storage Education's Online Filing Cabinet o $0.6M Net Income / EBITDA « Located in T
Slide 14: Yellow Folder, LLC
Yellow Folder, LLC LY | YellowFolder Education's Online Filing Cabinet On a pro-forma 2021 basis, unaudited Intellinetics.com (@) ° * BENEFITS OF ACQUISITION Doubles SAAS revenue, improves overall mix* +37% EBITDA growth* = Acquisition model accretive from year 1 Approximately 500 K-12 customers com
Slide 15: Yellow Folder, LLC
Yellow Folder, LLC * BENEFITS OF ACQUISITION, continued o High customer retention = Very sticky * Avg 3.3% annual churn last 6 years* i YellowFolder = Better than 5-7% SAAS benchmark Education's Online Filing Cabinet o No SAAS customer over 3% of revenue o Continued performance since January 1, 2022
Slide 16: Expands K-12 Vertical Growth
Expands K-12 Vertical Growth Existing partner: Software Unlimited Inc. (SUI) ERP accounting software provider for K-12 with 1,200 customers Three Year Relationship: ¢ SUI sells/implements IntelliCloud, branded “K1i2Docs”, minimizing Intellinetics’ cost to acquire customer ¢« Sold 148 new “Ki2Docs” c
Slide 17: Leadership
Leadership Steve Nester, VP Matt Chretien, CSO Joe Spain, CFO Professional Services Co-founder 5 years tenure GM Graphic 9 years tenure 25+ years in sales & technology Corporate/start-up/M&A experience 13 yee Tessa Tyler, Terry Buchanan, Ryan Bell, Chief Education Officer Graphic Sciences Acquisitio
Slide 18: SaaS and Recurring Revenue: Building to the Future
SaaS and Recurring Revenue: Building to the Future total INLX Yellow Folder Pro-forma 2021 actual 2021 unaudited 2021 pro-forma Total recurring revenue 6,153,000 54% 2,828,000 8,981,000 63% All other (non-recurring revenue) 5,307,000 46% ie) 5,307,000 37% Total revenue 11,460,000” 100% 2,828,000 14,
Slide 19: Income Statement
Income Statement $ 000's 12 mo ended Dec 31 2021 2020 2019 Revenues 11,460 8,253 2;536 Revenue Growth 39% 225% Cost of revenues 4,517 3,262 568 Gross profit 6,943 4,991 1,968 GP % 61% 60% 78% Earnout fair value 141 1,555 - Transaction costs = 636 - Operating expenses 5,837 4,838 32a Operating profit
Slide 20: Thank You
Thank You = Intellinetics <4 Jim DeSocio, President and CEO Joe Spain, CFO Market cap *as of 4/26/22 Intellinetics.com
Slide 21: Appendix
APPENDIX Non-GAAP Financial Measure Intellinetics uses non-GAAP Adjusted EBITDA as a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the United States (GAAP). A non-GAAP financial measure is a numerical mea
Intellinetics — Taglich Brothers 18th Annual Investor Conference (May 2022) on 6ix