Slide 1: Investor Presentation June 2016
TECHNOLOGY | INNOVATION | SOLUTIONS Investor Presentation June 2016
Slide 2: Forward-looking Statements & Non-GAAP Financial Information
TECHNOLOGY | INNOVATION | SOLUTIONS Forward-looking Statements & Non-GAAP Financial Information 2 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: Key Financial Statistics
TECHNOLOGY | INNOVATION | SOLUTIONS Key Financial Statistics 3 •Adjusted EBITDA ^ Market Stats Stock Price (6/24/16) $10.27 Diluted Shares Outstanding 22.5M 52 Week High $12.56 Diluted Market Capitalization $231M 52 Week Low $7.97 Total Debt (at 3/31/2016) $0.3M Average Daily Volume (3 months) 30,29
Slide 4: Our Mission and Vision
TECHNOLOGY | INNOVATION | SOLUTIONS Transform the guest services experience in the hospitality industry. Build lasting connections with our team, our customers, our stakeholders and our communities. Our Purpose Our Vision Our Mission and Vision 4
Slide 5: Established Iconic Product Offerings: Interfaced, Not Common Platform
TECHNOLOGY | INNOVATION | SOLUTIONS Established Iconic Product Offerings: Interfaced, Not Common Platform 5 Note: Revenue contribution figures represent percentage of fiscal year ended March 31, 2016. Workforce Management (Staff) 1% of Revenue Property Management (Book, Arrive, Order) 24% of Revenue
Slide 6: Key Differentiators
TECHNOLOGY | INNOVATION | SOLUTIONS 6 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 7: rGuest Technology Development Strategy & Plan
TECHNOLOGY | INNOVATION | SOLUTIONS 7 rGuest Technology Development Strategy & Plan • Shifting focus from product-centric solutions with a high number of software modules and operating silos to integrated platform centric solution for Lodging, F&B and Payments applications • Designed to run as a Sof
Slide 8: rGuest Platform & Product Offering Overview: End-to-End Solutions
TECHNOLOGY | INNOVATION | SOLUTIONS 8 rGuest Platform & Product Offering Overview: End- to-End Solutions 8 Agilysys’ Unified Platform for Delivering its Next Generation Offerings Promote Staff Survey Promote Supply Seat Reserve Stay Buy Stay Upsell Profile Analyze NextGen Offering Today’s Offering G
Slide 9: rGuest: Managing the Guest Experience
TECHNOLOGY | INNOVATION | SOLUTIONS 9 rGuest: Managing the Guest Experience Current Offering Future Offering 9 RESERVE/BOOK 1 ARRIVE/PLAN 2 ORDER/ENJOY 5 ORDER/REST 4 SIT 3 DEPART 6 REFLECT 7 rGuest Seat 1 rGuest Pay RESERVE/BOOK rGuest Seat 3 SIT rGuest Buy 4 rGuest Stay ORDER rGuest Pay 5 4 rGuest
Slide 10: rGuest Platform Value Proposition
TECHNOLOGY | INNOVATION | SOLUTIONS 10 rGuest Platform Value Proposition Guest Recruitment, Improve Recruitment Personalized Service, Strengthen Connection Revenue & Profit Growth, Increase Wallet Share Optimize Operations, Reduce Costs 10
Slide 11: Delivering Vision Through the rGuest Platform
TECHNOLOGY | INNOVATION | SOLUTIONS 11 Delivering Vision Through the rGuest Platform Common User Interface Shared Configuration Common Services Cloud technology Open architecture Rich Integrations • Common services allow rapid innovation across the Agilysys suite of applications • Common User Interf
Slide 12: Product Status
TECHNOLOGY | INNOVATION | SOLUTIONS 12 Product Status (POS) Limited Release 12 (PMS)
Slide 13: Total Addressable Market is Growing
TECHNOLOGY | INNOVATION | SOLUTIONS Total Addressable Market is Growing 13 $14B+ Market Opportunity $4.3B Addressed Market AGYS Product roadmap significantly expands total addressable market Industry growth expected at 5-7% annually (commissioned IHL and STR study)
Slide 14: Significant Room for Growth in Markets We Serve
TECHNOLOGY | INNOVATION | SOLUTIONS Significant Room for Growth in Markets We Serve 14 $4B in annual spending on existing software services and recurring software maintenance for current product portfolio 53% 23% 14% 10% Revenue Mix by Market (FY16*) Gaming Pinnacle Entertainment Sands Casino & Reso
Slide 15: Historical Financial Results
TECHNOLOGY | INNOVATION | SOLUTIONS Historical Financial Results 15 All numbers in thousands, except per share data *FY13 & FY14 results reflect the sale of RSG and UK entity ^ Non-GAAP measure, see reconciliation on slide 21 & 22 $94,008 $101,261 $103,514 $120,366 $0 $20,000 $40,000 $60,000 $80,000
Slide 16: Recurring Revenue Contribution Focus
TECHNOLOGY | INNOVATION | SOLUTIONS Recurring Revenue Contribution Focus 16 FY13 FY14 FY15 FY16 52.2% 52.5% 54.1% 50.0% 33.0% 34.2% 30.8% 34.4% 14.8% 13.3% 15.1% 15.6% Product Mix (as % of total revenue) Recurring Revenue (support, maintenance & subscription) Product Revenue Professional Services Re
Slide 17: Strong Balance Sheet
TECHNOLOGY | INNOVATION | SOLUTIONS Strong Balance Sheet 17 Consolidated Balance Sheet (in thousands) March 31, 2016 March 31, 2015 Cash, cash equivalents and marketable securities $60,608 $75,067 Other current assets 34,893 29,950 Long-term assets 89,656 76,508 Total assets $185,157 $181,525 Curren
Slide 18: Recent Product and Corporate Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS Recent Product and Corporate Highlights • FY16 revenue up 16% Y/Y and adjusted EBITDA up over 250% • Total contract value of bookings of subscription-based business increased more than 150% Y/Y • SaaS revenue increased 29% Y/Y • POS end point installations grew ap
Slide 19: Fiscal 2017 Outlook
TECHNOLOGY | INNOVATION | SOLUTIONS Fiscal 2017 Outlook* • Revenue of approximately $132 - $136 million compared to fiscal 2016 revenue of $120 million • Forecast anticipates greater than market rate of growth • Expect bookings will continue to favor subscription-type contracts • Gross margin is exp
Slide 20: Investment Highlights
TECHNOLOGY | INNOVATION | SOLUTIONS Investment Highlights 20 • Agilysys’ solutions drive substantial customer benefits including increased revenue, reduced cost, enhanced guest experiences, and improved morale • Significant growth opportunities through cross-selling, next-gen SaaS product rollout, n
Slide 21: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS Non-GAAP Reconciliation 21 2013 2014 2015 2016 Net (loss) income (1,298)$ 17,097$ (11,497)$ (3,765)$ (Loss) Income from discontinued operations, net of taxes 4,916 19,992 - - Loss from continuing operations (6,214) (2,895) (11,497) (3,765) Income tax (benefit) exp
Slide 22: Non-GAAP Reconciliation
TECHNOLOGY | INNOVATION | SOLUTIONS Non-GAAP Reconciliation 22 2014 2015 2016 Operating activities: Net cash provided by (used in) operating activities from continuing operations 1,384$ (2,186)$ 7,218$ Non-recurring cash items: Payments for restructuring, severance and other charges 1,741 1,348 616