Welcome!

Welcome!
Annual Meeting of Shareholders – 2009
Dave Brereton
Executive Chairman of the Board
September 10, 2009
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Your Supply Chain Matters.™
TECSYS Inc. – Board of Directors
• Dave Brereton
Executive Chairman of the Board – TECSYS Inc.
• Peter Brereton
President and CEO – TECSYS Inc.
• Frank J. Bergandi
Business Consultant
• André Duquenne
President, T2ic Inc.
• Vernon Lobo
Managing Director, Mosaic Venture Partners
• Steve Sasser
Co-Founder and CEO, Merlin Technologies
• David Wayland
Corporate Secretary, MRRM Inc.
• Berty HoHo-WoWo-Cheong
Vice President, Finance and Administration,
CFO and Secretary – TECSYS Inc.
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Agenda
Procedural
Opening of the Meeting
Nomination of Scrutineers
Notice of Meeting
Report of Scrutineers
Resolution for an Exemption From the Reading of the Minutes
Receiving Financial Statements and the Auditors’ Report
Election of Directors
Appointment of Auditors
Termination of Shareholders’ Meeting
CEO’s Remarks on FY 2009
CFO’s Remarks on FY 2009 Financials
Q1, 2010 Results
Question and Answer Period
Luncheon
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Forward Looking Statements
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 but not
limited to future economic conditions, the markets that
TECSYS Inc. serves, the actions of competitors, major new
technological trends and other factors beyond the control
of TECSYS Inc., which could cause actual results to differ
materially from such statements.
All names, trademarks, products and services mentioned are
registered or unregistered trademarks of their respective
owners.
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Nomination of Scrutineers from
Computershare Investor Services
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Notice of Meeting
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Report of Scrutineers
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Resolution for an Exemption From
the Reading of the Minutes of the
Last Shareholders’ Meeting
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Receiving of Financial Statements and
Auditor’s Report
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Election of Directors
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Appointment of Auditors
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Termination of
Shareholders' Meeting
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CEO’s Remarks on FY2009
Peter Brereton
President & CEO
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TECSYS Today - Summary
Market–leading provider of supply chain execution
solutions to the healthcare & vertical markets in highvolume distribution
5th* largest Canadian Healthcare solution provider
19th* largest Canadian software company
Over 500 customers
Strong financially:
Revenue growth since 2003:10% (CAGR)
Ten consecutive quarters: earnings from operations
Strong balance sheet, good liquidity, virtually no debt,
consistently generating cash from operations
Profitable
* Source: Branham Group 2009
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FY 2009 Good Performance In Spite of the Economy
Won significant business from new and existing
clients
Deployed a record number of solutions
Improved market share
Released major new version of our flagship
product EliteSeries
Grew revenue, improved cash and profitability
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FY 2009– Financial Snap Shot
CDN $000s Except for ROE & EPS
KPI
2009
Revenue
2008
% Change
41,017
39,495
4
EBITDA
3,138
2,607*
20
Earnings from operations
2,181
2,855*
(24)
0.12
0.09
33
20,360
19,247
6
10.2
8.3
23
Cash from operations
3,799
2,754
38
Cash & short-term investments
7,835
5,693
38
13,374
11,417
17
EPS
Backlog
ROE %
Recurring revenue
* Net of non-refundable tax credit
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FY2009 – New Business
Won the business of 21 new customers
University
of Illinois
Welder Services Co.
We also signed a significant number of
agreements with existing clients
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FY2009 - Solutions Deployed At Customers
Record number of
deployments in a
year
Over 70 supply
chain execution
solutions across all
verticals
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Market-Leadership
Healthcare Supply Chains
Segment
Position
Hospital Supply Networks (IDNs)
Market-Leading in
North America
Major Customers
Segment
Position
Specialty Drug Distribution
Market-Leading
Fortune 100 Customers
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Market-Leadership
Parts Distribution Supply Chains
Segment
Position
Caterpillar Dealers
Market –Leading, 16% Market Share
in North America
Some Major Customers
Segment
Position
Auto-Parts
Canadian Player
Major Customers
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Market-Leadership
High-Volume Distribution
Segment
Position
High-Volume Distribution
Market-Leading
Major Customers
Segment
Position
Packaged Gas & Welding Supplies
Emerging Market-Leader
Representative Customers
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Stronger Product Portfolio and Technology
Released EliteSeries 8
The Industry’s most dynamic product
Java Technology & TECSYS’ iTopia®
Revolutionary RF Capabilities
Personalized auto-search
Graphical images and embedded
applications on handheld-screens
Integrated warehouse and transportation apps
Significant efficiency in outbound order processing
Dynamic workforce management
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CFO’s Remarks on FY 2009
Berty Ho-Wo-Cheong
Vice-President, Finance & Administration,
CFO and Secretary
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Table of Contents
Revenue
Sources of Revenue
Geographic Sources of Revenue
Recurring Revenue
Consolidated Statement of Earnings
Headcount by Function
Cash Flow
Balance Sheet
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Revenue
In Millions of CDN$
45.0
Other, 1.1
Other, 1.0
40.0
35.0
Maintenance, 7.6
+ $1.3M or 17.6%
Maintenance, 8.9
Service, 13.8
+ $1.5M or 10.6%
Service, 15.3
3rd-party products, 9.5
- $0.1M or -0.7%
Licenses, 7.6
- $1.3M or -17.2%
30.0
25.0
20.0
15.0
10.0
5.0
3rd-party products, 9.4
Licenses, 6.3
2008
Total 39.5
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2009
Total 41.0
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Sources of Revenue
FY 2009
FY 2008
Reimbursable
Expenses
3%
Reimbursable
Expenses
3%
Products
38%
Products
43%
Services
54%
Services
59%
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Geographic Sources of Revenue
FY 2009
FY 2008
Other
2%
Other
1%
U.S.
45%
Canada
46%
U.S.
53%
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Canada
53%
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Recurring Revenue
In Millions of CDN$
2009
2008
$11.4 , 2 9 %
$13 .4 , 3 3 %
$2 7.6 , 6 7%
$2 8 .1 , 71%
Recur ring (most ly maint enance)
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Licenses, 3rd-part y, and services
Recur r i ng (mostl y mai ntenance)
Li censes, 3r d-par ty, and ser vi ces
Your Supply Chain Matters.™
Consolidated Statement of Earnings
In 000’s of CDN$
2009
2008
Revenue
$
%
41,017 100%
$
%
39,495 100%
Cost of sales
23,292
57%
21,291
54%
9%
Gross margin
17,725
43%
18,204
46%
-3%
Sales & Marketing
General and Administration
Research and Development
Others
Operating expenses
6,361
3,607
4,202
1,374
15,544
16%
9%
10%
3%
38%
6,104
3,519
4,437
1,289
15,349
15%
9%
11%
3%
39%
4%
3%
-5%
7%
1%
Earnings from operations
2,181
5%
2,855
7%
-24%
Net earnings
1,587
4%
1,263
3%
26%
EBITDA
3,138
8%
2,607
7%
20%
EPS
$
0.12
$
0.09
Note: 2008 R&D excludes $641 of non-refundable federal tax credits
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Change
4%
Headcount by Function
2008
2009
General &
Administration, 32,
13%
General &
Adm inistration, 31,
13%
Marketing, 10, 4%
Marketing, 12, 5%
Sales, 17, 7%
Sales , 17, 7%
Services , 134, 55%
R&D, 52, 21%
Services , 129, 55%
R&D, 46, 20%
Total 245
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Total 235
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Cash Flow
In 000’s of CDN$
2009
$
3,799
Operating cash flow
Capex (except acquisitions)
(467)
Free cash flow
Weighted average number of shares
31
(324)
3,332
% of revenue
Free cash flow per share
2008
$
2,754
2,430
8.1%
$
0.26
12,782,738
% Change
38%
44%
37%
6.2%
$
0.18
43%
13,325,209
-4%
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Balance Sheet
As at April 30, 2009 and 2008
In 000’s of CDN$
Assets
2009
Liabilities & Equity
2008
2009
4,000
7,835
Cash & Short-term
Investments
Bank Advances
4,003
Accounts Payable
& Other Liabilities
5,996
5,693
5,387
9,610
Accounts Receivable
& WIP
2,621
ITC’s and Other
Current Assets
2,546
4,274
Restricted Cash
& ABCP
4,717
7,126
Property & Equipment,
Intangible Assets,
& Other
7,470
31,446
Total
30,102
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2008
9,676
6,249
Deferred Revenues
15,830
Shareholders’ Equity
31,466
Total
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4,830
15,273
30,102
Q1, 2010 Results
Peter Brereton
President & CEO
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Q1, 2010 - Revenue & Margins
CDN $000s Except For %
Revenue
Q1, 2010
Q1, 2009
Q1, 2008
Total
9,198
10,237
8,347
Products
2,946
4,445
2,893
Services
5,991
5,549
5,218
Margins
Q1, 2010
Q1, 2009
Q1, 2008
Total
46%
39%
44%
Products
63%
49%
58%
Services
40%
34%
38%
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Q1, 2010 Business
Agreements with existing and new customers
Bolts Plus, Colville Fasteners, David C. Cook, Creative Education, Accent
Décor, Daveco Agencies, Amplis Photo, Candym Enterprises, New York
City Department of Health and Mental Hygiene, Texas Welding & Gas Co.
Completed 20 Software Implementations at the following
Customers
Canon USA, Rehrig Penn Logistics, Orlando Regional Health System,
Canaropa, SCP Spain, Danson Décor, Federated Group, Affordable Parts,
Bolts Plus, Acme Neon, The Fern Group, Ten Thousand Villages, H.A.
Kidd, Kikkerland, PAXX Industrial, Candym Enterprises, Creative
Education, Empire CAT, Warren CAT,
CAT, Nortesco, XEROX
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Q1, 2010 - Earnings
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TECSYS’ Board Declares Dividend
Due to TECSYS’ continued positive results and
cash generation, and in accordance with the
Company’s Dividend Policy, the Board of
Directors has declared:
The semi-annual Dividend will be increased
from 2 cents/share to 2.5 cents/share and will
be paid on October 7, 2009 to shareholders of
record on September 23, 2009
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Q1, 2010 Financial Highlights
CDN $000s Except for ROE & EPS
KPI’s
Q1, 2010
Revenue
Q1, 2009
Q1, 2008
9,198
10,237
8,347
EBITDA
455
656
313
Earnings from operations
300
266
148
0.01
0.02
0.01
18,436
18,976
17,088
ROE %
2.7
7.1
2.0
Cash from operations
442
47
32
7,975
5,496
7,113
12,832
11,677
N/A
EPS
Backlog
Cash & short-term investments
Recurring revenue
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Question
&
Answer
Period
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Thank You!
Annual Meeting of Shareholders – 2009
Your Supply Chain Matters.™
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