Copyright © 2012 Branham Group Inc.. Wayne Gudbranson President & CEO Branham Group Inc. April 2012 CANADA’S ICT or “Digital” INDUSTRY: Back on Track

Copyright © 2012 Branham Group Inc.


Wayne GudbransonPresident & CEOBranham Group Inc.

April 2012

CANADA’S ICT or “Digital” INDUSTRY:

Back on Track and Digital Opportunities


Nearly 20 Years of Tracking Canadian Tech Industry


2012 Branham300

» 19 years, and counting…

» Premier Annual Listing –

Top ICT Co’s in Canada

» Ranked by Gross Revenues

» Print Version – Backbone Magazine

» Electronic Version – www.branham300.com


2012 Branham300

Top 250 Canadian ICT Companies


Top 250 Canadian Technology Companies: Revenues

Top 250 Canadian Technology Companies: Cumulative Revenues (2003 - 2011)

$49.94$55.83

$59.06$65.40 $64.39

$75.97$71.32 $73.93

$82.62

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

2003 2004 2005 2006 2007 2008 2009 2010 2011

Year

Reve

nues

($Bi

llion

s)

Dot-com bubble

recovery

Downturn

hits

Branham300 Revenue

RecordGrowth!!

11.75%


Top 10 Canadian ICT Companies in 2011

Rank

2011

Rank

2010

Company

2011 Revenues

($Thousands)

*% +/-

1 1 Research In Motion, Waterloo $20,245,419 A 33

2 2 BCE (wireless and Internet), Verdun, Que. $9,050,900 C 2

3 3Rogers Communications (wireless and Internet), Toronto

$7,989,760 C 2

4 4 TELUS (wireless and Internet), Vancouver $7,980,667 C 9

5 5 Celestica, Toronto $7,335,621 A 11

6 6 CGI Group, Montreal $4,323,237 A 16

7 7 Shaw Communications (Internet), Calgary $2,586,520 C 10

8 8 CAE, Montreal $1,629,000 A 7

9 12 Open Text, Waterloo $1,050,869 A 13

10 9 Softchoice, Toronto $1,022,113 C 14


Canada’s Fastest Growing ICT Companies in 2011

Rank

2011

Rank

2010

Company

2011 Revenues

($Thousands)

*% +/-

298 1 Virtutone Networks, Sherwood, Alta. $2,883 A 239

150 257 Amaya Gaming Group, Point-Claire, Que. $18,245 C 202

284 3 Novra Technologies, Winnipeg $4,045 C 186

187 4 Architech Solutions, Toronto $12,703 B 171

271 5 DevFacto Technologies, Edmonton $5,000 B 168

208 6 DataWind, Montreal $10,000 B 150

217 7CoreTech Staffing and Professional Services, Calgary

$9,143 B 134

45 89 WiLAN, Ottawa $110,629 C 114

240 12 Enflick, Waterloo $7,231 B 110

181 9 Silanis, Montreal $13,221 C 105


Top 250: Provincial Breakdown

B.C.40 Companies

16.0%

Alta.24

Companies9.6% Sask.

2 Company0.8%

Man.4 Companies

1.6%Ont.

130 Companies52.0%

Que.43 Companies

17.2%

Nfld.2 Companies

0.8%

N.B.3 Companies

1.2%

N.S.N.S.2 Companies2 Companies

0.8%0.8%


Major Canada Technology Hubs

Major Canadian Technology Cities: Revenues (2010 - 2011)

$21.84

$16.49 $16.45

$9.59

$3.86$2.87

$0.31

$22.82$21.64

$17.50

$10.37

$4.42$2.98

$0.41$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Toronto Waterloo Montreal Vancouver Calgary Ottawa Quebec City

Reve

nues

($Bi

llion

s)


Canada’s Top Tech Company


Embroiled in patent suit with NTP

Surpasses 1M subscribers globally

Major upgrades to BlackBerry to include

voice/data transmission

RIM: Hyper Growth Path

Introduces first wireless handheld, the Inter@ctive

Pager

Lists on TSX, raises $115M

Introduces first BlackBerry, a wireless handheld

computer

Lists in the NASDAQ, raises $250M

Raises $950M via share offering

> 12,000 orgs in NA use BlackBerry

Research In Motion: Revenues (1996 - 2012)

$0.01 $0.01 $0.03 $0.05 $0.08 $0.22 $0.29 $0.31 $0.59 $1.35 $2.07 $3.04$6.01

$11.07

$14.95

$19.91$18.44

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Year

Rev

enues

($Billions)

Global subscriber base hits 10M

Cumulative revenues peak, with

subscriber base surpassing 40M

Balsillie/Lazaridis resign, Heins in as CEO and will

explore all options


RIM: What’s Next

On the horizon at RIM:

» Heins - “Substantial change is what RIM needs”

» Focus - Enterprise and RIM’s global network infrastructure

» Explore software licensing deals with hardware rivals

» Although selling the company is not off the table, RIM is not aggressively pursuing this option.


2012 Branham300

ICT Industry Sectors


2012 Branham300

Canadian Software Sector


Software Sector: Canadian Leaders

Rank

2011

Rank

2010

Company

2011 Revenues

($Thousands)

*% +/-

1 1 Open Text $1,050,869 A 13

2 3 Constellation Software $788,159 C 23

3 2 Mitel $660,745 A 0

4 4 Algorithmics $170,278 C 6

5 Points.com $127,415 C 31» Open Text maintains top spot with 13% growth● Surpasses the $billion-mark in sales for the first time in company

history

» Constellation Software realizes rapid top/bottom-line growth● Fueled partially by 22 acquisitions completed in fiscal 2011● Organic growth for fiscal 2011 - 10%

» Algorithmics acquired by IBM in late-2010 for $387 million


Software Sector: Revenues

Canadian Software Sector:Revenue Breakdown (2010-2011)

$3,553,912

$4,274,673$4,080,521

$4,997,849

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Top 25 Software Companies All Software Companies

+17 %

20112010

+15 %

20112010


2012 Branham300

Canadian ICT Professional Services Sector


ICT Prof. Services Sector: Canadian Leaders

Rank

2011

Rank

2010

Company

2011 Revenues

($Thousands)

*% +/-

1 1 CGI Group $4,323,237 A 16

2 2 Softchoice $1,022,113 C 14

3 3 MacDonald, Dettwiler and Associates (MDA) $767,929 C 11

4 6 Procom Consultants Group $585,160 B 69

5 4 Hartco $440,165 C -7

» CGI once again headlines sector in 2011● Revenues up 16% largely due to $923M buy-out of U.S.-

based Stanley● More than $5B in new business signed over past 12

months

» Four of the Top 5 produced stellar results in 2011● Procom solidified itself as Canada’s IT staffing leader with

69% growth● Softchoice & MDA also generated 10%+ year-over-year

increases


ICT Prof. Services Sector: Revenues

IT Professional Services Sector: Revenue Breakdown (2010-2011)

$9,453,292

$10,653,640 $10,868,605

$9,806,530

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

Top 25 ICT Professional Services Companies All ICT Professional Services Companies

+2 %

20112010

+4 %

20112010


2012 Branham300

Canadian ICT Hardware & Infrastructure Sector


ICT HW & Infr Sector: Canadian Leaders

Rank

2011

Rank

2010

Company

2011 Revenues

($Thousands)

*% +/-

1 1 Research In Motion $20,245,419 A 33

2 2 Celestica $7,335,621 A 11

3 3 CAE $1,629,000 A 7

4 7 SMART Technologies $803,486 A 22

5 5 Aastra Technologies $689,353 C -4

» RIM’s fiscal 2011 results strengthens position as sector leader● Fiscal 2012 results already in – Sales of US$18.44B, down

7%● Revenues expected to continue to slow over next 8-12

months

» SMART Technologies surged into the 4th spot in 2011● Strengthened leadership position in interactive

whiteboard market● However, growth has stalled (down 4%) through 3Q’s of

fiscal 2012


ICT HW & Infr Sector: Revenues

ICT Hardware & Infrastructure Sector:Revenue Breakdown (2010-2011)

$29,119,420$28,225,267

$35,103,994$34,211,149

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Top 25 Hardware & InfrastructureCompanies

All Hardware & InfrastructureCompanies

+2 1 %

20112010

+21 %

20112010


2012 Branham300

Canadian x ServiceProvider Sector


x Service Provider Sector: Canadian Leaders

Rank

2010

Rank

2009

Company

2010 Revenues

($Thousands)

*% +/-

1 1 BCE (wireless and Internet) $9,050,900 C 2

2 2 Rogers Communications (wireless and Internet) $7,989,760 C 2

3 3 TELUS (wireless and Internet) $7,980,667 C 9

4 4 Shaw Communications (Internet) $2,586,520 C 10

5 5 MTS Allstream (wireless and Internet) $840,026 C 6

» Top 5 xSP firms maintained their leadership positions in 2011● Big Three – BCE, Rogers & Telus – continue to dominate● Shaw Communications only player to generate >10%

growth

» Impending wireless spectrum auction could shakeup sector● Rules cap how much spectrum Big Three can buy● Also relaxes foreign investment restrictions


x Service Provider Sector: Revenues

x Service Providers Sector:Revenue Breakdown (2010-2011)

$29,886,594$29,374,627$31,652,514$31,153,858

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

Top 10 xSP Companies All xSP Companies

+6 %

20112010

+6 %

20112010


2012 Branham300

Top 25 Up and Comers



» Comprised of firms established within the past three years

» Companies are not ranked; selected based on innovation, creativity and long-term potential

» Represents the innovative companies that will lead the industry forward

ON52%

QC12%

BC16%

AB8%

NB4% NS

8%




2012 Branham300

Top 25 ICT Multinationals


Top 25 ICT Multinationals


Top 10 ICT Security Companies


Identity Management

Identity management is a

Key Issuein information

securityGovernments & Corporations are using to Provide

and Control access to places and services (bank

accounts, buildigs and computer applications)

Identity management has become a key issue in information security

Governments and businesses are using identity management systems

to provide and control access to places and services such as bank accounts, buildings and computer

applications.


Identity Management

Identity management is a

Key Issuein information

securityGovernments & Corporations are using to Provide

and Control access to places and services (bank

accounts, buildigs and computer applications)

Identity theft is increasing

With it, the risk intensifies that not only data but an individual's privacy and

reputation might be compromised.


Identity Management

An individual's identity arises in two ways: biologically

& socially

Biometric identity relates to things we

inherit from our parents, such as DNA,

fingerprints, retina patterns

Digitized biometric identity management interesting to

state agencies such as immigration, police,

healthcare, others that need to determine an individual's

identity accurately and quickly.

We also have a wide range of social

identities. These arise from our interaction

with others.


Identity Management

Creating a social identity requires an authority to accept

liability for certifying that the person concerned is in fact the individual they say they are.

That requires a verifiable audit trail

Parents register the birth of a child & medical records should confirm the mother's pregnancy & the child's birth

Only a match of the baby's DNA with that of both its parents will prove to a court a child's identity and who his or

her parents are

Identity management has led governments to seek joining

together an individual's social & biometric identities.

The aim - greater certainty about the authenticity of an

identity..

Example – UK Government’s

controversial intention to introduce biometric-based identity cards to

all citizens


Identity Management

In the workplace, companies are increasingly using a person's role plus their identity to provide

access to a firm's information system, but to limit that access to only those systems to which

the individual needs access.

In the past, information depended on a physical device, such as a

magnetic card, or a logical key, such as a password. These single factor

authentication models are Increasingly being replaced by two, three or even four factors, or credentials, to authenticate the user's identity and allow access.

There is a vibrant industry devoted to identity authentication

and access technologies (fingerprint readers, retina

scanners, palm readers). There is an equally vibrant criminal

fraternity devoted to finding ways around such systems.

Overall, more technology innovation will help - huge

opportunityUser education has to

increase people still supplier individual security data for a

chocolate bar.


2012 Branham300

Key Industry Trends


Key ICT Industry Trends

Market conditions improving,

but are still fragile.



The buy-side remains slow, with very long sales-cycles



ICT Industry is facing a skills shortage,

we need top talent to succeed.


ICT Industry Trends

The Canadian start-up scene is hot.

Entrepreneurs are rock stars.


Key Message

A Call To Action:

● Government has acted, but must do more.

● Tech communities build technology hubs, which provide a foundation for an industry.


Key Message

A Call To Action:

● Young entrepreneurs = tomorrow’s leaders. Invest in them heavily today.

● Be the next $billion-dollar company.


Key Message

Everything is an ICT process:

Technology is the differentiator.


Q&A


Contact

J. Wayne Gudbranson

President & CEOTel: (613) 745-2282 ext 113 [email protected]

www.branhamgroup.com


Documents

Copyright © 2012 Branham Group Inc.. Wayne Gudbranson President & CEO Branham Group Inc. April 2012 CANADA’S ICT or “Digital” INDUSTRY: Back on Track