TIE Kinetix 31 March AGM 2017

AGENDA

1. Financials 2016 – Michiel Wolfswinkel

• Operational performance 2016

• Outlook 2017

• Balance sheet development, equity

2. Operations 2016 – Jan Sundelin

3. Outlook – Jan Sundelin/Michiel Wolfswinkel

Performance in FY 2016

Revenue decreased: • TFAG revenue guarantee • German portals • KPN/Tmob contracts • EU projects

Profitability increased: • Lower indirect costs • No restructuring costs

In € x 1.000

2016 2015 Change

Total revenue 20.250 22.263 (2.013)

Total cost of sales (9.515) (11.565) 2.050

Gross margin 10.735 10.698 37

Total Operating expenses (8.647) (8.839) 192

EBITDA (excl. one-time expenses) 2.088 1.859 229

One-time expenses (22) (1.993) 1.970

EBITDA 2.065 (134) 2.199

EBIT 786 (1.390) 2.176

Total Consolidated

Operational performance last three years

Transition from services to solutions: • Ending non strategic business • Building core strategic FLOW

2016 2015 2014

Revenue 19.699 20.398 19.360

EBITDA (normalized) 2.976 2.035 2.29015% 10% 12%

EBITDA 2.954 1.363 1.56315% 7% 8%

EBIT 1.676 108 7089% 1% 4%

# of employees 129 136 148

Operational Performance (excl. EU Projects)

Revenue by Business Line

Revenue at risk in FY 2017: E-commerce € 1,0 - 1,5 million Demand Generation € 1,0 - 1,5 million EU Projects upto € 0,3 million

Business Line 2016 2015 YoY-last year outlook

Integration 10,9 9,8 12-15% growth

E-Commerce 2,3 3,2

Portals 0,3 0,9 decline EOL

Non-portals 2,0 2,3 decline decline

Analytics&Optimization 3,3 3,3 flat growth

Demand Generation 4,3 4,6

Portals 2,1 2,9 decline decline

Non-portals 2,2 1,7 growth growth

EU Projects 0,5 1,9 decline decline

Transition: Value brought by businesses

What did we get from:

• EU Projects ? -> FLOW modules in Supply Chain Integration

• KPN/Tmob contracts ? -> FLOW modules in Lead&Sales conversion

(Mambo 5: investment € 1.4 million

EBITDA € 3.1 million - YTD Q1 2017)

• Portal business? -> Hybrid Hosting / public cloud offering

Revenue by type

Consultancy lower: T-Mobile business, A&O, portals, TFAG business SaaS higher: 7% increase dispite T-Mobile, A&O, portals, TFAG business

revenue type FY 2016 FY 2015 YoY growth

License 906 804 13%

Maintenance and support 2.988 3.019 -1%

Consultancy 5.794 6.897 -16%

SaaS 9.818 9.180 7%

Total 19.507 19.900 -2%

other/EU 744 2.263 -67%

Total 20.251 22.163 -9%

Balance sheet developments

Balance sheet 2016 2015 2016 2015

Asset side Liability side

IFA 3.383 2.879 Loans 8 1.165

cash 1.187 692 Bank overdraft 0 692

Short term debt 34 860

Loans redeemed Bank overdraft redeemed Strong cash position Working capital facility (1,25 mln undrawn)

Shareholder equity: 27% increase from € 3,51 per share (2015) to € 4,47 per share (2016)

FLOW Development

2016: year of centralization of development efforts:

All development under central management of CTO/no more local dev.

All dev. resources for FLOW. No more EU projects (only 1 fte).

In total 17.820 dev hours spent on FLOW

- in NL (11.405),

- in US/Vietnam (4.605)

- in Germany (1.807)

HAND OVER TO JAN SUNDELIN

Revenue Development of SaaS and Maintenance

0

2.500

5.000

7.500

10.000

12.500

15.000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

SaaS

Maintenance

Mid term Goals & Strategy set in march 2015

3 year goals 2018

To become a true global software solutions provider.

To be a technology leader in the field of information exchange within the

supply chain.

To generate annual revenues of at least € 25mln.

TIE Kinetix strategy

Further globalize operations and sales activities through acquisitions and

partnerships.

Continue to focus on technology and research and development.

Further streamline and optimize the internal organization.

12

Annual Goals & Strategy FY 2016

Targets and Priorities for the coming financial year:

» Grow the SaaS revenue year on year. YES

» Continue to Improve our 3 year order contact value in better margin. YES

» Target a minimum of 30% new customer order intake in 2016 vs 2015. NO

» Expand our Google partnership to Adwords. YES

» Introduce a NEW FLOW product offering in all our existing markets. YES

» Down size further EU development grants. YES

» Start moving customers application and take down hosting cost world wide. YES

» Introduce minimum of 5 new SaaS product apps in FLOW. YES

13

The Next Generation Supply Chain Integration

Our supply chain integration technology has transformed the digital supply chain for 30 years:

We enable the seamless integration of all data, documents, content and information through (independent) suppliers, trading partners and channel partners connected in any supply chain;

We ensure a seamless integration with the full technology stack of our customers;

Our solutions maximize revenue potential with minimal efforts for channel partners.

Icoontjes er omheen

Great innovations come from The Netherlands too!

Icoontjes er omheen

Great innovations come from The Netherlands too!

Great innovations come from The Netherlands too!

Google AdWords

for Channel

Google AdWords for the Channel

+

=

“Innovation is taking two things that already exist and putting them

together in a new way” - Tom Freston (Viacom)

Large Enterprises

SMB business

SoHo

(Brands)

Resellers

Partners

75%

1:n 1:1

Google AdWords for the Channel – What is it?

1) End users using Google Search get relevant Ad’s from local

dealers close to them

2) A click on the Ad will take the end-user to a relevant

landing page on the local dealer website

3) Brands and suppliers can centralize Google AdWords

Campaigns and have their dealers participate

4) Dealers don’t have to do anything for this, only follow up

on the leads or receive the sales

Demand Generation

Video - How does it work?

Watch Video

Reporting

New innovations for The Netherlands

B2B and B2G

E-Invoicing – EDI PEPPOL

Integration

Insights about the B2G E-Invoice opportunity Europe!

Integration

Insights: Why B2G E-Invoicing in Europe?

€ 240 billion will be saved in Europe in 6 years

Support of the European Commission

“Directive 2014/55/EU”

Public sectors in BLG, FR, GE and NL started to

implement because of Directive

E-Invoices has been widely adopted in

pioneering Scandinavian countries

Denmark, Finland, Norway, Sweden

PEPPOL!

Integration

Insights: Invoice numbers in The Netherlands

Numbers for Netherlands are based on 2015

Total number of B2G Invoices ≈ 11.7 million per year 4.6 million Euro

Total number of B2B Invoices ≈ 1.1 billion per year 431 million Euro

BREAKDOWN

– Municipalities ≈ 6.029.000 per year

– Central Government ≈ 1.569.000 per year

– Other Governmental org. ≈ 4.071.000 per year

What % of those are electronic invoices

BREAKDOWN

– Municipalities ≈ 2% electronic invoices

– Central Governments ≈ 13%-18% electronic invoices

– Other Governmental org. ≈ 1% electronic invoices

Integration

TIE Kinetix has been actively participating in standardization

initiatives for many years EDI & E-Invoicing

UN/CEFACT: United Nations Centre for Trade Facilitation and

Electronic Business act as intergovernmental body

of the UNECE (United Nations Economic Commission for Europe)

www.unece.org

GS1: GLOBAL SUPPLY CHAIN

PEPPOL: PAN EUROPEAN PUBLIC PROCUREMENT ON LINE

www.peppol.eu/about_peppol/background-peppol-project

SimplerInvoicing: SIMPLIFY E-Invoicing in Netherlands

www.simplerinvoicing.org

EESPA: EUROPEAN E-Invoice SERVICE PROVIDER ASSOCIATION

www.EESPA.eu

Integration

Video - FLOW B2B and B2G EDI & E-Invoicing

Watch Video

Analytics & Optimization

Analytics & Optimization

Google GSA Optimizely Searchmetrics Google Analytics and Big Query

Integration Optimization

Report

Analytics Business Intelligence

Data Warehouse

Community Dashboard

Size of Community

Marketing, Sales and

Integration

communities

Adoption KPIs

Conversion KPIs

Value of the solutions

TIE Kinetix Outlook

Mid Term outlook

Integration: organic growth >> than market growth through:

• leading position in BtG (E-invoicing to government)

• Vertical focus (FOOD / AUTOMOTIVE / Software / Business Services)

• International expansion through member of CEFACT (UN) and Peppol (EU) standards

• Partnership with leading ERP (Epicor, Exact, CGS, etc)

• Partnership with Objective Lune for new markets.

• PtP (Purchase to Pay) application Smart PDF.

Mid Term outlook

AdWords: high volumes / lower margin

• ‘Google’ drives new accounts

• ‘on-line add market’ brings new account and markets

• Upsell potential: from AdWord to FLOW

• Vertical focus

• Unify / Xerox / Michelin

Serious revenue potential; however at lower margins

Mid Term outlook

Hosting and portal revenue: non strategic

• Customers’ move from private to public accelerates

• maintain existing accounts if/where possible

• Limited role for TIE Kinetix

SaaS / business application revenue:

• Significant monetary potential

• Customer migration requires serious efforts

Mid term ambition:

100% revenue growth, with margin % decline:

1. loss of non strategic revenue (≈ € 3 million in 2017)

2. Replace with FLOW

• Sales fte’s solution selling

• Mass market (self service / low prices)

• Deep penetration in less verticals

3. Funding to scale (organic / non organic)

Alternative: find partner to scale

Questions

North America – T 1-800-624-6354 – www.TIEKinetix.com

Demand Generation | E-Commerce | Integration | Analytics & Optimization

Thank you!