Pivot technology solutions agm june 17 2014_final

Pivot| A Leading Multi Vendor IT Solutions Provider June 17, 2014 TSX-V: PTG

Annual General Meeting Fiscal 2013

Pivot| A Leading Multi Vendor IT Solutions Provider 2

Agenda

Formal Session Michael Flinn, Chief Commercial Officer & Secretary

Business Overview Warren Barnes, Chief Executive Officer

The Year in Review Warren Barnes, CEO

Financial Overview Kerri Brass, Chief Financial Officer

Looking ahead Warren Barnes, CEO

Q&A

Pivot| A Leading Multi Vendor IT Solutions Provider June 17, 2014

Annual General Meeting Fiscal 2013


Business Overview Warren Barnes, CEO


We design, build, implement and service complex IT solutions for enterprise customers of all sizes

We manage our customers’ technology environment


Communication, data management, security,

storage , wireless, contact center

Cloud, mobility, data center solutions/systems, managed

services

Servers, PCs & peripherals, storage, routers, mobile and

handheld devices

Data center solution systems, storage, security,

networking and compliance

Critical mass through four strategic business units

Integrated national platform

Multi-sector, multi-application capabilities

275 engineers

Shared services centre of excellence in

Galway, Ireland


Thousands of providers with thousands of

solutions

Today’s IT challenge

Technology changes Exponentially

Technology management is deciding which changes are adopted

?

?

Organizations change logarithmically


Markets

Business trends point the way

IT becomes an agile service broker Firms shed yesterday’s data limitations Digital experience delivery makes (or breaks) firms Firms learn from the cloud and mobile

Dynamic business environment in data centers, virtualization and networking

Source: Forrester 2014 Trends


The Pivot solution: Multi-Vendor Solutions Provider

Customer deals with one solutions-provider only

Vendor agnostic =

technology choice

Scale to implement nationwide, complex integrated solutions

Pivot manages entire process:

design, build, implement, service & maintain


Differentiation:

MVSP model Customer relationships Embedded engineers Quality & reliability Innovation

Pivot - the trusted technology advisor


Extensive vendor network

Pivot as a critical sales channel for vendors

Access to new technologies

Pricing leverage across multiple vendors


Accolades

2013 & 2014 Cisco South Area

Commercial Partner of the Year

Platinum Partner Hitachi Data Systems

2013 elected to CRN’s Tech Elite 250 NetApp Star Partner


Deep relationships with blue-chip customer base

>2,000 customers

>70% of revenues from Fortune 100 companies


The year in review


A year of focus

From acquisition-driven growth to organic growth


And accomplishments

Growing customer list

Increased share of customers’ IT spend

Expansion of services business

Margin improvement


But not without its challenges

Exceptional one-off customer

project in prior year

Major customer product transition

Pivot| A Leading Multi Vendor IT Solutions Provider

Listing on TSX-V

New management team

Strong growth of higher-margin services business

Integration strategy

Consolidated financing facility

2013 Highlights


2013 Financial Review Kerri Brass, CFO


Revenues

Consistent sequential growth Growth driven by services offering and customer penetration Excluding two largest customers: Q4 2013 organic growth rate of 29% versus Q4 2012

2012 challenging comparable • Exceptional one-off customer project in 2012 • Major customer product transition

Contribution to revenues from services business • 2012: 5.5% • 2013: 9.4%

1,429,579 1,240,222

2012 2013

Year-on-Year ($ '000s)

All numbers in US $

254,284

321,677 326,257 338,004

Q1 2013 Q2 2013 Q3 2013 Q4 2013

Quarter-on-Quarter ($’000s)


Gross margins

Strong improvement over 2012 due to growth of services business, including impact of Sigma acquisition (July 2012)

High-volume lower-margin accounts affecting gross margin

Year-on-Year Quarter-on-Quarter

9.8%

11.3%

2012 2013

11.8%

11.5%

11.2%

10.8%

Q1 2013 Q2 2013 Q3 2013 Q4 2013


Adjusted EBITDA

2013 adjusted EBITDA decline reflects lower revenues compared to 2012

Year-on-Year ($’000s) Quarter-on-Quarter ($’000s)

Q4 affected by high-volume lower-margin accounts Strength throughout year from growth of services business

37,823

27,288

2012 2013

All numbers in US $

3,409

7,821 8,339

7,719

Q1 2013 Q2 2013 Q3 2013 Q4 2013


Services – a success story

16,244

26,895

32,942 35,608

Q1 2013 Q2 2013 Q32013 Q4 2013

78,180

111,689

FY 2012 FY 2013

Full services portfolio • Professional services: design &

implementation • First Call: help desk • Managed Services: monitoring • Maintenance & support

Contribution of services business to revenues

0.0%

5.0%

10.0%

15.0% 2012 2013

Q1 Q2 Q3 Q4 2012 2.6% 3.3% 6.3% 8.8% 2013 6.4% 8.4% 10.1% 10.5%

Year-on-Year Revenues ($’000s) Quarter-on-Quarter Revenues ($’000s)

All numbers in US $


Q1 2014 – Strong start to the year

11.8%

11.1%

Q1 2013 Q1 2014

Gross margin

3,409

6,206

Q1 2013 Q1 2014

Adjusted EBITDA ($ 000's)

82.0%

254,284 319,327

Q1 2013 Q1 2014

Revenues ($ 000's)

Exceeded internal expectations 42% organic growth excluding two largest customers Gross margin impacted by high-volume lower-margin product sales Continued expansion of services business

25.6%

All numbers in US $

Pivot| A Leading Multi Vendor IT Solutions Provider

Moving forward Warren Barnes, CEO


2014 – Moving forward Objectives • Grow the business

• Enhance profitability

Strategy • Deepen customer relationships • Innovate • Enhance cross selling through integration • Expand services business • Expand international business • Strategic M&A

Operational excellence

Product innovation

Customer intimacy


Q&A

TSX-V: PTG

Investor Relations

Pivot technology solutions agm june 17 2014_final