1. Pivot| A Leading Multi Vendor IT Solutions Provider
June 17, 2014TSX-V: PTG
Annual General Meeting
Fiscal 2013
2. 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
3. Pivot| A Leading Multi Vendor IT Solutions Provider
June 17, 2014
Annual General Meeting
Fiscal 2013
4. Pivot| A Leading Multi Vendor IT Solutions Provider
June 17, 2014
Business Overview
Warren Barnes, CEO
5. Pivot| A Leading Multi Vendor IT Solutions Provider 5
We design, build,
implement and service
complex IT solutions
for enterprise
customers of all sizes
We manage our customers’
technology environment
6. Pivot| A Leading Multi Vendor IT Solutions Provider 6
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
7. Pivot| A Leading Multi Vendor IT Solutions Provider 7
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
8. Pivot| A Leading Multi Vendor IT Solutions Provider 8
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
9. Pivot| A Leading Multi Vendor IT Solutions Provider 9
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
10. Pivot| A Leading Multi Vendor IT Solutions Provider 10
Differentiation:
MVSP model
Customer relationships
Embedded engineers
Quality & reliability
Innovation
Pivot - the trusted technology advisor
11. Pivot| A Leading Multi Vendor IT Solutions Provider 11
Extensive vendor network
Pivot as a critical sales
channel for vendors
Access to new
technologies
Pricing leverage across
multiple vendors
12. Pivot| A Leading Multi Vendor IT Solutions Provider 12
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
13. Pivot| A Leading Multi Vendor IT Solutions Provider 13
Deep relationships with blue-chip customer base
>2,000
customers
>70%of revenues
from Fortune 100 companies
14. Pivot| A Leading Multi Vendor IT Solutions Provider 14
The year in review
15. Pivot| A Leading Multi Vendor IT Solutions Provider 15
A year of focus
From acquisition-driven growth to organic growth
16. Pivot| A Leading Multi Vendor IT Solutions Provider 16
And accomplishments
Growing customer list
Increased share of customers’ IT spend
Expansion of services business
Margin improvement
17. Pivot| A Leading Multi Vendor IT Solutions Provider 17
But not without its challenges
Exceptional one-off customer
project in prior year
Major customer product transition
18. 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
19. Pivot| A Leading Multi Vendor IT Solutions Provider
June 17, 2014
2013 Financial Review
Kerri Brass, CFO
20. Pivot| A Leading Multi Vendor IT Solutions Provider 20
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 ($’000s)
21. Pivot| A Leading Multi Vendor IT Solutions Provider 21
Gross margins
Strong improvement over 2012 due to growth of
services business, including impact of Sigma
acquisition (July 2012)
High-volume lower-margin accounts affecting
gross margin
Year-on-Year Quarter-on-Quarter
9.8%
11.3%
2012 2013
11.8%
11.5%
11.2%
10.8%
Q1 2013 Q2 2013 Q3 2013 Q4 2013
22. Pivot| A Leading Multi Vendor IT Solutions Provider 22
Adjusted EBITDA
2013 adjusted EBITDA decline reflects lower
revenues compared to 2012
Year-on-Year ($’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
23. Pivot| A Leading Multi Vendor IT Solutions Provider 23
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 $
24. Pivot| A Leading Multi Vendor IT Solutions Provider 24
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 $
25. Pivot| A Leading Multi Vendor IT Solutions Provider
Moving forward
Warren Barnes, CEO
26. Pivot| A Leading Multi Vendor IT Solutions Provider 26
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
27. Pivot| A Leading Multi Vendor IT Solutions Provider
June 17, 2014
Q&A
TSX-V: PTG