INVESTOR PRESENTATION

September 2020

Forward-looking Statements & Non-GAAP Financial Information

TECHNOLOGY | INNOVATION | SOLUTIONS

Forward-Looking Language

This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward- looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, our revenue and Adjusted EBITDA guidance for the second quarter, statements we make regarding our ability to improve our competitive positioning and improvement of our business momentum and business health over time once the industry begins to recover.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the effect of the COVID-19 pandemic on our business and the success of any measures we have taken or may take in the future in response thereto; and the risks described in the Company's filings with the Securities and Exchange Commission, including the Company's reports on Form 10-K and Form 10-Q.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement that may be made from time to time, whether written or oral, whether as a result of new information, future developments or otherwise.

Use of Non-GAAP Financial Information

To supplement the unaudited consolidated financial statements presented in accordance with U.S. GAAP in this press release, certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, adjusted net income, adjusted basic earnings per share, adjusted diluted earnings per share and free cash flow. Management believes that such information can enhance investors' understanding of the Company's ongoing operations.

2

Agilysys Overview

End to End Software Solutions Provider

Exclusively Hospitality

Provide Mission Critical Solutions

Products With Global Reach

SaaS

Platform

Analytics

Optimization

Payment

Kitchen

Operations

Reservations

Guest Value

Staff

Mobility

Guest

Contactless

Connected-

ness

Guest

Self-service

$152.2M

55%

37%

20%

Total

Recurring Revenue as a % of

Subscription Revenue as a

Subscription Revenue

Revenue

Total Revenue

% of Recurring Revenue

Growth Rate

Note: All data is as of the trailing twelve months ended June 30, 2020.

3

What Sets Agilysys Apart

TECHNOLOGY | INNOVATION | SOLUTIONS

Pure Hospitality

Hospitality is all We Do Because our Business is 100%

Focused on this Industry

End to End Comprehensive Solutions

Agilysys has the Broadest Software Offerings with the

Deepest Functionality in the Market

Obsessively Customer Centric

We are Obsessive About Putting our Customers at the

Center of Everything We Do

4

Go To Market Strategy

TECHNOLOGY | INNOVATION | SOLUTIONS

OBSESSIVELY CUSTOMER CENTRIC

IN EVERY MARKET WE SERVE

ENGINEERING DRIVEN COMPANY

>95%

~5% Pre-COVID

R&D Team

Strength**

Customer

Increase in YOY

Jan 2017 - 230

Retention

International

Mar 2019 - 500

Annually

Bookings

Sep 2020 - 750

*Note: All data is as of the trailing twelve months ended June 30, 2020.

**R&D strength numbers represent approximate headcount.

5

Strategic Product Vision

TECHNOLOGY | INNOVATION | SOLUTIONS

We Are in the Business of Providing A Fully Integrated Suite of Software Solutions to Enterprise Food & Beverage and Lodging Operators in the Hospitality Space that Enable Memorable Experiences Across All Channels of Guest Engagement

6

We Serve Leading Hospitality Brands

TECHNOLOGY | INNOVATION | SOLUTIONS

10

We Provide Industry Leading Hospitality Solutions

TECHNOLOGY | INNOVATION | SOLUTIONS

Allocation of

POINT-OF-SALE

61of

Total Revenue

%

Revenue

%

Food and Beverage Solutions

26of Revenue

~64k end points at 06/30/20

11%

+16% since 06/30/19

of Revenue

2

of

INVENTORY &

%

PROCUREMENT

Revenue

91%

Region

of Revenue

North America

PROPERTY

MANAGEMENT

Lodging Solutions

~275k rooms at 06/30/20

+1% since 06/30/19

DOCUMENT

MANAGEMENT

9%

of Revenue

APAC Plus EMEA

Note: Revenue contribution figures represent percentage for the trailing twelve months ended June 30, 2020 and include an allocation of revenue amounts to our 4 core product groupings.

11

Hospitality Market

TECHNOLOGY | INNOVATION | SOLUTIONS

Agilysys ARR ~ $84.1M*

*Trailing twelve months ended June 30, 2020. 12

Achievements Under New Management Team

TECHNOLOGY | INNOVATION | SOLUTIONS

Revenue Growth

COVID impact more than

37% better than

expected

9

Quarters of Sequential

Revenue Growth Pre-

COVID

New sales at 60% of pre-

COVID amounts

Continuing to

Improve

8.6%

Q1 FY21 SaaS Revenue

Growth

6%

YOY Increase in Adjusted

EBITDA

Cash Flow Positive in

FY21

Focus on

Profitability

$3.4M

Near record Q1 FY21

Adjusted EBITDA

2%

Increase in Operating Cash YOY Q1 FY21

$74.6M

Cash as of Q1 FY21

Expand Product

Capabilities

Tripled

R&D Team Strength

Fully Captive IDC

10

New Software Modules

13

India Development Center

TECHNOLOGY | INNOVATION | SOLUTIONS

• Currently Expanding Capacity To:

• 100,000 Square Feet

• 1,000 Employee Capacity

• Approximately 95% of Current Employees are Technical Staff

•

Team is experienced with the products and are

Chennai

familiar with everything Agilysys

14

FINANCIAL OVERVIEW

Evolving Business, Evolving P&L

TECHNOLOGY | INNOVATION | SOLUTIONS

Financial Metrics and Valuation*

Share Price (09/16/20)

$26.23

Diluted Shares Outstanding

23.4M

Diluted Market Capitalization

$613.9M

Cash (as of 06/30/20)

$74.6M

Debt (as of 06/30/20)

$14.5M

Enterprise Value

$553.8M

Revenue

$152.2M

Gross Profit

$79.5M

Adjusted EBITDA^

$13.2M

Earnings per Share

($1.41)

EV/Revenue

3.6x

EV/Gross Profit

7.0x

Business Metrics (as of 06/30/20)

Direct POS End Points Managed

Y/Y Growth

Direct Hotel Rooms Managed

Y/Y Growth

Recurring Revenue*

As % of Total Revenue

Subscription Revenue*

As % of Recurring Revenue

Services Revenue*

As % of Total Revenue

Subscription Revenue Growth Y/Y*

rGuest as % of Total Revenue*

New Customer Count*

~64k

16%

~275k

1%

55%

37%

19%

20%

10%

59

^Non-GAAP measure, see reconciliation on slide 26. *Trailing twelve months ended June 30, 2020.

16

Strong Balance Sheet

TECHNOLOGY | INNOVATION | SOLUTIONS

Consolidated Balance Sheet (in thousands)

March 31, 2020

June 30, 2020

Cash, Cash Equivalents and Marketable Securities

$46,653

$74,604

Other Current Assets

46,755

42,338

Long-Term Assets

61,154

59,161

Total Assets

$154,562

$176,103

Current Liabilities

$69,423

$56,054

Other Liabilities

13,382

48,699

Total Liabilities

82,805

104,753

Shareholders' Equity

71,757

71,350

Total Liabilities and Shareholders' Equity

$154,562

$176,103

17

Revenue - Quarterly

TECHNOLOGY | INNOVATION | SOLUTIONS

Total Revenue

$41,987

$40,000

$38,389

$40,722

$39,659

$34,007

$34,203

$36,014

$36,618

$35,000

$29,807

$30,000

$25,000

COVID-19 Pandemic March

$20,000

2020 - Q1 FY21

$15,000

$10,000

$5,000

$0

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

Fiscal Year is From 4/1-3/31

All numbers in thousands.

18

Historical Financial Results

Revenue - GAAP

$165,000

$160,757

$152,175

$155,000

$140,842

$145,000

$135,000

$127,360

$125,000

FY18

FY19

FY20

TTM*

Adjusted EBITDA - Non-GAAP^

$13,181

$14,000

$9,082

$10,277

$13,017

$10,000

$6,000

$2,000

($2,000)

FY18

FY19

FY20

TTM*

TECHNOLOGY | INNOVATION | SOLUTIONS

Net Loss - GAAP

$0

($10,000)

$23.7M

($8,350)

($13,164)

software

($20,000)

impairment

($30,000)

($33,009)

($34,067)

($40,000)

FY18

FY19

FY20

TTM*

Adjusted Diluted Earnings per Share - Non-GAAP^

$0.30

$0.27

$0.23

$0.23

$0.25

$0.20

$0.13

$0.15

$0.10

$0.05

$-

FY18

FY19

FY20

TTM*

All numbers in thousands.

^ Non-GAAP measure, see reconciliation on slide 26.

*Trailing twelve months ended June 30, 2020.

19

Profitability Metrics - Quarterly

TECHNOLOGY | INNOVATION | SOLUTIONS

Adjusted EBITDA - Non GAAP^

$4,000

$3,572

$3,390

$3,500

$3,235

$3,235

$3,113

$2,984

$3,000

$2,641

$2,392

$2,500

$2,135

$2,000

No

$1,500

Software

Capitalization

$1,000

from

Q2 FY19

$500

onwards

$0

Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

  • Average of $2.5M in capitalized software development costs per quarter from Q1'17 to Q1'19.

• Fiscal Year is From 4/1-3/31

All numbers in thousands.

^ Non-GAAP measure, see reconciliation on slide 27.

20

APPENDIX

Senior Management Leading New Growth Vision

TECHNOLOGY | INNOVATION | SOLUTIONS

RAMESH SRINIVASAN - President and Chief Executive Officer

Ramesh is an accomplished CEO with leadership and turnaround success across multiple industries resulting in rapid and sustainable long-term growth and significant increases in shareholder value.

Dave Wood - Chief Financial Officer

Dave is an experienced financial and strategic leader who joined Agilysys in 2011 as controller of the Hospitality Solutions Group. Dave brings with him extensive experience in financial initiatives and strategic development with software and SaaS companies.

PRABUDDHA BISWAS - Chief Technology Officer

Prabuddha brings over 30 years of successful software development and innovative technology leadership to Agilysys, where his responsibilities include leadership and oversight of the Company's technology

vision.

DON DEMARINIS - Senior Vice President Sales, Americas

Don brings extensive industry experience and success at Oracle and Micros selling hospitality technology and services to global clients across markets where he led sales increases of up to 30% per annum.

22

Senior Management Leading New Growth Vision

TECHNOLOGY | INNOVATION | SOLUTIONS

KYLE BADGER - Senior Vice President, General Counsel and Secretary

Kyle leads the global legal and human resources teams and brings over 22 years of legal experience

representing public and private companies in general corporate matters.

SRIDHAR LAVETI - Vice President of Established Products and Customer Support

Sridhar leads the product engineering and management teams for established Agilysys products and oversees customer support. He brings 25+ years of technology and management leadership across multiple industries.

PRAKASH BHAT - Vice President and Managing Director (India)

Prakash brings 30+ years of experience in technology and management with an impressive track record of building new companies to create a strong market presence for established organizations in new locations.

ANDREW COX - Managing Director (Asia Pacific)

Andrew has 20+ years of experience, including significant experience with hospitality software companies, working in the Asia Pacific region bringing an extensive background in developing and executing go-to- market strategies which deliver profitable and sustainable growth.

23

Senior Management Leading New Growth Vision

TECHNOLOGY | INNOVATION | SOLUTIONS

ROB JACKS - Chief Information Officer

Rob was promoted to CIO in December 2018 and is responsible for advancing Agilysys' internal systems

and information technology processes. Rob has a reputation as a transformational executive who can

deploy complex solutions with a measurable ROI.

JAMES SLATTER - Managing Director (EMEA)

Based in the UK for 16 years, James has extensive experience working in the hospitality industry, satisfying the software needs of enterprise clients, and helping US based companies expand their international footprint.

JEBA KINGSLEY - Vice President of Professional Services

Jeba was hired as Vice President of Professional Services in December 2018. Jeba has more than 20

years of experience leading revenue-generating global client services organizations.

24

Non-GAAP Reconciliation

AGILYSYS, INC.

TECHNOLOGY | INNOVATION | SOLUTIONS

RECONCILIATION OF NET LOSS TO ADJUSTED EARNINGS FROM OPERATIONS

(UNAUDITED)

Twelve Months Ended

(In thousands)

March 31

TTM*

2020

2019

2018

Net loss

$

(33,009)

$

(34,067)

$

(13,164)

$

(8,350)

Income tax expense (benefit)

184

201

221

(3,251)

Loss before taxes

(32,825)

(33,866)

(12,943)

(11,601)

Depreciation of fixed assets

3,085

2,574

2,504

2,631

Amortization of intangibles

2,324

2,541

2,567

1,879

Amortization of developed technology

9,386

12,561

12,602

10,016

Interest income

(287)

(371)

(329)

(88)

EBITDA (a)

(18,317)

(16,561)

4,401

2,837

Share-based compensation

6,149

5,205

4,376

4,688

Restructuring, severance and other charges

1,554

582

1,168

1,798

Impairments

23,740

23,740

-

-

Other non-operating (income) expense

174

176

191

(391)

Legal settlements

(119)

(125)

141

150

Adjusted EBITDA (b)

13,181

13,017

10,277

9,082

Capitalized software development costs

-

-

(2,189)

(8,918)

Adjusted EBITDA less capitalized software development costs (c)

13,181

13,017

8,088

164

Capital expenditures

(3,092)

(3,420)

(3,318)

(6,140)

Adjusted Earnings from Operations (d)

$

10,089

$

9,597

$

4,770

$

(5,976)

Product development (operating expenses)

$

39,661

$

41,463

$

37,817

$

27,936

Capitalized software development costs

-

-

2,189

8,918

Product development plus capitalized software development costs (e)

$

39,661

$

41,463

$

40,006

$

36,854

  1. EBITDA is defined as net income before income taxes, interest expense, depreciation and amortization
  2. Adjusted EBITDA, a non-GAAP financial measure, is defined as income before income taxes, interest expense (net of interest income), depreciation and amortization (including amortization of developed technology), and excluding charges relating to i) legal settlements, ii) restructuring, severance, and other charges, iii) asset write-offs and other fair value adjustments, iv) share-based compensation, and v) other non-operating (income) expense
  3. Adjusted EBITDA less capitalized software development costs, a non-GAAP financial measure, is defined as Adjusted EBITDA,

less capitalized software development costs

  1. Adjusted Earnings from Operations, a non-GAAP financial measure, is defined as Adjusted EBITDA less capitalized software development costs, less capital expenditures
  2. Product development plus capitalized software development costs, a non-GAAP financial measure, is defined as total product development expense plus

capitalized software development costs

25

Non-GAAP Reconciliation

TECHNOLOGY | INNOVATION | SOLUTIONS

RECONCILIATION OF NET LOSS TO ADJUSTED EARNINGS FROM OPERATIONS

(UNAUDITED)

Three Months Ended

(In thousands)

June 30,

March 31,

December 31,

September 30,

June 30,

March 31,

December 31,

September 30,

2020

2020

2019

2019

2019

2019

2018

2018

Net loss

$

(517)

$

(26,992)

$

(2,582)

$

(2,918)

$

(1,575)

$

(3,589)

$

(4,048)

$

(3,791)

Income tax expense (benefit)

8

40

95

41

25

35

182

53

Loss before taxes

(509)

(26,952)

(2,487)

(2,877)

(1,550)

(3,554)

(3,866)

(3,738)

Depreciation of fixed assets

723

801

854

707

213

571

651

676

Amortization of intangibles

461

641

608

614

678

675

675

674

Amortization of developed technology

-

3,129

3,129

3,128

3,175

3,245

3,347

3,347

Interest income

(20)

(88)

(67)

(112)

(79)

(102)

(80)

(94)

EBITDA (a)

655

(22,469)

2,037

1,460

2,437

835

727

865

Share-based compensation

1,426

2,049

1,329

1,345

482

1,420

1,282

1,265

Restructuring, severance and other charges

1,203

150

11

190

231

222

58

448

Impairments

-

23,740

-

-

-

-

-

-

Other non-operating (income) expense

106

102

(142)

108

85

(100)

68

28

Legal settlements

-

-

-

(119)

-

15

-

35

Adjusted EBITDA (b)

3,390

3,572

3,235

2,984

3,235

2,392

2,135

2,641

Capitalized software development costs

-

-

-

-

-

-

-

(57)

Adjusted EBITDA less capitalized software development costs (c)

3,390

3,572

3,235

2,984

3,235

2,392

2,135

2,584

Capital expenditures

(243)

(411)

(1,069)

(1,369)

(571)

(1,708)

(277)

(589)

Adjusted Earnings from Operations (d)

$

3,147

$

3,161

$

2,166

$

1,615

$

2,664

$

684

$

1,858

$

1,995

Product development (operating expenses)

$

8,266

$

9,332

$

11,285

$

10,778

$

10,064

$

10,525

$

10,059

$

10,151

Capitalized software development costs

-

-

-

-

-

-

-

57

Product development plus capitalized software development costs (e)

$

8,266

$

9,332

$

11,285

$

10,778

$

10,064

$

10,525

$

10,059

$

10,208

  1. EBITDA is defined as net income before income taxes, interest expense, depreciation and amortization
  2. Adjusted EBITDA, a non-GAAP financial measure, is defined as income before income taxes, interest expense (net of interest income), depreciation and amortization

(including amortization of developed technology), and excluding charges relating to i) legal settlements, ii) restructuring, severance, and other charges, iii) asset write-offs and other fair value adjustments, iv) share-based compensation, and v) other non-operating (income) expense

  1. Adjusted EBITDA less capitalized software development costs, a non-GAAP financial measure, is defined as Adjusted EBITDA, less capitalized software development costs
  2. Adjusted Earnings from Operations, a non-GAAP financial measure, is defined as Adjusted EBITDA less capitalized software development costs, less capital expenditures
  3. Product development plus capitalized software development costs, a non-GAAP financial measure, is defined as total product development expense plus

capitalized software development costs

26

Cash Flow

TECHNOLOGY | INNOVATION | SOLUTIONS

Operating activities

TTM*

FY20

FY19

FY18

Loss from continuing operations

$

(33,009)

$

(34,067)

$

(13,164)

$

(8,350)

Non cash adjustments, restructuring, legal settlements

44,233

46,260

22,219

16,586

Changes in assets & liabilities

(3,665)

(1,618)

(1,814)

(1,362)

Net cash provided by operating activities

7,559

10,575

7,241

6,874

Investing activities

Capital expenditures

(3,092)

(3,420)

(3,318)

(6,140)

Capitalized developed software

-

-

(2,189)

(8,918)

Investments

(27)

(27)

(27)

(27)

Net cash used in investing activities

(3,119)

(3,447)

(5,534)

(15,085)

Net cash used in financing activities

33,035

(1,116)

(767)

(1,295)

Effect of exchange rate

(104)

(130)

(112)

194

Decrease in cash & cash equivalents

37,371

5,882

828

(9,312)

Cash & cash equivalents - beginning of period

37,233

40,771

39,943

49,255

Cash & cash equivalents - end of period

$

74,604

$

46,653

$

40,771

$

39,943

27

Agilysys Global Footprint

Windsor, UK

Seattle, WA

Las Vegas, NV

Santa Barbara, CA

Alpharetta, GA

Shenzhen, China

Chennai, India

Kuala Lumpur, Malaysia

Singapore

Principal Location

Country with Installation

Reseller

Hong Kong

Manila, Philippines

Agilysys Corporate Headquarters

  • Alpharetta, Georgia

Agilysys US Offices

  • Las Vegas, Nevada
  • Santa Barbara, California
  • Bellevue, Washington

Agilysys EMEA Office

  • United Kingdom

Agilysys APAC Offices

  • Hong Kong
  • Malaysia
  • Philippines
  • Singapore
  • China

Agilysys Demonstration Centers

  • Las Vegas, Nevada

India Development Center

  • Chennai, India

28

Contact:

Jessica Hennessy

Sr. Manager Corporate Strategy and Investor

Relations

  1. 810-6116
    InvestorRelations@agilysys.com

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Agilysys Inc. published this content on 17 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 September 2020 20:59:00 UTC