EX-99.1 2 d277436dex991.htm EX-99.1

The Leading Growth Company Focused Investment Bank for 27 Years AGILYSYS, INC. | Clean Technologies | Communications | Consumer | Enterprise Infrastructure | Healthcare | | Industrial & Diversified Growth | Semiconductors & Equipment | Software & Services | The Leading Growth Company Focused Investment Bank for 27 Years Exhibit 99.1 The Fourteenth Annual Needham Growth Conference January 10-12th, 2012, New York City

January 2012 2 Company Overview

3 Forward-Looking Language Other potential risks and uncertainties that may cause actual results to be materially different from those in forward-looking information are described in “Risk Factors,” which is included in Part I, Item 1A of the Company’s Annual Report for the fiscal year ended March 31, 2011. Use of Non-GAAP Financial Information To supplement the unaudited condensed consolidated financial statements presented in accordance with U.S. GAAP in this presentation, certain non-GAAP financial measures as defined by the SEC rules are used. Management believes that such information can enhance investors' understanding of the Company's ongoing operations. The non-GAAP measures included in this presentation have been reconciled to the comparable GAAP measures within an accompanying table, shown on the last page of this presentation. This Quarterly Report contains certain management expectations, which may constitute forward-looking information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934, and the Private Securities Reform Act of 1995. Forward-looking information speaks only as to the date of this Quarterly Report and may be identified by use of words such as “may,” “will,” “believes,” “anticipates,” “plans,” “expects,” “estimates,” “projects,” “targets,” “forecasts,” “continues,” “seeks,” or the negative of those terms or similar expressions. Many important factors could cause actual results to be materially different from those in forward-looking information, including, without limitation, competitive factors, disruption of supplies, changes in market conditions, pending or future claims or litigation, or technology advances. No assurances can be provided as to the outcome of cost reductions, expected benefits and outcomes from our recent ERP implementation, business strategies, future financial results, unanticipated downturns to our relationships with customers and macroeconomic demand for IT products and services, unanticipated difficulties integrating acquisitions, new laws and government regulations, interest rate changes, consequences related to the concentrated ownership of our outstanding shares by MAK Capital, unanticipated deterioration in economic and financial conditions in the United States and around the world or the consequences associated with the sale of the Company’s TSG business, and uncertainties regarding restructuring actions and the relocation of the Company’s corporate headquarters. The Company does not undertake to update or revise any forward-looking information, even if events make it clear that any projected results, actions, or impact, express or implied, will not be realized. Forward-looking statements & non-GAAP financial information

• Leading developer and marketer of proprietary enterprise software, services and solutions to the hospitality and retail industries • Two reportable businesses: Hospitality Solutions Group (“HSG”) develops and markets proprietary software for hospitality markets and Retail Solutions Group (“RSG”) is a system integrator of store front technology for retailers Formed: 1963 Ticker symbol: AGYS (NASDAQ) Market capitalization: ~$200 million Capital structure as of 9/30/11: Debt-free Fiscal 2011 sales : $201 million Markets served as % of revenue: 94% North America 6% Asia and Europe Employees: 800 Corporate HQ: Solon, Ohio (relocating to Alpharetta, GA) 4 Summary Quick Facts 1 (1) March 31 fiscal year: excludes TSG which was divested 7/31/11 st Agilysys: overview

• Hospitality customers can rely on HSG to deliver: • Enterprise applications • Hardware enabling our complete array of enterprise applications • Recurring services such as software maintenance and hosting or SaaS offerings • Implementation and training services as well as help desk support 5 Agilysys Hospitality Solutions Enterprise Applications Complementary Offerings Hardware Software Maintenance Implementation Hosting (SaaS) Training Help Desk Agilysys Hospitality Solutions

Document Management Central Reservation Mobility • G360 capabilities • Buy/build capabilities • POS (IG Roam) • PMS (iPad enabled) • RSG (mPOS) 6 Titles We Own Best in class point solutions for the markets we service Property Management Inventory & Procurement Point of Sale

Gaming Hotels & Resorts Restaurants Cruise Lines Food Service Stadiums & Arenas 7 HSG Markets Served

8 Balanced revenue mix driven by proprietary software (1) Trailing Twelve Months ending 9/30/11 $14.6 16% $16.9 18% $42.3 46% $18.9 20% HSG Revenue Mix 1 - $93 Software Services Recurring Support Hardware $16.9 29% $42.3 71% HSG Proprietary Services Mix 1 - $59 Project Services Recurring Support HSG Revenue Profile

• Agilysys Retail Solutions provides: • Integration of end-to-end in-store technology solutions • Unparalleled expertise in POS and Mobility solutions • Personnel with an average of 18 years experience in the retail market • Agilysys Retail Solutions is: • Solution partner for IBM Retail Store Solutions receiving the IBM RSS Excellence Award for 16 consecutive years (since the award’s inception) • Large Motorola Enterprise Mobility Solutions Partner and also one of Motorola’s largest Enterprise Mobility Wireless (WLAN) Partners • VeriFone Premier Partner 9 Agilysys Retail Solutions

• Lifecycle management of store-centric business systems • Higher ROI and lower TCO • Servicing the needs of smart consumers • Point-of-Sale • Customer Self-Service • Mobile Point-of-Service • Mobile Store Managers • Mobile Store Associates 10 Agilysys Retail Services Consulting Software Development Project Management Integration Implementation Equipment Disposal Maintenance 24x7 Help Desk Agilysys Retail Solutions

11 Grocery Chain Drug Stores General and Specialty Retail Quick Serve Restaurants Convenience Stores RSG Markets Served

12 (1) Trailing Twelve Months ending 9/30/11 $4.3 4% $18.3 15% $22.9 19% $75.2 62% - $120 Software Services Recurring Support Hardware $18.3 46% $21.4 54% RSG Proprietary Services Mix 1 - $40 Project Services Recurring Support RSG Revenue Profile Comprehensive proprietary services differentiates RSG from other system integrators RSG Proprietary Services Mix 1

• Closed divestiture of Technology Solutions Group (TSG) business to OnX Enterprise Solutions on August 1 st • Strategic emphasis focuses on improving business performance, making select investments and returning capital to shareholders • Streamlining operations and reducing corporate expenses, including facilities’ footprint • Relocating corporate headquarters to Alpharetta, Georgia • Reduce corporate costs and reposition support closer to key revenue-producing locations • Executing plan to reduce annual “run-rate” SG&A by $14M to $16M, expected to be realized beginning in FY13 • Estimated restructuring costs are $14M to $16M — expect to be primarily recognized in FY12 • Announced repurchase up to 1.6 million (approximately 7%) of outstanding shares 13 Focused Business Strategy

Business Emphasis • Serve large end markets that will benefit from technology application • Maintain leadership in delivering best in class products and services • Improve guest experience through agile enterprise solutions • Market focused product development Investor Returns • Market leading growth and ROIC • Peer leading performance metrics • Price leadership • Most efficient provider • Capital allocation • Apply capital to highest margin opportunities • R&D spend based on line of sight to return on investment • Value creating M&A opportunities 14 14 Aligning business focus and investor returns Deliver profitable growth, generating strong investment returns for shareholders

Market Opportunities • Large installed base with untapped capacity to deliver multiple point solutions • Increase participation in new market segments through focused investment • Deliver on market demand from their investment in guest facing business systems • Enhanced guest experiences leading to increased revenue opportunities • Intelligent reporting for improves decision making • Reduce operating expenses • Mobility-enabled solutions • No clear end-to-end hospitality solution Key Initiatives Strengthen best in class portfolio Increase investment in mobility enabled solutions Enterprise solutions through integrated software assets Customer and market driven technology delivery (Above/On Premise, SaaS, Mobility) Guest centric business intelligence & reporting 15 Software Services Develop/acquire higher margin solution offerings Extend mobility initiatives Pursue higher margin service engagements Expand specialty retail and franchise business Pursue highest margin revenue opportunities in markets we service Market Opportunities and Key Initiatives

• Invest in existing products and new products to increase software sales • Continue product development refresh to latest technologies • Mobility enabled solutions • Enterprise solutions through integrated software assets • Customer and market driven technology deliver (SaaS, Mobility) • Pursue highest margin revenue opportunities in markets we service • Increase penetration of new market opportunities in food service management, cruise, specialty retail, franchised retailers and chain hotels • Partner for international expansion — currently we derive less than 10% of revenue from international customers • Pursue M&A opportunities in pursuit of technology and markets • Align current and future R&D spend with line of sight return on investment 16 Earnings Growth Focus

17 Appendix Appendix

18 Corporate/ Corporate/ (In thousands) HSG RSG TSG Other Consolidated HSG RSG TSG Other Consolidated Total revenue $24,814 $22,015 $ 97,145 $ - $ 143,974 $92,839 $109,147 $474,052 $ - $ 676,038 Elimination of intersegment revenue (26) (171) - - (197) (92) (476) - - (568) Revenue from external customers $24,788 $21,844 $ 97,145 $ - $ 143,777 $92,747 $108,671 $474,052 $ - $ 675,470 Gross margin $15,821 $ 3,958 $ 16,546 $ - $ 36,325 $54,669 $ 20,970 $ 82,052 $ - $ 157,691 Gross margin percentage 63.8% 18.1% 17.0% 25.3% 58.9% 19.3% 17.3% 23.3% Operating income (loss) $ 1,622 $ (520) $(41,288) $ (6,763) $ (46,949) $ 6,030 $ 3,369 $(31,736) $(32,099) $ (54,436) Other income, net - - - (43) (43) - - - (2,320) (2,320) Interest expense, net - - - 352 352 - - - 1,171 1,171 Income (loss) from continuing operations before income taxes $ 1,622 $ (520) $(41,288) $ (7,072) $ (47,258) $ 6,030 $ 3,369 $(31,736) $(30,950) $ (53,287) Other information: Capital expenditures $ 1,249 $ 1 $ 45 $ 26 $ 1,321 $ 3,760 $ 623 $ 914 $ 1,694 $ 6,991 Other charges: Depreciation and amortization - non-cash (1) $ 1,091 $ 203 $ 329 $ 1,771 $ 3,394 $ 4,297 $ 449 $ 2,881 $ 5,987 $ 13,614 Asset impairment charges - non-cash 900 - 36,762 - 37,662 959 - 36,762 - 37,721 Restructuring charges - - 790 (1) 789 - - 790 405 1,195 Total $ 1,991 $ 203 $ 37,881 $ 1,770 $ 41,845 $ 5,256 $ 449 $ 40,433 $ 6,392 $ 52,530 Corporate/ Corporate/ HSG RSG TSG Other Consolidated HSG RSG TSG Other Consolidated Total revenue $21,313 $25,373 $ 89,295 $ - $ 135,981 $83,361 $110,506 $440,887 $ - $ 634,754 Elimination of intersegment revenue (33) (91) (9) - (133) (206) (155) (73) - (434) Revenue from external customers $21,280 $25,282 $ 89,286 $ - $ 135,848 $83,155 $110,351 $440,814 $ - $ 634,320 Gross margin $13,374 $ 5,840 $ 16,613 $ - $ 35,827 $51,463 $ 23,326 $ 87,501 $ (763) $ 161,527 Gross margin percentage 62.8% 23.1% 18.6% 26.4% 61.9% 21.1% 19.8% 25.5% Operating income (loss) $ 2,220 $ 737 $ (1,531) $ (7,639) $ (6,213) $ 7,666 $ 5,759 $ 9,407 $(29,669) $ (6,837) Other income, net - - - (213) (213) - - - (6,176) (6,176) Interest expense, net - - - 278 278 - - - 939 939 Income (loss) from continuing operations before income taxes $ 2,220 $ 737 $ (1,531) $ (7,704) $ (6,278) $ 7,666 $ 5,759 $ 9,407 $(24,432) $ (1,600) Other information: Capital expenditures $ 1,041 $ - $ 41 $ 2,552 $ 3,634 $ 4,694 $ 31 $ 103 $ 8,478 $ 13,306 Non-cash charges: Depreciation and amortization (1) $ 1,029 $ 55 $ 839 $ 1,266 $ 3,189 $ 4,337 $ 198 $ 6,418 $ 4,876 $ 15,829 Asset impairment charges - - 55 - 55 90 - 55 148 293 Restructuring charges - - - 78 78 - - - 823 823 Total $ 1,029 $ 55 $ 894 $ 1,344 $ 3,322 $ 4,427 $ 198 $ 6,473 $ 5,847 $ 16,945 (1) Does not include the amortization of deferred financing fees totaling $131 and $139 for the three months ended March 31, 2011 and 2010, respectively, and $524 and $485 for the year ended March 31, 2011 and 2010, respectively. Year Ended March 31, 2011 (Unaudited) Reportable Segments Year Ended March 31, 2010 Reportable Segments Reportable Segments Reportable Segments Three Months Ended March 31, 2011 (Unaudited) Three Months Ended March 31, 2010 (Unaudited) FY 2011 & 2010 Segment Financial Information

AGILYSYS, INC. The Fourteenth Annual Needham Growth Conference January 10-12th, 2012, New York City | Clean Technologies | Communications | Consumer | Enterprise Infrastructure | Healthcare | | Industrial & Diversified Growth | Semiconductors & Equipment | Software & Services | The Leading Growth Company Focused Investment Bank for 27 Years