Agilysys : Investor Presentation - Q2 FY21

INVESTOR PRESENTATION

January 2021

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

The Business We Are In

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

3

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

$145.8M	59%	39%	23%
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 September 30, 2020.

4

We Provide Industry Leading Hospitality Solutions

TECHNOLOGY | INNOVATION | SOLUTIONS

Allocation of	POINT-OF-SALE	61of
Total Revenue		%
	Revenue
				%
Food and Beverage Solutions	26of Revenue
	~66k end points at 09/30/20	11%
		of Revenue		2
			of
	INVENTORY &			%
	PROCUREMENT			Revenue

92%	Region
of Revenue	North America

PROPERTY

MANAGEMENT

Lodging Solutions

~271k rooms at 09/30/20

DOCUMENT

MANAGEMENT

8%

of Revenue

APAC Plus EMEA

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

5

Hospitality Market

TECHNOLOGY | INNOVATION | SOLUTIONS

Agilysys ARR ~ $86.1M*

*Trailing twelve months ended September 30, 2020.

6

Agilysys - Defining Strategy Highlights

TECHNOLOGY | INNOVATION | SOLUTIONS

100% HOSPITALITY FOCUSED

MODERN CLOUD-NATIVE & ON-PREMISE OPTIONS

END-TO-END COMPREHENSIVE SOLUTION OFFERINGS

OBSESSIVELY CUSTOMER-CENTRIC

ENGINEERING/PRODUCT DRIVEN

	R&D Team
	Strength**
	Jan 2017 - 230
>95%	Mar 2019 - 500	23% Increase
Dec 2020 - 800	in YOY
Customer
	Subscription
Retention
	Revenue
Annually

*Note: All data is as of the trailing twelve months ended September 30, 2020.
**R&D strength numbers represent approximate headcount.	7

India Development Center

TECHNOLOGY | INNOVATION | SOLUTIONS

Chennai

• Current R&D Strength = 800+	• Currently Expanding Capacity To:
• Approximately 95% of Current	•	100,000 Square Feet
Employees Are Technical &	•	1,000 Employee Capacity
Engineering Expertise	• All Agilysys Employees and Fully
• Average Tenure = > 1.8 Years
Engaged With Our Products

8

Recent Achievements Under Management Team

TECHNOLOGY | INNOVATION | SOLUTIONS

Revenue Growth

Recurring Revenue Return to Pre-COVID Record Levels

9

Quarters of Sequential

Revenue Growth Pre-

COVID

New Sales at 60%+ of Pre-COVID Amounts

Continuing to

Improve

23.9%

Q2 FY21 SaaS Revenue

Growth

188%

YOY Increase in Adjusted

EBITDA

Cash Flow Positive

Since FY19

Focus on

Profitability

$8.6M

Q2 FY21 Adjusted

EBITDA

9%

Organic Increase in Cash

YTD Since FY20

$85.7M

Cash as of Q2 FY21

Expand Product

Capabilities

Tripled

R&D Team Strength

Fully Captive India Development Center

14

New Software Modules

9

Agilysys Hospitality Product Suite

TECHNOLOGY | INNOVATION | SOLUTIONS

10

Global Gaming Business

G2E 2020 Gaming & Technology Awards

Gold Award

Best Productivity-Enhancement Technology

Agilysys rGuest Service

(Cloud-Native,On-Premise Capable)

Only Non-Gaming Hospitality Vendor To

Win Award

11

We Serve Leading Hospitality Brands

TECHNOLOGY | INNOVATION | SOLUTIONS

12

FINANCIAL OVERVIEW

Evolving Business, Evolving P&L

TECHNOLOGY | INNOVATION | SOLUTIONS

Financial Metrics and Valuation*

Share Price (1/12/21)	$40.55
Diluted Shares Outstanding	23.4M
Diluted Market Capitalization	$949.8M
Cash (as of 09/30/20)	$85.7M
Debt (as of 09/30/20)	$14.6M
Enterprise Value	$878.7M
Revenue	$145.8M
Gross Profit	$82.4M
Adjusted EBITDA^	$18.8M
Earnings per Share	($1.11)
EV/Revenue	6.0x
EV/Gross Profit	10.7x

Business Metrics (as of 09/30/20)

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*

New Customer Count*

~66k

17%

~271k -1%

59%

39%

18%

22%

55

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

14

Strong Balance Sheet

		TECHNOLOGY | INNOVATION | SOLUTIONS
Consolidated Balance Sheet (in thousands)
	March 31, 2020	September 30, 2020
Cash, Cash Equivalents and Marketable Securities	$46,653	$85,706
Other Current Assets	46,755	29,838
Long-Term Assets	61,154	58,170
Total Assets	$154,562	$173,714
Current Liabilities	$69,423	$45,777
Other Liabilities	13,382	50,013
Total Liabilities	82,805	95,790
Shareholders' Equity	71,757	77,924
Total Liabilities and Shareholders' Equity	$154,562	$173,714
		15

Revenue - Quarterly

TECHNOLOGY | INNOVATION | SOLUTIONS

											Total Revenue		$41,987
$41,000														$40,722	$39,659
$39,000									$36,618	$38,389
$37,000							$36,014
				$34,203															$34,360
$35,000			$34,007
$33,000
$31,000																					$29,807
$29,000																				COVID-19 Pandemic March 2020 - Q2 FY21
$27,000
$25,000				Q1'19		Q2'19		Q3'19		Q4'19			Q1'20		Q2'20		Q3'20		Q4'20		Q1'21		Q2'21

Fiscal Year is From 4/1-3/31

All numbers in thousands.	16

Profitability Metrics - Quarterly

TECHNOLOGY | INNOVATION | SOLUTIONS

Adjusted EBITDA - Non GAAP^

$10,000
$9,000
$8,000					No
$7,000
				Software
$6,000					Capitalization
				from
					Q2 FY19
$5,000					onwards
$4,000										$3,235	$2,984	$3,235
$3,113	$2,641
$3,000				$2,135	$2,392
$2,000
$1,000
$0			Q1'19		Q2'19		Q3'19		Q4'19		Q1'20		Q2'20		Q3'20

• Q2'21 included inorganic COVID related temporary cost savings, including employee

compensation changes and reduction of workforce

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

$8,586

$3,572 $3,390

Q4'20 Q1'21 Q2'21

All numbers in thousands.

Fiscal Year is from 4/1-3/31

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

17

Historical Financial Results

									Revenue - GAAP
$165,000													$160,757
$155,000									$140,842								$145,813
$145,000
$135,000
$127,360
$125,000						FY18		FY19		FY20		TTM*
							Adjusted EBITDA - Non-GAAP^
$20,000																		$18,783
$16,000													$13,017
$12,000				$9,082		$10,277
$8,000
						FY18		FY19		FY20		TTM*

																TECHNOLOGY | INNOVATION | SOLUTIONS
										Net Loss - GAAP
$0
($10,000)											$23.7M software impairment
($8,350)			($13,164)
($20,000)
														($24,224)
($30,000)									($34,067)
($40,000)
							FY18	FY19			FY20		TTM*
	Adjusted Diluted Earnings per Share - Non-GAAP^
$0.60																			$0.48
$0.50
$0.40					$0.27
$0.30										$0.23
$0.20										$0.13
$0.10
							FY18	FY19			FY20		TTM*
										All numbers in thousands.
										^ Non-GAAP measure, see reconciliation on slide 26.

*Trailing twelve months ended September 30, 2020. 18

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.

20

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.

21

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.

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.

22

Agilysys Omnichannel POS Solution

Mobile / Web: IG OnDemand

Profile &

Personalization:

Personalization APIs

Analytics:

Agilysys Analyze

Payment:

Agilysys Pay

IG Quick Pay

Mobile App:

Webapps / API's

Physical Store:

InfoGenesis POS

IG SmartMenu

IG Digital Menu

Marketing & Upsell:

Agilysys Engage

Any Venue:

Agilysys Seat

Kiosk:

IG Buy Kiosk

23

Agilysys Lodging Ecosystem

	Search & Discovery
Marketing Analytics & CRM	Booking

Personalized	Arrival
Communication	Sales & Catering

Payment				Loyalty &
				Rewards
Housekeeping	Dining	Spa
Maintenance	Concierge		Current Solutions
Back of House	Retail	Golf
Partner	24

Non-GAAP Reconciliation

TECHNOLOGY | INNOVATION | SOLUTIONS

25

Non-GAAP Reconciliation

TECHNOLOGY | INNOVATION | SOLUTIONS

26

Non-GAAP Reconciliation

TECHNOLOGY | INNOVATION | SOLUTIONS

27

Cash Flow

TECHNOLOGY | INNOVATION | SOLUTIONS

28

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

29

Contact:

Jessica Hennessy

Sr. Manager Corporate Strategy and

Investor Relations

1. 810-6116
   [e-mail]