investor presentation december 2015 - amazon s3 · • anticipated changes in the methods we use,...

Investor Presentation

December 2015

12/17/2015 | 2 | ©2015 Ciber CONFIDENTIAL

Forward-Looking Statements

This presentation may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are statements that are not historical facts and may include financial projections and estimates and their

underlying assumptions, statements regarding plans, objectives, and expectations with respect to future operations, products, and

services, and statements regarding future performance of one or more aspects of our business. We intend forward-looking statements

to be identified by words such as "anticipate," "believe," "expect," "estimate," "intend," "may," "opportunity," "plan," "potential," "project,"

"should," and similar expressions.

Forward-looking statements may appear in a number of places in this presentation, and include statements about such matters as:

• business strategies and other plans and objectives for future operations, including plans for customer growth and retention,

market, service and product development and expansion and restructuring of operations;

• our outlook on our future financial condition or results of operations;

• our belief that we have sufficient liquidity available to finance our working capital needs through at least the end of 2015;

• the amount and nature of future capital expenditures and the availability of liquidity and capital resources to fund capital

expenditures;

• anticipated changes in the market for information technology (“IT”) services and spending on IT services by our customers;

and

• anticipated changes in the methods we use, and costs we experience, in marketing, selling and delivering our services.

Although we believe that the expectations reflected in such forward-looking statements are reasonable at the time they are made, you

are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult

to predict and generally beyond our control. Risks and uncertainties could cause actual results and developments to differ materially

from those expressed in, or implied or projected by, forward-looking information and statements provided here or in other disclosures

and presentations. Those risks and uncertainties include, but are not limited to, the risks discussed or identified by Ciber from time to

time in its public filings, including our Annual Report on Form 10-K for the year ended December 31, 2014. As we may update those

Risk Factors from time to time, please consult our public filings at www.sec.gov or www.ciber.com.

Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only

as of the date on which it is made. We do not undertake any obligation to update or revise any forward-looking information or

statements.

We caution you not to put undue reliance on forward-looking statements.


Ciber Snapshot

Public

Sector &

Education

Manufacturing Healthcare Retail Utilities

Industries

ISV’s Managed

Services

Business

Consulting

Application Mgt/

Talent Services

Software-as-a-

Service

5 Pillars

SaaS

Key Partnerships

• Ciber is a leading global information technology (‘‘IT’’) services company founded in 1974

• Fortune 100 to middle-market clients

• Strong balance sheet and

favorable cash flow profile

• Key growth drivers:

• Cloud ERP

• SaaS

• Transformation services

Financial

Services


Who We Are

$800 MillionAnnual Revenue

60+Supplier

Partners15Countries

Publicly Traded

NYSE: CBR49 Solutions

10Global Delivery

Centers around

the world

EXPERIENCE

Global

Offices

58

6500+Employees


Diverse, Blue-Chip

Customer Base

Key Characteristics

New strong and experienced management team and refreshed Board

New global operating and organizational model

High-value, tightly-defined core offerings, with a well-developed portfolio of

reusable solution sets

Powerful position in application modernization with Ciber Momentum

Restructuring initiatives focused on:

• Go-to-market model

• Operations realignment

• Improving our near and offshore delivery mix


Michael Boustridge

President & CEO

Eric Stine

SVP, Global Portfolio Management

Jim Miller

SVP, Global Delivery

Chris Batson

SVP, North America Client Care

Andy Nicholson

SVP, International Client Care

Maryanne Faschan

SVP, Transformation Services

Tina Piermarini

EVP, CAO

Christian Mezger

EVP,CFO

Sean Radcliffe

SVP, General Counsel/Corp

Secretary

Leadership

New strong management team with proven credentials

Organization geared towards client focus, operational efficiency and consistency of offerings


Pillars: Value proposition

1

ISVLong term relationships with IT service

providers and system developers

1

Managed ServicesSingle source of accountability for building,

deployment and operation of IT solutions

• Custom application development

• Maintenance and enhancement

• Application management

• SAP; Oracle; Infor; Salesforce.com; Microsoft

-----------------------

• Project management

• System implementation

• Database administration

• Application and technical consulting

Offering

• Focused on providing deep domain,

process and technical know-how to mid-

market clients

• Standardized service management

framework, including governance,

processes, methodologies and tooling

• Leveraging a global delivery (On-/ Near-/ &

Off-shore)

• Strong customer intimacy

• Cloud based services

• Deep industry expertise

• Long-standing Gold / Platinum partnerships with each

• Focus on strategy enablement

----------------------------------------------

Infor

• 2014 and 2015: “Alliance Partner of the Year’

• More upgrades than any other Infor partner

Oracle:

• Platinum partner

• 1,500 clients; 98% client satisfaction

• NextGen icloud & Lifecycle services

SAP

• 2,000 customers

Microsoft:

• 800+ client relationships

Salesforce.com

• Gold cloud alliance partner

Cib

er

Cre

dentials

2


Pillars: Value proposition (continued)

11

ADM:

- 6,000+ engagements

- Strong partnerships

Talent services:

- Over 10,000 transitioned employees into One

Ciber

- 50+ transitions

- Over 40% of Ciber team are transitioned

employees

• Practical & action oriented solution blueprints

• Deep technology and industry expertise in

Healthcare, Public Sector, Retail, Energy and IP

intensive product manufacturing

Cib

er

Cre

dentials

1 1

SaaSIndustry leading solutions for

application modernization

SaaS

• IT strategy

• Enterprise application

• Business processes and change

management

• Cloud, mobile and analytics enablement

approaches

Offering

Business ConsultingHelp technology-enable and transform client business by

offering expertise in IT strategy, business purchase ease

and enterprise applications

Application Mgt/ Talent ServicesApplication management life cycle & strategy / Accelerate

business change through effective talent identification,

implementation and rescaling

• Application modernization

• Ciber Momentum

ADM:

- Application development and management

- Capacity Management and Transformation

services

- Project management and business analysis

-----------------------

Talent transformation:

- Key resource retention, consolidation and

globalization

- Optimize talent pyramid

- Talent mix / reskilling

- Delivery performance improvement

• Highly automated re-

programing (80-85%)

• Works on legacy and

modern technologies

• Rapid ROI

3 4 5


Industry: Credentials

Education / Public

Sector

Manufacturing(Chemicals, Discrete Manufacturing,

Automotive, A&D)

Healthcare(Healthcare and Life Sciences

/ Pharmaceuticals)

Hospitality / Retail Utilities

Tre

nd

s /

Gro

wth

Drivers

Public Sector

• Rapid growth in system replacement

opportunities

• State/federal compliance reporting &

citizen transparency

• Aging systems from Y2K

• Need for better Human Capital

Management systems (Ciber Lawson

capabilities)

• Cloud services growth – data security

concerns

• Mobility (especially in public works,

public safety, community development)

• Analytics to improve government

performance management.

Education:

Cloud Adoption

• Market in early stage adoption

Business Drivers

• Student recruitment and retention

• Efficiency and cost reduction

• Predictive analytics

• Data security

Globalization (B2C)

• International campus growth

• Recruitment of international students

Consumer Experience

• Integration of social media in student

interactions

• Modern college portal

Managed Services

• Outsource core back office functions

Application Modernization

• Interoperability and risk reduction

Digitalization & Consumerism

• B2B and B2C eCommerce

solutions

Internet of Things

• Big data enabled technology

and predictive analytic

solutions

Technology enabled business

models & market agility

• Industry best practices

• ERP modernization and

consolidation

• Road to S/4 HANA & Cloud

enablement

• Ciber Managed Services

• Pay per use

Increased global transparency &

compliance

• Compliance solutions

• From Top Floor to Shopfloor


Healthcare and Life Sciences

• Industry consolidation

• Consumer engagement

• Big Data/Data Liquidity

• Compliance

• Industry best practices

• Cloud enablement

• Repeatable/Scalable industry

solutions

• New business model

Pharmaceuticals

Global compliance & transparency

• Serialization and UDI

• Compliance solutions

• From Top Floor to Shopfloor

Consumerism:

• B2B and B2C eCommerce

solutions

• Digital Marketing Services


Retail:

• Ongoing E2E IS

implementation

• Real Time customer

insight

• E-Commerce

Ciber Utility-in-a-Box

• Real time billing

• Pay as you grow

Energyworx

• Energy data crunching

• Data transparency

• For B2B/B2C

engagement

Ciber Customer Service site:

• ERP replacement

• Consolidate disparate

systems


Education Industry Expertise

• 30+ years education industry experience

• 200+ institutions of higher education globally

• 25% of Oracle higher ed clients engage with Ciber

• Mobile-ready higher ed portal with Ciber’s Intuitive UX

• Vision to Completion IT consulting and managed services

• Industry leader with Oracle and Infor


Public Sector Industry Expertise

• 35+ years industry background with all 50 states

• Ciber’s LG 360 CRM solution enables significant cost savings by

modernizing citizen engagement

• WIC solution market leader with 15M participants

• Case management solutions for social and legal services

agencies

• 100% onshore teams


Manufacturing Industry Expertise(Chemicals, Discrete Manufacturing, Automotive, A&D)

• 25+ years industry background

• 1000+ global supply chain projects

• CIBER SAP Chemicals Best Practice Template w/ embedded

Compliance solutions, B2B and B2C eCommerce scenarios

• CIBER SAP All-in-One A&D Manufacturing Best Practices

Template / Accelerator

• Expert service, top software and mobility hardware for full

solutions


Healthcare Industry Expertise

• 40 years industry background

• 400+ healthcare providers, 85+ life sciences companies, 50+

commercial health plans, 5+ solution partners

• CIBER SAP Pharma Best Practice Template w/ embedded

Compliance solutions, B2B and B2C eCommerce scenarios

• Road to S4/HANA


Retail Industry Expertise

• 19 years retail industry background

• 180+ retailer clients globally

• 80+ retail engagements

• Local and global roll-out experience

• Helps retailers gain/give a 360° view of customers


Financial Services Industry Expertise

• 1000 + collective years of experience

• 40 + Current Customers

• Capital Markets, Insurance, and Banking

• Client Engagement, compliance and disparate data management

solutions.


Energy and Utilities Industry Expertise

• 25+ years energy and utilities industry experience

• 100+ clients worldwide

• Ciber SAP CoE for full IS-U lifecycle service

• Ciber‘s CIS template: Customer Service Suite for Utilities

• Service, software and hardware for full solutions


• Global 2000 blue-chip companies across a

broad range of industries, both domestically

and abroad

• Long-standing relationships with high-profile

clients across various industry verticals

• Largest client accounts for 5.4% of total

revenue with no other client representing more

than 5.1% of revenue

53%

47%

North America International

LTM Revenue by Geography

LTM Revenue by Practice

Diverse, Blue-Chip Customer Base

LTM Revenue by Industry

39.8%

8.5%

3.2%

47.5%

1.0%

ISV's

Managed Services

Business Consulting

App. Mgmt / Talent Services

SaaS

Other

16%

23%

7%5%

13%

6%

1%

7%

7%

15%Government

Manufacturing / High Tech

Financial

Healthcare / Pharma

Hospitality / Retail

Energy & Utilities

Automotive

Education

Telecommunications

Services & Other


Today, CIBER has 58 offices in 15 countries supporting more than 6,500 employees and 6 support centers

Scale of Global Operations

Seattle

USA - Headquartered in

Denver

Spain

United Kingdom

Norway

SwedenFinland

Australia

India

Denmark

Netherlands

Vietnam

Poland

Canada

Dallas

Orlando &

Tampa

Chicago

Detroit

Pittsburg &

Harrisburg

West Hartford

Rochester

France

Germany


Ciber TransformationSignificant transformation initiatives beginning 2011

By investing in its operational foundation, the company has created platform capable of focusing on strategic

growth areas

2010 2011 2012 2013 2014 2015 2016

• Growth

through

acquisitions

• Decentralized

operations

• Lack of

portfolio

strategy

• Financial

distress –

Significant

debt/ limited

cash flow

• Significant

operational

challenges

• Asset

divestiture

(ITO, Federal)

• Stronger

balance

sheet;

refinancing

• New

leadership

• New operating

model: Client

care and

portfolio

delivery

• ‘One-Ciber’

• Portfolio

restructuring

• Real estate restructuring

• International delivery restructuring

• Stabilize

• Continuous

progress

• Invest in

future revenue

streams

• Return on

investments

• Strategic

investments

• Operating

model

restructuring


Market Environment for Ciber

Source: Gartner 2015

Trend in Global End-User Spending on IT Services Global IT Services Revenue Mix

Large and Growing Market

6.4%

9.0%

13.2%

15.9%

25.0%

30.6%

Software Support Hardware Support Consulting

BPO Implementation ITO

931.4 931.7 948.5 914.0

1,118.4

400

600

800

1,000

1,200

2012 2013 2014 2015 2019

$B


Narrowing of IT services landscape yields ~$100B "core" growth market, with ~$40B IT staffing opportunity

Source: Gartner IT services landscape; IDC IT services; Staffing Industry Insight report; BCG analysis

1,000

800

600

400

200

0

XaaS

13

Custom

application

services

20

Consulting

29

Enterprise

application

services

35

Outside

technology

focus

119

Total global IT Services market with non-applicable segments removed $B

Staffing

40

Small / x-

large

enterprise

128

Outside key

verticals

230

Non-

applicable

geos

358

Ciber total

addressable

market

972

Highly focused strategic market

opportunities yields ~$100B market

in which Ciber can compete...

Geographies, verticals,

companies, and competencies

that are not considered "core" or

"adjacent" to Ciber opportunities

...With

addt'l

~$40B

staffing

oppty

Examples:

CRM, BI

Digital

ERP, SCM

Office

IT ops /sec

Bus. / Tech

consulting

Custom

app

implement-

ation /

outsourcing

Cloud IT staffing

services

Addressable Market

~3% 2016-19 CAGR4-6% 2% 28%-33% 5%-7%


"Where to Play"

Source: Gartner IT services data; IDC SaaS/It services; BCG analysis; Ciber internal data

Ciber capabilities

scored on several

key criteria:

Alignment to

customer

preferences /

brand

perception

Business line

performance

Revenue mix

Profitability

Market

share

Resource

capabilities

Cib

er

cap

ab

ility

Strategic opportunity

Focus and grow efforts

Invest internally to grow

2

Harvest / extend base

Milk existing / avoid

investment

1

4

3

Matrix for solution segment recommendations

Strategic opportunities currently scored based on five key criteria:

Market size

Market growth

Customer dynamics Market profitability

Competitive attractiveness


North America: “Where to Play"Strategic framework based on growth lens as aligned with Total Shareholder Return

Staffing

SaaS - SCM

SaaS - ERP

SaaS - Digital / mobility

SaaS - CRM

PaaS / IaaSOther

IT Ops / Security

Office

SCM

ERP

Digital / mobilityBI

CRM

Custom App Out

Custom App Dev

Tech consulting

Biz consulting

Cib

er

ca

pa

bilit

y


Staffing

XaaS

Enterprise App

Custom App

Consulting

Segment type

Note: certain segments have minor shifts due to qualitative factors not captured in modelSource: Gartner IT services data; IDC SaaS/It services; BCG IT decision makers survey, August 2014; BCG analysis; Ciber internal data

$4.5B

Market size

Strong set of core services to continue

to support existing revenue base

Group of existing

and emerging

services to focus,

invest, and grow

"Drive core and invest to grow high opportunity segments"

‘Momentum’


International: “Where to Play"Strategic framework based on growth lens as aligned with TSR

Staffing

SaaS - SCM

SaaS - ERP

SaaS - Digital / mobility

SaaS - CRM

PaaS / IaaS

Other

IT Ops / Security

Office

SCM

ERP

Digital / mobility

BI

CRM

Custom App Out.

Custom App Dev

Technology consulting

Business Consulting

Cib

er

cap

ab

ility


Segment type

$3.0B

Consulting

Enterprise App

XaaS

Custom App

Staffing

Market size

Core offerings do not present high growth

oppty, but must be supported to keep

existing rev. base

Though not currently highest

opportunity / capability, XaaS

opportunities must be considered to

stay competitive

Note: certain segments have minor shifts due to qualitative factors not captured in modelSource: Gartner IT services data; IDC SaaS/It services; BCG IT decision makers survey, August 2014; BCG analysis; Ciber internal data

"Aligned with NA, but more cautious on emerging investment"

‘Momentum’

Major capability gap

likely to be

supplemented with

M&A activity


Financial Summary


• LTM Revenue: $381mm (47%)

• Broad range of IT consulting services covering the full IT

solution life cycle

• Major partnerships include:

• SAP (Managed Services)

• Microsoft (ERP and CRM offerings)

• Oracle (builds custom solutions for clients)

• The four largest countries are Germany, the Netherlands,

the United Kingdom and Norway

Organizational Structure

INTERNATIONALNORTH AMERICA

• LTM Revenue: $432mm (53%)

• EBITDA margin topping 10%

• Domestic ERP and custom software solutions, consulting

and support services

• Services commercial enterprises as well as state and local

governments

• Mid-market focus

• High-end market competitors target larger companies

• Low-end market competitors cannot

compete effectively on price or quality

CIBER has two reporting segments:

North America

($ in millions) 2013 2014 LTM (9/30/15)

Revenue 423.3 422.7 432.2

Direct Costs (307.8) (305.8) (314.1)

Gross Profit 115.5 116.8 118.1

SG&A (82.0) (77.9) (76.5)

EBITA 33.5 39.0 41.6

Gross Margin (%) 27.3% 27.6% 27.3%

EBITA Margin (%) 7.9% 9.2% 9.6%

International

($ in millions) 2013 2014 LTM (9/30/15)

Revenue 456.4 441.9 380.9

Direct Costs (349.1) (336.8) (287.9)

Gross Profit 107.3 105.2 93.0

SG&A (83.9) (85.8) (69.3)

EBITA 23.4 19.4 23.7

Gross Margin (%) 23.5% 23.8% 24.4%

EBITA Margin (%) 5.1% 4.4% 6.2%


Q3 2015 Financial Highlights

Financial Summary • Net revenue of $192.6 million, down 1% in constant

currency, down 9% Y/Y in USD

• Gross margin of 26.8%, up 70bps sequentially

• Non-GAAP EPS of $0.01, versus ($0.02) in the prior year

• Operating cash flows used in continuing operations of $5

million

Q3 Revenue

Growth Y/Y%

(constant

currency)

Non-GAAP(2)

EBITA%Change Y/Y

International $ 82.8 -6% 5.5% +3.8 pts

North America $ 110.0 +4% 9.3% -0.6 pts

Ciber (1) $ 192.6 -1% 1.4% 0.0 pts

(1) Includes Other Segment and Inter-segment

(2) A Reconciliation from GAAP to Non-GAAP financials is provided at www.ciber.com


2014 Financial Highlights

Financial Summary • Net revenue of $863.6 million, down 2% Y/Y in both

USD and constant currency

• Gross margin of 25.8%, up 40bps Y/Y

• Non-GAAP EPS of $0.12, down $0.01 from 2013

• Cash from operations of $2 million

FY Revenue

Growth Y/Y%

(constant

currency)

Non-GAAP(2)

EBITA%Change Y/Y

International $ 441.9 -3% 4.4% -0.7 pts

North America $ 422.7 flat 9.2% +1.3 pts

Ciber (1) $ 863.6 -2% 2.5% +0.2 pts

(1) Includes Other Segment and Inter-segment

(2) A Reconciliation from GAAP to Non-GAAP financials is provided at www.ciber.com


APPENDIX


Ciber Senior Leadership Team

• Joined Ciber in 2014

• Previously served as chief executive officer of Contact Solutions

• Prior to that, was president of BT Global Services, where his team served the needs of some

7,000 clients in more than 170 countries worldwide

• Served as the vice president of sales and chief marketing officer during his 11-year career

with Electronic Data Systems, also known as HP Enterprise Services

• Started his career in New Zealand, where he worked for Hitachi and IBM

• Served on Ciber’s Board of Directors for two years before being named CEO

Michael BoustridgePresident & Chief Executive Officer


• Ciber’s Senior Vice President of Corporate Finance before being named CFO

• Previously Finance Vice President of Hewlett Packard’s Technology Services business

• Prior to that was Hewlett Packard’s Vice President of World-Wide Financial Planning and Analysis

• In his 15-year at Hewlett Packard, held several management and leadership roles including

director of finance for the office of strategy and technology where he supported HP labs, strategy,

corporate development, business incubation, intellectual property and global strategic alliances

• Served on Hewlett Packard’s integration team during the HP-Compaq merger

Christian MezgerEVP & Chief Financial Officer




• Prior to joining Ciber, she was founder and chief executive of thinkingisrequired, a Vivezza company focused on

transforming businesses and the people who run them.

• Previously served as senior executive vice president and CAO for Electronic Data Systems (EDS) and chairman of

the board of directors at ExcellerateHRO

• Prior to that, Piermarini was president of EDS’ Global Energy Industry Group

• Ms. Piermarini also led EDS’ global human resources, enterprise risk management, security and real estate

organizations, and she played an instrumental role in revitalizing the company during its global business

transformation.

• Before joining EDS, Tina was vice president of Strategic Marketing, Sales and Business Development for Halliburton

affiliate GrandBasin, as well as vice president of Marketing and Innovation - Energy for Science Applications

International Corp.

• She also spent 19 years at Data General Corp.

Tina PiermariniExecutive Vice President and Chief Administrative Officer


• Before joining Ciber, Nicholson was Founder and CEO of Hortor, an IT Managed Services Company.

• He is a Non-Executive Director of K2C which provides a full suite of fully integrated channels to market.

• Prior to Hortor, Andy was the Group Managing Director at ECS Group an IT Managed Services

Company.

• At BT Global Services, Andy managed a £1.6b Global Services Business.

• While at BT, he was a member of the Global Services Board and held numerous senior leadership

positions including President for their Global Banking and Financial Markets Business.

Andy NicholsonSenior Vice President - International Client Care




• Prior to joining Ciber, he was chief corporate counsel and chief compliance officer at IHS, a leading

global provider of business information services and decision-support tools.

• Sean has also held key legal positions at WilTel Communications, a major telecommunications firm, as

well as at the law firms of Sneed Lang Herrold, Conner & Winters and Pray Walker.

• He is currently President of the Board of Directors for the Association of Corporate Counsel, Colorado

Chapter. He has been a member since 2010, and has held other positions including First Vice

President, Treasurer and Secretary.

• Sean is also on the Professional Advisory Board for the Institute for Enterprise Ethics at the Daniels

College of Business, University of Denver.

Sean RadcliffeSenior Vice President, General Counsel and Corporate Secretary


• Before joining Ciber, he was Vice President, Treasurer at Local Insight Media, a yellow pages publisher

generating more than $500M in annual revenue across the U.S. Puerto Rico and the Dominican

Republic. He also served as the company’s Chief Financial Officer for its Caribbean subsidiary.

• Previously, Chris was CEO and interim CFO of Loud Financial.

• Prior to Loud Financial he worked for TeleTech Holdings, Inc. in various financial management positions

including CFO for TeleTech’s European business unit as well as treasurer and vice president of the

corporation.

• He also held a key financial role at NCR, and was a senior consultant for Deloitte & Touche.

Chris BatsonSenior Vice President - Client Care North America




• Prior to joining Ciber, Jim was a Vice President at BT Global Services, he also served as the

Chief Operating Officer for the Consumer Packaged Goods (CPG) industry segment.

• Before joining BT Global Services Jim spent 28 years at Electronic Data Systems (EDS)

holding positions from Systems Engineer to Enterprise Client Delivery Executive serving

fortune 100 clients.

Jim MillerSenior Vice President – Global Delivery


• Before joining Ciber, Mr. Stine served as Executive Vice President & General Manager,

Software & Professional Services, at Virtustream.

• Prior to Virtustream, Mr. Stine was the General Manager and Managing Director for SAP

America’s Financial Services Market Unit where his team generated 16.5 percent YOY growth

and led the U.S. in cloud subscriptions.

Eric StineSenior Vice President – Global Portfolio



• Joined Ciber in 2015.

• Before joining Ciber, Maryanne was a Vice President at Hewlett Packard Enterprise Services

where she was responsible for the Americas Applications Delivery Services. She also served

as Director of Americas Testing Practice at HP.

• Prior to HP, Maryanne served as Vice President of America’s Consulting and Leveraged

Services at EDS, she also held the position of Director of Professional Services at EDS.

Maryanne FaschanSenior Vice President – Transformation Services

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