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Wayne Gudbranson President & CEO Branham Group Inc.

CANADA’S ICT or “Digital” INDUSTRY: Back on Track and Digital Opportunities. Wayne Gudbranson President & CEO Branham Group Inc. April 2012. Nearly 20 Years of Tracking Canadian Tech Industry. 2012 Branham300. 19 years, and counting… Premier Annual Listing – Top ICT Co’s in Canada

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Wayne Gudbranson President & CEO Branham Group Inc.

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  1. CANADA’S ICT or “Digital” INDUSTRY:Back on Track and Digital Opportunities Wayne Gudbranson President & CEO Branham Group Inc. April 2012

  2. Nearly 20 Years of Tracking Canadian Tech Industry

  3. 2012 Branham300 • 19 years, and counting… • Premier Annual Listing – Top ICT Co’s in Canada • Ranked by Gross Revenues • Print Version – Backbone Magazine • Electronic Version – www.branham300.com

  4. 2012 Branham300 Top 250 Canadian ICT Companies

  5. Top 250 Canadian Technology Companies: Revenues Branham300 Revenue RecordGrowth!! 11.75% Downturn hits Dot-com bubble recovery

  6. Top 10 Canadian ICT Companies in 2011

  7. Canada’s Fastest Growing ICT Companies in 2011

  8. Top 250: Provincial Breakdown Nfld. 2 Companies 0.8% Alta. 24 Companies 9.6% B.C. 40 Companies 16.0% Que. 43 Companies 17.2% Man. 4 Companies 1.6% Sask. 2 Company 0.8% Ont. 130 Companies 52.0% N.S. 2 Companies 0.8% N.B. 3 Companies 1.2%

  9. Major Canada Technology Hubs

  10. Canada’s Top Tech Company

  11. RIM: Hyper Growth Path > 12,000 orgs in NA use BlackBerry Cumulative revenues peak, with subscriber base surpassing 40M Raises $950M via share offering Global subscriber base hits 10M Lists in the NASDAQ, raises $250M Embroiled in patent suit with NTP Introduces first BlackBerry, a wireless handheld computer Surpasses 1M subscribers globally Lists on TSX, raises $115M Introduces first wireless handheld, the Inter@ctive Pager Major upgrades to BlackBerry to include voice/data transmission Balsillie/Lazaridis resign, Heins in as CEO and will explore all options

  12. RIM: What’s Next On the horizon at RIM: • Heins - “Substantial change is what RIM needs” • Focus - Enterprise and RIM’s global network infrastructure • Explore software licensing deals with hardware rivals • Although selling the company is not off the table, RIM is not aggressively pursuing this option.

  13. 2012 Branham300 ICT Industry Sectors

  14. 2012 Branham300 Canadian Software Sector

  15. Software Sector: Canadian Leaders • Open Text maintains top spot with 13% growth • Surpasses the $billion-mark in sales for the first time in company history • Constellation Software realizes rapid top/bottom-line growth • Fueled partially by 22 acquisitions completed in fiscal 2011 • Organic growth for fiscal 2011 - 10% • Algorithmics acquired by IBM in late-2010 for $387 million

  16. Software Sector: Revenues +17 % +15 % 2011 2010 2011 2010

  17. 2012 Branham300 Canadian ICT Professional Services Sector

  18. ICT Prof. Services Sector: Canadian Leaders • CGI once again headlines sector in 2011 • Revenues up 16% largely due to $923M buy-out of U.S.-based Stanley • More than $5B in new business signed over past 12 months • Four of the Top 5 produced stellar results in 2011 • Procom solidified itself as Canada’s IT staffing leader with 69% growth • Softchoice & MDA also generated 10%+ year-over-year increases

  19. ICT Prof. Services Sector: Revenues +2 % +4 % 2011 2010 2011 2010

  20. 2012 Branham300 Canadian ICT Hardware & Infrastructure Sector

  21. ICT HW & Infr Sector: Canadian Leaders • RIM’s fiscal 2011 results strengthens position as sector leader • Fiscal 2012 results already in – Sales of US$18.44B, down 7% • Revenues expected to continue to slow over next 8-12 months • SMART Technologies surged into the 4th spot in 2011 • Strengthened leadership position in interactive whiteboard market • However, growth has stalled (down 4%) through 3Q’s of fiscal 2012

  22. ICT HW & Infr Sector: Revenues +2 1 % +21 % 2011 2010 2011 2010

  23. 2012 Branham300 Canadian x Service Provider Sector

  24. x Service Provider Sector: Canadian Leaders • Top 5 xSP firms maintained their leadership positions in 2011 • Big Three – BCE, Rogers & Telus – continue to dominate • Shaw Communications only player to generate >10% growth • Impending wireless spectrum auction could shakeup sector • Rules cap how much spectrum Big Three can buy • Also relaxes foreign investment restrictions

  25. x Service Provider Sector: Revenues +6 % +6 % 2011 2010 2011 2010

  26. 2012 Branham300 Top 25 Up and Comers

  27. Top 25 Up and Comers • Comprised of firms established within the past three years • Companies are not ranked; selected based on innovation, creativity and long-term potential • Represents the innovative companies that will lead the industry forward

  28. Top 25 Up and Comers

  29. 2012 Branham300 Top 25 ICT Multinationals

  30. Top 25 ICT Multinationals

  31. Top 10 ICT Security Companies

  32. Identity management is a Key Issue in information security Governments & Corporations are using to Provide and Control access to places and services (bank accounts, buildigs and computer applications) Identity Management Identity management has become a key issue in information security Governments and businesses are using identity management systems to provide and control access to places and services such as bank accounts, buildings and computer applications.

  33. Identity management is a Key Issue in information security Governments & Corporations are using to Provide and Control access to places and services (bank accounts, buildigs and computer applications) Identity Management Identity theft is increasing With it, the risk intensifies that not only data but an individual's privacy and reputation might be compromised.

  34. Identity Management An individual's identity arises in two ways: biologically & socially Biometric identity relates to things we inherit from our parents, such as DNA, fingerprints, retina patterns Digitized biometric identity management interesting to state agencies such as immigration, police, healthcare, others that need to determine an individual's identity accurately and quickly. We also have a wide range of social identities. These arise from our interaction with others.

  35. Identity Management Creating a social identity requires an authority to accept liability for certifying that the person concerned is in fact the individual they say they are. That requires a verifiable audit trail Parents register the birth of a child & medical records should confirm the mother's pregnancy & the child's birth Only a match of the baby's DNA with that of both its parents will prove to a court a child's identity and who his or her parents are Identity management has led governments to seek joining together an individual's social & biometric identities. The aim - greater certainty about the authenticity of an identity.. Example – UK Government’s controversial intention to introduce biometric-based identity cards to all citizens

  36. Identity Management In the workplace, companies are increasingly using a person's role plus their identity to provide access to a firm's information system, but to limit that access to only those systems to which the individual needs access. In the past, information depended on a physical device, such as a magnetic card, or a logical key, such as a password. These single factor authentication models are Increasingly being replaced by two, three or even four factors, or credentials, to authenticate the user's identity and allow access. There is a vibrant industry devoted to identity authentication and access technologies (fingerprint readers, retina scanners, palm readers). There is an equally vibrant criminal fraternity devoted to finding ways around such systems. Overall, more technology innovation will help - huge opportunity User education has to increase people still supplier individual security data for a chocolate bar.

  37. 2012 Branham300 Key Industry Trends

  38. Key ICT Industry Trends Market conditions improving, but are still fragile.

  39. Key ICT Industry Trends The buy-side remains slow, with very long sales-cycles

  40. Key ICT Industry Trends ICT Industry is facing a skills shortage,we need top talent to succeed.

  41. ICT Industry Trends The Canadian start-up scene is hot.Entrepreneurs are rock stars.

  42. Key Message A Call To Action: • Government has acted, but must do more. • Tech communities build technology hubs, which provide a foundation for an industry.

  43. Key Message A Call To Action: • Young entrepreneurs = tomorrow’s leaders. Invest in them heavily today. • Be the next $billion-dollar company.

  44. Key Message Everything is an ICT process:Technology is the differentiator.

  45. Q&A

  46. Contact J. Wayne Gudbranson President & CEO Tel: (613) 745-2282 ext 113 wayne@branhamgroup.com www.branhamgroup.com

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