CSG International : Q1 2024 Earnings Call Q1 2024 Earnings - Presentation

Safe Harbor

Forward-Looking

Statements + Disclaimers

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "may," "target," and similar expressions and variations or negatives of these words. These forward-looking statements may include, among other things, statements with respect to our strategies and priorities, future growth prospects and opportunities, uses of cash, and other measures that may impact our financial performance; expectations regarding our share repurchase program; anticipated impacts of pandemics; the strength of our balance sheet and tenor of our third- party debt; and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include events that are outside of our control, such as general economic, legislative, political and regulatory factors, and the impact of weather conditions, natural disasters, or any epidemic, pandemic or disease outbreak (including pandemics); other factors detailed from time to time in our filings with the U.S. Securities and Exchange Commission; and

management's response to any of the aforementioned factors. For

additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, please see our filings with the U.S. Securities and Exchange Commission, including our most recently filed Form 10-Q and/or Form 10-K. These forward-looking statements speak only as of the date of this release. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward- looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Use of Non-GAAP

Financial Measures

To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), we reference non-GAAP operating income, non-GAAP adjusted operating margin percentage, non-GAAP Earnings per Share (EPS), non-GAAP adjusted EBITDA, and non-GAAP free cash flow. CSG believes that these non-GAAP financial measures, when reviewed in conjunction with its GAAP financial measures, provide investors with greater transparency to the information used by CSG's management in its financial and operational decision making. CSG uses these non-GAAP financial measures for the following purposes: certain internal financial planning, reporting, and analysis; forecasting and budgeting;

certain management compensation incentives; and communications with CSG's Board of Directors, stockholders, financial analysts, and investors.

These non-GAAP financial measures are provided with the intent of providing investors with the following information: more complete understanding of CSG's underlying operational results, trends, and cash generating capabilities; consistency and comparability with CSG's historical financial results; and comparability to similar companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures are not measures of performance under GAAP, and therefore should not be considered in isolation or as a substitute for GAAP financial information. Limitations with the use of non-GAAP financial measures include the following items: non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles; the way in which CSG calculates non-GAAP financial measures may differ from the way in which other companies calculate similar non-GAAP financial measures; non-GAAP financial measures do not include all items of income and expense that affect CSG's operations and that are required by GAAP to be included in financial statements; certain adjustments to CSG's non-GAAP financial measures result in the exclusion of items that are recurring and will be reflected in CSG's financial

statements in future periods; and certain charges excluded from CSG's non-GAAP financial measures are cash expenses, and therefore do impact CSG's cash position.

CSG compensates for these limitations by relying primarily on its GAAP results and using non-GAAP financial measures as a supplement only. Additionally, CSG provides specific information regarding the treatment of GAAP amounts considered in preparing the non-GAAP financial measures and reconciles each non-GAAP financial measure to the most directly comparable GAAP measure.

Please refer to the investor relations section of CSG's website for disclosures related to non-GAAP financial measures and reconciliations.

Revenue

Diversification

Strategy Paying Off

• Revenue from industry verticals outside of CSPs exceeds 30% for the first time
• Exciting new sales wins in Q1 across all areas of business including at
  MTN and Banglalink
• Strong sales pipeline across multiple industry verticals for all CSG SaaS solutions

Proving Responsible

• Diverse Companies Perform Better
• Made carbon commitment pledge in December; aim to achieve Scope 1 & 2 carbon emission neutrality by 2035
• Issued second annual Global Impact Report; underpins CSG's commitment to reducing environmental impact, supporting communities and fostering a culture of inclusion and belonging

Guidance Targets Remain on Track + Continued Returns to Shareholders

• Confirming all 2024 guidance targets
• Returned $19 million to shareholders via dividends and share repurchases in Q1; have returned $160+ million to shareholders over last twelve months
• Expect to generate approximately 48% of our revenue in H1 2024 and 52% in H2 2024

1

Grow Organic

Revenue Faster

Consistently grow organic revenue 2% to 6% year-over-year with executive compensation tied to delivering at the midpoint or higher

2

Add Strategic

Operating Scale

(50% bigger)

Grow CSG to >$1.5B by year-end2025 with disciplined inorganic M&A moves that grow EPS

• expand margins faster than revenue

3

Be the #1 SaaS

Provider for Global

Telecom & Cable

Be easier to do business with than any competitor

• bring more value as the SaaS provider of choice for global CSPs (Telecom, Wireless & Broadband)

4

Diversify revenue

faster in exciting

new verticals

Consistently achieve strong growth in big non-CSPindustry verticals driven by CSG's SaaS Customer

Experience & Payments suites of solutions

2 >50% Business Growth by FY2025

BASE CASE GOAL

HOW DO WE GET THERE?

+50%

1.5B

• Grow organic revenue faster
• Integrate highly disciplined, strategic, & accretive M&A
• Consistently expand operating leverage

+5%

1,169

1,090

1,046

1,220

1.0B

CSG's Solid Position w/ Charter & Comcast

• CSG serves nearly 64 million combined customers at Comcast and Charter
• High recurring revenue, long- term contracts with top two customers; Comcast contract runs through year-end2025, while Charter contract is through Q1 2028

Growing our North American Cable Business

• Completed a digital CX deal with one of the largest North American broadband providers to drive customer payment actions, reduce call center activity and costs
• CSG serves nearly 80 million subscribers across North American broadband

Expanding Global BSS Business w/ New Logo Wins

• Signed a deal expansion with MTN, Africa's largest mobile network operator, to provide support for our BSS suite of solutions across certain MTN South Africa businesses
• Selected to optimize wireless customer experience for Banglalink, a leading telecom operator in Bangladesh

PharmacyRetail

To CSG's Shareholders

We will strive to deliver faster recurring revenue growth, improved operating leverage & increased industry vertical diversification