ICT companies in the greater Toronto region realized revenue growth of 18% in '08. The YTA is the membership association that supports a strong and sustainable tech cluster www.yorktech.ca

1. 2009 Branham300
YTA/GTMA Luncheon
April 3, 2009 Event Sponsor:

2. 2009

3. Agenda
About Branham Group
2009 Branham300 – GTA
The Economic Downturn

4. Branham Group – About Us
BRANHAM GROUP
Global Marketing Consultancy
and Industry Analyst firm
focused on the Information
Technology Sector
Established in1990
Based in Ottawa, Canada
Services Delivered Over 50
Countries

5. 2009 Branham300 Edition Results
2009 Branham300 Edition
Results

6. Branham300 – 2009 Edition
…
16 years, and counting…
Premier Annual Listing - Top ICT Firms in Canada
Ranked by Gross Revenue
Print Version Published by Backbone Magazine
Electronic Version at www.branham300.com

7. Why Compile the Branham300?
Raise the profile of the Canadian ICT Industry both nationally and
globally
 Demonstrate its depth and breadth
Provide up and coming companies with much needed recognition
 Increase market exposure and brand awareness
 Open the door for business opportunities, both domestically
and abroad
Someone needed to stand-up, pound their chest, and shout:
“CANADA’S ICT INDUSTRY IS INNOVATIVE, LEADING EDGE,
AND HERE TO STAY!”

8. Branham300
The Branham300 is composed of:
 Top 250 Canadian ICT Companies
 Top 25 Multinationals
 Top 25 Up and Comers
 The Next 50 (New in 2008!)

9. Top 250 – Over the Years
5 year growth = 52.46%
1 year growth = 17.92% $75.94
+17.92%
$65.4 $64.4
$59.07 +10.72%
$55.83 -1.53%
+5.8%
$49.81
+12.09%

10. GTA Companies – Three Year Revenue Comparison
GTA Companies increased revenues by 15.63% in 2008
 Represent 44.72% of the Top 250’s total revenues
GTA IS A SIGNIFICANT DRIVER OF GROWTH FOR THE CANADIAN ICT INDUSTRY
$34.0 B
+15.63%
$29.4 B
$29.1 B
+0.95%

11. Branham300 Companies by Province
Newfoundland
and Labrador
2 Companies
0.8%
British PEI
Columbia 1 Company
Alberta
34 Companies 0.4%
24 Companies Manitoba
13.6%
Sask. Quebec
9.6% 3 Companies
1 Company 33 Companies
Ontario
1.2%
0.4% 13.2%
146 Companies
58.4% Nova Scotia
2 Companies
0.8%
New Brunswick
4 Companies
1.6%

12. GTA Tech Companies – Importance to the
Industry
0.08% – GTA’s Land Area Relative to all of Canada
38.0% – Percentage of the Top 250 Canadian ICT
Companies HQ in the GTA

13. Growth is everywhere…in the GTA
36.8% of GTA companies appearing on the Top 250 increased revenues
by more than 20% in 2008
 74.7% of GTA companies recognized realized positive revenue
growth in 2008!

14. GTA Tech Companies – Importance to the Industry
GTA technology companies represent a
significant portion of each of the Top 250
Quartiles
 GTA is home to all sizes of tech. businesses
Concentration of companies by quartile:
38%
34%
32%
30%
% in % in % in % in
Top 10 Top 50 Top 100 Top 250

15. Top 10 Tech Companies - GTA
GTA Rank Rank 2008
Rank 2008 2007 Company Revenues % +/-
Nortel Networks, Toronto, Ont.
1 1 1 $12,719,002 -5%
Celestica, Toronto
2 2 2 $9,481,883 -4%
Rogers Wireless Communications, Toronto
3 6 5 $5,900,000 7%
Aastra Technologies, Concord, Ont.
4 15 15 $760,389 25%
Rogers Communications (ISP), Toronto, Ont.
5 17 16 $677,700 11%
Constellation Software, Toronto
6 19 27 $387,429 30%
PROCOM (Procom Consultants Group), Toronto
7 21 20 $321,000 -6%
Compugen, Richmond Hill, Ont.
8 24 21 $300,000 26%
SMTC Manufacturing, Markham, Ont.
9 25 24 $296,352 -6%
Teranet, Toronto
10 26 23 $267,893 6%
GTA represents 30% of 2008’s Top 10 Canadian Tech companies
These 10 companies represent 92.58% of all GTA Top 250 revenues

16. Major Canadian Metropolis’ Comparison
% of Top 250
City 2008 ($000) 2007 ($000) % +/- Revenues # Companies
$33,977,329
Greater Toronto Area $33,977,329 $29,402,195 15.56% 44.72% 95
Montreal Area $15,005,046 $13,847,050 8.36% 19.75% 29
$29,402,195
Vancouver Area $9,256,921 $8,327,306 11.16% 12.18% 28
Waterloo $8,754,565 $3,986,012 119.63% 11.52% 9
Ottawa Area $2,886,438 $3,578,074 -19.33% 3.80% 25
Calgary $2,488,242 $2,015,736 23.44% 3.28% 21
Winnipeg $1,041,408 $964,919 7.93% 1.37% 3
Halifax $367,144 $291,374 26.00% 0.48% 2
$15,005,046
$13,847,050
$9,256,921
$8,754,565
$8,327,306
$3,986,012
$3,578,074
$1,041,408
$2,886,438
$2,488,242
$964,919
$2,015,736
$291,374
$367,144
‘07 ‘08 ‘07 ‘08
‘07 ‘08 ‘07 ‘08 ‘07 ‘08 ‘07 ‘08 ‘07 ‘08 ‘07 ‘08

17. Leading Tech. Companies in the GTA
Leading Technology
Companies in the GTA

18. Leading Software Companies in the GTA
Rank Rank 250
2008 2007 Ranking Company 2008 Revenues 2007 Revenues % Change
2 4 19 Constellation Software $387,429 $297,606 30%
4 6 34 Algorithmics $176,597 $174,094 1%
7 9 51 Platform Computing $78,537 $75,243 4%
14 11 73 Enghouse Systems $53,009 $55,201 -4%
15 75 Redknee $50,701 $38,616 31%
21 25 86 Clarity Systems $41,000 $32,000 28%
24 19 92 Belzberg Technologies $39,369 $40,653 -3%
Constellation Software
 #2 ranked software company in Canada (up from #4 in 2007)
 Increased revenues by over 30% in 2008
 Completed over 15 acquisitions
Algorithmics
 Jumped two spots in 2008 to the #4 ranked software company in
Canada
 Slightly increased revenues in 2008 (1% growth)

19. Leading IT Professional Services Companies
in the GTA
2008 2007
Rank 2008 Rank 2007 250 Ranking Company Revenues Revenues % Change
3 4 21 PROCOM (Procom Consultants Group) $321,000 $342,000 -6
5 5 24 Compugen $300,000 $239,000 26
6 7 26 Teranet $267,893 $253,681 6
7 8 28 Brainhunter $237,000 $224,565 6
11 12 43 TES - The Employment Solution $106,915 $89,495 19
12 44 OnX Enterprise Solutions $106,720 $55,463 92
16 53 FlexITy Solutions $78,000 $40,000 95
17 16 58 Azcar Technologies $71,622 $70,026 2
18 19 60 Adastra $70,140 $55,000 28
21 20 70 Systematix $55,000 $52,000 6
23 90 Cyberplex $40,000 $17,652 127
High concentration of IT Professional Services companies
headquartered in the GTA
 44% of the TOP 25 IT Professional Services companies in Canada
located in the GTA
 91% of GTA IT Professional Services Companies experienced positive
revenue growth in 2008
PROCOM Consultants Group
 Inched into the top three for the first time in 2008

20. Leading ICT Hardware and Infrastructure
Companies in the GTA
Rank Rank 250 2008 2007
2008 2007 Ranking Company Revenues Revenues % Change
1 1 1 Nortel Networks $12,719,002 $13,406,921 -5%
2 2 2 Celestica $9,481,833 $9,883,012 -4%
6 6 15 Aastra Technologies $760,389 $606,589 25%
9 8 25 SMTC Manufacturing $296,352 $313,997 -6%
15 14 38 Gennum $129,326 $110,497 17%
21 19 54 Coretec $77,600 $85,417 -9%
25 66 Firan Technology Group $60,041 $55,632 8%
GTA ICT Hardware and Infrastructure companies contribute 65.57% of
Top 25 ICT Hardware and Infrastructure companies revenues
Nortel Networks – ranked #1 in 2008
 Largest company in the Canadian ICT industry by gross revenue
 Uncertainty circles telecom giant following January bankruptcy filing
announcement
Celestica – ranked # 2 in 2008
 Can they surge forward in 2009 to claim the top spot

21. Leading x Service Provider Companies in
the GTA
Rank Rank 250 2008 2007 %
2008 2007 Ranking Company Revenues Revenues Change
3 3 6 Rogers Wireless $5,900,000 $5,500,000 7%
7 7 17 Rogers Communications (ISP) $677,700 $612,000 11%
9 8 27 Cogeco Cable (ISP and data) $250,784 $217,538 15%
Highly consolidated sector – dominated by the “Big Three”
 BCE, Telus, Rogers
 “Big Three” represent 79% of Top 10 xSP companies revenues
Rogers Wireless
 Maintained its 3rd ranked position in 2008
 Increased revenue by 7% in 2008

22. Top 20 Movers and Shakers
Number of Rank Rank
Rank Company places moved 2008 2007
2 Cyberplex, Toronto 65 90 155
3 Scalar Decisions, Toronto 55 85 140
7 The Herjavec Group, Toronto 37 120 157
9 Illumiti, Markham, Ont. 31 131 162
14 Klick Communications, Toronto 27 123 150
17 Sangoma Technologies, Markham, Ont. 26 181 207
18 RuggedCom, Woodbridge, Ont. 25 79 104
7 of the Top 20 biggest movers on the 2008 Branham300 are GTA-based
companies
Cyberplex headlines this year’s list after achieving 127% revenue growth
(estimated) in 2008
 2nd consecutive year they have appeared on the Movers and Shakers list
 Have jumped a combined 126 positions on the Branham300 in the last two
years.

23. Top 25 Up and Comers
Top 25 Up and Comers

24. Top 25 Up and Comers
Year
Company Est. Website Business Specialties
ecobee 2007 www.ecobee.com Home thermostat automation for energy optimization.
Filemobile 2006 www.filemobile.com On-demand social media platform solutions.
Fonolo 2007 www.fonolo.com Interactive voice response avoidance solutions.
Morega Systems 2006 www.morega.com Advanced media mobility software systems.
Integrated inspection, safety compliance and maintenance
N4 Systems 2006 www.n4systems.com solutions.
PlanetEye 2006 www.planeteye.com Interactive online travel planning solutions.
Zerofootprint 2008 www.zerofootprint.net Enterprise carbon management solutions.
Recognizes the future of the ICT industry in Canada
Listing is based on the following:
 Long-term potential for success
 Innovation
 Creativity
7 of this year’s 25 Up and Comers are headquartered in the GTA
 INNOVATION LIVES HERE

25. Branham300 Summary
The Canadian ICT Industry finished strong in 2008
and into early 2009
 Top 250 set a new Branham300 revenue record!
 $76 Billion in combined revenues
 Increased revenues by 18% in 2008
GTA Companies on the Branham300 enjoyed a
successful 2008
 Increased revenues by 15.63% in 2008
 Largest geographic segment of the Canadian ICT
industry

26. The Economic Downturn
The Economic
Downturn

27. The Economic Downturn

28. 2009 - In the Headlines…

29. How will Economic Downturn Impact the
Canadian ICT Industry?
Marginal impact to date, minimal in the next 12 months
ICT is an enabler
Potential slippage in certain geographic and vertical markets
 US, UK
 Automotive, Energy, Mining sectors
Implications for vendors
THE CANADIAN ICT
 Longer sales cycles
INDUSTRY INCREASED
 Some price discounting
REVENUE BY 18% IN
 Increase sales and marketing spend
2008
 Focus on innovation
 Continue to diversify

30. Companies Can Succeed in Difficult Times!
The early-1980’s:
 Slow money supply growth and high interest rates cause economy to slow
 Interest rates rise to a peak of 21% in August 1981
 18 companies on the 2009 Branham300 founded!
 E.g. Compugen, OnX Enterprise Solutions, Coretec
The early-1990’s
 Interest rates spike (high – 14.05%)
 US was also experiencing recession – severely hurt Canadian exports
 25 companies on the 2009 Branham300 founded!
 E.g. Teranet, Platform Computing, Dundas Data Visualization
Dot-Com Meltdown
 39 companies on the 2009 Branham300 founded!
 E.g. Brainhunter, TeraGo Networks, Ideaca Knowledge Services

31. IT has overcome adversity before, remember?
.Com/.Toast:
THE GROWTH
 Nearly half-a-decade of record setting growth, surging
stocks prices (leading to overvalued companies), and
free spending
THE BURST
 NASDAQ (tech dominated exchange) fell 39% in 2000!
 Total market value of technology firms declined
approx. $5 trillion US between March 2000 and
October 2002
THE RECOVERY
 Survival of the fittest
 Canadian ICT Industry achieves five consecutive years of growth

32. Closing Remarks…
“Some people dream of
success... while others wake up
and work hard at it.”
~Author Unknown

33. Q&A

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