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INVESTOR PRESENTATION
April 6, 2017
INVESTOR CONFERENCE Laurentian Bank Securities
DISCLAIMER
3
Forward-looking statement This document contains certain forward-looking statements with respect to the Company. These forward-
looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual
results to differ materially from those contemplated by these forward-looking statements. We consider the
assumptions on which these forward-looking statements are based to be reasonable, but caution the
reader that these assumptions regarding future events, many of which are beyond our control, may
ultimately prove to be incorrect since they are subject to risks and uncertainties that affect us. We
disclaim any intention or obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as required by applicable securities
legislation. All amounts are in Canadian dollars.
These assumptions include, without limitation:
+ No significant change in the current value of CAD$ vs. US$
+ No significant increase or decrease in revenues and operating expenses
+ Stable market conditions
INVESTOR PRESENTATION
OUR MISSION
Provide innovative and efficient E-commerce solutions
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COMPANY OVERVIEW
+ Founded in 1996, public since 2000, MDF.TO
+ Workforce of 450 employees
+ Revenue $73.0M, Adj. EBITDA $28.6M, 39% (FY16)
+ Market capitalization $240M*
+ Dividend $0.10/quarter
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
*as at March 30, 2017
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LONG TERM VALUE CREATION METRICS
15,1 17,4
25,2 24,3 27,5 28,6
FY11 FY12 FY13 FY14 FY15 FY16
Adjusted EBITDA
10,3 12,3 18,0
22,2 24,1 22,3
FY11 FY12 FY13 FY14 FY15 FY16
Cash flow from Operations
0,58 0,69
0,97 0,80
1,00 1,05
FY11 FY12 FY13 FY14 FY15 FY16
Earnings per share
47,1 53,8
60,7 65,4 70,2 73,0
FY11 FY12 FY13 FY14 FY15 FY16
Revenue
(in millions of CA$, except per share amounts | CAGR: compound annual growth rate)
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
7
OUR BUSINESSES
(JOB BOARD)
(CLASSIFIED ADS)
(ONLINE DATING) (CONTRACT MANAGEMENT)
(E-PURCHASING)
(E-PURCHASING)
STRONGEST GROWTH POTENTIAL
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
(SUPPLY CHAIN) (AUTOMOTIVE AFTERMARKET)
(DIAMONDS & JEWELRY)
(WINE & SPIRITS)
(ELECTRONIC COMPONENTS)
FOCUS ON ORGANIC GROWTH
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FOCUS ON ORGANIC GROWTH
Invest in highest growth potential platforms
o E-Purchasing
o Supply Chain
oConsumers
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
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E-PURCHASING OFFERING
E-purchasing Market: Double digit growth market*
Merx (Canada): 2,000 buyers 70,000 suppliers
BidNet (USA): 1,100 agencies 60,000 suppliers
Recurring revenues: ~55%
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
*(Forrester Research, see appendix)
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E-PURCHASING GROWTH STRATEGY
Monetize existing buyer relations through VAS A
Grab new business with Source-to-Contract
B
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
+ Bid Evaluation + Contract Management + Vendor Performance Management
+ Develop the US enterprise market
+ Increase buyer stickiness through a broader offering
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CONTRACT LIFECYCLE MANAGEMENT
RFP BIDS AWARD
CONTRACT MANAGEMENT
PERFORMANCE MANAGEMENT
VENDOR QUALIFICATION
DOCUMENT DEVELOPMENT
EVALUATION
Essential piece for MERX & BidNet for product evolution
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
Source-to-Contract
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ACQUISITION
+ In line with our growth strategy
+ Operate in fast growing market*
+ Provide cross selling, integration opportunities
+ Generate ~70% of recurring revenues (50% in USD)
+ Asset purchase – May 31, 2016, $17.1M
*(CAGR 2010-2015 of 15% according to Forrester Research)
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
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SUPPLY CHAIN OFFERING
Unique Combined Offering Private Catalogue EDI Business Network (VAN Tier-1)
Automotive
Healthcare
Apparel & General Merchandise
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
90%+ Recurring revenues (75% US$)
3,000+ Retailers & suppliers
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SUPPLY CHAIN GROWTH STRATEGY
o Help retailers address the challenges of the digital
transformation through our combined offering
o Introduce Web EDI for small vendors who need to transact with retailers
o Increase Sales & Marketing efforts
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
Our solutions accelerate time-to-market, with richer and more standardized product data, that retailers can quickly promote on any sales channel, especially online.
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CONSUMER GROUP OFFERING
PRESENT IN KEY LIFE EVENTS & MOMENTS
+ LesPAC: Buy & sell
+ Jobboom: Find a job & manage your career
+ Réseau Contact: Find love & build relationships
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
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CONSUMER GROUP GROWTH STRATEGY
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
More Content more Traffic more Leads
Increase platform content
o Freemium model - March 1st
Monetize added content
o New visibility tools
Focus on SMB that wants to sell online
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CONSUMER GROUP GROWTH STRATEGY
Evolution of the business platform to:
o Provide additional tools for the job seeker
o Improve recruitment process of the employer
INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
PROCÈS-VERBAL DE LA RÉUNION DU 2 JUIN 2016 FINANCIAL HIGHLIGHTS Nine months ended December 31, 2016
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FY2017 HIGHLIGHTS – 9 MONTHS
+ Revenues of $57.7M | +7% − ASC revenues - 7 months $3.4M*
+ Adjusted EBITDA of $22.2M | 38% margin
+ Profit of $12,3M | $0.82 per share
+ Cash flow from operations of $15.5M
INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016
* Net of the acquired deferred revenue adjustment to their fair value @ the acquisition date: $0.6M
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QUARTERLY RESULTS
(in millions of CA$)
INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016
18,5 18,8 19,0 19,5 19,3
8,0 6,6 7,0
8,1 7,1
4,9
2,5 3,7 4,5 4,0
43%
35% 37% 42%
37%
Q3-FY16 Q4-FY16 Q1-FY17 Q2-FY17 Q3-FY17Revenues Adjusted EBITDA Profit Adjusted EBITDA margin
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FINANCIAL POSITION
+ Healthy balance sheet
+ Strong adjusted EBITDA margin
+ High cash flow from operations
+ Net debt / adjusted EBITDA @ 0.8X*
+ Liquidity of $57M + accordion feature of $40M*
*LTM Adjusted EBITDA, Net debt as at December 31, 2016 *Accordion feature subject to lenders approval
INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016
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M&A GUIDELINES
+ North American location
+ Ethical and diversified business sectors
+ Strong business models – High profitability – Recurring | Transactional revenues – Sustainable competitive advantage
+ Web technology
+ Acquisition target – Companies between $5M - $25M in annual revenues – Aligned to take advantage of our resources
(Technical, Financial, HR)
INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016
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OWNERSHIP
+ 14.9 million shares outstanding*
+ Alignment of interests − Directors & Officers owns 28% of all shares o/s
• Claude Roy, President & CEO, currently holding 24%
*March 31st, 2017
INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016
25 INVESTOR PRESENTATION
BOARD OF DIRECTORS Claude Roy Chairman and CEO
Gilles Laurin Chartered Accountant and Director of Corporations
Michel Dubé Consultant
Catherine Roy President Gestion Catsachar Inc.
André Gauthier President André Gauthier Holding Inc.
Jean-François Sabourin President and CEO FinlogiK Inc. & JitneyTrade Inc.
Gilles Laporte Director of Corporations
MANAGEMENT TEAM Claude Roy President and Chief Executive Officer
Suzanne Moquin Vice President, Consumers Solutions
Paul Bourque Chief Financial Officer
Jean-Michel Stam Vice President, Canadian Operations
Hélène Hallak Vice President and General Counsel
Stéphane Anglaret Vice President, Technology
Mark Eigenbauer Vice President, US Operations
Camil Rousseau Vice President, Research & Development
APPENDIX
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FORRESTER RESEARCH
*
INVESTOR PRESENTATION
MEDIAGRIF INTERACTIVE TECHNOLOGIES INC. 1111 St-Charles Street West, Suite 255 Longueuil, Québec Canada J4K 5G4 www.mediagrif.com
Toll Free: 877 677-9088 Phone: 450 449-0102
Fax: 450 449-8725
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