Presentation aux Investisseurs 20170604€¦ · Microsoft PowerPoint -...

INVESTORPRESENTATION

June 6, 2017

DISCLAIMER

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Forward-looking statementThis 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 efficientE-commerce solutions

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COMPANY OVERVIEW

+ Founded in 1996, public since 2000, MDF.TO

+ Workforce of 450 employees

+ Revenue $77.7M, Adj. EBITDA $28.6M, 37% (FY17)

+ Market capitalization $230M*

+ Dividend $0.10/quarter

INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH

*as at June 6, 2017

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$0,58 $0,69 

$0,97 $0,80 

$1,00  $1,05  $1,06 

FY11 FY12 FY13 FY14 FY15 FY16 FY17

Profit par action

$10,3 $12,3

$18,0$22,2 $24,1 $22,3 $23,7

FY11 FY12 FY13 FY14 FY15 FY16 FY17

Cash flow from Operations

15,1 17,4

25,2 24,327,5 28,6 28,6

FY11 FY12 FY13 FY14 FY15 FY16 FY17

Adjusted EBITDA

47,1 53,8 60,7 65,4 70,2 73,0 77,7

FY11 FY12 FY13 FY14 FY15 FY16 FY17

Revenue

LONG TERM VALUE CREATION METRICS

(in millions of CA$, except per share amounts | CAGR: compound annual growth rate)

INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH

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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

o Consumers

INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH

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E-PURCHASING OFFERING

E-purchasing Market:Double digit growth market*

Merx (Canada): 2,000 buyers70,000 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 VASA

Grab new business with Source-to-ContractB

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

RFPBIDS AWARD

CONTRACTMANAGEMENT

PERFORMANCEMANAGEMENT

VENDOR QUALIFICATION

DOCUMENTDEVELOPMENT

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 OfferingPrivate CatalogueEDI 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 KEYLIFE 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 2016FINANCIAL HIGHLIGHTSYear ended March 31st, 2017

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FY2017 HIGHLIGHTS

Revenues of $77.7M | +6% ASC revenues - 10 months $4.2M*

Adjusted EBITDA of $28.6M | 37% margin

Profit of $15.8M | $1.06 per share

Cash flow from operations of $23.7M

INVESTOR PRESENTATION | YEAR ENDED MARCH 31ST, 2017

* 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 | YEAR ENDED MARCH 31ST, 2017

18,8 19,0 19,5 19,3 20,0

6,6 7,08,1

7,1 6,4

2,53,7

4,5 4,0 3,6

35%37%

42%37%

32%

Q4-FY16 Q1-FY17 Q2-FY17 Q3-FY17 Q4-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 @ 0.7X*

Liquidity of $59M + accordion feature of $40M*

*LTM Adjusted EBITDA, Net debt as at March 31, 2017*Accordion feature subject to lenders approval

INVESTOR PRESENTATION | YEAR ENDED MARCH 31ST, 2017

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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 | YEAR ENDED MARCH 31ST, 2017

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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 | YEAR ENDED MARCH 31ST, 2017

25INVESTOR PRESENTATION

BOARD OF DIRECTORSClaude RoyChairman and CEO

Gilles LaurinChartered Accountant and Director of Corporations

Michel DubéConsultant

Catherine RoyPresidentGestion Catsachar Inc.

André GauthierPresidentAndré Gauthier Holding Inc.

Jean-François SabourinPresident and CEOFinlogiK Inc. & JitneyTrade Inc.

Gilles LaporteDirector of Corporations

MANAGEMENT TEAMClaude Roy President and Chief Executive Officer

Suzanne MoquinVice President, Consumers Solutions

Paul BourqueChief Financial Officer

Jean-Michel StamVice President, Canadian Operations

Hélène HallakVice President and General Counsel

Stéphane Anglaret Vice President, Technology

Mark Eigenbauer Vice President, US Operations

Camil RousseauVice President, Research & Development

APPENDIX

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FORRESTER RESEARCH

*

INVESTOR PRESENTATION

MEDIAGRIF INTERACTIVE TECHNOLOGIES INC. 1111 St-Charles Street West, Suite 255Longueuil, QuébecCanada J4K 5G4

www.mediagrif.com

Toll Free: 877 677-9088Phone: 450 449-0102

Fax: 450 449-8725