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INVESTOR PRESENTATION “Fluid transmission and use of data to power today’s commerce ecosystems.” November 2019

INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

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Page 1: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

INVESTOR

PRESENTATION

“Fluid transmission and use of data

to power today’s commerce ecosystems.”

November 2019

Page 2: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

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 limitations:

+ No significant change in the current value

of CAD$ vs. US$

+ No significant increase or decrease in

revenues and operating expenses

+ Stable market conditions

2

Page 3: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Company History and Key Milestones

3

(1) Before non-recurring items

$25

Claude Roy - CEO

Page 4: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Revenues

+ B2B Platforms

+ B2C Marketplaces

$18,2M

$16,8M

$1,3M

$20,3M

$16,1M

$4,2M

$83,1M

$66,1M

$17,0M

Adjusted EBITDA

+ Margin

$3,7M

20,3%

$6,6M

32,0%

$20,7M

24,9%

Adjusted Profit

+ Per share

$1,7M(1)

$0,11

$3,2M

$0,21

$9,5M(2)

$0,64

Cash Flow from Operations $0,6M $2,7M $12,7M

4

In Millions of CAD $

Except percentages & per share amount

(1) Excluding favorable 0.2 M $ adjustment on sale of a subsidiary

(2) Before impairment of assets held for sale, net of related taxes of $35,1M

Financial Highlights

FY2019

12 MONTHSQ2Q2

FY2020

Total Revenues

$18,2MB2B: $16,9M up 5,0%

B2C: $1,3M

Adjusted EBITDA of

$3,7M21% Margin

Adjusted Profit (1)

$1,7M $0,11 / share

Net Cash Position of

$0,6Mas at September 30, 2019

Page 5: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

B2B Businesses

$43,4$48,1

$54,9

$61,2$66,1

2015A 2016A 2017A 2018A 2019A

In millions of CAD $

CAGR: 9% Cloud-based

SaaS Model

80%+ ARR

50% U.S.

SOURCING

900+ Buyers

150,000 Suppliers

COMMERCE

620+ eCom Clients

5

Page 6: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

The New Mediagrif

66

Page 7: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

We enable the flow

of commerce

Our Mission

7

Page 8: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Unify our strengths to create

a fast-growing cloud-based

commerce technology company

Our Vision

8

Page 9: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Strategic Sourcing - Growth

Sourcing

Supply Base Management

Contract Lifecycle Management

Unified Commerce - Growth

Supply Chain Collaboration

Digital Commerce

Automotive Aftermarket

B2B Marketplaces - EBITDA

Diamonds & Jewelry

Electronic Components

Computer, IT & Telecom Components

Powering a full range of commerce ecosystems

via three key operational pillars:

9

Value creation

across the entire

commercial

ecosystem

Supporting over

$15B in commercial

transactions

Enabling the Flow of Commerce

Page 10: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

VALUE CREATION

• NA coverage with leadership position in Canada and massive

growth potential in the U.S.

• Expansive customer and supplier base to grow from

• 900+ purchasing agencies & 120,000+ supplier network

• Wealth of data to monetize

• Strong best-of-breed CLM solution well positioned to capitalize on

rapidly expanding market

• 85% ARR

GROWTH VECTORS

• Increase ARPU of existing customer base (share of wallet)

• Monetize data with AI + automation with value-added Supplier

Services

• Strategic acquisitions to scale in the U.S.

• Cross sell CLM to current customer base, private SMBs and

enterprises

• More aggressive G2M

10

Strategic Sourcing Overview

Simplifying the sourcing process for buyers and giving

suppliers access to the largest database of contracts

Vital Stats• US$ 10B market by 2023 with +10% CAGR

• Early adoption by public entities, growing

use in IT, communications, retail, health

and automotive

• AI and automation present key

opportunities for accelerated value creation

and operational efficiencies

• CLM market set to double from US$1B

to US$2.5B

Source: MarketWatch – Procurement Software Market Valuation -

October 15, 2018

Source: Research & Markets - Contract lifecycle management

software market: Global industry trends, Share, Size, Growth,

Opportunity and forecast 2019-24 - February 2019

Page 11: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

VALUE CREATION

• Full range offering: B2B and B2C capabilities covering mid to upper

markets

• Ability to service broad needs of customers (front-end, back-end)

• 625+ clients to grow from, including top NA brands

• 23 existing ecosystems + 5,000 paying suppliers

• Combined 77% ARR

GROWTH VECTORS

• Increase ARPU of existing customer base (share of wallet)

• Expand client base with more aggressive GTM

• Cross-selling between eCom and Supply Chain client base

• Strategic acquisitions to accelerate scale in the U.S.

11

Unified Commerce Overview

Driving commerce by connecting suppliers to retailers

and retailers to consumers

Vital StatseCommerce

• US$11B market by 2023 with 22% CAGR

• Only 28% of top NA retailers have unified

platforms, will grow to 81% by 2021

• Early adoption by retailers, manufacturers

and distributors entering direct-to-consumer

models

Supply Chain - EDI

• US$1.4B NA market by 2024 with 11%

CAGR

• Early adoption by retail, growing use in

Healthcare, Automotive, Financial and High-

Tech

• Disruptive new commerce models driving

exponential growth of supply chain EDI

Source: Reuters - Omnichannel Retail Commerce Platform market - February 20, 2019

Source: Retail Touchpoints - 81% of retailers will deploy unified commerce platforms by 2020 - February 5, 2018

Source: Acquire Market Research – February

Source: Global Electronic Data Interchange (EDI) Software Market 2019 by Company, Regions, Type and Application,

Forecast to 2024

Page 12: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

VALUE CREATION

• Generate significant margins to help fuel transformation

• “Neutral” multi-platform marketplaces attracting both buyers

AND sellers

• Well established with prominent industry positions in each vertical

• 3600 high ARPU customers – over 90M parts and accessories –

100K+ newsletter subscriptions

• Models less prone to disruption with high margins

• 85% ARR

• Maintain existing high value-add services

OPERATIONAL FOCUS

• Maximize selling and buying opportunities for members

• Increase ARPU and maximize ALV of existing membership base

• Continued efforts to solidify and improve tech platforms

• More focused efforts on sales activities

12

eMarketplaces Overview

Secure eMarketplaces connecting buyers and sellers to

create transaction efficiency, productivity and profit

Vital Stats• Global B2B eMarketplaces sales set

to hit $3.6 trillion by 2024

• Online will represent 30% of all worldwide

B2B sales

• Presently leveraged mostly by SMBs, with

next adoption wave from large businesses

Source: DigitalCommerce360.com – iBE – Q4 2019

Page 13: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Massive Market Opportunity

13

eCommerceUS$ 11B Market

By 2023

Strategic SourcingUS$ 10B Market

By 2023

Supply Chain - EDIUS$ 1,4B Market

By 2024

10% CAGR

11% CAGR

22% CAGR

Page 14: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Solid Customer Base to Build on and Cross-sell

14…and serving a network of over 150,000 suppliers across North America

Page 15: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Comparable Valuations

Company Market Cap – CA$ Enterprise Value – CA$ xRevenues xEBITDA

Opentext 15,5B 17,9 x4,7 x15

Kinaxis 2,8B 2,5 x10,9 x63,4

SPS Commerce 2,6B 2,4 x6,5 x34,8

Scout RFP N/A US$540M x18 N/A

Mediagrif 89M 96 x1.2 x5.9

Data sources: S&P Capital IQ, Mergermarket;

CRM - Customer Relationship Management; SEC – Security; PYMT - Payment/Financials ; ISS - Industry Specific Software; HCM - Human

Capital Management; ERP - Enterprise Resource Planning; SCM - Supply Chain Management; IS - Internet Software.15

Page 16: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Well Positioned for Accelerated Growth

16

Proven existing

tech + new products

in development

Tech and service offer complementary to existing eCom capabilities

Addition of 600+ clients, 60% U.S. Based

Addition of 20+ GTM resources to bolster sales capabilities

SOLID FINANCIALS ALLOW US TO INVEST IN FAST-GROWING SECTORS

RECENT ACQUISITION

Strong customer

base

Strategic acquisition

plan

Grow sales teams to sell more of

what we have w/ strong focus on U.S.

Increase ARPU + monetize data

+ upsell and cross-sell

+ Tech

+ Customers - revenues

+ GTM capabilities

Page 17: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

18

Gilles Laporte

Chairman of the Corporation

Director of corporations

Catherine Roy

Vice President, Transformation, Mediagrif Interactive Technologies Inc.

President, Gestion Catsachar Inc.

Luc Filiatreault

President and C.E.O., Mediagrif Interactive Technologies Inc.

Jean-François Sabourin

President and C.E.O., JitneyTrade Inc.

Philippe Duval

First Vice President & C.O.O., Groupe Sélection

Natalie Larivière

President, Yuma Strategies

Gilles Laurin

CPA, CA

Director of Corporations

Zoya Shchupak

Consultant, Strategy and M&A, Sagard Holdings ULC

Luc Filiatreault

President and Chief Executive Officer

Camil Rousseau

Chief Technology Officer

Paul Bourque

Chief Financial Officer

Hélène Hallak

Vice President, Legal affairs and corporate development

Catherine Roy

Vice President, Transformation

André Leblanc

Vice President, Marketing and Communications

Nathalie Meunier

Vice President, Human Resources

Mark Eigenbauer

Vice President, Strategic Sourcing

Andreanne Simon

Vice President, Supply Chain Collaboration

Jean-Michel Stam

Vice President, eMarketplaces

Louis Mousseau

Vice President, eCommerce

Board of Directors

Management Team

17

Page 18: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

Questions

Page 19: INVESTOR PRESENTATION - Mediagrif · 2020-02-19 · • Disruptive new commerce models driving exponential growth of supply chain EDI Source: ... + GTM capabilities. 18 Gilles Laporte

1111 St-Charles Street West

East Tower, Suite 255

Longueuil, Quebec

Canada J4K 5G4

TOLL FREE 877 677-9088

PHONE 450 449-0102

FAX 450 449-8725

Mediagrif Interactive Technologies Inc.

mediagrif.com