Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
INVESTOR
PRESENTATION
“Fluid transmission and use of data
to power today’s commerce ecosystems.”
November 2019
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
Company History and Key Milestones
3
(1) Before non-recurring items
$25
Claude Roy - CEO
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
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
The New Mediagrif
66
We enable the flow
of commerce
Our Mission
7
Unify our strengths to create
a fast-growing cloud-based
commerce technology company
Our Vision
8
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
$15B in commercial
transactions
Enabling the Flow of Commerce
VALUE CREATION
• NA coverage with leadership position in Canada and massive
growth potential in the U.S.
• Expansive customer and supplier base to grow from
• 900+ purchasing agencies & 120,000+ supplier network
• Wealth of data to monetize
• Strong best-of-breed CLM solution well positioned to capitalize on
rapidly expanding market
• 85% ARR
GROWTH VECTORS
• Increase ARPU of existing customer base (share of wallet)
• Monetize data with AI + automation with value-added Supplier
Services
• Strategic acquisitions to scale in the U.S.
• Cross sell CLM to current customer base, private SMBs and
enterprises
• More aggressive G2M
10
Strategic Sourcing Overview
Simplifying the sourcing process for buyers and giving
suppliers access to the largest database of contracts
Vital Stats• US$ 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
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
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 $3.6 trillion by 2024
• Online will represent 30% of all worldwide
B2B sales
• Presently leveraged mostly by SMBs, with
next adoption wave from large businesses
Source: DigitalCommerce360.com – iBE – Q4 2019
Massive Market Opportunity
13
eCommerceUS$ 11B Market
By 2023
Strategic SourcingUS$ 10B Market
By 2023
Supply Chain - EDIUS$ 1,4B Market
By 2024
10% CAGR
11% CAGR
22% CAGR
Solid Customer Base to Build on and Cross-sell
14…and serving a network of over 150,000 suppliers across North America
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
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
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
Questions
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