INVESTOR PRESENTATION - Mediagrif€¦ · PRESENTATION April 6, 2017 INVESTOR CONFERENCE . Laurentian Bank Securities. DISCLAIMER. 3 Forward-looking statement . This document contains

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


OUR MISSION

Provide innovative and efficient E-commerce solutions

5

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

6

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


Cash flow from Operations

0,58 0,69

0,97 0,80

1,00 1,05


Earnings per share

47,1 53,8

60,7 65,4 70,2 73,0


Revenue

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


7

OUR BUSINESSES

(JOB BOARD)

(CLASSIFIED ADS)

(ONLINE DATING) (CONTRACT MANAGEMENT)

(E-PURCHASING)

(E-PURCHASING)

STRONGEST GROWTH POTENTIAL


(SUPPLY CHAIN) (AUTOMOTIVE AFTERMARKET)

(DIAMONDS & JEWELRY)

(WINE & SPIRITS)

(ELECTRONIC COMPONENTS)

FOCUS ON ORGANIC GROWTH

9

FOCUS ON ORGANIC GROWTH

Invest in highest growth potential platforms

o E-Purchasing

o Supply Chain

oConsumers


10

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%


*(Forrester Research, see appendix)

11

E-PURCHASING GROWTH STRATEGY

Monetize existing buyer relations through VAS A

Grab new business with Source-to-Contract

B


+ Bid Evaluation + Contract Management + Vendor Performance Management

+ Develop the US enterprise market

+ Increase buyer stickiness through a broader offering

12

CONTRACT LIFECYCLE MANAGEMENT

RFP BIDS AWARD

CONTRACT MANAGEMENT

PERFORMANCE MANAGEMENT

VENDOR QUALIFICATION

DOCUMENT DEVELOPMENT

EVALUATION

Essential piece for MERX & BidNet for product evolution


Source-to-Contract

13

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)


14

SUPPLY CHAIN OFFERING

Unique Combined Offering Private Catalogue EDI Business Network (VAN Tier-1)

Automotive

Healthcare

Apparel & General Merchandise


90%+ Recurring revenues (75% US$)

3,000+ Retailers & suppliers

15

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


Our solutions accelerate time-to-market, with richer and more standardized product data, that retailers can quickly promote on any sales channel, especially online.

16

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


17

CONSUMER GROUP GROWTH STRATEGY


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

18

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


PROCÈS-VERBAL DE LA RÉUNION DU 2 JUIN 2016 FINANCIAL HIGHLIGHTS Nine months ended December 31, 2016

20

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

21

QUARTERLY RESULTS

(in millions of CA$)


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

22

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


23

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)


24

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


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

27

FORRESTER RESEARCH

*


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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INVESTOR PRESENTATION - Mediagrif€¦ · PRESENTATION April 6, 2017 INVESTOR CONFERENCE . Laurentian Bank Securities. DISCLAIMER. 3 Forward-looking statement . This document contains