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Investors Presentationmdf.to
September 2020
Forward-looking Statement
September 2020 | TSX: MDF 2
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 dollar
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
A 20 Year Transformation
3
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Marketplace DevelopmentThe Broker Forum, PowerSource
Online, Carrus, Global Wine & Spirits,
Polygon
M&A DiversificationSupply Chain, Strategic Sourcing
B2C IncursionLesPAC, Réseau Contact,
Jobboom
Digital CommerceGrowth and Market Share
From a digital media
company to a SaaS digital
commerce company
16+ successful
acquisitions over the
past 2 decades
Business now focused on
high-growth Strategic Sourcing
and Unified Commerce
September 2020 | TSX: MDF
4
simplifyunify amplify
New identityWhy we are changing our name
September 2020 | TSX: MDF
7
Management team
Luc FiliatreaultPresident and Chief Executive Officer
Paul Bourque Chief Financial
Officer
Hélène HallakVice President, Corporate
Development and Chief
Legal Officer
André LeblancVice President,
Marketing and Public
Affairs
Camil RousseauChief Technology
Officer
Catherine Roy Vice President,
Transformation
Julie Bélanger Vice President,
Human Resources
Andreanne SimonPresident, Supply Chain
Jean-Michel StamPresident, e-Marketplaces
Louis MousseauPresident, e-Commerce
Mark EigenbauerPresident, Strategic Sourcing
Shared Services
Platforms
September 2020 | TSX: MDF
8
77% MRR Q1
$20.5MTotal Revenue
+8.4% Sequentially
+48% Growth Unified
Commerce
11% Total MRR Growth
Over previous Q1
reporting period
$1.8M EBITDA
(8.8%)
+26%YOY Deferred
Revenue
+17% Growth US
Strategic
Sourcing
Q1 Highlights
September 2020 | TSX: MDF
Q1 2021 Metrics dd text
July 2020
⚫ Launch of M&A roadmap exercise
⚫ Launch of new MRR credit facility project
⚫ Logic is now a new ecommerce partner
⚫ Hiring of Orckestra VP Sales
August 2020
⚫ Reporting of first SAAS KPI quarter
⚫ Signing of first Strategic Sourcing customer in
Europe – NHS
February 2020
⚫ Presentation of 5-year Strategic Plan in Global
Townhall to all mdf employees
⚫ Second Investor roadshow
⚫ Hiring of VP Product Strategy for Strategic
Sourcing
June 2020
⚫ Launch of IR Strategy
⚫ Launch of strategic planning execution review
⚫ Launch of Future Office Work Group
May 2020
⚫ Hiring of K-eCommerce VP Sales
⚫ Raised $16M bought deal
⚫ Hiring of VP of HR
⚫ Launch new Merx.com platform
⚫ mdf presents at TSX Technology Investor Day
April 2020
⚫ COVID-19 contingency planning
⚫ Surge in grocery ecommerce
⚫ Third investor virtual roadshow
November 2019
⚫ Hiring of Supply Chain VP Sales
⚫ First investor roadshow in 5+ years (Montreal,
Toronto, Calgary, Vancouver)
⚫ First earnings call in a very long time
October 2019
⚫ Restructuring of Management team
December 2019
⚫ Acquisition of new ecommerce Company
⚫ Launch of rebranding project (Renegade)
March 2020
⚫ COVID-19 start – Work from home
September 2020
⚫ AGM
⚫ Rebranding of Company
⚫ New board member from California
September 2019
⚫ Luc joins with the mandate of bringing
mdf back to growth mode
9
Twelve-month review
September 2020 | TSX: MDF
5 Year Transformation Trajectory
10
Revenue
Ebitda Margin
Market Cap
Rule Of 40
$80M
8%-12%
13
$100M
$250M
20-25%
40+
$1B
September 2020 | TSX: MDF
Selling Success Year One
11
New clients
Strategic Sourcing
• + 244 Buying Organizations
• + 18K Suppliers
Unified Commerce
• + 2 Enterprise Clients
• + 113 SMB Clients
• + 479 Supply Chain Clients
emarketplaces
• + 1,155 Clients
• + 80K Members
September 2020 | TSX: MDF
Monthly Recurring Revenue Trajectory
12
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
10 CAD
11 CAD
12 CAD
13 CAD
14 CAD
15 CAD
16 CAD
17 CAD
Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21
Mill
ions
mdf commerce MRR Growth
Total revenue $ % of recurring over total revenue
MRR Q1 YoY: +11%
MRR / sequential: +3%
September 2020 | TSX: MDF
Deferred Revenue
+26%
Platforms
13
Platform % Rev Focus Offer Market ARR CompetitorsSubstitute -
Disrupt
Mediagrif
Advantage
Strategic
Sourcing42 Growth
eProcurement software
and eTendering with
200k participants
Public Entities and
Large Enterprise$29M
Periscope
Bonfire
eSolutions
Negometrix
Mercell
Fragmented
Breadth of
offering and
Scope of
Network
Unified
Commerce38 Growth
End to End eCommerce
for mid-market to
Enterprise
Enterprise and
mid-sized retail –
Growing
specialization
in groceries
$23MCommerce Tools
Elastic Path
Adobe
Oracle
Salesforce
SAP
Price, Speed,
Flexibility, richer
feature set
eMarketplaces 20 Earnings
Marketplaces for
Diamonds, electronic
parts, automotive, jobs,
dating
End-User, some
marketplaces local,
other int’l
N/AFragmented
by vertical
Fragmented
by vertical
Established
brands
September 2020 | TSX: MDF
StrategicSourcing
Strategic Sourcing – Platform Footprint
15September 2020 | TSX: MDF
Strategic Sourcing Platform
SaaS eProcurement platform
connecting 3,000+ buyers to
200,000 suppliers
16
(1) Source: MarketWatch – Procurement Software Market Valuation - October 15, 2018
Market – US$10B market by 2023 with +10%CAGR (1), massive market
opportunity
Organic Growth Plan
• Adding more US sales capabilities and cross-sell/up-sell resources
for current base
• Investing in new AI features to extend product for cross-selling & increase
contract stickiness
M&A Growth Plan – Fragmented market ready for consolidation –
Many accretive US acquisitions
Q1 F21 KPIs : 94% MRR – +5% YOY Revenue Growth - +4% Sequential
One of the largest supplier
networks in North America
September 2020 | TSX: MDF
17
Strategic Sourcing Platform
Current Customers
3,000 buyers and 200,000 supplier network
Recent Notable Wins
The Canning Group (17 new agencies in
New Jersey) total of 77 new active buyers
National Health Services - UK
September 2020 | TSX: MDF
18
6 000 000 CAD
6 200 000 CAD
6 400 000 CAD
6 600 000 CAD
6 800 000 CAD
7 000 000 CAD
7 200 000 CAD
7 400 000 CAD
T4 AF18 T1 AF19 T2 AF19 T3 AF19 T4 AF19 T1 AF20 T2 AF20 T3 AF20 T4 AF20 T1 AF21
Strategic Sourcing MRR
Strategic Sourcing MRR Growth
September 2020 | TSX: MDF
UnifiedCommerce
The Surge
20
How fast is the world moving around
us? Consider how quickly ecommerce
has replaced physical channels in
three months.
September 2020 | TSX: MDF
Unified Commerce Platform
End-to-end seamless
omnichannel ecommerce platform
21(1) Source: Research & Markets, Digital Commerce Software Market – Growth, Trends, and Forecast (2020-2025), Jan 2020
(2) Source: Research & Markets, Global E-commerce Software Market Size…and Forecasts, 2018 To 2026, Sept 2018;
Market – US$ 10.4B US eCommerce market by 2025 (1) with 12-15% CAGR,
B2B Valued at US$ 12.2T globally (2)
Organic Growth Plan
• Expanding sales capabilities with a focus on US markets & cross-selling
• Product Development: Improved deployment speed, agility, scalability & feature set
• Adding AI recommendation features, and more advanced BI.
M&A growth plan – Acquiring to further disrupt legacy players like Oracle, SAP, Adobe
& consolidate competitors e.g. k-eCommerce
Q1 F21 KPIs: 60% MRR - +48% YOY Revenue Growth - +22% Sequentialà
Proven agility for rapidly
evolving eCommerce landscape52% surge with COVID-19
Pandemic
Extends from enterprise
to SMB
September 2020 | TSX: MDF
22
Unified Commerce Platform
Current Customers
650+ clients including SQDC, Sobey’s, IGA,
Black&Decker, Subway, BRP, Groupon, Sports Experts.
Recent Wins
40 additional SMBs added to client list - 21 from 1 partner
1 Enterprise client including a significant grocery retailer
September 2020 | TSX: MDF
Unified Commerce MRR Growth
23
0 CAD
1 000 000 CAD
2 000 000 CAD
3 000 000 CAD
4 000 000 CAD
5 000 000 CAD
6 000 000 CAD
T4 AF18 T1 AF19 T2 AF19 T3 AF19 T4 AF19 T1 AF20 T2 AF20 T3 AF20 T4 AF20 T1 AF21
Unified Commerce MRR
September 2020 | TSX: MDF
Capital Markets
September 30, 2020 25
Capital Markets
Market Cap (in MM) $148.5
Shares Outstanding 17,960,870
Enterprise Value (in MM) $158.4
Current Share Price (9/25/20) $8.44
52 Week High/Low $8.73 / $2.22
Consensus Target $9.00
Research Contributor Analyst
Nick Corcoran
Maher Yaghi
Amr Ezzat
Nick Agostino
Richard Tse
Deepak Kaushal
Stock Chart
Ownership Summary6%
15%
13%
66%
Institutions
Individuals/Insiders
VC/PE Firms (>5% stake)
Public and Other
0
,10mm
,20mm
,30mm
,40mm
,50mm
,60mm
,70mm
,80mm
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
9,00
Volu
me
Share
Price
September 30, 2020 26
Comparable ValuationsMedian EV/Sales 13.2x; MDF 1.87x
Data sources: S&P Capital IQ Mergermarket; CRM - Customer Relationship Management; SEC – Security; PYMT - Payment/Financials ; ISS - Industry Specific Software;
HCM - Human Capital Management; ERP - Enterprise Resource Planning; SCM - Supply Chain Management; IS - Internet Software.
Company(2020) Mkt Cap – CA$
(M)
Enterprise Value – CA$
(M)Revenue –CA$ (M) EBITDA – CA$ (M) EV/Sales EV/EBITDA
Shopify Inc. 148,506.0 143,345.9 3,905.27 416.4 36.71x NM
BigCommerce Holdings,
Inc.
7,030.8 7,420.4 204.26 ( 46.99) 36.33x NM
Kinaxis Inc. 4,899.9 4,565.4 312.46 64.73 14.61x 70.53x
Lightspeed POS Inc. 4,151.1 3,937.7 244.96 ( 32.34) 16.07x NM
SPS Commerce, Inc. 3,497.8 3,224.9 425.58 117.76 7.58x 27.39x
Tecsys Inc. 400.8 385.2 121.26 13.48 3.18x 28.58x
Median 4,525.5 4,251.6 278.71 39.11 15.34x 28.58x
mdf commerce 148.5 158.4 83.25 7.98 1.87x 19.85x
1,87x
0,00x5,00x
10,00x15,00x20,00x25,00x30,00x35,00x40,00x45,00x50,00x
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Median = 13.2x
27
Reasons to Invest
COVID-19 has
accelerated a global
shift to Digital
Commerce
mdf commerce is already
a major Digital Commerce
platform, managing
$Billions annually for gov't,
enterprise, and SMBs
77% recurring
revenue with high
margins, low
churn and free
cashflow
Transforming into a SaaS
growth company like
Shopify and
BigCommerce, but with
free cash flow and
significantly lower
valuation
Positioned to
dominate US$10B
Strategic Sourcing
market
Disrupting the
Unified Commerce
space with an
integrated path from
back-office to front-
office
September 2020 | TSX: MDF
Questions?
Toll Free 877 677-9088
Phone 450 449-0102
1111 St-Charles Street West, East Tower, Suite 255
Longueuil, Québec Canada J4K 5G4
mdfcommerce.com
