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INVESTOR PRESENTATION November 13, 2018 1 TRANSACT IN THE DIGITAL ECONOMY

TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

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Page 1: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

N o v e m b e r 1 3 , 2 0 1 8

1

TRANSACT IN

THE DIGITAL ECONOMY

Page 2: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

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: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

Our Mission

3

Page 4: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

Albany, New York Longueuil, Canada

Laval, Canada

Shenzhen, China Atlanta, Georgia

4

Company Overview

Global EmployeeWorkforce

as at November 12, 2018

Created in 1996,

Public since 2000,

MDF.TO

1996Connecting buyers & sellers through various platforms

524

$23,4M*

$80,9M

FY 2018Revenue & Adjusted EBITDA*

Quarterly dividendper share

$0,10 Market Capitalisation

as at November 12, 2018

$153M

*FY 2018 Adjusted EBITDA includes $2.0 M of non recurring costs

Page 5: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 5

World-wide Locations

Longueuil, Canada

Laval, Canada Ottawa, Canada Albany, New York

Copenhagen, Danemark Atlanta, GeorgiaShenzhen, China

Page 6: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 6

Historical Results

53,860,7 65,4 70,2 73,0 77,7 80,9

FY12 FY13 FY14 FY15 FY16 FY17 FY18

Revenue

17,4

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

23,4

FY12 FY13 FY14 FY15 FY16 FY17 FY18

Adjusted EBITDA

$12,3

$18,0

$22,2$24,1

$22,3 $23,7

$17,9

FY12 FY13 FY14 FY15 FY16 FY17 FY18

Cash flow from Operations

$0,58 $0,69

$0,97

$0,80

$1,00 $1,05 $1,06

$0,48

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Earnings per Share

*FY 2018 Adjusted EBITDA includes $2.0 M of non recurring costs

2018 EPS includes a non-cash, non-recurring income tax expense of $1.4 million ($0.09 per share) following the U.S. tax reform enacted on Jan.1 2018.

*

Page 7: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 7

FY-2019 Focus

Page 8: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

UNIFIED COMMERCE MARKETPLACES

DIGITAL COMMERCE

SUPPLY CHAIN COLLABORATION

AUTOMATIVE AFTERMARKET

SUPPLY BASE MANAGEMENT

CONTRACT MANAGEMENT

STRATEGIC SOURCING

ONLINE RECRUITING

ONLINE DATING

SOURCING CLASSIFIED ADS

ELECTRONIC COMPONENTS

DIAMONDS & JEWLERY

8

Our Solutions

Page 9: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

Canada• 2,000 buyers

• 70,000 suppliers

• Strong public &

private presence

across Canada

90% recurring

USA• 1,200 agencies

• 63,000 suppliers

• Presence in 30

States

90% recurring

9

CAD/USA• 40+ clients

• Contract Life cycle

management

solutions

• Cross selling &

Integration

opportunities

82% recurring

Revenue type:

Strategic Sourcing: Main Brands

Page 10: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 10

Strategic Sourcing

• RFx:

• Creation

• Management

• Publication

• Bid evaluation

• Award

publication

• Vendor

database

• Vendor

qualification

• Performance

management

• Vendor

certification

• Repository

• Alert

• Contract

creation

• Requisitions

management

• Approval

workflows

• Data cleansing

• Categorization

• Analytics

• Notification

• Dashboard

• Decision

Support

Sourcing

Supply Base

management

Contract

management

Spend

Analysis

Page 11: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 11

Strategic Sourcing : Growth Initiatives

Implement value added

Supplier Services

Contract Management

Growth

Increase Buyer Content

Page 12: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 12

Supply Chain Collaboration

Unique Combined Offering

• Private Catalogue

• Business Network (EDI VAN Tier-1)

• 90%+ Recurring revenues (75% US$)

• 4,100+ Retailers & Suppliers

Automotive

Healthcare

Apparel & General MerchandiseEnable trading relationships

between retailers and

manufacturers

Page 13: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 13

Our solutions accelerate time-to-market, with richer and more standardized product data, that retailers can

quickly promote on any sales channel, especially online.

Supply Chain – Growth Initiatives

• Introduce multi-retailer Web EDI solution for small vendors

• Implement product data compliance and managed services

practice to clients

• Support retailers addressing the challenges of the digital

transformation with new value added services

Page 14: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 14

Digital Commerce

Cloud-based commerce solutions offering mid-size,

enterprise Retailers and Brands a Single Platform to drive

unified customer experiences online and in-store.

Flexible, open and globally available solution on Microsoft

Azure.

Page 15: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

Digital Commerce

Experience Mgmt (DCXM)

Mobile Store

Fulfillment

Commerce OrchestrationTM

Platform

15

Main Product Offering

The API-first commerce platform

that makes omnichannel retail work

A cloud platform that enables leading

brands to create unique shopping

experiences for any channel, device, or

application.

Create engaging shopping

experiences for your customers that

convert to more sales

Cloud-based experience management

that works with our Commerce

OrchestrationTM Platform to deliver

tailored web and mobile shopping

experiences for your customers.

Turn your stores into local

fulfillment centres

Make all your inventory

accessible online, and leverage

your local stores to ensure

customers get the products they

want, when and where they want

them.

Page 16: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 16

• Target market: $9,4B world-wide spending on digital

commerce platform software by 2020

• E-Commerce CAGR: >15% over the next five years (1)

• Current Trends: Moving to Cloud and API-First

“headless” platforms, enabling

personalized and “Experience

Commerce”

• Geographical reach: World-wide

(1)Source: Gartner Report, “Magic Quadrant for Digital Commerce 2018.”

Addressable Market Size

Page 17: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 17

Retail & Brand Manufacturing enabling top brands

Page 18: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 18

Present in key life

events & moments

• LesPAC: buy & sell

• Jobboom: Find a job & manage your career

• Réseau Contact: Find love & build relationships

B2C Marketplaces

Page 19: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 19

• Increased platform content:

Freemium model (launched 03/2017)

• Monetize added content:

New visibility tools, such as: Showcase / Tags

Discovery tools (Alerts, Favourite, Comparisons)

Automatic renewal

Focus on SMBs that want to sell online, e. g.: Recurring monthly options

Priority ranking

Geographical banner targeting

Growth Strategy

Page 20: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 20

Growth Strategy Update

• Ads published increased 15% Year over Year.

• New SMB visibility tools / Features for SMBs performing

well

• Consumer behavior AI triggered content suggestions

Page 21: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 21

• Content increased 4% (Q2-FY19 vs Q2-FY18)

• Integration in Google Jobs

• Evolution of the business platform for:

Employers to improve recruitment processes:

Assisted Recruitment

Recurring employer packages

Growth Strategy Update

Page 22: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 22

Financial Highlights

Second Quarter FY-2019

ended September 30th, 2018

Page 23: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

• Revenues of $20,3M | + 1,1%

• Adjusted EBITDA of $6,6M | 33% Margin

• Profit of $3,2M | $0,21 / Share

• Cash flow from operations of $2,7M

23

Q2 FY-2019 Highlights

Page 24: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 24

Quarterly Results

20,0 20,5 20,521,1

20,3

5,56,1

5,6 5,3

6,6

1,71,0

2,1 2,43,2

28%

30%

27%25%

33%

Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19

Revenue Adjusted EBITDA Profit Adjusted EBITDA margin

In M of Canadian $

Page 25: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 25

*LTM Adjusted EBITDA as per lenders agreement, net debt as of September 30, 2018 & accordion feature subject to lenders approval

Financial Position

• Healthy balance sheet

• Strong adjusted EBITDA margin

• High cash flow from operations

• Net debt / adjusted EBITDA @ 0.6X*

• Liquidity of $64M + accordion feature of $40M*

Page 26: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

• 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)

26

M&A Guidelines

Page 27: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 27

Ownership

• 14,8 million shares outstanding

• Alignment of interests

Directors & Officers own 28% of all shares o/s

Claude Roy, President & CEO, currently holding 24%

Page 28: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION 28

Claude Roy

Chairman and CEO

Gilles Laurin

Director of Corporations

Philippe Duval

First Vice President & C.O.O.,

Réseau Sélection

Catherine Roy

President,

Gestion Catsachar Inc.

André Gauthier

President,

André Gauthier Holding Inc.

Jean-François Sabourin

President and CEO,

JitneyTrade Inc.

Gilles Laporte

Director of Corporations

Natalie Larivière

President , Yuma Strategies

Viviane Trudel

Founder & President of Metix Inc.,

Metix Capital Inc. and B-CITI Solutions Inc.

Claude Roy

President and Chief Executive Officer

Mark Eigenbauer

Vice President, US Operations

Paul Bourque

Chief Financial Officer

Jean-Michel Stam

Vice President, Canadian Operations

Hélène Hallak

Vice President and General Counsel

Suzanne Moquin

Vice President, Consumers Solutions

André Leblanc

Vice President, Marketing

Camil Rousseau

Vice President, Research & Development

Stéphane Anglaret

Vice President, Technology

Management Team

Board of Directors

Page 29: TRANSACT IN THE DIGITAL ECONOMY · INVESTOR PRESENTATION 6 Historical Results 53,8 60,7 65,4 70,2 73,0 77,7 80,9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenue 17,4 25,2 24,3 27,5 28,6

INVESTOR PRESENTATION

MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

1111 St-Charles Street West, Suite 255Longueuil (Quebec)Canada J4K 5G4

www.mediagrif.com

Toll Free: 877 677-9088

Phone: 450 449-0102

Fax: 450 449-8725