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INVESTOR PRESENTATION
A u g u s t 2 0 1 7
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INVESTOR PRESENTATION 2
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
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Our Mission Provide innovative and efficient E-commerce solutions
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INVESTOR PRESENTATION 4
Created in 1996, Public since 2000, MDF.TO
*as at August 4, 2017
Employee workforce total
Connecting buyers & sellers through various platform
$28.6M
Market Capitalisation
Quarterly dividend per share
495 1996
$225M $0.10 $77.7M
Company Overview
FY 2017 Revenue & Adjusted EBITDA
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INVESTOR PRESENTATION 5
2011-2017 CAGR 11,2%
2011-2017 CAGR 14,9% 2011-2017 CAGR 10,6%
(in million of C$, except per share amount | CAGR : compounded annual growth rate)
2011-2017 CAGR 8,7%
Long term Value Creat ion Metr ics
47,1 53,8 60,7 65,4 70,2 73,0 77,7
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Revenue
15,1 17,4 25,2 24,3 27,5 28,6 28,6
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Adjusted EBITDA
$10,3 $12,3 $18,0
$22,2 $24,1 $22,3 $23,7
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Cash flow from Operations
$0,58 $0,69 $0,97
$0,80 $1,00 $1,05 $1,06
FY11 FY12 FY13 FY14 FY15 FY16 FY17
Earnings $/share
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INVESTOR PRESENTATION 6
S T R O N G E S T G R O W T H P O T E N T I A L
AUTOMATIVE AFTERMARKET
DIAMONDS & JEWELRY
ELECTRONICS COMPONENTS
ONLINE RECRUTING
CLASSIFIED ADS
ONLINE DATING
E PURCHASING
E PURCHASING
CONTRACT LIFE CYCLE MANAGEMENT
Our Businesses
MARCHÉ SECONDAIRE DE L’AUTOMOBILE
DIAMANTS ET BIJOUX
COMPOSANTS ÉLECTRONIQUES
DIGITAL COMMERCE
SUPPLY CHAIN SOLUTIONS
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FY-2018 Focus on Long-term Growth
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INVESTOR PRESENTATION 8
o E-Purchasing
o Digital commerce
o Supply Chain Collaboration
o Consumers
Invest in Highest Growth Potential Platforms
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INVESTOR PRESENTATION 9
E-Purchasing Offer ing 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%
Contract Lifecycle Management
Provide cross selling, integration opportunities
Recurring revenues: ~70% *(CAGR 2010-2015 of 15% according to Forrester Research)
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INVESTOR PRESENTATION 10
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
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INVESTOR PRESENTATION 11
ASC - Contract Li fecycle Management
Essential piece for MERX & BidNet for product evolution
Source-to-Contract
RFP BIDS AWARD
CONTRACT MANAGEMENT
PERFORMANCE MANAGEMENT
VENDOR QUALIFICATION
DOCUMENT DEVELOPMENT
EVALUATION
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INVESTOR PRESENTATION 12
Orckestra - A Digital Commerce Platform
O r c k e s t r a ’ s C l o u d - b a s e d C o m m e r c e S o l u t i o n s O f f e r M i d - s i z e a n d E n t e r p r i s e R e t a i l e r s a n d B r a n d s a S i n g l e P l a t f o r m t o D r i v e U n i f i e d C u s t o m e r E x p e r i e n c e s O n l i n e a n d I n - s t o r e . T h r o u g h a F l e x i b l e , O p e n a n d G l o b a l l y A v a i l a b l e S o l u t i o n O n M i c r o s o f t A z u r e , O u r A g i l e C l o u d - b a s e d S o l u t i o n s S c a l e F o r S u c c e s s i n a D i g i t a l a n d M o b i l e - f i r s t W o r l d .
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INVESTOR PRESENTATION 13
Addressable Market Size
201
2,316
1 214
229
2 645
1 386
262
3 021
1 594
CANADA US EUROPE
Digital Commerce Platform Revenue Forecast (Millions of U.S. Dollars)
2016 2017 2018
* Source: Forecast: Enterprise Software Markets, Worldwide, 2013-2020, 2Q16 Update Gartner
$4.87B (2018)
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INVESTOR PRESENTATION 14
Orckestra - Main Product Offer ing
In-store Omnichannel Ordering
and Fulfillment
Web Content Management
Digital Commerce
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INVESTOR PRESENTATION 15
Retai l and Brand Manucfactur ing
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INVESTOR PRESENTATION 16
Supply Chain Offer ing
Unique Combined Offering Private Catalogue EDI Business Network (VAN Tier-1)
90%+ Recurring revenues (75% US$)
3,000+ Retailers & suppliers
Automotive
Healthcare
Apparel & General Merchandise
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INVESTOR PRESENTATION 17
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.
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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
Consumer group offer ing
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INVESTOR PRESENTATION 19
Consumer group growth strategy
Increase platform content
o Launched Freemium model on March 1st
o Content increased 177% to date
Monetize added content
o New visibility tools added
Focus on SMB that wants to sell online
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INVESTOR PRESENTATION 20
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
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Financial Highlights
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INVESTOR PRESENTATION 22
Q1 FY-2018 Highl ights
Acquisition of Orckestra closed on June 23
Revenues of $20.0M | + 5,3%
Adjusted EBITDA of $6.1 M | 31% margin (including $0.3M of non-recurring acquisition costs)
Profit of $2.4 M | $0.16/share
Cash flow from operations of $2.2M
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INVESTOR PRESENTATION 23
Quarter ly Results
In million of C$
19,0 19,5 19,3 20,0 20,0
7,0 8,1
7,1 6,4 6,1
37% 42%
37% 32% 31%
Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 Q1-FY18Revenues Adjusted EBITDA Adjusted EBITDA margin
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INVESTOR PRESENTATION 24
F inancial Posit ion
Healthy balance sheet
Strong adjusted EBITDA margin
High cash flow from operations
Net debt / adjusted EBITDA @ 0.8X*
Liquidity of $58M + accordion feature of $40M*
*LTM Adjusted EBITDA, Net debt as at June 30, 2017 *Accordion feature subject to lenders approval
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INVESTOR PRESENTATION 25
M&A Guidel ines 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)
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INVESTOR PRESENTATION 26
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%
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INVESTOR PRESENTATION 27
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
Natalie Larivière President Yuma Strategies
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
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» Fifth level Toll Free: 877 677-9088 Phone: 450 449-0102 Fax: 450 449-8725
MEDIAGRIF INTERACTIVE TECHNOLOGIES INC. 1111 St-Charles Street West, Suite 255 Longueuil, Québec Canada J4K 5G4 www.mediagrif.com