SHAREHOLDERS ANNUAL GENERAL AND SPECIAL MEETING 2010 SEPTEMBER 16, 2010

Transcription

1 SHAREHOLDERS ANNUAL GENERAL AND SPECIAL MEETING 2010 SEPTEMBER 16, 2010

2 SHAREHOLDERS ANNUAL MEETING 2010 OPENING OF MEETING

3 AGENDA MEETING PROCEEDINGS NOMINATION OF SCRUTINEERS NOTICE OF MEETING ADOPTION OF AGENDA SCRUTINEERS REPORT RECEIPT OF FINANCIAL STATEMENTS AND AUDITORS REPORT APPOINTMENT OF AUDITORS CANCELLATION OF SHAREHODLERS RIGHTS PLAN ADJOURNMENT OF MEETING MANAGEMENT S REPORT AND FINANCIAL ANALYSIS QUESTION PERIOD ELECTION OF DIRECTORS

4 SHAREHOLDERS ANNUAL MEETING 2010 MEETING PROCEEDINGS

5 SHAREHOLDERS ANNUAL MEETING 2010 NOMINATION OF SCRUTINEERS

6 SHAREHOLDERS ANNUAL MEETING 2010 NOTICE OF MEETING

7 SHAREHOLDERS ANNUAL MEETING 2010 ADOPTION OF AGENDA

8 SHAREHOLDERS ANNUAL MEETING 2010 SCRUTINEERS REPORT

9 SHAREHOLDERS ANNUAL MEETING 2010 RECEIPT OF FINANCIAL STATEMENTS AND AUDITORS REPORT

10 SHAREHOLDERS ANNUAL MEETING 2010 ELECTION OF DIRECTORS

11 SHAREHOLDERS ANNUAL MEETING 2010 ANDRÉ GAUTHIER QUÉBEC, CANADA GILLES LAURIN QUÉBEC, CANADA MARC P. BRUNET QUÉBEC, CANADA ANDRÉ COURTEMANCHE QUÉBEC, CANADA CLAUDE ROY QUÉBEC, CANADA JEAN-FRANÇOIS SABOURIN QUÉBEC, CANADA MICHEL DUBÉ QUÉBEC, CANADA

12 SHAREHOLDERS ANNUAL MEETING 2010 APPOINTMENT OF AUDITORS

13 SHAREHOLDERS ANNUAL MEETING 2010 CANCELLATION OF SHAREHOLDERS RIGHTS PLAN

14 SHAREHOLDERS ANNUAL MEETING 2010 ADJOURNMENT OF MEETING

15 SHAREHOLDERS ANNUAL MEETING 2010 MANAGEMENT S REPORT AND FINANCIAL ANALYSIS

16 SHAREHOLDERS ANNUAL MEETING 2010 QUESTION PERIOD

17 SUZANNE MERCIER Chief Financial Officer REVIEW OF 2010 RESULTS 17

18 CONSOLIDATED RESULTS Revenues EBITDA % EBITDA on revenues In millions $CA 47,9 FX gain of 0.6 M Original currencies revenues decreased by 2.8 M compared to ,7 Revenues decreased in TBF, PSO, MVI and Polygon, All were impacted by the economic conditions in their respective markets 80% 70% 60% 50% Severance payments in the amount of 4.3 M Cost savings of 2.9 M due to general headcount reduction 2.9 M 40% 30% Unrealized acquisition in the amount of 0.4 M 12,4 20% 10 5,2 10% %

19 CONSOLIDATED RESULTS Revenues EBITDA Earning from operations Net Earnings In millions $CA 47,9 45,7 Earning (loss) per share (0.09) Impairment on acquired intangible assets 3.6 M 30 Impairment on intangible assets 3.0 M Fx gain of 2.3 M Tax provision reversal of 2.1 M Cost saving due to general headcount reduction Fx loss of M ,2-1,3 12, ,5-10 Fx rate

20 CASH FLOWS In millions $CA 14 Increase of net earnings combined to 12 11,7 a better cash management Free cash flows Cash flow from operating activities less acquisition of premises and equipment, intangible assets and less dividends 9, ,2 2,8 Less needed acquisitions of premises and equipment No business acquisition in ,1 0,6 Operating activities Investing activities Business acquisitions Dividends Purchase of common shares 1,4 1,9 0,4 1,4 Free cash flows

21 BALANCE SHEET 40,00 In millions $CA 35,00 Cash increase of 24% Shares outstanding M M 34,4 30,00 27,7 Stock options outstanding M M 25,00 20,00 15, $ per share 10,00 5, $ per share 0,00 Cash Cash

22 REVIEW OF 1st QUARTER 2011 In millions $CA Q Q Earning (loss) per share Fx loss of 0.2 M T (0.01) T Lower revenues in GWS, PSO, MVI, Polygon Cost savings due to general headcount reduction Original currencies revenues decreased by 0.3 M Revenues EBITDA Operating expenses Earnings from operations Net earinings (193)

23 CLAUDE ROY President and Chief Executive Officer REPORT ON OPERATIONS

24 Agenda 1 FY 10 Highlights ht 2 Our quest for growth 3 Q&A 24

25 FY10 Highlights: Focus on Value Creation 60 Management change Dec ,7 46,3 50,1 46,0 47,7 47,9 45, % 37% 40% 35% 30 27% 31% 32% 27% 27% 27% % 23% 18,9 20,0 17,1 11% 16% 12,5 12,4 7% 9,8 9,7 73 7,3 75 7,5 5,1 5,2 2,0 2,6 FY 04 FY 05 FY 06* FY 07 FY 08 FY 09 FY 10-1,3-10 Revenues EBITDA Net margin EBITDA margin (Without Capitalization) EBITDA margin * 2006: C$ 2.8M for the sale of Flow system license 25

26 FY11 Trend: Focus on Value Creation 60 Management change Dec ,7 46,3 50,1 46,0 47,7 47,9 45, % 37% 40% 35% 30 27% 31% 32% 27% 27% 33% 33% % 23% 18,9 20,0 17,1 11% 16% 11,2 12,5 12,4 7% 9,8 9,7 3,7 73 7,3 75 7,5 5,1 5,2 2,0 2,6 2,6 FY 04 FY 05 FY 06* FY 07 FY 08 FY 09 FY 10 Q1 FY 11-1,3-10 Revenues EBITDA Net margin EBITDA margin (Without Capitalization) EBITDA margin * 2006: C$ 2.8M for the sale of Flow system license 26

27 FY10 Highlights: Operating Expenses Streamlining 70% Management change Dec 08 60% 57% 50% 45% 49% 40% 30% 20% 10% 34% 36% 35% 38% 21% 21% 19% 19% 16% 32% 23% 23% 23% 15% 16% 16% 18% 19% 17% 17% 16% 0% FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 Q1 FY 11 Costs of Goods SG&A Expenses Technology (R&D) Expenses 27

28 FY10 Highlights: EBITDA Improvements 25% Corporate cost reduction Integration of business operations: US Tenders operations & mgmt consolidation in Albany (BN, GB, EPI, IPT) Operations & mgmt consolidation in Tampa & Atlanta (PSO, TF, MEFX, MVI) Significant business process improvements FY 09 vs. FY 10 Savings CGS 828 SG&A 9,978 Tech 768 Total 11,574 CAD currency, in thousands of $ 28

29 FY10 Highlights: A Diversified Portfolio Government Opportunities Electronic Components Computer, IT & Telecom Medical Equipment Automotive Aftermarket Wine & Spirits Diamonds & Jewelry 29

30 Our quest for growth Organic M&A 30

31 Strong Financial Position Cash on hand: C$ 36M EBITDA Margin: Q % Balance sheet: Borrowing capacity: Debt free Upto 2 times EBITDA Market Capitalization: $120 M Stock Price: $8.51 (Up 4 x since Dec 08) 31

32 Organic Growth: Government Opportunities Benefiting from increased US & CAN government spending Demand for a centralized tendering system (QC) Open Gov policy: Demand for procurement services to make all federal agencies data easily accessible 32

33 Organic Growth: Electronic Components Positive membership trend Strong demand for our escrow services 33

34 Organic Growth: Automotive Aftermarket High single digit growth Stronger market presence New value added services 34

35 Organic Growth: Computer, IT, Telecom & Medical including: New auction services Sales initiatives to increase revenues 35

36 Organic Growth: Diamonds & Jewelry Positive trends expected in Q2 New membership acquisition strategy Increased sales & marketing efforts 36

37 Organic Growth: Wine & Spirits SAQ partnership: 5 year agreement renewal 37

38 M&A: Objective Double Our Market Cap. 38

39 M&A: Acquisition Criteria North American location Ethical & diversified business sectors Strong business models o High profitability o Transactional revenues Web solutions 39

40 Management Team Claude Roy Stéphane Anglaret Mark Eigenbauer Hélène Hallak Richard Lampron Suzanne Mercier Paul Saunders Andreanne Simon President and Chief Executive Officer Vice President Technology Senior Vice President Senior Vice President and General Counsel Vice President Research & Development Chief Financial Officer Senior Vice President Vice President, Innovation and Business Development 40

41 Board Members Claude Roy Chairman and CEO Mediagrif if André Courtemanche Gilles Laurin President and Chief Executive Officer Chartered Accountant VIAVAR Capital Advisor and Director of different corporations Michel Dubé Marc P. Brunet Consultant President and Chief Executive eofficer Savaria Corporation Logibec Groupe Informatique Ltd. André égauthier Jean François Sabourin President President and Chief Executive Officer André Gauthier Holding Inc. FinlogiK Inc. 41

42 Ownership Structure As of Sep. 14th 2010 Shares % of total Claude Roy 2,774,300 19,9% Directors and Officers 375, % Employees 207, % Subtotal 3,357, % Institutional Investors 5,478, % Public 5,079,529 36,5% Outstanding shares 13,915, % Options outstanding 269,900 42

43 Q&A

44 MEDIAGRIF E-BUISNESS NETWORKS bidnet.com brokerforum.com carrustechnologies.com ebidboard.com epipeline.com globalwinespirits.com governmentbids.com iptbybidnet.com marketvelocity.com medicalequipmentfinders.com merx.com polygon.net powersourceonline.com telecomfinders.com truckpartslocator.com 44