INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION June 6, 2017

2 DISCLAIMER

3 Forward-looking statement This document contains certain forward-looking statements with respect to the Company. These forwardlooking 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 INVESTOR PRESENTATION 3

4 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 $77.7M, Adj. EBITDA $28.6M, 37% (FY17) + Market capitalization $230M* + Dividend $0.10/quarter *as at June 6, 2017 INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 5

6 LONG TERM VALUE CREATION METRICS Revenue Adjusted EBITDA 47,1 53,8 60,7 65,4 70,2 73,0 77,7 15,1 17,4 25,2 24,3 27,5 28,6 28,6 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Cash flow from Operations Profit par action $10,3 $12,3 $18,0 $22,2 $24,1 $22,3 $23,7 $0,58 $0,69 $0,97 $0,80 $1,00 $1,05 $1,06 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (in millions of CA$, except per share amounts CAGR: compound annual growth rate) INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 6

7 OUR BUSINESSES (E-PURCHASING) (SUPPLY CHAIN) (CLASSIFIED ADS) (AUTOMOTIVE AFTERMARKET) (DIAMONDS & JEWELRY) (E-PURCHASING) (JOB BOARD) (WINE & SPIRITS) (CONTRACT MANAGEMENT) (ONLINE DATING) (ELECTRONIC COMPONENTS) STRONGEST GROWTH POTENTIAL INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 7

8 FOCUS ON ORGANIC GROWTH

9 FOCUS ON ORGANIC GROWTH Invest in highest growth potential platforms o E-Purchasing o Supply Chain o Consumers INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 9

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) INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 10

11 E-PURCHASING GROWTH STRATEGY A Monetize existing buyer relations through VAS Bid Evaluation Contract Management Vendor Performance Management B Grab new business with Source-to-Contract Develop the US enterprise market Increase buyer stickiness through a broader offering INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 11

12 CONTRACT LIFECYCLE MANAGEMENT Essential piece for MERX & BidNet for product evolution Source-to-Contract DOCUMENT DEVELOPMENT RFP BIDS EVALUATION AWARD CONTRACT MANAGEMENT PERFORMANCE MANAGEMENT VENDOR QUALIFICATION INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 12

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 of 15% according to Forrester Research) INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 13

14 SUPPLY CHAIN OFFERING Apparel & General Merchandise Unique Combined Offering Private Catalogue EDI Business Network (VAN Tier-1) Automotive 90%+ Recurring revenues (75% US$) 3,000+ Retailers & suppliers Healthcare INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 14

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. INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 15

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 INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 16

17 CONSUMER GROUP GROWTH STRATEGY Increase platform content o Freemium model - March 1 st Monetize added content o New visibility tools Focus on SMB that wants to sell online More Content more Traffic more Leads INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 17

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 INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 18

19 PROCÈS-VERBAL FINANCIAL DE LA RÉUNION HIGHLIGHTS Year ended March 31 DU 2 JUIN st,

20 FY2017 HIGHLIGHTS Revenues of $77.7M +6% ASC revenues - 10 months $4.2M* Adjusted EBITDA of $28.6M 37% margin Profit of $15.8M $1.06 per share Cash flow from operations of $23.7M * Net of the acquired deferred revenue adjustment to their fair the acquisition date: $0.6M INVESTOR PRESENTATION YEAR ENDED MARCH 31 ST,

21 QUARTERLY RESULTS 18,8 19,0 19,5 19,3 20,0 35% 37% 42% 37% 32% 6,6 7,0 2,5 3,7 8,1 4,5 7,1 6,4 4,0 3,6 Q4-FY16 Q1-FY17 Q2-FY17 Q3-FY17 Q4-FY17 Revenues Adjusted EBITDA Profit Adjusted EBITDA margin (in millions of CA$) INVESTOR PRESENTATION YEAR ENDED MARCH 31 ST,

22 FINANCIAL POSITION Healthy balance sheet Strong adjusted EBITDA margin High cash flow from operations Net debt / adjusted 0.7X* Liquidity of $59M + accordion feature of $40M* *LTM Adjusted EBITDA, Net debt as at March 31, 2017 *Accordion feature subject to lenders approval INVESTOR PRESENTATION YEAR ENDED MARCH 31 ST,

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) INVESTOR PRESENTATION YEAR ENDED MARCH 31 ST,

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 INVESTOR PRESENTATION YEAR ENDED MARCH 31 ST,

25 BOARD OF DIRECTORS Claude Roy Chairman and CEO Michel Dubé Consultant André Gauthier President André Gauthier Holding Inc. Gilles Laporte Director of Corporations MANAGEMENT TEAM Claude Roy President and Chief Executive Officer Paul Bourque Chief Financial Officer Hélène Hallak Vice President and General Counsel Mark Eigenbauer Vice President, US Operations Gilles Laurin Chartered Accountant and Director of Corporations Catherine Roy President Gestion Catsachar Inc. Jean-François Sabourin President and CEO FinlogiK Inc. & JitneyTrade Inc. Suzanne Moquin Vice President, Consumers Solutions Jean-Michel Stam Vice President, Canadian Operations Stéphane Anglaret Vice President, Technology Camil Rousseau Vice President, Research & Development INVESTOR PRESENTATION 25

26 APPENDIX

27 FORRESTER RESEARCH * INVESTOR PRESENTATION 27

28 MEDIAGRIF INTERACTIVE TECHNOLOGIES INC St-Charles Street West, Suite 255 Longueuil, Québec Canada J4K 5G4 Toll Free: Phone: Fax: