TRANSACT IN THE DIGITAL ECONOMY F E B R U A R Y 1 2 , 2 0 1 9 1 - - PowerPoint PPT Presentation

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TRANSACT IN THE DIGITAL ECONOMY F E B R U A R Y 1 2 , 2 0 1 9 1 INVESTOR OR P PRESENTATION ION Forward-looking statement This document contains certain forward-looking statements with respect to the Company. These forward-looking

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F E B R U A R Y 1 2 , 2 0 1 9

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TRANSACT IN THE DIGITAL ECONOMY

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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

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Our Mission

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Albany, New York Longueuil, Canada Laval, Canada Shenzhen, China Atlanta, Georgia

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Company Overview

Global Employee Workforce

as at February 12, 2019

Created in 1996, Public since 2000, MDF.TO

1996

Connecting buyers & sellers through various platforms

525 $23,4M* $80,9M

FY 2018 Revenue & Adjusted EBITDA*

Quarterly dividend per share

$0,10

Market Capitalisation

as at February 12, 2019

$159M

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

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World-wide Locations

Longueuil, Canada Laval, Canada Ottawa, Canada Albany, New York Copenhagen, Denmark Atlanta, Georgia Shenzhen, China

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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 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.

*

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FY-2019 Focus

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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

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Our Solutions

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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

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CAD/USA

  • 40+ clients
  • Contract Life cycle

management solutions

  • Cross selling &

Integration

  • pportunities

82% recurring

Revenue type:

Strategic Sourcing: Main Brands

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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

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Strategic Sourcing : Growth Initiatives

Implement value added Supplier Services Contract Management Growth Increase Buyer Content

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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 Merchandise

Enable trading relationships between retailers and manufacturers

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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

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Digital Commerce

Cloud-based commerce solutions offering:

  • Mid-size, enterprise Retailers and Brands a Single Platform to drive

unified online and in-store customer experiences

  • Flexible, open and globally available solution on Microsoft Azure
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Digital Commerce Experience Mgmt (DCXM) Mobile Store Fulfillment Commerce OrchestrationTM Platform

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Main Product Offering

The API-first commerce platform that makes

  • mnichannel 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.

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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

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Retail & Brand Manufacturing enabling top brands

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Helping Quebecers during key life events & moments

  • Smarter way to Buy & Sell goods and services
  • Manage your Career & find your next Job
  • Find Love & build lasting Relationships

B2C Marketplaces

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Because of its product variety, availability and price sensitive nature Marketplaces dominate the reordering and repeat purchases experience regardless of where the initial purchase was made.

B2C Marketplaces – Growth Initiatives

Broadening reach

  • English version & Freemium model
  • Mass media & Digital advertising

Optimizing engagement

  • Personalisation: From Search to Propose with AI & personalized propositions
  • Real time Messaging between buyers & sellers
  • Increased focus on verticals such as Automotive & Housing

Monetizing engagement

  • Internalized advertising for enhanced control over all channels to optimize

revenues

  • Focus on optimizing conversion rates for value added products & services
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Sales Enhancer

#1 communication tool chosen by 70% of the interested buyers Data-driven and customer behaviour

  • riented

Marketplace leads for Fulfillment

Data-driven decision-making process with a high focus on ROI for product development as well as sales and marketing initiatives. Customer-focused experience tool to generate leads and engagement with sellers Premium Automotive, Housing & Finance product and services providers trust us.

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Considering the competitive labour market, our priority is to focus on candidates, and engage them during their ongoing career path.

B2C Marketplaces – Growth Initiatives

Broadening services to better accompany employers within a particularly competitive market

  • Recruiting Assistant services : Search and pre-qualify candidates for clients
  • Training : new partnership allowing us to offer employers training resources

for their employees, helping with onboarding and retention

Enabling candidates

  • Personalisation: From Search to Propose with AI & Personalized job offers
  • Training: Career path support with robust learning and training offer
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Professional path enhancer

More than a job board Data-driven and candidates behaviour

  • riented

Broadening Reach

Data-driven decision-making process with a high focus on ROI for product development as well as sales and marketing initiatives Beyond a simple job board, our focus is to become an active source for candidates in the management of their career Multi-channel strategy to increase exposure of our content and maximize number of job applicants

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Financial Highlights

Third Quarter FY-2019 ended December 31st, 2018

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Financial Highlights FY2019

Periods ending December 31st, 2018

Three Months Nine Months

Revenues $20,9M

+ 2,1%

$62,3M

+ 3,0%

Adjusted EBITDA $5,3M $17,2M

  • Margin

25,3% 27,6%

Profit $2,9M $8,5M

  • Per share

$0,19 $0,57

Cash flow from operations $2,6M $7,7M

In M of Canadian $ except percentages & per share amount

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Quarterly Results

In M of Canadian $

20,5 20,5 21,1 20,3 20,9 6,1 5,6 5,3 6,6 5,3

1,0 2,1 2,4 3,2 2,9

30% 27% 25% 33% 25%

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

Revenues Adjusted EBITDA Profit Adjusted EBITDA Margin

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*LTM Adjusted EBITDA as per lenders agreement, net debt as of December 31, 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 $66M + accordion feature of $40M*
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  • 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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M&A Guidelines

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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%

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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 Andreanne Simon President, InterTrade Technologies, Inc. Camil Rousseau Vice President, Research & Development André Leblanc Vice President, Marketing Stéphane Anglaret Vice President, Technology

Management Team Board of Directors

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MEDIAGRIF INTERACTIVE TECHNOLOGIES INC. 1111 St-Charles Street West East Tower, Suite 255 Longueuil (Quebec) Canada J4K 5G4

www.mediagrif.com

Toll Free: 877 677-9088 Phone: 450 449-0102 Fax: 450 449-8725