investor presentation - mediagrif · 2018-03-09 · results to differ materially from those...

INVESTOR PRESENTATION Focus on Organic Growth

November 8, 2016

DISCLAIMER

3

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

INVESTOR PRESENTATION

4

COMPANY OVERVIEW

+ Founded in 1996, public since 2000, MDF.TO

+ Workforce of 445 employees

+ Connecting buyers & sellers through several platforms

+ FY2016 Revenue $73.0M, adj. EBITDA $28.6M, 39%

+ Market capitalization $278M*

+ Dividend $0.10 / quarter

INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH

*as at November 7, 2016

5

LONG TERM VALUE CREATION METRICS

15,1 17,4

25,2 24,3 27,5 28,6

FY11 FY12 FY13 FY14 FY15 FY16

Adjusted EBITDA

10,3 12,3 18,0

22,2 24,1 22,3


Cash flow from Operations

0,58 0,69

0,97 0,80

1,00 1,05


Earnings per share

47,1 53,8

60,7 65,4 70,2 73,0


Revenue

(in millions of CA$, except per share amounts | CAGR: compound annual growth rate)


OUR MISSION

Provide innovative and efficient E-commerce solutions

7

OUR BUSINESSES

(JOB BOARD)

(CLASSIFIED ADS)

(ONLINE DATING) (CONTRACT MANAGEMENT)

(E-PURCHASING)

(E-PURCHASING)

(SUPPLY CHAIN) (AUTOMOTIVE AFTERMARKET)

(DIAMONDS & JEWELRY)

(WINE & SPIRITS)

(ELECTRONIC COMPONENTS)

STRONGEST GROWTH POTENTIAL


FY2017 FOCUS ON ORGANIC GROWTH

9

FY2017 | FOCUS ON ORGANIC GROWTH

Invest in highest growth potential platforms

+ E-Purchasing and contract management

+ Supply Chain

+ Consumers


10

E-PURCHASING OFFERING

E-purchasing Market: Double digit growth market*

Merx (Canada): 2,000 buyers 70,000 suppliers

BidNet (USA): 1,100 agencies 57,000 suppliers

Recurring revenues: ~55%


*(Forrester Research, see appendix)

Organic growth:

FY16 vs. FY15 – 12 months 11% FY17 vs. FY16 – 6 months 6%

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E-PURCHASING GROWTH STRATEGY

Focus on on-boarding buying organization & suppliers

A

+ Grow existing customers potential + Increase sales & marketing activities

Access to new productivity tools

B + Vendor qualification + Bid evaluation + Contract management + Business intelligence tools


12

CONTRACT LIFECYCLE MANAGEMENT

RFP BIDS AWARD CONTRACT

MANAGEMENT PERFORMANCE MANAGEMENT

VENDOR QUALIFICATION

DOCUMENT DEVELOPMENT

EVALUATION

Essential piece for MERX & BidNet for product evolution


13

ASC ACQUISITION

+ In line with our growth strategy

+ Operate in fast growing market*

+ Generate ~70% of recurring revenues (50% in USD)

+ Provide cross selling, integration opportunities

+ Asset purchase – May 31, 2016, $17.1M

*(CAGR 2010-2015 of 15% according to Forrester Research)


14

SUPPLY CHAIN OFFERING

Unique Combined Offering Private Catalogue EDI Network Tier-1 VAN

Automotive

Healthcare

Apparel & General Merchandise


90%+ Recurring revenues (75% US$)

3,000+ Retailers & suppliers

Organic growth: FY16 vs. FY15 – 12 months 11% FY17 vs. FY16 – 6 months 13%

15

SUPPLY CHAIN GROWTH STRATEGY

Increase focus on product data synchronization

1 + More accurate, more secure real time data to buyers + More automation between retailers/suppliers

Cross sell between our EDI Network & Catalogue

2

+ Upsell new services

Promote our offering to SMBs 3 + Increased demand for supply chain solutions


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


17

CONSUMER GROUP GROWTH STRATEGY

Revenue diversification

2

Increase marketing & promotion 3

Broaden our service offerings as it relates to audiences’ needs:

1

+ LesPAC: Provide best in class shopping experience

+ Jobboom: Broaden footprint within the talent acquisition process

+ Réseau Contact: Introducing matching features to online personals


PROCÈS-VERBAL DE LA RÉUNION DU 2 JUIN 2016 FINANCIAL HIGHLIGHTS Second quarter ended September 30, 2016

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Q2 FY2017 HIGHLIGHTS

+ Revenues of $19.5M | +9%

− ASC revenues $1.4M*

+ Adjusted EBITDA of $8.1M | 42% margin

+ Profit of $4.5M | $0.30 per share

+ Cash flow from operations of $5.9M

INVESTOR PRESENTATION | SECOND QUARTER ENDED SEPTEMBER 30, 2016

* Acquired deferred revenue adjustment to their fair value at the acquisition date: • FY2017 | Q2: ($0.3M), FY2017 | Q3: ($0.2M), FY2017 | Q4: nil

20

QUARTERLY RESULTS

(in millions of CA$)


18,0 18,5 18,8 19,0 19,5

7,5 8,0 6,6 7,0

8,1

5,1 4,9

2,5 3,7 4,5

42% 43%

35% 37% 42%

Q2-FY16 Q3-FY16 Q4-FY16 Q1-FY17 Q2-FY17

Revenues Adjusted EBITDA Profit Adjusted EBITDA margin

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FINANCIAL POSITION

+ Healthy balance sheet

+ Strong adjusted EBITDA margin

+ High cash flow from operations

+ Net debt / adjusted EBITDA @ 0.9X*

+ Liquidity of $53M + accordion feature of $40M*

*Adjusted EBITDA of last 12 months, net debt as at September 30, 2016 *Accordion feature subject to lenders approval


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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)


23

OWNERSHIP

+ 15 million shares outstanding* − NCIB in place for an additional 250,000 shares

+ Alignment of interests − Directors & Officers owns 27.4% of all shares

• Claude Roy, president & CEO, currently holding 23.3%

+ Team focused on creating value

+ Disciplined & prudent approach

*October 2016


BOARD OF DIRECTORS AND EXECUTIVE OFFICERS

25 INVESTOR PRESENTATION

BOARD OF DIRECTORS Claude Roy Chairman and CEO

Gilles Laurin Chartered Accountant and Director of Corporations

Michel Dubé Consultant

Catherine Roy Executive Search, senior consultant Décarie Recherche

André Gauthier President André Gauthier Holding Inc.

Jean-François Sabourin President and CEO FinlogiK Inc. & JitneyTrade Inc.

Gilles Laporte Director of Corporations

MANAGEMENT TEAM Claude Roy President and Chief Executive Officer

Suzanne Moquin Vice President, Consumers Solutions

Richard Lampron Chief Operating Officer

Jean-Michel Stam Vice President, e-Business networks

Paul Bourque Chief Financial Officer

Stéphane Anglaret Vice President, Technology

Hélène Hallak Vice President and General Counsel

Camil Rousseau Vice President, Research & Development

Mark Eigenbauer Vice President, US Operations

APPENDIX

27

FORRESTER RESEARCH

*


MEDIAGRIF INTERACTIVE TECHNOLOGIES INC. 1111 St-Charles Street West, Suite 255 Longueuil, Québec Canada J4K 5G4 www.mediagrif.com

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

Fax: 450 449-8725

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MARKET OPPORTUNITY (e-Purchasing)

$1 051 $1 136 $1 232 $1 333 $1 390 $1 381 $1 522

$742 $827 $916

$998 $1 039 $1 114 $1 182

$213 $250

$296 $336 $379 $432

$491

$141 $172

$231 $291

$311 $362

$409

$433 $488

$547 $598

$632 $690

$755

$190

$260

$294

$347 $401

$479

$557

$483

$547

$669

$769 $848

$1 073

$1 259

$174

$214

$269

$321

$362

$397

$446

$0

$1 000

$2 000

$3 000

$4 000

$5 000

$6 000

$7 000

2009 2010 2011 2012 2013 2014 2015

Supplier Risk andPerformanceManagement

Supplier Network

ServicesProcurement

EIPP

Spend Analysis

Contract LifecycleManagement (BuySide)

E-Sourcing

E-Procurement

14% 14%

12%

7%

11%

12%

$US

Milli

ons


*(Forrester Research)

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NOTE


31

NOTE


32

NOTE


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OWNERSHIP STRUCTURE

INVESTOR PRESENTATION | AUGUST 2016

Shares % of Total Claude Roy 3,462,090 23.1% Directors and officers 766,213 5.1% Employees 193,390 1.3%

SUBTOTAL 4,416,874 29.5%

Institutional investors/Public 10,577,286 70.5% TOTAL OUTSTANDING AS AT JULY 1ST 2016 14,998,979 100.0% Repurchased 818,000 shares in last two years (5.2% of share capital).

Directors and officers own 28.2%. No stock option plan in place.

March 2013

Dec 2008

$306 M

$28 M

Market Cap. Stock Price

$19.40

$2.00

‒ Acumen Capital Finance Partners

‒ Valeurs mobilières Banque Laurentienne

‒ Echelon Partners

‒ Desjardins

‒ National Bank

‒ GMP Securities L.P.

‒ Cormark Securities

Analyst Coverage

Market Cap. and share price up more than 10X

Why invest?

Quarterly dividend of $0.10

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Focus on Value Creation

Stock Performance

2009 2011 2013

$2

$5

$10

$20

WHY INVEST? l 35

Profitable business/Strong balance sheet 6X% Recurring revenue Generating good cash flows Growth potential Paying a dividend

ANALYST COVERAGE l 36

– A COMPLETER Analyst Target Price 1 year

• Echelon • Laurentian LBS • Acumen • National bank financial • Cormark

investor presentation - mediagrif · 2018-03-09 · results to differ materially from those...

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