investor presentation · presentation may 2020 . this document contains certain forward-looking...
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InvestorPresentationMay 2020
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.
No significant change in the current value
of CAD$ vs. US$
No significant increase or decrease in
revenues and operating expenses
Stable market conditions
Forward-looking
Statement
These assumptions include,
without limitations:
(1) Before non-recurring items
$25
Claude Roy - CEO
Company History and Key Milestones
Acquisition of
kCentricTechnologies inc.
Completed Dec. 3rd
(1) Before non recurring expenses of $1.4 M
FY2020 Q3 Highlights
5-year strategic plan
Now completed and launched
Total revenue of
$18,1M(94% or $17,1M from B2B)
Adjusted EBITDA(1) of
$1,6M(9% of revenue)
Revenues
+ B2B Platforms
+ B2C Marketplaces
$77,3M
$67,7M
$9,6M
$83,1M
$66,1M
$17,0M
Adjusted EBITDA (2)
+ Margin
$14,8M
19 %
$22,6M
27%
Adjusted Profit / Loss
+ Per share
$2,0
$0,14
$9,5M(3)
$0,64
In Millions of CAD $
Except percentages & per share amount
(1) Excluding $1.8 million of non recurring expenses composed of termination benefits & prof. fees.
(2) LTM Dec. 2019 & FY2019 excludes non recurring expenses of $3.2 & $1.9 million, respectively.
(3) Before impairment of assets held for sale, net of related taxes of $ 35,1M
FY2019 (1)
12 MONTHSDec. 2019
LTM
Total Revenues
$56,5MB2B: $50,8M, up 3,0%
B2C: $5,7M
Adjusted EBITDA of
$9,8M (1)
17% Margin
Adjusted Profit (1)
$1,0M 0,07$ / share
FY 2020
9 months
FY2020 YTD Highlights
The adoption of IFRS 16, as mentioned in note 4 of our interim condensed consolidated financial
statement, had a favorable impact $1.5 million for the nine months ended December 31, 2019.
As allowed by this new standard, the adjusted EBITDA of the previous period has not been
restated to reflect the impact of IFRS 16.
$43,4$48,1
$54,9
$61,2$66,1
2015A 2016A 2017A 2018A 2019A
In million of CAD $
Cloud-based
SaaS Model
80%+ ARR
50% U.S.
SOURCING
900+ buyers
150,000 suppliers
COMMERCE
620+ eCom clients
B2B Businesses
LTM
$67.7
Our Mission
Our Vision
Unify our strengths to create
a fast-growing cloud-based
commerce technology company
Strategic Sourcing - Growth
Sourcing
Supply Base Management
Contract Lifecycle Management
Unified Commerce - Growth
Supply Chain Collaboration
Digital Commerce
Automotive Aftermarket
B2B Marketplaces - EBITDA
Diamonds & Jewelry
Electronic Components
Computer, IT & Telecom Components
Powering a full range of commerce
ecosystems via three key operational pillars:
Value creation
across the entire
commercial
ecosystem
Supporting over
$15B in commercial
transactions
Enabling the Flow of Commerce
Our strategic
M&A plan
Increase our customer
count and expand our
geographic coverage
Seek technology
components that bolster
our existing product and
service offerings.
Strengthen our
corporate development
efforts to accelerate the
execution of our M&A
strategy.
Our organic
growth plan
Strengthen GTM
Compounded by
strategic M&A
Implement sales-
driven culture
throughout the
company
Product development
strategy
Monetization of data
through high value,
AI-based services
Accelerated cadence
of releases and new
features
Obtain product
recognition
5 Year Strategic Plan
We create value for our customers by
supporting them with optimal, pragmatic,
just-right commerce technology
solutions.
Enabling the Flow of Commerce
We are unique in our ability to operate
across the entire commercial ecosystem
from procurement to commerce
to B2B marketplaces.
Our customer support
is best in class.
5 Year BHAG
$250M+
EBITDA + Growth > 40%
$1B Valuation
1,500+Employees
TechRecognitione.g.: Gartner, Forrester, etc.
Employer of
Choicee.g.: Top SMB Tech Company,
Glassdoor, etc.
Onecompany
One Recognized Brand
Acquire gradually
$100M to $150M of revenue + $25M to $40M of EBITDA
focused in our strategic pillars
Small acquisitions
Below 3M$ in revenue
Technology tuck-in or
market extensions
Paid 3 to 5 x revenue
Medium acquisitions
5 to 10 M$ in revenue
Market extensions or
technology platform
Paid 10 to 15 x EBITDA
Large acquisitions
20 M$ + in revenue
Market extensions
Paid 10 to 15 x EBITDA
Model predicts small, medium and large acquisitions over time
Use equity wisely
as value increases and enables
further financing
M&A Strategy - Overview
46
Berkery Noyes tracked 6,871 Software
transactions between 2017 and 2019
M&A Strategy – Market Data
VALUE CREATION
• NA coverage with leadership position in Canada and massive
growth potential in the U.S.
• Expansive customer and supplier base to grow from 3,000+
purchasing agencies & 130,000+ supplier network
• Wealth of data to monetize
• Strong best-of-breed CLM solution well positioned to capitalize
on rapidly expanding market
• 85% ARR
GROWTH VECTORS
• MERX conversion
• Increased rate of US organic growth
• Data Monetization
• Upgrade existing client base
• Penetrate growing CLM market
ARPA
• Merx - $340 / y
• BidNet - $530 / y
• ASC - $88,500 / y
Strategic Sourcing Overview
Simplifying the sourcing process for buyers and giving
suppliers access to the largest database of opportunities
Market StatsUS$ 10B market by 2023 with +10% CAGR(1)
Large and mid-sized companies represent
77% of market volume Vs. 23% for special
districts & Tier 1-2 government agencies (2)
Only 31% of agencies use an external
strategic sourcing provider (3)
Accelerated consolidation activities by key
players to address more integrated demands
of private market
AI and automation present key opportunities
for accelerated value
creation and operational efficiencies
CLM market set to double from
US$1B to US$2.5B (4)
VALUE CREATION
Comprehensive offering
- All-in-one ERP integrated e-commerce and e-payment solutions for SMBs
- Headless commerce platform for mid to upper markets
• Ability to service broad needs of customers (front-end, back-end,
infrastructure, etc.)
• 625+ clients to grow from, including top global brands
• ≈ 60% ARR in FY20
GROWTH VECTORS
• Enterprise – Accelerate enterprise sales & marketing cadence to win net
new logos
• SMB – Pursue mid-market integrated e-commerce cadence to win net
new logos
• SMB – Accelerate – migrate to new integrated payment solutions across
ERP ecosystems
• Manage current customer base to improve margins
• Identify and implement product synergies to fuel cross-selling, innovation
and productivity
ARPA
• K-eCommerce - $13,200 / y
• Orckestra - $837,700 / y
eCommerce Overview
Enabling the flow of commerce with omnichannel
shopping capabilities
Market Stats$10.4B US e-commerce platform market
by 2025 with 12-15% CAGR(1)
Valued at $12.2T globally, the B2B
e-commerce platform market is 6x larger
than B2C(2)
84% of US distributors and 79% of US
manufacturers expect to increase spending
on e-commerce in the coming year (3)
As manufacturers increasingly adopt
ecommerce, they can go direct-to-
consumers (4)
Supply Chain Collaboration Overview
Optimize the collaboration between retailers and suppliers, by increasing
the speed, data quality and efficiency of supply chain transactions
Market StatsUS$ $1.4 B NA market by 2024 with
11% CAGR
Early adoption by retail, growing use in
Healthcare, Automotive, Financial and
High-Tech
Disruptive new commerce models driving
exponential growth of supply chain EDI
Increasing demand for automated and
clean “data foundation” to enable rich
data experiences: eCommerce, AI, IoT,
Blockchain
VALUE CREATION
• Tier-1 B2B/EDI network and Product data synchronization platform
• Proven expertise in B2B integration and industry standards
• Ability to service broad range of customers (Small, Mid-size, Large)
• 25+ existing ecosystems, + 4,000 paying suppliers
• High demand from retail companies seeking digital transformation
• 95% ARR
GROWTH VECTORS
• Win Net new Retailers with improved GTM
• Monetize existing Retailers: upsell + cross-sell
• Monetize existing Suppliers: upsell + cross-sell
• Grow network market share with end users and resellers
• Adapt catalogue & Web-EDI to new verticals
ARPA
• Catalogue - $2,000 / y
• Web-EDI - $1,000 / y
• Network - $13,000 / y
VALUE CREATION
• “Neutral” multi-platform marketplaces attracting both buyers
AND sellers
• Well established with prominent industry positions in each vertical
• B2B models less prone to disruption with high margins
• 85% ARR (B2B)
• Strong B2C brands
OPERATIONAL FOCUS
• Maximise profitability while sustaining long term viability
• Increase ARPA and maximize LTV of existing membership base
• Continued efforts to solidify and improve tech platforms
• More focused efforts on lead generation and sales activities
• Continued efforts to optimize conversions, upselling and cross-selling
ARPA
• Carrus - $4,500 / y
• Jobboom - $1,300 / y
• Réseau Contact - $200 / y
• The Broker Forum – $2,800 / y
• Polygon – $1,000 / y
eMarketplaces OverviewSecure eMarketplaces connecting buyers and sellers
to create transaction efficiency, productivity and profit
Market Stats Global B2B eMarketplaces sales set
to hit $3.6 trillion by 2024 (1)
Currently, only a mere 7.5% of the
annual $7.9 trillion worth of online B2B
sales, are made via marketplaces (1)
The Canadian Automotive Aftermarket
is growing at a 2.5% CAGR, expected
to reach a market size of US$20.9 B by
2025 (2)
Solid Customer Base to Build on and Cross-sell
…and serving a network of over 150,000 suppliers across North America
5 Year BHAG
$250M+
EBITDA + Growth > 40%
$1B Valuation
1,500+Employees
TechRecognitione.g.: Gartner, Forrester, etc.
Employer of
Choicee.g.: Top SMB Tech Company,
Glassdoor, etc.
Onecompany
One Recognized Brand
Company Market Cap – CA$ Enterprise Value – CA$ xRevenues xEBITDA
Opentext 15,5B 17,9 x4,7 x15
Kinaxis 2,8B 2,5 x10,9 x63,4
SPS Commerce 2,6B 2,4 x6,5 x34,8
Scout RFP N/A US$540M x18 N/A
Mediagrif 89M 96 x1.2 x5.9
Data sources: S&P Capital IQ, Mergermarket;
CRM - Customer Relationship Management; SEC – Security; PYMT - Payment/Financials ; ISS - Industry Specific Software; HCM -
Human Capital Management; ERP - Enterprise Resource Planning; SCM - Supply Chain Management; IS - Internet Software.
Comparable Valuations
18
Board of Directors
Management Team
Gilles Laporte
Chairman of the Corporation
Director of corporations
Catherine Roy
Vice President, Transformation, Mediagrif Interactive Technologies Inc.
President, Gestion Catsachar Inc.
Luc Filiatreault
President and C.E.O., Mediagrif Interactive Technologies Inc.
Jean-François Sabourin
President and C.E.O., JitneyTrade Inc.
Philippe Duval
First Vice President & C.O.O., Groupe Sélection
Natalie Larivière
President, Yuma Strategies
Gilles Laurin
CPA, CA
Director of Corporations
Zoya Shchupak
Consultant, Strategy and M&A, Sagard Holdings ULC
Luc Filiatreault
President and Chief Executive Officer
Camil Rousseau
Chief Technology Officer
Paul Bourque
Chief Financial Officer
Hélène Hallak
Vice President, Legal affairs and corporate development
Catherine Roy
Vice President, Transformation
André Leblanc
Vice President, Marketing and Communications
Julie Bélanger
Vice President, Human Resources
Mark Eigenbauer
President, Strategic Sourcing
Andreanne Simon
President, Supply Chain Collaboration
Jean-Michel Stam
President, e-Marketplaces
Louis Mousseau
President, e-Commerce
Questions
1111 St-Charles Street West
East Tower, Suite 255
Longueuil, Quebec
Canada J4K 5G4
TOLL FREE 877 677-9088
PHONE 450 449-0102
FAX 450 449-8725 mediagrif.com
Mediagrif Interactive Technologies Inc.