INVE INVESTOR PR PRESENT NTATIO ION FO FOCUS US ON ON L LON - - PowerPoint PPT Presentation

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INVE INVESTOR PR PRESENT NTATIO ION FO FOCUS US ON ON L LON - - PowerPoint PPT Presentation

INVE INVESTOR PR PRESENT NTATIO ION FO FOCUS US ON ON L LON ONG G TE TERM RM VAL ALUE UE C CRE REATI TION ON June 2016 Disclaimer This document contains certain forward-looking statements with respect to the Company. These


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SLIDE 1

INVE INVESTOR PR PRESENT NTATIO ION

FO FOCUS US ON ON L LON ONG G TE TERM RM VAL ALUE UE C CRE REATI TION ON

June 2016

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SLIDE 2

Disclaimer

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

  • r 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. As Assumpti tions: 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

Pro rovid ide in innovat ativ ive an and effic icie ient E E-com

  • mmer

erce solu e solution

  • ns

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Consu nsumers E-Sou Sourci cing Su Supply Cha Chain Market et P Pla laces es

Jobboom

(Job board)

MERX InterTrade*

(Electronic Data Interchange)

Carrus

(Automotive aftermarket)

LesPAC

(Classified ads)

BidNet* Polygon*

(Diamonds & jewelry)

Réseau Contact

(Online dating)

Global Wine & Spirits

(Wine & spirits)

The Broker Forum*

(Electronic components)

Power Source OnLine*

(Computer, telecom)

Market Velocity*

(Computer, IT & telecom)

Strongest growth opportunities

* 90% US$ revenues

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SLIDE 4

Our Strategy

Invest in our current businesses Acquire new US revenue business

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E-Sourcing Opportunity

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SourceSuite Market Size: US$2 billion

100K Buying organizations 3,000K + Suppliers / Vendors

Mediagrif Presence:

10% Organic growth 55% Recurring revenues 4K Buying organizations 100K Suppliers

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E-Sourcing Growth Strategy

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Focus on on-boarding agencies & suppliers

  • SourceSuite central

Provide access to productivity tools:

  • Vendor qualification
  • Bid evaluation
  • Con
  • ntr

tract m t managem gement

  • Business intelligence tools
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SLIDE 7

Purchase the assets of ASC for $18.5M

  • In line with the growth strategy
  • Transaction closed May 31st 2016

Operates in a fast growing market (CLM)

  • 15% CAGR- last 5 years (Forrester Research)

Generates a high % of recurring revenues

  • 50% in USD

Provides cross selling/integration opportunities

  • Merx in Canada & BidNet in the USA

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Acquisition of Advanced Software Concepts (ASC) a CLM* software provider

* Contract LifeCycle Management

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SLIDE 8

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Market Opportunity - CLM*

* Contract LifeCycle Management

Source: Forrester Research

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SLIDE 9

Supply Chain Growth Strategy

Leverage strong presence in our verticals Increase focus on product data synchronization

  • Key for online retail

Promote our offering to SMBs Cross sell between our EDI Network & Catalogue

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SLIDE 10

Supply Chain Current Presence

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10% Organic Growth 90% Recurring Revenues 3,000+ Retailers & Suppliers Vert rtic ical als

Apparel & General Merchandise Automotive Food & Beverage Healthcare

Unique Combined Offering

  • Private Catalogue
  • EDI Network Tier-1 VAN
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SLIDE 11

Long Term Value Creation Metrics

(in millions of CAD$, except per share amounts) | 11

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

FY11 FY12 FY13 FY14 FY15 FY16

Cash flow from Operations

$0,58 $0,69 $0,97 $0,80 $1,00 $1,05

FY11 FY12 FY13 FY14 FY15 FY16

Earnings per share

47,1 53,8 60,7 65,4 70,2 73,0

FY11 FY12 FY13 FY14 FY15 FY16

Revenue

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FY2016 Highlights

Revenue of $73,0M, +4% Adjusted EBITDA of $28,6M | 39% margin Profit of $15,8M or $1.05 per share Cash flow from operations of $22,3M Quarterly dividend of $0.10 per share

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Financial Results

(in millions of CAD$) | 13

47,1 53,8 60,7 65,4 70,2 73,0 15,1 17,4 25,2 24,3 27,5 28,6 8,0 9,5 14,0 12,7 15,6 15,8 32,1% 32,3% 41,5% 37,2% 39,2% 39,2%

10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% 45,0% 50,0% 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0

FY11 FY12 FY13 FY14 FY15 FY16

Revenues Adjusted EBITDA Profit Adjusted EBITDA margin

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SLIDE 14

Financial Position

Strong EBITDA margins & balance sheet Net debt / Adjusted EBITDA < 1 TIME Bought back 543,276 shares ($9.1M) in FY16 Revolving credit facility of $80M + accordion

  • f $40M

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SLIDE 15

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 $5 - $25M in annual revenues
  • Aligned to take advantage of our resources (Technical, Financial, HR)

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Ownership Structure

Sha hares es % of T

  • f Tot
  • tal

Claude Roy 3,461,741 23.1% Directors and Officers 765,159 5.1% Employees 189,974 1.2% Su Subtot

  • tal

4,41 4,416,87 ,874 29 29.4% Institutional investors/Public 10,582,105 70.6% Total tal o

  • uts

tstan tanding 14 14,998 998,97 979 100. 100.0% 0%

As at April 1, 2016

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Management Team

Claude Roy President and Chief Executive Officer Richard Lampron Chief Operating Officer Paul Bourque Chief Financial Officer Hélène Hallak Vice President and General Counsel Mark Eigenbauer Vice President, US Operations Suzanne Moquin Vice President, Consumers Solutions Jean-Michel Stam Vice President, e-Business networks Stéphane Anglaret Vice President, Technology Camil Rousseau Vice President, Research & Development

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Board of Directors

Claude Roy Chairman and CEO André Courtemanche President and CEO, VIAVAR Capital Michel Dubé Consultant André Gauthier President, André Gauthier Holding Inc. Gilles Laurin Chartered Accountant and Director of Corporations Gilles Laporte Director of Corporations Catherine Roy Consultant - Executive Search, Décarie Recherche Jean-François Sabourin President and CEO, FinlogiK Inc. & JitneyTrade Inc.

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