Investor Presentation May 2020 Forward-looking These assumptions - - PowerPoint PPT Presentation

Investor Presentation

May 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

• f 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

kCentric Technologies 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 MONTHS

• Dec. 2019

LTM

Total Revenues

$56,5M

B2B: $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

• f Commerce

Our strategic M&A plan

Increase our customer count and expand our geographic coverage Seek technology components that bolster

• ur 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

• f 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

• f 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

Tech

Recognition

e.g.: Gartner, Forrester, etc.

Employer of

Choice

e.g.: Top SMB Tech Company, Glassdoor, etc.

One

company

One Recognized Brand

Acquire gradually

$100M to $150M

• f 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
• n 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 Stats

US$ 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

• f 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

• n 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 Stats

US$ $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 Overview

Secure 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

Tech

Recognition

e.g.: Gartner, Forrester, etc.

Employer of

Choice

e.g.: Top SMB Tech Company, Glassdoor, etc.

One

company

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.