INVESTOR PRESENTATION November 2019 Fluid transmission and use of - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION November 2019 Fluid transmission and use of data to power todays commerce ecosystems. Forward-looking These assumptions include, Statement without limitations: + This document contains certain forward-looking

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INVESTOR PRESENTATION

“Fluid transmission and use of data to power today’s commerce ecosystems.”

November 2019

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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

  • f CAD$ vs. US$

+ No significant increase or decrease in revenues and operating expenses + Stable market conditions

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SLIDE 3

Company History and Key Milestones

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(1) Before non-recurring items $25

Claude Roy - CEO

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SLIDE 4

Rev even enues es

+ B2B Platforms + B2C Marketplaces

$18,2M ,2M

$16,8M $1,3M

$20,3M ,3M

$16,1M $4,2M

$83,1 ,1M

$66,1M $17,0M

Adj djust sted ed EBITDA

+ Margin

$3,7 ,7M

20,3%

$6,6 ,6M

32,0%

$20,7 ,7M

24,9%

Adj djust sted ed Pro Profi fit

+ Per share

$1,7 ,7M(1)

1)

$0,11

$3,2 ,2M

$0,21

$9,5 ,5M(2)

2)

$0,64

Cas ash Flow

  • w from
  • m Operatio

ations s $0,6 ,6M $2,7 ,7M $12,7 ,7M

4 In Millions of CAD $ Except percentages & per share amount

(1) Excluding favorable 0.2 M $ adjustment on sale of a subsidiary (2) Before impairment of assets held for sale, net of related taxes of $35,1M

Financial Highlights

FY2019

12 MONTHS Q2 Q2

FY2020

Total Revenues

$18,2M

B2B: $16,9M  up 5,0% B2C: $1,3M

Adjusted EBITDA of

$3,7M

21% Margin

Adjusted Profit (1)

$1,7M

$0,11 / share Net Cash Position of

$0,6M

as at September 30, 2019

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SLIDE 5

B2B Businesses

$43,4 $48,1 $54,9 $61,2 $66,1

2015A 2016A 2017A 2018A 2019A In millions of CAD $ CAGR: 9%

Cloud-based SaaS Model 80%+ + ARR 50% U.S.

SOURC RCING ING

900+ + Buyers 150,000 ,000 Suppliers

COMME MERC RCE

620+ + eCom Clients

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The New Mediagrif

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We enable the flow

  • f commerce

Our Mission

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Unify our strengths to create a fast-growing cloud-based commerce technology company

Our Vision

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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

Power erin ing a full ll range ge of commerce ce ecosy cosyst stems ems via a three ee key y opera eration tional al pill llars ars:

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Value creation across the entire commercial ecosystem Supporting over $15B in commercial transactions

Enabling the Flow

  • f Commerce
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SLIDE 10

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
  • 900+ purchasing agencies & 120,000+ 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

  • Increase ARPU of existing customer base (share of wallet)
  • Monetize data with AI + automation with value-added Supplier

Services

  • Strategic acquisitions to scale in the U.S.
  • Cross sell CLM to current customer base, private SMBs and

enterprises

  • More aggressive G2M

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Strategic Sourcing Overview

Simplifying the sourcing process for buyers and giving suppliers access to the largest database of contracts

Vital Stats

  • US$ 10B market by 2023 with +10% CAGR
  • Early adoption by public entities, growing

use in IT, communications, retail, health and automotive

  • AI and automation present key
  • pportunities for accelerated value creation

and operational efficiencies

  • CLM market set to double from US$1B

to US$2.5B

Source: MarketWatch – Procurement Software Market Valuation - October 15, 2018 Source: Research & Markets - Contract lifecycle management software market: Global industry trends, Share, Size, Growth, Opportunity and forecast 2019-24 - February 2019

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VALUE CREATION

  • Full range offering: B2B and B2C capabilities covering mid to upper

markets

  • Ability to service broad needs of customers (front-end, back-end)
  • 625+ clients to grow from, including top NA brands
  • 23 existing ecosystems + 5,000 paying suppliers
  • Combined 77% ARR

GROWTH VECTORS

  • Increase ARPU of existing customer base (share of wallet)
  • Expand client base with more aggressive GTM
  • Cross-selling between eCom and Supply Chain client base
  • Strategic acquisitions to accelerate scale in the U.S.

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Unified Commerce Overview

Driving commerce by connecting suppliers to retailers and retailers to consumers

Vital Stats

eCommerce

  • US$11B market by 2023 with 22% CAGR
  • Only 28% of top NA retailers have unified

platforms, will grow to 81% by 2021

  • Early adoption by retailers, manufacturers

and distributors entering direct-to-consumer models Supply Chain - EDI

  • US$1.4B 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

Source: Reuters - Omnichannel Retail Commerce Platform market - February 20, 2019 Source: Retail Touchpoints - 81% of retailers will deploy unified commerce platforms by 2020 - February 5, 2018 Source: Acquire Market Research – February Source: Global Electronic Data Interchange (EDI) Software Market 2019 by Company, Regions, Type and Application, Forecast to 2024

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VALUE CREATION

  • Generate significant margins to help fuel transformation
  • “Neutral” multi-platform marketplaces attracting both buyers

AND sellers

  • Well established with prominent industry positions in each vertical
  • 3600 high ARPU customers – over 90M parts and accessories –

100K+ newsletter subscriptions

  • Models less prone to disruption with high margins
  • 85% ARR
  • Maintain existing high value-add services

OPERATIONAL FOCUS

  • Maximize selling and buying opportunities for members
  • Increase ARPU and maximize ALV of existing membership base
  • Continued efforts to solidify and improve tech platforms
  • More focused efforts on sales activities

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eMarketplaces Overview

Secure eMarketplaces connecting buyers and sellers to create transaction efficiency, productivity and profit

Vital Stats

  • Global B2B eMarketplaces sales set

to hit $3.6 trillion by 2024

  • Online will represent 30% of all worldwide

B2B sales

  • Presently leveraged mostly by SMBs, with

next adoption wave from large businesses

Source: DigitalCommerce360.com – iBE – Q4 2019

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SLIDE 13

Massive Market Opportunity

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eCommerce

US$ 11B Market

By 2023

Strategic Sourcing

US$ 10B Market

By 2023

Supply Chain - EDI

US$ 1,4B Market

By 2024

10% CAGR 11% CAGR 22% CAGR

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Solid Customer Base to Build on and Cross-sell

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…and serving a network of over 150,000 suppliers across North America

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Comparable Valuations

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.

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Well Positioned for Accelerated Growth

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Pro roven en exist istin ing te tech ch + new w prod roducts cts in develo elopme pment Tech and service offer complementary to existing eCom capabilities Addition of 600+ clients, 60% U.S. Based Addition of 20+ GTM resources to bolster sales capabilities SOLID D FINANC NANCIA IALS ALLOW US TO INVES EST T IN FAST-GROWING ING SECTORS RECEN ENT T ACQUIS ISITIO ITION Strong

  • ng custom
  • mer

er bas ase Strateg egic ic acq cquisiti ition plan an Grow sales teams to sell more of what we have w/ strong focus on U.S. Increase ARPU + monetize data + upsell and cross-sell + Tech + Customers - revenues + GTM capabilities

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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 Nathalie Meunier Vice President, Human Resources Mark Eigenbauer Vice President, Strategic Sourcing Andreanne Simon Vice President, Supply Chain Collaboration Jean-Michel Stam Vice President, eMarketplaces Louis Mousseau Vice President, eCommerce

Board of Directors Management Team

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Questions

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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 Interactive Technologies Inc. mediagrif.com