INVESTOR PRESENTATION Focus on Organic Growth August 2016 This - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION Focus on Organic Growth August 2016 This - - PowerPoint PPT Presentation

INVESTOR PRESENTATION Focus on Organic Growth August 2016 This document contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, necessarily involve risks and uncertainties


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INVESTOR PRESENTATION

Focus on Organic Growth August 2016

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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. These assumptions include, without limitation: + No significant change in the current value of CAD$ vs. US$ + No significant increase or decrease in revenues and

  • perating expenses

+ Stable market conditions

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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 $265M* + Dividend $0.10 / quarter

INVESTOR PRESENTATION | AUGUST 2016

* (as at July 29, 2016)

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OUR MISSION

Provide innovative and efficient E-commerce solutions

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OUR BUSINESSES

CONSUMERS

(JOB BOARD) (CLASSIFIED ADS) (ONLINE DATING)

E-PURCHASING SUPPLY CHAIN VERTICAL E-COMMERCE SOLUTIONS

Carrus

(AUTOMOTIVE AFTERMARKET)

Polygon*

(DIAMONDS & JEWELRY)

Global Wine & Spirits

(WINE & SPIRITS)

The Broker Forum*

(ELECTRONIC COMPONENTS)

Power Source OnLine*

(COMPUTER, TELECOM)

Market Velocity*

(COMPUTER, IT & TELECOM)

STRONGEST GROWTH POTENTIAL *90% $U.S. Revenues

INVESTOR PRESENTATION | AUGUST 2016

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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

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

INVESTOR PRESENTATION | AUGUST 2016

(in millions of CA$, except per share amounts)

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FY2017 | FOCUS ON ORGANIC GROWTH

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FY2017 | FOCUS ON ORGANIC GROWTH

Invest in highest growth potential platforms

+ E-Purchasing + Supply Chain + Consumers

INVESTOR PRESENTATION | AUGUST 2016

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E-PURCHASING OFFERING

INVESTOR PRESENTATION | AUGUST 2016

E-purchasing Market: Double digit growth market* Merx (Canada): 2,000 buyers, 70,000 suppliers BidNet (USA): 1,100 agencies, 45,000 suppliers FY2016: 10%+ Organic growth 55% Recurring revenues

*(Forrester Research)

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E-PURCHASING GROWTH STRATEGY

INVESTOR PRESENTATION | AUGUST 2016

Focus on on-boarding buying

  • rganization & 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

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CONTRACT LIFECYCLE MANAGEMENT

RFP BIDS AWARD CONTRACT MANAGEMENT PERFORMANCE MANAGEMENT VENDOR QUALIFICATION DOCUMENT DEVELOPMENT EVALUATION

Essential piece for MERX & BidNet for product evolution

INVESTOR PRESENTATION | AUGUST 2016

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ASC ACQUISITION

+ In line with our growth strategy + ASC assets purchase, $18.5M, May 31st 2016 + Operate in fast growing market (15% CAGR – last 5 years*)

– CLM from: Nice to have to need to have

+ Generate ≈ 70% of recurring revenues (50% in USD) + Provide cross selling, integration opportunities

INVESTOR PRESENTATION | AUGUST 2016

*(Forrester Research)

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CONTRACT LIFECYCLE MANAGEMENT OPPORTUNITY

INVESTOR PRESENTATION | AUGUST 2016

*(Forrester Research) *

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SUPPLY CHAIN OFFERING

INVESTOR PRESENTATION | AUGUST 2016

11% Organic growth 90%+ Recurring revenues

(75%+ in USD)

3,000+ Retailers & suppliers

Unique Combined Offering Private Catalogue EDI Network Tier-1 VAN

Automotive Healthcare Apparel & General Merchandise

FY2016:

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SUPPLY CHAIN GROWTH STRATEGY

INVESTOR PRESENTATION | AUGUST 2016

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

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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

INVESTOR PRESENTATION | AUGUST 2016

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CONSUMER GROUP GROWTH STRATEGY

Broaden our service offerings as it relates to audiences’ needs: Increase marketing & promotion Revenue diversification 1 2 3

+ LesPAC: Provide best in class shopping experience + Jobboom: Broaden footprint within the talent acquisition process + Réseau Contact: Introducing matching features to online personals

INVESTOR PRESENTATION | AUGUST 2016

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PROCÈS-VERBAL DE LA RÉUNION DU 2 JUIN 2016 FY2017 | FINANCIAL HIGHLIGHTS

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Q1 FY2017 HIGHLIGHTS

+ ASC acquisition completed - May 31st + Revenue of $19.0M | +7% + Adjusted EBITDA of $7.0M* | 37% margin + Profit of $3.7M | $0.25 per share + Cash flow from operations of $4.5M

INVESTOR PRESENTATION | AUGUST 2016

* Includes $0.1M of non recurring costs

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QUARTERLY RESULTS

INVESTOR PRESENTATION | AUGUST 2016

(in millions of CA$)

17,7 18,0 18,5 18,8 19,0 6,5 7,5 8,0 6,6 7,0 3,4 5,1 4,9 2,5 3,5 37% 42% 43% 35% 37%

FY16-Q1 FY16-Q2 FY16-Q3 FY16-Q4 FY17-Q1 Revenues Adjusted EBITDA Profit Adjusted EBITDA margin

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FINANCIAL POSITION

+ Healthy balance sheet / financial ratios + Strong adjusted EBITDA margin & cash flow from

  • perations

+ Net debt / adjusted EBITDA @ 1,06 time* + Liquidity of $49M + accordion feature of $40M*

INVESTOR PRESENTATION | AUGUST 2016

* At the end of June, 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)

INVESTOR PRESENTATION | AUGUST 2016

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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.

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MANAGEMENT TEAM

INVESTOR PRESENTATION | AUGUST 2016

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

INVESTOR PRESENTATION | AUGUST 2016

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

Executive Search, senior consultant, Décarie Recherche

Jean-François Sabourin

President and CEO, FinlogiK Inc. & JitneyTrade Inc.