Investors Presentation November 2011 Disclaimer Forward Looking - - PowerPoint PPT Presentation

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Investors Presentation November 2011 Disclaimer Forward Looking - - PowerPoint PPT Presentation

Investors Presentation November 2011 Disclaimer Forward Looking Statements This presentation contains certain forward-looking statements with respect to the Company, including, without limitation, guidance on future earnings of the Company.


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SLIDE 1

Investors Presentation

November 2011

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SLIDE 2

Disclaimer

Forward Looking Statements

This presentation contains certain forward-looking statements with respect to the Company, including, without limitation, guidance on future earnings of 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

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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

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Assumptions:

No significant change in the current value of CDN$ vs. US$ No significant increase or decrease in revenues and operating expenses Stable market conditions

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SLIDE 3

Our Mission

Provide innovative e-commerce solutions to help our clients maximize their reach and effectiveness. In doing so, we seek to create value for employees and shareholders

We connect Buyers and Sellers

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E-Commerce Solutions

‒ Marketplaces ‒ Procurement ‒ Business

Worldwide Client Base

‒ Private sector ‒ Public sector ‒ Consumers

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SLIDE 4

x

  • Gov. Opportunities

x

  • Gov. Opportunities

x x x

Wine & Spirits

x x

Computer, IT & Telecom

x

Automotive Aftermarket

x

Diversified Business Sectors

MARKETPLACE BUSINESS E-PROC. CONSUMER INDUSTRY

E-COMMERCE SOLUTIONS

x

Medical Equipment

x

Computer, IT & Telecom

x

Electronic Components

x

Supply Chain Collab.

x

Automotive Aftermarket

x

Diamonds & Jewelry

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SLIDE 5

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Return to Growth

Management change Dec 08 50.1 46.0 47.7 47.9 45.7 47.1

40% 27% 27% 33% 32% 35% 30% 35% 40% 45% 50% 35 45 55 5

(CAD currency in Millions of $)

12.6 12.7

20.0 12.5 9.7 5.2 12.4 15.3 4.0 4.5 9.8 5.1 2.0

  • 1.3

2.5 8.4 2.2 3.7 27% 20% 11% 0% 5% 10% 15% 20% 25%

  • 5

5 15 25

FY06 FY07 FY08 FY09 FY10 FY11 Q1 FY12 Q2 FY12

Revenues EBITDA Net margin EBITDA margin %

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SLIDE 6

‒ White Label E-Procurement Solution

Government of Canada preferred solution Canadian/U.S public & private sector adoption Government of Quebec E-Procurement solution opportunity

(Bid Submitted. Awaiting Decision)

‒ SaaS E-Commerce Solution

Currently utilized by Major North American client

Organic Growth Initiatives

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Currently utilized by Major North American client White label solution opportunities in other vertical markets

‒ Build on InterTrade EDI Market

High growth in SMB Web EDI solutions market

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SLIDE 7

Building on Recurring Revenues

Contractual Recurring Revenues

Membership (SaaS)* Software (Right of use) Transactional Maintenance

64%

Recurring Rev. FY12 - 6 Months 1% 1% 4% 19% 7%

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Maintenance Value Added Services Information Services Advertising

*Software as a Service **Contract should exist for more than one year

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45% 23% 19%

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SLIDE 8
  • Nov. 2011

Dec 2008 $189 M $28 M

Market Cap. Stock Price

$13.80 $2.00

Focus on Value Creation

Dec 08 2010 2011 $13 $6 $1

Stock Performance

‒ Acumen Capital Finance Partners ‒ Valeurs mobilières Banque Laurentienne ‒ GMP Securities L.P . ‒ Cormark Securities ‒ National Bank Increased Analyst Coverage Market Cap. and share price up more than 6X Value For Shareholders Quarterly dividend of C$ 0.08

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SLIDE 9

Leading Classified Ad Website in Quebec

Strong brand awareness 2.1 million registered members 1.8 million monthly unique visitors (30% of QC. online audience)

LesPAC Overview

Revenue by Type Market Positioning (QC.) Key Partnerships

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72%

10% 5% 13% Online Marketplace Partnership Classifieds (Trader) Partnership Classifieds Advertising

Mediative (Yellow Media Inc.)

Advertisement agency Responsible for managing display advertisement on LesPAC

Trader Corporation

LesPAC publishes Quebec vehicle dealer ads directed by Trader corporation

Google

Google contextual ads on LesPAC (Google AdSense)

Monthly Unique Visitors (in thousands)

2,271 1,769 262 272 202 182 135 79

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SLIDE 10

MDF Acquisition Criteria LesPAC

North American Location

  • Ethical and Diversified Business Sectors
  • Strong Business Models
  • LesPAC Acquisition

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High Profitability Recurring / Transactional Revenues SaaS (Software-as-a-Service) Sustainable competitive advantage

Web Based Solutions

  • FY12 Acquisition Targets
  • Companies between $5 -$25 M in annual revenues

Aligned to take advantage of our resources (Technical, Financial, HR)

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SLIDE 11

x

  • Gov. Opportunities

x

  • Gov. Opportunities

x x x

Wine & Spirits

x x

Computer, IT & Telecom

x

Automotive Aftermarket

x

Our Updated Portfolio

MARKETPLACE BUSINESS E-PROC. CONSUMER INDUSTRY

E-COMMERCE SOLUTIONS

x

Medical Equipment

x

Computer, IT & Telecom

x

Electronic Components

x

Supply Chain Collab.

x

Automotive Aftermarket

x

Diamonds & Jewelry

x x x

Classifieds / Ad / Deals

11 New

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SLIDE 12

LesPAC Acquisition - Funding Structure

Funding Sources $Million %

Mediagrif Cash $25 33.5% Term Loan $40 53.6% Revolving Credit Facility* $9.6 12.8%

Total $74.6 100%

Debt Projection

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*$20M Approved

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  • $9.6

$5.4 2.1x 1.8x 1.4x 0.9x 0.4x 0.0x Dec 2011 2012 E 2013 E 2014 E 2015 E 2016 E

Term Loan Revolver Debt / EBITDA

$3M in cash available at all times

Debt Projection

Free cash flow of approx. $30 M generated after dividends during the period ending 31 March 2016

(CAD currency in Millions of $)

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SLIDE 13

Reaching New Heights

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EBITDA Guidance

FY2012 - $17.5M - $19.5M

(Following LesPAC acquisition, not including acquisition related costs)

Acquisition Accretive to Earnings

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SLIDE 14

Claude Roy President and Chief Executive Officer Paul Bourque Chief Financial Officer Hélène Hallak Senior Vice President and General Counsel Mark Eigenbauer Senior Vice President (PSO, MEFX, MVI) Richard Lampron Senior Vice President (TBF, POG, GWS, Carrus, Intertrade)

Management Team

Richard Lampron Senior Vice President (TBF, POG, GWS, Carrus, Intertrade) Paul Saunders Senior Vice President (MERX, GCU, CBI) Stéphane Anglaret Vice President Technology Eric Phaneuf Vice President Business Development

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SLIDE 15

Claude Roy 2,875,900 21.0% Directors and Officers 583,996 4.2% Employees 185,677 1.4%

Subtotal 3,645,573 26.6% Shares % of total

Ownership Structure

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Outstanding shares 13,709,275 100% Options outstanding 124,500

Public 4,107,783 30.0% Institutional Investors 5,955,919 43.4%

As of Oct. 3rd 2011

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SLIDE 16

Gilles Laurin

Chartered Accountant Advisor and Director of different corporations

Claude Roy

Chairman and CEO Mediagrif

André Courtemanche

President and Chief Executive Officer VIAVAR Capital

Board Members

Jean-François Sabourin

President and Chief Executive Officer FinlogiK Inc.

Gilles Laporte

Former Senior Vice President Logibec

Michel Dubé

Consultant

André Gauthier

President André Gauthier Holding Inc.

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