REFOCUSING ON B2B A u g u s t 2 0 1 9 1 INVESTOR PRESENTATION - - PowerPoint PPT Presentation

INVESTOR PRESENTATION

A u g u s t 2 0 1 9

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2020 REFOCUSING ON B2B

A u g u s t 2 0 1 9

INVESTOR PRESENTATION

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 of CAD$ vs. US$ + No significant increase or decrease in revenues and operating expenses + Stable market conditions

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INVESTOR PRESENTATION

Our Mission

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INVESTOR PRESENTATION

Company Overview

4 (1) FY 2019 Adjusted EBITDA includes $1,9 M of non recurring costs

Created in 1996, Public since 2000, TSX: MDF B2B ecommerce solutions to private businesses, public sector organizations in North America & internationally Global employee force of 515 Proven track record of profitability 14,8 million shares outstanding

FY2019 Revenue

$83,1M

FY2019 EBITDA(1)

$20,7M

Margin(1)

25% $12,7M

Cash flow from op’s

INVESTOR PRESENTATION 5

Longueuil, Canada Laval, Canada Ottawa, Canada Albany, New York Copenhagen, Denmark Atlanta, Georgia Shenzhen, China

Worldwide Locations

INVESTOR PRESENTATION 6

Company Platforms

Strongest Growth Potential B2B

Online Recruiting

B2C Marketplaces Held for sale

Classified Ads Online Dating

Sold as at June 11, 2019

Strategic Sourcing

B2B Marketplaces

Unified Commerce

E-Sourcing

Contract Life Cycle Management Diamonds & Jewelry Electronics Components Computer, IT & Telecom Components Digital Commerce Automotive Aftermarket Supply Chain Collaboration

E-Sourcing

INVESTOR PRESENTATION 7

60,7 65,4 70,2 73,0 77,7 80,9 83,1 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Revenue

$18,0 $22,2 $24,1 $22,3 $23,7 $17,9 $12,7 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Cash flow from Operations

25,2 24,3 27,5 28,6 28,6 23,4 20,7 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Adjusted EBITDA

*

*FY18 & FY19 includes $2.0 M & 1,9 MM of non recurring expenses respectively

$0,97 $0,80 $1,00 $1,05 $1,06 $0,57 $0,64 FY13 FY14 FY15 FY16 FY17 FY18 FY19

Adjusted Earnings per Share

2019 EPS is before non-cash impairment charge ($2.30 per share) on assets held for sale.

Historical Results

In million of CAD $ except per share amount

INVESTOR PRESENTATION 8

Last 5 Years - Revenue from B2B & B2C

$43,4 $48,1 $54,9 $61,2 $66,1 $26,8 $24,9 $22,8 $19,8 $17,0 2015A 2016A 2017A 2018A 2019A B2C

In million of CAD $

B2B B2C

CAGR: B2B 8,8%

INVESTOR PRESENTATION

FY 2020 Strategy

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Refocus operations towards the B2B businesses Seize market opportunities in the B2B markets

+ Investments in our sales force + Cross selling of our solutions

Complete sales of the B2C marketplaces

+ LesPAC sold as at June 11, 2019

INVESTOR PRESENTATION 10

Strategic Sourcing + Sourcing + Supply Base Management + Contract Lifecycle Management (CLM)

01

Unified Commerce + Supply Chain Collaboration + Digital Commerce + Automotive Aftermarket

02

B2B Marketplaces + Diamonds & Jewelry + Electronic Components + Computer, IT & Telecom Components

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Areas of Focus

INVESTOR PRESENTATION

Strategic Sourcing: Main Brands

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Canada

• 1,000+ buying org.
• 70,000 suppliers
• Strong public &

private presence across Canada

90% recurring

USA

• 900 agencies
• 63,000 suppliers
• Presence in 30

States

90% recurring

CAD/USA

• 40+ clients
• Contract Life Cycle

Management

• ffering four SaaS

editions in a multi- tenant private cloud environment

82% recurring

Revenue type:

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Strategic Sourcing: Solutions

Sourcing Supply Base Management Contract Lifecycle Management Spend Analysis

• RFx
• Creation
• Management
• Publication
• Bid

evaluation

• Award

publication

• Vendor

database

• Vendor

qualification

• Performance

management

• Vendor

certification

• Repository
• Alert
• Contract

creation

• Requisitions

management

• Approval of

workflows

• Data

cleansing

• Categorization
• Analytics
• Notification
• Dashboard
• Decision

support

INVESTOR PRESENTATION 13

Implement value added Supplier Services

Cross sell CLM to current customer base, private SMB’s & enterprises

Increase Buyer Content

Strategic Sourcing: Growth Initiatives

INVESTOR PRESENTATION 14

Unified Commerce: Main Brands

Seamlessly connect with retailers to drive sales

Suppliers

Being able to complete their shopping exp. regardless of channel

Consumers

Connect with suppliers and distributors to fulfill needs Connect with consumers via several channels to drive sales

Retailers

Digital Commerce Supply Chain Collaboration

INVESTOR PRESENTATION 15

Supply Chain Collaboration

B2B integration solutions increasing supply chain efficiencies between Retailers & Suppliers, by:

+ Connecting B2B trading communities + Exchanging business documents regardless of format (purchase orders, shipping notices, invoices) + Synchronizing eCommerce-ready product information (detailed, structured and compliant with industry standards)

INVESTOR PRESENTATION 16

Client Base

EDI Business Network Electronic Product Catalogue Retailers

Clients: 4,100 + Main industries: Apparel & General merchandise, Automotive, Healthcare & Food Geographic Location: 75% USA, 25% Canada Profile: Retailers, Suppliers, Distributors, 3rd party logistic partners Recurring revenue + 90%

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Main Product Offering

EDI B2B Network

Transport & Transform Data

Automated Exchange of Supply Chain Business Documents such as: Purchase Orders, Advanced Shipping Notices & Invoices, with hands-on managed/outsourced services. OEM solution partner

• f Boomi iPaaS solution

UPC Product Catalogue

Synch Data, Sell Faster

Source of truth for detailed & structured product data (to GS1’s standards), consolidated & validated across all your trading partners, for the use of retailers.

Trading Community Enablement

Connecting you to your partners, quickly

Professional services to onboard & certify your community of trading partners, regardless of their EDI readiness.

EDI Professional Services

Expanding your team capacity & skills

Team of experts ready to offload extra work from your EDI

• perations as well as train your workforce with new EDI skills.

INVESTOR PRESENTATION 18

Addressable Market Size

Target Market: $1,9B USD worldwide by 2020 Market users: 2,5M companies using EDI B2B Networks CAGR: >13% over the next five (5) years Current Trends:

Ecommerce growth and omnichannel retail are driving investments and demand from retailers and their trading partners to further automate supply chain processes for speed, agility and efficiency.

Geographical Reach: Worldwide, with 60% of demand in N.A.

Sources: Dart - Electronic Data Interchange (EDI) Global Market – 2016 Gartner - Market Guide for Integration Brokerage (December 2016), Market Watch - Electronic Data Interchange (EDI) Software Market Size – May 23, 2019

INVESTOR PRESENTATION 19

Supply Chain – Growth Initiatives

Actively target new retailers in GM&A* in North America

+ Offering both Catalog & Network solutions

Grow share of wallet of existing retailers

+ Cross-sell within our evolving offering

Grow share of wallet of existing large base of catalog clients

+ Web EDI solution & managed EDI services

Diversify revenue base with new clients and resell partners

+ Go beyond GM&A industries with our Network offering

* General Merchandise & Apparel

INVESTOR PRESENTATION 20

Digital Commerce

Cloud-based commerce solutions offering:

+ Mid-size, enterprise Retailers and Brands a Single Platform to drive unified online and in-store customer experiences + Flexible, open and globally available solution on Microsoft Azure

Meet Modern Retail Expectations Without Re-platforming

INVESTOR PRESENTATION 21

Main Product Offering

Mobile Store Fulfillment Digital Commerce Experience Mgmt (DCXM) Commerce OrchestrationTM Platform

The API-first commerce platform that makes

• mnichannel retail work

A cloud platform that enables leading brands to create unique shopping experiences for any channel, device, or application.

Create engaging shopping experiences for your customers that convert to more sales

Cloud-based experience management that works with our Commerce OrchestrationTM Platform to deliver tailored web and mobile shopping experiences for your customers.

Turn your stores into local fulfillment centres

Make all your inventory accessible online, and leverage your local stores to ensure customers get the products they want, when and where they want them.

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Target market: $9,4B world-wide spending on digital commerce platform software by 2020 E-Commerce CAGR: >15% over the next five years (1) Current Trends: Moving to Cloud and API-First “headless” platforms, enabling personalized and “Experience Commerce” Geographical reach: World-wide

(1)Source: Gartner Report, “Magic Quadrant for Digital Commerce 2018.”

Addressable Market Size

INVESTOR PRESENTATION 23

DigitalCommerce-Initiatives

Expand market penetration

+ Omnichannel Order Management + Mobile Store Fulfilment + Commerce Orchestration Platform

Pursue sales & marketing investments in order to grow sales Build an ecosystem of partners to accelerate growth Platform investments aligned with our growth strategy Team with InterTrade’s sales force to enable cross-selling

INVESTOR PRESENTATION 24

Enabling Top Brands

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Financial Highlights

First Quarter FY2020 ended June 30, 2019

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Operations focused on B2B businesses. Revenue reached $20,2M

+ B2B revenue grew 3,4% to $16,8M

Adjusted EBITDA of $4,1M

+ 20% margin

Adjusted Profit(1) $1,3M

+ 0,09 $ / share

Net cash position of $3,9M as at June 30, 2019.

Highlights Q1- FY2020

(1) Excluding a loss on disposal of assets of $0,3M.

INVESTOR PRESENTATION 27

FY2020 FY2019 Q1 Q1 12 months Revenues

+ B2B Platforms + B2C Marketplaces

$20,2M

$16,8M $3,4M

$21,1M

$16,3M $4,8M

$83,1M

$66,1M $17,0M

Adjusted EBITDA

+ Margin

$4,1M

20,0%

$5,3M

24,9%

$20,7M

24,9%

Adjusted Profit

+ Per share

$1,3M(1)

$0,09

$ 2,4M

$0,16

$9,5M(2)

$0,64

Cash flow from operations $1,0M $2,4M $12,7M

In Millions of CAD $ except percentages & per share amount

(1) Excluding a loss on disposal of assets of 0,3M$ Q1-FY2020. (2) Before impairment of assets held for sale, net of related taxes of $35,1M

Financial Highlights

INVESTOR PRESENTATION 28 In Millions of CAD$

Quarterly Results

21,1 20,3 20,9 20,8 20,2 5,3 6,6 5,3 3,5 4,1 2,4 3,2 2,9 1,0 1,3

25% 33% 25% 17% 20%

Q1-FY19 Q2-FY19 Q3-FY19 Q4-FY19 Q1-FY20

Revenues Adjusted EBITDA Adjusted Profit EBITDA Margin %

(1)

(1) Before impairment of assets held for sale, net of related taxes of $35,1M. (2) Excluding a loss on disposal of assets of 0,3M$.

(2)

INVESTOR PRESENTATION

North American location Ethical and diversified business sectors Strong business models

+ Recurring | Transactional revenues + Sustainable competitive advantage + AI oriented

Web technology Acquisition target

+ Needed to complete / improve our offering + Aligned to take advantage of our resources (Technical, Financial, HR)

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M&A Guidelines

INVESTOR PRESENTATION 30

Paul Bourque Acting CEO & Chief Financial Officer Mark Eigenbauer Vice President, US Operations Catherine Roy Vice president, Operations & Strategy Jean-Michel Stam Vice President, Canadian Operations Hélène Hallak Vice President, Corporate Development, Human Capital & Legal Affairs Suzanne Moquin Vice President, Consumers Solutions Andreanne Simon President, InterTrade Inc. Camil Rousseau Vice President, Research & Development André Leblanc Vice President, Marketing Stéphane Anglaret Vice President, Technology Louis Fournier, President, Orckestra Technologies Inc.

Management Team Board of Directors

Gilles Laporte Chairman Philippe Duval First Vice President & C.O.O., Réseau Sélection André Gauthier President, André Gauthier Holding Inc. Gilles Laurin Director of Corporations Catherine Roy Vice president, Operations & Strategy Jean-François Sabourin President and CEO, JitneyTrade Inc. Natalie Larivière President, Yuma Strategies Viviane Trudel Founder & President of Metix Inc., Metix Capital Inc. and B-CITI Solutions Inc.

INVESTOR PRESENTATION

MEDIAGRIF INTERACTIVE TECHNOLOGIES INC. 1111 St-Charles Street West East Tower, Suite 255 Longueuil (Quebec) Canada J4K 5G4

www.mediagrif.com

Toll Free: 877 677-9088 Phone: 450 449-0102 Fax: 450 449-8725