INVESTOR PRESENTATION. Focus on Organic Growth

Transcription

1 INVESTOR PRESENTATION Focus on Organic Growth September 14, 2016

2 DISCLAIMER

3 This document contains certain forward-looking statements with respect to the Company. These forwardlooking 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 limitation: + No significant change in the current value of CAD$ vs. US$ + No significant increase or decrease in revenues and operating expenses + Stable market conditions INVESTOR PRESENTATION 3

4 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 $273M* + Dividend $0.10 / quarter * (as at August 16, 2016) INVESTOR PRESENTATION 4

5 LONG TERM VALUE CREATION METRICS 47,1 53,8 Revenue 60,7 65,4 70,2 73,0 15,1 Adjusted EBITDA 27,5 28,6 25,2 24,3 17,4 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 Cash flow from Operations Earnings per share 10,3 12,3 18,0 22,2 24,1 22,3 0,58 0,69 0,97 0,80 1,00 1,05 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 (in millions of CA$, except per share amounts.) INVESTOR PRESENTATION 5

6 OUR MISSION Provide innovative and efficient E-commerce solutions

7 OUR BUSINESSES CONSUMERS E-PURCHASING SUPPLY CHAIN VERTICAL E-COMMERCE SOLUTIONS (JOB BOARD) (CLASSIFIED ADS) (ONLINE DATING) 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 7

8 FY2017 FOCUS ON ORGANIC GROWTH

9 FY2017 FOCUS ON ORGANIC GROWTH Invest in highest growth potential platforms + E-Purchasing + Supply Chain + Consumers INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 9

10 E-PURCHASING OFFERING E-purchasing Market: Double digit growth market* Merx (Canada): 2,000 buyers, 70,000 suppliers BidNet (USA): 1,100 agencies, 57,000 suppliers FY2016: 10%+ Organic growth 55% Recurring revenues *(Forrester Research) INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 10

11 E-PURCHASING GROWTH STRATEGY A B Focus on on-boarding buying organization & suppliers + Grow existing customers potential + Increase sales & marketing activities Access to new productivity tools + Vendor qualification + Bid evaluation + Contract management + Business intelligence tools INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 11

12 CONTRACT LIFECYCLE MANAGEMENT Essential piece for MERX & BidNet for product evolution DOCUMENT DEVELOPMENT RFP BIDS EVALUATION AWARD CONTRACT MANAGEMENT PERFORMANCE MANAGEMENT VENDOR QUALIFICATION INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 12

13 ASC ACQUISITION + In line with our growth strategy + ASC assets purchase, $18.5M, May 31, Operate in fast growing market (15% CAGR last 5 years*) C.L.M.: From nice to have to need to have + Generate 70% of recurring revenues (50% in USD) + Provide cross selling, integration opportunities *(Forrester Research see appendix) INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 13

14 SUPPLY CHAIN OFFERING Apparel & General Merchandise Unique Combined Offering Private Catalogue EDI Network Tier-1 VAN FY2016: 11% Organic growth 90%+ Recurring revenues (75%+ in USD) 3,000+ Retailers & suppliers Automotive Healthcare INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 14

15 SUPPLY CHAIN GROWTH STRATEGY Increase focus on product data synchronization + More accurate, more secure real time data to buyers + More automation between retailers/suppliers Cross sell between our EDI Network & Catalogue + Upsell new services Promote our offering to SMBs + Increased demand for supply chain solutions INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 15

16 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 FOCUS ON ORGANIC GROWTH 16

17 CONSUMER GROUP GROWTH STRATEGY 1 2 Broaden our service offerings as it relates to audiences needs: + LesPAC: Provide best in class shopping experience + Jobboom: Broaden footprint within the talent acquisition process + Réseau Contact: Introducing matching features to online personals Revenue diversification 3 Increase marketing & promotion INVESTOR PRESENTATION FOCUS ON ORGANIC GROWTH 17

18 PROCÈS-VERBAL FINANCIAL DE LA RÉUNION HIGHLIGHTS First quarter ended June 30, 2016 DU 2 JUIN 2016

19 Q1 FY2017 HIGHLIGHTS First quarter ended June 30, ASC acquisition completed May 31, 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 * Includes $0.1M of non recurring costs INVESTOR PRESENTATION FIRST QUARTER ENDED JUNE 30,

20 QUARTERLY RESULTS 17,7 18,0 18,5 18,8 19,0 42% 43% 37% 35% 37% 6,5 7,5 8,0 6,6 7,0 5,1 4,9 3,4 2,5 3,5 FY16-Q1 FY16-Q2 FY16-Q3 FY16-Q4 FY17-Q1 Revenues Adjusted EBITDA Profit Adjusted EBITDA margin (in millions of CA$) INVESTOR PRESENTATION FIRST QUARTER ENDED JUNE 30,

21 FINANCIAL POSITION + Healthy balance sheet / financial ratios + Strong adjusted EBITDA margin & cash flow from operations + Net debt / adjusted 1,06 time* + Liquidity of $49M + accordion feature of $40M* * At the end of June, accordion feature subject to lenders approval INVESTOR PRESENTATION FIRST QUARTER ENDED JUNE 30,

22 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 FIRST QUARTER ENDED JUNE 30,

23 OWNERSHIP + 15 million shares outstanding* Bought-back 818,000 shares in last two (2) years NCIB in place for an additional 250,000 shares No stock option plan (program terminated in 2009) + Alignment of interests Directors & Officers owns 28.2% of all shares Claude Roy, president & CEO, currently holding 23.1% + Team Focused on Creating Value + Disciplined & Prudent approach * July 2016 INVESTOR PRESENTATION FIRST QUARTER ENDED JUNE 30,

24 BOARD OF DIRECTORS AND EXECUTIVE OFFICERS

25 BOARD OF DIRECTORS Claude Roy Chairman and CEO André Courtemanche President and CEO VIAVAR Capital Michel Dubé Consultant André Gauthier President André Gauthier Holding Inc. MANAGEMENT TEAM 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 Gilles Laurin Chartered Accountant and Director of Corporations Catherine Roy Executive Search, senior consultant Décarie Recherche Gilles Laporte Director of Corporations Jean-François Sabourin President and CEO FinlogiK Inc. & JitneyTrade Inc. 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 INVESTOR PRESENTATION 25

26 APPENDIX

27 FORRESTER RESEARCH * INVESTOR PRESENTATION 27

28 MEDIAGRIF INTERACTIVE TECHNOLOGIES INC St-Charles Street West, Suite 255 Longueuil, Québec Canada J4K 5G4 Toll Free: Phone: Fax: