transact in the digital economy · global employee workforce. as at february 12, 2019. created in...

INVESTOR PRESENTATION

F E B R U A R Y 1 2 , 2 0 1 91

TRANSACT IN THE DIGITAL ECONOMY


Forward-looking statementThis document contains certain forward-looking statements with respect to the Company. Theseforward-looking statements, by their nature, necessarily involve risks and uncertainties that couldcause actual results to differ materially from those contemplated by these forward-lookingstatements. We consider the assumptions on which these forward-looking statements are based tobe reasonable, but caution the reader that these assumptions regarding future events, many ofwhich are beyond our control, may ultimately prove to be incorrect since they are subject to risksand 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 applicablesecurities 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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Our Mission

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Albany, New York Longueuil, Canada

Laval, Canada

Shenzhen, China Atlanta, Georgia

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Company Overview

Global EmployeeWorkforce

as at February 12, 2019

Created in 1996, Public since 2000, MDF.TO

1996Connecting buyers & sellers through various platforms

525

$23,4M*$80,9M

FY 2018Revenue & Adjusted EBITDA*

Quarterly dividendper share

$0,10 Market Capitalisation

as at February 12, 2019

$159M

*FY 2018 Adjusted EBITDA includes $2.0 M of non recurring costs

INVESTOR PRESENTATION 5

World-wide Locations

Longueuil, CanadaLaval, Canada Ottawa, Canada Albany, New York

Copenhagen, Denmark Atlanta, GeorgiaShenzhen, China


Historical Results

53,8 60,7 65,4 70,2 73,0 77,7 80,9

FY12 FY13 FY14 FY15 FY16 FY17 FY18

Revenue

17,4

25,2 24,327,5 28,6 28,6

23,4


Adjusted EBITDA

$12,3

$18,0$22,2 $24,1 $22,3 $23,7

$17,9


Cash flow from Operations

$0,58 $0,69

$0,97 $0,80

$1,00 $1,05 $1,06

$0,48

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Earnings per Share

*FY 2018 Adjusted EBITDA includes $2.0 M of non recurring costs

2018 EPS includes a non-cash, non-recurring income tax expense of $1.4 million ($0.09 per share) following the U.S. tax reform enacted on Jan.1 2018.

*


FY-2019 Focus


UNIFIED COMMERCE MARKETPLACES

DIGITAL COMMERCE

SUPPLY CHAIN COLLABORATION

AUTOMATIVE AFTERMARKET

SUPPLY BASE MANAGEMENT

CONTRACT MANAGEMENT

STRATEGIC SOURCING

ONLINE RECRUITING

ONLINE DATING

SOURCING CLASSIFIED ADS

ELECTRONIC COMPONENTS

DIAMONDS & JEWLERY

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Our Solutions


Canada• 2,000 buyers• 70,000 suppliers• Strong public &

private presence across Canada

90% recurring

USA• 1,200 agencies• 63,000 suppliers• Presence in 30

States

90% recurring

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CAD/USA• 40+ clients• Contract Life cycle

management solutions

• Cross selling & Integration opportunities

82% recurringRevenue type:

Strategic Sourcing: Main Brands


Strategic Sourcing

• RFx:

• Creation

• Management

• Publication

• Bid evaluation

• Award publication

• Vendor database

• Vendor qualification

• Performance management

• Vendor certification

• Repository

• Alert

• Contract creation

• Requisitions management

• Approval workflows

• Data cleansing

• Categorization

• Analytics

• Notification

• Dashboard

• Decision Support

SourcingSupply Base

ManagementContract

ManagementSpend

Analysis


Strategic Sourcing : Growth Initiatives

Implement value added Supplier Services

Contract ManagementGrowth

Increase Buyer Content


Supply Chain Collaboration

Unique Combined Offering• Private Catalogue

• Business Network (EDI VAN Tier-1)

• 90%+ Recurring revenues (75% US$)

• 4,100+ Retailers & Suppliers

Automotive

Healthcare

Apparel & General MerchandiseEnable trading relationships between retailers and manufacturers


Our solutions accelerate time-to-market, with richer and more standardized product data, that retailers can quickly promote on any sales channel, especially online.

Supply Chain – Growth Initiatives

• Introduce multi-retailer Web EDI solution for small vendors

• Implement product data compliance and managed services practice to clients

• Support retailers addressing the challenges of the digital transformation with new value added services


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


Digital Commerce Experience Mgmt (DCXM)

Mobile Store Fulfillment

Commerce OrchestrationTM

Platform

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Main Product Offering

The API-first commerce platform that makes omnichannel retail workA 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 salesCloud-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.


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


Retail & Brand Manufacturing enabling top brands


Helping Quebecers during key life events & moments

• Smarter way to Buy & Sell goods and services

• Manage your Career & find your next Job

• Find Love & build lasting Relationships

B2C Marketplaces


Because of its product variety, availability and price sensitive nature Marketplaces dominate the reordering and repeat purchases experience

regardless of where the initial purchase was made.

B2C Marketplaces – Growth InitiativesBroadening reach

• English version & Freemium model• Mass media & Digital advertising

Optimizing engagement• Personalisation: From Search to Propose with AI & personalized propositions• Real time Messaging between buyers & sellers• Increased focus on verticals such as Automotive & Housing

Monetizing engagement• Internalized advertising for enhanced control over all channels to optimize

revenues• Focus on optimizing conversion rates for value added products & services


Sales Enhancer

#1 communication tool chosen by 70% of the

interested buyers

Data-driven and customer behaviour

oriented

Marketplace leads for Fulfillment

Data-driven decision-making process with a high focus on ROI for product development as well as sales and marketing initiatives.

Customer-focused experience tool to generate leads and engagement with sellers

Premium Automotive, Housing & Finance product and services providers trust us.


Considering the competitive labour market, our priority is to focus oncandidates, and engage them during their ongoing career path.

B2C Marketplaces – Growth Initiatives

Broadening services to better accompany employers within a particularly competitive market

• Recruiting Assistant services : Search and pre-qualify candidates for clients• Training : new partnership allowing us to offer employers training resources

for their employees, helping with onboarding and retention

Enabling candidates• Personalisation: From Search to Propose with AI & Personalized job offers• Training: Career path support with robust learning and training offer


Professional path enhancer

More than a job board

Data-driven and candidates behaviour

oriented

BroadeningReach

Data-driven decision-making process with a high focus on ROI for product development as well as sales and marketing initiatives

Beyond a simple job board, our focus is to become an active source for candidates in the management of their career

Multi-channel strategy to increase exposure of our content and maximize number of job applicants


Financial Highlights

Third Quarter FY-2019 ended December 31st, 2018


Financial Highlights FY2019

Periods ending December 31st, 2018

ThreeMonths

Nine Months

Revenues $20,9M + 2,1%

$62,3M + 3,0%

Adjusted EBITDA $5,3M $17,2M- Margin 25,3% 27,6%

Profit $2,9M $8,5M- Per share $0,19 $0,57

Cash flow from operations $2,6M $7,7M

In M of Canadian $ except percentages & per share amount


Quarterly Results

In M of Canadian $

20,5 20,5 21,1 20,3 20,9

6,1 5,6 5,36,6

5,31,0

2,1 2,4 3,2 2,9

30% 27% 25%33%

25%

Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19 Q3-FY19Revenues Adjusted EBITDA Profit Adjusted EBITDA Margin


*LTM Adjusted EBITDA as per lenders agreement, net debt as of December 31, 2018 & accordion feature subject to lenders approval

Financial Position

• Healthy balance sheet

• Strong adjusted EBITDA margin

• High cash flow from operations

• Net debt / adjusted EBITDA @ 0.6X*

• Liquidity of $66M + accordion feature of $40M*


• 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)

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M&A Guidelines


Ownership

• 14,8 million shares outstanding

• Alignment of interests− Directors & Officers own 28% of all shares o/s− Claude Roy, President & CEO, currently holding 24%


Claude RoyChairman and CEO

Gilles LaurinDirector of Corporations

Philippe DuvalFirst Vice President & C.O.O.,Réseau Sélection

Catherine RoyPresident,Gestion Catsachar Inc.

André GauthierPresident,André Gauthier Holding Inc.

Jean-François SabourinPresident and CEO,JitneyTrade Inc.

Gilles LaporteDirector of Corporations

Natalie LarivièrePresident , Yuma Strategies

Viviane TrudelFounder & President of Metix Inc.,Metix Capital Inc. and B-CITI Solutions Inc.

Claude Roy President and Chief Executive Officer

Mark Eigenbauer Vice President, US Operations

Paul BourqueChief Financial Officer

Jean-Michel StamVice President, Canadian Operations

Hélène Hallak Vice President and General Counsel

Suzanne MoquinVice President, Consumers Solutions

Andreanne SimonPresident, InterTrade Technologies, Inc.

Camil RousseauVice President, Research & Development

André LeblancVice President, Marketing

Stéphane Anglaret Vice President, Technology

Management Team

Board of Directors


MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

1111 St-Charles Street West East Tower, Suite 255Longueuil (Quebec)Canada J4K 5G4

www.mediagrif.com

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

transact in the digital economy · global employee workforce. as at february 12, 2019. created in...

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