Investor Presentation MDF.TO Summer 2020
Forward-looking These assumptions include, Statement without limitations: This document contains certain forward- No significant change in the current looking statements with respect to the value of CAD$ vs. US$ Company. These forward-looking statements, by their nature, necessarily involve risks and No significant increase or decrease uncertainties that could cause actual results to in revenues and operating expenses differ materially from those contemplated by these forward-looking statements. We Stable market conditions 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. 2 MDF.TO CONFIDENTIAL
COVID-19 has accelerated global shift to Digital Commerce Recent 50% surge in eCommerce revenues demonstrate accelerating growth trajectory. Shift is permanent. Mediagrif is a key global Mediagrif is well positioned player in Digital Commerce to capitalize on this trend Over 200,000 vendors on its core platforms Transforming into SaaS business with – Over $15B of transactions annually 79% Recurring, High Margin Revenue Free cash flow & Huge fragmented & strong balance sheet consolidating markets 3 MDF.TO CONFIDENTIAL
Ready for superior growth - Timeline Launch Improved Arrival of new of 5-year Shift to balance sheet - Management Strategic SaaS model $16M bought Team Plan deal FALL 2019 May 2020 Clarification of our offer and Sales k-eCommerce operational/ Transformation acquisition reorganization Plan by platform 4 MDF.TO CONFIDENTIAL
Improving quality of revenue Deferred Net New Clients in 8 Revenue: months $17.8M 220+ MDF.TO CONFIDENTIAL
5 Year Trajectory $250M Revenue 20-25% $80M Ebitda Margin 40+ 8%-12% Rule Of 40 $1B 13 Market Cap $100M 5 MDF.TO CONFIDENTIAL
Platforms Substitute - Mediagrif Platform % Rev Focus Offer Market ARR Competitors Disrupt Advantage Periscope Breadth of eProcurement software Bonfire Strategic Public Entities and offering and 42 Growth and eTendering with $29M eSolutions Fragmented Sourcing Large Enterprise Scope of 200k participants Negometrix Network Mercell Enterprise and Adobe Price, Speed, mid-sized retail – End to End eCommerce Unified Commerce Tools Oracle Flexibility, 38 Growth for mid-market to Growing $23M Commerce Elastic Path Salesforce richer feature Enterprise specialization SAP set in groceries Marketplaces for End-User, some Diamonds, electronic Fragmented Fragmented Established eMarketplaces 20 Earnings marketplaces local, N/A parts, automotive, jobs, by vertical by vertical brands other int’l dating 6 MDF.TO CONFIDENTIAL
Strategic Sourcing
Strategic Sourcing Platform • SaaS eProcurement platform connecting 3,000 buyers to 200,000 suppliers • One of the largest supplier networks in North America Market – US$10B market by 2023 with +10%CAGR (1), massive market opportunity Organic Growth Plan adding more US sales capabilities and cross-sell/up-sell resources for current base Investing in new AI features to extend product for cross-selling & increase contract stickiness M&A Growth Plan – Fragmented market ready for consolidation - Many accretive US acquisitions KPIs : 85% ARR – $2.4M MRR – 85% GM – 5% CAGR (1) Source: MarketWatch – Procurement Software Market Valuation - October 15, 2018 7 MDF.TO CONFIDENTIAL
Strategic Sourcing Platform Current customers Recent Notable Wins 3,000 buyers and 200,000 supplier network National Health Service - UK, Colorado Department of Transportation, San Diego Association of Governments + 150 new active buyers 8 MDF.TO CONFIDENTIAL
Strategic Sourcing Platform Footprint 9 MDF.TO CONFIDENTIAL
Strategic Sourcing MRR Growth MDF.TO CONFIDENTIAL
Unified Commerce
Unified Commerce Platform • End -to-end seamless omnichannel ecommerce platform • Extends from enterprise to SMB • Proven agility for rapidly evolving eCommerce landscape • 52% surge with COVID -19 Pandemic Market – US$ 10.4B US eCommerce market by 2025 (1) with 12-15% CAGR, B2B Valued at US$ 12.2T globally (2) Organic Growth Plan Expanding sales capabilities with a focus on US markets & cross-selling Product Development: Improved deployment speed, agility, scalability & feature set Adding AI recommendation features, and more advanced BI. M&A growth plan – Acquiring to further disrupt legacy players like Oracle, SAP, Adobe & consolidate competitors e.g. k-eCommerce KPIs: 60% ARR - $1.9M MRR - 26% CAGR (1) Source: Research & Markets, Digital Commerce Software Market – Growth, Trends, and Forecast (2020-2025), Jan 2020 (2) Source: Research & Markets, Global E - commerce Software Market Size…and Forecasts, 2018 To 2026, Sept 2018; 11 MDF.TO CONFIDENTIAL
Unified Commerce Platform Current customers 650+ clients including SQDC, Sobey’s , IGA, Black&Decker, Subway, BRP, Groupon, Sports Experts. Recent Wins 67 additional SMBs added to client list + 10 significant Enterprise wins including a major grocer, retailer and veterinary products provider. Total MRR value $150K and $3.5M total contract value. 12 MDF.TO CONFIDENTIAL
Unified Commerce MRR Growth MDF.TO CONFIDENTIAL
Comparable Valuations (2020) Market Cap – Revenue LTM – EBITDA LTM – Enterprise Value EV/ Sales EV/ EBITDA Company – CA$ CA$ CA$ CA$ Shopify Inc. 132.3B 129.3B 2.4B (189M) 52.8x - Kinaxis Inc. 4.8B 4.5B 281M 54M 16.1x 83.2x SPS Commerce 3.5B 3.2B 406M 84M 7.9x 37.9x Lightspeed POS Inc. 3.2B 2.9B 171M (59M) 17.2x - Tecsys Inc. 332M 340M 98M 7M 3.5x 49.1x Mediagrif 104M 102M 75M 8.5M 1.3x 11.9x Note: Market Capitalization as of June 17, 2020; Exchange rate 1.3580 CAD/USD spot rate as of June 18, 2020; Revenue and EBITDA multiples based on LTM financials Data sources: S&P Capital IQ Mergermarket; CRM - Customer Relationship Management; SEC – Security; PYMT - Payment/Financials ; ISS - Industry Specific Software; 14 HCM - Human Capital Management; ERP - Enterprise Resource Planning; SCM - Supply Chain Management; IS - Internet Software. MDF.TO CONFIDENTIAL
Capital Markets – June 2020 Ownership Summary Market Cap (in MM) 104.0 Public Shares Outstanding 17,960,870 Enterprise Value (in MM) 101.6 Management/ Insiders Current Share Price (6/29/20) $5.80 Institutions 52 Week High/Low $7.71 / $2.22 VC/ PE Firms (>5% Consensus Target $7.20 stake) Stock Chart Analyst Coverage 9,00 ,60mm Nick Corcoran 8,00 ,50mm 7,00 Volume Share Price 6,00 ,40mm 5,00 Maher Yaghi ,30mm 4,00 3,00 ,20mm 2,00 Amr Ezzat ,10mm 1,00 0,00 0 Nick Agostino Richard Tse 15
Capital Markets
Board of Directors Gilles Laporte Catherine Roy Chairman of the Corporation Vice President, Transformation, Mediagrif Interactive Technologies Inc. Director of corporations President, Gestion Catsachar Inc. Luc Filiatreault Jean-François Sabourin President and C.E.O., Mediagrif Interactive Technologies Inc. President and C.E.O., JitneyTrade Inc. Philippe Duval Natalie Larivière First Vice President & C.O.O., Groupe Sélection President, Yuma Strategies Gilles Laurin Zoya Shchupak CPA, CA Consultant, Strategy and M&A, Sagard Holdings ULC Director of Corporations Management Team Luc Filiatreault Camil Rousseau Chief Technology Officer President and Chief Executive Officer Paul Bourque Hélène Hallak Chief Financial Officer Vice President, Corporate Development and Chief Legal Officer Catherine Roy André Leblanc Vice President, Transformation Vice President, Marketing and Communications Julie Bélanger Mark Eigenbauer Vice President, Human Resources President, Strategic Sourcing Andreanne Simon Jean-Michel Stam President, Supply Chain Collaboration President, e-Marketplaces Louis Mousseau 16 President, e-Commerce 18 MDF.TO CONFIDENTIAL
Reasons to Invest Mediagrif is already a major Digital Commerce platform, managing 80% recurring $Billions annually for revenue with high COVID-19 has gov't, enterprise, and margins, low accelerated a global SMBs churn and free shift to Digital cashflow Commerce Disrupting the Positioned to Unified Commerce dominate US$10B space with a path to Strategic Sourcing dominate groceries market vertical Transforming into a SaaS growth company like Shopify and Lightspeed, but with free cash flow and significantly lower valuation 17 MDF.TO CONFIDENTIAL
Questions?
Mediagrif Interactive Technologies Inc. Mediagrif.com 1111 St-Charles Street West Toll Free 877 677-9088 East Tower, Suite 255 Phone 450 449-0102 MDF.TO Longueuil, Quebec Canada J4K 5G4 Fax 450 449-8725
Recommend
More recommend
