INVESTOR PRESENTATION November 2019 “Fluid transmission and use of data to power today’s commerce ecosystems.”
Forward-looking These assumptions include, Statement without limitations: + This document contains certain forward-looking No significant change in the current value statements with respect to the Company. These of CAD$ vs. US$ forward-looking statements, by their nature, + No significant increase or decrease in necessarily involve risks and uncertainties that could revenues and operating expenses cause actual results to differ materially from those + contemplated by these forward-looking statements. Stable market conditions 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. 2
Company History and Key Milestones $25 Claude Roy - CEO (1) Before non-recurring items 3
Financial Highlights Total Revenues Adjusted EBITDA of Adjusted Profit (1) Net Cash Position of $18,2M $1,7M $3,7M $0,6M B2B: $16,9M up 5,0% 21% Margin $0,11 / share as at September 30, 2019 B2C: $1,3M FY2020 FY2019 In Millions of CAD $ Except percentages & per share amount Q2 Q2 12 MONTHS Rev even enues es $18,2M ,2M $20,3M ,3M $83,1 ,1M + B2B Platforms $16,8M $16,1M $66,1M $17,0M + $1,3M $4,2M B2C Marketplaces Adj djust sted ed EBITDA $3,7 ,7M $6,6 ,6M $20,7 ,7M + Margin 20,3% 32,0% 24,9% Adj djust sted ed Pro Profi fit $1,7 ,7M (1) $3,2 ,2M $9,5 ,5M (2) 1) 2) + Per share $0,11 $0,21 $0,64 Cas ash Flow ow from om Operatio ations s $0,6 ,6M $2,7 ,7M $12,7 ,7M (1) Excluding favorable 0.2 M $ adjustment on sale of a subsidiary (2) Before impairment of assets held for sale, net of related taxes of $35,1M 4
B2B Businesses Cloud-based CAGR: 9% SaaS Model $66,1 $61,2 $54,9 80%+ + ARR $48,1 50% U.S. $43,4 SOURC RCING ING 900+ + Buyers 150,000 ,000 Suppliers COMME MERC RCE 2015A 2016A 2017A 2018A 2019A 620+ + eCom Clients In millions of CAD $ 5
The New Mediagrif 6 6
Our Mission We enable the flow of commerce 7
Our Vision Unify our strengths to create a fast-growing cloud-based commerce technology company 8
Enabling the Flow of Commerce Supporting over $15B in commercial transactions Value creation across the entire commercial ecosystem Power erin ing a full ll range ge of commerce ce ecosy cosyst stems ems via a three ee key y opera eration tional al pill llars ars: Strategic Sourcing - Growth B2B Marketplaces - EBITDA Unified Commerce - Growth Sourcing Diamonds & Jewelry Supply Chain Collaboration Supply Base Management Electronic Components Digital Commerce 9 Contract Lifecycle Management Computer, IT & Telecom Components Automotive Aftermarket
Strategic Sourcing Overview Simplifying the sourcing process for buyers and giving suppliers access to the largest database of contracts VALUE CREATION NA coverage with leadership position in Canada and massive • growth potential in the U.S. Expansive customer and supplier base to grow from • 900+ purchasing agencies & 120,000+ supplier network • • Wealth of data to monetize Vital Stats Strong best-of-breed CLM solution well positioned to capitalize on • rapidly expanding market 85% ARR • • US$ 10B market by 2023 with +10% CAGR • Early adoption by public entities, growing use in IT, communications, retail, health GROWTH VECTORS and automotive • • Increase ARPU of existing customer base (share of wallet) AI and automation present key opportunities for accelerated value creation Monetize data with AI + automation with value-added Supplier • and operational efficiencies Services • CLM market set to double from US$1B Strategic acquisitions to scale in the U.S. • to US$2.5B Cross sell CLM to current customer base, private SMBs and • enterprises Source: MarketWatch – Procurement Software Market Valuation - More aggressive G2M • October 15, 2018 Source: Research & Markets - Contract lifecycle management software market: Global industry trends, Share, Size, Growth, 10 Opportunity and forecast 2019-24 - February 2019
Unified Commerce Overview Driving commerce by connecting suppliers to retailers and retailers to consumers VALUE CREATION Full range offering: B2B and B2C capabilities covering mid to upper • markets Ability to service broad needs of customers (front-end, back-end) • 625+ clients to grow from, including top NA brands • Vital Stats 23 existing ecosystems + 5,000 paying suppliers • Combined 77% ARR • eCommerce • US$11B market by 2023 with 22% CAGR GROWTH VECTORS • Only 28% of top NA retailers have unified platforms, will grow to 81% by 2021 Increase ARPU of existing customer base (share of wallet) • • Early adoption by retailers, manufacturers Expand client base with more aggressive GTM • and distributors entering direct-to-consumer models Cross-selling between eCom and Supply Chain client base • Supply Chain - EDI • Strategic acquisitions to accelerate scale in the U.S. • US$1.4B NA market by 2024 with 11% CAGR • Early adoption by retail, growing use in Healthcare, Automotive, Financial and High- Source: Reuters - Omnichannel Retail Commerce Platform market - February 20, 2019 Source: Retail Touchpoints - 81% of retailers will deploy unified commerce platforms by 2020 - February 5, 2018 Tech Source: Acquire Market Research – February • Source: Global Electronic Data Interchange (EDI) Software Market 2019 by Company, Regions, Type and Application, Disruptive new commerce models driving Forecast to 2024 11 exponential growth of supply chain EDI
eMarketplaces Overview Secure eMarketplaces connecting buyers and sellers to create transaction efficiency, productivity and profit VALUE CREATION Generate significant margins to help fuel transformation • “Neutral” multi -platform marketplaces attracting both buyers • AND sellers Well established with prominent industry positions in each vertical • 3600 high ARPU customers – over 90M parts and accessories – • 100K+ newsletter subscriptions Models less prone to disruption with high margins • Vital Stats 85% ARR • Maintain existing high value-add services • • Global B2B eMarketplaces sales set to hit $3.6 trillion by 2024 • Online will represent 30% of all worldwide B2B sales OPERATIONAL FOCUS • Presently leveraged mostly by SMBs, with next adoption wave from large businesses Maximize selling and buying opportunities for members • Increase ARPU and maximize ALV of existing membership base • Continued efforts to solidify and improve tech platforms • More focused efforts on sales activities • Source: DigitalCommerce360.com – iBE – Q4 2019 12
Massive Market Opportunity 22% CAGR 10% CAGR eCommerce Strategic Sourcing US$ 11B Market US$ 10B Market By 2023 By 2023 Supply Chain - EDI US$ 1,4B Market By 2024 11% CAGR 13
Solid Customer Base to Build on and Cross-sell …and serving a network of over 150,000 suppliers across North America 14
Comparable Valuations Market Cap – CA$ Enterprise Value – CA$ Company xRevenues xEBITDA 15,5B 17,9 x4,7 x15 Opentext 2,8B 2,5 x10,9 x63,4 Kinaxis 2,6B 2,4 x6,5 x34,8 SPS Commerce N/A US$540M x18 N/A Scout RFP 89M 96 x1.2 x5.9 Mediagrif Data sources: S&P Capital IQ, Mergermarket; CRM - Customer Relationship Management; SEC – Security; PYMT - Payment/Financials ; ISS - Industry Specific Software; HCM - Human 15 Capital Management; ERP - Enterprise Resource Planning; SCM - Supply Chain Management; IS - Internet Software.
Well Positioned for Accelerated Growth SOLID D FINANC NANCIA IALS ALLOW US TO INVES EST T IN FAST-GROWING ING SECTORS Pro roven en exist istin ing Grow sales teams to sell more of te tech ch + new w prod roducts cts what we have w/ strong focus on U.S. in develo elopme pment Strong ong custom omer er Increase ARPU + monetize data bas ase + upsell and cross-sell Strateg egic ic acq cquisiti ition + Tech plan an + Customers - revenues + GTM capabilities RECEN ENT T ACQUIS ISITIO ITION Tech and service offer complementary to existing eCom capabilities Addition of 600+ clients, 60% U.S. Based Addition of 20+ GTM resources to bolster sales capabilities 16
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