INVESTOR PRESENTATION INVESTOR CONFERENCE Laurentian Bank Securities April 6, 2017
DISCLAIMER
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 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
OUR MISSION Provide innovative and efficient E-commerce solutions
COMPANY OVERVIEW + Founded in 1996, public since 2000, MDF.TO + Workforce of 450 employees + Revenue $73.0M, Adj. EBITDA $28.6M, 39% (FY16) + Market capitalization $240M* + Dividend $0.10/quarter *as at March 30, 2017 INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 5
LONG TERM VALUE CREATION METRICS Revenue Adjusted EBITDA 73,0 70,2 65,4 28,6 27,5 60,7 25,2 24,3 53,8 47,1 17,4 15,1 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 Cash flow from Operations Earnings per share 1,05 1,00 24,1 0,97 22,2 22,3 0,80 18,0 0,69 0,58 12,3 10,3 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 (in millions of CA$, except per share amounts | CAGR: compound annual growth rate ) INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 6
OUR BUSINESSES (AUTOMOTIVE AFTERMARKET) (E-PURCHASING) (SUPPLY CHAIN) (CLASSIFIED ADS) (DIAMONDS & JEWELRY) (JOB BOARD) (E-PURCHASING) (WINE & SPIRITS) (ONLINE DATING) (CONTRACT MANAGEMENT) (ELECTRONIC COMPONENTS) STRONGEST GROWTH POTENTIAL INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 7
FOCUS ON ORGANIC GROWTH
FOCUS ON ORGANIC GROWTH Invest in highest growth potential platforms o E-Purchasing o Supply Chain o Consumers INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 9
E-PURCHASING OFFERING E-purchasing Market: Double digit growth market* Merx (Canada) : 2,000 buyers 70,000 suppliers BidNet (USA) : 1,100 agencies 60,000 suppliers Recurring revenues: ~ 55% *(Forrester Research, see appendix) INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 10
E-PURCHASING GROWTH STRATEGY A Monetize existing buyer relations through VAS + Bid Evaluation + Contract Management + Vendor Performance Management B Grab new business with Source-to-Contract + Develop the US enterprise market + Increase buyer stickiness through a broader offering INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 11
CONTRACT LIFECYCLE MANAGEMENT Essential piece for MERX & BidNet for product evolution Source-to-Contract DOCUMENT DEVELOPMENT RFP CONTRACT PERFORMANCE BIDS EVALUATION AWARD MANAGEMENT MANAGEMENT VENDOR QUALIFICATION INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 12
ACQUISITION + In line with our growth strategy + Operate in fast growing market* + Provide cross selling, integration opportunities + Generate ~ 70% of recurring revenues (50% in USD) + Asset purchase – May 31, 2016, $17.1M *(CAGR 2010-2015 of 15% according to Forrester Research) INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 13
SUPPLY CHAIN OFFERING Apparel & General Merchandise Unique Combined Offering Private Catalogue EDI Business Network (VAN Tier-1) Automotive 90%+ Recurring revenues (75% US$) 3,000+ Retailers & suppliers Healthcare INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 14
SUPPLY CHAIN GROWTH STRATEGY o Help retailers address the challenges of the digital transformation through our combined offering o Introduce Web EDI for small vendors who need to transact with retailers o Increase Sales & Marketing efforts Our solutions accelerate time-to-market, with richer and more standardized product data, that retailers can quickly promote on any sales channel, especially online. INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 15
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
CONSUMER GROUP GROWTH STRATEGY Increase platform content o Freemium model - March 1 st Monetize added content o New visibility tools Focus on SMB that wants to sell online More Content more Traffic more Leads INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH 17
CONSUMER GROUP GROWTH STRATEGY Evolution of the business platform to: o Provide additional tools for the job seeker o Improve recruitment process of the employer 18 INVESTOR PRESENTATION | FOCUS ON ORGANIC GROWTH
PROCÈS-VERBAL FINANCIAL HIGHLIGHTS DE LA RÉUNION DU 2 JUIN 2016 Nine months ended December 31, 2016
FY2017 HIGHLIGHTS – 9 MONTHS + Revenues of $57.7M | +7% − ASC revenues - 7 months $3.4M* + Adjusted EBITDA of $22.2M | 38% margin + Profit of $12,3M | $0.82 per share + Cash flow from operations of $15.5M * Net of the acquired deferred revenue adjustment to their fair value @ the acquisition date: $0.6M INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016 20
QUARTERLY RESULTS 19,5 19,3 19,0 18,8 18,5 43% 42% 37% 37% 35% 8,1 8,0 7,1 7,0 6,6 4,9 4,5 4,0 3,7 2,5 Q3-FY16 Q4-FY16 Q1-FY17 Q2-FY17 Q3-FY17 Revenues Adjusted EBITDA Profit Adjusted EBITDA margin (in millions of CA$) INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016 21
FINANCIAL POSITION + Healthy balance sheet + Strong adjusted EBITDA margin + High cash flow from operations + Net debt / adjusted EBITDA @ 0.8X* + Liquidity of $57M + accordion feature of $40M* *LTM Adjusted EBITDA, Net debt as at December 31, 2016 *Accordion feature subject to lenders approval INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016 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 | THIRD QUARTER ENDED DECEMBER 31, 2016 23
OWNERSHIP + 14.9 million shares outstanding* + Alignment of interests − Directors & Officers owns 28% of all shares o/s • Claude Roy, President & CEO, currently holding 24% *March 31st, 2017 INVESTOR PRESENTATION | THIRD QUARTER ENDED DECEMBER 31, 2016 24
BOARD OF DIRECTORS Claude Roy Gilles Laurin Chairman and CEO Chartered Accountant and Director of Corporations Michel Dubé Catherine Roy Consultant President Gestion Catsachar Inc. André Gauthier Jean-François Sabourin President President and CEO André Gauthier Holding Inc. FinlogiK Inc. & JitneyTrade Inc. Gilles Laporte Director of Corporations MANAGEMENT TEAM Claude Roy Suzanne Moquin President and Chief Executive Officer Vice President, Consumers Solutions Paul Bourque Jean-Michel Stam Chief Financial Officer Vice President, Canadian Operations Hélène Hallak Stéphane Anglaret Vice President and General Counsel Vice President, Technology Mark Eigenbauer Camil Rousseau Vice President, US Operations Vice President, Research & Development INVESTOR PRESENTATION 25
APPENDIX
FORRESTER RESEARCH * INVESTOR PRESENTATION 27
MEDIAGRIF INTERACTIVE TECHNOLOGIES INC. 1111 St-Charles Street West, Suite 255 Longueuil, Québec Canada J4K 5G4 Toll Free: 877 677-9088 Phone: 450 449-0102 www.mediagrif.com Fax: 450 449-8725
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