A u g u s t 2 0 1 9 2020 REFOCUSING ON B2B A u g u s t 2 0 1 9 1 INVESTOR PRESENTATION
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 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 2 INVESTOR PRESENTATION
Our Mission 3 INVESTOR PRESENTATION
Company Overview Created in 1996, Public since 2000, TSX: MDF B2B ecommerce solutions to private businesses, public sector organizations in North America & internationally Global employee force of 515 Proven track record of profitability 14,8 million shares outstanding $20,7M 25% $12,7M $83,1M FY2019 Revenue Margin (1) Cash flow from op’s FY2019 EBITDA (1) (1) FY 2019 Adjusted EBITDA includes $1,9 M of non recurring costs 4 INVESTOR PRESENTATION
Worldwide Locations Longueuil, Canada Albany, New York Laval, Canada Ottawa, Canada Shenzhen, China Copenhagen, Denmark Atlanta, Georgia 5 INVESTOR PRESENTATION
Company Platforms Strongest Growth Potential B2B Strategic Sourcing E-Sourcing E-Sourcing Contract Life Cycle Management Unified Commerce Automotive Aftermarket Supply Chain Collaboration Digital Commerce B2B Marketplaces Computer, IT & Telecom Electronics Components Diamonds & Jewelry Components B2C Marketplaces Held for sale Online Recruiting Online Dating Classified Ads Sold as at June 11, 2019 6 INVESTOR PRESENTATION
Historical Results Revenue Adjusted EBITDA 83,1 28,6 28,6 80,9 27,5 77,7 73,0 25,2 70,2 24,3 23,4 65,4 60,7 * 20,7 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19 *FY18 & FY19 includes $2.0 M & 1,9 MM of non recurring expenses respectively Cash flow from Operations Adjusted Earnings per Share $1,06 $1,05 $1,00 $0,97 $24,1 $23,7 $22,2 $22,3 $0,80 $18,0 $17,9 $0,64 $0,57 $12,7 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY13 FY14 FY15 FY16 FY17 FY18 FY19 2019 EPS is before non-cash impairment charge ($2.30 per share) on assets held for sale. In million of CAD $ except per share amount 7 INVESTOR PRESENTATION
Last 5 Years - Revenue from B2B & B2C B2C $66,1 $61,2 $54,9 $48,1 $43,4 $26,8 $24,9 $22,8 $19,8 $17,0 2015A 2016A 2017A 2018A 2019A B2B B2C CAGR: B2B 8,8% In million of CAD $ 8 INVESTOR PRESENTATION
FY 2020 Strategy Refocus operations towards the B2B businesses Seize market opportunities in the B2B markets + Investments in our sales force + Cross selling of our solutions Complete sales of the B2C marketplaces + LesPAC sold as at June 11, 2019 9 INVESTOR PRESENTATION
Areas of Focus 01 Strategic Sourcing + Sourcing + Supply Base Management + Contract Lifecycle Management (CLM) 02 Unified Commerce + Supply Chain Collaboration + Digital Commerce + Automotive Aftermarket 03 B2B Marketplaces + Diamonds & Jewelry + Electronic Components + Computer, IT & Telecom Components 10 INVESTOR PRESENTATION
Strategic Sourcing: Main Brands Canada USA CAD/USA • 1,000+ buying org. • 900 agencies • 40+ clients • 70,000 suppliers • 63,000 suppliers • Contract Life Cycle Management • Strong public & • Presence in 30 offering four SaaS private presence States editions in a multi- across Canada tenant private cloud environment Revenue type: 90% recurring 82% recurring 90% recurring 11 INVESTOR PRESENTATION
Strategic Sourcing: Solutions Contract Supply Base Lifecycle Spend Management Sourcing Management Analysis RFx Vendor Data Repository • • • • database cleansing Creation Alert • • Vendor Categorization • • Management Contract • • qualification Analytics creation • Publication • Performance • Notification Requisitions • • management Bid • management Dashboard evaluation • Vendor • Approval of • certification Decision Award • • workflows support publication 12 INVESTOR PRESENTATION
Strategic Sourcing: Growth Initiatives Increase Buyer Content Implement value added Supplier Services Cross sell CLM to current customer base, private SMB’s & enterprises 13 INVESTOR PRESENTATION
Unified Commerce: Main Brands Retailers Supply Chain Digital Connect with Collaboration Commerce suppliers and distributors to fulfill needs Suppliers Consumers Connect with consumers via Being able to several Seamlessly complete their channels to connect with shopping exp. drive sales retailers to regardless of drive sales channel 14 INVESTOR PRESENTATION
Supply Chain Collaboration B2B integration solutions increasing supply chain efficiencies between Retailers & Suppliers , by: + Connecting B2B trading communities + Exchanging business documents regardless of format (purchase orders, shipping notices, invoices) + Synchronizing eCommerce-ready product information (detailed, structured and compliant with industry standards) 15 INVESTOR PRESENTATION
Client Base Clients: 4,100 + Main industries: Apparel & General merchandise, Automotive, Healthcare & Food Geographic Location: 75% USA, 25% Canada Recurring revenue + 90% Profile: Retailers, Suppliers, Distributors, 3 rd party logistic partners EDI Business Network Electronic Product Catalogue Retailers 16 INVESTOR PRESENTATION
Main Product Offering EDI B2B Network UPC Product Catalogue Transport & Transform Data Synch Data, Sell Faster Source of truth for detailed & structured product data (to Automated Exchange of Supply Chain Business Documents GS1’s standards), consolidated & validated across all your such as: Purchase Orders, Advanced Shipping Notices & trading partners, for the use of retailers. Invoices, with hands-on managed/outsourced services. OEM solution partner of Boomi iPaaS solution Trading Community Enablement EDI Professional Services Connecting you to your partners, quickly Expanding your team capacity & skills Professional services to onboard & certify your community of Team of experts ready to offload extra work from your EDI trading partners, regardless of their EDI readiness. operations as well as train your workforce with new EDI skills. 17 INVESTOR PRESENTATION
Addressable Market Size Target Market: $1,9B USD worldwide by 2020 Market users: 2,5M companies using EDI B2B Networks CAGR: >13% over the next five (5) years Current Trends: Ecommerce growth and omnichannel retail are driving investments and demand from retailers and their trading partners to further automate supply chain processes for speed, agility and efficiency. Geographical Reach: Worldwide, with 60% of demand in N.A. Sources: Dart - Electronic Data Interchange (EDI) Global Market – 2016 Gartner - Market Guide for Integration Brokerage (December 2016), Market Watch - Electronic Data Interchange (EDI) Software Market Size – May 23, 2019 18 INVESTOR PRESENTATION
Supply Chain – Growth Initiatives Actively target new retailers in GM&A* in North America + Offering both Catalog & Network solutions Grow share of wallet of existing retailers + Cross-sell within our evolving offering Grow share of wallet of existing large base of catalog clients + Web EDI solution & managed EDI services Diversify revenue base with new clients and resell partners + Go beyond GM&A industries with our Network offering * General Merchandise & Apparel 19 INVESTOR PRESENTATION
Digital Commerce Meet Modern Retail Expectations Without Re-platforming 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 20 INVESTOR PRESENTATION
Main Product Offering Digital Commerce Commerce Orchestration TM Mobile Store Experience Mgmt (DCXM) Platform Fulfillment The API-first commerce Create engaging shopping Turn your stores into local platform that makes experiences for your customers fulfillment centres omnichannel retail work that convert to more sales Make all your inventory accessible online, and leverage A cloud platform that enables Cloud-based experience management your local stores to ensure leading brands to create that works with our Commerce Orchestration TM Platform to deliver customers get the products unique shopping experiences they want, when and where for any channel, device, or tailored web and mobile shopping they want them. application. experiences for your customers. 21 INVESTOR PRESENTATION
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