TRANSACT IN THE DIGITAL ECONOMY A u g u s t 2 8 , 2 0 1 8 INVESTOR PRESENTATION 1
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 2
Our mission INVESTOR PRESENTATION 3
Company Overview 1996 520 Created in 1996, Employee Connecting buyers & Public since 2000, workforce total sellers through various MDF.TO platform Longueuil, Canada Albany, New York Laval, Canada $80.9M $148M $0.10 $23.4M* Market Capitalisation Quarterly dividend per share FY 2018 Atlanta, Georgia Shenzhen, China Revenue & Adjusted EBITDA* as at August 27, 2018 *FY 2018 Adjusted EBITDA includes $2.0 M of non recurring costs INVESTOR PRESENTATION 4
Offices Longueuil, Canada Albany, New York Laval, Canada Ottawa, Canada Atlanta, Georgia Copenhagen, Danemark, Shenzhen, China INVESTOR PRESENTATION 5
Historical results Revenue Adjusted EBITDA 28,6 28,6 80,9 27,5 77,7 73,0 25,2 70,2 24,3 23,4 65,4 60,7 53,8 17,4 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY12 FY13 FY14 FY15 FY16 FY17 FY18 *FY 2018 Adjusted EBITDA includes $2.0 M of non recurring costs Cash flow from Operations Earnings per share $1,00 $1,05 $1,06 $0,97 $24,1 $23,7 $22,3 $22,2 $0,80 $18,0 $17,9 $0,69 $0,58 $12,3 $0,48 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 2018 EPS includes a non-cash, non-recurring income tax expense of $1.4 million ($0.09 per share) following the U.S. tax reform enacted on Jan.1 2018. INVESTOR PRESENTATION 6
FY-2019 Focus Organic Growth INVESTOR PRESENTATION 7
Our Solutions MARKETPLACES STRATEGIC SOURCING UNIFIED COMMERCE SUPPLY CHAIN CLASSIFIED ADS SOURCING COLLABORATION DIAMONDS & JEWLERY SUPPLY BASE DIGITAL MANAGEMENT COMMERCE ELECTRONIC COMPONENTS ONLINE AUTOMATIVE CONTRACT RECRUITING AFTERMARKET MANAGEMENT ONLINE DATING INVESTOR PRESENTATION 8
Strategic Sourcing: Main Brands Canada USA CAD/USA 2,000 buyers 1,200 agencies 40+ clients 70,000 suppliers 63,000 suppliers Contract Life cycle managment Strong public & Presence in 30 solutions private presence States across Canada Cross selling & Integration Revenue type: opportunites 90 % recurring 82 % recurring 90 % recurring • . INVESTOR PRESENTATION 9
Strategic Sourcing Contract Spend Analysis Sourcing Supply Base management management RFx: • Data cleansing • Creation • Vendor • Repository • Categorization • Management database • Alert • Publication • Analytics • Contract • Vendor creation • Notification • Bid evaluation qualification • Requisitions mgt • Dashboard • Award • Performance publication Management • Approval • Decision workflows Support • Vendor certification INVESTOR PRESENTATION 10
Strategic Sourcing : Growth Initiatives Increase Buyer Content Implement value added Supplier Services Contract Management Growth INVESTOR PRESENTATION 11
Supply chain Collaboration Apparel & General Merchandise Enable trading relationships between retailers & manufacturers Unique Combined Offering Private Catalogue Business Network (EDI VAN Tier-1) Automotive Recurring revenues (75% US$) 90%+ Healthcare 4,100+ Retailers & suppliers INVESTOR PRESENTATION 12
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 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 13
Digital Commerce Cloud-based commerce solutions offering mid-size, enterprise Retailers and Brands a Single Platform to drive unified customer experiences online and in- store. Flexible, open and globally available solution on Microsoft Azure. INVESTOR PRESENTATION 14
Market Presence & Industry Focus REGIONS North America Europe ENTERPRISE Mid to Large INDUSTRY Retail Branded Manufacturer INVESTOR PRESENTATION 15
Retail & Brand Manufacturing enabling top brands INVESTOR PRESENTATION 16
Main Product Offering Digital Commerce Commerce Orchestration TM Mobile Store Experience Mgnt (DCXM) Fulfillment Platform Turn your stores into local Create unique shopping experiences Create engaging shopping experiences for your customers that convert more sales. fulfillment centers for any channel, device, or application. 17 INVESTOR PRESENTATION
Addressable Market Size Target market: $9.4B worldwide 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: Worldwide (1) Source: Gartner Report, “Magic Quadrant for Digital Commerce 2018.” INVESTOR PRESENTATION 18
MarketPlaces B2C PRESENT IN KEY LIFE EVENTS & MOMENTS LesPAC : Buy & sell Jobboom : Find a job & manage your career Réseau Contact : Find love & build relationships INVESTOR PRESENTATION 19
Growth Strategy Increase platform content Freemium model (launched March 2017) Monetize added content New visibility tools Focus on SMB that wants to sell online INVESTOR PRESENTATION 20
Growth Strategy Update Freemium model Successful transition to freemium model Q1-FY19 revenue in line with Q1-FY18 Ad published increased another 9% in Q1-FY19 New visibility tools and recurring offer to SMB’s performing well INVESTOR PRESENTATION 21
MarketPlaces B2C Evolution of the business platform to: Improve recruitment process of the employer Provide additional tools for the job seeker INVESTOR PRESENTATION 22
Growth Strategy Update Put in place assisted recruitment for employer Introduced recurring package for clients Content increasing 14% Q1 FY19 vs Q1 FY18 Stable number of clients on the platform INVESTOR PRESENTATION 23
Financial Highlights First Quarter FY-2019 ended June 30 th , 2018 INVESTOR PRESENTATION 24
Q1 FY-2019 Highlights Revenues of $21.1M | + 5,8% Long-term agreement with the SAQ for the development of the Société Québécoise du Cannabis’ transactional website Adjusted EBITDA of $5.3 M | 25% margin (including $0.1 M of non-recurring expenses) Cash flow from operations of $2.4M Profit of $2.4 M | $0.16 | share INVESTOR PRESENTATION 25
Quarterly Results In M of canadian $ 21,1 20,5 20,5 20,0 20,0 31% 30% 28% 27% 25% 6,1 6,1 5,6 5,5 5,3 2,4 2,4 2,1 1,7 1,0 Q1-FY18 Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19 Revenue Adjusted EBITDA Profit Adjusted EBITDA margin * Q1-FY19 adjusted EBITDA includes non-recurring expenses of $0.1 million. INVESTOR PRESENTATION 26
Financial Position Healthy balance sheet Strong adjusted EBITDA margin High cash flow from operations Net debt / adjusted EBITDA @ 0.6X * Liquidity of $65M + accordion feature of $40M* *LTM Adjusted EBITDA as per lenders agreement, net debt as at June 30, 2018 & accordion feature subject to lenders approval INVESTOR PRESENTATION 27
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 28
Ownership 14.8 million shares outstanding Alignment of interests Directors & Officers owns 28% of all shares o/s • Claude Roy, President & CEO, currently holding 24% INVESTOR PRESENTATION 29
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