investor presentation june 2011

Investor PresentationJune 2011

Forward-Looking Statements

Certain statements in this document are “forward-looking statements”, which reflect management’s current beliefs and expectations regarding the Fund and The DATA Group’s future growth, results of operations, performance, and business prospects and opportunities. Forward-looking statements involve risks and uncertainties related to factors that could cause actual results to differ materially from anticipated results, including those factors discussed in the Fund’s periodic filings with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this document. Unless required by applicable securities law, the Fund does not intend and does not assume any obligation to update these forward-looking statements.

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Overview

• Industry-leading market position with strong customer base

• Diversified product & service offering in traditional products and new

technology / delivery

• Long history as a cash generator – monthly unitholder distributions

• Reasonable capex requirements, disciplined investment process

• Focused, multi-part growth strategy

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• Founded in 1959

• 32 locations across Canada

• Customers include many of Canada’s largest companies

• TSX: DGI.UN / DGI.DB.A

• Market Cap: ~ $150 M equity / ~$45 M debentures

• DGI.UN annualized distribution: $0.65 / unit

• 2010 Revenue / EBITDA: $332 M / $30.8 M

Corporate Profile

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Customer Value Proposition

Reduce costs and increase revenue

• Constructive, problem-solving approach

• Broad range of capabilities

• Use of technology

Minimize risk

• Financial strength

• Scale of operations

• Focus on operational risk reduction for

“mission critical” documents

State-of-the-Art Manufacturing, Warehousing and Distribution

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Solid Customer Base

• Large, blue-chip customers

• Majority of top 25 > 10 year relationships

• No single customer > 5% of revenue

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Industry Overview

*Segments in which Data Group operates

Marketing & Promotion*

Packaging

Labels*

Financial Printing*

Book Publishing

Business Documents*

Greeting Cards Stationery*

Newspapers

Magazines

Newspaper Inserts

Event Tickets*

Canadian Printing Industry

Strong growth in outsourcingand direct marketing

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Key Markets Served

Outsourced Document Management Direct Marketing

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DATA Group Services Agreement

DATA creates a database of allcustomer documents and establishes standard operating procedures

DATA electronically stores the documents and enables customerto place orders via e-commerce system

Customer engages DATA in amulti-year agreement for documentmanagement services

DATA commences reporting procedures on process improvement recommendations and key success factors

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Customer Case Study

DATA meets customer to assessdocument requirements (quantity, design, timing, distribution, budget)

DATA designs document

DATA implements “Economic Order Quantity” analysis

DATA stores documentsin warehouse or electronically

Client branch managers place orders via DATA’s e-commerce site, and DATA fulfills order / ships documents

DATA advises client when the items need to be replenished

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Production: paperor electronic

Products

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Services

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DATA warehouseDATA e-Commerce site DATA electronic order form

Competitive Advantages

• Cost-effective, single source solutions provider• Scale:

Range of products National presence Invest in R & D / product innovation

• Long-term relationships, trusted partner and customer insight

• Experienced management team

• Financial strength

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Financial Review

5 Year Financial Review

Cash Available ForDistribution (CAFD)Adjusted EBITDARevenue

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(C$ Millions)

Q1 2011 Financial Review

Three months ended,(C$ millions, except percent & per share amounts)

March 31, 2011 March 31, 2010

Revenue 84.3 85.6

Gross profit 21.4 20.9

SG&A expenses 14.9 14.4

Adjusted EBITDA 8.0 8.2

EBITDA margin 9.5% 9.6%

Net earnings 1.8 3.4

Net earnings / unit 0.07 0.14

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Q1 2011 Distributable Cash

Three months ended, (C$ millions, except percent and per share amounts)

March 31, 2011

March 31, 2010

Cash provided by (used in) operating activities 1,557 12,846

Capital Adjustments: Maintenance Capex

Other adjustments incl. discretionary items: Changes in working capital Pension plan wind-up contributions Other Corporate conversion costs

(561)

3,765--

101161

(250)

(7,489)1,260(227)

--

Cash available for distribution 5,023 6,140

Distributions to unitholders 3,820 6,805

Cash available for distribution per unit 0.214 0.261

Distributions per unit 0.163 0.290

Payout ratio 76.1% 110.8%

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Balance sheet

As at March 31, 2011 (C$ millions)

Cash & Equivalents 5.2

Total current assets 91.2

Total assets 285.6

Total current liabilities 38.5

Long-term obligations, including bank loans, convertible debentures, future income taxes and pension obligations 121.0

Total unitholder equity 126.0

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Growth Strategy

Industry Dynamics

• Growth in web, electronic and wireless (mobile device) applications

• Decline in traditional, printed forms business

• Increasing complexity: what is the right product, delivery and technology?

Opportunity for trusted, consultative, single source provider

Opportunity for integration with customer business processes & systems

• Importance of proximity to customers Negligible threat of offshore competition

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Growth Strategy

Aggressive sales efforts in core markets

• New VP Sales, DATA East

• New VP Sales, Ontario

• New managers / re-org of reporting structure / sales compensation

• New sales training

• New web site / enhanced e-commerce site

• Direct marketing campaigns

• Enhanced sales information systems

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22 New products & services

• Enhanced expertise: New CIO New VP, Digital & Direct Marketing New Director, Product Research

• New products: Photobooks: web-to-print, utilizing existing assets, double-digit growth

category Multi-channel direct marketing: e-mail, mobile messaging, promotional

web pages, data analytics, leverages existing direct mail business

• New equipment: Short-run, personalized marketing print and gift / loyalty cards

Growth Strategy

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Customer joins the Shoe Mart Loyalty Rewards Club after receiving a direct mail offer

She receives regular print, email and mobile messages with special offers tailored to her

She responds by visiting a personalized Shoe Mart web site, and shops online

She visits retail store and redeems her special

She receives a “Thank you” postcard with special Gift Card attached

DATA tracks her responses to determine which direct marketing offers work best

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3

6 5

4

Multi-Channel Direct Marketing

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Growth Strategy

Incremental cost savings

• Review internal processes & IT systems

• New supply chain and procurement professionals

• Real estate

Acquisitions

• Consistent with plans for new product development

• Accretive

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Investment Highlights

• Industry-leading market position with strong customer base

• Diversified product & service offering in traditional products and new

technology / delivery

• Long history as a cash generator – monthly unitholder distributions

• Reasonable capex requirements, disciplined investment process

• Financial strength

• Experienced management team

• Focused, multi-part growth strategy

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