investor presentation mdf · mediagrif is a key global player in digital commerce over 200,000...
TRANSCRIPT
Investor Presentation
MDF.TOSummer 2020
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.
No significant change in the current value of CAD$ vs. US$
No significant increase or decrease in revenues and operating expenses
Stable market conditions
Forward-looking
Statement
These assumptions include,
without limitations:
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Mediagrif is a key global
player in Digital Commerce
Over 200,000 vendors on its core platforms
– Over $15B of transactions annually
COVID-19 has accelerated global shift
to Digital Commerce
Recent 50% surge in eCommerce revenues demonstrate
accelerating growth trajectory. Shift is permanent.
Huge fragmented &
consolidating markets
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Mediagrif is well positioned
to capitalize on this trend
Transforming into SaaS business with
79% Recurring, High Margin Revenue
Free cash flow &
strong balance sheet
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Ready for superior growth - Timeline
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Arrival of new
Management
Team
Clarification
of our offer and
operational/
reorganization
by platform
Launch
of 5-year
Strategic
Plan
k-eCommerce
acquisition
Shift to
SaaS model
Sales
Transformation
Plan
Improved
balance sheet -
$16M bought
deal
FALL 2019
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May 2020
Improving quality of revenue
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DeferredRevenue:
$17.8M
Net New Clients in 8 months
220+
5 Year Trajectory
Revenue
Ebitda Margin
Market Cap
Rule Of 40
$80M
8%-12%
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$100M
$250M
20-25%
40+
$1B
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Platform % Rev Focus Offer Market ARR CompetitorsSubstitute -
Disrupt
Mediagrif
Advantage
Strategic
Sourcing42 Growth
eProcurement software
and eTendering with
200k participants
Public Entities and
Large Enterprise$29M
Periscope
Bonfire
eSolutions
Negometrix
Mercell
Fragmented
Breadth of
offering and
Scope of
Network
Unified
Commerce38 Growth
End to End eCommerce
for mid-market to
Enterprise
Enterprise and
mid-sized retail –
Growing
specialization
in groceries
$23MCommerce Tools
Elastic Path
Adobe
Oracle
Salesforce
SAP
Price, Speed,
Flexibility,
richer feature
set
eMarketplaces 20 Earnings
Marketplaces for
Diamonds, electronic
parts, automotive, jobs,
dating
End-User, some
marketplaces local,
other int’l
N/AFragmented
by vertical
Fragmented
by vertical
Established
brands
Platforms
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Strategic Sourcing
(1) Source: MarketWatch – Procurement Software Market Valuation - October 15, 2018
Market – US$10B market by 2023 with +10%CAGR (1), massive market opportunity
Organic Growth Plan
adding more US sales capabilities and cross-sell/up-sell resources for current base
Investing in new AI features to extend product for cross-selling & increase contract stickiness
M&A Growth Plan – Fragmented market ready for consolidation - Many accretive US acquisitions
KPIs : 85% ARR – $2.4M MRR – 85% GM – 5% CAGR
Strategic Sourcing Platform
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• SaaS eProcurement platform connecting 3,000
buyers to 200,000 suppliers
• One of the largest supplier networks in North America
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Strategic Sourcing Platform
Current customers
3,000 buyers and 200,000 supplier network
Recent Notable Wins
National Health Service - UK, Colorado Department
of Transportation, San Diego Association of
Governments + 150 new active buyers
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Strategic Sourcing Platform Footprint
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Strategic Sourcing MRR Growth
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Unified Commerce
(1) Source: Research & Markets, Digital Commerce Software Market – Growth, Trends, and Forecast (2020-2025), Jan 2020
(2) Source: Research & Markets, Global E-commerce Software Market Size…and Forecasts, 2018 To 2026, Sept 2018;
Market – US$ 10.4B US eCommerce market by 2025 (1) with 12-15% CAGR, B2B Valued
at US$ 12.2T globally (2)
Organic Growth Plan
Expanding sales capabilities with a focus on US markets & cross-selling
Product Development: Improved deployment speed, agility, scalability & feature set
Adding AI recommendation features, and more advanced BI.
M&A growth plan – Acquiring to further disrupt legacy players like Oracle, SAP, Adobe &
consolidate competitors e.g. k-eCommerce
KPIs: 60% ARR - $1.9M MRR - 26% CAGR
Unified Commerce Platform
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• End-to-end seamless omnichannel ecommerce platform
• Extends from enterprise to SMB
• Proven agility for rapidly evolving eCommerce landscape
• 52% surge with COVID-19 Pandemic
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Unified Commerce Platform
Current customers
650+ clients including SQDC, Sobey’s, IGA, Black&Decker, Subway, BRP, Groupon, Sports Experts.
Recent Wins
67 additional SMBs added to client list + 10 significant Enterprise wins including a
major grocer, retailer and veterinary products provider. Total MRR value $150K and
$3.5M total contract value.
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Unified Commerce MRR Growth
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Company (2020) Market Cap –
CA$
Enterprise Value
– CA$
Revenue LTM –
CA$
EBITDA LTM –
CA$
EV/ Sales EV/ EBITDA
Shopify Inc. 132.3B 129.3B 2.4B (189M) 52.8x -
Kinaxis Inc. 4.8B 4.5B 281M 54M 16.1x 83.2x
SPS Commerce 3.5B 3.2B 406M 84M 7.9x 37.9x
Lightspeed POS Inc. 3.2B 2.9B 171M (59M) 17.2x -
Tecsys Inc. 332M 340M 98M 7M 3.5x 49.1x
Mediagrif 104M 102M 75M 8.5M 1.3x 11.9x
Note: Market Capitalization as of June 17, 2020; Exchange rate 1.3580 CAD/USD spot rate as of June 18, 2020; Revenue and EBITDA multiples based on LTM financials
Data sources: S&P Capital IQ Mergermarket; CRM - Customer Relationship Management; SEC – Security; PYMT - Payment/Financials ; ISS - Industry Specific Software;
HCM - Human Capital Management; ERP - Enterprise Resource Planning; SCM - Supply Chain Management; IS - Internet Software.
Comparable Valuations
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Market Cap (in MM) 104.0
Shares Outstanding 17,960,870
Enterprise Value (in MM) 101.6
Current Share Price (6/29/20) $5.80
52 Week High/Low $7.71 / $2.22
Consensus Target $7.20
Stock Chart
Ownership Summary
0
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0,001,002,003,004,005,006,007,008,009,00
Vo
lum
e
Sh
are
Price
Public
Management/Insiders
Institutions
VC/ PE Firms (>5%stake)
Capital Markets – June 2020
Analyst Coverage
Nick Corcoran
Maher Yaghi
Amr Ezzat
Nick Agostino
Richard Tse
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Capital Markets
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Board of Directors
Management Team
Gilles Laporte
Chairman of the Corporation
Director of corporations
Catherine Roy
Vice President, Transformation, Mediagrif Interactive Technologies Inc.
President, Gestion Catsachar Inc.
Luc Filiatreault
President and C.E.O., Mediagrif Interactive Technologies Inc.
Jean-François Sabourin
President and C.E.O., JitneyTrade Inc.
Philippe Duval
First Vice President & C.O.O., Groupe Sélection
Natalie Larivière
President, Yuma Strategies
Gilles Laurin
CPA, CA
Director of Corporations
Zoya Shchupak
Consultant, Strategy and M&A, Sagard Holdings ULC
Luc Filiatreault
President and Chief Executive Officer
Camil Rousseau
Chief Technology Officer
Paul Bourque
Chief Financial Officer
Hélène Hallak
Vice President, Corporate Development and Chief Legal Officer
Catherine Roy
Vice President, Transformation
André Leblanc
Vice President, Marketing and Communications
Julie Bélanger
Vice President, Human Resources
Mark Eigenbauer
President, Strategic Sourcing
Andreanne Simon
President, Supply Chain Collaboration
Jean-Michel Stam
President, e-Marketplaces
Louis Mousseau
President, e-Commerce
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Reasons to Invest
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COVID-19 has
accelerated a global
shift to Digital Commerce
Mediagrif is already a
major Digital Commerce
platform, managing
$Billions annually for
gov't, enterprise, and
SMBs
80% recurring
revenue with high
margins, low
churn and free cashflow
Transforming into a SaaS
growth company like Shopify
and Lightspeed, but with free
cash flow and significantly
lower valuation
Positioned to
dominate US$10B
Strategic Sourcing
market
Disrupting the
Unified Commerce
space with a path to
dominate groceries
vertical
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Questions?
1111 St-Charles Street West
East Tower, Suite 255
Longueuil, Quebec
Canada J4K 5G4
Toll Free 877 677-9088
Phone 450 449-0102
Fax 450 449-8725
Mediagrif.com
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Mediagrif Interactive
Technologies Inc.