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Investor Presentation MDF.TO Summer 2020

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Page 1: Investor Presentation MDF · 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

Investor Presentation

MDF.TOSummer 2020

Page 2: Investor Presentation MDF · 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

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:

MDF.TO CONFIDENTIAL

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Page 3: Investor Presentation MDF · 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

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

MDF.TO CONFIDENTIAL

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

3

Page 4: Investor Presentation MDF · 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

Ready for superior growth - Timeline

MDF.TO CONFIDENTIAL

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

4

May 2020

Page 5: Investor Presentation MDF · 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

Improving quality of revenue

MDF.TO CONFIDENTIAL

DeferredRevenue:

$17.8M

Net New Clients in 8 months

220+

Page 6: Investor Presentation MDF · 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

5 Year Trajectory

Revenue

Ebitda Margin

Market Cap

Rule Of 40

$80M

8%-12%

13

$100M

$250M

20-25%

40+

$1B

5

MDF.TO CONFIDENTIAL

Page 7: Investor Presentation MDF · 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

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

6

MDF.TO CONFIDENTIAL

Page 8: Investor Presentation MDF · 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

Strategic Sourcing

Page 9: Investor Presentation MDF · 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

(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

MDF.TO CONFIDENTIAL

• SaaS eProcurement platform connecting 3,000

buyers to 200,000 suppliers

• One of the largest supplier networks in North America

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Page 10: Investor Presentation MDF · 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

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

MDF.TO CONFIDENTIAL

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Page 11: Investor Presentation MDF · 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

Strategic Sourcing Platform Footprint

9

MDF.TO CONFIDENTIAL

Page 12: Investor Presentation MDF · 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

Strategic Sourcing MRR Growth

MDF.TO CONFIDENTIAL

Page 13: Investor Presentation MDF · 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

Unified Commerce

Page 14: Investor Presentation MDF · 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

(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

MDF.TO CONFIDENTIAL

• 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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Page 15: Investor Presentation MDF · 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

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.

MDF.TO CONFIDENTIAL

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Page 16: Investor Presentation MDF · 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

Unified Commerce MRR Growth

MDF.TO CONFIDENTIAL

Page 17: Investor Presentation MDF · 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

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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Page 18: Investor Presentation MDF · 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

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

,10mm

,20mm

,30mm

,40mm

,50mm

,60mm

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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Page 19: Investor Presentation MDF · 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

Capital Markets

Page 20: Investor Presentation MDF · 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

18

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

MDF.TO CONFIDENTIAL

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Page 21: Investor Presentation MDF · 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

Reasons to Invest

MDF.TO CONFIDENTIAL

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

17

Page 22: Investor Presentation MDF · 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

Questions?

Page 23: Investor Presentation MDF · 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

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

MDF.TO

Mediagrif Interactive

Technologies Inc.