SHAREHOLDERS ANNUAL GENERAL AND SPECIAL MEETING 2010 SEPTEMBER 16, 2010

SHAREHOLDERS ANNUAL GENERAL AND SPECIAL MEETING 2010

SEPTEMBER 16, 2010

SHAREHOLDERS ANNUAL MEETING 2010

OPENING OF MEETING

AGENDA

• MEETING PROCEEDINGS

• NOMINATION OF SCRUTINEERS

• NOTICE OF MEETING

• ADOPTION OF AGENDA

• SCRUTINEERS REPORT

• RECEIPT OF FINANCIAL STATEMENTS AND AUDITORS REPORT

• ELECTION OF DIRECTORS

• APPOINTMENT OF AUDITORS

• CANCELLATION OF SHAREHODLERS RIGHTS PLAN

• ADJOURNMENT OF MEETING

• MANAGEMENT’S REPORT AND FINANCIAL ANALYSIS

• QUESTION PERIOD


MEETING PROCEEDINGS


NOMINATION OF SCRUTINEERS


NOTICE OF MEETING


ADOPTION OF AGENDA

SCRUTINEERS REPORT


RECEIPT OF FINANCIAL STATEMENTS AND AUDITORS REPORT


ELECTION OF DIRECTORS


• ANDRÉ GAUTHIER

QUÉBEC, CANADA

• MARC P. BRUNET

QUÉBEC, CANADA

ANDRÉ COURTEMANCHEQUÉBEC, CANADA

• MICHEL DUBÉQUÉBEC, CANADA

• GILLES LAURIN

QUÉBEC, CANADA

• CLAUDE ROY

QUÉBEC, CANADA

• JEAN-FRANÇOIS SABOURIN

QUÉBEC, CANADA


APPOINTMENT OF AUDITORS


CANCELLATION OF SHAREHOLDERS RIGHTS PLAN



ADJOURNMENT OF MEETING


MANAGEMENT’S REPORT AND FINANCIAL ANALYSIS


QUESTION PERIOD

17

SUZANNE MERCIERChief Financial Officer

REVIEW OF 2010 RESULTS

18

18

CONSOLIDATED RESULTS 2010

46

2009 20100

10

20

30

40

50

60

0%

10%

20%

30%

40%

50%

60%

70%

80%

47.9 45.7

5.2

12.4

Revenues EBITDA % EBITDA on revenuesIn millions $CA

Severance payments in the amount of 4.3 M

Unrealized acquisition in the amount of 0.4 M

FX gain of 0.6 M

Original currencies revenues decreased

by 2.8 M compared to 2009

Revenues decreased in TBF, PSO, MVI and

Polygon,

All were impacted by the economic conditions in their respective markets

Cost savings of 2.9 M due to general headcount

reduction2.9 M

192009 2010

-10,000,000

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

47,940,000.045,710,000.0

5,175,000.0

12,432,000.0

-7.8

9.5

-1,349,000.0

2,507,000.0

Revenues EBITDA Earning from operations Net EarningsIn millions $CA

Impairment on acquired intangible assets 3.6 M

Impairment on intangible assets 3.0 M

Fx gain of 2.3 M

Tax provision reversal of 2.1 M

Cost saving due to general headcount reduction

Fx loss of 2.5 M

Earning (loss) per share

2009 - (0.09) 2010 - 0.18

Fx rate2009 - 1.2602 2010 - 1.0156

CONSOLIDATED RESULTS 2010

CASH FLOWS

Operating activities Investing activities Business acquisitions Dividends Purchase of common shares

Free cash flows0

2

4

6

8

10

12

14

4.2

2.8

0.6

1.91.4

11.7

1.11.4

0.4

9.0

2009 2010In millions $CA

Increase of net earnings combined to

a better cash management

Less needed acquisitions of premises and

equipment

No business acquisition in 2010

Free cash flows

Cash flow from operating activities less acquisition of premises and equipment, intangible assets and less dividends

2121

BALANCE SHEET

46

Cash - 2009 Cash - 20100.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

27.7

34.4

In millions $CA

Cash increase of 24%

1.98$ per share

2.47$ per share

Shares outstanding2009- 14.0 M2010- 13.9 M

Stock options outstanding2011 - 0.7 M2012 - 0.6 M

REVIEW OF 1st QUARTER 2011

Revenues EBITDA Operating expenses Earnings from operations Net earinings

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

11,693

2,632

7,183

1,878

(193)

11,245

3,713

5,205

3,448

2,641

Q1 - 2009 Q1 - 2010In millions $CA

Lower revenues in GWS, PSO, MVI,

PolygonCost savings due to general

headcount reduction

Earning (loss) per share

T1 2010 - (0.01)T1 2011 - 0.19

Fx loss of 0.2 M

Original currencies revenues decreased

by 0.3 M

CLAUDE ROYPresident and Chief Executive Officer

REPORT ON OPERATIONS

1 – FY 10 Highlights

2 – Our quest for growth

3 – Q&A

Agenda

24

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10

-10,000,000

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

48,678,000.046,321,000.0

50,128,000.0

46,044,000.047,749,000.0 47,940,000.0

45,700,000.0

18,933,000.017,116,000.0

19,951,000.0

12,522,000.09,694,000.0

5,175,000.0

12,400,000.0

7,295,000.0 7,540,000.09,779,000.0

5,057,000.0 1,951,000.0

-1,349,000.0

2,600,000.0

39% 37%40%

27%

20%

11%

27%

35%

31% 32%

23%

16%

7%

27%

25* 2006: C$ 2.8M for the sale of Flow system license

EBITDA marginNet marginEBITDARevenues

Management changeDec 08

FY 06*

27%

EBITDA margin EBITDA margin (Without Capitalization)

FY10 Highlights: Focus on Value Creation

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 Q1 FY 11

-10,000,000

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

48,678,000.046,321,000.0

50,128,000.0

46,044,000.047,749,000.0 47,940,000.0

45,700,000.0

11,200,000.018,933,000.0

17,116,000.019,951,000.0

12,522,000.09,694,000.0

5,175,000.0

12,400,000.0

3,700,000.07295000.0 7540000.0

9779000.0

5057000.0 1951000.0

-1349000.0

2600000.0 2600000.0

39% 37%40%

27%

20%

11%

27%

33%35%

31% 32%

23%

16%

7%

27%

33%

* 2006: C$ 2.8M for the sale of Flow system license

Net marginEBITDARevenues

FY 06*


26

FY11 Trend: Focus on Value Creation

Q1 FY 11

EBITDA margin EBITDA margin (Without Capitalization)

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 Q1 FY 110%

10%

20%

30%

40%

50%

60%

70%

15% 16% 16%

19%21%

23% 23%

34% 36% 35%

45%

49%

57%

38%

32%

21% 19%16%

18% 19% 17% 17%16%

Q1 FY 11


Technology (R&D) ExpensesSG&A ExpensesCosts of Goods

FY10 Highlights: Operating Expenses Streamlining

27

23%

28

• 25% Corporate cost reduction

• Integration of business operations:• US Tenders operations & mgmt consolidation in Albany

(BN, GB, EPI, IPT)

• Operations & mgmt consolidation in Tampa & Atlanta

(PSO, TF, MEFX, MVI)

• Significant business process improvementsCAD currency, in thousands of $

FY 09 vs. FY 10

Savings

CGS 828

SG&A 9,978

Tech 768

Total 11,574

FY10 Highlights: EBITDA Improvements

29

Government Opportunities

Electronic Components

Computer, IT & Telecom

Medical Equipment

Automotive Aftermarket

Wine & Spirits

Diamonds & Jewelry

FY10 Highlights: A Diversified Portfolio

30

Our quest for growthOrganic

M&A

• Cash on hand: C$ 36M

• EBITDA Margin: Q1-11 33 %

• Balance sheet: Debt free

• Borrowing capacity: Up to 2 times EBITDA

• Market Capitalization: $120 M

• Stock Price: $8.51 (Up 4 x since Dec 08)

31

Strong Financial Position

Organic Growth: Government Opportunities

32

• Benefiting from increased US & CAN government spending

• Demand for a centralized tendering system (QC)

• “Open Gov” policy: Demand for procurement services to make all federal agencies data easily accessible

Organic Growth: Electronic Components

33

• Positive membership trend

• Strong demand for our escrow services

Organic Growth: Automotive Aftermarket

34

• High single digit growth

• Stronger market presence

• New value added services

Organic Growth: Computer, IT, Telecom & Medical

35

• New auction services

• Sales initiatives to increase revenues

including:

36

Organic Growth: Diamonds & Jewelry

• Positive trends expected in Q2

• New membership acquisition strategy

• Increased sales & marketing efforts

Organic Growth: Wine & Spirits

37

• SAQ partnership: 5 year agreement renewal

38

Double Our Market Cap.

M&A: Objective

M&A: Acquisition Criteria

• North American location

• Ethical & diversified business sectors

• Strong business models

o High profitability

o Transactional revenues

• Web solutions

39

Management Team

40

Claude Roy President and Chief Executive Officer

Stéphane Anglaret Vice President Technology

Mark Eigenbauer Senior Vice President

Hélène Hallak Senior Vice President and General Counsel

Richard Lampron Vice President Research & Development

Suzanne Mercier Chief Financial Officer

Paul Saunders Senior Vice President

Andreanne Simon Vice President, Innovation and Business Development

Board Members

Gilles LaurinChartered Accountant Advisor and Director of different corporations

Marc P. BrunetPresident and Chief Executive OfficerLogibec Groupe Informatique Ltd.

Jean-François SabourinPresident and Chief Executive Officer FinlogiK Inc.

Claude RoyChairman and CEOMediagrif

André CourtemanchePresident and Chief Executive OfficerVIAVAR Capital

Michel DubéConsultant Savaria Corporation

André GauthierPresidentAndré Gauthier Holding Inc.

41

Ownership Structure As of Sep. 14th 2010

Claude Roy 2,774,300 19,9%

Directors and Officers 375,759 2.7%

Employees 207,653 1.5%

Subtotal 3,357,712 24.1%

Shares % of total

Outstanding shares 13,915,744 100%

Options outstanding 269,900

Public 5,079,529 36,5%

Institutional Investors 5,478,503 39.4%

42

Q & A

44

MEDIAGRIF E-BUISNESS NETWORKS

bidnet.com

brokerforum.com

carrustechnologies.com

ebidboard.com

epipeline.com

globalwinespirits.com

governmentbids.com

iptbybidnet.com

marketvelocity.com

medicalequipmentfinders.com

merx.com

polygon.net

powersourceonline.com

telecomfinders.com

truckpartslocator.com

www.mediagrif.com

Documents

SHAREHOLDERS ANNUAL GENERAL AND SPECIAL MEETING 2010 SEPTEMBER 16, 2010