TRANSACT IN THE DIGITAL ECONOMY · RECRUITING ONLINE DATING Our Solutions SOURCING CLASSIFIED ADS ELECTRONIC COMPONENTS DIAMONDS & ... Current Trends: Moving to Cloud and API-First

INVESTOR PRESENTATION

A u g u s t 2 8 , 2 0 1 8

TRANSACT IN

THE DIGITAL

ECONOMY

1

INVESTOR PRESENTATION 2

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


Our mission


Albany, New York Longueuil, Canada

Laval, Canada

Shenzhen, China Atlanta, Georgia

4

Employee

workforce total

Created in 1996,

Public since 2000,

MDF.TO

1996

Connecting buyers &

sellers through various

platform

520

$23.4M*

$80.9M

FY 2018

Revenue & Adjusted EBITDA*

Quarterly dividend

per share

$0.10

Market Capitalisation

as at August 27, 2018

$148M

Company Overview

*FY 2018 Adjusted EBITDA includes $2.0 M of non recurring costs


Offices

Albany, New York Longueuil, Canada

Laval, Canada

Shenzhen, China

Ottawa, Canada

Atlanta, GeorgiaCopenhagen, Danemark,

5


Historical results

53,860,7 65,4 70,2 73,0 77,7 80,9

FY12 FY13 FY14 FY15 FY16 FY17 FY18

Revenue

17,4

25,2 24,327,5 28,6 28,6

23,4


Adjusted EBITDA

$12,3

$18,0

$22,2$24,1

$22,3 $23,7

$17,9


Cash flow from Operations

$0,58 $0,69

$0,97

$0,80

$1,00 $1,05 $1,06

$0,48

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Earnings per share

*FY 2018 Adjusted EBITDA includes $2.0 M of non recurring costs

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.


FY-2019 Focus

7

Organic Growth


UNIFIED COMMERCE MARKETPLACES

DIGITAL

COMMERCE

SUPPLY CHAIN

COLLABORATION

AUTOMATIVE

AFTERMARKET

SUPPLY BASE

MANAGEMENT

CONTRACT

MANAGEMENT

STRATEGIC SOURCING

ONLINE

RECRUITING

ONLINE DATING

Our Solutions

SOURCING CLASSIFIED ADS

ELECTRONIC

COMPONENTS

DIAMONDS &

JEWLERY

8


Strategic Sourcing: Main Brands

Canada

2,000 buyers

70,000 suppliers

Strong public &

private presence

across Canada

90 % recurring

USA

1,200 agencies

63,000 suppliers

Presence in 30

States

90 % recurring

• .

9

CAD/USA

40+ clients

Contract Life cycle

managment

solutions

Cross selling &

Integration

opportunites

82 % recurring

Revenue type:


Sourcing

RFx:

• Creation

• Management

• Publication

• Bid evaluation

• Award

publication

Supply Base

management

• Vendor

database

• Vendor

qualification

• Performance

Management

• Vendor

certification

Contract

management

• Repository

• Alert

• Contract

creation

• Requisitions mgt

• Approval

workflows

Spend Analysis

• Data cleansing

• Categorization

• Analytics

• Notification

• Dashboard

• Decision

Support

Strategic Sourcing


Strategic Sourcing : Growth Initiatives

11

Implement value added

Supplier Services

Contract Management Growth

Increase Buyer Content


Unique Combined Offering

Private Catalogue

Business Network (EDI VAN Tier-1) Automotive

Healthcare

Apparel & General Merchandise

Supply chain Collaboration

90%+ Recurring revenues (75% US$)

4,100+ Retailers & suppliers

Enable trading relationships

between retailers & manufacturers


Supply chain - Growth Initiatives

13

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.


Digital Commerce

14

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.


REGIONS

North America

Europe

ENTERPRISE

Mid to Large

INDUSTRY

Retail

Branded Manufacturer

Market Presence & Industry Focus


Retail & Brand Manufacturing enabling top brands

16


Main Product Offering

Digital Commerce

Experience Mgnt (DCXM)

Mobile Store

Fulfillment

Commerce OrchestrationTM

Platform

Turn your stores into local

fulfillment centers

Create engaging shopping experiences

for your customers that convert more sales.

Create unique shopping experiences

for any channel, device, or application.

17


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.”

18

Addressable Market Size


MarketPlaces B2C

19

PRESENT IN KEY

LIFE EVENTS &

MOMENTS

LesPAC: Buy & sell

Jobboom: Find a job & manage your career

Réseau Contact: Find love & build relationships


Growth Strategy

20

Increase platform content

Freemium model (launched March 2017)

Monetize added content

New visibility tools

Focus on SMB that wants to sell online


Growth Strategy Update

21

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


MarketPlaces B2C

22

Evolution of the business platform to:

Improve recruitment process of the employer

Provide additional tools for the job seeker


Growth Strategy Update

23

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


Financial Highlights

24

First Quarter FY-2019

ended June 30th, 2018


Q1 FY-2019 Highlights

25

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


Quarterly Results

26

In M of canadian $

* Q1-FY19 adjusted EBITDA includes non-recurring expenses of $0.1 million.

20,0 20,0 20,5 20,521,1

6,15,5

6,1 5,6 5,32,4

1,71,0

2,1 2,4

31% 28% 30%27%

25%

Q1-FY18 Q2-FY18 Q3-FY18 Q4-FY18 Q1-FY19

Revenue Adjusted EBITDA Profit Adjusted EBITDA margin


Financial Position

27

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


M&A Guidelines

28

• 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)


Ownership

29

14.8 million shares outstanding

Alignment of interests

Directors & Officers owns 28% of all shares o/s

• Claude Roy, President & CEO, currently holding 24%


Board of Directors

30

Claude Roy

Chairman and CEO

Gilles LaurinDirector of Corporations

Philippe DuvalFirst Vice President & C.O.O.

Réseau Sélection

Catherine Roy

President, Gestion Catsachar Inc.

André GauthierPresident

André Gauthier Holding Inc.

Jean-François SabourinPresident and CEO

JitneyTrade Inc.

Gilles Laporte

Director of Corporations

Natalie Larivière

President , Yuma Strategies

Viviane Trudel

Founder & President of Metix Inc.,

Metix Capital Inc. and B-CITI Solutions Inc

Claude Roy President and Chief Executive Officer

Mark Eigenbauer Vice President, US Operations

Paul BourqueChief Financial Officer

Jean-Michel StamVice President, Canadian Operations

Hélène Hallak Vice President and General Counsel

Suzanne MoquinVice President, Consumers Solutions

André LeblancVice President, Marketing

Camil RousseauVice President, Research & Development

Stéphane Anglaret Vice President, Technology

Management Team


MEDIAGRIF INTERACTIVE TECHNOLOGIES INC.

1111 St-Charles Street West, Suite 255Longueuil, QuébecCanada J4K 5G4

www.mediagrif.com

Toll Free: 877 677-9088Phone: 450 449-0102Fax: 450 449-8725

Documents

TRANSACT IN THE DIGITAL ECONOMY · RECRUITING ONLINE DATING Our Solutions SOURCING CLASSIFIED ADS ELECTRONIC COMPONENTS DIAMONDS & ... Current Trends: Moving to Cloud and API-First