Investors Presentation

Investors
Presentation
May 2012
Disclaimer
Forward Looking Statements
This presentation contains certain forward-looking statements with respect to the Company,
including, without limitation, guidance on future earnings of the Company. These forwardlooking 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
Assumptions:
No significant change in the current value of CDN$ vs. US$
No significant increase or decrease in revenues and operating expenses
Stable market conditions
2
2
Our Mission
We connect Buyers and Sellers
Provide innovative interactive e-commerce solutions to help
our users maximize their reach and effectiveness.
In doing so, we seek to create value for employees and shareholders.
3
E-Commerce Solutions
Worldwide Client Base
‒ Marketplaces
‒ Procurement
‒ Business
‒ Private sector
‒ Public sector
‒ Consumers
Diversified Business Sectors
INITERACTIVE E-COMMERCE SOLUTIONS
MARKETPLACE
x
BUSINESS
E-PROC.
x
x
x
x
x
CONSUMER
Gov. Opportunities
Gov. Opportunities
Wine & Spirits
x
x
Computer, IT & Telecom
Automotive Aftermarket
x
Medical Equipment
x
Computer, IT & Telecom
x
Electronic Components
x
Supply Chain
x
Automotive Aftermarket
x
Diamonds & Jewelry
x
4
INDUSTRY
x
x
Classifieds / Ad / Deals
Reaching New Heights
55
50%
50.1
45
47.9
47.7
46.0
47.0
45.7
45%
40%
40%
35%
35%
35%
33%
35
32%
27%
30%
27%
25
20.0
25%
20%
20%
15.3
15
12.5
13.6
12.7
12.6
12.4
15%
9.7
9.8
5
5.2
11%
8.4
5.1
2.5
2.0
4.8
4.5
4.0
2.2
10%
3.7
5%
-1.3
-5
FY06
FY07
FY08
FY09
Revenues
(CAD currency in Millions of $)
* Before non recurring transaction costs of 1,5 Million
5
EBITDA
FY10
FY11
Net margin
Q1FY12
EBITDA margin %
Q2FY12
Q3FY12 *
0%
Focus on Value Creation
Market Cap.
Stock Price
Stock Performance
$16
May 2012
$228 M
$16.61
$8
Dec 2008
$28 M
$2.00
$1
Dec 08
2010
2011
Value For Shareholders
Increased Analyst Coverage
Market Cap. and share price up more than 10X
‒ Acumen Capital Finance Partners
2012
‒ Valeurs mobilières Banque Laurentienne
Quarterly dividend of C$ 0.08
‒ GMP Securities L.P.
‒ Cormark Securities
‒ National Bank
6
Building on Recurring Revenues
Contractual Recurring Revenues
Membership (SaaS)*
Software (Right of use)
Transactional
Maintenance
Value Added Services
Information Services
Advertising
*Contract exceeding one year
7
7
1%
1% 4%
7%
Recurring Rev.
FY12 - 9 Months
19%
45%
23%
67%
Organic Growth Initiatives
‒ White LabelFY13
E-Procurement
Solution
Reallocating
resources on
the following
Government of Canada preferred solution
organic
growth
opportunities:
Canadian/U.S
public & private
sector adoption
‒ SaaS E-Commerce Solution
‒ MERX 4 Private tender and BI solution
Currently utilized by Major North American client
White label solution opportunities in other vertical markets
‒ InterTrade EDI solution
‒ Build on InterTrade EDI Market
‒ US Construction tender solution
High growth in SMB Web EDI solutions market
‒ LesPAC
8
8
MDF Acquisition Criteria
North American Location
Ethical and Diversified Business Sectors
Strong Business Models
High Profitability
Recurring / Transactional Revenues
SaaS (Software-as-a-Service)
Sustainable competitive advantage
Web Based Solutions
Acquisition Targets
Companies between $5 - $25 M in annual revenues
Aligned to take advantage of our resources (Technical, Financial, HR)
9
LesPAC Overview
Leading Classified Ad Website in Quebec
Strong brand awareness
2.1 million registered members
1.8 million monthly unique visitors (30% of QC. online audience)
Key Partnerships
Mediative (Yellow Media Inc.)
Advertisement agency
Responsible for managing display
advertisement on LesPAC
Revenue by Type
Market Positioning (QC.)
13%
Monthly Unique Visitors
(in thousands)
5%
2,271
1,769
Trader Corporation
262
LesPAC publishes Quebec vehicle
dealer ads directed by Trader
corporation
10%
72%
272
202
Google
182
Google contextual ads on LesPAC
(Google AdSense)
135
79
10
Online Marketplace
Partnership Classifieds (Trader)
Partnership Classifieds
Advertising
LesPAC Acquisition - Funding Structure
Funding Sources
$Million
%
$25
35.5%
Term Loan
$40
Revolving Credit Facility* $7.5
$47.5
65.5%
Total
$72.5
100%
Mediagrif Cash
Net debt as of Dec. 31st 2011 $36 M
*$20M Approved
11
11
Reaching New Heights
Planes change.
Values don’t.
EBITDA Guidance
FY2012 - $17.5M - $19.5M
(Following LesPAC acquisition, not including acquisition related costs)
12
Management Team
Claude Roy
President and Chief Executive Officer
Richard Lampron
Chief Operating Officer
Paul Bourque
Chief Financial Officer
Hélène Hallak
Senior Vice President and General Counsel
Mark Eigenbauer
Vice President, US Operations
Paul Saunders
President, Merx
Eric Phaneuf
President, Intertrade
Suzanne Moquin
President, LesPAC
Jean-Michel Stam
Vice President e-Business networks
Stéphane Anglaret
Vice President, Technology
Camil Rousseau
Vice President, R & D
13
Ownership Structure
Shares
3,229,400
23.52%
Directors and Officers
698,182
5.09%
Employees
166,697
1.21%
Subtotal
4,094,279
29.82%
Institutional Investors
5,940,672
43.27%
Public
3,694,324
26.91%
Outstanding shares
13,729,275
100%
Claude Roy
Options outstanding
As of March 31st 2012
14
% of total
104,500
Board Members
Claude Roy
Chairman and CEO
Mediagrif
André Courtemanche
Gilles Laurin
President and Chief Executive Officer
VIAVAR Capital
Chartered Accountant
Advisor and Director of corporations
Michel Dubé
Jean-François Sabourin
Consultant
President and Chief Executive Officer
FinlogiK Inc.
André Gauthier
Gilles Laporte
President
André Gauthier Holding Inc.
15
Director of Corporation