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SHAREHOLDERS ANNUAL GENERAL AND SPECIAL MEETING 2010 SEPTEMBER 16, 2010.

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Presentation on theme: "SHAREHOLDERS ANNUAL GENERAL AND SPECIAL MEETING 2010 SEPTEMBER 16, 2010."— Presentation transcript:

1 SHAREHOLDERS ANNUAL GENERAL AND SPECIAL MEETING 2010 SEPTEMBER 16, 2010

2 SHAREHOLDERS ANNUAL MEETING 2010 OPENING OF MEETING

3 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

4 SHAREHOLDERS ANNUAL MEETING 2010 MEETING PROCEEDINGS

5 SHAREHOLDERS ANNUAL MEETING 2010 NOMINATION OF SCRUTINEERS

6 SHAREHOLDERS ANNUAL MEETING 2010 NOTICE OF MEETING

7 SHAREHOLDERS ANNUAL MEETING 2010 ADOPTION OF AGENDA

8 SCRUTINEERS REPORT SHAREHOLDERS ANNUAL MEETING 2010

9 RECEIPT OF FINANCIAL STATEMENTS AND AUDITORS REPORT SHAREHOLDERS ANNUAL MEETING 2010

10 ELECTION OF DIRECTORS SHAREHOLDERS ANNUAL MEETING 2010

11 ANDRÉ GAUTHIER QUÉBEC, CANADA MARC P. BRUNET QUÉBEC, CANADA ANDRÉ COURTEMANCHE QUÉBEC, CANADA MICHEL DUBÉ QUÉBEC, CANADA GILLES LAURIN QUÉBEC, CANADA CLAUDE ROY QUÉBEC, CANADA JEAN-FRANÇOIS SABOURIN QUÉBEC, CANADA SHAREHOLDERS ANNUAL MEETING 2010

12 APPOINTMENT OF AUDITORS SHAREHOLDERS ANNUAL MEETING 2010

13 CANCELLATION OF SHAREHOLDERS RIGHTS PLAN SHAREHOLDERS ANNUAL MEETING 2010

14 ADJOURNMENT OF MEETING

15 SHAREHOLDERS ANNUAL MEETING 2010 MANAGEMENT’S REPORT AND FINANCIAL ANALYSIS

16 SHAREHOLDERS ANNUAL MEETING 2010 QUESTION PERIOD

17 17 SUZANNE MERCIER Chief Financial Officer REVIEW OF 2010 RESULTS

18 18 CONSOLIDATED RESULTS 2010 46 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 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 reduction 2.9 M Cost savings of 2.9 M due to general headcount reduction 2.9 M

19 19 Impairment on acquired intangible assets 3.6 M Impairment on intangible assets 3.0 M 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 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 Fx loss of 2.5 M Earning (loss) per share 2009 - (0.09) 2010 - 0.18 Fx rate 2009 - 1.2602 2010 - 1.0156 CONSOLIDATED RESULTS 2010

20 CASH FLOWS 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

21 21 BALANCE SHEET 46 Cash increase of 24% 1.98$ per share 2.47$ per share Shares outstanding 2009- 14.0 M 2010- 13.9 M Stock options outstanding 2009 - 0.7 M 2010 - 0.6 M

22 REVIEW OF 1st QUARTER 2011 Lower revenues in GWS, PSO, MVI, Polygon Cost 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

23 CLAUDE ROY President and Chief Executive Officer REPORT ON OPERATIONS

24 1 – FY 10 Highlights 2 – Our quest for growth 3 – Q&A Agenda 24

25 25 * 2006: C$ 2.8M for the sale of Flow system license EBITDA margin Net margin EBITDARevenues Management change Dec 08 FY 06* 27% EBITDA margin EBITDA margin (Without Capitalization) FY10 Highlights: Focus on Value Creation

26 * 2006: C$ 2.8M for the sale of Flow system license Net margin EBITDARevenues FY 06* Management change Dec 08 26 FY11 Trend: Focus on Value Creation Q1 FY 11 EBITDA margin EBITDA margin (Without Capitalization)

27 Q1 FY 11 Management change Dec 08 Technology (R&D) ExpensesSG&A ExpensesCosts of Goods FY10 Highlights: Operating Expenses Streamlining 27 23%

28 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 improvements CAD currency, in thousands of $ FY 09 vs. FY 10 Savings CGS828 SG&A9,978 Tech768 Total11,574 FY10 Highlights: EBITDA Improvements

29 29 Government Opportunities Electronic Components Computer, IT & Telecom Medical Equipment Automotive Aftermarket Wine & Spirits Diamonds & Jewelry FY10 Highlights: A Diversified Portfolio

30 30 Our quest for growth Organic M&A

31 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

32 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

33 Organic Growth: Electronic Components 33 Positive membership trend Strong demand for our escrow services

34 Organic Growth: Automotive Aftermarket 34 High single digit growth Stronger market presence New value added services

35 Organic Growth: Computer, IT, Telecom & Medical 35 New auction services Sales initiatives to increase revenues including:

36 36 Organic Growth: Diamonds & Jewelry Positive trends expected in Q2 New membership acquisition strategy Increased sales & marketing efforts

37 Organic Growth: Wine & Spirits 37 SAQ partnership: 5 year agreement renewal

38 38 Double Our Market Cap. M&A: Objective

39 M&A: Acquisition Criteria North American location Ethical & diversified business sectors Strong business models o High profitability o Transactional revenues Web solutions 39

40 Management Team 40 Claude RoyPresident and Chief Executive Officer Stéphane AnglaretVice President Technology Mark EigenbauerSenior Vice President Hélène HallakSenior Vice President and General Counsel Richard LampronVice President Research & Development Suzanne MercierChief Financial Officer Paul SaundersSenior Vice President Andreanne SimonVice President, Innovation and Business Development

41 Board Members Gilles Laurin Chartered Accountant Advisor and Director of different corporations Marc P. Brunet President and Chief Executive Officer Logibec Groupe Informatique Ltd. Jean-François Sabourin President and Chief Executive Officer FinlogiK Inc. Claude Roy Chairman and CEO Mediagrif André Courtemanche President and Chief Executive Officer VIAVAR Capital Michel Dubé Consultant Savaria Corporation André Gauthier President André Gauthier Holding Inc. 41

42 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

43 Q & A

44 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


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