Data Communications Management Corp. · TSX:DCM
Data Communications Management — Investor Presentation (March 2022)
21 slides from Data Communications Management's investor presentation, March 2022
Slide 1: The New DCM: Poised for Growth – Investor Presentation
THE NEW DCM ° cS POISED FOR dal Investor Prese . —" DATA Communicatio lanagement Corp. / \ DCM-TSx; DCMDF+OTCBB + F 7»CM THE BRAND BEHIND YOUR BRAND “AK Ly *. i ~~ March 2022
Slide 2: Forward-looking statements and non-IFRS measures
Certain statements in this presentation constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM or industry results, to be materially different from any future res
Slide 3: Who is DCM & Why Invest?
WHOIS DCM & WHY INVEST? Compagnies du groupe Group of Companies 7. Awe FIRST We =o > ~
Slide 4: Print First to Digital First
PRINT FIRST TO DIGITAL FIRST CONVENTIONAL TECH-ENABLED DIGITAL ASSET MANAGEMENT PRINT SOLUTIONS MARKETING WORKFLOW TECH-ENABLED SERVICE ee ae = DCM IS CANADA'S LEADING MARKETING AND COMMUNICATIONS PROVIDER WITH 925 EMPLOYEES SERVING 250+ ENTERPRISE CLIENTS
Slide 5: DCM Clients
of revenue from Enterprise client of revenue from DCM Clients 250 enterprise retention long-term customers rate agreements
Slide 6: Moving from Print First to Digital First
MOVING FROM PRINT FIRST TO DIGITAL FIRST INDUSTRY SECTOR CAGR: +2.24% INDUSTRY SECTOR CAGR: +15% INDUSTRY SECTOR CAGR: +21.2%* CONVENTIONAL TECH-ENABLED DIGITAL ASSET MANAGEMENT PRINT SOLUTIONS MARKETING WORKFLOW TECH-ENABLED SERVICE REVENUE: $178M REVENUE: $78.6M REVENUE: $3.4M BUSINESS PROCESS OUT
Slide 7: DCM Embedded into Clients' Digital Ecosystems
DCM EMBEDDED INTO : a” CLIENTS’ DIGITALECOSYSTEMS (iG tech-enabled revenue via DCM FLEX * Proprietary DCM FLEX technology is deeply embedded in clients’ operational and business processes * Value-added capabilities streamline processes for ordering, proofing, approvals, reporting, and regulatory com
Slide 8: Technology-Enabled Services - Growth
TECHNOLOGY-ENABLED SERVICES - G ROWTH CM | 8
Slide 9: Moving from Print First to Digital First
MOVING FROM PRINT. FIRST TO DIGITAL FIRST | INDUSTRY SECTOR.CAGR: #2.24% INDUSTRY SECTOR CAGR: +15% INDUSTRY SECTOR CAGR: +21.2% CONVENTIONAL TECHNOLOGY-ENABLED DIGITAL ASSET MANAGEMENT PRINT SOLUTIONS MARKETING WORKFLOW TECH-ENABLED SERVICE REVENUE: $178M REVENUE: $78.6M REVENUE: $3.4M DCM is Canad
Slide 10: Market Size
CAGR during companies currently Market Size using a DAM solution the period of 2020-2025 *2019 data. www.technavio.com Note: Tier 1 company – overall annual revenues >USD 10 billion; Tier 2 company – USD 1–10 billion; and Tier 3 company – USD 500 million – USD 1 billion
Slide 11: Digital Asset Management experience
• +40 years of practical Digital Asset Management experience • Already manage 1000’s of digital assets for clients daily • Currently technology-enabled service provider for many top Canadian companies 2020 2022 2025
Slide 12: Quarterly revenue
$100.0 $78.6 $77.4 $75.0 $69.6 $71.5 $63.2 $63.9 $62.4 $60.6 $57.4 $55.2 $56.9 $50.0 $25.0 $- Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
Slide 13: Gross margin: +30% target in near term
30.7% 30.1% 30.20% 29.0% 28.7% 28.0% 26.4% 24.8% 24.1% 24.5% 22.6% +30% GM target in near term Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
Slide 14: Repayment of Debt: A Significant Priority
REPAYMENT OF DEBT A SIGNIFICANT PRIORITY $79.8M Ql 2021 Q2 2021 Q@3 2021 CM | 4
Slide 15: Debt maturity profile
• $40.0 $36.3 $34.1 $30.0 $11.0 $21.4 $2.2 $21.4 $20.0 $9.4 $9.4 $2.4 $10.0 $1.7 $1.2 $9.6 $10.5 $4.9 $6.3 $9.7 $7.9 $4.7 $5.8 $- $- $2.0 $1.8 30-Sep-21 31-Dec-21 (PF) 2022 2023 2024 2025 2026 Bank Term Facility FPD III FPD IV FPD V FPD VI Crown Pro forma, assuming FPD VI $11M term loan closing effe
Slide 16: Shareholders and share price performance
Directors and Retail and Other Officers Shareholders 31.5% 46.0% 49.9M shares fully diluted ESOP (excl. Officers) 4.0% Key Shareholders Insider 8.2% 10.3% 1,000,000 $1.50 750,000 $1.00 500,000 $0.50 250,000 $- - 31/12/2020 31/01/2021 28/02/2021 31/03/2021 30/04/2021 31/05/2021 30/06/2021 31/07/2021
Slide 17: DCM Today vs. Conventional Print Solution Providers
DCM Today Conventional Print Tech-enabled Marketing DAM Tech-enabled Solution Providers Workflow providers Services Providers
Slide 18: Investment highlights
• Positioned for topline growth with • Tech enablement providing path to growth • Repayment of debt improving consumer movements - a significant priority - • Currently trading at ~3.8x EBITDA - • Positive gross margin trends - • Targeting <1x debt/EBITDA - • Re-rating opportunity as we accelerate •
Slide 19: Thank You
THANK YOU
Slide 20: James Lorimer
For more information please visit www.datacm.com or reach out to: Investor, media and corporate development inquiries James Lorimer Chief Financial Officer jlorimer@datacm.com +1(905)494-4101
Slide 21: TEV / Revenue and TEV / EBITDA peer comparables
TEV / Revenue TEV / EBITDA Company Market Cap TEV CY20 CY21 CY20 CY21 CCL Industries Inc. 10,312 11,605 2.2x 2.0x 10.8x 10.3x R. R. Donnelley & Sons Company 1,035 3,030 0.5x 0.5x 6.8x 7.1x Transcontinental Inc. 1,795 2,845 1.1x 1.1x 6.1x 6.6x Quad/Graphics, Inc. 477 1,572 0.4x 0.4x 4.6x 5.0x Ennis,
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