Ciscom Corp. · CSE:CISC
Ciscom — Investor Presentation (August 2024)
25 slides from Ciscom's investor presentation, August 2024
Slide 1: Corporate Presentation
CORPORATE PRESENTATION ACQUIRING AND MANAGING COMPANIES IN THE ICT SECTOR AUGUST 2024 CSE: CISC, OTCQB: CISCF
Slide 2: Disclaimer
DISCLAIMER CORPORATE PRESENTATION This corporate presentation (the “Presentation”) has been prepared by Ciscom Corp. (“Ciscom” or the “Company”) management and is based on public information and the Company’s confidential information. This Presentation is for information purposes only and is being m
Slide 3: Wealth Transition
Wealth Transition CISCOM CORP. Entrepreneurs’ Exits CSE: CISC, OTCQB: CISCF
Slide 4: Ciscom creates opportunities for SME entrepreneurs
Ciscom creates opportunities for SME entrepreneurs Private companies are in need of succession plans In Canada alone, there are over 300,000 Boomer owned businesses, employing under 20 people, representing 7% to 8% of GDP.* These businesses do not have defined succession plans. This creates a great
Slide 5: The Market
The Market Canadian ICT Sector The Coming Intergenerational Ciscom’s potential acquisition targets Wealth Transfer are businesses in the Information and Demographics show that there will be a massive Communications (ICT) which has over wealth transfer in the next couple of decades as 30,000 operatin
Slide 6: Ciscom's Business Model
Ciscom’s Business Model ➢ Ciscom actively invests in, acquires, and manages market leading companies in the Information and Communication Technology (ICT) sector. ➢ Targeting SMEs with proven profitability. ➢ This approach allows entrepreneurs to monetize their equity and continue contributing, enha
Slide 7: ICT Industry Focus
ICT Industry Focus ➢ Ciscom’s areas of focus: ➢ Big Data Analytics ➢ Artificial Intelligence (AI) Driven SaaS Platforms ➢ Digital/Online marketing & Communications ➢ Social media integration ➢ Content management & delivery ➢ Application Programming Interface (API) ➢ Process automation & Work-flow ➢
Slide 8: Ciscom's Advantage
Ciscom’s Advantage ➢ Ciscom becoming a significant market force through: ➢ Capitalizing on Entrepreneurs’ exits ➢ Providing attractive wealth transfer/succession ➢ Buying at private company multiples ➢ Harnessing talent, smarts and agility of independent entrepreneurs ➢ Exponentially enhancing indiv
Slide 9: Growth Capital Requirement
Growth Capital Requirement ➢Self-Funded: ➢ Operations are cash flow positive (audited 2023 FS) ➢ Positive cash EBITDA and Net Income ➢Growth Capital: ➢ Acquisitions ➢ Acceleration of Strategic Plan ➢ Seeking Private Placement ➢ Accordion facility ➢ Follow-up capital is of definitive interest 9 CSE:
Slide 10: Profitable Growth Objectives
Profitable Growth Objectives 2023 ➢ Revenue of $35.2M (audited) ➢ Normalized Cash EBITDA of $1.8M 2024 to 2029 ➢ Averaging 3 acquisitions per year starting in 2025 ➢ Targets averaging ~$17.5M in revenue ➢ Margin improvement through consolidation and cost synergies ➢ 2029: 2024 2025 2026 2027 2028 20
Slide 11: Methodology
Methodology CISCOM CORP. Success Formula CSE: CISC, OTCQB: CISCF
Slide 12: The Workings
The Workings ➢ Ciscom buys SMEs (small and medium size enterprises) ➢ Pays attractive, yet lower multiples in relation to being private, size and silo operations ➢ Purchase price is cash plus shares, inclusive of earn-out ➢ Tailored to each transaction ➢ Keeps acquisition price lower ➢ Provides the
Slide 13: Performance Accelerators
Performance Accelerators ➢ The Entrepreneur/Founder continues to manage with Ciscom’s support framework: ➢ Governance matrix and delegation of authority ➢ Business Plan; Banking and borrowing; Real estate, legal, audit, insurance ➢ Budget & Capex; Senior staffing; M&A ➢ Management deep/diversified c
Slide 14: Leverages & Synergies
Leverages & Synergies ➢ Accelerate growth by providing Ciscom products and services from each operation, including: ➢ Sales staffing and new business development ➢ Cross-selling clients on the different products & services offerings ➢ Geographic expansion opportunities ➢ Minimizing costs through sha
Slide 15: Ciscom Successes
Ciscom Successes ➢ Closed 2 acquisitions to date (wholly-owned): ➢ Market Focus Direct (MFD) on August 31, 2021 ➢ Prospect Media Group (PMG) on Sept 30, 2022 “With our complementary businesses, CISCOM is set to take on a leadership role in the ➢ Significant leverage and synergies Ad/MarTech sector.
Slide 16: For Entrepreneurs Divesting
For Entrepreneurs Divesting ➢ Provide an attractive exit to entrepreneurs/owners ➢ Pay a solid market multiple of EBITDA (fair valuation/purchase price) ➢ Considerations are cash and shares of a public company ➢ Entrepreneurs’ decision to stay or to retire after a defined transition period ➢ Busines
Slide 17: Financial Performance
Financial CISCOM CORP. Performance CSE: CISC, OTCQB: CISCF
Slide 18: Financials
Financials 31Dec2023 YTD 30Jun2024 (12 months) (6 months) (Audited) (Not audited) Sound revenue base $35.2M $17.3M Gross Profit $6.9M $3.2M Gross Profit growth 200.5% 19.5% Cash Adjusted EBITDA $1.3M $0.8M Cash Adjusted Net Income (Loss) $0.4M $0.6M ➢ Positive Operating Cash Flows ➢ Self-funding/suf
Slide 19: F2023 Sales & Gross Profit
F2023 Sales & Gross Profit Consolidated IFRS For the 12-month period ended December 31 2023 2022 Year-over-year Variance ➢Acquisition and organic growth $ $ $ % ➢New clients Sales 35,160,166 14,766,407 20,393,758 138.1% ➢Cross-selling products & services Cost of Sales 28,254,303 12,468,249 15,786,05
Slide 20: F2023 Results – Cash Basis
F2023 Results – Cash Basis Non-IFRS Information and Measures Adjusted EBITDA (Operating Loss) - Cash Basis For the 12 months ended December 31 ➢ Positive Cash-Flows from 2023 2022 Increase (Decrease) Operations $ $ $ EBITDA 386,017 (698,291) 1,084,308 Non-Cash Items in Operating Expenses 957,016 327
Slide 21: Q2 YTD F2024 Sales & Gross Profit
Q2 YTD F2024 Sales & Gross Profit June 30 YTD 2024, 2023 & 2022 Sales and Gross Profit 2024 2023 2022PF YoY Increase to Actual Increase 2024 to 2022PF $ $ $ $ % $ % Sales 17,273,048 14,188,668 14,186,152 3,084,380 21.7% 3,086,896 21.8% Gross Profit 3,170,469 2,653,772 2,595,466 516,696 19.5% 575,003
Slide 22: Q2 YTD F2024 Results – Cash Basis
Q2 YTD F2024 Results – Cash Basis Non-IFRS Information and Measures Adjusted Net Income (Net Loss) - Cash Basis For the 6 months ended June 30 Increase ➢ Positive Cash-Flows from 2024 2023 (Decrease) $ $ $ Operations Net Loss (186,338) (1,065,362) (879,024) Non-Cash Items ➢ Significant level of Non-
Slide 23: Issued & Outstanding Shares
Issued & Outstanding Shares ➢Total shares issued: 53,563,833 100.0% ➢ Free trading shares: 35,554,700 66.4% ➢ Escrowed/restricted shares: 18,009,133 33.6% ➢ Total shares traded to date: 12.9M 48.2k/day (since June 30, 2023) ➢ Stock Options (avg strike price of $0.27.2, last maturity June 2029) 3.918
Slide 24: Forward Looking Statements
Forward Looking Statements Certain statements in this disclosure may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially di
Slide 25: Contact Us
CONTACT US CSE: CISC, OTCQB: CISCF