Slide 1: Building a Big Data and MarTech Powerhouse
BUILDING A BIG DATA AND MARTECH POWERHOUSE CSE: CISC, OTCQB: CISCF November 2024 1
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: Entrepreneurs are in need of succession plans
Entrepreneurs are in need of succession plans Ciscom creates opportunities Wealth Transfer for with Small and Medium Businesses (SME) In Canada, there are over 300,000 Boomer owned businesses, employing under 20 people. Source: Statistics Canada $31 Billion: Estimated Net Worth transfers in the next
Slide 4: Ciscom invests in established businesses
Ciscom invests in established businesses: Sales/revenue of $5M to $30M Gross profit $2.5M+ 4+ years history Growth minded Profitable Cash flow positive Ciscom is publicly traded CSE: CISC, OTCQB: CISCF 4 CSE: CISC, OTCQB: CISCF
Slide 5: AdTech & MarTech Sector
ADTECH & MARTECH SECTOR “The AdTech market is projected to grow from USD $579.4 billion in 2023 to USD $1,496.2 billion by 2030, at a compound annual growth rate (CAGR) of 14.5%” MarketsandMarkets report “The USA AdTech market size was estimated at USD $276.3 billion in 2023 and is projected to grow
Slide 6: Our Segments Focus
OUR SEGMENTS FOCUS Big Data Analytics Ciscom’s areas of focus: Digital/Online/Offline Advertising, Marketing & Communications All forms – broad market Social Media Content Management Business Intelligence Artificial Intelligence (AI) Driven SaaS Platforms Application Programming In
Slide 7: Our Advantage
OUR ADVANTAGE CISCOM IS BECOMING A SIGNIFICANT MARKET FORCE THROUGH: Mergers & Acquisitions Attractive wealth transfers/successions Harnessing talent, smarts and agility of independent entrepreneurs Exponentially enhancing individual contributions Uniting forces to create an AdTech/MarTech
Slide 8: Our Profitable Growth Objectives
OUR PROFITABLE GROWTH OBJECTIVES 2023 Revenue of $35.2M (audited) Cash-adjusted EBITDA of $1.8M 2024 to 2029 Averaging 3 acquisitions per year starting in 2025 Targets averaging $15M to $20M in revenue p.a. Margin improvement through consolidation and cost synergies 2029: Sales of $341
Slide 9: Shareholder Value Creation
SHAREHOLDER VALUE CREATION 9 CSE: CISC, OTCQB: CISCF
Slide 10: Our Performance
OUR PERFORMANCE SELF-FUNDED: 31-Dec-22 31-Dec-23 YTD 30Sep24 Operations are cash flow positive (12 months) (12 months) (9 months) in $millions (Audited) (Audited) (Not Audited) Positive cash EBITDA and Net Growing Revenue Base $14.8 $35.2 $25.9 Income Gross Profit $2.3 $6.9 $4.7 Gross Profit Gr
Slide 11: Our Issued & Outstanding Shares
OUR ISSUED & OUTSTANDING SHARES Issued & Outstanding Self-Funded: Operations are cash flow Total shares issued: 53,563,833 100.0% positive Free trading shares: 35,554,700 66.4% Positive cash EBITDA and Net Escrowed/restricted shares: 18,009,133 33.6% Income Public Share Float Growth
Slide 12: AdTech & MarTech Valuation Multiples
ADTECH & MARTECH VALUATION MULTIPLES “… the median EV/Revenue multiple for AdTech companies eaching 2.7x in Q4 2024.” Source: Ycharts (finerva.com) “… In Q4 2023, the median EV/EBITDA multiple for AdTech companies was 14.2x.” Source: Ycharts (finerva.com) Applying these multiples to Ciscom’s 2023 re
Slide 13: Economic Environment
ECONOMIC ENVIRONMENT 5 MAJOR REASONS TO INVEST IN SMALLER CAP ISSUERS (SCI) NOW: The movement or rotation of investment to SCI is just getting started Interest rates are coming down – significantly increasing net profit and cash flows SCI have better earnings growth potential SCI are underva
Slide 14: Building Shareholder Value
BUILDING SHAREHOLDER VALUE FACTORS INFLUENCING MARKET CAPITALIZATION (VALUATION): Fundamentals: Growing Revenue Growing profits High Client Retention Growing cash flows Employee Engagement Investing in tomorrow Low Staff Turnover Industry leadership External Factors: ~ Mixed e
Slide 15: Building Shareholder Value
BUILDING SHAREHOLDER VALUE FACTORS INFLUENCING THE MARKET CAPITALIZATION (VALUATION): Market Sentiments: General Perception Board Experience Management Expertise Financial Performance Growing Cash Flows Right time, right place Business model 15 CSE: CISC, OTCQB: CISCF
Slide 16: Building Our Shareholder Value
BUILDING OUR SHAREHOLDER VALUE CISCOM IS: Forward Looking Building from Strength Entering a New Market Cycle Acquiring Businesses Delivering on its Mandate Positioned for Value Creation 16 CSE: CISC, OTCQB: CISCF
Slide 17: Management and Directors
MANAGEMENT AND DIRECTORS Solid and Experienced Management / Board of Directors Michel Pepin, CPA, CA: President & CEO (director) Paul Gaynor: Board Chair (director) Dave Mathews: President PMG/MFD (director) Eric Klein, CPA, CA, CBV: President Klein Advisory Services (ind. director) Step
Slide 18: Contact Us
CONTACT US 18 CSE: CISC, OTCQB: CISCF
Slide 19: Appendices: Methodology & Success Formula
APPENDICES: METHODOLOGY & SUCCESS FORMULA 19 CSE: CISC, OTCQB: CISCF
Slide 20: Our Workings
OUR 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 21: Our Performance Accelerators
OUR 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/diversifie
Slide 22: Our Leverages & Synergies
OUR 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
Slide 23: Our Successes
OUR SUCCESSES Closed 2 acquisitions to date (wholly-owned): Market Focus Direct (MFD) on August 31, 2021 “With our complementary businesses, CISCOM Prospect Media Group (PMG) on Sept 30, 2022 is set to take on a leadership role in the Ad/MarTech sector. As an entrepreneur, I’ve Significant l
Slide 24: 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 25: Appendices: Financials
APPENDICES: FINANCIALS 25 CSE: CISC, OTCQB: CISCF
Slide 26: Q3 YTD F2024 Sales & Gross Profit
Q3 YTD F2024 SALES & GROSS PROFIT YTD September 30, 2024 versus 2023 and 2022 Actual Actual Actual 2024 to 2023 2024 to 2022 2024 2023 2022 $ % $ % Sales 25,887,712 21,464,404 2,086,543 4,423,308 20.6% 23,801,169 1140.7% Cost of Sales 4,725,994 4,181,841 391,852 544,153 13.0% 4,334,142 1106.1% Gross
Slide 27: Q3 YTD F2024 Results – Cash Basis
Q3 YTD F2024 RESULTS – CASH BASIS Non-IFRS Information and Measures Adjusted Net Income (Net Loss) - Cash Basis For the 9 months ended September 30 Positive Cash-Flows 2024 2023 Increase (Decrease) from Operations Net Loss $ (337,304) $ (1,095,606) $ (758,302) Significant level of Non- Non-Cash
Slide 28: F2023 Sales & Gross Profit
F2023 SALES & GROSS PROFIT Gross Profit up 200.5% for F2023 to prior year Acquisition and organic growth New clients Cross-selling products & services Increased Gross Profit Added volumes Leveraging Improved Margin Procurement synergies Exited unprofitable accounts 28 CSE: CISC, OTCQB: CISC
Slide 29: F2023 Results – Cash Basis
F2023 RESULTS – CASH BASIS Non-IFRS Information and Measures Adjusted EBITDA (Operating Loss) - Cash Basis Positive Cash-Flows from For the 12 months ended December 31 Operations Increase 2023 2022 (Decrease) $ $ $ EBITDA 386,017 (698,291) 1,084,308 Significant level of Non- Non-Cash Items in Op
Slide 30: 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