42 slides from Data Communications Management's conference presentation, May 4, 2022
Slide 1: Planet MicroCap Showcase 2022
Presentation to: Planet MicroCap Showcase 2022 DATA Communications Management Corp. DCM-TSX DCMDF-OTCQX May 4, 2022 All numbers reported in Canadian Dollars
Slide 2: Forward-looking Statements and Information Disclosure
Forward-looking Statements Information Disclosure Forward-looking Statements Non-IFRS Measures Certain statements in this presentation constitute “forward-looking” statements that involve This presentation includes certain non-IFRS measures as supplementary information. In known and unknown risks, u
Slide 3: What I Want to Accomplish Today
What I Want to Accomplish Today 1. Who is DCM and What Do We Do 2. Our “Better and Bigger” Journey 3. Why Invest in DCM 3
Slide 4: Who is DCM and What Do We Do
Who is DCM and What Do We Do DCM *
Slide 5: Strategic Direction
Strategic Direction From print first to digital first Complex conventional Tech-enabled Digital asset management print solutions marketing workflow enterprise cloud service Marketing Business Print on solutions process demand outsourcing
Slide 6: Representative Products / Solutions
Representative Products / Solutions Complex • Highly complex print workflow Conventional Print Solutions • High SKU low volume specialty • Enterprise commercial print Key Drivers to Growth • Canadian market leader • Move from Performance Culture to +$9 Billion Market Growth Culture 2-3% CAGR • Stron
Slide 7: Representative Products / Solutions
Representative Products / Solutions • Marketing workflow solutions Tech-enabled Marketing Workflow • Personalized communications • BPO logistics Key Drivers to Growth Marketing Business Print on solutions process outsourcing demand • Migrating conventional print clients to tech-enabled • Automating
Slide 8: Proprietary Platform, Deeply Embedded in Clients' Workflows
Proprietary Platform, Deeply Embedded in Clients’ Workflows 100+ active clients +230K 8,000 total user count active daily users +300K 70+ third-party orders processed application per year integrations 8
Slide 9: Deeply Entrenched Client Relationships
Deeply Entrenched Client Relationships 2,500+ 93% 97% +70% of revenue from 250 Enterprise client of revenue from DCM Clients enterprise customers retention rate long-term agreements Financial Retail Healthcare Consumer health Energy NFP Specialty DCM serves over 70 of the 100 largest corporations in
Slide 10: Representative Products/Solutions
Representative Products/Solutions • Digital asset management • Cloud-based marketing technology Digital Asset solutions Management (DAM) Enterprise Cloud Service • Professional services & implementation fees Key Drivers to Growth • ARR / Subscription model +$5.2 Billion • +40 years of practical expe
Slide 11: Better and Bigger Business
Better and Bigger Business 11
Slide 12: Better Business
Better Business 1. Headcount Reduction and Productivity Improvements 12
Slide 13: Headcount Reduction & Productivity Improvements
1. Headcount Reduction & Productivity Improvements Headcount at End of Period Revenue per Employee* (thousands) $255.2 $231.7 $240.6 1,411 1,433 $225.2 $205.2 1,221 1,078 922 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 -14.5% vs. prior year +6.1% vs. prior year -34.7% vs. 2017 +24.4% vs. 2017
Slide 14: Better Business
Better Business 1. Headcount Reduction and Productivity Improvements 2. Factory Consolidation & Operational Efficiencies 14
Slide 15: Factory Consolidation and Operational Efficiencies
2. Factory Consolidation and Operational Efficiencies Brampton Calgary Digital inkjet consolidation consolidation capabilities +$1.8M +$.75M +$1M Overhead savings Overhead savings OPEX savings 15
Slide 16: Better Business
Better Business 1. Headcount Reduction and Productivity Improvements 2. Factory Consolidation & Operational Efficiencies 3. Office Consolidation & Overhead Reductions 16
Slide 17: Office Consolidation and Overhead Reductions
3. Office Consolidation and Overhead Reductions Hybrid Leadership Other headcount work model optimization savings +$0.8M +$3.9M +$6.7M Overhead savings Overhead savings Overhead savings 17
Slide 18: Summary of Savings Initiatives
Summary of Savings Initiatives Significant long-term benefits from 2021 operational initiatives ~$14M of Annualized Savings 18
Slide 19: Better Business
Better Business 1. Headcount Reduction and Productivity Improvements 2. Factory Consolidation & Operational Efficiencies 3. Office Consolidation & Overhead Reductions 4. Debt Reduction & Refinancing 19
Slide 20: Debt Reduction
4. Debt Reduction Total Debt Outstanding (millions) $79.8 $64.8 $65.1 $48.2 $37.1 2017 2018 2019 2020 2021 -23.0% vs. 2020 -53.5% vs. 2019 Lowest debt since before our IPO in 2004 20
Slide 21: Current Term Debt Maturity Profile
4. Current Term Debt Maturity Profile Outstanding term credit facility balances (millions) $40.0 $34.1 $30.0 $11.0 $21.4 $2.2 $20.0 $9.4 $9.4 $1.2 $9.6 $10.0 $1.7 $4.9 $6.3 $4.7 $9.7 $7.9 $5.8 $- $- $1.8 31-Dec-21 2022 2023 2024 2025 2026 Bank Term Facility FPD III FPD IV FPD V FPD VI Excludes revol
Slide 22: Better Business
Better Business 1. Headcount Reduction and Productivity Improvements 2. Factory Consolidation & Operational Efficiencies 3. Office Consolidation & Overhead Reductions 4. Debt Reduction & Refinancing 5. ESG & Other Initiatives 22
Slide 23: ESG and Other Initiatives
5. ESG and Other Initiatives Partnership Statistics DCM customers have collectively offset 17.2M lbs of paper consumption by reforesting 207K trees since DCM / PrintReleaf partnership in October 2021. 23
Slide 24: Better and Bigger Business
Better and Bigger Business 24
Slide 25: Bigger Business
Bigger Business 1. Continued Revenue Momentum in First Quarter of 2022 25
Slide 26: Continued Revenue Momentum in Q1 2022
1. Continued Revenue Momentum in Q1 2022 Quarterly Revenue (millions) ~$69.0 $62.4 $60.9 $55.2 $56.9 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 2022 +11% y/y represents best comparative quarter since 2018
Slide 27: Bigger Business
Bigger Business 1. Continued Revenue Momentum in First Quarter 2022 2. Continued Gross Profit Momentum in First Quarter 2022 27
Slide 28: Continued Gross Profit Momentum in Q1 2022
2. Continued Gross Profit Momentum in Q1 2022 Quarterly Gross Profit (millions) ~$20.0 $18.8 $17.7 $17.2 $15.8 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 2022 Gross Profit +8% vs. Q1 2021
Slide 29: Bigger Business
Bigger Business 1. Continued Revenue Momentum in First Quarter 2022 2. Continued Gross Profit Momentum in First Quarter 2022 3. New Business Wins 29
Slide 30: New Business Wins
3. New Business Wins New logos across a wide variety of vertical markets Financial Healthcare Regulated Retail Manufacturing Hospitality Lottery services industries services 30
Slide 31: Bigger Business
Bigger Business 1. Continued Revenue Momentum in First Quarter 2022 2. Continued Gross Profit Momentum in First Quarter 2022 3. New Business Wins 4. Committed to “Clean” EBITDA Growth 31
Slide 32: Committed to "Clean" EBITDA Growth
4. Committed to “Clean” EBITDA Growth Quarterly EBITDA (millions) ~$9.4 $7.3 $6.4 $6.4 $5.0 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 2022 EBITDA up ~30% vs. Q1 2021
Slide 33: Committed to "Clean" EBITDA Growth
4. Committed to “Clean” EBITDA Growth ZERO ZERO Restructuring Restructuring Expenses Expenses Q1 2022 Fiscal 2022 Outlook 33
Slide 34: Bigger Business
Bigger Business 1. Continued Revenue Momentum in First Quarter 2022 2. Continued Gross Profit Momentum in First Quarter 2022 3. New Business Wins 4. Committed to “Clean” EBITDA Growth 5. Digital Acceleration 34
Slide 35: Digital Acceleration
5. Digital Acceleration • Leveraging +40 years of workflow management and DAM expertise • Converting conventional print workflows to tech-enabled • Pipeline of +$10M of tech-services / SAAS revenue, across +50 clients 35
Slide 36: Why Invest in DCM
Why Invest in DCM DcM *
Slide 37: Clear Five-year Targets
Clear Five-year Targets From print first to digital first 5%+ 35-40% 18-20% 18-22% <1.0x Revenue CAGR Gross margins SG&A Adjusted EBITDA Debt / EBITDA 37
Slide 38: Attractive Valuation
Attractive Valuation DCM Conventional Print Tech-enabled DAM / SaaS Today Solution Providers Marketing Enterprise Cloud Workflow Providers Services MULTIPLE OF ENTERPRISE VALUE | REVENUE 0.7X 1.0X 1.5X 6.2X MULTIPLE OF ENTERPRISE VALUE | EBITDA 4.6X 7.0X 10.3X 21.3X
Slide 39: Digital Start-up with:
Digital Start-up with: • 250 enterprise clients Clients • +2,000 SME clients • Penetration across 8 key verticals • +60 commercial sales reps • +40 years managing digital assets Capabilities • Advanced tech-enabled workflow • API architecture • Significant install base of FLEX- enabled applications
Slide 40: Committed Insider Ownership
Committed Insider Ownership Ownership summary “DCM” ON Capitalization TSX (Fully diluted) Recent Share Price (April 22, 2022) $1.25 Directors Retail and and Common Shares Outstanding 44.1M Other Officers Shareholders Options ($0.97 average ex. price) 4.7M 31.1% 46.9% Warrants ($0.28 average ex. pric
Slide 41: "Momentum Builds Momentum"
“Momentum Builds Momentum” • Clear strategy: Digital first Strong exit to 2021 • Building a Better and Bigger business • Core business is strong Fast start • Digital business well positioned for to 2022 growth 41
Slide 42: Thank You
Thank You For more information, please visit www.datacm.com or reach out to: Richard Kellam President & CEO rkellam@datacm.com +1(416)451-1117 DCM - TSX DCMDF - OTCQX 42