Slide 1: Data Communications Management Corp. Investor Presentation
DATA COMMUNICATIONS MANAGEMENT CORP. INVESTOR PRESENTATION DCM – TSX | DCMDF – OTCQX June 2025
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS INFORMATION DISCLOSURE. Forward-looking Statements Non-IFRS Measures Certain statements in this presentation constitute “forward-looking” statements This presentation includes certain non-IFRS measures as supplementary that involve known and unknown risks, uncertainties an
Slide 3: About DCM
> ABOUT DCM
Slide 4: About Us
HEAD OFFICE: Brampton, Ontario FOUNDED: ABOUT US. 1959 MARKET CANADA’S LEADING TECH- CAPITALIZATION: $99.6MM (basic) ENABLED PROVIDER OF PRINT $115.0MM (f.d.) AND DIGITAL SOLUTIONS PRESIDENT & CEO: THAT HELP SIMPLIFY COMPLEX Richard Kellam MARKETING COMMUNICATIONS LISTING: AND OPERATIONS WORKFLOW. D
Slide 5: DCM at a Glance
+400 DCM AT Enterprise clients 20 SCALE Facilities across A GLANCE. 1530 Employees Canada, U.S. 2024 Revenue $480.0M GROWTH (+7.2% vs. 2023) PROFITABILITY • Long-term client contracts 2024 Adj. EBITDA • High retention rate $63.9M (+19.7% vs. 2022) CAD $ Millions
Slide 6: What We Do
WHAT WE DO. WE PROVIDE TECH-ENABLED PRINT AND MARKETING WORKFLOW SOLUTIONS. PERSONALIZED COMMUNICATIONS BUSINESS PROCESS OUTSOURCING MARKETING SOLUTIONS
Slide 7: A Large, Fragmented Canadian Commercial Print Market
A LARGE, FRAGMENTED CANADIAN COMMERCIAL PRINT MARKET.
Slide 8: 400 Enterprise Clients
Handling massive complexity 400 ENTERPRISE Serving diverse industry verticals CLIENTS. High retention rate (>95%)
Slide 9: Diverse, Blue-Chip Clients
DIVERSE, BLUE-CHIP CLIENTS. Revenues by End Market Revenues by Client 2024 2024 Financial Top 10 All others, Retail 2% 27% 11% Clients, 30% Manufacturing 5% Services 6% Transportation $480.0M 18% 101 - 250, +2,500 Healthcare 8% 13% Lottery Next 40, 8% 51 - 100, Government 34% 9% 12% Energy 8% 9% Oth
Slide 10: Returning Capital to Shareholders
Special dividend $0.20 cash PER SHARE1 RETURNING Quarterly dividend CAPITAL TO SHARE- $0.025 cash PER SHARE HOLDERS. Dividend yield 5.6% 2 1. Paid on March 25, 2025, to shareholders of record on March 12, 2025 2. Implied dividend yield calculated as at June 3, 2025
Slide 11: Q1 2025 Summary
> QI 2025 SUMMARY
Slide 12: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS Q1 2025 MARKET LEVERAGING NEW BUSINESS RESULTS UNCERTAINTY AI-CAPABILITIES DEVELOPMENT ✓ Results in line with our ✓ Closely monitoring market ✓ Pipeline remains the ✓ ASMBL new logo wins in expectations sentiment strongest in recent history retail, healthy pipeline of ✓ Adjusted E
Slide 13: Q1 2025 Summary Financial Results
Q1 2025 SUMMARY Financial Results Selected financial information Q1 2025 Q1 2024 Better/(Worse) Revenue $123.7 $129.3 ($5.6) Gross profit $36.3 $37.3 ($1.1) Gross Margin (%) 29.3% 28.9% +40 bps SG&A $24.6 $25.4 +$0.8 QUARTER Restructuring expenses $0.0 $1.1 +$1.1 ENDED Acquisition & Integration Cost
Slide 14: Fiscal 2024 Financial Results
FISCAL 2024 FINANCIAL RESULTS
Slide 15: 2024 Revenues
2024 REVENUES. $500.0 $480.0 $447.7 $400.0 2024 Revenues +$32.3M and +7.2% vs. 2023 (in $millions) $300.0 $273.8 $235.3 $200.0 3-YR CAGR 26.8% $100.0 $- 2021 2022 2023 2024
Slide 16: 2024 Gross Profit
2024 GROSS PROFIT. $150.0 80.0% $130.1 70.0% $118.9 2024 Gross Profit +$11.2M and +9.4% 60.0% vs. 2023 Gross Profit (in $millions) $100.0 Gross Margin $84.2 50.0% 2024 Gross Margin $69.5 40.0% +50BPS vs. 2023 30.0% $50.0 30.8% 29.5% 26.6% 27.1% 20.0% 3-YR CAGR 10.0% 23.2% $- 0.0% 2021 2022 2023 2024
Slide 17: 2024 Adjusted EBITDA
2024 ADJUSTED EBITDA. $75.0 50.0% $63.9 2024 Adjusted 40.0% EBITDA $53.4 +$10.5M and +19.7% Adjusted EBITDA (in $millions) vs. 2023 Adjusted EBITDA Margin $50.0 $41.0 30.0% $35.6 Adjusted EBITDA Margin 20.0% +140BPS $25.0 vs. 2023 15.1% 15.0% 13.3% 10.0% 11.9% 3-YR CAGR 21.5% $- 0.0% 2021 2022 2023
Slide 18: Revenue by Reporting Segment
REVENUE BY REPORTING SEGMENT. $20.0 $500.0 $14.7 $400.0 Tech-enabled Services & Fees $418.5 $396.3 Higher margin tech-services (in millions) $5.3 revenue of $20M, +$14.7M or $300.0 277% vs. 2022 (pre-MCC) $200.0 $239.4 4.2% of total revenue vs. 1.9% in 2022 $100.0 Product Sales $418.5M, up from $239
Slide 19: Driving Record Productivity
DRIVING RECORD PRODUCTIVITY. Revenue per Employee1 vs. Active # of Employees 3,000 $312.0 $314.5 $300.9 Revenue per Employee (in $thousands) $300.0 $290.9 2,500 Revenue per employee grew to $314.5k $255.2 2,000 +1% vs. 2023 +8% vs. MCC acquisition 1,872 1,732 1,500 1,526 Operational & organizational
Slide 20: Platform for Profitable Growth
PLATFORM FOR PROFITABLE GROWTH
Slide 21: Well Positioned in Current Environment
Well positioned IN CURRENT ENVIRONMENT. Well capitalized with $45 million in available capital Solid cash flow generation with no material restructuring costs expected Well prepared for any revenue impact from potential tariffs Ability to pass through material cost inflation Positioned to execute on
Slide 22: Strong Balance Sheet to Pursue Growth Objectives
STRONG BALANCE SHEET TO PURSUE GROWTH OBJECTIVES. Net Debt and Net Debt to pro forma Total Credit Availability (in millions) Adjusted EBITDA1 $45.0 $160.0 $145.7 10.0x 9.0x $40.0 8.0x Net Debt (in $millions) $120.0 $20.0 7.0x $90.8 Accordian $85.8 6.0x $78.9 $80.0 5.0x Excess 4.0x availability $20.0
Slide 23: All in on Growth
ALL IN ON GROWTH 2025 Team shifted from integration to new business development PIPELINE PRIMED TO CONTRIBUTE IN 2H 2025 ✓ Solid double-digit year over year growth in active pipeline and new revenue opportunities ✓ 22% of new business wins from new logos (incl. financial, government, health care) ✓
Slide 24: Unlocking New Market Potential
UNLOCKING NEW MARKET POTENTIAL ENHANCED PRODUCT CATEGORIES IN GROWTH MARKETS PRIME LABELS PAPERBOARD PACKAGING CARD ENCODING/AFFIXING • Cosmetics • Beverage • Loyalty programs • Beverage • Nutraceuticals • Healthcare • Healthcare • Grocery In-store • Health & Beauty • Household • Meal delivery • Hos
Slide 25: Growth Beyond Boundaries
GROWTH BEYOND BOUNDARIES Expanding into new vertical markets GROCERY AUTOMOTIVE QSR FUEL/C-STORE TELCO RETAIL AGENCY CPG
Slide 26: AI-Enabled Marketing Platform
AI-ENABLED MARKETING PLATFORM Displaced Not For Profit Global CPG Incumbent DAM at a Case Study Case Study Schedule 1 Bank
Slide 27: 2025 Priorities
2025 PRIORITIES Drive profitable organic growth by leveraging our expanded suite of tech-enabled offerings, strengthening our presence in key industry verticals and securing new business wins. Deliver a return on new capital investments focused on enhancing our production capabilities and positionin
Slide 28: Long Term Financial Objectives
LONG TERM FINANCIAL OBJECTIVES. REVENUES GROSS PROFIT ADJUSTED EBITDA1 % OF REVENUES % OF REVENUES In excess of +14% +5% CAGR Return to +30% on annual basis We are reiterating our long-term objectives for growth and profitability 1. Adjusted EBITDA is a non-IFRS measure, for a reconciliation to its
Slide 29: Investment Highlights
> INVESTMENT HIGHLIGHTS
Slide 30: Capitalization and Ownership
CAPITALIZATION AND OWNERSHIP Ownership summary Capitalization “DCM” on TSX (Fully diluted) Recent Share Price (June 3, 2025) $1.80 Directors and Officers 52 week high/low $3.08/$1.52 (26.7%) Common Shares Outstanding 55.3M Options ($1.18 average ex. price) 4.2M ESOP (excl. Warrants ($3.16 average ex
Slide 31: Highlights
HIGHLIGHTS Leading position in the Canadian market Focused on profitable growth Track record of debt reduction and cash flow generation MCC integration and synergy realization completed Future growth enhanced by technology innovation and M&A Experienced leadership team that delivers results
Slide 32: Contact Information
For more information, please visit www.datacm.com or for investor, media and corporate development inquiries reach out to: CONTACT RICHARD KELLAM JAMES LORIMER INFORMATION President & CEO Chief Financial Officer rkellam@datacm.com jlorimer@datacm.com +1 (416) 451-1117 +1 (905) 494-4101 DCM – TSX | D
Slide 33: Q1 2025 Non-IFRS Accounting Standards Measures
Q1 2025 NON-IFRS ACCOUNTING STANDARDS MEASURES
Slide 34: EBITDA and Adjusted EBITDA Reconciliation
EBITDA AND ADJUSTED EBITDA RECONCILIATION The following table provides reconciliations of net (loss) income to EBITDA and of net (loss) income to Adjusted EBITDA for the periods noted, following adoption of “net fair value (gains) losses on financial liabilities at fair value through profit or loss”
Slide 35: Adjusted Net Income Reconciliation
Adjusted Net Income RECONCILIATION The following table provides reconciliations of net income to Adjusted net income and a presentation of Adjusted net income per share for the periods noted. . See “Non-IFRS Accounting Standards measures” section in our most recent interim and annual filings on SEDA
Slide 36: FY2024 Non-IFRS Accounting Standards Measures
FY2024 NON-IFRS ACCOUNTING STANDARDS MEASURES
Slide 37: EBITDA and Adjusted EBITDA Reconciliation
EBITDA AND ADJUSTED EBITDA RECONCILIATION The following table provides reconciliations of net (loss) income to EBITDA and of net (loss) income to Adjusted EBITDA for the periods noted, following adoption of “net fair value (gains) losses on financial liabilities at fair value through profit or loss”
Slide 38: Adjusted Net Income Reconciliation
Adjusted Net Income RECONCILIATION The following table provides reconciliations of net income to Adjusted net income and a presentation of Adjusted net income per share for the periods noted. . See “Non-IFRS Accounting Standards measures” section in our most recent interim and annual filings on SEDA
Slide 39: Thank You
we =6T HANK YOU