Data Communications Management Corp. · TSX:DCM
Data Communications Management — Investor Presentation (November 2021)
26 slides from Data Communications Management's investor presentation, Nov 3, 2021
Slide 1: From Low-Tech, High-Touch to High-Tech, Low Touch
MARKETING FROM LOW-TECH, HIGH-TOUCH TO HIGH-TECH, LOW TOUCH November 3, 2021 1
Slide 2: Low Tech, High Touch
MARKETING LOW TECH, HIGH TOUCH Eventually c o m panie s C o n s u m e r s s h o p p e d via promoted their brands stores a n d catalogues. via te l e v is io n. C o m p a n i e s p r o m o te d t h e ir brands primarily via p r i n t a n d radio . 1920s 1900s 1940s 2
Slide 3: Rise of Digital
MARKETING RISE OF DIGITAL Tim Berners-Lee and Internet penetration The launch of Amazon in With email communication his team launched grew, jumping from 1994 marked the came email marketing, Search engines emerged. the World Wide Web. 16 million to 70 emergence of ecommerce. and other engagement Goo
Slide 4: Decline of Physical
MARKETING DECLINE OF PHYSICAL From DVDs/CDs to Rise of the digital Emergence of social digital audio files economy sharing New modes of communication brought new advertising platforms, marketing channels, and new consumer behaviour trackers. 2000s 4
Slide 5: High Tech, Low Touch
MARKETING HIGH TECH, LOW TOUCH The rise of smartphone Online and mobile Consumer data trails adoption marks the shopping begin to claim a and corresponding beginning of constant larger proportion of data analytics are connectivity. retail sales. used to understand the customer journey. Growing media
Slide 6: My Story
MY STORY 1987 2017 Brand Manager Chief Marketing Officer 6
Slide 7: Martech Innovation
MARTECH INNOVATION 7
Slide 8: Growth of Martech
GROWTH OF MARTECH 9000 8000 8000 7040 6829 7000 5381 6000 5000 3874 5,233% 4000 GROWTH 3000 1876 2000 947 350 1000 150 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 8
Slide 9: Growth of Martech
GROWTH OF MARTECH -8.7% 1 in 5 +1650% churn rate Solutions were not here growth last year 9
Slide 10: Martech Landscape
MARTECH LANDSCAPE Nxa0vécade Baie ADG) KG) Foca SOMIZER ae speepppc Experian, RSTO Fh eee Search & Social Advertising QuanticMinde adtuo Swyd Ad tuo SwydoTh TreCicks SUNT Serzon/ Otrustads(g th the next ‘aa Sapien | tRik © Perigans yey media = WordS' Se eee ROPT ALLE Soma ey aptmz © TARGETO)> Bing «
Slide 11: Advertising & Promotion, Commerce & Sales
ADVERTISING et : a0 pote COMMERCE & PROMOTION % a ace = & SALES
Slide 12: Martech Today
MARTECH TODAY $335 Billion $130 Billion 44% 12
Slide 13: Highest Growth Segments
HIGHEST GROWTH SEGMENTS DATA, GOVERNANCE, 68% COMPLIANCE WORKFLOW Workflow 41% MANAGEMENT Management CONVERSATIONAL 70% MARKETING 13
Slide 14: Why
WHY 14
Slide 15: Individual Connections
INDIVIDUAL CONNECTIONS Boomers Gen X Millennials Gen Z 15
Slide 16: Complexity
COMPLEXITY Data Governance Compliance 16
Slide 17: Reduced Workforce & Increasing Workload
REDUCED WORKFORCE & INCREASING WORKLOAD Marketing departments 17
Slide 18: Changing Role of the CMO
CHANGING ROLE OF THE CMO 18
Slide 19: Who Is DCM?
WHO IS DCM? PRINT FIRST DIGITAL FIRST 64 years 19
Slide 20: Why Invest in DCM?
WHY INVEST IN DCM? 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 OUTSOURCING PRINT CL
Slide 21: Digital Innovation to Accelerate Revenue & Market Growth
DIGITAL INNOVATION TO ACCELERATE REVENUE & MARKET GROWTH 2025 $ 75% 25-50M 2022 $ 45% 10-20M Tech-enabled services growth objectives 2020 $ 32% DAM + tech-enabled services growth objectives 3.4M 21
Slide 22: Repayment of Debt a Significant Priority
REPAYMENT OF DEBT A SIGNIFICANT PRIORITY $79.8 M -50% since fiscal 2019 $48.2 M $41.0 M $39.1 M 2019 2020 Q1 2021 Q2 2021 22
Slide 23: Positioned for Top-Line Growth
POSITIONED FOR TOP-LINE GROWTH AS CONSUMER MOVEMENTS RETURN TO PRE-COVID LEVELS REVENUE (C$ MILLIONS) $100.0 $78.6 $77.4 $69.6 $71.5 $75.0 $63.9 $63.2 $60.6 $62.4 $57.4 $55.2 $50.0 $25.0 $- Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 PRE COVID Q1 19 - Q1 20 COVID Q2 20 – Q2 21 23
Slide 24: Opex, Mix & Revenue Management
OPEX, MIX & REVENUE MANAGEMENT INITIATIVES HAVE DRIVEN APPROX 30% GROSS MARGINS 30.7% 30.1% 30% GM target 28.0% 29.0% 28.7% 26.4% 24.5% 24.8% 24.1% 22.6% GROSS MARGIN % Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 PROVIDING OPERATIONAL LEVERAGE AS POST-COVID ENVIRONMENT FIRMS UP 24
Slide 25: Digital Innovation Provides Path to Value Creation
DIGITAL INNOVATION PROVIDES PATH TO VALUE CREATION MULTIPLE OF ENTERPRISE VALUE | REVENUE 0.6X 1.1X 2.1X 9.1X MULTIPLE OF ENTERPRISE VALUE | EBITDA 3.6X 7.3X 13.6X 34.0X DCM today Conventional print Tech-enabled marketing DAM tech-enabled solution providers workflow providers service providers 25
Slide 26: Thank You
THANK YOU 26
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