Data Communications Management Corp. · TSX:DCM
Data Communications Management — Shareholder Meeting (June 2021)
21 slides from Data Communications Management's shareholder meeting presentation, Jun 25, 2021
Slide 1: The New DCM Poised for Growth
THE NEW DCM POISED FOR GROWTH AGM June 25th, 2021
Slide 2: Forward-Looking Statements & Non-IFRS Measures
FORWARD-LOOKING STATEMENTS & NON-IFRS MEASURES FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements
Slide 3: Moving from Print First to Digital First
MOVING FROM PRINT FIRST TO DIGITAL FIRST 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 PROCES
Slide 4: Deeply Entrenched Client Relationships
DEEPLY ENTRENCHED CLIENT RELATIONSHIPS 2,500+ 93% 97% +70% of revenue from Enterprise client of revenue from DCM Clients 250 enterprise retention long-term customers rate agreements FINANCIAL RETAIL HEALTHCARE EMERGING MARKETS CONSUMER HEALTH ENERGY NFP SPECIALTY DCM SERVES OVER 70 OF THE 100 LARGES
Slide 5: Moving from Print First to Digital First
MOVING FROM PRINT FIRST TO DIGITAL FIRST 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 PRINT PRINT ON MARKETING DEMAND SOLUTIONS 5 3 DCM is Canada’s leading M
Slide 6: DCM Embedded into Clients' Digital Ecosystems
DCM EMBEDDED INTO CLIENTS’ DIGITAL ECOSYSTEMS +$78M tech-enabled revenue via DCM FLEX • Proprietary DCM FLEX technology is deeply embedded in clients’ operational and business processes • Value-added capabilities streamline processes for ordering, 70+ 100+ proofing, approvals, reporting, and regulat
Slide 7: DCM FLEX Digital Ecosystem
DCM FLEX DIGITAL ECOSYSTEM ADVANCED TECH-ENABLED SERVICE PLATFORM THAT DELIVERS COMPLETE ENTERPRISE MARKETING AND BUSINESS COMMUNICATIONS SOLUTIONS GOVERNMENT COMPLIANCE PAYMENTS DAM SECURITY EMAIL SERVICES ORDERING/ STOREFRONT LOGISTICS MARKETING DATA DATA ANALYTICS WORKFLOW CRM MARKETING MANAGEMEN
Slide 8: DCM FLEX: Client Testimonials
DCM FLEX: CLIENT TESTIMONIALS FINANCIAL SERVICES CANNABIS HEALTHCARE “DCM FLEX was not only “DCM FLEX is able to “DCM FLEX is an able to provide features and accommodate regulatory easily accessible online functions that our requirement as a critical platform that supports organization has never had
Slide 9: Technology-Enabled Services – Growth
TECHNOLOGY-ENABLED SERVICES – GROWTH 75% BUSINESS PROCESS OUTSOURCING 45% 32% $78.8M MARKETING PRINT ON SOLUTIONS DEMAND 2020 2022 2025 % of Total Revenue Digitally Enabled 9
Slide 10: Moving from Print First to Digital First
MOVING FROM PRINT FIRST TO DIGITAL FIRST CONVENTIONAL TECHNOLOGY-ENABLED DIGITAL ASSET MANAGEMENT PRINT SOLUTIONS MARKETING WORKFLOW TECH-ENABLED SERVICE REVENUE: $178M REVENUE: $78.6M REVENUE: $3.4M BUSINESS PROCESS OUTSOURCING PRINT PRINT ON MARKETING DEMAND SOLUTIONS 10 DCM is Canada’s leading Ma
Slide 11: DAM Functionality
DAM FUNCTIONALITY UPLOAD CENTRALIZE SHARE AND AND PRESERVE AND MANAGE DISTRIBUTE Design & Build Version Web Photo Web pages s External Social Video Presentations File conversion users media Approval Documents Artwork Mobile Print Social Branded Archive Broadcast posts assets Meta-tagging media Re-si
Slide 12: The Digital Asset Management Market
THE DIGITAL ASSET MANAGEMENT MARKET * $5.2 B* 21.2% * 1/10 CAGR during companies Market Size currently using a the period of 2020-2025 DAM solution REVENUE SHARE BY REGION REVENUE SHARE BY SIZE OF COMPANY 61.1% 38.9% 45.4% 54.6% NORTH AMERICA ENTERPRISE REST OF WORLD SME *2019 data. www.technavio.co
Slide 13: Why DCM?
WHY DCM? • +40 years of practical Digital Asset Management experience • Already manage 1000’s of digital assets for clients daily • Currently technology-enabled service provider for many top Canadian companies THE OPPORTUNITY $3.4M 2020 $10-$20M $25-$50M 2022 2025 13
Slide 14: DCM by the Numbers
DCM BY THE NUMBERS All figures in C$ millions REVENUE (1) GROSS PROFIT & GROSS MARGIN % 28.1% 28.7% $322.8 22.7% 24.0% 24.2% 24.5% $278.4 $289.5 $282.9 $259.3 $78.2 $244.3 $72.9 $69.4 $69.3 $70.1 $63.1 2016 2017 2018 2019 2020 LTM 2016 2017 2018 2019 2020 LTM ADJUSTED EBITDA & EBITDA MARGIN (2) TOTA
Slide 15: DCM in 2020 & Q1 2021: Proven Resilience
DCM IN 2020 & Q1 2021: PROVEN RESILIENCE SG&A Cash Flow Debt Reduction Reduction from Operations Gross Margin $47.6M 28% $36M $8M Up from 24% YOY Decrease by Decrease by 12% YOY Up from $(0.8)M YOY 45% YOY REVENUE FROM TOP 100 CLIENTS + 3% IN 2020 GROSS DEBT 2021 Q1 CASH FLOW FROM OPERATIONS REVENUE
Slide 16: DCM Leadership Team
DCM LEADERSHIP TEAM RICHARD KELLAM JAMES LORIMER KAREN REDFERN PHIL HAMMOND CEO & President Chief Financial Officer VP, Customer, Technology Solutions Chief Revenue Officer 35 years of experience working in 25 years of experience 20+ years of experience in 25 years enterprise sales and large multina
Slide 17: 2021-23 Management Priorities
2021-23 MANAGEMENT PRIORITIES: FROM PRINT FIRST TO DIGITAL FIRST DIGITAL TALENT CLIENTS M&A GLOBAL INNOVATION Accelerate commercial digital Drive platform penetration Highly accretive consolidation EXPANSION expertise 32%-75% opportunities Build capabilities for vertical/ Penetrate U.S. cannabis mar
Slide 18: Capitalization and Ownership
CAPITALIZATION AND OWNERSHIP CAPITALIZATION “DCM” ON TSX OWNERSHIP SUMMARY RECENT SHARE PRICE (JUNE 1, 2021) $1.04 (FULLY DILUTED) Common Shares Outstanding 43.9M Directors and Options ($0.94 average ex. price) 4.1M Retail and Other Officers Shareholders 31.0% Warrants ($0.33 average ex. price) 2.0M
Slide 19: Comparable Companies Analysis
COMPARABLE COMPANIES ANALYSIS Conventional Print Solution Providers TEV / Revenue TEV / EBITDA Company Market Cap TEV CY20A CY20A CCL Industries Inc. 12,416 13,792 2.6x 12.8x Transcontinental Inc. 1,935 2,959 1.2x 6.3x R. R. Donnelley & Sons Company 569 2,537 0.4x 5.8x Quad/Graphics, Inc. 229 1,380
Slide 20: Moving from Print First to Digital First
MOVING FROM PRINT FIRST TO DIGITAL FIRST 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 PRINT CLIENT MIGRATION CLIENT MIGRATION PRINT ON MARKETING DEMAND SOLUT
Slide 21: Thank You
THANK YOU 21
Data Communications Management — Shareholder Meeting (June 2021) on 6ix