Dye & Durham Ltd. · TSX:DND
Dye & Durham — Investor Presentation (August 2020)
16 slides from Dye & Durham's investor presentation, August 2020
Slide 1: Investor Presentation Summer 2020
Matthew Proud, CEO Eric Tong, COO Jae Cornelssen, CFO Investor Presentation Summer 2020
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements that relate to the Company’s current expectations and views of future events. In some cases, these forward-looking statements can be identified by words or phrases such as ‘‘forecast’’, ‘‘target’’, ‘‘goal’’,
Slide 3: One-stop legal gateway to public records data
Dye & Durham’s Platform is a one-stop legal gateway to public records data Validation Compliance Legal professionals Public records *selected examples Service Ontario Incorporation Due diligence Real estate BC Registry Services Service Alberta Auto Merger BC Land Title & Survey HM Land Registry Best
Slide 4: Large & Diverse Customer Base with Significant Room for Growth
Large & Diverse Customer Base with Significant Room for Growth Financial Institutions Predictable Business Model Law Firms & Government Legal Professionals 2% Customer churn1 16.6 years average tenure of 25,000+ Active clients top 100 accounts2 58 30 3 3 Dye & Durham Net Promoter Score: Software Ind
Slide 5: Track Record of Successfully Executing Accretive Acquisitions
Track Record of Successfully Executing Accretive Acquisitions Cumulative Customer Growth 2% Customer churn2 109% Net revenue retention3 1 Disciplined Acquisition Criteria Mitigates Risk 25,000+ • Deeply embedded software and technology enabled services • Flow-through disbursement model • High relati
Slide 6: Multiple Benefits from Acquisitions on EBITDA: Both Growth and Synergies
Multiple Benefits from Acquisitions on EBITDA: Both Growth and Synergies Case Study #1 : Stanley Davis Group (“SDG”) (C$ millions) Dye & Durham was able to acquire the business at a very attractive multiple and structure the transaction so significant cost synergies took effect at close Nearly Doubl
Slide 7: Attractive Consolidation Platform
Attractive Consolidation Platform Increased cash & debt 14 capacity acquisitions completed since 2013 Acquisition Acquisition 2.0 – 3.0X targeted debt/EBITDA ratio Adjusted EBITDA Increased cash & debt growth 136% capacity Adjusted EBITDA CAGR (FY16A-FY19A) Adjusted ▪ Integrate 71% Revenue CAGR EBIT
Slide 8: Delivering on Our Commitments
Delivering on Our Commitments October 2018 Revenue1 Adjusted EBITDA1 Key Updates Since October 2018: (C$M for the year ending June 30th) ‘what we said’ (C$M for the year ending June 30th) 20% to 25% 52% 75.5 45% 40.5 20,000+ Revenue & Revenue Adj. EBITDA Number of new customers Adj. EBITDA Growth CA
Slide 9: Robust Financial Performance
Robust Financial Performance Adjusted EBITDA DOUBLED Revenue (C$M for the year ending June 30th) (C$M for the year ending June 30th) Revenue in ~<2 years 31.4 60.0 55% Average EBITDA margin 136% CAGR1 26.4 71% CAGR1 43.8 32.5 19.2 (past 3 years)2 18.8 8.7 NO one customer accounts for 2%+ of revenue
Slide 10: Recent Business Performance
Recent Business Performance ▪ The Company has performed well despite COVID-19 ▪ In response to COVID-19, in mid March management reduced costs through both permanent and temporary measures that will result in ~$3.3 million of cost reductions in Q4 FY2020 ▪ The Company was able to put through price i
Slide 11: Opportunities for Immediate Growth
Opportunities for Immediate Growth ACQUISITION OPPORTUNITIES ORGANIC OPPORTUNITIES UNITED CANADA KINGDOM & IRELAND Subscription Revenue (Utilize the Platform) Total Addressable Market1: $1.1 Billion $900 Million Subscription service offering ▪ Implemented monthly-subscription offering to customers u
Slide 12: Experienced Leadership Team with Successful Track Record
Experienced Leadership Team with Successful Track Record Executive Management Team Matthew Proud, Board of Directors CEO & Director – Toronto, Canada Brian L. Derksen, Chair CEO of Dye & Durham since 2014, previously CEO of OneMove, a predecessor to the Company. BA from the University of Cambridge a
Slide 13: Appendix
Appendix
Slide 14: Pro Forma Capitalization and Ownership
Pro Forma Capitalization and Ownership Pro Forma Capitalization Pro Forma Ownership3 (C$ thousands) Pro Forma Offering price As at March 31, as at March 31, 2020 20201,2 $7.50 per Share Cash 5,190 10,000 Plantro ~22% Debt Seastone ~17% Revolver 9,000 - Wahi ~4% Term Loan 179,858 84,583 Other D&D Sha
Slide 15: Q3 Financial Results
Q3 Financial Results (Expressed in millions of Canadian dollars, for the nine months ended March 31, 2020) Revenue Adj EBITDA. Revenue by Business Line Revenue by Country (C$M) (C$M) (9 months March 31, 2020) (9 months March 31, 2020) $ $ Business Law 27.3 Canada 47.6 Real Estate 16.9 UK 3.7 Litigat
Slide 16: Glossary
Glossary “Adjusted EBITDA” adjusts EBITDA for stock-based compensation expense, transactional gains or losses on assets, asset impairment charges, interest income, net foreign exchange gains or losses, gains or losses from changes in fair value of derivative financial instruments and contingent cons