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DCM Q2 2026 Report to Shareholders DATA Communications Management Corp. DCM - TSX | DCMDF – OTCQX August 11 , 2026
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2026 - Version 1.0 Forward-looking Statements Disclosure 2 Forward-looking Statements This presentation contains statements which constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding the plans, intentions, beliefs and current expectations of DATA Communications Management Corp. (the “Company” or “DCM”) with respect to future business activities and operating performance. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions. Forward-looking statements in this presentation reflect DCM's current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this presentation. In addition, forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. These forward-looking statements involve a number of risks, uncertainties, and assumptions, many of which are beyond the Company’s control. They should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward-looking statements. We caution readers of this presentation not to place undue reliance on DCM’s forward-looking statements since a number of factors could cause actual future results, conditions, actions, or events to differ materially from the targets, expectations, estimates or intentions expressed in these forward-looking statements. The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements and which could cause DCM’s actual results and financial condition to differ materially from those indicated in the forward-looking statements, include those described in further detail in the Company’s most recent Annual Information Form of DCM for the year ended December 31, 2025, a copy of which is available on SEDAR+ at www.sedarplus.com, and include but are not limited to the following: DCM’s ability to realize the anticipated financial and strategic benefits from the Octacom acquisition, including client and customer retention, the ability of DCM to continue to realize on Octacom’s historical revenue growth rates and profitability levels in the future; DCM’s ability to capitalize on the forecast growth in the IDP market and DCM’s ability to compete in this market, which contains competitors that may be larger and better capitalized than DCM; the ability of DCM to integrate the business and operations of Octacom into DCM; the ability of DCM to obtain additional capital to fund our business plans on satisfactory terms (or at all), including, without limitation, with respect to accelerating growth and investments in digital innovation; DCM’s ability to comply with the financial covenants in the Amended Credit Facility or to obtain financial covenant waivers from our lenders if necessary; the ability of DCM to continue with the Company’s current dividend policy; the outstanding indebtedness under our bank credit facility is subject to floating interest rates and therefore is subject to fluctuations in interest rates, an increase in which would increase our borrowing costs; industry conditions are influenced by numerous factors over which the Company has no control, including: declines in print consumption; labour disruptions at suppliers and customers, including Canada Post; the impact of tariffs and responses thereto (including by governments, trade partners and customers), which may include, without limitation, retaliatory tariffs, export taxes, restrictions on exports to the U.S. or other measures, increases in our input costs, and the effect of governmental regulations and policies in general; our ability to achieve and meet our financial objectives and targets for 2026 and in the future; and DCM’s ability to retain key personnel, including those at Octacom. Forward-looking statements reflect DCM's current views regarding future events and operating performance, are based on information currently available to management of DCM, and speak only as of the date of this presentation. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this presentation as intended, planned, anticipated, believed, estimated, or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements.. Non-IFRS Standards Measures This presentation includes certain non-IFRS measures as supplementary information. In addition to net income (loss), DCM uses non-IFRS measures including Adjusted net income (loss), Adjusted net income (loss) per share, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Free cash flow and Net Debt (collectively, “Non-IFRS Measures”) to provide investors with supplemental measures of DCM’s operating performance and to highlight trends in its business that may not otherwise be apparent when relying solely on IFRS financial measures. DCM also believes that securities analysts, investors, rating agencies and other interested parties frequently use similar Non-IFRS Measures in the evaluation of issuers. DCM’s management also uses Non-IFRS Measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess its ability to meet future debt service, capital expenditure and working capital requirements. These Non-IFRS Measures are not recognized by IFRS and do not have any standardized meanings prescribed by IFRS. Therefore, DCM’s Non-IFRS Measures are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that Non-IFRS Measures should not be construed as alternatives to net income (loss) determined in accordance with IFRS as an indicator of DCM’s performance. For a reconciliation of DCM’s Non-IFRS Measures to net income (loss), see DCM’s most recent Annual and Interim Management's Discussion & Analysis filed on SEDAR+.
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2026 - Version 1.0 Agenda Q2 2026 Highlights and Results IDP Market & Octacom Acquisition Overview 2026 Outlook & Priorities Questions And Answers
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2026 - Version 1.0 Q2 2026 Results were generally in line with our expectations 4 1. Revenue: -2.5% vs. YA; declines decelerating as market continues to stabilize 2. New business development: Revenue from new logo wins accelerated 3. Tech-enabled services & hardware: +10.4% ($8.1M), 7.3% of total revenue 4. Gross Profit: $28.2M (25.4% of revenue) vs. $30.5M (26.8%) YA 5. SG&A: -$0.2M or -1% vs. YA at 17.8% of revenues vs. 17.5% YA 6. Adjusted EBITDA: $14.2M (12.8% of revenue) vs. $16.6M (14.6%) YA 7. Free cash flow: +$15.7M H1/26 vs. -$0.6M H1/25 (+$16.3M swing) 8. Net debt: $64.6M, -26% vs. YA and -16% vs. YE 2025; lowest leverage in 3 years 9. Return of capital: $3.4M to shareholders in H1/26
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2026 - Version 1.0 IDP Market & Octacom Acquisition Overview
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2026 - Version 1.0 Octacom at a Glance 6 Profitable and fast-growing, with sticky customer base and proprietary technology Deeply embedded offering End-to-end tech- enabled service, fully integrated to customer back-end systems and ERP. 5 yrs Average customer tenure Differentiated technology Proprietary Odiss workflow automation plus in-house IDP, configurable across enterprise environments. 16 Development & IT team Industry leadership Decades of document- management expertise, validated by a marquee client base across 15+ verticals. 15+ End markets served 50+ yrs In operation Highly recurring revenue Blue-chip customer base on multi-year agreements; deep workflow integration drives low churn and upsell. 90%+ Recurring revenue ~10% of total revenue from Odiss Strong free cash flow Optimized infrastructure and team sustain operational efficiency while maintaining low CAPEX. Operating at scale with strong growth Leading Canadian independent IDP player, having delivered strong growth through new logo wins, wallet share gains and new services. ~$23M FY26 revenue1 Track record of revenue growth and profitability 1 Based on Octacom’s management prepared unaudited financial statements for the fiscal year ended May 31, 2026.
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2026 - Version 1.0 How Intelligent Document Processing (IDP) Works 1 CAPTURE Ingest documents from any channel: email, scanners, portals, mobile or other applications → 2 CLASSIFICATION Identify document type and context OCR, ICR, AI & ML- Driven → 3 DATA EXTRACTION Pull out key metadata and context OCR, ICR, AI & ML- Driven → 4 VALIDATION Check against rules; flag exceptions → 5 WORKFLOW AUTOMATION Route for approval and store securely End-to-end workflow, simplified → 6 INTEGRATION Sync data with ERP, CRM and core systems 7
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2026 - Version 1.0 The IDP Market is Compounding Above 30% a Year 8Source: Grand View Research, Intelligent Document Processing Market (2026 - 2033). Global CAGR 34.5% US$3.0B 2 0 2 6 US$30.7B 2 0 3 3 Largest IDP deployment across North America and Asia-Pacific. North America CAGR 33.9% US$968M 2 0 2 5 US$9.7B 2 0 3 3 Canadian CAGR of 34.6% outpacing US CAGR of 33.6% driven by: • Federal AI legislation – June 2026 launch of “AI for ALL”, with a goal of increasing AI adoption to 60% by 2034 • High rates of digital adoption – over 90% of Canadian businesses use at least one digital technology • Data sovereignty concerns — driven by stringent regulations at a national and provincial level surrounding data privacy (particularly in the finance and healthcare sectors)
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2026 - Version 1.0 Market Drivers and the Why 9 The IDP market is not a niche — it is becoming essential infrastructure for every document-intensive industry on the planet 01 Explosion of unstructured data 80% of enterprise data is unstructured. Organizations are drowning in documents — IDP a scalable answer. 02 AI / LLM breakthroughs Large language models made context-aware extraction far more accurate, cutting error rates from 15%+ to under 2%. 03 Labour cost pressures Manual data entry costs $5–$25 per document. IDP cuts this to pennies, with ROI payback often under 12 months. 04 Regulatory compliance In Canada, under PIPEDA, Bill C-36 (proposed), and Law 25 (QC), the right to access records is law. In the US, SOX and HIPAA require traceable, auditable document trails. IDP builds in efficiency and governance. 05 Cloud & API maturity Pre-built cloud services from AWS, Google, and Azure lowered the barrier to entry across mid-market firms. 06 Digital transformation mandates Post-pandemic urgency made digitization a boardroom priority. Canada's federal IT modernization alone drives hundreds of millions in spend. Sources: (01) MIT Sloan Management; (02) Frontiers in Artificial Intelligence white paper; (03) Gartner, Microsoft, Coherent Market Insights
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2026 - Version 1.0 Where IDP is Relevant 10 Every document-intensive industry is a target Government P U B L I C S E C T O R Federal digitization mandates turn decades of paper records into searchable, compliant archives. E X A M P L E Records modernization, benefits processing, and citizen correspondence. Healthcare C L I N I C A L R E C O R D S Parse clinical notes, lab results, and insurance forms for faster patient processing. E X A M P L E Medical-record archives, claims intake, and referral routing. BFSI B A N K I N G · F I N A N C E · I N S U R A N C E KYC onboarding, loan applications, and regulatory filings processed at machine speed. E X A M P L E Account opening, mortgage docs, and compliance archives. Transport L O G I S T I C S & T R A D E Customs forms, bills of lading, and manifests validated automatically across borders. E X A M P L E Freight documentation, customs clearance, and fleet records.
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2026 - Version 1.0 Why Choose DCM as a Strategic Partner 11 A brighter future. Together. A Defensible MoatAccelerating leadership in IDP • Octacom brings a deeply integrated, full- service platform with highly recurring, blue- chip revenue • DCM adds enterprise, BFSI, and government relationships, national infrastructure, and a proven M&A playbook • Together: a leading Canadian IDP services provider with double-digit organic growth potential • Enterprise-grade assurance — SOC 2 Type II, PCI DSS L1, ISO 27001, PIPEDA • MSAs with 70 of Canada's 100 largest enterprises and government entities, across the fastest-growing verticals • Secure Canadian facilities — mirror sites, climate-controlled, 24-checkpoint chain of custody • Canadian-resident data, including cloud Octacom's platform combined with DCM's reach creates a leading, fully-integrated and scalable IDP platform • DCM’s commercial strength — a large enterprise client base and established route to market • Leveraging DCM’s North American footprint — Canadian and US facilities can be utilized to add scale and geographic reach • DCM’s IT bench strength to support growth — 150+ technology team supporting infrastructure, automation, development, and analysis
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2026 - Version 1.0 Off to a Running Start: First Octacom-DCM IDP Win 12 The pipeline — building IDP momentumThe win — Schedule I Canadian bank • Banking, insurance, healthcare and government are the priority verticals • Cross-sell runway across DCM’s 2,500+ clients This win validates the strength of Octacom’s IDP platform and our strategy to expand tech-enabled offerings across document-intensive verticals • First client win since closing the Octacom acquisition on July 8, 2026 • Digital mailroom mandate powered by Octacom’s AI-enabled data capture platform • Automates intake, classification, validation, extraction and routing • Delivers faster processing, better accuracy and stronger compliance
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2026 - Version 1.0 A Stronger DCM, From Day One 13 ✓ Accelerates our leadership in IDP: a market compounding 30%+ a year ✓ Built-in operating leverage: scales into DCM's existing facilities with very low capex ✓ Accretive on a fully funded basis: ~$23M revenue1, profitable ✓ A new complementary business: serving large regulated enterprises ✓ Enhanced balance sheet: amended $160M facility, lower overall cost of capital ✓ Continued commitment to shareholders: quarterly cash dividend 1 Based on Octacom’s management prepared unaudited financial statements for the fiscal year ended May 31, 2026.
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2026 - Version 1.0 2026 Priorities & Outlook
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2026 - Version 1.0 15 2026 Priorities Fuel Octacom’s growth by leveraging DCM’s commercial reach and secure footprint Improve gross margins through a stronger business mix and operational efficiencies Generate robust cash flow to support debt reduction and shareholder returns Maintain high revenue retention and drive new business development
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2026 - Version 1.0 2026 Outlook 16 Building momentum into the second half ▪ New logos won over the past year and a healthy pipeline ▪ Core market stabilization continues ▪ Octacom contribution beginning in third quarter ▪ Strong cash flow and liquidity to fund growth Positioned to deliver ▪ Leverage expanded tech-enabled capabilities to accelerate growth in the IDP market ▪ Operational discipline supports profitable growth ▪ Committed to our quarterly dividend program ▪ Monitoring trade policy, tariffs and macro uncertainty
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2026 - Version 1.0 Questions and Answers
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2026 - Version 1.0 Contact Information For more information, please visit www.datacm.com or for investor, media and corporate development inquiries reach out to: President & CEO rkellam@datacm.com +1 (416) 451-1117 Chief Financial Officer jlorimer@datacm.com +1 (905) 494-4101 Richard Kellam James Lorimer For more information, please visit www.datacm.com or for investor, media and corporate development inquiries reach out to: Contact Information
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2026 - Version 1.0 Q2 2026 Summary P&L’s
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2026 - Version 1.0 Q2 2026 Summary Financial Results 20 1. For a reconciliation of Adjusted EBITDA and Adjusted Net (loss) income to net (loss) income to their most comparable IFRS Accounting Standards measure, net income, see “Non-IFRS Measures.” Quarter 2 Ended June 30 In Millions Selected financial information Q2 2026 Q2 2025 Revenue $110.9 $113.8 Gross profit $28.2 $30.5 Gross margin (%) 25.4% 26.8% SG&A (incl. R&D expenses) $19.7 $19.9 Acquisition & restructuring expenses $2.2 $0.1 NFV (gains)/losses on financial liabilities $1.1 $0.2 Net (loss) income for the period ($0.9) $3.7 Adjusted Net (loss) income1 $1.6 $3.9 As percent of revenue 1.4% 3.4% Adjusted EBITDA1 $14.2 $16.6 As percent of revenue 12.8% 14.6%
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2026 - Version 1.0 Non-IFRS Accounting Standards Measures
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2026 - Version 1.0 EBITDA and Adjusted EBITDA Reconciliation 22 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”. For the periods ended June 30, 2026 and 2025 April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 (in thousands of Canadian dollars, unaudited) Net income for the period $ (894) $ 3,714 $ 3,895 $ 8,828 Interest expense, net 4,575 5,120 9,272 10,268 Debt modification losses — (867) — (867) Amortization of transaction costs 175 131 381 271 Current income tax expense 411 1,445 2,696 3,516 Deferred income tax recovery (178) (359) (1,277) (1,270) Depreciation of property, plant and equipment 1,564 1,792 3,223 3,514 Amortization of intangible assets 323 326 642 709 Depreciation of the ROU Asset 4,938 5,029 9,844 9,831 EBITDA $ 10,914 $ 16,331 $ 28,676 $ 34,800 Acquisition and integration costs 1,331 — 1,331 — Restructuring expenses 880 58 2,307 58 Net fair value losses on financial liabilities at fair value through profit or loss 1,102 179 1,004 298 Adjusted EBITDA $ 14,227 $ 16,568 $ 33,318 $ 35,156
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2026 - Version 1.0 Adjusted Net Income Reconciliation 23 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 SEDAR+ for more information. For the periods ended June 30, 2026 and 2025 April 1 to June 30, 2026 April 1 to June 30, 2025 January 1 to June 30, 2026 January 1 to June 30, 2025 (in thousands of Canadian dollars, except share and per share amounts, unaudited) Net income for the period $ (894) $ 3,714 $ 3,895 $ 8,828 Restructuring expenses 880 58 2,307 58 Acquisition and integration costs 1,331 — 1,331 — Net fair value losses on financial liabilities at fair value through profit or loss 1,102 179 1,004 298 Tax effect of the above adjustments (834) (60) (1,169) (90) Adjusted net income $ 1,585 $ 3,891 $ 7,368 $ 9,094 Adjusted net income per share, basic 0.03 0.07 0.13 0.16 Adjusted net income per share, diluted 0.03 0.07 0.13 0.16 Weighted average number of common shares outstanding, basic 54,765,458 55,317,543 55,484,052 55,313,271 Weighted average number of common shares outstanding, diluted 54,821,614 57,156,673 55,542,232 57,198,419 Number of common shares outstanding, basic 56,137,995 55,317,543 56,137,995 55,313,271 Number of common shares outstanding, diluted 56,194,151 57,156,673 56,196,175 57,198,419
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2026 - Version 1.0 Thank you
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2026 - Version 1.0