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The DATA Group Income Fund

Trusts in Focus TD Newcrest Conference September 25, 2007. The DATA Group Income Fund. Corporate Overview David Odell President & Chief Executive Officer. Forward-Looking Statements.

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The DATA Group Income Fund

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  1. Trusts in Focus TD Newcrest Conference September 25, 2007 The DATA Group Income Fund

  2. Corporate Overview David Odell President & Chief Executive Officer

  3. Forward-Looking Statements Certain statements in this document are “forward-looking statements”, which reflect management’s current beliefs and expectations regarding the Fund and The DATA Group’s future growth, results of operations, performance, and business prospects and opportunities. Forward-looking statements involve risks and uncertainties related to factors that could cause actual results to differ materially from anticipated results, including those factors discussed in the Fund’s periodic filings with Canadian securities regulatory authorities. 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 document. Unless required by applicable securities law, the Fund does not intend and does not assume any obligation to update these forward-looking statements.

  4. Solutions Beyond Print • Began trading December 21, 2004 under symbol DGI.UN • In business since 1959 • 23.5 million units outstanding and $35.0 million in convertible debentures • Annualized distribution of $1.1587 per unit State-of-the-Art Manufacturing, Warehousing and Distribution Leading provider of total document management solutions

  5. Diversified Long-TermBlue-Chip Customer Base • 11,800 customers • Majority of Top 25 >10 year relationships

  6. Canadian Printing Industry Packaging Business Documents Magazines Financial Printing Marketing & Promotion Newspapers Event Tickets Book Publishing Newspaper Inserts Labels Greeting Cards Stationery Focus on Related Segments

  7. Canada’s Leader in Total Document Management Solutions Organize Manage Migrate

  8. Broad High Value-AddedProducts and Services • Total Document Management Services • Event Tickets • Print-On-Demand • Forms • Direct Mail Printed Products • Stock Tab • Annual Reports • Marketing & Promotions Materials • Labels • Transportation Documents • Transactional Documents • Lottery • Gift Cards

  9. Update – Relizon Acquisition • On August 31, 2006 acquired Relizon Canada Inc. • Relizon Canada Inc. was our largest and best competitor • Purchase price of $141.0 million • $112.0 million in cash, issued 2.9 million units to the vendor • Public offering of 5.650 million units at $9.50 each and $35.0 million 6.75% convertible debentures • Increased credit facility to $90.0 million, drew $30.0 million for a total of $70.0 million outstanding

  10. Update – Relizon Acquisition (cont’d) • Solid financial and operating performance • Significant opportunities to achieve meaningful synergies • Leveraging complementary strengths as a larger combined business • Increasing The DATA Group’s size and financial strength • Further enhancing The DATA Group’s stable cash flow

  11. Update – Relizon Acquisition (cont’d) • Restructuring initiatives update: • Announced March 1, 2007 closure of 4 facilities • Resulted in elimination of 121 jobs and the transfer of 99 jobs • Completed other initiatives to reduce management, sales and administration • Announced sale/leaseback of Brockville facility for $4.5 million which is expected to close before October 15, 2007 • 3 owned facilities listed for sale • Originally projected synergies at approximately $7.0 million per annum • We now estimate synergies to be $1.0 to $3.0 million higher at $8.0 million to $10.0 million per annum

  12. Competitive Advantages • High value-added products and services It truly is DATA, Solutions Beyond Print • Unparalleled performance against service level and savings deliverables • Proprietary systems • Highly efficient • Differentiation of offering • Very professional, highly-trained, consultative sales organization

  13. Financial Overview Paul O’Shea Chief Financial Officer

  14. 2006 Financial Results • Fund revenue of $286.7 million • Gross Profit of $79.9 million • Gross Profit of 27.9% • Adjusted EBITDA of $33.1 million • Adjusted EBITDA of 11.6% of revenue Financial results for the period of January 1, 2006 to December 31, 2006

  15. 2006 Distributable Cash • Cash available for distribution of $24.5 million or $1.326 per unit • Distribution to unitholders of $21.4 million or $1.159 per unit • Excess cash per unit of $0.167 • Payout ratio of 87.4% For the period January 1, 2006 to December 31, 2006

  16. Q2 and YTD 2007 Financial Results • Revenue of $97.2 million and $201.2 million • Gross Profit of $25.4 million and $53.0 million • Gross Profit of 26.1% and 26.3% • Adjusted EBITDA of $7.4 million and $17.4 million • Adjusted EBITDA of 7.6% and 8.6% of revenue Financial Results for the period January 1, 2007 to June 30, 2007

  17. Q2 and YTD 2007 Distributable Cash • Cash available for distribution of $4.4 million or $0.186 per unit in Q2 and $11.7 million or $0.499 per unit YTD • Payout ratio of 156.2% in Q2 and 116.1% YTD • Adjusting for integration costs of $2.4 million and capital expenditures of $1.0 million, a payout ratio of 88.1% in Q2 and 84.3% YTD Financial Results for the period January 1, 2007 to June 30, 2007

  18. Balance Sheet - at June 30, 2007 • Total current assets of $103.3 million • Total assets of $377.5 million • Total current liabilities of $55.3 million • Long-term obligations including bank loans, convertible debentures, future income taxes & pension obligations of $127.4 million • Total unitholder equity of $194.8 million

  19. Summary David Odell President & Chief Executive Officer

  20. Strategic Focus • Continued concentration on revenue mix with the key focus upon value-added • Integration of Relizon and DATA operations • Maintain / build upon leadership position • “Stick to our knitting” • Exceed client S.L.A. expectations • Pursue strategic, accretive acquisitions

  21. Business Summary • Long history as a cash generator • Diverse mix of high quality blue-chip customers with whom we enjoy long-term relationships • Leading or significant share in segments we participate in • Multiple revenue streams derived from broad range of value-added products and services, resulting in little or no seasonality • Reasonable capex requirements, disciplined investment process • Nearly all business conducted in Canada, resulting in minimal exposure to foreign exchange risk

  22. Solutions beyond print. The DATA Group Income Fund

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