2019 INVESTOR OVERVIEW - SNIPP INTERACTIVE INC. TSX-V: SPN OTCQB: SNIPF - Snipp Proprietary and Confidential 2019
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Snipp Proprietary and Confidential 2019 2019 INVESTOR OVERVIEW SNIPP INTERACTIVE INC. TSX-V: SPN OTCQB: SNIPF
DISCLAIMER
This presentation is not, and nothing in it should be construed as, an offer, All forward–looking statements attributable to the Company or persons acting on
invitation or recommendation in respect of Snipp Interactive Inc.’s securities, its behalf apply only as of the date of this document, and are expressly qualified
or an offer, invitation or recommendation to sell, or a solicitation of an offer in their entirety by the cautionary statements included elsewhere in this
to buy, the facilities or any of the Company’s securities in any jurisdiction. document. All forward-looking statements involve risks and uncertainties, which
Neither this presentation nor anything in it shall form the basis of any contract may cause actual results to differ materially from the statements made. Such
or commitment. This presentation is not intended to be relied upon as advice statements reflect our current views with respect to future events and are subject
to investors or potential investors and does not take into account the to such risks and uncertainties. Many factors could cause our actual results to
investment objectives, financial situation or needs of any investor. All investors differ materially from the statements made, including those factors discussed in
should consider such factors in consultation with a professional advisor of filings made by us with the Canadian securities regulatory authorities. Should one
their choosing when deciding if an investment is appropriate. or more of these risks and uncertainties, such as changes in demand for and
The Company has prepared this presentation based on information prices for the products of the company or the materials required to produce
available to it, including information derived from public sources that have those products, labor relations problems, currency and interest rate fluctuations,
not been independently verified. No representation or warranty, express or increased competition and general economic and market factors, occur or
implied, is provided in relation to the fairness, accuracy, correctness, should assumptions underlying the forward-looking statements prove incorrect,
completeness or reliability of the information, opinions or conclusions actual results may vary materially from those described herein as intended,
expressed herein. These projections should not be considered a planned, anticipated, or expected.
representation of the Company’s potential cash generation performance in
any way. The financial projections are preliminary and subject to change; the Company
undertakes no obligation to update or revise these forward–looking statements
Some of the financial information included in this presentation is preliminary, to reflect events or circumstances that arise after the date made or to reflect the
forward-looking, unaudited and subject to revision. occurrence of unanticipated events, except as required by law. Inevitably, some
assumptions will not materialize, and unanticipated events and circumstances
may affect the ultimate financial results. Projections are inherently subject to
substantial and numerous uncertainties and to a wide variety of significant
business, economic and competitive risks, and the assumptions underlying the
projections may be inaccurate in any material respect. Therefore, the actual
results achieved may vary significantly from the forecasts, and the variations may
be material. The reader is cautioned not to put undue reliance on such forward-
looking statements.
2
SNIPP - WHAT WE DO
Snipp provides brands with an
intelligent technology platform
that generates unique first
party data through the
turnkey implementation of
promotions and cross channel
loyalty programs.
3
OUR CLIENTS ARE TOP MULTINATIONAL BRANDS
LESS THAN 10% PENETRATED INTO OUR CURRENT CUSTOMERS
CPG
ALCOHOL
PHARMA LIFESTYLE
HOME &
EUROPE
OUTDOOR
TELECOM OTHERS
4
RETAILERS
RETAILERS
AGENCIES & PARTNER COMPANIES
ADVERTISING &
MARKETING
AGENCIES
INCENTIVE
MARKETING
NETWORKS
5
SOME OF OUR PROGRAMS
Loyalty Promotion API/License API/License Promotion Promotion Rewards Store Promotion
TRUSTED BY GLOBAL FORTUNE 500 COMPANIES
SOME OF OUR PROGRAMS
B2B Gamification Rebate Receipt Sweepstakes Continuity Rewards Loyalty
Loyalty &Instant WIn Processing Program (Ziploop)
AND BY MID-SIZE BRANDS
SNIPP – WHERE WE PLAY…TODAY
Industry Category Market Size
Who Is My Customer? Market $50B
Research
Where Can I Find Them?
Advertising $563B
How Do I Target Them? Technology
Did They Buy My Product? Marketing $80B
Technology
How Do I Keep Them Coming Back?
*Global Spend as reported by Statista
8
WHY IS OUR PLATFORM IMPORTANT?
1 Retailers have the power of purchase 2 Advertising has a measurement
data, Brands have none problem
“Half the money I spend on advertising is wasted;
Brands
the trouble is I don’t know which half”
- John Wannamaker
$
Retailers “The problem for many advertisers is that the vast
majority of consumer purchases take place offline.
So the question becomes: if I buy advertising on
$ Facebook, how do I know that someone bought a
can of beans in the supermarket because of it?”
Consumers
Connecting brands directly to the consumer with
effective advertising and incentives
9
SNIPP TODAY
85
EMPLOYEES: 44% IN ENGINEERING
57%+ REVENUE CAGR SINCE LISTING (2012-18)
69% GROSS MARGIN FOR Q4’18 VS 66% IN Q4’17
$4MM
CASH+AR Purchase Program Loyalty Program
+ CASH FLOW FROM OPERATIONS FOR FY’2018
58%
EBITDA IMPROVEMENT 2018 VS 2017
25%
BOOKINGS INCREASE FOR 2018 VS 2017
$15.5MM 2018 BOOKINGS – HIGHEST IN HISTORY Rebate Program B2B Program
3 CONSECUTIVE YEARS (2016-18) ON DELOITTE’S TECHNOLOGY FAST 500TM,
A LIST OF THE 500 FASTEST GROWING COMPANIES IN NORTH AMERICA
10SNIPP – HOW WE DO IT
Technology Engines / Platform Industry Solutions Future Solutions
Contests & Promotions
Receipt / Purchase Validation Receipt & Image recognition
Loyalty in-a-box (Ziploop)
Instant Win
Sweepstakes
Rewards Platform MOBILE INFLUENCER PLATFORM
Gift With Purchase
Incentive & Influencer Programs
Social Media Promotions
Loyalty Engine Punchcard / Continuity
Rebate Programs
Research Solutions
Enterprise Loyalty
Rebates Platform
Insights & Analytics
Modular Technology Stack Enables Multiple Business Models…
11REVENUE
REVENUE MODEL
MODEL TODAY
TODAY
REVENUE MODEL TODAY
DIVERSIFIED
DIVERSIFIED HIGH
HIGH MARGIN
MARGIN REVENUE
REVENUE ACROSS
ACROSS SEGMENTS
SEGMENTS
DIVERSIFIED HIGH MARGIN REVENUE ACROSS SEGMENTS
SAAS
SAASStyle
SAAS Style
Style
SAAS Style Recurring
Recurring
Recurring
Recurring
Revenues
Revenues
Revenues
Revenues
%%%of
of
of %%
% of
of
of %%of
% of
of
% of
2015 80% % of
2016 69% % of
2017 53% 14%
14% 20%
20% 38%
38%
2015
2015 80% 2017
2016
2016 69%
69% 2017
2017 53%
53% 14% 20% 38% 6%
6%
6% 11%
11%
11% 9%
9%
9%
2016
Rev 69% Rev 53% 2018
Rev 49% 20% 38% 42% 11% 9% 9%
Rev
Rev Rev
Rev Rev
Rev
Rev Rev Rev
Loyalty
Loyalty && Rebate
Rebate
Rebate Licensing
Licensing
Promotions
Promotions // Rewards
Rewards Licensing
Licensing
Promotions / Rewards Loyalty &Solutions
Rebate Solutions
Solutions
Solutions (Previously
(Previously
(Previously called
called
called API
API
API Sales)
Sales)
Sales)
(Previously called API Sales)
High
Highno
noofofrepeat
repeatclients ••• Long-term
Long-termrecurring
recurringrevenue We
•• repeat clients
clients Long-term recurring revenue
revenue Welicense
•••• Our
We licenseour
license
technologyourtechnology
our technology
is modular
technology
Campaign
Campaignsizes
sizeshave
havenearly ••• We
Werunrun333of
ofthe
thelargest and
•• Campaign sizes continue
have to
nearly
nearly We run of the largest
largest andpartner
and partner
enabling with
with
us to
partner gain
with leading
leading
licensing
leading
doubled
doubledyear-over-year consumer
consumerloyalty
loyaltyprograms
programs––– couponing
increase year-over-year
year-over-year consumer loyalty programs couponing&
couponing
revenues &promotions
& promotions
promotions
Kellogg,
Kellogg,Starbucks
Kellogg, Starbucksand
Starbucks andHuggies
and Huggies
Huggies platforms
platforms
platforms
1CURRENT TRENDS: METRICS Q4’2018
Q4’ 2017 Q4’ 2018
% of Revenue with Recurring
Components
44% 58%
Increasing Campaign Size $39,815 $66,036
Improving Margins 66% 69%
Higher Campaigns Booked 82 52
Booking Backlog $6.3MM $8.0MM
Q4 New Bookings $4.1MM $4.4MM
13CURRENT TRENDS: METRICS 2018
2017 2018
% of Revenue with Recurring
Components
47% 51%
Increasing Campaign Size $42,153 $49.037
Improving Margins 70% 65%
Higher Campaigns Booked 314 318
Booking Backlog $6.3MM $8.0MM
Bookings $12.4MM $15.5MM
14REVENUE VS EBITDA TREND
PHASE#1 PHASE#2
2012 2015 2018
Public on TSX with Acquired Leading Fortune Acquired SwissPost Acquired HipDigital Completed Integration Crossed $15MM
$2MM offering 500 Pilot customers Loyalty Engine Rewards Solution of all Acquired Entities in Sales Bookings
Launched Raised $10MM Crossed Acquired Ziploop
Receipt Processing Engine in Equity $10MM in Sales Machine Learning Engine
Phase#1 Key Milestones 3.84
• Raised seed capital $3.31
3.7
3.32
$2.99
• Launch of Minimum Viable Product $2.82
$2.48
2.85 2.87 3.02 2.94
• Established the Receipt Processing Industry $2.11
• Acquired Leading Fortune 500 customers
• Raised $10MM to fund solution development
$0.25
0.09
Phase#2 Key Milestones
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18
• Built + Bought technical components 0.01 $(0.22) $(0.47) -0.67
$(0.71)
• Completed Integrations of companies -1.18 -1.3
-1.01
-1.54
• Launched disruptive industry solutions
• Exiting 2018 with +ive EBITDA for H2 -2.46
Revenue Vs EBITDA (USD, $MM)
• Crossed $15MM in bookings for 2018 Revenue EBITDA
15REVENUE MIX:
BUILDING LONGER TERM RECURRING REVENUE STREAMS
Snipp USD Revenue & Bookings Backlog
$20,151,286
Revenue Bookings Backlog $19,179,019
$8,000,000
$6,300,000
$15,323,727
$4,200,000
$12,590,231
$700,000
$3,562,045 $11,890,231 $12,879,019 $12,151,286
$11,223,727
$870,420
2013 2014 2015 2016 2017 2018
Full Time
Employees 8 10 48 118 85
16FOCUSED ON PROFITABLE GROWTH
SNIPP IS POISED FOR GROWTH
1 Focused on ramping our sales capability & performance
2 Low hanging fruit in servicing our existing clients in overseas market
3 We expect a high % of long-term high margin contracts
4 Scalability makes each incremental relationship more profitable
5 This is a fragmented industry, with many opportunities for growth
17EXPERIENCED MANAGEMENT TEAM
Atul Sabharwal Megan Prikhodko Jaisun Gacha Wayne Wang Christian Hausammann Rahoul Roy
CEO and Founder COO CFO CTO MD Europe CLO
Atul is a founder of Snipp Megan has over 10 years of Jaisun is Snipp’s CFO. He has An expert in bridging the Christian brings over 20 Rahoul has over 15 years of
and has over 10 years software development and over 10 years of experience gap between business needs years of experience in experience practicing law
experience in the digital management experience. in the financial accounting and technical the direct marketing, in both the United States
media/mobile industry. As our COO, she is industry and is experienced implementations with direct loyalty, gift card and and India, and, prior to
Atul’s earlier experience responsible for overseeing in managing all aspects of experience on projects of payments industry in joining Snipp, was running
includes serving as the all key operations including public company financial varying size. A successful 15+ Consulting, Business his own corporate law
Executive Director of the project management, and management reporting, years track record of solid Development and practice in New York with
Acme Group, a board product management, forecasting and analysis, contributions in technical Key Account an international clientele of
role at eSolar, founder of client services delivery, corporate governance and project leadership and Management. serial entrepreneurs and
the Finalysis Group and customer service, risk management. He holds people management across multinational corporations.
executive positions with processing operations and an MBA from Laurentian a variety of industries. Rahoul was a Special
AOL, IBM Business HR. Prior to Snipp, Megan University and a Bachelor of Proficient in the Agile, SCRUM Counsel to Brown Rudnick
Services, the Boston was an executive at Science degree, with a process with 15 years’ direct LLP, Rahoul obtained his BA.
Consulting Group and Precision Computer Works, double major in computer experience in software LLB., (Hons) from the
News Corporation. He Inc. where she launched science and general development, architecture National Law School of
holds an MBA from the complex systems for biology, as well as a Diploma and high level technical India, and his LL.M., with
Australian Graduate societies such as the in Accounting from the design for enterprise systems. Distinction, from the
School of Management American Heart Association University of British Columbia. Brings technical innovations, Georgetown University Law
and attended Wharton and the American Medical He is a Chartered which drives business growth Center where he was also
Association. She holds an Professional Accountant much faster and creates a on the Dean’s List and an
MBA from Johns Hopkins (CPA, CGA) and is a huge competitive International Institute of
University. member of the Chartered advantage Economic Law Fellow.
Professional Accountants of
British Columbia.
18EXPERIENCED BOARD
Tom J. Burgess is a seasoned executive in online and wireless interactive advertising and digital media technology. As a serial entrepreneur and
innovator, he has been granted multiple patents for his pioneering work in the wireless, mar-tech and loyalty industries. Mr. Burgess is a frequent speaker
at global marketing conferences and has been quoted or featured in Forbes, NY Times, Wall Street Journal, Boston Globe, CNBC and many industry
publications. He founded Linkable Networks, a payments loyalty company in 2010 and orchestrated a significant asset sale to the global loyalty
company Collinson in September 2017. In 2001 Burgess founded Third Screen Media, a wireless advertising company that was purchased by AOL/TW in
2007. Prior to Third Screen Media, he founded two other successful digital media companies. In 2007 Burgess was inducted into the Entrepreneur Hall of
Fame for superior performance by a group of investors. Mr. Burgess is an active Board Member and advisor to early stage ventures, with a focus on
Tom J. Burgess corporate development, Board governance and investor relations.
Mr. Haji is a qualified CPA, CA having managed audits of both public and private companies while working for Clarkson Gordon and Company (now
E&Y) in Toronto. He went to Pakistan and started two successful businesses before returning to Canada in 2009. On his return to Canada he provided
Sarfaraz Haji consulting services to Par Pak Ltd, Brampton a plastic packaging manufacturing company, assisting them in their sale transaction with The Waddington
Group (TWG). He was appointed as Divisional Controller of Polar Pak by TWG after the acquisition. Currently Mr. Haji is the CFO at Lark Investments Inc,
assisting them in investment due diligence and analysis.
Mr. Sabharwal is a founder of Snipp and has over 10 years experience in the digital media/mobile industry. He served as Executive Director of the Acme
Group, a $2+ billion company based in India. Mr. Sabharwal’s earlier experience includes a board role at eSolar, an Idealabs company funded by
Google, GE & Oak Capital, being founder of the Finalysis Group (a consulting group and provider of remote services such as call center management
and lead generation to corporate clients), and executive positions with AOL, IBM Business Services (previously PWC Consulting), the Boston Consulting
Atul Sabharwal Group and News Corporation. He holds an MBA from the Australian Graduate School of Management and attended Wharton.
19…& STRATEGIC ADVISORY BOARD
Tom was CEO of ExtendMedia, a leading IP video software company serving customers including AT&T, Verizon, Disney and Paramount. Extend was acquired by Cisco
Systems (NASDAQ: CSCO) in 2010. Tom also served as CEO of Lightningcast, a pioneer in online video advertising where he led the development of the first advertising
technology platform specifically designed for monetizing broadband video and launched the first online video ad network. After AOL (NYSE: AOL) acquired Lightningcast
in 2006, Tom was SVP Strategy and Corporate Development at AOL overseeing strategy, strategic planning and corporate and business development for AOL’s
advertising businesses. Prior to Lightningcast, Tom founded and served as CEO of Backwire, an online and mobile messaging company that was acquired by Leap
Tom McIssac Wireless (NASDAQ: LEAP) in 2001
Mr. Dillon is a seasoned shopper marketing professional with almost twenty years of experience in shopper marketing and retail-related promotions. Mr. Dillon is also
recognized in Shopper Marketing Magazine’s “Who’s Who in Shopper Marketing”. Mr. Dillon spent 17 years at Pepsico, across brand, innovation, promotions and shopper
marketing. Mr. Dillon’s last role at Pepsico was VP, Brand Activation and Shopper Marketing. After Pepsico, Mr. Dillon held executive positions at both [x+1]/Rocket Fuel
and Catalina adding a significant expertise in purchase behavior targeting and measurement in the digital space. Currently, Mr. Dillon is the founder and “captain” of
Seven C’s…a consulting firm specializing in helping clients navigate the new path to purchase. Mr. Dillon holds a Bachelor of Arts from the University of Georgia and an
Michael Dillon MBA from the University of Rochester’s William E. Simon School of Business.
Dave has been involved in the information security field for nearly 20 years, first as a Federal agent pursuing cyber-criminals in the era of floppy disks and 2400 baud
modems through his most recent experience as the Global Chief Technology Officer of FireEye, a leading cyber-security solutions provider. While at FireEye Dave provided
his insights and expertise in guiding the company’s product strategy, as well as evangelizing and educating practitioners, executives and boards of directors around the
globe. He has experience working in a variety of international markets and understands the significant differences in approaches and attitudes towards cyber security in a
wide variety of countries. In addition to his evangelism, Dave helped guide the formation of a broader FireEye product portfolio, working with the CEO to expand FireEye’s
offerings from networks into both the endpoint and data analytics realms. Prior to FireEye Dave was the Chief Technology Officer and Vice President of Products at
Mandiant. He founded the business line for Kevin Mandia in 2006 and oversaw its operation through Mandiant’s acquisition by FireEye in December of 2013. In that time he
built and released Mandiant’s endpoint security platform and grew the business to $25M in annual software revenues. The platform also served as a basis for $75M in
Dave Merkel additional managed solution and services revenues at the time of Mandiant’s acquisition. Before Dave’s 10 years as a solutions provider he spent another decade as a
security practitioner, first as a Special Agent in the Air Force Office of Investigations, pursuing cyber criminals and conducting digital forensic investigations, and later as
head of AOL’s Technical Security organization. While at AOL he created their first incident response capability, oversaw incident response operations through all of AOL
and Time Warner, managed software security and policy programs, and built technologies for AOL’s security infrastructure that could not be procured on the market due
to unique scale and scope requirements.
20…& STRATEGIC ADVISORY BOARD
Mr. Ramkumar has had a 25+ year career as a successful business entrepreneur and has held numerous senior management and board level positions at several
different publicly listed companies. He was CFO, VP Operations and GM at Reff Incorporated, a manufacturer of high-end furniture. Subsequently, he was CEO of
Inscape Corporation, where he oversaw the growth of the company from $20 million to $170 million in annual revenues. The company was recognized as one of the 50
Best Managed companies in Canada during this period. Both Reff and Inscape went public on the TSX. Mr. Ramkumar is also a principal shareholder and Chairman of
Process Research Ortech (“PRO”) and ASL Print FX, a provider of high-end promotional print solutions to CPG companies. He is also a former member of the Board of
Toronto Rehabilitation Institute.
Ram Ramkumar Mr. Ramkumar was a charter member of TiE, a not-for-profit organization that aims to foster entrepreneurial activity and led the initiative to start TieQuest, which has
grown to become one of the leading business venture contests in Canada. He has served on the boards of several publicly listed corporations, including Angoss
Software Corporation, a provider of leading edge business analytics solutions to customers (listed on the TSX), Cedara Software, a leading provider of medical imaging
software (listed on the TSX and the NASDAQ), and Merge Healthcare (listed on the NASDAQ).
Mr. Cannata is a business strategist and serial entrepreneur with seven start-ups to his credit and senior management experience across several industries including office
products, telecommunications, medical devices, system management software, financial services software and patent monetization and advisory services. Mr. Cannata
has both private and public company board experience including Selient Inc., a TSX Venture listed corporation and Momentum Inc. a TSX listed company. At both
Selient and Momentum he headed the strategic alternative committee that led to the acquisition of Selient by CRI Canada and the acquisition of Momentum by OnX
Corporation.
Mr. Cannata is the co-founder of Patent Monetization Inc (PMI), a firm specializing in the monetization of patents through sale, licensing or litigation. Mr Cannata has
been involved in the monetization of patents since founding BOCA Advisory Services in 2002. In 2005 BOCA advised Northwater Capital Management on the
establishment of NW Patent Funding Corporation (NWPF) as a pioneer in the field of patent litigation financing. Through NWPF, Mr Cannata advises and manages patent
Michael J. Cannata litigation investments made by the Northwater IP fund.
Mr. Cannata has been recognized for his leadership skills at Cybermation a company named one of the 50 Best Managed Private Companies in Canada during his
tenure as president. Intellectual Asset Management has also recognized Mr Cannata as a World Leading IP Strategist since the inception of the program in 2009. Mr.
Cannata was also a charter member of TiE, a not-for-profit organization that aims to foster entrepreneurial activity.
Ritesh is a co-founder and former President & CTO of Snipp. He has over 10 years experience in the digital media industry and a passion for starting companies.
Previously he was at McKinsey & Company for five years in New York in its Media, Technology & Telecommunications practice. He has served as General Manager at
Precicompo, an Indian automotive manufacturing business and had also founded Unsurface, a consumer-facing digital media distribution service company (later sold
Ritesh Bhavnani to Sony Music Corp). Ritesh holds an MBA from INSEAD and a BS in Computer Science from Stanford University.
21Snipp Interactive Inc
THANK YOU. 1.888.99.SNIPP (1.888.99.76477)
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