Ackroo Inc. TSX Venture: AKR OTC Pink: AKRFF - INVESTOR DECK - JANUARY 2021
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Ackroo Inc.
TSX Venture: AKR
OTC Pink: AKRFF
INVESTOR DECK – JANUARY 2021
1
ACKROO INC. DISCLAIMER
Certain written and oral statements included in this presentation may constitute “forward-looking information”
which reflect the current expectations of Ackroo. This information reflects Ackroo’s current beliefs with
respect to future events and are based on information currently available to management. Forward-looking
information involves significant known and unknown risks, uncertainties and assumptions. Many factors
could cause actual results, performance or achievements to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward-looking information. Should
one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results, performance or achievements could vary materially from those
expressed or implied by the forward-looking information contained in this presentation. Although forward-
looking information contained in this presentation is based upon what Ackroo believes to be reasonable
assumptions, management cannot assure Users that actual results, performance or achievements will be
consistent with this forward-looking information and cautions that undue reliance should not be placed on
the forward-looking information. The forward-looking information is made as of the date of this presentation
and Ackroo does not assume any obligation to update or revise it to reflect new events or circumstances,
except as required by law.
2
Ackroo: pronounced ac·crue or əˈkro͞o
Definition of accrue: to accumulate or be added periodically
Goal of Ackroo: is to accrue companies and offerings to maximize merchant value
Gift cards Loyalty Marketing Data Payments P.O.S
OUR VISION
To consolidate, simplify and improve the merchant marketing, payments & point-of-sale industry
OUR MISSION
Through vendor and industry consolidation we will use technology to help merchant's of all sizes attract, retain
and grow their customers and their revenues
OUR SOLUTIONS
1.
• An easy to use, self-serve, data driven marketing platform that manages important merchant currencies
including loyalty, gift card & promotions
2.
• Powered by Fiserv/First Data and Global Payments we provide payment processing technology and
services for all merchant types
3.
• For specific niche markets we provide management systems and point-of-sale solutions to manage
and optimize operations
4
OUR APPROACH
We are a market leader in:
• The consolidation of small to medium sized loyalty marketing, payment and point-of-sale solution providers
• The innovation of a self-serve, data driven merchant marketing platform and niche point-of sale solutions
• The integration of loyalty marketing, payment and point-of-sale to our own solutions and to others
Diversified across 4 specialized verticals:
Petroleum Hospitality Automotive Retail
5
CLIENT BENEFITS
Gift cards Loyalty Marketing Data Payment Point of Sale
increase protects margin, platforms ties Processing Key
merchant attracts provide key everything is a technology to
revenues and customers, insights and together to necessary manage general
cash flow creates lift and actionable increase service needed operations
drives tools to merchant for all
behavior drive results knowledge to merchant types
improve their
business
Other Ackroo platform benefits for merchants:
• Automation removes manual labor, errors, and theft
• Centralized data All key information in one place
• Centralized solution/support Single point of contact
• Self serve tools efficiency, controls and cost
• Technology first services second approach
6
OUR RESULTS - REVENUE
Annual Revenue - 34% CAGR
34% Average growth rate since founded in 2012
$7,000,000
TBD
$6,000,000
$5,233,227 X%
$5,000,000 18%
$4,435,019
62%
$4,000,000
$3,000,000 $2,737,830
23%
$2,224,165
$2,000,000 $1,822,224
22%
$1,284,016 $1,328,166 37%
3%
89%
$1,000,000 $681,142
N/A
$0
2012 2013 2014 2015 2016 2017 2018 2019 2020*
Note: 2020* #’s are based on annualizing YTD announced resultsOUR RESULTS - EBITDA
Annual adjusted EBITDA - 51% CAGR
51% average growth rate since EBITDA positive
$2,000,000
+$TBD
$1,000,000 +$614,034 X%
+$406,427
51%
N/A
$0
29% 17%
47%
-$607,466 -$502,315
$1,000,000 -$853,021
36%
$2,000,000 27%
-$1,608,162
-$2,509,484
$3,000,000 N/A
-$3,421,920
$4,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020*
Note: 2020* #’s are based on annualizing YTD announced results
8FINANCIAL HIGHLIGHTS
Proven Execution
34%
95% Retention Rate 20% EBITDA Margin
84%
89% Gross Margins $1.8 Cash
M
84% Recurring Revenue 2018 EBITDA Positive
51% EBITDA CAGR 2019 Cash Flow Positive
34% Revenue CAGR 10 Closed M&A deals
9MAJOR MILESTONES
Our Story
• Acquired WinWin ,
BNA & GGGolf
• Steve Levely • Acquired
• Acquired becomes CEO OnTab, • AckrooMKTG adds
Money Bar •First EBITDA embedded BI & DM
• 10-1 Share • D1 Mobile
• RTO’d on TSX V consolidation & Loyalint positive year • Added AckrooPOS
2013 2015 2017 2019
2012 2014 2016 2018 2020
• Rebuilt • Acquired • Acquired • Acquired
Ackroo PhotoGIFTCARD KESM/ IQ 724
technology & Dealer LoyalMark
Rewards • Added
• Defined AckrooPAY
commercial
model
10MARKET POSITIONING
Industry Ecosystem
Ackroo’s foundational niche
Gift Card
Gift/Loyalty
Marketing
Marketing & Loyalty
P.O.S
Data Payment
Payment
P.O.S
Data
Companies within all 5 areas are partnering, competing and consolidating
11MARKET POSITIONING
Ackroo Today Ackroo Future
GIFT &
LOYALTY DATA
MARKETING DATA MARKETING GIFT &
LOYALT
Y
PAYMENTS P.O.S PAYMENTS P.O.S
Ackroo is known first as a Ackroo will be differentiated by our
Gift Card & Loyalty provider second for data first and our various solution
our various solutions offerings second
12BUSINESS STRATEGY
PAY DATA POS
Reseller eComm Loyalty Gift Card Scheduling Mobile
Ordering
Management Inventory &
In-Store Integrated Marketing Admin systems Accounting
Payment Services Marketing, Insights, Admin P.O.S. & Management Systems
13ADDRESSABLE MARKET
The North American Gift Card & Loyalty market is estimated at $180 billion and has an estimated 20% CAGR
Ackroo’s current % penetration of the CDN & US Markets
25.0%
20.0%
15.0%
10.0%
5.0%
0%
Automotive Petroleum Hospitality Retail
CDN Market CDN Market
2 NICHE VERTICALS PLUS SIGNIFICANT ROOM FOR GROWTHSOME OF OUR CLIENTS
Large Sized Merchants Medium Sized Merchants Small Sized Merchants
ACKROO SUPPORTS OVER 1,500 CLIENTS ACROSS OVER 5,000 CLIENT LOCATIONS
15SOME OF OUR PARTNERS
16BUSINESS MODEL
• Platform Setup, initial Cards/collateral & Custom Development
• $250 - $1,000 per location for MKTG & $3,000 - $5,000 for POS
1. ONE TIME SETUP REVENUE (OTR)
• No charge for PAY
• Platform access, development & support
2. MONTHLY SUBSCRIPTION • $25 - $1,000 a location per month
REVENUE (MRR) • Current average is $83 per loc per month
3. VARIABLE SUBSCRIPTION • Payment & POS residual Commissions
REVENUE (MRR)
• Email & direct Mail Marketing
4. OTHER PRODUCT • Additional collateral
REVENUE (OTR) • Custom development
• Current average is $16 per location per month
Current average monthly revenue = $99 per location per month
17ORGANIC GROWTH
Approach Technology Geography
New
expanded
products
Cross Product Direct
Sell Partners Sales
Integrated
solutions
POS
PAYMENT
MARKETING
Centralized
LOYALTY
solution
PROMO
E-GIFT
GIFT
Expand, Integrate, Centralize CDN & US Expansion
via new partners & offerings
MKGT = 83% of clients
POS = 10% of clients 90% + of Revenue
PAY = 7% of clients is CAD todayINORGANIC GROWTH HISTORY
Deal # 1 2 3 4 5 6 7 8 9 10
Company
Rev Mult Paid 2.5x 2x N/A 1.5x 2x 1.5x 2x 1.5x 2x 2x
Structure 100% 80% cash Cons Ag 100% 80% cash 10% cash 100% cash 100% cash 100% cash 100% cash
stock 20% stock stock 20% stock 20% stock
Integration 3 months 24 months 6 months 5 months 8 months 18 months TBD TBD TBD TBD
Time
Extra WINS from M&A over and above of customers, revenue and talent:
PGC DRC & OnTab & KESM/ IQ724 & BNA GGGolf
added Loyalint D1 Mobile LoyalMark WinWin added added
gift card added added added added Payment P.O.S.
fulfillment Automotive Mobile Petroleum BI & Digital
Marketing
19INORGANIC GO FORWARD STRATEGY
Focus on the
small to medium
sized sweet spot
Expand
solution
40%+ of & reach
revenue
adds to
EBITDA
Normalize
within
Add
12 months
customers,
tech +
talent
Focus on
accretive
deals
Acquire
1-2 Per
Year
*Double down on our 3 core areas + continuously adapt*
2
0SOME DIRECT & INDIRECT COMPETITION
Gift Card & Loyalty Marketing & Mobile Payment Point-of-Sale
• Lots of companies in each area
• Most companies are private companies
• Each company has their niche’s they focus on (size and/or vertical)
• Many are starting to develop and sell products/services into other areas
• Ackroo is focused on consolidating this marketplace
21SOME PUBLIC MARKET PEERS
AIM.TO: Focus on enterprise loyalty programs including coalitions
AKR.V: Focus on small to mid sized direct loyalty, gift card, payments and point of sale solutions
LSPD.TO: Focus on SMB point of sales solutions for hospitality & retail + offer basic loyalty, gift and payments
AKR.V: Integrates with point of sale solutions like LSPD + offer advanced loyalty, gift card and point of sale
solutions across Hospitality, Retail, Automotive & Petroleum
SHOP.TO: Focus on e-commerce business point of sale solutions primarily in retail + include payments
AKR.V: Integrate with e-commerce solutions like Shopify + offer advanced loyalty, gift card, payment and P.O.S solutions
NYSE.PAR: Focus on point of sales solutions for enterprise hospitality & retail
AKR.V: Focus on all sized merchants in loyalty, gift card, payments and P.O.S. for Hosp, Retail, Automotive & Petroleum
QIS.V: Focus on consolidating automotive software and services industry including DMS systems
AKR.V: Focus on consolidating the loyalty marketing, gift, payments and POS industry in Hosp, Retail, Automotive & Petro
22HOW WE DIFFERENTIATE TODAY
FOCUS
Vendor & Industry consolidator for ALL merchant sizes
INDUSTRY DIVERSIFICATION
Specialize in Automotive, Petroleum, Hospitality & Retail
BREADTH OF OFFERING
Marketing + Payment + Point-of-Sale
PLATFORMS
Data driven, self-serve & niche
AFFORDABILITY
Priced for all merchant sizes
GO TO MARKET
Acquisition & Direct Sales
PARTNERSHIP
Who and how we partner
GEOGRAPHY
Based in Hamilton, ON, Canada with North American focus
PUBLIC CURRENCY
Access to growth capital & liquidity draws interest for M&A
23ADDITIONAL INVESTOR CHECKLIST
MARKET LEADERSHIP
Vendor consolidator for merchants + Industry consolidator
CLOUD SaaS PROVIDER
Highly scalable technology infrastructure and approach
OMNI CHANNEL
Brick & mortar & e-commerce
PAYMENTS
Reseller of market leading payment solutions
BIG DATA
Integrated BI and soon AI technology
DIGITAL/MOBILE MARKETING
Expanded product and services offerings
PROVEN M&A RESULTS
10 accretive deals and counting
LARGE TAM
$180B market and growing at 20% + per annum
STRONG REVENUE GROWTH
34% CAGR since founding in 2012
RECURRING REVENUE
84% of all revenue is recurring
EARNINGS GROWTH
51% of CAGR since turning profitable in 2018
ATTRACTIVE VALUATION
Trading @ 3x revenue and 13x forward EBITDA
24SHARE STRUCTURE & OWNERSHIP
Shares Outstanding 103 million
Market Cap1 $20 million
Options Granted2 7 million
Management & B.O.D Approx. 30%
Warrants3/4 35 million
Additional Insiders Approx. 30%
Fully Diluted3/4 145 million
1. As of January 4th 2021
2. Average weighted options strike price is $0.13
3. Strike is $0.10 for 10,000,000 warrants expiring July 2022 or accelerate @ $0.20
4. Strike is $0.18 for 25,000,000 warrants expiring November 2023 or accelerate @ $0.28
25OUR TEAM
Senior Management
Steve Levely | CEO
Sales, Marketing and Executive leadership expertise; Pitney Bowes, Maritz, and Ackroo
Derek Schaaf | CFO
Finance & Executive leadership expertise; CMC Distribution, Great Blue Resorts and Ackroo
Board of Directors
Steve Levely | Director
Sales, Marketing and Executive leadership expertise; Pitney Bowes, Maritz, and Ackroo
Sam Cole | Director
Corporate securities law expertise; ASKD Law and Cassels Brock & Blackwell LLP
Wayne O’Connell | Director
Public and Private accounting expertise; Jones & O’Connell LLP
Kristaps Ronka | Director
Technology founder, investor and executive; AdParlour and Namesilo
Jason Donville | Director
Capital markets research and investment expertise; Cormark Securities and DKAM
Francis Shen | Director
Technology and M&A expertise; Aastra Technologies and Shen Capital Partners Inc.
26CONTACT INFORMATION
Ackroo Inc.
Steve Levely
416.360.5619 x 730
slevely@ackroo.com
Hamilton Office
1250 South Service Road, A3 1
Hamilton, Ontario L8E 5R9
Consolidate, Simplify & Improve!
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