2019 INVESTOR OVERVIEW SNIPP INTERACTIVE INC. TSX-V: SPN OTCQB: - - PowerPoint PPT Presentation

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, invitation or recommendation in respect of Snipp Interactive Inc.’s securities,

• r an offer, invitation or recommendation to sell, or a solicitation of an offer

to buy, the facilities or any of the Company’s securities in any jurisdiction. Neither this presentation nor anything in it shall form the basis of any contract

• r commitment. This presentation is not intended to be relied upon as advice

to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. These projections should not be considered a representation of the Company’s potential cash generation performance in any way. Some of the financial information included in this presentation is preliminary, forward-looking, unaudited and subject to revision. All forward–looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document, and are expressly qualified in their entirety by the cautionary statements included elsewhere in this

• document. All forward-looking statements involve risks and uncertainties, which

may cause actual results to differ materially from the statements made. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one

• r more of these risks and uncertainties, such as changes in demand for and

prices for the products of the company or the materials required to produce those products, labor relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. The financial projections are preliminary and subject to change; the Company undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the

• ccurrence 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.

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SNIPP - WHAT WE DO

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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.

OUR CLIENTS ARE TOP MULTINATIONAL BRANDS

LESS THAN 10% PENETRATED INTO OUR CURRENT CUSTOMERS

4

CPG ALCOHOL PHARMA HOME & OUTDOOR TELECOM LIFESTYLE EUROPE OTHERS

AGENCIES & PARTNER COMPANIES

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INCENTIVE MARKETING NETWORKS ADVERTISING & MARKETING AGENCIES

RETAILERS

RETAILERS

SOME OF OUR PROGRAMS

TRUSTED BY GLOBAL FORTUNE 500 COMPANIES

Loyalty Promotion API/License API/License Promotion Promotion Rewards Store Promotion

SOME OF OUR PROGRAMS

B2B Loyalty Gamification &Instant WIn Rebate Receipt Processing Sweepstakes Continuity Program Rewards Loyalty (Ziploop)

AND BY MID-SIZE BRANDS

SNIPP – WHERE WE PLAY…TODAY

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Who Is My Customer? Where Can I Find Them? How Do I Target Them? Did They Buy My Product? How Do I Keep Them Coming Back?

Market Research Advertising Technology Marketing Technology

$50B $563B $80B

*Global Spend as reported by Statista

Market Size Industry Category

WHY IS OUR PLATFORM IMPORTANT?

Consumers Retailers Brands

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half”

• John Wannamaker

“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?”

Retailers have the power of purchase data, Brands have none

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Advertising has a measurement problem

2

$ $

Connecting brands directly to the consumer with effective advertising and incentives

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SNIPP TODAY

EMPLOYEES: 44% IN ENGINEERING

85

GROSS MARGIN FOR Q4’18 VS 66% IN Q4’17

69%

CASH+AR $4MM EBITDA IMPROVEMENT 2018 VS 2017 58%

57%+

REVENUE CAGR SINCE LISTING (2012-18)

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3 CONSECUTIVE YEARS (2016-18) ON DELOITTE’S TECHNOLOGY FAST 500TM, A LIST OF THE 500 FASTEST GROWING COMPANIES IN NORTH AMERICA

CASH FLOW FROM OPERATIONS FOR FY’2018

+

BOOKINGS INCREASE FOR 2018 VS 2017 25% 2018 BOOKINGS – HIGHEST IN HISTORY $15.5MM

Loyalty Program Purchase Program B2B Program Rebate Program

SNIPP – HOW WE DO IT

Receipt / Purchase Validation Rewards Platform Loyalty Engine

Technology Engines / Platform Industry Solutions

Future Solutions

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Modular Technology Stack Enables Multiple Business Models…

Rebates Platform

Contests & Promotions Receipt & Image recognition Instant Win Sweepstakes Gift With Purchase Social Media Promotions Punchcard / Continuity Rebate Programs Enterprise Loyalty Insights & Analytics Loyalty in-a-box (Ziploop) Research Solutions

MOBILE INFLUENCER PLATFORM

Incentive & Influencer Programs

% of 2017 Rev

REVENUE MODEL TODAY

DIVERSIFIED HIGH MARGIN REVENUE ACROSS SEGMENTS

% of 2016 Rev

69%

Promotions / Rewards

• High no of repeat clients
• Campaign sizes continue to

increase

Loyalty & Rebate Solutions

• Long-term recurring revenue
• We run 3 of the largest

consumer loyalty programs – Kellogg, Starbucks and Huggies

Licensing

(Previously called API Sales)

• Our technology is modular

enabling us to gain licensing revenues 20% 11% 53% 38% 9%

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49% 42% 9%

SAAS Style Recurring Revenues

% of 2018 Rev

CURRENT TRENDS: METRICS Q4’2018

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% of Revenue with Recurring Components Increasing Campaign Size Improving Margins Higher Campaigns Booked Booking Backlog

Q4’ 2017

44% 66% $39,815 $6.3MM

Q4 New Bookings

$4.1MM 58% 69% $66,036 52 $8.0MM $4.4MM

Q4’ 2018

82

CURRENT TRENDS: METRICS 2018

14

% of Revenue with Recurring Components Increasing Campaign Size Improving Margins Higher Campaigns Booked Booking Backlog

2017

47% 70% $42,153 $6.3MM

Bookings

$12.4MM 51% 65% $49.037 318 $8.0MM $15.5MM

2018

314

REVENUE VS EBITDA TREND

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Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 $2.11 $2.82 $3.31 $2.99 $2.48 2.85 3.7 3.84 2.87 3.02 2.94 3.32

• 2.46
• 1.54
• 1.18
• 1.3
• 1.01

$(0.71) 0.01 $(0.22) $(0.47)

• 0.67

$0.25 0.09

Revenue Vs EBITDA (USD, $MM)

Revenue EBITDA

2012 2015 2018 PHASE#1 PHASE#2

Phase#1 Key Milestones

• Raised seed capital
• Launch of Minimum Viable Product
• Established the Receipt Processing Industry
• Acquired Leading Fortune 500 customers
• Raised $10MM to fund solution development

Phase#2 Key Milestones

• Built + Bought technical components
• Completed Integrations of companies
• Launched disruptive industry solutions
• Exiting 2018 with +ive EBITDA for H2
• Crossed $15MM in bookings for 2018

Public on TSX with $2MM offering Launched Receipt Processing Engine Acquired HipDigital Rewards Solution Crossed $10MM in Sales Raised $10MM in Equity Acquired SwissPost Loyalty Engine Acquired Ziploop Machine Learning Engine Crossed $15MM in Sales Bookings Completed Integration

• f all Acquired Entities

Acquired Leading Fortune 500 Pilot customers

REVENUE MIX:

BUILDING LONGER TERM RECURRING REVENUE STREAMS

Full Time Employees

8 10 48 118

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$15,323,727 $12,590,231 $19,179,019

85

$20,151,286

2013 2014 2015 2016 2017 2018 $870,420 $3,562,045 $11,890,231 $11,223,727 $12,879,019 $12,151,286 $700,000 $4,200,000 $6,300,000 $8,000,000

Snipp USD Revenue & Bookings Backlog

Revenue Bookings Backlog

FOCUSED ON PROFITABLE GROWTH

SNIPP IS POISED FOR GROWTH

Focused on ramping our sales capability & performance

1

Low hanging fruit in servicing our existing clients in overseas market

2

We expect a high % of long-term high margin contracts

3

Scalability makes each incremental relationship more profitable

4

This is a fragmented industry, with many opportunities for growth

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EXPERIENCED MANAGEMENT TEAM

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Wayne Wang CTO

An expert in bridging the gap between business needs and technical implementations with direct experience on projects of varying size. A successful 15+ years track record of solid contributions in technical project leadership and people management across a variety of industries. Proficient in the Agile, SCRUM process with 15 years’ direct experience in software development, architecture and high level technical design for enterprise systems. Brings technical innovations, which drives business growth much faster and creates a huge competitive advantage Megan has over 10 years of software development and management experience. As our COO, she is responsible for overseeing all key operations including project management, product management, client services delivery, customer service, processing operations and

• HR. Prior to Snipp, Megan

was an executive at Precision Computer Works,

• Inc. where she launched

complex systems for societies such as the American Heart Association and the American Medical

• Association. She holds an

MBA from Johns Hopkins University. Atul is a founder of Snipp and has over 10 years experience in the digital media/mobile industry. Atul’s earlier experience includes serving as the Executive Director of the Acme Group, a board role at eSolar, founder of the Finalysis Group and executive positions with AOL, IBM Business Services, the Boston Consulting Group and News Corporation. He holds an MBA from the Australian Graduate School of Management and attended Wharton

Christian Hausammann MD Europe

Christian brings over 20 years of experience in the direct marketing, loyalty, gift card and payments industry in Consulting, Business Development and Key Account Management.

Megan Prikhodko COO Atul Sabharwal CEO and Founder Rahoul Roy CLO

Rahoul has over 15 years of experience practicing law in both the United States and India, and, prior to joining Snipp, was running his own corporate law practice in New York with an international clientele of serial entrepreneurs and multinational corporations. Rahoul was a Special Counsel to Brown Rudnick LLP, Rahoul obtained his BA. LLB., (Hons) from the National Law School of India, and his LL.M., with Distinction, from the Georgetown University Law Center where he was also

• n the Dean’s List and an

International Institute of Economic Law Fellow. Jaisun is Snipp’s CFO. He has

• ver 10 years of experience

in the financial accounting industry and is experienced in managing all aspects of public company financial and management reporting, forecasting and analysis, corporate governance and risk management. He holds an MBA from Laurentian University and a Bachelor of Science degree, with a double major in computer science and general biology, as well as a Diploma in Accounting from the University of British Columbia. He is a Chartered Professional Accountant (CPA, CGA) and is a member of the Chartered Professional Accountants of British Columbia.

Jaisun Gacha CFO

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 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 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 Group and News Corporation. He holds an MBA from the Australian Graduate School of Management and attended Wharton.

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Sarfaraz Haji Tom J. Burgess

EXPERIENCED BOARD

Atul Sabharwal

…& 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 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 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

• fferings 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 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.

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Tom McIssac Michael Dillon Dave Merkel

• 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.

• 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 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 to Sony Music Corp). Ritesh holds an MBA from INSEAD and a BS in Computer Science from Stanford University.

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Michael J. Cannata Ram Ramkumar

…& STRATEGIC ADVISORY BOARD

Ritesh Bhavnani

THANK YOU.

Snipp Interactive Inc 1.888.99.SNIPP (1.888.99.76477) investors@snipp.com