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Investor Presentation
May 2012
DISCLAIMER
1
This Presentation contains forward-looking information that is based on the beliefs of
management and reflects Snipp's current expecations. Forward-looking information may
involve known and unknown risks, uncertainties and other factors that may cause our
actual results, levels of activity, performance, or achievements to be materially different
from any future results, levels of activity, performance, or achievements expressed or
implied by such forward-looking statements. Such factors include, among other things,
those listed under "Disclaimer for Forward-Looking Information" in the Alya Ventures Ltd.
news releases dated November 18, 2011 to March 5, 2012 and as filed on SEDAR. When
used in this Presentation, the words "estimate", "project", "belief", "anticipate", "intend",
"expect", "plan", "predict", "may" or "should" and the negative of those words or such
variations thereon or comparable terminology are intended to identify forward-looking
information. Although we believe that the expectations reflected in the forward-looking
information are reasonable, we cannot guarantee future results, levels of activity,
performance, or achievements. Neither Snipp nor any other person assumes responsibility
for the accuracy and completeness of such forward-looking information. Snipp does not
undertake to update this information at any particular time.
The Securities offered hereby are speculative and involve a high degree of risk. The
purchase of these securities is suitable only for persons who can afford the risk of loss of
their entire investment. Prospective investors should carefully consider all of the risk
factors before making an investment decision. Prospective investors should seek
professional advice from a registered broker or financial planner before making any
investment.
All $ amounts in this document are U.S. dollars unless stated otherwise.
2011 WAS A MAJOR INFLECTION POINT FOR MOBILE
− More smartphones were sold than PCs worldwide In five years, 3x more smartphones will be sold
− More people had broadband internet access through their
phone than through their computer In five years, 4x more people will have mobile broadband access
− More people had smartphones than feature phones in the
USA In five years, almost all phones in the USA will be smart phones
− More traffic on social media sites was generated from mobile
phones than from PCs
Mobile is not just the future, its already here!
(and there’s just going to be more and more of it…)
MOBILE IS NOT JUST THE FUTURE, IT’S ALREADY HERE
3
In 2011, for the first time ever, more smartphones
were sold than PCs worldwide
In 2011, for the first time in the US, more people owned
smartphones than feature phones
People are doing more of everything on
their mobile phones
Worldwide, more people have broadband internet
access through their phone than through their
computer
TECHNOLOGY BULL MARKET - GOOD TIMING
4
Over the last 12 months, tech IPO’s are leading the way • Recent IPO successes ProofPoint, Infobox, Millennial Media,
Splunk, Yelp, Jive, LinkedIn
• Apple has the world’s largest market cap in history, all blue chip
techs are outperforming other industries with growth and cash
• Nasdaq crosses over 3,000
• Mobile/social media leading the way
• Anticipation for IPO’s of social media mammoths Facebook and
Twitter to possibly re-ignite 1990’s style tech market
• High returns in blue chip tech always partially filters down to
microcap and start up investments for higher returns
• Acquisitions heating up in the tech space at high valuations –
Started with Google purchase of AdMob latest Facebook acquires
MOBILE MARKETING GROWING TOWARDS A MEGA MULTI-BILLION $ INDUSTRY ANNUALLY
Source: Gartner June 2011, Barclays Capital 2009, Snipp estimate & analysis
Overall Mobile-Marketing: Explosive Growth
Towards a Multi-Billion $ Market Near-Term
N Am
ROW
~$1b ~$6b
CAGR +60-70%
5
Potential addressable market in 6-8 years
“Mobilization”
of traditional
US display
ad market
Market size ($b)
+ International
+ Other “under-
utilized”
marketing
assets”
Immediate
opportunities in
“underutilized”
marketing
assets”
Snipp’s Addressble Market:
Multi-Billion $ Market Medium-Term
Leading players in Snipp’s market could
include $100m+ companies medium-term
Market size ($b)
Compare traditional
US ad markets
• Magazines ~$9b
• Outdoor ~$6b
SNIPP HELPS TRANSFORM TRADITIONAL MARKETING CAMPAIGNS – BRIDGING OFFLINE and ONLINE WORLDS
6
TRADITIONAL MARKETING
• Static ads, mainly
brand-building
• Narrow, un-customized
content
• 1-way/broadcast
• Audience sampling
• Limited link to future
audience actions
• End-to-end campaigns
– driving sales
• Rich versatile content,
customized for the user
• 2-way/interactive
• Real-time measurement
• Detailed call-to-action
behavior metrics
“MOBILIZED” MARKETING
SNIPP’S MOBILIZE ME PLATFORM PROVIDES A FULL SET OF MOBILE TOOLS TO MARKETERS
SMS QR codes/ Microsoft Tags Digimarcs
Snapp Tags
MOBILE RESPONSE MECHANISMS
text WHY SNIPP to 76477
Snipp’s image recognition technology allows any image to become a tag. (e.g. brand logos, UPC codes etc.)
CONTENT DELIVERY SYSTEM
SMS
Mobile website with more info
Mobile website to collect data (e.g. name, address etc)
Email delivered to their inbox
Mobile video streamed to their phone
Mobile video sent via MMS
Images / audio sent via MMS
Sweepstakes or giveaways
Coupons by email, mobile or mail
Ringtones, wallpapers
Audio callbacks on your phone
Sign up for Alerts
Geo location capabilities
Added to an online account for retrieval later (with widget)
MOBILIZE ME Platform
Intelligence and Metrics
• Mobile Web page generator
• Sweepstakes Engine
• Mobile video delivery platform
• Rules engine • Data Builder • Coupon Engine
• Augmented Reality Campaigns • Campaign specific Mobile Apps • Loyalty Program Management • QR in the Cloud
RECENT ISSUE OF ESPN MAGAZINE – MOBILIZED BY SNIPP
8
SNIPP MAKES CAMPAIGNS MORE INTERACTIVE
9
To enter contests and sweepstakes… To get more information back…
To receive a sample or coupon
To express their opinions or give
feedback…
SNIPP MAKES CAMPAIGNS MORE ENGAGING
10
Snapp! Image Recognition
Campaign Overview: Oreo
fans could take photos of any
Oreo packaging and receive
back content, coupons
Use case: Companies uses
product packaging to launch
dynamic campaigns – w/o
making expensive changes to
the packaging
Audio callbacks + MMS Video
Use case: Clients can use mobile to personalize the
user experience and make celebrity endorsements
more visceral for consumers
Campaign Overview: For the launch of Jimmy
Johnson’s new video game, fans could text to
receive a phone call back with a recorded audio
message as well as a video of the NASCAR driver
QR Codes / SMS + Streaming Video
Use case: Companies can use QR
codes and SMS to showcase relevant
content for fans
Campaign Overview: Taco Bell
partnered with ESPN to provide
Mobile Content Microsites
Use case: Companies can provide consumers with
addl. product information related to the ad, without
being space constricted
Campaign Overview: Elizabeth Arden and Walmart
created a “fragrance finder” for consumers to allow
them to select the perfect scent
customers with
exclusive college
football video
content
SNIPP MAKES CAMPAIGNS MORE MEASURABLE
11
SMS / MMS Campaigns • Phone numbers
• Location (area code; through
registered address lookup)
• Time of day / no. of responses
• Email address response option
• Mailing address response option
Who are my customers?
2D Barcode / Mobile Web • Device info (mfr., OS, model)
• Location (based on GPS)
• Time of day / no. of responses
• Email, mailing address, phone
number can be captured through
mobile forms
How well are my campaigns doing?
• Stylewatch uses Snipp data to determine in real-time which fashion
items are popular with readers – and fine-tunes editorial content
accordingly
• A motor company used Snipp data off a sweepstakes campaign to
adjust advertising spend across specialty enthusiast magazines
• GQ and American Baby have used Snipp to determine the
effectiveness of particular advertising channels and marketing
messages
SNIPP HAS A SOLID GROWTH TRACK-RECORD
12
0
100
200
300
400
2008 2009 2010 2011
CAGR 2009-11: 61%
(E)
$ „000
• Internally financed 2007-2011
• No dedicated full-time sales resources until 2012
Snipp Annual Revenue(1)
(1) Snipp 2008-2010 audited financials; 2011 unaudited estimate.
SNIPP HAS and CONTINUES TO SERVE CLIENTS ACROSS THE MARKETING/ ADVERTISING VALUE CHAIN
13
Publishers / Distributors Agencies Advertisers / Brands
Erik Hällström, CEO
Atul Sabharwal, Founder
Ritesh Bhavnani, Founder
SNIPP HAS BUILT A STRONG MANAGEMENT TEAM
14
• 15+ years experience creating and growing technology & services companies
• COO at Lightbridge (formerly Thorium Power) - international energy technology and
advisory company
• Head of Strategy & Bus Dev at WorldSpace Satellite Radio - international media and
technology company
• US Co-head at boutique growth consulting firm Inzenka
• Project manager with the Boston Consulting Group in North America & Europe, and
member of its high tech & media practice
• MBA INSEAD, M.Sc. The Royal Institute of Technology (Applied Mathematics), M.Sc.
Stockholm School of Economics (Finance)
• 10+ years in the digital media/mobile industry
• Served as Executive Director of Acme Group - $2+ billion company based in India
• Served on Board of eSolar an Idealabs company, funded by Google, GE & Oak Capital
• Founder of Finalysis Group - consulting group and provider of remote services such as
call center management and lead generation to corporate clients
• Earlier roles also include positions at AOL IBM Business Services (previously PWC
Consulting), the Boston Consulting Group and News Corporation
• MBA from the Australian Graduate School of Management & Wharton/UPENN
• 10+ years in the digital media/mobile industry
• Engagement Manager at McKinsey and member of its Media, Technology &
Telecommunications practice
• GM at Precicompo - Indian automotive manufacturing business
• Founded UnSurface - consumer-facing digital media distribution service company; later
sold to Sony Music Corp
• MBA INSEAD, BS Stanford University (Computer Science)
SNIPP HAS BUILT A STRONG MANAGEMENT TEAM, Cont.
Anthony Durkacz, CFO
Wilson Bell, CTO
15
• 10+ years of CFO experience from public and private growth companies
• President of Snipp Canada
• COO and Director of MKU Canada – subsidiary of India based Acme Group
• CFO and Director of Astris Energi – energy company publicly listed in the US & Canada
• Manager at TD Securities
• Honours Bachelor of Business Administration, Brock University (Finance & Accounting)
• 25 years experience in software development and management of mission critical
systems
• Chief Architect of Snipp’s Mobile Marketing Platform
• Wide range of roles at SAIC in the US and overseas
• US Marine Corps veteran
• B.S. Mary Washington College (Mathematics)
THE OPPORTUNITY: IN TRADITIONAL MARKETING…AND BEYOND
Outdoor
Direct Mail
Source: Barclays Capital 2009; Snipp estimates & analysis.
~$6b (10-yr: +14%)
~$52b (10-yr: +17%)
Newspapers
~$23b (10-yr: -52%)
Magazines
~$9b (10-yr: -26%)
Traditional Advertising
Public/Non-profit/Emergency Info
“Underutilized” Display Mkt Assets
Packaging
Tickets Malls/
Venues
Examples
Examples
Examples
Publishers/Display Marketing Asset Owners Value of SNIPP
• Powerful sales tactics
• Rich interactivity
• Micro segmentation
• Clear measurability
• Improved ROI
• Interactivity
• Rich logistics & sales
content and tactics
• Low-cost, rich information
• Improved customer
service & revenue
16
Snipp boosts $
value of display
media!
THE COMPETITIVE LANDSCAPE IS DYNAMIC AND STILL FRAGMENTED
17
No entrenched competitors yet.
Market is large, diverse &
dynamic.
Beginnings of industry
consolidation.
Opportunities exist to partner,
compete and exit.
Some brands will develop in-
house capabilities – exception
and an opportunity for licensing.
Barriers-to-entry:
• End-to-end service quality
& credibility
• Client relationships
• Development of execution
model (speed & cost)
• Technology (to some
extent)
Size of Company
Display marketing
mobilization focus/
depth of functionality
Acquired
N.A.
Examples
Source: Snipp estimates & analysis.
Generalist Internet/
mobile marketing
MOBILE MARKETING COMPARABLES 2011
18
Company Sales EBIT Mkt Cap EV EV/Sales EV/EBIT
$3m(2)
$7m(4)
$20m(7)(8)
$0.4m(10)
Augme • Mobile mkt &
tech co(1), OTC
BB listed
Hipcricket • Mobile mkt co,
acquired by
Augme 2011
Adenyo • Mobile mkt co,
acquired by
Motricity 2011
Snipp
-$12m(2)
-$5m(4)
N.A.
$0m(10)
$216m(3)
$72m(4)(5)
$150m(5)(7)
$6.8m(11)
$205m(2)
$71m(6)
N.A.
$4.6m(11)
73
10
8(9)
12
Neg.
Neg.
N.A.
Undef.
(1) Also incl an Internet technology legacy business; (2) Augme 10-K; (3) Mkt cap on day after 10-K filing 16 May, 2011; (4) FY 2010, Augme 8-K;
(5) Purch price incl earn-out; (6) Augme 8-K; (7) Motricity press release 31 Jan, 2011; (8) Approx 2010 revenue; (9) Purch price/sales;
(10) Unaudited FY2011; (11) Assuming US$1.9m QT Financing (US$1.8 net) at $0.15/unit and US$0.4m treasury
SNIPP IS WELL-POSITIONED TO COMPETE
19
Client track-record & credibility
Service (campaign design & execution)
Low-cost (supporting affordable pricing)
Competitive Advantage
• Proven track-record with market-leading
publishers, ad agencies and brands
• Deep campaign experience and versatility
of hundreds of campaigns conducted
• Solutions-driven sales model
• Platform flexibility & integration
• Campaign-tested workflow supported by
on-shore/off-shore organization
• Strategic focus on mobilizing display
marketing
• Best-practice on-shore/off-shore low-cost
delivery model (U.S./India)
• Platform scalability, flexibility,
standardization & lack of legacy issues
Sources of Advantage
Source: Snipp estimates & analysis.
Snipp competes based on a combination of client-validated, innovative and
affordable services, robust low-cost multi-location workflow and scalable,
custom-built technology -- created and refined over several years
SNIPP BUSINESS TARGETS
20
2012 2013 2014
Projected cash
flow positive
and profitable
by Q1 2014
Projected
revenue $5m+
Source: Snipp financial plan estimates.
STOCK SUMMARY – TICKER SPN ON TSX-V
21
Snipp Interactive Inc. trades on the TSX-V – Ticker symbol SPN
• Common shares issued & outstanding: 47,025,641; Trading float:
8,000,000
• Cash and cash equivalents $1.7 million
• No debt
• Snipp wants to dually list in the US as a domestic issuer expected in
Q3
Mobile/social media marketing pure play publicly listed in Canada
• Maintain tight float in the US and Canada
• Take advantage of a very high growth industry
• Continue to add sales personnel
• Increase IR and PR exposure
SNIPP COMPANY OVERVIEW
22
Focused strategy exploiting rapidly growing mobile marketing industry • Mobilizes traditional marketing and information campaigns
• Boosts value of marketing assets for clients; bridges offline-online
1
Mobile/Social Media
Marketing pure play
on the TSX Venture
Exchange (ticker
SPN.V)
4
Snipp Interactive Inc.
Best-in-class mobile marketing platform and
tested low-cost multi-location workflow • Scalable, low-cost, versatile & flexible
• IT integration & marketing/creative support services
2
Proven client success; credibility • Hundreds of campaigns in >3 years
• Publishers, ad-agencies, brands
3