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Investor Presentation May 2012

Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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Page 1: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

Investor Presentation

May 2012

Page 2: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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.

Page 3: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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…)

Page 4: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 5: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Instagram

Page 6: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 7: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 8: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 9: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

RECENT ISSUE OF ESPN MAGAZINE – MOBILIZED BY SNIPP

8

Page 10: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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…

Page 11: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 12: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 13: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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.

Page 15: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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)

Page 16: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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)

Page 17: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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!

Page 18: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 19: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 20: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 21: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

SNIPP BUSINESS TARGETS

20

2012 2013 2014

Projected cash

flow positive

and profitable

by Q1 2014

Projected

revenue $5m+

Source: Snipp financial plan estimates.

Page 22: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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

Page 23: Investor Presentation May 2012 · performance, or achievements. ... Millennial Media, Splunk, Yelp, Jive, LinkedIn ... – driving sales • Rich versatile content, customized for

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