Corporate presentation Mar 2012 - Proactive Investors

proactiveinvestors.co.uk

Corporate presentation Mar 2012 - Proactive Investors

Investor Presentation

May 2012


DISCLAIMER

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.

1


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

Worldwide, more people have broadband internet

access through their phone than through their

computer

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

3


TECHNOLOGY BULL MARKET - GOOD TIMING

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

4


MOBILE MARKETING GROWING TOWARDS A MEGA MULTI-BILLION

$ INDUSTRY ANNUALLY

Overall Mobile-Marketing: Explosive Growth

Towards a Multi-Billion $ Market Near-Term

Market size ($b)

Compare traditional

US ad markets

• Magazines ~$9b

• Outdoor ~$6b

Snipp’s Addressble Market:

Multi-Billion $ Market Medium-Term

Market size ($b)

“Mobilization”

of traditional

US display

ad market

CAGR +60-70%

~$1b

~$6b

ROW

N Am

+ International

+ Other “underutilized”

Immediate

opportunities in marketing

“underutilized” assets”

marketing

assets”

Potential addressable market in 6-8 years

Leading players in Snipp’s market could

include $100m+ companies medium-term

5

Source: Gartner June 2011, Barclays Capital 2009, Snipp estimate & analysis


SNIPP HELPS TRANSFORM TRADITIONAL MARKETING CAMPAIGNS –

BRIDGING OFFLINE and ONLINE WORLDS

TRADITIONAL MARKETING

• Static ads, mainly

brand-building

• Narrow, un-customized

content

• 1-way/broadcast

• Audience sampling

• Limited link to future

audience actions

“MOBILIZED” MARKETING

• 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

6


SNIPP’S MOBILIZE ME PLATFORM PROVIDES A FULL SET OF

MOBILE TOOLS TO MARKETERS

MOBILE RESPONSE MECHANISMS

CONTENT DELIVERY SYSTEM

SMS

QR codes/

Microsoft Tags

Digimarcs

Snapp Tags

Snipp’s image

recognition

technology allows

any image to

become a tag. (e.g.

brand logos, UPC

codes etc.)

text WHY SNIPP

to 76477

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

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)


RECENT ISSUE OF ESPN MAGAZINE – MOBILIZED BY SNIPP

8


SNIPP MAKES CAMPAIGNS MORE INTERACTIVE

To enter contests and sweepstakes…

To get more information back…

To receive a sample or coupon

To express their opinions or give

feedback…

9


SNIPP MAKES CAMPAIGNS MORE ENGAGING

Snapp! Image Recognition

Use case: Companies uses

product packaging to launch

dynamic campaigns – w/o

making expensive changes to

the packaging

Campaign Overview: Oreo

fans could take photos of any

Oreo packaging and receive

back content, coupons

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

customers with

exclusive college

football video

content

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

10


SNIPP MAKES CAMPAIGNS MORE MEASURABLE

Who are my customers?

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

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

11


SNIPP HAS A SOLID GROWTH TRACK-RECORD

$ „000

400

Snipp Annual Revenue (1)

300

CAGR 2009-11: 61%

200

100

0

2008 2009 2010 2011

(E)

• Internally financed 2007-2011

• No dedicated full-time sales resources until 2012

(1) Snipp 2008-2010 audited financials; 2011 unaudited estimate.

12


SNIPP HAS and CONTINUES TO SERVE CLIENTS ACROSS THE

MARKETING/ ADVERTISING VALUE CHAIN

Advertisers / Brands

Agencies

Publishers / Distributors

13


SNIPP HAS BUILT A STRONG MANAGEMENT TEAM

Erik Hällström, CEO

• 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)

Atul Sabharwal, Founder

• 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

Ritesh Bhavnani, Founder

• 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)

14


SNIPP HAS BUILT A STRONG MANAGEMENT TEAM, Cont.

Anthony Durkacz, CFO

• 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)

Wilson Bell, CTO

• 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)

15


THE OPPORTUNITY: IN TRADITIONAL MARKETING…AND BEYOND

Publishers/Display Marketing Asset Owners

Examples

Traditional Advertising

Outdoor Newspapers

Value of SNIPP

~$6b (10-yr: +14%)

Magazines

~$23b (10-yr: -52%)

Direct Mail

• Powerful sales tactics

• Rich interactivity

• Micro segmentation

• Clear measurability

• Improved ROI

Examples

~$9b (10-yr: -26%)

~$52b (10-yr: +17%)

“Underutilized” Display Mkt Assets

Packaging

Tickets

Malls/

Venues

Snipp boosts $

value of display

media!

• Interactivity

• Rich logistics & sales

content and tactics

Examples

Public/Non-profit/Emergency Info

• Low-cost, rich information

• Improved customer

service & revenue

16

Source: Barclays Capital 2009; Snipp estimates & analysis.


THE COMPETITIVE LANDSCAPE IS DYNAMIC AND STILL FRAGMENTED

No entrenched competitors yet.

Size of Company

Examples

Market is large, diverse &

dynamic.

Beginnings of industry

consolidation.

N.A.

Opportunities exist to partner,

compete and exit.

Some brands will develop inhouse

capabilities – exception

and an opportunity for licensing.

Acquired

Barriers-to-entry:

• End-to-end service quality

& credibility

• Client relationships

• Development of execution

model (speed & cost)

• Technology (to some

extent)

Generalist Internet/

mobile marketing

Display marketing

mobilization focus/

depth of functionality

17

Source: Snipp estimates & analysis.


MOBILE MARKETING COMPARABLES 2011

Company Sales EBIT Mkt Cap EV EV/Sales EV/EBIT

Augme

• Mobile mkt &

tech co (1) , OTC

BB listed

$3m (2)

-$12m (2)

$216m (3)

$205m (2)

73

Neg.

Hipcricket

• Mobile mkt co,

acquired by

Augme 2011

$7m (4)

-$5m (4)

$72m (4)(5)

$71m (6)

10

Neg.

Adenyo

• Mobile mkt co,

acquired by

Motricity 2011

$20m (7)(8)

N.A.

$150m (5)(7)

N.A.

8 (9)

N.A.

Snipp

$0.4m (10)

$0m (10)

$6.8m (11)

$4.6m (11)

12

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

18


SNIPP IS WELL-POSITIONED TO COMPETE

Competitive Advantage

Sources of Advantage

Client track-record & credibility

Service (campaign design & execution)

Low-cost (supporting affordable pricing)

• 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

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

19

Source: Snipp estimates & analysis.


SNIPP BUSINESS TARGETS

Projected

revenue $5m+

Projected cash

flow positive

and profitable

by Q1 2014

2012 2013 2014

20

Source: Snipp financial plan estimates.


STOCK SUMMARY – TICKER SPN ON TSX-V

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

21


SNIPP COMPANY OVERVIEW

1

Focused strategy exploiting rapidly growing mobile marketing industry

• Mobilizes traditional marketing and information campaigns

• Boosts value of marketing assets for clients; bridges offline-online

3

Proven client success; credibility

• Hundreds of campaigns in >3 years

• Publishers, ad-agencies, brands

2

Best-in-class mobile marketing platform and

tested low-cost multi-location workflow

• Scalable, low-cost, versatile & flexible

• IT integration & marketing/creative support services

4

Mobile/Social Media

Marketing pure play

on the TSX Venture

Exchange (ticker

SPN.V)

Snipp Interactive Inc.

22

More magazines by this user
Similar magazines