Ackroo Investor Deck

Copyright 2020 Ackroo Inc. All rights reserved.

Ackroo Inc.TSX Venture: AKROTC Pink: AKRFF

APRIL 2020


ACKROO INC. DISCLAIMER

Certain written and oral statements included in this presentation may constitute “forward-looking information” which reflect thecurrent expectations of Ackroo. This information reflects Ackroo’s current beliefs with respect to future events and are based oninformation 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 differentfrom 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-lookinginformation prove incorrect, actual results, performance or achievements could vary materially from those expressed or impliedby the forward-looking information contained in this presentation. Although forward-looking information contained in thispresentation is based upon what Ackroo believes to be reasonable assumptions, management cannot assure Users that actualresults, performance or achievements will be consistent with this forward-looking information and cautions that undue relianceshould not be placed on the forward-looking information. The forward-looking information is made as of the date of thispresentation and Ackroo does not assume any obligation to update or revise it to reflect new events or circumstances, except asrequired by law.

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What we do

Our Vision

To simplify, consolidate and improve the merchant marketing and payments landscape

Our Mission

To help Automotive, Petroleum, Hospitality and Retail merchants of all sizes attract, retain and grow their customers and their revenues

Our Solution

▪ An easy to use, self-serve marketing platform that manages important currencies including loyalty, gift card, promotions and payment.

▪ An open solution that integrates seamlessly into a merchants point-of-sale environment or customer engagement application

▪ A product that provides merchants with key insights and tools to help shift, lift, retain, and engage their customers

▪ An in-store and online solution that will continue to evolve through product and industry consolidation

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Gift Cards Loyalty Marketing Payments


$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Our Results – Revenue

Fiscal Year Amount +/-%

2012 $681,142 N/A

2013 $1,284,016 89%

2014 $1,328,166 3%

2015 $1,822,224 37%

2016 $2,224,165 22%

2017 $2,737,830 23%

2018 $4,435,019 62%

2019 $5,233,227 18%

2020* TBD X%

Annual Revenue Revenue Data

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-$4,000,000

-$3,500,000

-$3,000,000

-$2,500,000

-$2,000,000

-$1,500,000

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

2012 2013 2014 2015 2016 2017 2018 2019

Our Results - EBITDA

Fiscal Year Amount +/-%

2012 - $3,421,920 N/A

2013 - $2,509,484 27%

2014 - $1,608,162 36%

2015 - $853,021 47%

2016 - $607,466 29%

2017 - $502,315 17%

2018 + $406,427 N/A

2019 +$614,034 51%

2020*(TBD) +$X X

Annual adjusted EBITDA EBITDA Data

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Financial Highlights

✓

Proven Execution

6

36% Revenue CAGR Since

Founded

Closed 9 M&A deals

96% + Retention Rate

9-1 Organic CAC to LTV Ratio

80% + Gross Margins

$200k + Revenue per employee

4-1 Inorganic CAC to LTV Ratio

EBITDA Positive as of 2018

51% EBITDA CAGR since 2018

12% net margin/EBITDA

and growing

✓ ✓

✓✓

✓

✓

✓ ✓

✓75% + of Revenue

Recurring ✓

Cash Flow Positive as of Q2

2019✓


•Founded & began trading on TSX-V•Added 1st

Primary Channel Partner

Our Story – Major Milestones

•Rebuilt Ackroo technology•Defined commercial model

•Steve Levely becomes CEO•Added 2nd Channel Partner•10-1 Share consolidation

•Acquired PhotoGIFTCARD & Dealer Rewards

•Acquired OnTab, D1 Mobile & Loyalint•Added 3rd Channel Partner

•Integrated many POS solutions•Acquired KESM/LoyalMark

•Specialization into Auto, Petro, Hosp & Retail•First EBITDA positive year

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2015

2017

20122014

20162018

2019

•Acquired IQ 724•Launched 1st self serve signup product w/ Clover•Added AckrooPAY & BI

2020

•Acquired WinWinMarketing & BNA Smart Payments

2013


• 77 millionShares

Outstanding1

• 6.5 millionOptions

Granted 2

• 10.4millionWarrants3

• C$11 millionMarket Cap4

• Approx. 50%Insiders &

Management

• Approx. 70% Top 15 Shareholders

• 10 % of i/o Options Pool

1. As of April 28th 20202. Average weighted options strike price is $0.133 3. Strike is $0.10 for 10,375,364 warrants expiring July 2022 4. As of April 28th 2020

Share Structure & Ownership

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Industry Comparables

$6M $4M $3M

$128M

$0M

$20M

$40M

$60M

$80M

$100M

$120M

$140M

AKR.V ALY.V OSS.V LSPD.TO

2x

5x

13x

16x

0x

5x

10x

15x

20x


18%

-24%-38%

50%

-50%

0%

50%

100%


Market Cap Trending Annualized Revenues

Revenue Multiple Estimated YOY Growth Rate

(Data as of April 28th 2020) Ackroo is the ONLY EBITDA Positive Company

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AKR = Ackroo ALY = Analytix Insight OSS = One Soft Solutions LSPD = Lightspeed POS

$10M $21M $39M

$2,000M

$0M

$500M

$1,000M

$1,500M

$2,000M

$2,500M



Ackroo will continue to differentiate in the future by expanding into other aspects of the industry’s ecosystem

Market Positioning

Payment

P.O.S.Marketing

Gift/Loyalty

10

Ackroo Today Industry Ecosystem

Companies within all 4 areas are partnering, competing and

consolidating

Ackroo Future

Ackroo is differentiated today by providing expanded marketing

and payments services

Marketing

Payments

Gift/Loyalty Marketing

PaymentsTBD

Gift/Loyalty


The North American Gift Card & Loyalty market is estimated at $180B

Estimated 20% CAGR

Addressable Market

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Automotive Petroleum Hospitality Retail

Ackroo’s current % penetration of the CDN & US Market

CDN Market US Market

SIGNIFICANT ROOM FOR GROWTH

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How we do it

We provide a closed loop in-store and online automated marketing solution

We also provide additional services to help our clients grow

Process gift card, loyalty & promotional transactions at

the point-of-sale

Provide merchants with important administrative

and marketing data

Allow consumers to access and manage their gift card &

loyalty accounts

Help merchants sell their gift cards at

other retailers

Digital and physical marketing services to maximize results

Distribution Marketing

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Email Marketing

Direct Mail

Gift Card Mall

Payments

Credit & Debit Transaction processing


Client Benefits

Gift cards increase merchant revenues and cash flow

Loyalty protects margin, attracts customers, creates lift and drives behavior

Marketing platforms provide key insights and actionable tools to drive results

Other Ackroo platform benefits for merchants

✓ Removes manual labor, fraud and theft from paper

based options

✓ Centralizes data and reporting for gift card and

loyalty programs

✓ Enhances their customers experience

✓ Provides a self-serve platform allowing for swift

changes to marketing strategy & admin setup

✓ Provides a centralized solution for all primary

merchant currencies

✓ Provides significant cost savings for debit and credit

card processing

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Payment Processing is a necessary service needed for all merchant types


Large/Enterprise Merchants:

Medium Sized Merchants:

Small Sized Merchants:

Some of our Clients

ACKROO SUPPORTS OVER 4,800 CLIENT LOCATIONS AND GROWING

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Some of our Partners

15

http://cloudfront.ingenico.com/zee_uploads/all/all/gallery_gallery/7826/20140605-ingenico-becomes-ingenico-group.mp4


Monthly Subscription

Revenue (MRR)

•Platform access, development & support

Other Subscription

Revenue (MRR)

•Payment & specialty services commissions

One Time Services Revenue

(OTR)

•Platform setup, design & custom development

Marketing Services Revenue

(OTR)

•Cards + collateral•E-mail & direct Mail marketing

Company Business Metrics 2019/2020 Description

MRR to OTR Ratio 77% | 23 % Fixed vs. Variable Revenue

Average MRR per location per month $84 Monthly Recurring Revenue

Average OTR per location per month $22 Monthly One Time Revenue

Average TR per location per month $106 Monthly Total Revenue

Gross Margin 84% Revenues less COGS

Approximate LTV (7 year min) $8,904 TR x 84 months

Average CAC (Organic) $975* Sales, Marketing and Channel costs % added locs

RPE (29 staff) $200,000 + Revenue Per Employee

Retention 96%+ Lost locations % by total locations

Organic Closing Ratio 35% Inbound & Channel leads

Locations 4,800 + Active customer locations

Business Model

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Via new partners + offerings

Organic Growth

Specialization

Sales ChannelProduct Partners

Cross Sell Customers

17

ProductApproach

Gift

Geography

Product = Self Serve SMB + Business Intelligence (BI) Advancement

Services = Marketing + Payment

Increase # of POS

Expand Services

Expand Product

US Expansion

CDN Expansion

MSLoyalty

PromoE-Gift

PS


Past Inorganic Growth

Photo GIFTCARD

Dealer Rewards

OnTab D1 Mobile

Loyalint KESMLoyalMark

IQ 724 WinWinMarketing

BNA

Rev MultPaid

2.5x 2x N/A 1x 2x 1.5x 1.5x 1.5x 1.5x

Structure 100% stock 80% cash | 20% stock

Cons Ag 100% stock

80% cash | 20% stock

10% cash | 90% stock

100% cash

100% cash 100% cash

Customer loc adds

900 + 107 None 100 + 138 locations

2,400 + 400 + 40+ 120+

AnnualRevenues

$60k $900k None $100k $230k $1.8M $1.9M $75k $450k

Integration Time

3 months 24 months 6 months 5 months 8 months 18 months TBD TBD TBD

Inorganic Growth Strategy

Go forward strategy

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Acquire 1 -2 Per Year

Add customers, tech + talent

40%+ of rev adds to EBITDA

Expand solution & reach

Focus on cash/Earn-outs


Gift Card LoyaltySM

B

• North American • Many small and large players with specific niches• Ackroo covers all 4 quadrants • Ackroo is helping to consolidate this marketplace

Larg

e M

erch

ants

Direct Competition

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How we differentiate today

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FOCUS: Loyalty marketing, gift card and payments for all merchants

PARTNERSHIPS: Deeply integrated selected strategic partners

PLATFORM: Latest technology-UI/ arch, developer friendly, self-serve

AFFORDABILITY & TRANSPARENCY:

Priced for all sizes with no hidden costs

GO TO MARKET: Specialization, channel approach + market consolidation

OTHER SERVICES: Distribution, marketing and payment services

PUBLIC CURRENCY: Access to growth capital & liquidity draws interest for M&A


Senior Management

▪ Steve Levely | CEOSales, Marketing and Executive leadership expertise; Pitney Bowes, Maritz, and Ackroo

▪ Derek Schaaf | CFOFinance & Executive leadership expertise; CMC Distribution, Great Blue Resorts and Ackroo

▪ Ihab Kazem | VP of ProductEngineering & Product Management expertise; Bridgewater Systems and Ackroo

Board of Directors

▪ Steve Levely | DirectorSales, Marketing and Executive leadership expertise; Pitney Bowes, Maritz, and Ackroo

▪ Sam Cole | DirectorCorporate securities law expertise; ASKD Law and Cassels Brock & Blackwell LLP

▪ Wayne O’Connell | DirectorPublic and Private accounting expertise; Jones & O’Connell LLP

▪ Kristaps Ronka | DirectorTechnology founder, investor and executive; AdParlour and Namesilo

▪ Jason Donville | DirectorCapital markets research and investment expertise; Cormark Securities and DKAM

Our Team

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Ackroo Inc.Steve Levely

(416) 360-5619 x730

[email protected]

HAMILTON OFFICE

1250 South Service Road, A3-1

Hamilton, Ontario L8E 5R9

OTTAWA OFFICE

62 Steacie Drive, Suite 201

Ottawa, Ontario K2K 2A9

Contact Information

Simplify, Consolidate & Improve!

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mailto:[email protected]

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