GLOBAL TRENDS: TAKING LOYALTY OPPORTUNITIES TO THE NEXT LEVEL

GABI KOOL, CEO & FOUNDER PINS ROTTERDAM, IMA EUROPE, JAN 11, 2019

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LOYALTY PROGRAMS: A BLUE OCEAN FOR ALMOST 40 YEARS

BLUE OCEAN • CREATE UNCONTESTED MARKET SPACE • MAKE THE COMPETITION IRRELEVANT • CREATE AND CAPTURE NEW DEMAND

SFP Coalition FFP

THREE DOMINANT LOYALTY MODELS

SFP: SHOPPER FLYER PROGRAM

BUT IT IS SLOWLY TURNING RED

• COMPETE IN EXISTING MARKETS • BEAT THE COMPETITION • EXPLOIT EXISTING DEMAND RED OCEAN

LOYALTY PROGRAMS ARE FACING A MATURED ENVIRONMENT

GLOBAL TRENDS OFFERING OPPORTUNITIES

FROM

OCEAN OCEAN

TO

BLUE RED

TREND #1: MOBILE ONLY PROPOSITIONS

TREND #2: OWN MY OWN DATA

TREND #3: SMART CITIES AND CITIZEN ENGAGEMENT

TREND #4: CASHLESS SOCIETIES AND E-MONEY

TREND #5: INSURETECH INCLUDING TELEMATICS

TREND #6 O2O2O – ON AIR TO ONLINE TO OFFLINE

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DIGITAL CURRENCY FOR BIG DATA: OUR BLUE OCEAN

BLUE OCEAN • CREATE UNCONTESTED MARKET SPACE • MAKE THE COMPETITION IRRELEVANT • CREATE AND CAPTURE NEW DEMAND

Who We Are PINS is a X-TECH company created in November 2017 via a spin out of the technology business of PINS.CO SIA (the frequent flyer loyalty company of AirBaltic and the leading coalition loyalty business in Northern Europe) To date the business counts more than 2.4 million users in the Baltics and Finland (which represents >40% market penetration of the working population and this base will be the carrier of new technologies developed by PINS), in a highly digital savvy market and having an undisputed leadership position in these markets as a cross border loyalty currency. Following the company’s success in this region, the spin out of PINS is now aimed at internationalizing the digital currency and widening its technology offer

Who is behind PINS

PINS is backed by a strong investment consortium from Japan and Western Europe. PINS has established a long-term strategic partnership with Northern Europe’s leading regional airline AirBaltic and its 100% subsidiary PINS.CO. The deal includes the full ownership of the PINS brand and the PINS mobile apps, as well as the exclusive use of the current body of PINS.CO’s technology, in all markets outside the Baltics and Finland and a partnership agreement with PINS.co which will allow PINS to embed its new technologies in the Baltics and Finland for the existing 2.4M customer base

Our Digital Currency PINS is the existing market leader as a digital currency in the markets of the Baltics & Finland. When using PINS’ technologies, mobile app users can not only collect unique offers and benefits, but also our own digital currency: PINS Spending of PINS can take place in-store (via a proprietary B2B app and POS integrations), dedicated e-commerce platforms and for travel bookings (flights, 500.000+ hotels). Well known brands such as Hilton and AVIS can be counted among the global partners Designed at first for a mono currency zone (EUR), the model is now expanding to a true global cross border digital currency concept via the launches in Japan and Turkey Japan: value of 1 PINS = 1 JPY Euro zone: value of 1 PINS = 0,006 EUR Turkey: value of 1 PINS = 0,02 TRL

Product Experience for Users

Display of value of PINS in mobile app based on real time currency calculation if PINS user is outside his home currency market Example: Actual Rate of exchange: EUR 1,00 = TRL 4.0421 PINS user from Turkey with 10000 PINS balance, when arriving in EURO zone market, will see the value of those PINS displayed in the app as EUR 49,48 while a EURO zone PINS member would see the value of 10000 PINS as EUR 60,00

Our Technology Our innovative solutions are designed to drive real time interaction with consumers in exchange for highly personalized offers including our own digital currency called PINS. It will allow for hyper-sensitive contextual marketing. Three core proprietary solutions: -1- Shake & Win -2- Drive & Win -3- Pay & Win (in process) Our solutions are available as full service PINS branded mobile applications or via SDK solutions to embed our technologies in native mobile apps of our clients

Shake & Win PINS has developed and will launch in March 2018 a solution to support NextGen TV stations In Japan, this media solution will be launched on the TV channels of Tokyo MX, a leading TV and radio company in the metropolitan area of Tokyo and existing 24.5% shareholder of PINS Asia The technology solution is based on PINS’ ‘Shake & Win’ technology, whereby TV viewers can engage with TV shows and receive real-time offers, including PINS as digital currency, by shaking their phone during participating shows By using Audio Watermarking, Artificial Intelligence and Machine Learning linked to the Shake & Win technology, PINS is creating solutions for Media companies to combine big data with the mass reach of traditional media such as TV & Radio. The solution is also aimed at other Distribution Partners such as Smart Stadiums, Smart Cities and can leverage Out-of-Home (OOH) networks via interactive billboards Advertising Revenue is shared between the Distribution Partner and PINS

Our Target Clients: Advertisers

Travel Companies Retailers Car manufacturers Banks

How to Reach the User: Distribution Partners

TV & Radio Companies Smart Stadiums Smart Cities Out-of-Home Media

“The biggest linear audiences - and therefore advertising spend – will be attracted by entertainment shows with live interaction such as voting, and by live sporting events.“ PWC - 2016

Drive & Win PINS has developed and will launch in December 2017 a solution to support Highways Operators. In Turkey, the solution supports the world’s first ‘Smart Highway’ in a long-term strategic co-operation with Turkish Highway Public Corporation Otoyol A.S., which owns and manages one of the largest Turkish infrastructure project between Istanbul and Izmir with a EUR 11bn investment. The technology platform will support a solution to track and reward safe driving along a new 400km highway between Istanbul and Izmir, via an innovative experience allowing users to receive offers, linked to their driving style, including the digital currency PINS for spending at participating retailers along the highway, across Turkey and around the world. With apps supporting ride share and alternate routes threatening revenue, highways need to engage beyond the toll booth which is where we come in. This is achieved via solutions as Drive & Win, using the PINS App to pay toll booth and future integrations with smart cameras

How will it benefit Merchants

How will it benefit Society

How will it benefit Insurers

Lots of cars / passengers are driving past stores and the merchants have no idea who they are. They know who is buying, but not who is not buying Uneven demand - how to fill up the quiet periods Improve effectiveness marketing spend

Reduce Pollution Reduce road accidents Reduce cost of delay / lost productivity of citizens

Improve outdated underwriting models Build on direct customer relationship Create Customer leads instead of Product leads

How will it benefit Drivers and Road Operators

Use carrot instead of stick: Drivers resent cameras and ‘’big brother’’ watching. Instead of the model of ‘’sin and be penalized’’, the Drive & Win model is the converse: reward as opposed to penalize. Fun: how are you driving versus your peers Learn: what influences your score and thus your risk Win: if you drive as a good citizen Move on from “dumb” roads – (like airplanes with no ancillary revenues) by starting to use data for marketing Avoid unnecessary peak time congestion: Drive & Win to reward driving off peak times

May 2017 Stealth mode consumer mobile app for Shake & Win June 2017 Investor consortium sign off on seed capital financing for spin out of PINS July 2017 Stealth mode consumer mobile app for Drive & Win

Aug 2017 AirBaltic and Investor consortium sign term sheet for spin out from PINS.co to create PINS Nov 2017 Public launch of PINS as FINTECH company

2014

June 2016 Founder Gabi Kool announces plans to expand PINS as cross border digital currency in FORBES Japan

2017 2H 2017 1H 2016 2015

Mar 2016 PINS recognized as ICT project of the year in Finland Jun 2016 Best new loyalty program of the year in EMEA at Loyalty 2016 in London

May 2014 PINS launch in Finland and Baltics Dec 2014 Number One Google search keyword among brands in Finland

Timeline 2018 1H

Jan 2018 Turkey Smart Highway Drive & Win project launch Jan 13, 2018 PINS and TokyoMX sign formal cooperation agreement during Japanese Prime Minister Abe visit to Latvia Mar 2018 Shake & Win launch in Japan Q3 2018 Global launch of Pay & Win

PINS: JOIN THE JOURNEY TO THE BLUE OCEAN