Ackroo Inc. TSX Venture: May June 2015

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Aubrie Potter
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1 Ackroo Inc. TSX Venture: OTC Pink: AKR AKRFF June 2015 May 2018

3 What we do Ackroo provides an in store and online automated marketing solution to: Process gift card & loyalty 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 The Company also provides additional merchant services to help their clients grow: Distribution - Help merchants sell their gift cards at other retailers Marketing , direct mail and analytics services to maximize results Copyright 2018 Ackroo Inc. All rights reserved 3

4 Why and how we do it Ackroo s mission is to: Provide an open platform to simplify, consolidate and improve the very fragmented and complex gift card, loyalty and marketing landscape in order to drive clear ROI for our clients We are achieving this by: Utilizing our channel and direct sales model to provide retail and hospitality merchants a robust, easy to use, affordable, self-serve platform that is complex in design but simple to manage and operate Developing an all in one platform that not only manages gift card and loyalty programs but displaces many merchant related marketing solutions in the process Acquiring competitive and complimentary solution providers to maximize results for our clients while enhancing our ability to scale Copyright 2018 Ackroo Inc. All rights reserved 4

7 Investor Checklist Achieved positive EBITDA for the first time in Q ($70,686) 35% compound annual growth rate ( CAGR ) from 2012 through % year over year revenue growth in Q over Q SaaS business model with over 65% recurring revenue Over $3.2 million of Annual Recurring Revenue (ARR) Customer retention rate in excess of 95% Gross margin in excess of 80% Organic CAC (customer acquisition costs) is < 15 % of the LTV of each customer Inorganic CAC is < 25 % of the LTV of each customer Large TAM- $160B North American gift card & loyalty market, 20% Completed 6 accretive acquisitions over the last 36 months Key Partnerships with several multi-billion dollar Payment leaders Support 4,000 + locations with a plan to grow to 10,000 + by 2022 Copyright 2018 Ackroo Inc. All rights reserved 7

8 Major Company Milestones 2012 Closed $1.2M PP Acquired PhotoGIFTCARD Acquired Dealer Rewards Rebuilt Ackroo technology Defined commercial model Founded & began trading on the TSX-V Added initial Primary Channel Partner Closed $1.6M in PP s Acquired OnTab, D1 Mobile & Loyalint Added 3 rd Primary Channel Partner Appointed Steve Levely as CEO Added 2 nd Primary Channel Partner Closed $400k PP 10-1 Share consolidation Specialized in 4 segments (Auto, Petro, Hosp, Retail) Q1 was first positive earnings quarter 2018 Many new POS integrations Completed product migrations Closed $600k PP Acquired KESM/LoyalMark Copyright 2018 Ackroo Inc. All rights reserved 8

9 Share Structure & Ownership Shares Outstanding 1 76 million Board & Management Approx. 5% Options 7.6 million Top 15 Shareholders Over 70% Warrants 2 14 million Market Cap 3 C$6 million Current Options Issued Strike Prices $0.075-$ As of May 4 th Strike price is $0.37 for 300k expiring in May 2018, $0.30 for 2.5M expiring in Nov 2018, $0.10 for 10,675,364 expiring July 2022, 3 Calculated using a share price of C $ May 4 th 2018 closing price Copyright 2018 Ackroo Inc. All rights reserved 9

North American Addressable Market $100 Billion Gift Card & $60 Billion

locations in North America alone Current referral partners represent

represent millions of additional merchant locations Small and Medium

employees) Ackroo works with < 1% of their current partnerships

10 North American Addressable Market $100 Billion Gift Card & $60 Billion Loyalty Market $5 trillion Retail Market Over 11 million merchant locations in North America alone Current referral partners represent over 350,000 locations in Canada alone Integrated product partners represent millions of additional merchant locations Small and Medium Size Merchants (fewer than 50 employees) Large Merchants (more than 50 employees) Ackroo works with < 1% of their current partnerships merchant base - lots of room for growth Copyright 2018 Ackroo Inc. All rights reserved 10

Marketing platforms provide key insight and actionable tools to drive

manual labor Reduces fraud and theft Provides key insight into customer

consolidated actionable data for accounting, marketing and ownership

11 The Benefits Gift cards increase merchant revenues and cash flow Loyalty protects margin, attracts customers, creates lift and drives behavior Marketing platforms provide key insight and actionable tools to drive results Automating gift card and loyalty brings tremendous value: Removes manual labor Reduces fraud and theft Provides key insight into customer behavior Improves customer experience Enhances brand image Delivers consolidated actionable data for accounting, marketing and ownership Provides critical marketing tools for business owners Copyright 2018 Ackroo Inc. All rights reserved 11

Business Model One Time Revenue Fixed MRR Variable MRR Other OTR Platform setup Integration and training Monthly recurring software revenue Includes # of transactions Transaction fees Overage charges

12 Business Model One Time Revenue Fixed MRR Variable MRR Other OTR Platform setup Integration and training Monthly recurring software revenue Includes # of transactions Transaction fees Overage charges Distribution Cards and collateral Distribution Marketing Services Important Business Metrics Comments Average MRR per location $92 $72 $70 KESM accounts < avg = upsell opportunity Average OTR per new merchant $1,220 $1,210 $1,710 Growing Average OTR per existing merchant $1,020 $1,190 $1,117 Maintaining Product mix (GC only vs. GC/LTY) 70% 30% 65% 35% 60% 40% Improving Average monthly transactions Improving MRR to OTR Ratio 60% 40% 60% 40% 65% 35% Improving Retention 95% + 96% + 97%+ Improving Locations 1, PGC 4, ,000 + Growing Approximate LTV (7 year min) $9,968 $10,517 $10,941 Growing Organic acquisition cost $1,000 - $1,500 $1,255 $1,058 Maintaining Copyright 2018 Ackroo Inc. All rights reserved 12

13 Growth Strategy Organic Growth Primary Partners AKR Direct Sales Opportunity source Referrals Inbound / Outbound Calls Ackroo support Sales Sales Number of 3 3 Total BD Sales Organization in Canada Inorganic Growth Photo GIFTCARD Dealer Rewards OnTab D1 Mobile Loyalint KESM LoyalMark Revenue Multiple 2.5x 3x MRR 2 x Total Structure 100% stock 80% cash 20% stock Customers added 29 brands 900 locs Annual Revenues $50-$60k $600k MRR + $300k OTR N/A 1x 2.6x MRR 2x Total 1.5x Total Consulting Ag 107 locations None 4 brands 200 locs 100% stock 80% cash 20% stock None $100k $180k MRR + $50k OTR 10% cash 90% stock 138 locations 2,400 + locations Integration time 3 months 24 months 6 months 5 months 8 months TBD $2M Copyright 2018 Ackroo Inc. All rights reserved 13

Revenue Growth Annual Revenue $3,000,000.00 $2,500,000.00 $2,000,000.00 $1,500,000.00 CAGR +35% $1,000,000.00 $500,000.00 $0.

14 Revenue Growth Annual Revenue $3,000, $2,500, $2,000, $1,500, CAGR +35% $1,000, $500, $ Fiscal Year Amount +/ - % 2012 $ 681,142 N/A 2013 $ 1,284, % 2014 $ 1,328, % 2015 $ 1,822, % 2016 $ 2,224, % 2017 $ 2,737, % Copyright 2018 Ackroo Inc. All rights reserved 14

18 Our Team Steve Levely CEO, Director More than 16 years of sales and marketing leadership experience; Pitney Bowes and Maritz Derek Schaaf CFO More than 25 years of finance experience; Great Blue Resorts Ihab Kazem VP of Product More than 10 years of engineering experience; Bridgewater Systems Sam Cole Director More than 10 years corporate securities law experience; ASKD Law and Cassels Brock & Blackwell LLP Wayne O Connell Director More than 20 years experience in public accounting; Jones & O Connell LL Kristaps Ronka Director More than 10 years experience in building and scaling technology start-ups; AdParlour Copyright 2018 Ackroo Inc. All rights reserved 18

19 2018 Objectives Fully Integrate our latest acquisition of KESM/LoyalMark Achieve positive EBITDA quarters every quarter moving forward Continue to significantly grow our ARR Continue to increase our gross margins and our revenue per employee Expand and enhance our marketing initiatives and services Continue to use technology to solve for customer and operational needs Deepen and enhance the relationships with our current Channel Partners Add 1 more primary and 3-4 supplementary Channel Partners Increase revenue per current customer through upselling and cross selling Expand solution set (focus on segments, size, product offering & consolidation) Continue exploring future M&A opportunities Copyright 2018 Ackroo Inc. All rights reserved 19