Shopping Solutions, Inc. (A fictitious Company) Improving the way people shop & consumer products are sold Producer of the Family of Technology Products Investor Briefing April 1
Our Leadership Team and Plan Improving the way people shop & consumer products are sold Leadership Team Leadership Team with a Record of Accomplishments Stephanie Adams, CEO Alexander Brown, CFO Brian Clark, CTO Advisory Board with Strong Professional Experience Vision Improve the way people shop, empower retailer s competitive differentiation, and increase consumer product manufacturer s brand presence April 2
Problem in today s retail market All three stakeholders have significant problems Consumers Difficulty Finding Products Unaware of Promotions Dislike of Paper Coupons Retailers Inability to Differentiate from Other Retailers Ineffective Promotion of Key Products Waning Customer Satisfaction Consumer Product Manufacturers Inability to Differentiate from Other Products Maintaining and Growing Market Share Inadequate Brand Awareness April 3
The Solution: Product Family Solution includes software, hardware installation, support and maintenance Features Admin Coupons Scanning ERP Portals Platform Licensee Retail Chain Each Store Shoppers free Revenue Monthly Annuity GM > 90% Free Shopper license 4
Product Family Revenue model for software, installation, support and maintenance Features Shoppers access point Platform Column Lessee Multiple in each store Revenue Monthly Annuity Gross Margin >100%
Product Family Revenue model for software, installation, support and maintenance Location Platform Column Features Personalized Location based alerts for shoppers Licensee Each individual store Revenue Monthly Annuity Gross Margin >90% 6
Product Family Revenue model for software, installation, support and maintenance AR Location Platform Column Features Augmented reality navigation Licensee Each individual store Revenue Monthly Annuity Gross Margin >90% 7
Product Family Revenue model for software, installation, support and maintenance Payments AR Location Platform Column Features Effortless automatic payment Licensee Each individual store Revenue Monthly Annuity Gross Margin >90% 8
Product Family Revenue model for software, installation, support and maintenance Payments AR Location Platform Column Setup, training & installation Features Effortless automatic payment Licensee Each individual store Revenue One-Time Fee Gross Margin >70% 9
Market Focus Specific Target Focus Phase1 USA Retail Segments (2) $1.24 B/2011 $5.04 B/2015 CAGR > 42% Entry Method: Start small in Florida and migrate out Market Drivers Consumers Ease of Use Retailers Competitive Differentiation Customer Satisfaction Manufacturers Brand Development (1) Smaato. "Mobile Advertising Trends 2011, I (2) DC, Forrester April 10
Summary Competitive Comparison Features surpass competitors offerings Feature Group bcode Retailer App Integration Interactive Column Yes Yes Mobile Coupon Manager Mobile Product Scanning Mobile Ad Media Scanning PlumReward s ShopKick ScanLife Yes No No No No Yes Scan SMS, Print Coupons Small Login Device at Checkout SMS Coupons Only No Rewards, Coupons & Discounts Yes No No No Yes Yes No No No No No Yes Augmented Reality Yes No No No No Consumer Behavior Tracking User-Specific Targeted Marketing Yes Limited Limited Yes Limited Yes Yes Yes Yes No Mobile Payments Yes No No No No April 11
Operating Plan - Product Development Q2 2011 Q3 2011 Initial Development & Testing Q4 2011 Q1 2012 Q2 2012 First Enhancements Full Commercial Features Prototype - Release v1.0 Beta Release v1.2 Feature Set Z Rel. v1.5 Test Implementation Feature Set Y Rel. v1.4 Feature Set X Rel. v1.3 Release 2.0 Platform Features Column Coupon Management System QR Code Scanning Mobile Application Integration Integration with POS checkout system (1) Patent Application Q2/Q3 2011 (2) Patent Application feature X & Y by Q4 2011 (3) Patent Application feature Z by Q1 2012 April Location (X) System recognizes presence of Consumer In-Store location based notifications AR (Y) In-Store Augmented Reality based Navigation Payments (Z) NFC Implementation Mobile Payments Major product update New product release 12
Operating Plan Sales & Marketing Q2 2011 Q3 2011 Q4 2011 Q1 & Q2 2012 Q3 & Q4 2012 2013 Market & Brand Development Programs Recruit Personnel Pre-Launch Activities Develop Programs Activities Recruit key personnel Formalize partnerships Develop content Brand program Web development Pre-launch planning Web Dev. & SEM Initial planning Launch Event Demand generation Phase 2 Phase 3 Focus and Activities Market Segment Focus Primary Big-Box & Regional Retailers National & Regional Grociers Secondary Gift Card Vendors Hospitality Industry Specialty Retailers Activities Launch Events Trade Association Program Industry Analyst Program Trade Shows Branding Programs April 2011 13
Financial Plan and Objectives Financial Plan Financial Projections Year 1 Year 2 Year 3 Incremental # of Chains - 6 6 Incremental # of Stores - 36 60 Revenue $ - $ 1,062,238 $ 3,769,710 Cost of Revenue $ - $ 145,800 $ 233,400 Gross Margin $ - $ 916,438 $ 3,536,310 Operating Expenses: Sales & Marketing $ 124,069 $ 432,432 $ 400,032 Research & Development $ 429,370 $ 543,557 $ 571,822 General & Administrative $ 188,333 $ 249,369 $ 280,969 Operating Income EBITDA $ (741,771) $ (308,921) $ 2,283,487 EBITDA % of Revenue N/A -29% 61% Equity backed financing $1,450,000 Initial and Traction phases Use of Proceeds: 29% Marketing; 71% R&D $6,000,000 Global market development phase Return value: through acquisition, R&D tax credits and dividends April 14
In Summary Worthy investment consideration because: Prototype, momentum, and experience Valuable product: clear competitive advantage Focus on specific rapidly growth sectors Clear plan: leverages opportunities, minimizes risks April 15
Backup info follows 7/27/17 ABC Corp 16
Solving the Problem features solve problems and enhance people s shopping experience Interact with mobile tag enabled out-ofstore displays System automatically recognizes consumer Interact with Column to search for coupons Get targeted coupons & targeted ads pushed to you Download App Walk into store Personalize preferences Interact Interact with mobile tag enabled in-store displays Checkout User Experience Use augmented reality feature to navigate store Apply mobile coupons, mobile payment & mobile loyalty benefits Manage Navigate Opt-in to receive instore location based notifications Easily manage & select coupons for checkout Access product information via mobile scan April 2011 17
US Mobile Internet User Base 2011 2015 CAGR 12.1% US Mobile Marketing Spend 2011 2015 CAGR 42% US Mobile Coupon Redemption Value 2009-2014 CAGR 135.4% Mobile Barcode Scanning 2010 2011 CAGR 1600% Mobile NFC Payment Transactions 2009 2014 CAGR 110.5% Confidential and Proprietary 2011, All rights reserved 18
Organization and Go to Market Leveraged partner sales to grow key target markets Erganization Business Model Generate setup and installation fees, column lease, support and maintenance recurring annuity revenues Core Functions: Develop and Deploy Platform Integrate Retailer s POS System Update and coordinate content Distribution Channels Direct Demand Generation Key Market Sales Personnel Industry Product Partners POS Systems Providers Global geo markets Geographic & Industry Partners Marketplace Target Industries Primary Big-Box & Regional Retailers National & Regional Grociers Secondary Gift Card Vendors Hospitality Industry Specialty Retailers April 2011 19
Financial Plan and Objectives Financial Plan Financial Projections Year 1 Year 2 Year 3 Revenue $ - $ 1,062,238 $ 3,769,710 Cost of Revenue $ - $ 145,800 $ 233,400 Gross Margin $ - $ 916,438 $ 3,536,310 Operating Expenses: Sales & Marketing $ 124,069 $ 432,432 $ 400,032 Research & Development $ 429,370 $ 543,557 $ 571,822 General & Administrative $ 188,333 $ 249,369 $ 280,969 Operating Income EBITDA $ (741,771) $ (308,921) $ 2,283,487 EBITDA % of Revenue N/A -29% 61% Nov 2011 Test Implementation for Risk Platform Management & Feature Sets May 2011 Unknown Competition: Daily Initial Revenue professional Positive paranoia Beta Platform Development Key Performance Milestones First 2.5 years May 2012 Full Market Release Jun 2012 (Four Stores) Jan 2013 EBITDA Revenue Flow: Increased revenue over bookings to 60 days Funding Operations: Alternative business development scenarios Jan 2012 Jan 2013. May 2013 >100 Leased Columns Dec 2013 >$ 1.4million Profitable Year April 2011 March 2013 April 2011 20
Operating Plan Three phases, organized plan, use of funds
Operating Plan Three Phase Strategy Initial Operations, Traction and Global market Exploitation April 22