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INVESTOR OVERVIEW – May 2016 SNIPP INTERACTIVE INC. TSX:V SPN OTCQX:SNIPF

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Page 1: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

INVESTOR OVERVIEW – May 2016 SNIPP INTERACTIVE INC. TSX:V SPN OTCQX:SNIPF

Page 2: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of Snipp Interactive Inc.’s securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, the facilities or any of the Company’s securities in any jurisdiction. Neither this presentation nor anything in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. These projections should not be considered a representation of the Company’s potential cash generation performance in any way. Some of the financial information included in this presentation is preliminary, forward-looking, unaudited and subject to revision.

All forward–looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document, and are expressly qualified in their entirety by the cautionary statements included elsewhere in this document. All forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as changes in demand for and prices for the products of the company or the materials required to produce those products, labor relations problems, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. The financial projections are preliminary and subject to change; the Company undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, except as required by law. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material. The reader is cautioned not to put undue reliance on such forward-looking statements.

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Page 3: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Snipp Today

130 EMPLOYEES: 60+ OFFSHORE ENGINEERS

234% REVENUE GROWTH IN 2015

8M+ CASH & EQUIVALENTS

$26M+ PIPELINE

+ CASHFLOW POSITIVE IN Q2, Q3 ‘2015

$0 DEBT

$4M+ Q1 (E) 2016 BOOKINGS

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Page 4: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Snipp - What We Do Snipp provides brands with a complete technology suite to manage

their promotions and implement cross channel loyalty programs.

$ $

$

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Receipt / Purchase Validation

Rebate Programs

Rewards Platform Contests & Promotions

SnippInsights Coming soon…

Image Recognition

SnippMedia Coming soon…

👀

Technology Engines Industry Solutions

Loyalty Engine

Future Solutions

Page 5: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

The Snipp Way – Purchase Based The Old Way – Spray & Pray

A New Paradigm In Promotion & Loyalty

A majority of loyalty and promotion programs still rely primarily on multiple vendors and traditional tools such as physical coupons, rebates, and code on packs

Creating Big Brand Problems: Retailer Integration +Missing Data

Brands know after a promotion, but not …

Where? Who? What?

Snipp gives brands a single source to manage these programs, collect previously unknown data, analyze the effectiveness of each promotion and do true loyalty programs

Multiple Program Types

Extensive Rewards Options

Any Platform

Brands Get New Tools and Data

With Snipp, brands now know …

Place of Purchase

The Customer Jane Smith, 310-434-…

True Results of the Promotion

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Page 6: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Snipp Gives Brands A Virtual Point of Sale

For the first time, brands can see the who, what, and where behind the marketing and sale of their products; data that is captured by the retailer and not shared with brands.

For Fortune 500 brands, Snipp’s technology represents a welcome solution to a long-standing problem: “who have we effectively targeted with this promotion?”

SnippCheck has quickly become the industry standard for receipt capture.

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Page 7: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Connecting brands directly to the consumer with effective advertising and incentives

Consumers

Retailers

Brands

Why Is our Platform Important?

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half”

- John Wannamaker

“The problem for many advertisers is that the vast majority of consumer purchases take place offline. So the question becomes: if I buy advertising on Facebook, how do I know that someone bought a can of beans in the supermarket because of it?”

Retailers have the power of purchase data, Brands have none

1 Advertising has a measurement problem

2

$

$

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Page 8: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

80%

Revenue Model Diversified Revenue Across Segments

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Promotions / Rewards

-  +90% repeatability -  Campaign sizes have nearly

doubled year-over-year

Loyalty API (Application Program Interface)

-  Long-term recurring revenue -  Sticky

% of 2015 Revenue

-  We license our technology and partner with leading couponing and promotions platforms

14% 6%

Page 9: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

With Snipp, customers get their rewards faster and brands get better data.

Goal: Drive more registered users and purchases for Clorox.

Promotion: Mighty Messes 6-month contest with monthly $1000 winners

Process: Register on the Clorox site, buy two Clorox bleach products, upload receipt.

Verify: Check registration. Prompt: Capture unregistered users.

Results: A triple win for brands – higher sales, more registered users, and data they previously could not collect.

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Thank you for submitting your receipt! It has been received and you can expect a confirmation text within 48 hours!

Please make sure to register here http://snipp.us/!q68 to be entered in to the Clorox Mighty Messes Monthly Sweepstakes!

Congratulations! Your receipt has been validated, and you have been entered for a chance to win $1000!

Page 10: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Brand issue Snipp powered program Program results

Snipp’s Platform Drives Sales Arm & Hammer + Major League Baseball Promotion

77%

$200MM+

of shoppers buy only 1 Arm & Hammer

brand

The opportunity if shoppers buy 1

additional brand

“A home run!” Director of Marketing, Arm & Hammer

PRE POST

2% 3% 18%

77%

12%

13%

22%

53%

Bought1 Bought 2 Bought 3 Bought 4+

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Page 11: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Data the Brand Manager Receives

•  What you bought? •  Where you bought their

product? •  What else you bought? •  Basket size? •  Demographic information? •  What ad drove you to

participate?

“The platform value proposition for a brand increases as the amount of data grows”

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Page 12: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Targeting Massive Fragmented Markets

US PROMOTION INDUSTRY

$80 B

$500 B GLOBAL ADVERTISING

SPEND Ability to track overall purchase behavior

Ab

ility

to r

un p

rom

otio

ns

Snipp has the leading solution

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Page 13: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Our Clients are top Multinational Brands Less than 5% penetrated into our current customers

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Page 14: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Sales Multiplier Effect We are repeating this same cycle in many multi-brand companies.

Single Promotion Multiple Brand

Promotions Master Service

Agreement

Geographic Expansion

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Page 15: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Result: 110% Revenue CAGR

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2012 2013 2014 2015

$511,854 $870,420

$3,562,045

$11,890,231 Snipp USD Revenue

Full Time Employees Average Campaign

Size EBITDA Loss as %

of Revenue

8 10 48 130

$7,000 $7,796 $25,000 $40,000

-256% -84% -30% -28%

Page 16: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Current Trends: Positive For 2016

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$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000

Q1/2015

Q2/2015

Q3/2015

Q4/2015

Contract $135,000 $311,000 $500,000 $542,000

Largest Contract By Quarter

Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016E Recurring Revenue Trend

Recurring 0% 2% 8% 15% 26% 55%

0%

10%

20%

30%

40%

50%

60%

Rapid Acceleration In Recurring Revenue as % of New Business

Average long-term contract: now 18 months

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Q1/2015 Q2/2015 Q3/2015 Q4/2015

Average Campaign Size Campaign $7,000 $7,796 $25,000 $40,000

As Relationships Season, Campaign Size Expands

0%

10%

20%

30%

40%

50%

60%

70%

2014 2015 2016E Gross Margin 32% 55% 70%

Gross Margins are expected to reach 70% by Q4/2016

Shift to Recurring Revenue Increasing Campaign Size Improving Margins

High Value Deals – Growing Larger

Sales cycle confirmation: one-off promotions leading to long-term

relationships. Untapped International

Opportunity

Page 17: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Our 60+ Engineers continue to expand our technology platform 1

Focused on Profitable Growth Snipp is poised to continue its rapid growth

As we add Sales force, the multiplier effect kicks in 2

We expect a high % of long term licensing and service contracts 3

Scalability makes each incremental relationship more profitable 4

This is a fragmented industry, with many opportunities for growth 5

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Page 18: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

APPENDIX

Page 19: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Strong Board with Focus on Governance

Michael Dillon EVP, Colangenlo Omnicom Group

Ram Ramkumar 25+ Years Public Market Experience on TSX & NASDAQ

Conrad Swanson Director of several publicly listed companies

Atul Sabharwal Founder, CEO

Ritesh Bhavnani Founder, President

All Committees run by independents

Michael Cannata Founder Patent Monetization Inc.

Susan Doniz On the board of several companies. Ex CIO of Aimia, P&G Canada

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Page 20: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

We are Snipp

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Management Atul Sabharwal Founder, CEO

“Little bit of this & that”

Ritesh Bhavnani Founder, President “The Product Visionary”

2007

Wilson Bell Executive Vice President R&D “All things New”

2008

2012 2014

David Hargreaves Chief Client Officer

“Satisfies every customer need”

Frank Sweeny Chief Technology Officer

“The Builder”

Jaisun Garca Chief Financial Officer “Keeps us Compliant”

2015 Baris Karadogan

Chief Operating Officer “All things Process”

2015

Page 21: INVESTOR OVERVIEW – May 2016home.snipp.com/.../2014/07/Investor-Deck_May2016.pdf · presentation nor anything in it shall form the basis of any contract or commitment. This presentation

Well capitalized company Management’s interest is aligned with shareholders

Capital Structure

Shares Outstanding 128 Million

Options & Warrants 46 Million

Average Daily Volume 170K Shares

52 Week High / Low $0.26 / $0.89

Insider Ownership 33%

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