Investor Presentation April 2017 TSXV:PGV - prodigy.ventures€¦ · Prodigy Ventures Inc. TSXV:PGV...

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Investor Presentation TSXV:PGV April 2017

Transcript of Investor Presentation April 2017 TSXV:PGV - prodigy.ventures€¦ · Prodigy Ventures Inc. TSXV:PGV...

Page 1: Investor Presentation April 2017 TSXV:PGV - prodigy.ventures€¦ · Prodigy Ventures Inc. TSXV:PGV 3 Company Overview •Prodigy Ventures Inc. (TSXV: PGV) is an innovation company

Investor PresentationTSXV:PGV

April 2017

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Forward Looking Statement

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This presentation (the "Presentation") contains" forward-looking information" and "forward- looking statements"(collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. Allstatements, other than statements of historical fact, are forward-looking statements and are based on expectations,estimates and projections as at the date of this Presentation. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often butnot always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate","plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrasesor stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or beachieved) are not statements of historical fact and may be forward-looking statements.In this Presentation, forward-looking statements relate, among other things, to its aggressive expansion into additionalfinancial institutions and other enterprise clients, acquisition opportunities to further accelerate growth, net newrevenue opportunities with Venture Builder, statements relating to the anticipated growth of the mobile enterpriseapplications market, Prodigy's plans for organic growth and growth through acquisitions and the potential revenue perbank client from iVideo Greetings SDK. All forward-looking information entails various risks and uncertainties that arebased on current expectations and actual results may differ materially from those contained in such information.These uncertainties and risks include, but are not limited to, risks relating to the timing and size of new contracts;acquisitions and other corporate developments; the ability to attract and retain qualified personnel; market competitionin the rapidly evolving information technology industry; and general economic and business conditions. Risks anduncertainties about Prodigy's business are more fully discussed in the disclosure materials filed with the securitiesregulatory authorities in Canada, which are available on SEDAR under the issuer profile of Prodigy at www.sedar.com.Readers are urged to read these materials and should not place undue reliance on any forward‐looking statement andinformation contained in this Presentation. Except as required by law, Prodigy assumes no obligation to update theforward‐looking statements of beliefs, opinions, projections, or other factors, should they change, except as required bylaw.

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Prodigy Ventures Inc.

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Company Overview

• Prodigy Ventures Inc. (TSXV: PGV) is an innovation company

• The company operates two divisions:

• Prodigy Labs – Enterprise technology service provider with core expertise in mobile solutions, providing services to financial institutions and others (“Services Provider”)

• Venture Builder – Creating business platforms and applications in emerging technologies, including mobile video, augmented reality, artificial intelligence, wearables and proximity

• Headquartered in Toronto

Venture Builder Services Provider

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PGV Stock Performance

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Company Highlights

• $11m revenue in FY 2016 – Over 55% YoY growth

• Increased investment in management and sales for aggressive expansion into additional financial institutions and other enterprise clients

• Acquisition opportunities to further accelerate growth

• Net new revenue opportunities with Venture Builder

Company Information

Ticker (TSX:V) PGV

Shares OutstandingFloat

113.7M25.7M

Stock Price (04/10/17) $0.32

Market Cap (04/10/17) $36.4M

Warrants ---

Options (Avg $0.10, expire Dec 31, 2018)

1.34M

CEO Ownership 56%

Cash (12/31/16) $2M

Debt (LT +Current Portion of LT)

$149K

Year End Dec 31

Staff 85

$0.00$0.05$0.10$0.15$0.20$0.25$0.30$0.35$0.40

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Our Business Model: Innovate, Create, Deliver

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Venture Builder Services Provider

• Develop applications for large

enterprise clients

• Acquire complimentary businesses

• Attract and retain top talent

• Manage cost savings in

infrastructure, administration,

marketing and sales

• Develop technology relevant to the

fastest growing technology sectors

• Share management resources

• Streamline access to capital for all

ventures via cash flow from services

business

• Portfolio approach to new

investments across a pipeline of

projects

Our Two Complementary Businesses Create Growth Opportunities for Each Other

Venture Builder Services Provider

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Where Do We Play?

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Service Provider: Prodigy Labs

Services Provider

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Mobile Market Opportunity Continues to Grow

6.1B

Sources: smartinsights.com, researchandmarkets.comTSXV:PGV 8

Our Focus is in Mobile Enterprise Applications

• Mobile Enterprise Applications expected to be the fastest growing segment of the market

• Banking, Financial Services and Insurance expected to hold the largest market share

• Banks strategically choose to outsource their short term projects $98B

Mobile Usersby 2020

Mobile Enterprise Application market size by 2021

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Services

• Technology service provider to leading financial institutions and other large enterprises

• Provide consulting services for strategy, design, project management, development, quality assurance, maintenance, and staff augmentation

• Services for custom enterprise applications and Prodigy’s Venture Builder platforms

• Projects include: mobile banking applications, online banking development, video

Apps In-Market

IOS

Apple Watch

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Prodigy Labs: Onshore, On-site, On Point

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Android

Mobile Banking

IOS

Wallet

Android

Wallet

IOS

Apple Pay

IOS

Mobile Banking

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Prodigy Labs: Partnering to Deliver

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Fast, Flexible, Trusted and Proven

• Developed & delivered award-winning solutions

• Proven track record of successful co-development

• An exceptional talent pool to draw on flexibly

• Innovation partnerships with Venture Builder

“We are committed to providing the maximum value to our clients through our unique innovation

model and agile partnership capabilities.”

Tom Beckerman, Founder & CEO

Prodigy has built its reputation onsuccessfully delivering cutting edgesolutions through co-innovation withclients

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150+Contracts

A History of Rapid Revenue Growth

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Prodigy Labs: Performance

25%CAGR of Revenue Growth

55%YoY RevenueGrowth

Year ended March 31, 2015

Nine months ended* December 31, 2015

Year ended December 31, 2016

*The company only had 9 month fiscal year in 2015 because the company went public in September 2015

Total Revenue:$2,730,698

Total Revenue:$6,187,766

Total Revenue:$11,020,658

R&D

Net Income

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Organic Growth

• Continue to grow presencewithinexisting clients

• Expand sales and marketing efforts to gain new clients

• Differentiate offering with VentureBuilder platforms

Acquisitions

• Acquire service providers that have...• Positive and growing EBITDA• Potential cost synergies• Established customer base• Complementary services• Differentiated technology• Complementary skill sets

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Prodigy Labs: Growth Strategy

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Venture Builder: Prodigy Ventures

Venture Builder

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Building Businesses With the Emerging Technology

With our positive cash flow we are able to invest in emerging technologies, such as:

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Mobile video will dominate internet traffic

by 2018, with social, short duration content leading

the growth curve.

Mobile Video

Proximity marketing, social and payment apps offer unlimited potential for in-the-

moment “up close and personal” content,

interactions and transactions.

Proximity

New wearables and apps are changing how we

behave, connect, interact, consume and create

content – right in front of your eyes, on your wrist, even in your clothes and

accessories.

Wearables

The future is happening now, and it’s an

immersive, enhanced experience – in virtual and augmented realities, and

dynamic 3D content.

Augmented Reality

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Focus on Hyper Growth Opportunities

Sources: Cisco Visual Networking Index, ooyala.com, streamingmedia.com, businessinsider.com, echidnainc.com, globenewswire.com

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Will grow at a CAGR of 62% from 2015 –2020, with 54% of mobile viewing spent on content running 10 minutes or less

Mobile Video

62%iBeacon market will grow at CAGR of more than 221% from 2015 - 2019

Proximity

With a CAGR of 44%, more than 600 million wearable devices will be sold by 2020

Wearables

Expected CAGR from 2015-2019 in actively used apps of 76.1%

44%

221% 76.1%

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Venture Builder Pipeline

4Apps in market Apps in development

2Apps in strategy phase

7✓ iVideo✓ iVideo Greetings✓ iVideo Gifts✓ iVideo Greetings SDK

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Prodigy’s In-Market Mobile Video Apps

iVideo

iVideo Greetings SDK

iVideo Gifts

iVideo Portfolio

• iVideo: Nexgen social video with leading edge functionality

• iVideo Greetings: Professional quality, personal video e-greeting cards – without the work

• iVideo Gifts: Over 90 top brands of e-gift cards with iVideo Greetings e-cards included

• iVideo Greetings SDK: Adding emotional and social gift value to e-transfers, e-payments and retail

iVideo Greetings

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iVideo

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• First in the suite of iVideo products

• Competes with Snapchat, Instagram, Youtube

• Available on iOS, Android, Apple Watch and Apple TV

• Users share personal videos with each other, add special FX

• Free app with unique user experience

• Over 200K downloads

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iVideo Greetings

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• Second in the suite of iVideo products

• Proprietary library of pro-quality iVideo themes (intro + trailer) for all greeting card occasions

• Consumers insert their selfie video into an iVideotheme to make custom e-greeting card

• Email + web delivery of greetings to recipients

• Launched in November 2016

• Available on iOS and Android

• Pay-per-use and subscription revenue mode

• Greeting card industry is a $10B industry in North America, not yet digitally disrupted

Source: Global Industry AnalysisInc.

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iVideo Gifts = e-Gift Cards + iVideo Greetings

…And Many MoreU.S. Retailers…

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Source: Global Industry AnalysisInc.

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• Third in the suite of iVideo products

• e-Gift cards + iVideo Greetings in one app for a unique e-gift offering

• Partnering with leading companies to provide consumer gift cards

• Initial launch February 2017 on iOS, Android to follow

• Prodigy buys discounted gift cards (5.5% to 20%), consumer pays face value

• Gift card industry is a $100B+ industry worldwide, not yet digitally disrupted

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Business Opportunity for Gifting in e-Transfers

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• Greeting card industry is a $10B industry

• Gift card industry is a $100B industry

• Current e-transfer systems only offer capability to send funds with a text message

• Research indicates very low usage of e-Transfers services for gifting

• User experience is inadequate for gifting

• Missing emotional content

• Not cool, fun or memorable

• Lacks social dimension

• We provide the Solution!!!

Source: Global Industry AnalysisInc.

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iVideo Greetings SDK

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• All of the functionality of iVideo Greetings delivered in a lightweight SDK (Software Development Kit)

• Available NOW

• Makes e-transfers into a great gifting experience

• User experience is enhanced for gifting

• Emotional content

• Cool, fun and memorable

• Stimulates social interaction

• Integration services available

iVideo GreetingsSDK

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iVideo Greetings SDK

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• Personalize e-transfers with iVideo greetings

• Provide video themes for all gift-giving occasions

• Package the iVideo Greeting + e-transfer in a virtual gift box

• Provide content moderation as required

$350K/YearLicensing Fee

$0.15-$0.50Per Transaction

Problem: Existing e-transfers = Low value gift experience

160M transactions in 2016, with very few gift e-transfers

Additional opportunities in international money transfer, other e-payment systems, and retail

Potential Revenue/Bank Client*

* Based on discussions with Bank prospects

iVideo GreetingsSDK

Solution: iVideo Greetings + e-transfers = High value gift experience

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Experienced Management Team

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Jeff WattsExecutive Vice President• Over 25 years of global experience in direct sales, channels, marketing,

business and corporate development at SAP, Xerox and 3Com, and startups such as Quack.com (acquired by AOL). Jeff serves on several boards and has contributed to successful exits, including Locationary (acquired by Apple) and Elliptic Technologies (acquired by Synopys).

Tom BeckermanFounder, CEO and Director• Technology veteran with 35+ years of experience in senior leadership roles• Played instrumental roles in success of seven other tech, marketing services,

financial information and medical device companies

Andrew Hilton:CFO and Corp. Secretary• Ten+ years experience providing

financial reporting and corporate secretarial services for public companies

• Chartered Professional Accountant (CPA)

Andrew Kieran:Vice-President• Ten+ years experience in technology

architecture, design and development• A leader in development of

innovative mobile and payment solutions

Hussein VastaniCTO• 8+ years experience in full stack architecture, design and development• Led advanced technology projects at large public companies

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• Over 30 years experience •

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Board Members Bring Strong Oversight

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Robert MacLeanChairman, Board of Directors• Co-founder and CEO of

Points International since 2000 (TSX:PTS, NASDAQ:PCOM)

• Has grown Points into globally recognized leader, working with 60+of the world’s largest loyalty programs

• Prior to Points, held impressive list of senior leadership roles in airline and loyalty industries

Stephen MooreDirector

in securities industry inresearch, sales, tradingand corporate finance

• Senior leadership roles at Burns Fry, Lancaster Financial and TD

Securities• Was a Founder and

Managing Director of Kensington Capital, specializing in private equity advisory services

Tom BeckermanFounder, CEO and Director

35+ years of experience in senior leadership roles

• Played instrumental roles in success of seven other tech, marketing services, financial information and

medical device companies

• Currently focused on strategic development and marketing of high tech plaborms and services

Jeffrey ShaulChair, Advisory Board

industry experience in senior positions with major firms including Scotia Capital and TD Securities

• Experience in

underwriting, mergers & acquisitions, private equity and asset management

• Founded independent investment firm Robson Capital in 2003

Technology veteran with • Thirty years securities

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Summary

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✓ Profitable services business with strong record of revenue growth

✓ Plans to aggressively expand into additional financial institutions andother enterprise clients

✓ Acquisition opportunities to accelerate growth

✓ Net new revenue opportunities with Venture Builder✓ iVideo Greetings, iVideo Gifts and SDK monetization campaigns✓ Pipeline of upcoming Venture Builder apps and platforms

✓ Experienced management and strong board

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Company contact:

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Babak Pedram Investor Relations Virtus Advisory [email protected]+1 416.644.5081

Andrew HiltonChief Financial Officer Prodigy [email protected]+1 416.606.8833