pgv investor presentation 2018-03 v21 ·...

27
Investor Presentation TSXV:PGV March 2018

Upload: others

Post on 21-Sep-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Investor PresentationTSXV:PGV March 2018

Page 2: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Forward Looking Statement

TSXV:PGV 2

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.

Page 3: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Prodigy Ventures Inc.

TSXV:PGV 3

Company Overview

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

• The company operates two complementary divisions: • Prodigy Labs Division – Enterprise technology

service provider with core expertise in mobile solutions, providing services to financial institutions and others (“Services Provider”)

• Venture Builder Division – Creating business platforms and applications in emerging technologies, including mobile, video, secure ID, voice, blockchain, payments, augmented reality and artificial intelligence

• Headquartered in Toronto

Venture Builder Service Provider

Page 4: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

PGV Stock Performance

Prodigy Ventures Inc.

TSXV:PGV 4

Company Highlights

• $12.1m revenue in FY 2017 – 72% 2 Yr. 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 OutstandingCommon Shares Outstanding

114.3M26.2M

Stock Price (2018-03-31) $0.175

Market Cap (2018-03-31) $20.0M

Warrants ---

Options (Avg $0.10, expire 2018-12-31 and 2019-12-31)

1.785M

CEO Ownership 56%

Cash (2018-03-31) $1.2M

Debt Nil

Year End Dec 31

Staff (2018-03-31) 97

0.000

0.100

0.200

0.300

0.400

2015

-09-

01

2015

-11-

01

2016

-01-

01

2016

-03-

01

2016

-05-

01

2016

-07-

01

2016

-09-

01

2016

-11-

01

2017

-01-

01

2017

-03-

01

2017

-05-

01

2017

-07-

01

2017

-09-

01

2017

-11-

01

2018

-01-

01

2018

-03-

01

Page 5: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Our Business Model: Innovate, Create, Deliver

TSXV:PGV 5

Venture Builder Division Services Provider Division

• 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 emerging 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 Service Provider

Page 6: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

BLOCKCHAIN

AUGMENTED REALITY

MOBILE

ARTIFICIAL INTELLIGENCE

SECURE ID VOICE

PAYMENTS

VIDEO

Where Do We Play?

TSXV:PGV 6

Page 7: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Service Provider Division: Prodigy Labs

Service Provider

TSXV:PGV 7

Page 8: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

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

Page 9: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

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, secure ID, voice, blockchain, payments

Apps In-MarketIOS

Apple Watch

TSXV:PGV

Prodigy Labs: Onshore, On-site, On Point

9

Android

Mobile Banking

IOS

Wallet

Android

Wallet

IOS

Apple Pay

IOS

Mobile Banking

Page 10: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

TSXV:PGV

Prodigy Labs: Partnering to Deliver

10

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 our Venture Builder

Division

“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 on

successfully delivering cutting edge

solutions through co-innovation with

clients

Page 11: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

240+Contracts

A History of Rapid Revenue Growth

TSXV:PGV 11

Prodigy Labs: Performance

72%2 Year Revenue

Growth

Year ended*

2015-12-31

Year ended

2016-12-31

*The company only had a 9 month fiscal year in 2015 because the company changed its year end upon going

public in September 2015. The amounts shown are for a comparable 12 month period in 2015.

Revenue

$7,069,714

Revenue

$11,020,658

R&D

Net Income

Revenue

$12,140,692

Year ended

2017-12-31

Page 12: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

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

12

Prodigy Labs: Growth Strategy

TSXV:PGV

Page 13: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Venture Builder Division: Prodigy Ventures

Venture Builder

TSXV:PGV 13

Page 14: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Building Businesses With the Emerging TechnologyWith our cash flow we are able to invest in emerging technologies, such as:

TSXV:PGV 14

Mobile video dominates internet traffic, with social,

short duration content leading the growth curve.

Mobile VideoProof of identity and

securely sharing personal digital assets are two of the greatest online challenges and

opportunities.

Secure IDConversational user

interfaces are on track to become the primary

means with which we use applications.

VoiceThe technology of

blockchain is transforming digital ecosystems across a wide range of industries.

Blockchain

Page 15: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

TSXV:PGV 15

Venture Builder Pipeline

3Apps and platforms

in marketApps in development Platforms

in development

2ü iVideoü iVideo Giftsü iVideo Greetings SDK

§ ID Verifact§ Prodigy Vox

Page 16: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

TSXV:PGV 16

Prodigy’s In-Market Mobile Video Apps

iVideo

iVideo Greetings SDK

iVideo Portfolio

• iVideo: Nextgen social video with leading edge functionality

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

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

iVideo Greetings

Page 17: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

iVideo

TSXV:PGV 17

• 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

Page 18: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

iVideo Greetings

TSXV:PGV 18

• 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 iVideo

theme 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 Analysis Inc.

Page 19: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Business Opportunity for Gifting in e-Transfers

TSXV:PGV 19

• 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 Analysis Inc.

Page 20: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

iVideo Greetings SDK

TSXV:PGV 20

• 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

Page 21: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

iVideo Greetings SDK

TSXV:PGV 21

• 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

Problem: Existing e-transfers = Low value gift experience180M transactions in 2017, with very few gift e-transfers

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

iVideo GreetingsSDK

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

Page 22: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

TSXV:PGV 22

Prodigy’s Secure ID Platform and PracticeSecure Identity Standards Emerging at Accelerating Pace

Addressing new rules for data privacy and securityShifting digital economy and new customer engagement modelsBuilding on new Technologies including blockchain

Trusted Partner Ecosystem developing around

from

“We believe this will be the new de facto standard”Tom Beckerman, CEO & Founder of Prodigy Ventures.

MAJOR BANKS INVEST $27M TO DEVELOP CANADA’S

NATIONAL DIGITAL ID NETWORK

Page 23: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Prodigy Vox

TSXV:PGV 23

• The Prodigy VOX Platform is a hub that enables voice UI in business applications• Build-Once-Deploy-Many multi-platform voice application development• Consistent experience across platforms and services

• Single point of integration between various voice devices and voice platforms for banking, retail and other back-end systems

• Supports rules-based and sophisticated authentication models• User dialogue capture for analysis and audit• Handles user requests, increases satisfaction and processes hand-offs• Integrates with existing applications• Voice SDK enhances current web and mobile applications without use of voice

assistants• Pre-built capabilities and out of box user journeys accelerate time to market• Built-in evolution as devices and voice platforms change• Insulates voice applications from proprietary NLP platforms • Supports security and step-up mechanisms

Page 24: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Experienced Management Team

TSXV:PGV 24

Jeff WattsPresident• 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)

• 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

Pierre RobergeCTO & SVP Solutions and Innovation• More than 20 years experience at the forefront of innovation in digital

identity, digital currency, online, mobile and payment marketplaces

• Co-founded SecureKey Technologies, Dexit and Rocket Piggy

• Previous enterprise clients include TD Canada Trust, the Royal

Canadian Mint, Interac, EnStream, Suretap, Telus and Intel

• Fintech advisor to the MaRS Innovation Centre.

Page 25: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

• Over 30 years experience •

TSXV:PGV

Board Members Bring Strong Oversight

25

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 TDSecurities

• 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 andmedical 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 inunderwriting, mergers & acquisitions, private equity and asset management

• Founded independent investment firm Robson Capital in 2003

Technology veteran with • Thirty years securities

Page 26: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Summary

TSXV:PGV

ü Profitable services business with strong record of revenue growth

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

ü Acquisition opportunities to accelerate growth

ü Net new revenue opportunities with Venture Builderü iVideo Greetings, iVideo Gifts and SDK monetization campaignsü Pipeline of upcoming Venture Builder apps and platforms

ü Experienced management and strong board

26

Page 27: PGV Investor Presentation 2018-03 V21 · Thispresentation(the"Presentation")contains"forward-lookinginformation"and"forward-lookingstatements" ... •Banks strategically choose to

Company contact:

TSXV:PGV 27

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