AGM Presentation - Posera · Pax A920 Verifone Engage Platform Ingenico Moby M70 Clover Flex...

AGM PresentationJune 2018

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Forward Looking Statements

This presentation contains certain forward-looking statements that are based upon

current expectations, which involve risks and uncertainties associated with Posera Ltd.’s

business and the environment in which it operates. Any statements contained herein

that are not statements of historical facts may be deemed to be forward-looking,

including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”,

“expect”, “intend”, and similar expressions to the extent they relate to Posera Ltd. (the

“Company”) or its management. The forward-looking statements are not historical facts,

but reflect the Company’s current expectations regarding future potential results or

events. These forward-looking statements are subject to many risks and uncertainties

that could cause actual results or events to differ materially from current expectations,

including the matters discussed under “Risks and Uncertainties” in the Company’s

Annual Information Form filed on March 28th, 2018 with the securities regulatory

authorities and available on SEDAR. The Company assumes no obligation to update the

forward-looking statements, or to update the reasons why actual results could differ from

those reflected in the forward-looking statements, unless required by law.

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AGENDA

• Posera Corporate Overview

• Financial Reports

• Key Achievements 2017:

• Divestment of FingerPrints

• Path to Profitability

• Maitre’D

• SecureTablePay (STP)

• Kitchen Display Systems (KDS)

• JV with DLT Labs

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Posera Overview

• 30+ year history of supporting merchant business success in the hospitality industry

• Manage merchant transactions and facilitate all aspects of the transaction

• Solutions include POS system software solutions, enterprise management tools,software to enable secure transaction at the table and kitchen display monitors

Three Business Divisions

• Solutions deployed in over 30,000 merchant locations, 25 countries and 8 differentlanguages

• Direct sales force bolstered by a global dealership network of resellers

Full-Service Hospitality POS Pay-at-the-table Software Kitchen Display System

Posera Financial Results

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(1) Amount applies the retrospective presentation for the Fingerprints and Zomaron transactions completed in September, 2017 and April, 2016 respectively

(Millions) Fiscal 2016 Fiscal 2017

Revenue1 $9.5 $10.7

Recurring Revenue1 $2.9 $2.7

EBITDA1 ($3.4) ($2.1)

Net Operating Working Capital $1.9 $12.0

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Divestiture of FingerPrints™ Business

Fingerprints Summary• Launched in 2004• Specifically for Quick Service Restaurant industry• Primarily one large customer

Benefits of Transaction• Slow growth and headwinds• SICOM was better home for FP given reach and relationships• Retired corporate debt• Recapitalized the Company

Specifics of the Sale• Price - $12.2M• Recorded gain - $10.9M• Almost all FP employees transferred to SICOM• Posera provided a 6 month successful transition

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Path to Profitability

• Improved financial management and discipline

• Elimination of corporate debt• YE 2016 - $1.5M• YE 2017 - nil

• Trimmed operating expenditures• Reduced facility costs by more than 55% • Reduced headcount 50%

• Increased revenue per head by 30%• $146k per head

• Improved cash management• Working capital ratio increased from 1:1 to 3.5:1 (current assets/current liabilities)• Overdue receivables reduced 17 percentage points to 33% (of AR Balance)• Reduced days sales outstanding from 106 to 54

Maitre’D

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Maitre’D Success in Hotel Industry

• Hotel expansion in Europe with a year-over-year 220% increase in hotel related revenues

• Installations with iconic hotels such as the Hilton Charles De Gaulle, Hilton Barcelona, Hilton Luxembourg

• Integration completed hotel back-office solutions allowing for further Hotel expansion worldwide

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Maitre’D Additional Achievements

• Senior Housing Market • Completed integration with Common Cents who provides back-office

solutions to improve retirement reporting based on customer selections

• Deployments completed with Leisure Care

• Partnership with large US Payment Processor• Replaced major US payment processor’s POS with Maitre’D

• NF 525 – France Market• Fiscal printer, similar to SRM in Quebec

• Required for France in 2017

SecureTablePay in Action

https://www.youtube.com/watch?v=itkTLQT3ZRk

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STP Key Achievements Fiscal 2017

STP is now certified and has been piloted with the below Major Acquirers in the USA and Canada

Initial Purchase• Posera purchased the SecureTablePay business (TMC) in January 2015• Bought for US opportunity as market for STP solutions in Canada was saturated

Posera Anticipated a Massive Opportunity in the US for STP• Pay-at-the-table really does not exist in the US• EMV mandated in the US (chip cards)• Estimated ~600,000 sites will need new EMV terminals and potentially PaTT

Certifications and Pilots• Certifications with multiple leading US Payment Processors:

• Vantiv / Worldpay, Heartland, First Data and Sterling

• Successfully completed Pilots:• Several Processors - Vantiv, FirstData and Heartland• Variety of POS Systems - Aloha, Micros, Maitre’D, Pixelpoint• Variety of restaurant types and geographies• Lots of learnings and product improvements

• Distribution through partner channels: Processors, POSs, Dealers, Distributors and Hardware Providers

• Launch of STP in the US to commence in Q3 2018

SecureTablePay Story

Innovation

Ingenico TetraPlatform

Pax A920 Verifone EngagePlatform

Ingenico Moby M70 Clover Flex

Product Roadmap

Many devices. Colour. Smart. Touch Screen. Email and Text enabled. The Future.

Ingenico IWL 250 Series

Old Product

One device. Reliable, durable and proven.The Past.

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KDS – Increases Kitchen Productivity

COMPREHENSIVE, COST EFFECTIVE AND EFFICIENT

KDS sends orders to kitchen staff instantly. Fully customizable order display screens simplify order preparation and decrease the average time it takes to complete an order

• Display up to 20 orders at a time• 35 different screen display modes, including

split and summary screens• Font, size and colour can be customized• Item consolidation and prioritization• 3 lines of remarks can be displayed

• Display client and/or seat numbers for each• Display average order ties on the screen• Display either long or short descriptions• Display the server, revenue center and mode

with each other• “On the fly” feature will transmit items to the

KDS as you enter them

KDS – Key Achievements

• Historically sold exclusively bundled with Maitre’D• Proprietary product. Home grown solution

• Repositioned as stand-alone offering in 2017• Repackaged and rebranded• Integrated to 3 non-Posera POS systems• Dedicated direct sales efforts• Secured 2 major accounts• Streamlined supply chain• 570% increase in unit sales (2017 - 2163 units)• 450% increase in revenues (2017 - $1.6M)

• Developing business plan to expand business as full-standalone• Separate business unit• Brand, marketing, sales channels (currently only direct)• Developed API to facilitate technical integration

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Joint Venture with DLT Labs

• Continued product innovation & revitalization • KDS, STP, etc.• Determination to seek new technology & product extensions

• Evaluated options and partners – Blockchain preferred technology• New emerging technology. Robust potential • Fit with industry and products

• DLT Labs is a global leader in the development and integration of innovative enterprise solutions using distributed ledger technology (DLT) / blockchain

• Canadian company; HQ in Toronto. Development offices in India. • 80 people and growing quickly

• Distributed data management products for enterprise; e.g.• DL Asset Track – Supply chain on blockchain - Cobalt tracked transparently from source in

Congo right through to retail• DL Certify – University certifications put on blockchain to provide accessibility and trust• DL Wallet – Digital wallet to store digital currency or points• Not crypto currency

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Joint Venture with DLT Labs

• Posera & DLT Labs announce joint venture - October 2017• Blockchain in hospitality POS and payments• No separate legal entity

• Multiple opportunities• Hospitality POS solutions on blockchain with digital wallet• Blockchain and digital currency enabled payment devices• Exploring in stealth

• Formalizing relationship - May 2018• Funding via secured convertible loan (up to $1.6M)• Posera benefits from option to either JV itself or conversion into equity in DLT

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Summarizing Posera 2017 Achievements

Key Achievements

• Divestiture of the FingerPrints

• Path to Profitability

• Maitre’D Additional Achievements• Product Improvements• Hotel Expansion• Senior Housing Market• Processors Partnerships• NF 525 – France

• SecureTablePay• Certifications and Pilots

• Kitchen Display Systems• Decoupling from Maitre’D• Rolling-out to Large US Customer

• JV with DLT

(Millions) Fiscal 2016 Fiscal 2017

Revenue1 $9.5 $10.7

Recurring Revenue1 $2.9 $2.7

EBITDA1 ($3.4) ($2.1)

Net Operating Working Capital $1.9 $12.0

Financial Improvement

(Millions) Q1-2017 Q1-2018

Revenue1 $2.1 $2.7

Recurring Revenue1 $0.6 $0.7

EBITDA1 ($1.1) ($0.7)

Net Operating Working Capital $2.7 $11.4

(1) Amount applies the retrospective presentation for the Fingerprints and Zomarontransactions completed in September, 2017 and April, 2016 respectively

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For further information please contact:

Kevin MillsCFO

kmills@posera.com519-434-8017

Dan PoirierCEO

dpoirier@posera.com613-741-8814

posera .com