Alkaline Water Company Inc. (the) · OTC:WTER
Alkaline Water Company Inc. (the) — Merger or Acquisition (November 2019)
35 slides from Alkaline Water Company Inc. (the)'s merger presentation, Nov 22, 2019
Slide 1: Alkaline88
Alkaline
Slide 2: Cautionary Note Regarding Forward-Looking Statement and Health Claims
Cautionary Note Regarding Forward-Looking Statement and Health Claims “This presentation contains forward-looking slatemens relating the Compary. Statements in this presentation that are not purely historical are forward-looking statemenis and include any statements regarding beliefs, plans, expecta
Slide 3: Dominating the Alkaline Water Space
DOMINATING THE ALKALINE WATER SPACE * After only 6 years, Alkaline88® is the 10" largest enhanced water brand in the country * Ranked as one of the fastest growing value-added water brands in 2019 per Nielson’s data record of $10.4 million in net sales for fiscal year Q2 2020 * Alkaline88®is the num
Slide 4: Ur BProoatana waist esr f
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Slide 5: It's a Growth Story
IT’S A GROWTHSTORY Revenue (In $ Millions) $50 $46-$50 Fy2015 Fy2016 Fy2017 Fy2018 FY2019 Est. F¥2020 ‘eeRevenue (In $ Milions) Fifth Consecutive Year of Revenue Growth Above ~50% Alkaline8s =
Slide 6: Building on Our Strengths
BUILDING ON OUR STRENGTHS HIGHEST SELLING - Weare the #1 selling bulk alkaline water in U.S. UNIQUE BUSINESS MODEL + Direct-to-warehouse distribution * Eight strategically placed co-packing facilities + Broker alliances with EA Berg, Impact Group,Advantage Solutions, CA Fortune, Crossmark, Archpoint
Slide 7: Strengthening Our Core Competencies
STRENGTHENING OUR CORE COMPETENCIES ArchPoint €@ ArchPoint is a vertically integrated CPG consulting firm Development and implementation of our brand marketing strategy for existing and future products/brands Develop and monitor national marketing programs, chain specific, and mass media + Water Sou
Slide 8: Low Consumer Awareness of Alkaline Water Category
LOW CONSUMER AWARENESS OF ALKALINE WATER CATEGORY PRESENTS TREMENDOUS GROWTH OPPORTUNITY CATEGORY AWARENESS CATEGORY USAGE P3M 9 Aware of Type % Drank Type Bl Alkaline Water i Non-Alkaline Water 92 ot sa 8 2 8 6 a 0 a a a | | Alkaline water Regular water Flavored water Spring water Sparkling/Vitemin
Slide 9: Alkaline Water Drinkers Prefer Alkaline Water Over Other Waters
ALKALINE WATER DRINKERS PREFER ALKALINE WATER OVER OTHER WATERS CATEGORY CONSUMPTION FREQUENCY Batkaline Water HNon-Alkaline Water Heverlee pl : ee PS i Vitamin/Mineral water n=480 % Use At Least Daily ‘Source: Archpoint Group Base; Total Bottled Water Drinkers n=1022. y 9 Fy acinar aline
Slide 10: Among Alkaline Water Drinkers, Alkaline88 Has the Greatest Brand Loyalty
AMONG ALKALINE WATER DRINKERS, ALKALINE88® HAS THE GREATEST BRAND LOYALTY AWARENESS Os EVER USED Ou eu USED Pam USED MOST OFTEN AWARE-EVER 81% EVER-P3M 90% P3M-MO 4% CONVERSATION RATES Brand Funnel Os: @ Ox es ra Cn Ox i e On @s: ez @x e: eu eo @« 2 e: e: smartwater COre aang messentia J 74% 73% 72%
Slide 11: Accelerating Our Growth
ACCELERATING OUR GROWTH BRICK AND MORTAR EXPANSION THE POWER OF 88 CAMPAIGN * Taking advantage of current relationships + New marketing initiative » Grocery and drug-channels + Sustainable and defendable brand messaging + Expanding presence + All day hydration forfamily activities and adventures © C
Slide 12: Innovating and Disrupting
INNOVATING AND DISRUPTING Introducing the New Infused Product Line fi ¥ f m D> FLAVOR-INFUSED oO & 5s a 3B atl we R pe f es Akaline88
Slide 13: Best in Class CBD Relationships
BEST IN CLASS CBD RELATIONSHIPS Centuria Foods, Inc. + Industry veterans that can meet our QC standards + Largest importer on record of CBD since 2014 + Highest quality and safe CBD water-soluble and powder product with clinical and pharmacokinetic studies in U.S. * Company with NSF,ICCT and Organic
Slide 14: Explosive Growth Potential
EXPLOSIVE GROWTH POTENTIAL Flavored Beverages Infused with Full-Spectrum CBD* Extract fsa. (ee8\ (noe. A888 (A88 £A88 CBD ae | ¢ All Natural CBD CBD WATER WATER * Pasteurized « Less than 70 Calories * Three great flavors Alkkaline88 «
Slide 15: Ingestible Product Strategy
INGESTIBLE PRODUCT* STRATEGY * CBD* products catered to the specific needs of our customers A A. p...§ A AkalinesS — Alkaine88—Akaline8S_—Akaine88. CBD CBD CBD siete) * R&D driven formulation of highly bioavailable CBD extract Energy shot Recovery shot Relax het + Use of entourage cannabinoids as a
Slide 16: Innovating and Disrupting
INNOVATING AND DISRUPTING Expanded CBD Infused Ingestible Product* Portfolio Coming Soon GUcuMBER™ F GRAPEFRUIT + Akaline88 — Alkaline88_— Alkaline88_— Alkaline8 CBD CBD CBD CBD Energy Shot Recovery Shot Relax Shot Sleep Shot 25mg CBD» 25mg CBD 25mg CBD Alkaline8s. CBD Capsules 25mg CBD
Slide 17: Strategy for Topical Products
STRATEGY FOR TOPICAL PRODUCTS* Establish A88 brand as meaningful player in nascent CBD market * Leverage topical brand for faster speed to market Akaline8s Muscle Salve + Greenfield opportunities @ + Beauty Retailers: Ulta, Sephora, Neiman Marcus + Apparel Retailers: Designer brands, Urban Outfitter
Slide 18: Innovating and Disrupting
INNOVATING AND DISRUPTING Expanded CBD Infused Topical Product* Portfolio Coming Soon Hydrating Alkaline83 mF Body Lotion Hydrating Hand + Foot Cream | Akainess Akaine! — 88 Alkaline88- @ | Essential Oil Lip Balm Muscle Salve unscented ] SESE i i Ra pe a or ms Alkaline88 :: 2 rs i nie Sanne py deere
Slide 19: Product and Category Extension
PRODUCT* AND CATEGORY EXTENSION eas} oe ae \s i LK =! ae aa \ SER aR aq
Slide 20: Aqua-sition Growth
AQUA-SITION GROWTH Building the Market Leader in Enhanced Water and Healthful Hydration — = Alkaline Siz | WATE Slaineas Alkaline WATER per
Slide 21: Natural Synergies Create Significant Opportunities
NATURAL SYNERGIES CREATE SIGNIFICANT OPPORTUNITIES = =! ct nee = Alkaline88 Les] = WATER Bast E y 1L : 3L Alkaline88 AQUA . HYDRATE
Slide 22: Dominating the Alkaline Water Space
DOMINATING THE ALKALINE WATER SPACE Alkaline88® and AQUAHydrate® were ranked as two of the fastest growing alkaline water brands in 2019 per Nielson's data AQUAHYydrate® has products available in over 10,000 convenience stores Combined company present in over 75,000 stores Alkaline88® and AQUAHydrat
Slide 23: Compelling Strategic Rationale
COMPELLING STRATEGIC RATIONALE o The alkaline water category is the fastest growing category of the enhanced water sector + Transaction leverages synergies between the companies to capitalize on market growth + The transaction provides company additional scale and market penetration * The combined c
Slide 24: Operational Synergies
OPERATIONAL SYNERGIES Accelerated Convenience Store Penetration DSD FOOTPRINT + Leverage AQUAHydrate®’s DSD network channels + We believe convenience store market will be beneficial for new product portfolio o Logistical Costs GoodUpgraded “SS + We expect significant reduction in raw material procur
Slide 25: Operational Synergies
OPERATIONAL SYNERGIES o Cross-Promotional Opportunities + Flavor infused, CBD/Hemp*, and future products * Opportunities for cross-selling new SKUS. 2 2! a aN © Enhanced R&D capabilities AYKBB™) Akainess = . © Sales Network CBD oe Oy iow es iy * One point of contact for both brands A WATER 2 | | + A
Slide 26: Media Synergies
MEDIA SYNERGIES New Alkaline88® marketing initiative currently in progress AQUAHYydrate® utilizes a team of dedicated celebrity brand ambassadors * Sean “P Diddy” Combs, Mark Wahlberg, and Jillian Michaels * 65 million combined social media outreach Adding this celebrity strength to a company that h
Slide 27: Faces of the Combined Brand
FACES OF THE COMBINED BRAND
Slide 28: Innovation and Expansion
‘Akalne8@s\ Akalnes§, Akaine88" Akalne88 INNOVATION AND EXPANSION a 28
Slide 29: Cost synergies are expected to be delivered
Cost synergies are expected to be delivered in the following areas: Procurement, Logistics, and Best Practice Sharing Confirmation of synergies is a result of increased visibility and confidence in the synergies identified as part of the collaborative process between AQH and WTER, which has been und
Slide 30: Combined Company Cap Table — Post Close
COMBINED COMPANY CAP TABLE — POST CLOSE September 30, 2019 Cap Table Common Stock, $0.001 par value 200,000,000 shares authorized Proforma Cap Table Common Stock, $0.001 par value 200,000,000 shares authorized Common Shares Issued and 44,892,567 Common Shares Issued and 64,457,784 Outstanding Outsta
Slide 31: Sales Guidance
SALES GUIDANCE Alkaline88 Fiscal Year Sales Ending March 31 43-55% S50 Increase from Prior Year Projected 40 67% CAGR* 63% Increase from Prior Year 30 ™ Sales / Projected Sales 55% Increase from a i Prior Year 80% Increase from Prior Year 10 92% Increase from Prior Year | = ea 2015 2016 2017 2018 20
Slide 32: Key AQUAhydrate Shareholders
KEY AQUAHydrate® SHAREHOLDERS Sean Combs Investor and Board member Distinguished track record of successfully investing in and building several leading consumer brands Ciroc Vodka: partnered with Diageo and the brand grew from 80K cases to 2 million cases annually in five years Bad Boy Entertainment
Slide 33: President and CEO
PRESIDENT ANDCEO (Mr, Wrightis a co-founder of The Alkaline Water Company inc. and is responsible for its sucoess and rapid growth. He brings over 41 years of experience as a (CEO, CPA, entrepreneur, and executive. (Mr. Wright has extensive knowedge about the financial industry, with an ‘emphasis on
Slide 34: Questions?
QUESTIONS? =: rea 2
Slide 35: Important Information for Investors and Shareholders
Important Information for Investors and Shareholders & Certain Information Regarding Participants Important Information For Investors And Stockholders ‘This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or appro
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