Creative Realities, Inc. · NASDAQ:CREX
Creative Realities — Investor Presentation (May 2023)
32 slides from Creative Realities's investor presentation, May 25, 2023
Slide 1: Leading in Digital Engagement Solutions
Leading in Digital Engagemen‘ Solutions \ May 2023
Slide 2: Forward Looking Statements
Forward Looking Statements ‘This presentation contains "forward-looking statements" within the meaning of Section 27Aof the Securities Actof 193, as amended, Section 21E ofthe Securities Exchange Act of1934, 25, ‘amended, andthe private Securities tigation Reform Act of 1985, and includes, among oth
Slide 3: Use of Non-GAAP Measures and Key Performance Indicators
Use of Non-GAAP Measures and Key Performance Indicators ‘creative Realities Inc. prepares ts consoldated Finacial statements in accordance with United States generally accepted accountingprinciples ("GAAP"). Inaddition to disclosing financial results preparedin accordance with GAAP, the Company disc
Slide 4: Who we are and what we do
&) Who we are and what we do
Slide 5: Slide 5
Slide 6: Company Information
Company Information Overview: Objectives: Creative Realities, inc. (CR!) provides digital solutions to enhance Given the market-leading companies we serve, there is a communications in a wide-ranging variety of out-of-homeenvironments good chance that if you leave your home today to shop, 2 providin
Slide 7: Management team
Rick Mills Chief Executive Officer Will Logan Chief Financial Officer George Sautter Head of Corporate Development Leesummers President, Sports & Entertaioment creatveneaiies 3) Joinedin2015, Lifelong entrepreneur whohas dedicatedhis ‘areerto restructuring, rebuilding, and rebranding technology comp
Slide 8: Our Purpose, Vision & Values
Our Purpose, Vision & Values Our Purpose Digitally Enhancing Placing and Spaces Our Vision Trusted Advisor and Supplier of Digital Solutionsat Scale creatveneaiies 3) Our Core Values Passionate [e) We're a group of passionate people. We work hard, have fun, & produce quality along the way! “Respectf
Slide 9: Sources of Revenue
Sources of Revenue The Company generates revenue from four primary sources: Hardware the sale of hardware from original equipment manufacturers *Services including the following: = Hardware system design/engineering = Hardware installation = Content development = Content scheduling = Post-deployment
Slide 10: Target Market
Target Market * Opportunity for 500+ endpoints * Corporate controlled * Retail, QSR, C-Store, Financial, Entertainment, Ad-Supported Networks * Industry Influencers * Individual Brands within Retail Environments fitting criteria #1 & #2 creatveneaiies 3)
Slide 11: Extended Product Set, Tech Stack and ability to deploy at scale
CRi's Extended Product Set, Tech Stack and ability to deploy at Scale with a Cost Advantage are differentiators Product/Service ‘Typical Competition Digital signage AN Services (Ancillary) Network Management Crestive/Agency Resources (Omnichannel/Neuro-Marketing Content Development ‘Media Sales/AdTe
Slide 12: Historical Track Record of Growth
Historical Track Record of Growth Consistent organic growth rates in excess of 20% (~2x industry average) since 2015* ‘SaaS/recurring revenue expansion from <$0.5MM in 2015 to >$14.5MM exiting 2022 Expanded physical footprint in strategic markets to support growth Growth and upgrades in talent & per
Slide 13: Examples of our clients and our work
NA <a Examples of our clients and our work
Slide 14: Digital Signage Engages Audiences
Digital Signage Engages Audiences We build, manage, and support digital signage systems like this cretreneines ) 1%
Slide 15: Voice Activated Digital Display, Verizon Wireless
Apple Music ley Verizon, showme App Voice Activated Digital Display, Verizon Wireless Driven by the demand of frictionless, touchless experiences in response to COVID, we deployed voice-command browsing at 1,400 stores to feature 5G Entertainment offering and at 100 doors to support the SG Home offe
Slide 16: Connected Dealership Showrooms
= a Cesta 5) ALFA ROMEO ALLWHEEL ORIVE Connected Dealership Showrooms We deploy and manage an array of digital experiences across 2,700+ automotive dealership showrooms in 12 countries. 440 additional Canadian locations went live in January 2023
Slide 17: Network Monetization Adtech
Network Monetization Adtech that monetize reach and impressions like this. Providing audiences with engaging content and venue owners with additional revenue from advertising and sponsorship. crete 5)
Slide 18: Market: Update and Overview
f- 7S Market: Update and Overview
Slide 19: Retail Technology and Digital OOH Opportunity
t and Digit | OOH Opportunity Digital Out of Home Retail Technology ~$20B* OOH defined as Digital Place- Based Networks or Digital Out of Home ~ Indoor ‘or outdoor video, often internet-enabled, that are seen in major markets that provide content and targeted advertising to consumers “ea “Estimated
Slide 20: Company History/Milestones
Company History/Milestones Company Milestones/Prior Transactions Originally incorporated as “Wireless Ronin Technologies, Inc.” in 2003. The company hhas completed 5 mergers and acquisitions: B meanest Gone Nivasiag | (COMUE| | [x5]Renecr : <r ag il croatvereaiies 3)
Slide 21: Current Market Position
Current Market Position gs ‘The Global Ranking of DS Software Vendors say 2002 * Top Ten digital signage software provider in the world and growing aay + Leading providerto patient-supported ad networks | oe om Spon) + Leading providerin the stadium/arena market sont anne vn) ‘(ota ey StF ho tins *
Slide 22: Digital Engagement Market — Growth Drivers
Digital Engagement Market — Growth Drivers * Retail Transformation: * Retail players are integrating digital signage to share relevant and profitable content at their premises to drive consumer behavior and purchase decisions. * Shift in focus to drive-thru, mobile, and remote ordering requires an i
Slide 23: Integrate into processes and backend
Integrate into processes and backend Business Critical Customer and employee journey focus > DS works More professional, centraly managed Connected Signage - Datastivon, ily connected projects -> Positive Rol / Solid KPIs Local Experience Every department gets its chance > Confusion “Touch devices a
Slide 24: Industry fragmentation supports acquisition strategy
ry fragmentation supports acquisition strategy to supplement organic growth * Cross sale of products and services = Expanded customer engagements * Software platform consolidation (CMS rationalization) = Reduced overhead * Drive scale * Increase profitability - EBITDA. ‘We believe there are 200+ DOO
Slide 25: Why We Are Winning
Why We Are Winning
Slide 26: Enterprise level software purpose built for network monetization
‘Ourenterprise level softwares purpose built for network monetization, designed ease of use, uptime performance and consistency - under demanding environment requirements. * SOC and Media player agnostic . * Integration Ready Clarity : Extensive Remote Device Control & Monitoring (%) ReflectView + C
Slide 27: Design Engineering, Logistics, Deployment and NOC
Design Engineering CAD-Centfied, skilled talent experienced in new construction, DBR, fixture Integration, and envionment requirements crete i) Warehouse & Logistics Co-located wth company Hand houses customer: ‘owned inventory. Located 8.6 miles fom UPS Air Worldwide Hub. Project Deployment Experti
Slide 28: Creative Design, Analytics, Data Integration and Monetization
Creative Design and Content Management (Our award.vinning creative team has the knowledge and ‘experience to leverage the ‘medium and effectively connect your brand and products to consumers. Analytics and Content Optimization (Our unique approach to data-driven design and ‘measurement allows us to
Slide 29: How are we doing?
NA How are we doing?
Slide 30: Six-Point Value Creation Plan
Grow Revenue Improve Margins Grow ARR/Teanslateto EBITDA Manage Leverage Ratio OTP Framework ‘Opportunistic MBA Six-Point Value Creation Plan jected revenue of $43M in 2022, achieved $43.3M + Pipeline full significant expectations into 2023 + Target revenue >$60M in 2023 (39% growth rate) + Return t
Slide 31: Long-term expectations
creatveneaiies 3) We expect to: = Scale to a global $150MM+ revenue provider of digital engagement solutions = Become the go-to ‘acquirer’ in the industry * Leverage infrastructure to generate significant, profitable growth = Expand expertise in strategicindustry verticals = Retail, QSR, C-Store, Au
Slide 32: Thank you
Rick Mills ceo x Rick.mills@cri.com 7) 3 Will Logan cro Willlogan@cri.com Thank you George Sautter Corp Development Goorge.Sautter@cri.com CRIHQ. 502.791.8800
Creative Realities — Investor Presentation (May 2023) on 6ix