sponsorsone investor deck

THE ENGINE OF THE SOCIAL ECONOMY

Disclaimer

This presentation is not a solicitation or offer to buy or sell any security or any interest in SponsorsOne. (the “Company”) and cannot be relied upon for making an investment decision. This presentation is prepared and circulated for informational purposes only and is not intended to provide investment, legal, accounting or tax advice or recommendations to any recipient and should not be considered a recommendation to purchase or sell any particular security, or to implement (or not implement) any particular investment strategy. You should consult your tax or legal advi-sor about the information contained in this presentation. This presenta-tion does not constitute an offering memorandum of the Company under applicable Canadian securities laws and does not attempt to describe all material facts or material information regarding the Company or its business. Persons receiving or reviewing this presentation should not rely upon it as a complete overview of the business of the Company and should rely on their own investigation and due diligence. Securities of the Company may only be offered or sold in those juris-dictions and to those persons where and to whom they may be lawfully offered for sale, and therein only by persons permitted to sell the interests. The Company has not filed a prospectus with any securities commission or similar authority in Canada in respect of the interests and, accordingly, the interests will not be qualified for sale in Canada and may not be offered or sold directly or indirectly in Canada, except pursuant to an exemption from the prospectus and registration requirements of Canadian securities laws. Investment in the Company will involve significant risks, including loss of the entire investment. No securities commission or similar authority in Canada has reviewed or in any way passed upon the merits of an invest-ment in the Company, and any representation to the contrary is an of-fense. All of the information contained in this presentation are for prelim-inary discussion purposes only. Final terms and conditions may change without notice and are subject to further discussion and negotiations.

This presentation may contain certain forward-looking statements, projec-tions, opinions and information that are based on the beliefs of the Com-pany as well as assumptions made by and information currently available to the Company with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying opinions or assumptions prove incorrect, actual results may vary materially from those described herein. The value of investments and any income generated may go down as well as up and is not guaranteed. An investor may not get back the amount originally invested. Past performance is not necessarily a guide to future performance. The Company and its directors and officers cannot be held responsible for any direct or incidental loss incurred by applying any of the information in this presentation. The statements and opinions expressed are subject to change without notice based on market and other conditions and may differ from opinions expressed in the Company’s other businesses and activities. Descriptions of the Company’s processes and strategies are based on its general practice and the Company may make exceptions in specific cases. While the information contained in this presentation was developed from sources believed to be reliable, no representation, warranty or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained in this presentation by the Company or any of its directors, officers or employees and no liabil-ity is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained in this presentation. This presentation should be considered confidential and no information con-tained herein either in whole or in part may be reproduced or redistributed without the express written consent of the Company. Any reproduction or redistribution of this presentation without such consent is unauthorized.

Overview

2006

TRACKSIDE SPONSORSHIPEXTREME SPORTS

SOCIAL SPONSORSHIP

2007 2008 2009 2010 2011 2012 2013 2014

timeline

2006 Sponsorship company launched in extreme sports

2011 $400,000 raised seed capital

2012 Receives grant from University of Waterloo > Enters Accelerator Centre

2013 $1.25M raised, RTO, trading on CSE

2014 SponsorsOne launched > Tech team in Waterloo > Sales/marketing team in Toronto > Target acquisitions LA, NYC, Toronto, Seattle and Stockholm

CSE Symbol: SPO

Shares Outstanding: 13.4 M

Fully Diluted: 26.6 M

Market Cap: 12.51 M

Directors/Officers own 64.5% undiluted

Recent Share Price: $0.90

52 week hi: $1.00

52 week low: $0.90

$491B Global Advertising

Size of Market $38B in Social/Mobile/Video (2014)

+$11B in 2014

WILL OWN THIS

DIGITAL MARKETING

$88B

$27B

$376B

Search/Banners

Social/Mobile/Video

Traditional 0% growth

13% growth

41% growth

Source: Magna Global, MediaPost, WARC 2013

(TV, Radio, Print)

TRADITIONAL MARKETING

Problem – Brands Not Satisfied

Digitalmarketing®

Banners

Social Video

Search

Mobile

BBrands Consumers

No one-to-one connection

No visibility on true influencers

Campaigns don’t scale

Low ROI CURRENT METHODS Total lack of engagement

Influencers Not Satisfied

Artists’ revenue from FB, Twitter, Instagram

$0

The Engine of the Social Economy

®BBrands Enthusiasts

Social sponsorship Engage with the brands they love

Social commerce Get paid with real currency

Defining the Social Economy

B

Social sponsorship

Social commerce

Influencers

Enthusiasts

xCreditsTreasury

Central bank

Social networks

Brands

Roles within Social Sponsorship

®®

Cloud

x-credit brands enthusiast

elite influencer social media networks niche social networks

sponsors cloud wordmark

xChange

sponsors xChange wordmarksponsors cloud symbol

sponsors bank

®BBrands buys xCredits to reward enthusiasts for authentic engagement

®®

Cloud




xChange


sponsors bank

®BEnthusiasts receive

currency rewards for promoting the Brand

®®

Cloud




xChange


sponsors bank

®B

Social networks – where social sponsorship

happens

®®

Cloud




xChange


sponsors bank

®B

Influencers are the catalysts for long-term

sponsorship

A Brand’s Sponsorship Levels

10% o�

25% o�

50% o�

10% o�

25% o�

50% o�

Enthusiast

Advocate

Ambassador

Influencer

25,000 xCredits

75,000 xCredits

Consumers increase sponsorship through authentic engagement

Social Sponsorship in Action

Getting sponsored

• He’s a fan of pro player, Mr. J

• Mr. J is an influencer for Brand X

• He’s passionate about Mr. J’s Brand X shoes

• Visits Mr. J’s Facebook fan page

• Clicks on SponsorOne’s “Get Sponsored” button

• Billy now has xCredit account, SponsorsCloud connects to all his social media sites

• Billy selects Brand X among Mr. J’s multiple Brands

• Billy receives 50 xCredits in account from Brand X for engaging


Earning xCredits

Billy posts pic on FB of himself in Brand X store with shoes on

• Gets lots of likes and shares

• Sees xCredits balance go up +25

Tweets about the store experience

• Friends retweet it

• Sees xCredits balance go up +4

Mr. J’s xCredit balance goes up too +5

®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B


Achieving new sponsorship levels

Billy gets sponsored by clothing Brand Y and skateboard Brand Z

• Keeps the authentic engagement going

• xCredits balances keep going up

Moves up 2 levels with Brand X

®®

Cloud




xChange


sponsors bank

®B

10% o�

25% o�

50% o�

Enthusiast

Advocate

Social Commerce in Action

Converting to real dollars

• Billy has earned enough xCredits from Brands X, Y, Z

• Can now exchange for $200 Brand X shoes

• Billy receives his 25% off code worth $50 coupon

• Exchanges xCredits for cash coupon

• Brand X bids “80 cents on dollar” based on Billy’s Impact Score

• Score driven by quality of brands, xCredits earned, type of engagement

• Exchanges 1500 xCredits for $120 coupon

• He buys shoes for $30

Social Commerce in Action

Converting to real dollars

Brand wins – buys xCredits at 20% discount, has a rewarded fan

Billy wins – buys $200 shoes for $30

Mr. J wins – receives 150 xCredits from Brand (10%)

SPO wins – 150 xCredits returned to central bank (10%)

The Social Currency value is based on

• the Impact Score of the enthusiast

• the monetary value – every user has their own Social Commerce value

How SponsorsOne Makes Money

xCredits SalesSale of xCredits

to brands

Partnering with Influencers and social

networks

Global Creative Agency

Fees for digital marketing services

to brands

Acquire digital boutique agencies

AcquisitionsSocial

networks

Big Data AnalyticsAccess fees to brands,

agencies for Social Economy analytics


Sale of xCredits

®®

Cloud




xChange


sponsors bank

®B

REVENUE SHARE

®®

Cloud




xChange


sponsors bank

®B80-90%

10-20%

1,000,000

®®

Cloud




xChange


sponsors bank

®B ®®

Cloud




xChange


sponsors bank

®B®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B

$100K + X%

• Central bank issues xCredits to Treasury

• Brands pay cash to Treasury

• Treasury issues xCredits to Brand

• Treasury earns X% transaction fee


Enthusiasts earn xCredits through authentic conversations about the Brand Authentic engagement

®®

Cloud




xChange


sponsors bank

®B ®®

Cloud




xChange


sponsors bank

®B®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B ®®

Cloud




xChange


sponsors bank

®B

No fee to authenticate the engagement


Enthusiasts earn cash and discounts to buy the products and serves they love

®®

Cloud




xChange


sponsors bank

®B ®®

Cloud




xChange


sponsors bank

®B®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B ®®

Cloud




xChange


sponsors bank

®B

Real rewards

®®

Cloud




xChange


sponsors bank

®B

• Brands pay discounted value on xCredits

• Discounts based on level, Impact Score

• Treasury earns transaction fee

• % of xCredits goes to central bank

®®

Cloud




xChange


sponsors bank

®B

XCREDIT SHARE

®®

Cloud




xChange


sponsors bank

®B

60-80%

10-20%

10-20%

®®

Cloud




xChange


sponsors bank

®B

®®

Cloud




xChange


sponsors bank

®B


Managing supply and demand within the Social Economy

redeemed for products 10-20%

redeemed to “level up” 10-20%

transferred to fans by influencer 5-10%

transferred between enthusiasts 5-10%

donated to charity 0%

Reduces the number of xCredits in circulationBrands and Influencers purchase more xCredits

Returned to TreasuryTransactions


Growth strategyCreative Agency acquisition

• Serving major brands and celebrities

• 10-20 person

• Firms with $3-5M revenue

• Have $20M Revenue in pipeline

Social Network acquisition

• 1-5M users

• Brings cash flow and revenue

• Proven technology

• Major brand relationships

Build the sales channel

• Recruit industry players to Advisory Team

• Joint Venture with Influencer Management Firms

Capital Markets Roadmap

• Market Cap: $50M

• Share Price: $3 - 5

• Working Capital: $10M

• Market Cap: $100M

• Share Price: $5 - 10

• Revenue/Earnings Visibility

Management Team

Our CEO

Myles Bartholomew

Developed Social Sponsorship while professional motocross racing

Wrote and filed the patent on Social Sponsorship in 2013

Capitalization

Shares Issued Basic Fully Diluted

Founder Shares (Myles Bartholomew) 5,833,333 44% 22%

Investment Round 1: $0.15/share in 2009/2010 1,666,667 13% 6%

Investment Round 2: $0.30/share in 2013 4,167,333 31% 16%

RTO Shell: (combine shell and Greenberg debt conversion shares) 1,755,067 13% 7%

Basic Shares Issued and Outstanding: 13,422,400 100%

Employee Options 1,385,000 5%

Investor Warrants ($0.30/share, 2 year term) 4,167,333 16%

Purchase Warrants ($0.65/share, 1 year term) 5,833,667 22%

Other Warrants ($0.30/share, 2 year term) 1,853,400 7%

Fully Diluted 26,661,800 100%

Investment Summary

• Digital marketing segment growing at 41% adding $11B in 2014

• Significant growth strategy

• SPO raised $1.25M, warrants to contribute $5.6M, RTO and trading on CSE

• SPO offers Social Sponsorship supported by the Social Currency

• Revenue from transaction fees, creative services, acquisitions

• Signing industry players to Advisory Team

• Recruiting channel partners to access Influencers

• Brands and Influencers are creating the Social Economy – SponsorsOne is the Engine

• Top performing management team with deep industry experience

Latest News

Mar. 5, 2014: Iconic Brand Builder Ricardo Camargo joins Advisory Team

Feb. 27, 2014: Jonathan Leong joins as CFO

Feb. 12, 2014: Music Mogul Lord Seb Webber joins SponsorsOne Advisory Team

Jan. 31, 2014: SponsorsOne announces initial agreement to acquire NFU

Jan. 30, 2014: SponsorsOne announces Warren Noronha to the Advisory Team

Jan. 8, 2014: InfoPet renamed SponsorsOne, trading under symbol CSE:SPO

Jan. 3, 2014: SponsorsOne announces Seth Brouwers as Chief Operating Officer

Dec. 17, 2013: MXM Nation completes RTO with InfoPet

Dec. 1, 2013: MXM completed $1.2M private equity financing

Gary Bartholomew, Exec. Chairman Jay Bedard, Investor [email protected] [email protected]: 647.400.6927 T: 647.202.1648

THE ENGINE OF THE SOCIAL ECONOMY

sponsorsone investor deck

Business

sponsorship company

material information

securities commission

entire investment

investment decision

particular investment

certain risks

similar authority