LIGHTSPEED POS INC. ANNUAL INFORMATION FORM Fiscal Year ended March 31, 2021 May 20, 2021 ANNUAL INFORMATION FORM LIGHTSPEED POS INC. TABLE OF CONTENTS ANNUAL INFORMATION FORM..................................................................................... 1 EXPLANATORY NOTES.................................................................................................... 2 FORWARD-LOOKING INFORMATION.......................................................................... 3 CORPORATE STRUCTURE............................................................................................... 7 BUSINESS OF LIGHTSPEED............................................................................................. 8 GENERAL DEVELOPMENT OF LIGHTSPEED’S BUSINESS....................................... 22 RISK FACTORS................................................................................................................... 26 DIVIDEND POLICY............................................................................................................ 56 DESCRIPTION OF SHARE CAPITAL............................................................................... 56 MARKET FOR SECURITIES.............................................................................................. 59 DIRECTORS AND EXECUTIVE OFFICERS.................................................................... 59 AUDIT COMMITTEE.......................................................................................................... 62 LEGAL PROCEEDINGS AND REGULATORY ACTIONS............................................. 64 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS.... 64 TRANSFER AGENT AND REGISTRAR........................................................................... 65 MATERIAL CONTRACTS.................................................................................................. 65 INTERESTS OF EXPERTS................................................................................................. 65 ADDITIONAL INFORMATION......................................................................................... 66 EXHIBIT A........................................................................................................................... A1 1 EXPLANATORY NOTES As used in this Annual Information Form (“AIF”), unless the context indicates or requires otherwise, all references to the “Company”, “Lightspeed”, “we”, “us” or “our” refer to Lightspeed POS Inc. together with our subsidiaries, on a consolidated basis. Furthermore, as used in this AIF, unless the context indicates or requires otherwise, the following terms have the following meanings: “Audit Committee” means the audit committee of the Board; “CBCA” means the Canada Business Corporations Act, as amended from time to time; “CNG Committee” means the compensation, nominating and governance committee of the Board; “COVID-19 Pandemic” means the COVID-19 pandemic declared by the World Health organization on March 11, 2020; “Fiscal 2019” means the fiscal year ending March 31, 2019; “Fiscal 2020” means the fiscal year ending March 31, 2020; "Fiscal 2021" means the fiscal year ending March 31, 2021; "NYSE" means the New York Stock Exchange; “NI 52-109” means National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings, as amended from time to time; “NI 52-110” means National Instrument 52-110 – Audit Committees, as amended from time to time; “POS” means point of sale; “Risk Committee” means the risk committee of the Board; “SaaS” means software-as-a-service; “SMBs” means small- and medium-sized businesses; and “TSX” means the Toronto Stock Exchange. This AIF is dated May 20, 2021, which is the date it was approved by the board of directors of the Company (the “Board”), and, unless specifically stated otherwise, all information disclosed in this AIF is provided as at March 31, 2021, the end of Lightspeed’s most recently completed fiscal year. This AIF should be read in conjunction with the Company’s audited consolidated financial statements and notes for Fiscal 2021 and Management’s Discussion and Analysis for Fiscal 2021, but which, for greater certainty, are not incorporated by reference herein. Trademarks and Trade Names This AIF includes certain trademarks, such as “Lightspeed”, “Flame Design”, “Kounta”, “Gastrofix”, "ShopKeep", "Upserve" and "Vend" which are protected under applicable intellectual property laws and are our property. Solely for convenience, our trademarks and trade names referred to in this AIF may appear without the ® or ™ symbol, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and trade names. Presentation of Financial Information and Other Information We present our consolidated financial statements in U.S. dollars. All references in this AIF to dollars, “$” or “US$” are to United States dollars and all references to Canadian dollars and “C$” are to Canadian dollars. Amounts are stated in U.S. dollars unless otherwise indicated. Key Performance Indicators This AIF makes reference to “Average Revenue Per User” or “ARPU”, “Customer Locations” and “Gross Transaction Volume” or “GTV”, which are key performance indicators we monitor to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. These key performance indicators are also used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use industry metrics in the evaluation of issuers. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies. “Average Revenue Per User” or “ARPU” represents the total subscription revenue and transaction-based revenue of the Company in the period divided by the number of Customer Locations of the Company in the period. 2 “Customer Location” means a billing customer location for which the term of services have not ended, or with which we are negotiating a renewal contract. A single unique customer can have multiple Customer Locations including physical and eCommerce sites. We believe that our ability to increase the number of Customer Locations served by our platforms is an indicator of our success in terms of market penetration and growth of our business. We have successfully demonstrated a history of growing both the number of our Customer Locations and GTV per Customer Location through the increased use of our platforms. “Gross Transaction Volume” or “GTV” means the total dollar value of transactions processed through our cloud-based software-as-a-service platforms in the period, net of refunds, inclusive of shipping and handling, duty and value-added taxes. We believe GTV is an indicator of the success of our customers and the strength of our platforms. GTV does not represent revenue earned by us. See “Key Performance Indicators” from Management’s Discussion and Analysis of Financial Condition and Results of Operations for Fiscal 2021. Exchange Rate Data The following table sets out the high and low rates of exchange for one U.S. dollar expressed in Canadian dollars during each of the periods specified, the average rate of exchange for those periods and the rate of exchange in effect at the end of each of those periods, each based on the rate of exchange published by the Bank of Canada for conversion of U.S. dollars into Canadian dollars. Fiscal Year Ended March 31, 2021 2020 (C$) (C$) Highest rate during the period.................................................................................... 1.4217 1.4496 Lowest rate during the period..................................................................................... 1.2455 1.2970 Average rate for the period......................................................................................... 1.3219 1.3308 Rate at the end of the period....................................................................................... 1.2575 1.4187 FORWARD-LOOKING INFORMATION This AIF contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward looking information may relate to our financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate and the impact thereon of the ongoing COVID-19 Pandemic as well as statements relating to expectations regarding industry trends, our growth rates, the achievement of advances in and expansion of our platforms, expectations regarding our revenue and the revenue generation potential of our payment-related and other solutions, expected acquisition outcomes and synergies, our business plans and strategies and our competitive position in our industry is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology