Company Presentation August 2021
Total Page:16
File Type:pdf, Size:1020Kb
Company Presentation August 2021 + + + www.freshlocalsolutions.com Copyright © 2021. Freshlocal Solutions. Private & Confidential. All Rights Reserved 8/11/2021 1 Disclaimer and Forward-Looking Information Disclaimer This Presentation has been prepared by Freshlocal Solutions Inc. (“Freshlocal” or the “Company”, “we”, “us” or “our”) for information purposes only and is not intended to form the basis of any investment decision. It does not constitute an offer or invitation for the sale or purchase of any securities, businesses and/or assets or any recommendation or commitment by Freshlocal or any other person and neither this presentation, nor its contents nor any other written or oral information made available in connection with this presentation shall form the basis of any agreement or transaction. This Presentation does not purport to be comprehensive or to contain all the information that a recipient may need relating to Freshlocal. No representation or warranty, express or implied, is given and, so far as is permitted by law and no responsibility or liability is accepted by any person, with respect to the accuracy or completeness of the presentation or its contents or any oral or written communication in connection with the Presentation. In particular, but without limitation, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets or estimates contained in this presentation. Estimates, projections, targets, statistics and opinions contained in this Presentation are based on information available to Freshlocal. All estimates, statistics and opinions by their nature are based on a number of assumptions which may not prove to be correct and are inherently subjective. In addition, past performance may not be repeated or indicative of future performance which may be affected by a number of factors, including without limitation, the risk factors identified herein. This Presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale or distribution of these securities in any jurisdiction in which such offer, solicitation, sale or distribution would be unlawful. The securities of Freshlocal have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under applicable state securities laws and, accordingly, the securities of Freshlocal may not be offered, sold, pledged or transferred, directly or indirectly in, into or within the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. This Presentation shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. NOTHING DESCRIBED IN THIS PRESENTATION NOR THE SECURITIES OF FRESHLOCAL HAVE BEEN RECOMMENDED, APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR BY THE SECURITIES REGULATORY AUTHORITY OF ANY STATE, PROVINCE ANY OTHER JURISDICTION, NOR HAS ANY SUCH SECURITIES REGULATORY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF ANY PROPOSED OFFER OF SECURITIES OR THE ACCURACY OR ADEQUACY OF THIS PRESENTATION. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. Except where otherwise indicated, the information contained in this Presentation speaks as of the date hereof or as of the date at which such information is expressed to be stated, as applicable. In giving this confidential company presentation, Freshlocal does not undertake and disavows any obligation to provide any additional information or to update this Presentation or any additional information or to correct any inaccuracies which may become apparent, except as required pursuant to applicable securities legislation. Forward-Looking Information Certain statements in this Presentation are forward-looking statements under applicable securities laws, including statements as to future events, results and plans. Particularly, the growth and financial projections in this Presentation are forward-looking statements. Forward-looking statements are sometimes but not always identified by such words as “targeted”, “can”, “will”, “anticipates”, “projects”, expects”, “intends”, “likely”, “plans”, “should”, “could” or “may” or grammatical variations thereof. These forward-looking statements reflect Freshlocal’s current beliefs and are based on information currently available to Freshlocal and assumptions Freshlocal believes are reasonable. Actual results and developments may differ materially from results and developments discussed in the forward-looking statements as they are subject to a number of significant risks and uncertainties, including but not limited to: dependence on market growth; difficulties implementing and successfully executing its business and marketing for a software as a service model; changes in general economic conditions; failure to achieve expected revenue growth; changes in operating expenses; changes in legal or regulatory requirements; competitive pressures, including the introduction of competing technologies and competitors with greater financial resources; failure to anticipate and react quickly to changes in technology or in industry standards; changes in customer and market requirements and standards; Freshlocal may never achieve profitability; Freshlocal may require additional capital and investors may be diluted; a market for trading insecurities of Freshlocal may never develop; international business relationships and foreign currency exchange rates; cybersecurity risks; failure to recruit and retain key technical sales, marketing and management personnel; infringement of intellectual property or enforcement of Freshlocal’s intellectual property; and all the risks described under “Risk Factors” in the Company’s listing statement dated April 9, 2021, a copy of which is available on SEDAR at www.sedar.com. Certain of these risks and uncertainties are beyond the Company’s control. Consequently, all forward-looking statements are qualified by these cautionary statements, and there can be no assurances that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences or benefits to, or effect on, Freshlocal. Freshlocal undertakes no obligation to revise or update any forward-looking statements for any reason, except as required pursuant to applicable securities legislation. Market and Industry Data Market data and industry forecasts contained herein have been obtained from industry publications, various publicly available sources and subscription-based reports as well as from management’s good faith estimates, which are derived from management’s knowledge of the industry and independent sources that management believes to be reliable. Industry publications, publicly-available sources and subscription-based reports generally state that the information contained therein has been obtained from sources believed to be reliable. We have not independently verified any of the information from such third-party sources nor have we ascertained the validity or accuracy of the underlying economic assumptions relied upon therein. We hereby disclaim any responsibility or liability whatsoever in respect of any third-party sources of market and industry data or information. Non-IFRS Measures This presentation makes reference to non-IFRS measures, including “Gross Margin”, “Gross Profit”, “Annual Recurring Revenue (ARR)” and “Compound Annual Growth Rate (CAGR)”. This presentation also makes reference to “Active Customers”, “Average Order Size”, “Cost per Order”, “Delivery Accuracy”, “Inventory Turns”, and “Shrink”, which are financial and operating metrics used in our industry. These non-IFRS measures and industry metrics are not recognized under International Financial Reporting Standards (“IFRS”) and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide readers 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 market participants frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. Please refer to Appendix A of this Presentation for the definitions of the foregoing non-IFRS measures. Currency Unless otherwise noted, all references to “$” or “Dollars” are to Canadian Dollars. + + + Legal Copyright © 2021. Freshlocal Solutions. Private & Confidential. All Rights Reserved 8/11/2021 2 Our Mission Our Vision Using innovation and technology to reduce Building the leading global eGrocery environmental impact while creating a