CREATIVE REALITIES, INC. LD Micro 20th Annual Main Event Conference

Hi, folks. Welcome. I'll try and make this quick and interactive, and I will bug you for questions throughout the presentation. Please do not hesitate to interrupt. Standard disclaimer page, non-GAAP and EBITDA information. You're all familiar with the do's and don'ts. Okay. Who we are and what we do. We're Creative Realities. Okay? We provide digital signage and media solutions to enterprise customers across a bunch of different industries. Okay? If you look on the right side, it shows the industries served. That would be customers in retail, C-store, automotive, lottery, stadium entertainment, et cetera. Okay? We generate revenue through SaaS. We are primarily a SaaS company. We do sell support services, media, ad sales, and hardware sales. So really a combination. Our business model is pretty simple. It all starts with a screen. Everybody in this room has seen our screens somewhere.

Anybody in the room ever been to a Dairy Queen? Got it. Anybody here ever been to a 7-Eleven? Got it. Anybody here ever been in a Macy's? Got it. So those give you an example of customers. We put the screen on the wall that is attached to our software in the cloud, generating monthly SaaS revenue for the use of that software. We literally can put them in any building anywhere in the world. It does not matter. Indoor, outdoor, you name it. At the end of the day, why do customers do that? Why do they put up screens? Well, they want a better customer experience. Maybe they want to generate more revenue, et cetera. So that's really our business model. Our sources of revenue really come from four areas. The recurring SaaS, as we talked about.

The second is services that customers need to make those screens function and operate. So that may be design engineering, a lot of content work on those screens, et cetera. The third revenue area for us is media or ad tech. Customers have figured out today, "I can make that screen actually generate revenue." Okay? So customers are using those screens to generate revenue. The fourth revenue bucket for us is we do sell the hardware to the customer. The end user owns the hardware. We typically do not own the hardware. Our ICP, the ideal customer profile, you see the types. Typically, we don't talk to a customer unless they have about 500 locations or 500 screens, or have the capability for 500 screens. I founded this company in 2010. We've done a couple acquisitions over the years, really building the platform.

We built the foundation, then building the platform. A year ago in November, we acquired a competitor, and we call that expanding the platform. So combination of organic growth and also acquisition growth. Senior executive team, there are really five folks. George Sautter's with me here in the front. George is our Chief Strategy Officer. Jackie Walker, Chief Experience Officer. She came to us from Publicis Sapient. Publicis Sapient is part of one of the largest ad agencies in the world. She ran their global digital signage program, and she came to work with us. Tamra, CFO, and Dan McAllister is our Chief Revenue Officer. Okay. What's our market position? Where are we? Well, there's a company called invidis that does research on our industry, and they would tell you based upon this that we're number nine globally in the number of screens that we power.

Well, we will talk about that in a minute. Number one, we are a top 10 digital signage software in the world. Number two, we are number one in the U.S. in the quick serve restaurant. Think of customers like Dairy Queen, Freddy's, every Culver's, every Zaxby's, et cetera. We power all those screens in all those restaurants. We are a leading provider in the stadium and arena market. So 20% of every NFL stadium, NBA stadium, and NFL and MLB stadium and soccer stadium is powered by software solutions of ours. Anybody here a Dallas Cowboys fan? Okay, no Cowboys fans. That is a typical building for us. We power 3,300 screens throughout that entire building. Significant player in retail, C-store, grocery, and lottery. We do also own our own retail media network in Canada, and we will talk a little bit more about that.

We have our complete ad stack, so we own our own software. There is no single competitor across our CRI verticals that matches us in size and scope. We talked about the market position. invidis had us at what they thought was number nine. We would tell you based upon our market research, we are number five globally. When I say globally, that is outside of China and Russia. Nobody knows what goes on in those two countries. Globally, we believe we are number five in the number of screens that we power. Okay? These are some of the customers. So every Dairy Queen in America, every Panera, Shake Shack, A&W is all of Canada, every Tim Hortons in Canada, 7-Eleven. A lot of people do not think of 7-Eleven as serving food. That is a major area for 7-Eleven.

To give you an idea of our scale with a company like 7-Eleven, they have been a customer for seven years. Every business day in America, 260 days a year, I install one to three new 7-Elevens every day. I started seven years ago. I have got 14 more years to go before I complete 7-Eleven. So that gives you the idea of our scale. We are here today to announce two new customers. We signed Zaxby's, 1,200 locations all across America, and in 30 days, we converted every Zaxby's over to our software. That was complete a week and a half ago. We are also here to announce Qdoba and all their locations in the United States, and we will have converted Qdoba by November. Thanksgiving, I am sorry, end of November. But again, you see the brands. 7 Brew, fastest growing coffee chain in America.

You see the bright screens out in front of 7 Brew. All that is provided by us, runs on our software. Retail. Every Best Buy in America. Anybody buy a TV at Best Buy? Okay. We power the TV wall, 70,000 screens in every Best Buy. Best Buy has been a customer for 20 years. Verizon, 18 years. We power approximately 36,000 screens throughout every Verizon in America. Two of the largest banks in Canada, two of the top 10 in North America, Scotiabank and RBC. Every Macy's, Walmart Canada, every Toyota, Lexus dealership in Canada. You guys get the message. We do not deal with mom and pop. These are enterprise, blue-chip grade customers that we have had for many, many years. Stadium and arena, pick your favorite team. Tennessee Titans, our team is on site today. We are finishing the Tennessee Titans Stadium. That is a typical project for us.

That's about an $8 million project, 1,700 screens going into the Tennessee Titans Stadium. We will commission that stadium and bring all that tech live probably in January of 2027. We talked about owning a retail media network in Canada. This is Canada's largest mall network. We have screens installed in 95 of the top 100 malls throughout Canada, and these are everywhere from 65-inch screens to 20-foot LEDs across the inside of the mall. That generates about 28 million USD in ad revenue, is what we generate off those screens. So we participate not only in the SaaS. In this case, we own this particular network. We have ad revenue, we have creative revenue, et cetera. That's just a picture of some of our screens. The smaller screens are 652 screens. That's actually out of date. We're probably over 800 screens now. A picture of a Verizon store.

Picture of Black Rifle Coffee. We redid their menu board. They saw a 1,070% increase in their best-selling cup of coffee. The ROI for that menu going in at Black Rifle Coffee was less than two weeks. It paid for itself. Chanel, we do every Chanel store in America, 31 boutiques, 156, give or take, Chanel store in store. 7-Eleven. That's a 7-Eleven that just happened to have two food concepts, because 7-Eleven's big in the food business. Our tech. We own our own software. Clarity, the first box on the left over there, that's our CMS software, purpose-built for food. Then we have ReflectView, which runs all of our screens in retail. So that is the software package that runs everything in Macy's, all the banks, et cetera. We have AdLogic. AdLogic is an ad server that serves up advertising.

For those of you who follow us know we announced about five months ago, four months ago, we had won Albertsons, a small grocery store chain with 2,200 stores throughout the U.S. We are installing 15 screens in every Albertsons. It's a $50 million-plus project. We are currently at 500 stores today. So it's over 5,000 screens. It's closer to 6,000 screens. They are using our ad tech software, AdLogic. We are delivering over 1 million ads a day inside of Albertsons stores. So they license not only our CMS, ReflectView, but they also license AdLogic software from us. Retail media networks, which is what we're deploying at Albertsons. It's the fastest-growing part of our business. It's big business. Think of it. If you're a retailer today, somebody like maybe Walmart. Walmart's monetized its website, clearly. Number two, then Walmart monetized your phone.

Everybody's got the Walmart app, and they've monetized the app. What's the third thing Walmart is monetizing? Foot traffic. The average number of people that go into Walmart every month equals the viewing of the Super Bowl. So if you're advertising in a Walmart, you're reaching a Super Bowl worth of viewers every single month. So every retailer in America is fast following. They all want to build these retail media networks. They want to sell them to advertisers. The store still matters. This is where people really go and shop. You look at the big brands, Costco, Kroger, Lowe's, Home Depot, Walmart, Target. But look at the categories. 83% of all U.S. purchases still happen in the physical store. Food and beverage. There's a reason we run the retail media network in Albertsons. Auto and parts. There's a reason that our software runs every dealership for Toyota, Lexus in Canada.

We also run every Stellantis dealership in Canada. Home improvement. Lowe's and Home Depot are still trying to figure out retail media networks, but we believe ultimately we will compete for those to be customers. This gives you the idea of the reach. Look at Walmart. The Super Bowl attracts 115 million viewers. You spend 30 seconds, or it's a 30-second ad, you spend $7.5 million. It's probably more now. Yet you got the same amount of viewership in a Walmart on a monthly basis. You see Target, Kroger, Costco, all of them are trying to build out a retail media network. The spend in retail media is huge. That's why all of our customers, we're engaged in discussions with many of them about deploying a retail media network.

The industry's reached a consensus, if you will. Now, I know some of that print is very, very small. I can't even read it on this small screen. But physical retail is no longer just a point of sale. It's becoming a dynamic media channel, valued not just for sales, but for its ability to deliver measurable impressions. The day of the retail media network is here. I can tell you this, nobody walked in their office or store today and said, "Take down that screen and put up a poster." That didn't happen. But I tell you what did happen today. Somebody walked in their store, or their environment, or their office and they said, "Take down the poster and put up a screen." Over 2 million screens are added every year.