Kits Eyecare Ltd. — Investor Presentation 2021

Jan 12, 2021

==> picture [920 x 193] intentionally omitted <==

MANAGEMENT PRESENTATION JANUARY 12, 2021

DISCLAIMER:

A final prospectus (the “Prospectus”) containing important information relating to the securities being offered by KITS Eyecare Ltd. (the “Company” or “KITS”) has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the Prospectus, and any amendment, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the Prospectus and any amendment for disclosure of those facts, especially risk factors relating to the Company and the securities offered, before making an investment decision.

The information contained in this presentation does not purport to be all inclusive or to contain all information that a prospective investor may require. Prospective investors are encouraged to conduct their own analyses and reviews of the Company and of the information contained in this presentation. Without limitation, prospective investors should consider the advice of their financial, legal, accounting, tax and other advisors and such other factors that they consider appropriate in investigating and analyzing the Company. An investment in the securities of the Company is speculative and involves a high degree of risk and should only be made by persons who can afford the total loss of their investment. Prospective investors should consider certain risk factors in connection with an investment in the Company.

This presentation is qualified in its entirety by reference to, and must be read in conjunction with, the information contained in the prospectus. A prospective investor is not entitled to rely on parts of the information contained in this presentation to the exclusion of others. An investor should rely only on the information contained in the prospectus. The Company has not, and Canaccord Genuity Corp. (the “Agent”) has not, authorized anyone to provide investors with additional or different information. If anyone provides an investor with additional or different or inconsistent information, including statements in media articles about the Company, the investor should not rely on it. Any graphs, tables or other information demonstrating our historical performance contained in the Prospectus or this presentation are intended only to illustrate past performance and are not necessarily indicative of our future performance. The information contained in this presentation is accurate only as of the date of this presentation or the date indicated, regardless of the time of delivery of the Prospectus or of any sale of the common shares.

KITS and the Agent are not offering to sell securities of the Company in any jurisdiction where the offer or sale of such securities is not permitted. For prospective purchasers outside Canada, neither we nor the Agent have done anything that would permit this offering or possession or distribution of the prospectus in any jurisdiction where action for that purpose is required, other than in Canada. Prospective investors are required to inform themselves about, and to observe any restrictions relating to, this offering and the possession or distribution of the prospectus. This document does not constitute, or form part of, an offer to sell, or a solicitation of an offer to purchase, any securities in the United States of America (including its territories and possessions, any state of the United States of America and the District of Columbia).

There is no market through which the Company’s securities may be sold and purchasers may not be able to resell securities purchased under the prospectus. This may affect the pricing of the securities in the secondary market, the transparency and availability of trading prices, the liquidity of the securities, and the extent of issuer regulation.

External Information

Certain of the information presented herein is based on or derived from statements by third parties, has not been independently verified by or on behalf of the Company, and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or any other information or opinions contained herein, for any purpose whatsoever.

This document and the information herein are the property of the Company. Without the Company’s consent, the information may not be copied or communicated.

Cautionary Statement Regarding Forward-Looking Information

This presentation contains forward-looking information within the meaning of Canadian securities laws. Such forward-looking information includes, but is not limited to:

  - changes in general economic conditions and consumer spending;

  - • optical sales in North America;

• expectations regarding industry trends, overall market growth rates and our

• growth rates and growth strategies;

• expectations regarding our revenue growth, EBITDA margins, gross profit margin and net capital expenditures;

• increased rates of vision conditions such as myopia;

• • consumer demand for optical-related products as a result of wavering consumer trends such as the increased use of display technology;

• our business plans and strategies;

• delivery times of our products;

• expectations regarding net revenue and the seasonality thereof;

production rates and overhead expenses from our optical lab and our fulfillment centres;

• our competitive position in our industry;

• the effect of COVID-19 on accelerating the movement to the KITS model and

customer satisfaction rates and customer LTV (lifetime value); and

• on the consumer likelihood to make online optical purchases;

• the consumer shift to e-commerce as a result of COVID-19;

• FDA and consumer reception towards telemedicine.

• the completion of our site consolidation;

In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “continue” or the negative of these terms or other comparable terminology. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.

Forward-looking statements are necessarily based on our management’s current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Although we believe that the plans, intentions, expectations, assumptions and strategies reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements. Certain assumptions in respect of: the growth of eCommerce business; our ability to drive sales growth; our ability to maintain, enhance, and grow our appeal within our addressable market; our ability to drive ongoing development and innovation of our exclusive brands and product categories; our ability to build our global presence; our ability to maintain and expand distribution capabilities; the impact of competition; the effects of COVID-19 on the global economy and on consumer trends; and the general changes and trends in our industry or the global economy are material factors made in preparing forward-looking information and management’s expectations.

Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements and information. This list is not exhaustive of the factors that may affect any of our forward-looking statements and information. All of the forward-looking information contained in this presentation is expressly qualified by the foregoing cautionary statements. Readers should read this presentation in its entirety and for the reasons set forth above, readers should not attribute undue certainty to or place undue reliance on forward-looking statements and information.

Non-IFRS Measures and E-Commerce Industry Metrics

This presentation makes reference to certain non-IFRS measures and certain industry metrics. These measures are not recognized measures 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. We use non-IFRS measures including “EBITDA”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “Run-Rate Revenue”. This presentation also makes reference to LTV, CAC and AOV (each as defined below), which are commonly used metrics in our industry.

“AOV” is defined as the average order value and is calculated as revenue divided by orders.

“Adjusted EBITDA” is defined as consolidated net income (loss) before depreciation and amortization, finance cost and provision for income taxes, adjusted for the impact of certain items, including non-cash items such as stock-based compensation, unrealized foreign exchange gains or losses and other items we consider non-recurring and not representative of our ongoing operating performance.

“Adjusted EBITDA Margin” is defined as Adjusted EBITDA divided by revenue from the same period.

“CAC” is defined as customer acquisition cost and is calculated as the advertising and marketing expense attributable to new customer acquisition in a period, excluding any discounts offered, divided by the customers acquired during that same period.

“EBITDA” is defined as consolidated net income (loss) before depreciation and amortization, finance cost and provision for income taxes.

“LTV” is defined as the lifetime value of the customer and is calculated as the cumulative revenue over a period of time attributable to a particular cohort divided by the number customers during that period.

“Run-Rate Revenue” is defined as revenue of the Company for the three months ended September 30, 2020, annualized.

==> picture [153 x 33] intentionally omitted <==

2

KITS.COM - MANAGEMENT PRESENTATION

KITS AT A GLANCE:

A CATEGORY DEFINING EYECARE COMPANY

ONCE IN A GENERATION MARKET TIMING MORE THAN 600 K+(1) ACTIVE CUSTOMERS

==> picture [153 x 33] intentionally omitted <==

$50 $81 MILLION MILLION 2019 REV[[(1)]] RUN-RATE REV[[(2)]]

69%(1) REPEAT CUSTOMER REVENUES & GROWING MILLION MILLION SUBSCRIPTION BUSINESS 2019 REV[[(1)]] RUN-RATE REV[[(2)]] UNIQUE GROWTH & POSITIVE EBITDA[(1)(2)]

3

(1) Fiscal 2019 pro forma for the acquisition of KITS.com Technologies Inc. on April 5, 2019. See “Selected Pro Forma and Consolidated Financial Information and Other Data” in prospectus. (2) Refer to disclaimer page for non-IFRS measure disclosures

KITS.COM - MANAGEMENT PRESENTATION

==> picture [870 x 130] intentionally omitted <==

----- Start of picture text -----

A TOTAL EYECARE SYSTEM:
US$35 BILLION DOLLAR CATEGORY [(1)]
----- End of picture text -----

==> picture [153 x 33] intentionally omitted <==

(1) Source: Euromonitor International Limited, Personal Accessories 2021 edition, published June 2020, includes the initial impact of COVID. Excludes vision exams.

KITS BUSINESS OVERVIEW:

1

Our team has a proven track record of executing in the eyecare, technology and consumer industries.

We are positioned to lead a well-timed disruption with our branded and KITS label offerings, focused on delivering what 2 customers want at incredible values.

We operate in one of the last multi-billion dollar categories 3 dominated by small independent shops that is ripe for technological disruption. Our business model is focused on customer retention, 4 delivering predictable and repeatable long-term subscription revenue and converting contact users to also buy glasses. Low CAC & high retention rate. $40 CAC, $600 5 year repeat customer LTV 5 and 69% repeat business.[(1)]

==> picture [153 x 33] intentionally omitted <==

(1) Refer to disclaimer page for definition e-commerce industry metrics. CAC calculated as KITS consolidated 2019 total marketing spend divided by new customers in the period. LTV rate refers to 5-year total LTV for 2015 cohort. Repeat business figure based on KITS consolidated revenue for Fiscal 2019 pro forma for the acquisition of KITS.com Technologies Inc. on April 5, 2019. See “Selected Pro Forma and Consolidated Financial Information and Other Data” in prospectus.

5

KITS.COM - MANAGEMENT PRESENTATION

OUR MANAGEMENT TEAM:

Led by a visionary team with proven track records of success in eyecare, technology, and consumer industries.

==> picture [190 x 192] intentionally omitted <==

==> picture [193 x 192] intentionally omitted <==

==> picture [843 x 547] intentionally omitted <==

----- Start of picture text -----

ROGER HARDY SABRINA LIAK
CEO CFO
ARSHIL ABDULLA ROB LONG
CTO CMO
----- End of picture text -----

==> picture [196 x 196] intentionally omitted <==

==> picture [193 x 192] intentionally omitted <==

JOSEPH THOMPSON COO ROBERT TURNBULL VP Lab Operations

==> picture [235 x 70] intentionally omitted <==

==> picture [153 x 33] intentionally omitted <==

6

KITS.COM - MANAGEMENT PRESENTATION

KITS INDEPENDENT BOARD OF DIRECTORS:

==> picture [201 x 208] intentionally omitted <==

==> picture [201 x 208] intentionally omitted <==

==> picture [201 x 208] intentionally omitted <==

==> picture [201 x 208] intentionally omitted <==

Ted Goldthorpe Lead Director

Anne Kavanagh Director

Peter Lee Director

Nick Bozikis Director

Ted is the Managing Partner in charge of Global Credit for BC Partners Lending Corporation since 2017. Previously, Ted served as the President and Chief Investment Officer of Apollo Investment Management. Prior to Apollo, Ted worked at Goldman Sachs for 13 years where he most recently ran the bank loan distressed investing desk.

==> picture [227 x 172] intentionally omitted <==

Anne is currently the Managing Member of Kavanagh Consulting LLC, a strategic advisory business based in New York. Previously, Anne spent 20 years on Wall Street and served as the Head of Healthcare Investment Banking at Paine Webber and President and CEO of NatWest Securities.

==> picture [201 x 172] intentionally omitted <==

Peter was the CEO of Lensway, one of Europe’s largest online eyewear companies. Previously, Peter spent over 20 years leading and implementing various transformation initiatives at large companies such as Oracle and Netflix, as well as smaller, growth focused companies.

==> picture [242 x 172] intentionally omitted <==

Nick currently serves as the CFO of Article. com, an online retailer of home furnishings. Previously, Nick served as the CFO of Coastal and held several other executive finance roles in Lush Handmade Cosmetics and Shoes.com Technologies Inc. Nick is a CPA.

==> picture [242 x 172] intentionally omitted <==

==> picture [153 x 33] intentionally omitted <==

7

KITS.COM - MANAGEMENT PRESENTATION

[In accordance with Section 13.7(4) of National Instrument 41-101 – General Prospectus Requirements, all the information relating to KITS’ comparables and any disclosure relating to the comparables, which is contained in the presentation to be provided to potential investors, has been removed from this template version for purposes of its filing on SEDAR]

+1,145% RETURN WITH SALE TO:

Adding glasses was an inflection point

==> picture [306 x 72] intentionally omitted <==

in Coastal’s growth and value

==> picture [511 x 106] intentionally omitted <==

Revenue in C$ Millions[ (3)]

has grown rapidly while generating positive EBITDA.

4 YEARS

5 YEARS

The addition of glasses is anticipated to be an inflection point in the company’s continued evolution and growth.

$81

1 YEAR

$50

==> picture [743 x 39] intentionally omitted <==

Source: Coastal annual reports

(1) Fiscal 2019 pro forma for the acquisition of KITS.com Technologies Inc. on April 5, 2019. See “Selected Pro Forma and Consolidated Financial Information and Other Data” in prospectus. (2) Refer to disclaimer page for non-IFRS measure disclosures

==> picture [153 x 33] intentionally omitted <==

(3)

The Coastal Contacts comparable is considered appropriate as it was a publicly traded company in the on-line eyecare industry. This information has been obtained from public sources and has not been verified by Kits or the agents. A potential investor should not place undue reliance on this comparable when making an investment decision and it should not be the sole criteria used for making investment decisions. If any comparable information included herein contains a misrepresentation, investors do not have a remedy therefor under securities legislation.

8

KITS.COM - MANAGEMENT PRESENTATION

==> picture [666 x 133] intentionally omitted <==

----- Start of picture text -----

NORTH AMERICAN SHARE
OF ONLINE OPTICAL SALES [(3)]
----- End of picture text -----

==> picture [76 x 19] intentionally omitted <==

----- Start of picture text -----

12.6%
----- End of picture text -----

==> picture [527 x 281] intentionally omitted <==

----- Start of picture text -----

9.4%
3.5%
2009 2019 2020E
----- End of picture text -----

==> picture [153 x 33] intentionally omitted <==

==> picture [1920 x 1080] intentionally omitted <==

----- Start of picture text -----

TWO SIGNIFICANT GROWTH VECTORS:
NET AUTOSHIP SUBSCRIBERS PAIRS OF GLASSES SOLD
~2X GROSS MARGIN VS CONTACTS
13X ANNUALIZED 13,000 100%+
10,000
GROWTH
q-o-q
9,000
8,000
9,750
7,000
6,000
6,500
5,000
4,000
3,250
3,000
2,000
1,000
0
Q1 2020 Q2 2020 Q3 2020 Q1 2020 Q2 2020 Q3 2020
Company Data - as of October 25, 2020
KITS.COM - MANAGEMENT PRESENTATION 10
----- End of picture text -----

==> picture [1062 x 732] intentionally omitted <==

==> picture [153 x 33] intentionally omitted <==

(1) Company data.

BUSINESS OVERVIEW

==> picture [153 x 33] intentionally omitted <==

DELIVERING A CONSUMER EXPERIENCE UNLIKE ANYTHING IN THE CATEGORY:

(51%) - INDEPENDENT OPTICAL RETAILERS (49%) - OTHER PLAYERS

==> picture [90 x 14] intentionally omitted <==

----- Start of picture text -----

COSTCO
----- End of picture text -----

VS. INDEPENDENT OPTICAL RETAILERS

Customer experience advantage with full contact lens + glasses selection at industry leading values 1-2 day production and shipping times for glasses (vs. 2 weeks)

The full convenience of shopping from home VS. OTHER INDUSTRY PLAYERS

Incredible value and quality

Broad selection of third party and owned brands Full collection of online vision tools

==> picture [433 x 369] intentionally omitted <==

----- Start of picture text -----

LENS CRAFTERS
1800 CONTACTS
WARBY
GLASSES USA
AMERICAS BEST
----- End of picture text -----

Vertically integrated to maintain quality, speed and value No legacy overhead from retail locations

==> picture [153 x 33] intentionally omitted <==

13

KITS.COM - MANAGEMENT PRESENTATION

• THE STRENGTH OF THE PLATFORM ENABLES TRANSFORMATION ACROSS THE VISION CATEGORY:

PRODUCTS

==> picture [590 x 472] intentionally omitted <==

Simple & Comprehensive Web Platform CUSTOMERS SEEKING Virtual Glasses Try-on Online Vision Tools QUALITY VALUE STYLE CONVENIENCE DESIGNER BRANDS Vertically Integrated FAST SHIPPING Manufacturing Rapid Fulfillment & Shipping

QUALITY VALUE STYLE CONVENIENCE DESIGNER BRANDS FAST SHIPPING

==> picture [153 x 33] intentionally omitted <==

14

KITS.COM - MANAGEMENT PRESENTATION

• OUR KITS BRAND OFFERS BEAUTIFUL DESIGN AND THE LATEST INNOVATION ALL AT INCREDIBLE VALUES: BEAUTIFUL DESIGNS LATEST INNOVATION INCREDIBLE VALUE ~30%

• LESS[(1)] $11.99

• KITS Daily Silicone Hydrogel Lenses PER BOX US average retail Average cost of price of glasses[[(2)]] KITS branded glasses

• KITS ScreenTime - Blue Light Blocking Lenses

US average retail Average cost of price of glasses[[(2)]] KITS branded glasses

==> picture [153 x 33] intentionally omitted <==

(1) Compared to leading daily modality acuvue product on KITS.com.

(2) Average retail price for a pair of prescription eye glasses without insurance in 2019, based on Vision Service Plan Global.

15

KITS.COM - MANAGEMENT PRESENTATION

OUR “GIGA FACTORY” AND OPTICAL LAB:

• Building One of North America’s Most Automated Optical Labs

• Current capacity 2,000 eyeglass pairs / day

• Scaling our capacity to 10,000 pairs / day

• Fully Automated North American Fulfillment Network • Capable of fulfilling 3,500 contact orders /day

• Capability for next-day delivery across North America • One of the fastest, most efficient optical fulfillment centers

BUILDING THE OPTICAL GIGA FACTORY

==> picture [313 x 144] intentionally omitted <==

==> picture [313 x 144] intentionally omitted <==

==> picture [153 x 33] intentionally omitted <==

==> picture [481 x 541] intentionally omitted <==

==> picture [481 x 541] intentionally omitted <==

==> picture [481 x 540] intentionally omitted <==

==> picture [481 x 540] intentionally omitted <==

CUSTOMER DRIVEN ORGANIC GROWTH:

OVERALL CUSTOMER SATISFACTION RATING OF 94% BASED ON OVER 100K CUSTOMER REVIEWS(3)

WORD OF MOUTH

Social and user generated content COVID ACCELERATION OF ONLINE HEALTHCARE

Innovation is continuing on telemedicine and online vision tools

LOW CAC & HIGH REPEAT RATE $40 CAC, $600 repeat customer LTV and 69% repeat business[(1)(2)]

(1) CAC calculated as KITS consolidated 2019 total marketing spend divided by new customers in the period. LTV rate refers to 5-year total LTV for 2015 cohort. Repeat business figure based on KITS consolidated revenue for Fiscal 2019 pro forma for the acquisition of KITS.com Technologies Inc. on April 5, 2019. See “Selected Pro Forma and Consolidated Financial Information and Other Data” in prospectus.

==> picture [153 x 33] intentionally omitted <==

(2) Refer to disclaimer page for non-IFRS measure disclosures

17

(3) Based on ShopperApproved online customer reviews for OptiContacts.com, September and ContactsExpress.ca, November 9, 2020.

KITS.COM - MANAGEMENT PRESENTATION

1

Take the ONLINE VISION TEST on the KITS website. *Prior prescription is required. Test results and prior prescription are sent to a licensed optometrist or ophthalmologist for review.

(1) 1.5K USES PER MONTH

2 3

==> picture [176 x 70] intentionally omitted <==

==> picture [181 x 60] intentionally omitted <==

==> picture [185 x 75] intentionally omitted <==

==> picture [184 x 50] intentionally omitted <==

==> picture [177 x 46] intentionally omitted <==

==> picture [190 x 45] intentionally omitted <==

Start shopping for glasses and contact lenses to make it easy!

Use our pupillary distance and virtual fitting tools Find the right fit

Proprietary vision tools to enable today’s consumer

(1) 43.5% CONVERSIONS INTO ORDERS

==> picture [153 x 33] intentionally omitted <==

==> picture [499 x 214] intentionally omitted <==

----- Start of picture text -----

30%
19%
13%
18-24 35-44
25-34
----- End of picture text -----

==> picture [498 x 138] intentionally omitted <==

----- Start of picture text -----

16%
13%
9%
45-54 55-65 65+
----- End of picture text -----

==> picture [153 x 33] intentionally omitted <==

FINANCIAL OVERVIEW

==> picture [153 x 33] intentionally omitted <==

KEY FINANCIAL METRICS:	KEY FINANCIAL METRICS:
CAD $000s, Unless otherwise noted. 3 MONTHS ENDED Sept 30, 2020 unaudited	GROWTH YOY (%)	9 MONTHS ENDED Sept 30, 2020 unaudited		GROWTH YOY (%)(a)
Revenue $20,201	68%		$54,934	47%
Gross Proft $5,941	76%		$6,652	71%
Gross Proft (%) 29%			30%
Non-IFRS Measures:(b)
EBITDA $1,056	-22%		$3,751	27%
Adjusted EBITDA $1,718	25%		$4,768	61%
(a) YoY comparison is between the nine-month period ended September 30, 2020 and management’s prepared Unaudited Pro Forma Combined Supplemental Financial Information for the
same comparative period, which gives effect to the acquisition of LD Vision Group Inc. as if it had occurred on January 1, 2019. See “Selected Pro and Other Data” in prospectus.			KITS.COM - MANAGEMENT PRESENTATION Forma and Consolidated Financial Information			21
(b) Refer to disclaimer page for non-IFRS measure disclosures.

==> picture [1920 x 1080] intentionally omitted <==

----- Start of picture text -----

STRONG REVENUE GROWTH Y-O-Y DRIVEN BY NEW
CUSTOMER GROWTH AND RECURRING REVENUES:
QUARTERLY CUSTOMER GROWTH
- -
600,000 +80% Y O Y [(1)]
575,000
+69% Y-O-Y [(1)]
550,000 +8% Y-O-Y [(1)]
525,000
REV BY QUARTER [(2) ] unaudited Q1 2020 $14 MILLION Q2 2020 $20 MILLION +66% [(1)] Q3 2020 $20 MILLION +68% [(1)]
Q1 2019 $12.5 MILLION Q2 2019 $12.2 MILLION Q3 2019 $12 MILLION
Company Data
(1) Represents this quarter’s growth in customers over the same quarter in the prior year.
KITS.COM - MANAGEMENT PRESENTATION 22
(2) Q2 2019, Q3 2019, Q1 2020, Q2 2020, Q3 2020 revenue presented refers to the consolidated revenue results of KITS and Q1 2019 refers to KITS.com Technologies Inc. revenue.
CUSTOMERS
----- End of picture text -----

==> picture [1677 x 835] intentionally omitted <==

----- Start of picture text -----

EXPANDING PRODUCT OFFERING IS DRIVING HIGHER
MARGINS AND AVERAGE ORDER VALUE (AOV):
27%(2)
$81
(1)
~2x
(3)
----- End of picture text -----

==> picture [153 x 33] intentionally omitted <==

(1) Refer to disclaimer page for non-IFRS measure disclosures.

• (2) Fiscal 2019 pro forma for the acquisition of KITS.com Technologies Inc. on April 5, 2019. See “Selected Pro Forma and Consolidated Financial Information and Other Data” in prospectus.

• (3) Management estimate

==> picture [247 x 10] intentionally omitted <==

----- Start of picture text -----

KITS.COM - MANAGEMENT PRESENTATION
----- End of picture text -----

23

KITS UNIT ECONOMICS:	FY 2019 (1)(4)	FY 2019 (1)(4)	LONG TERM (2)(4)
Average Order Value:	$143		$170
Gross Margin	27%		35-40%
Marketing	8%		8%
Fulfllment	7%		5%
SG&A	4%		5%
EBITDA(3)	8%		17-22%
(1) Fiscal 2019 pro forma for the acquisition of KITS.com Technologies Inc. on April 5, 2019. See “Selected Pro Forma and Consolidated Financial Information and Other Data” in prospectus.
(2) Refer to disclaimer page for non-IFRS measure and cautionary statement regarding forward-looking information disclosures. (3)Calculated as gross margin less marketing, fulfllment, and selling, general and administrative expenses rates set forth in the table. (4)All fgures other than AOV refer to a percentage of revenue			KITS.COM - MANAGEMENT PRESENTATION		24

[In accordance with Section 13.7(4) of National Instrument 41-101 – General Prospectus Requirements, all the information relating to KITS’ comparables and any disclosure relating to the comparables, which is contained in the presentation to be provided to potential investors, has been removed from this VALUATION FRAMEWORK: template version for purposes of its filing on SEDAR] 47% 8% Rev. Growth ADJ EBITDA METRICS

==> picture [230 x 69] intentionally omitted <==

----- Start of picture text -----

47% 8%
Rev. Growth ADJ EBITDA
(2020 YTD) (2) (2020 YTD) (2)
----- End of picture text -----

Source: Capital IQ as of 12/08/2020. The comparables above are considered appropriate as they include [publicly traded] companies in the eyecare, consumer subscription or general e-commerce industry. This information has been obtained from public sources and has not been verified by Kits or the agents. A potential investor should not place undue reliance on these comparables when making an investment decision and they should not be the sole criteria used for making investment decisions. If any comparable information included herein contains a misrepresentation, investors do not have a remedy therefor under securities legislation. (1) EV / Growth Adj. Revenue defined as EV / Revenue / Revenue Growth / 100

==> picture [153 x 33] intentionally omitted <==

25

KITS.COM - MANAGEMENT PRESENTATION

• Proprietary platform

• Visionary accomplished team

• Highly scalable operating model

• Recurring revenue

Growth Scale Profit $74 Million Strong 27% gross 50% Year on year revenue growth.[(1)] Revenue 2020E(2) margin & positive EBITDA.[(2)(3)] 80% US / 20% Canada

• Strong tailwinds

==> picture [153 x 33] intentionally omitted <==

• THERE’S SO MUCH MORE TO SEE Thank You!

• NON-IFRS MEASURES RECONCILIATION: EBITDA

==> picture [1624 x 644] intentionally omitted <==

----- Start of picture text -----

unaudited audited
----- End of picture text -----

(a) Year ended December 31, 2019 does not include operating results prior to the acquisition of KITS.com Technologies Inc. on April 5, 2019.

==> picture [153 x 33] intentionally omitted <==

(b) The unaudited pro forma combined year ended December 31 2019 gives effect to the acquisition of KITS.com Technologies Inc. as if it had occurred on January 1, 2019. See “Selected Pro Forma and Consolidated Financial Information and Other Data” in prospectus.

(c) In connection with the acquisition of LD Vision Group Inc. and the filing of this prospectus, the Company incurred expenses related to professional fees, consulting, legal, and accounting that would otherwise not have been incurred and were directly related to these two matters. These fees are not indicative of the Company’s ongoing costs and we expect they will discontinue following the completion of the Offering

28

KITS.COM - MANAGEMENT PRESENTATION

NON-IFRS MEASURES RECONCILIATION: RUN-RATE REVENUE

==> picture [1676 x 572] intentionally omitted <==

----- Start of picture text -----

$20.2
(b)
$81
----- End of picture text -----

==> picture [153 x 33] intentionally omitted <==

Notes: (a) Unaudited

(b) Refer to disclaimer page for non-IFRS measure and cautionary statement regarding forward-looking information disclosures

29

KITS.COM - MANAGEMENT PRESENTATION