AI assistant
CODEIFAI LIMITED — AGM Information 2018
May 30, 2018
64630_rns_2018-05-30_ae3628e8-406a-4f8e-917e-bd2f827e9ce0.pdf
AGM Information
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Rebuilt Revitalised Results Read , , y 31May 2018 Annual General Meeting Protect. Detect. Connect.
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Disclaimer
The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in, or related to YPB Group Limited (Company) including in tokens issued by a subsidiary. In preparing this presentation, the Company did not take into account the investment objectives, financial situation and particular needs of any particular investor.
Further advice should be obtained from a professional investment adviser before taking any action on any information dealt with in the presentation. Those acting upon any information without advice do so entirely at their own risk.
This presentation does not constitute an offer or invitation to purchase securities in the Company. Recipients of this presentation who intend to consider investing are reminded no reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or oral statement, or on the completeness, accuracy or fairness of that information or those opinions.
Whilst this presentation is based on information from sources which are considered reliable, no representation or warranty, express or implied, is made or given by or on behalf of the Company, any of its directors, or any other person about the accuracy, completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for that information or those opinions or for any errors, omissions, misstatements (negligent or otherwise) or for any communication written or otherwise, contained or referred to in this presentation. Accordingly, neither the Company nor any of its directors, officers, employees, advisers, associated persons or subsidiary undertakings are liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon any statement in, or as a result of any admission in, this presentation or any document supplied with this presentation, or by any future communications in connection with those documents and all of those liabilities, losses and damages are expressly disclaimed.
Any opinions expressed reflect the Company’s position at the date of this presentation and are subject to change. No assurance is given by the Company that any capital raising or debt financing referred to in this presentation will proceed.
All amounts are in Australian dollars unless otherwise stated.
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Rebuilt, Revitalised, Results Ready
● Opportunity amplifying - Counterfeit intensifying ● Major restructure and rebuild 2017 & H1 2018 ● Revitalised - results visible H2 2018 ● Tech suite progressive, potent, pertinent ● Motif Micro revolutionary tech, extravagant possibilities ● Token Sale Event potentially highly value creating
US$4.2 trillion p.a. cost by 2022
5.4 million jobs at risk p.a. 1million patient deaths p.a. from fake pills 750,000 needless malaria deaths p.a. from fake pills 6 deaths from 54,000 babies hospitalised,
fake food China 2008
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Review, renew, refocus – 2017, H1 2018
● Executive Chair in, CEO out ● Complete 40% cost cut - $4.5m annualised - no capability loss ● Tighten focus - Australia - South-East Asia - South Asia -China ● Remove non-performing senior management ● Re-empower good management ● Fill key personnel gaps ● Adjust offer and strategies to shorten sales cycles, expand addressable market ● Review and stabilise technology base and roadmap ● Revive neglected partner and client relationships ● Enhance market access with valuable new partnerships ● Increase sales staff (within cost cap, low base pay-high performance reward) ● Complete Motif Micro acquisition
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Delay transitioning to Delivery
Delay ● Technology ○ Connect major bug fixes ● Customers
○ Bureaucratic decision processes ○ Specific extraneous factors ○ Early adopter reluctance ○ Awaiting phone readable forensic quality ● Management ○ Weak, unfocussed strategy ○ Poor prioritisation ○ Poor hires ● Sales ○ Under resourced, under skilled ○ Solutions too bespoke
Delivery H2 2018
● Technology ○ Connect now quick sell, deploy ● Customers ○ Processes progressing ○ Extraneous issues resolving ○ Wider recognition of need for protection ○ Forensic phone readable Q3 2018 ● Management ○ Revitalised ○ Focussed ○ Quality new key personnel ● Sales ○ Strong sales hires AUS, CHN ○ Greater standardisation, agility of offer
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Revenue growth the path to profitability
Revenue impacting developments
Revenue sources
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Sales power, strategies, prioritisation
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● New channels
Pipeline conversion
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○ $131m annualised (revised, active) CHN
○ Alihealth CHN – opening doors ○ AusMade AUS – 1700 users, >20k products ○ Orora re-engagement
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○ AliHealth + ProtectCode AUS
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● New products
New channels New products
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○ ProtectCode
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○ Unique, nextgen Retail Anti-Theft product ○ “Productised”, self-serve solutions ○ Nextgen Vital Gov Document foil
Present clients
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More solutions, volume growth
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Motif Micro
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● Explosion of QR Code based e-commerce CHN ● ANZ export push into high risk markets ● Motif Micro ownership
Licence – industries, geographies Multiple opportunities progressing
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Dominates e-commerce in China - mobile payments No barrier to counterfeit - code can simply be copied or replaced Hackers replace legitimate codes with malevolent codes to gain access to consumer data and bank accounts Over 23% of Trojans and viruses are transmitted via QR codes Opens the gateway - unsecured physical entry point to the digital database
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Revolutionary – first forensic protection for mass market via smartphone readable, highest protection, anticounterfeit mark Combines best of physical and digital anti-counterfeit technologies Based on Motif Micro IP Gen 1 QR – unique phosphor – Q3 2018 Gen 2 QR or Motif Micro using MM novel nanoparticles – H1 2019
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The ProtectCode App
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- Motif Micro – Mass Market Anti-Counterfeit Revolution YPB’s Jewel in the Crown
● Potential to create extravagant value for YPB ● Technical generational leap but with high commercial appeal
● Ultralow cost particles, applicable throughout consumer goods ● Readable by unmodified smartphone for mass market, public authentication ● Compatible with high-speed volume printing for low cost implementation ● Secured by physical randomness and immune from 'picture-of-a-picture' spoofing techniques ● Capable of item-level serialisation ● Wide interest in licencing
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Serialised microparticle barcode tech developed at MIT
Protected by 3 patents YPB has exclusive global rights Uncloneable Invisible to the human eye Key to YPB’s high security protected gateway to the blockchain
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Microcode ‘lights up’ in multiple colours when excited via source of light (smartphone camera flash) Sequence of colours carries information about the product Directs smartphone to a digital asset or url Enough uniqueness to encode every single product that’s ever been made … and ever will be made
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- Blockchain-secured Digital Protection, Direct Connection
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Motif Micro/ Beacons/wifi/
QR Codes NFC Customer
ProtectCode foot traffic
YPB PROTECTED GATEWAY
Customer Scan Report Confirm Product info Marketing
data enquiry fakes authenticity campaigns
YPB CONNECT
Campaign creation Analytics Customer engagement
BLOCKCHAIN ETHEREUM
YPB BLOCKCHAIN PLATFORM
PLATFORM
Product authentication Token wallet ProtectCode generator
Product authentication Token wallet ProtectCode generator
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- Token Sale Event potentially highly value creating
● Shareholder-friendly alternative funding mechanism ● Initial issue of YPB Tokens in exchange for digital currency Ether (Ethereum) ● YPB will convert Ether to functional currencies (AUD/USD) ● Legal opinion supports legality and compliance of YPB Token and TSE ● Success would create substantial value and likely end future calls on shareholders ● Final decision to proceed with TSE remains subject to regulatory approval
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Ready to Deliver
● Macro tailwinds stronger than ever
● Rebuilt and revitalised ● Results visible H2 2018 ● TSE potentially highly value creating
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Thank you. 31May 2018 Annual General Meeting Protect. Detect. Connect.