AI assistant
CODEIFAI LIMITED — AGM Information 2023
May 30, 2023
64630_rns_2023-05-30_6d8751d7-f227-4234-8131-2f5d15f0b2f2.pdf
AGM Information
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Annual General Meeting 2023
The Future of Authentication & Consumer Engagement
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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 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.
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 US dollars unless otherwise stated.
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.
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Who is YPB?
YPB Group Limited (ASX: YPB) is listed on the Australian Stock Exchange and has developed and sells a suite of physical, digital, and AI-based authentication technologies with a vast range of applications. Our solutions can easily authenticate a myriad of items, such as FMCG (fast-moving consumer goods) products, official identification documents,
pharmaceuticals, nutraceuticals, dairy products, tax stamps, transactions - and even people.
Our Vision:
Real protection for quality brands by bridging the physical to digital divide.
Our Mission:
To make it simple and inexpensive for brands to protect their consumers and engage with them.
Our solutions trigger engagement with consumers in a consented, costeffective, and direct manner. Our proprietary technologies utilise Bluetooth and/or smartphones to capture and analyse invaluable authentication data in our Connect™global dashboard, providing real-time, first-party, and worldwide market intelligence data. This actionable data enables brands to establish digital and direct marketing channels with their customers.
The markets YPB is targeting comprise many billions of items, and this number is growing rapidly, providing YPB with significant growth
opportunities for its authentication and consumer engagement technologies.
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2022 – built strong momentum for 2023 and 2024 despite severe Covid overhang
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Financial performance sub-par but Covid hit all geographies, particularly China
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Cost base ultra-lean and highly functional
- Continued targeted cost cuts in 2022, now down 50% past three years
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Product suite capability and commerciality surged
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Bluetooth connectivity
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All products integrated into Unified Global Dashboard
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Next gen unifAI smartphone app
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MotifMicro in-field testing continues
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Next generation tracers under development
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Marketing and sales upgrade realised immediate results
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Expanded team and skills in Bangkok
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Achieving measurable results and benefits
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Inbound enquiry sharply up, generating strong leads
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Top-notch channel partners developed and expanded
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| YPB has spent 10 years | developing digital & physical IP for authentication | developing digital & physical IP for authentication | developing digital & physical IP for authentication | |
|---|---|---|---|---|
| USPTO Patent for smartphone readability extremely valuable in cementing IP portfolio |
Increased interoperability with packaging lines through new user interface |
Introduce the YPB UnifAI app | ||
| China Patent Granted for smartphone readability | Enhanced AI developed global dashboard | YPB release Signasure™Tracer scanner for billions of applications |
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| Automated data collection for development | Expanded Track & Trace scope (BrandReporter) | |||
| analysis, AI & Machine learning | YPB NanoTracer coming online | |||
| Customisable global counterfeit monitoring system | ||||
| AI-based smartphone model inclusion | Re-launch of YPB Proprietary Visible | |||
| Record live time data via YPB Connect such as first party data, geolocation, time. |
Created in-house content marketing for lead generation |
Tracer Technology YPB licenses further AI technology for |
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| MotfiMicro smartphone coverage from | YPB on the go bluetooth scanner released | enhanced user verification | ||
| Android 9.0 and iPhone X and above | YPB enters USA lottery market |
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Loyal customers with recurring revenues despite Covid hit
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*
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*Applications supplied through partners.
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YPB’s tech was previously sold as discrete products
In 2021 and 2022, we focused on developing a world-class global dashboard that seamlessly integrates our portfolio of technology into one platform, unifying our solutions for enhanced saleability
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2013 YPB
Invisible
Tracer
launched
in market
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2018
Launched
YPB
Connect
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Launched
Trial
Programme
in 2022 for
B2B
applications
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Covert forensic tracer that responds to wavelengths of infrared (IR) light. Traditionally sold in China only
Cloud based platform transforms product packaging into global dashboard for any brand
Smartphone readable authentication technology. Global marketing launch in 2022
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Now five formidable solutions integrated via our revolutionary Unified Global Dashboard: delivering strong gross margins
YPB has unified 5 formidable solutions into our Global Dashboard
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Covert forensic tracer that responds to wavelengths of infrared (IR) light.
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0.5 cents/unit
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Smartphone readable The most versatile track and authentication technology. trace solution for brands. Global marketing launch in 2022.
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1-2 cents/unit
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1- 2 cents/unit
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Consumer engagement and Protect your brand and product authentication consumer with our UnifAI technology that doesn’t require app. an app.
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1-2 cents/unit
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Free
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Capturing highly valuable marketing data via our Unified Global Dashboard: revolutionising the industry
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The Future of Authentication & Consumer Engagement
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Unlock consumer engagement & product authentication without an app.
Versatile track and trace solution for brands.
Combat counterfeiting with covert microparticle technology for inks, plastics, and varnishes.
Smartphone readable authentication technology to prevent your products or documents from counterfeiting.
Protect your brand and consumers with our UnifAI app.
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Serialisation for track & trace, and supply chain monitoring.
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Product authentication to protect consumers from fakes.
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Interactive packaging to capture consented first-party data.
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Protect your consumers from • Completely invisible product potentially harmful products and document security. with product recalls.
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Cannot be copied, spoofed or destroyed. • Customised signature for brands available.
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Serialised QR codes per unit and container for track and trace.
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Product authentication Interactive packaging for consumer engagement.
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Verified by SGS to meet FDA food contact requirements.
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Create and manage customer orders.
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Invisible and read by an unmodified smartphone.
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Can easily be added into ink, varnish, polymers.
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Patent protected.
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Verified by SGS to meet FDA food contact requirements.
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Scan for MotifMico particles on products. • Pair with YPB Scanner via Bluetooth to capture Date Time Location of scan data
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Scan QR codes to check status and data. Add info to inactive codes before activating
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USA lottery ticket entry opens major opportunity
| Market size | YPB's first contract | Process Development |
|---|---|---|
| ●USA instant lotteries market valued | ●YPB Tracer technology to protect | ●Invisible YPB Tracer applied at the |
| at US$39 billion from 2022* | USA pull tab/instant lottery tickets | point of manufacture to winning |
| ●The lottery market in US is | from fraud – 3 Year agreement | tickets |
| estimated to grow at a CAGR of | ●First purchase order received | ●YPB OEM scanner modules fitted to |
| 6.61% between 2022 and 2027* | ●Potential step-change in realizable | self-serve kiosks and concessions |
| ●Similar market size in the EU | value of YPB Tracer technology | that pay out winning tickets |
| ●China operates instant lotteries | ●Innovations extend the scanning of | |
| YPB Tracer from a purely anti- | ||
| counterfeit tool into a valuable | ||
| market intelligence tool | ||
Source: https://www.technavio.com/report/lotterymarket-in-us-industry-analysis *
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Revenue From Existing Products Has Remained Constant Throughout COVID-19
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Revenue (2020-2022)
2020 2021 2022
Revenue Growth since inception
+18%
+226%
YPB
Product
Portfolio
Online 2023
Online 2023
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Serialised ProtectCodes Generated Units
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YPB’s In House Marketing Has Driven Significant Growth in Prospecting Activity
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Posts Posts Posts Web traffic
120 120 120 31K
11K
20 20 20
0 0 0
Followers Followers Followers All traffic to ypbsystems.com
Activity increase of 100%+ Activity increase of 100%+ Activity increase of 100%+ Traffic increase of 95.2%+
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Overhead reduced by 50% over the past three years by consolidating heacount in Thailand
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59 %
less than USA
46 %
less than Aus
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Salaries by country (AUD)
Difference of salaries in USA & Australia compared to Thailand for marketing, technology and finance departments.
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Total Overhead and Employment Expenses 2019-2022
A 52% difference in total overhead & 51% difference in employment expenses from 2019 to 2022
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**Global Anti-Counterfeit Packaging Market to Soar to US$522 Billion by 2030 at a 12% Compound annual growth rate ***
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The Smart Packaging Market is expected to reach US$43.6 billion by 2027 , at a CAGR of 5.2% during the forecast period of 2020 to 2027 ***
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The Global Authentication and Brand Protection market is expected to reach US$4.91 billion by 2027 , at a CAGR of 9.6% during the forecast period of 2022-2027 **
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https://www.meticulousresearch.com/product/smart-packaging-market-5119 *** https://www.marketresearch.com/Daedal-Research-v3440/Global-Authentication-Brand-Protection-Application-32175687 ** https://www.researchandmarkets.com/reports/5707249/anti-counterfeit-packaging-technologies-market/ *
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Leveraging Existing Relationships Through Strategic Channel Partners
YPB partners up with organisations that allow access to their clients
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Lottery Tickets
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All the Ingredients for Major Shareholder Value Creation
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High Demand YPB Solutions YPB Access
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High need, high value ●Unique IP High need, high value Geographies: ●Patent protected Geographies: ● China, SE Asia + 21 granted ● China, SE Asia ● ANZ exporters + 4 pending ● ANZ exporters ● EMEA/US Markets + China ACCI accredited ● EMEA/US Markets ●B2C
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Sectors: Sectors: ●B2B
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● Wine and Dairy ●B2G ● Wine and Dairy ● Pharmaceutical ● Pharmaceutical ●Low cost
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● Health and Beauty ● Health and Beauty ●Easy implementation
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● Packaging Partners ● Packaging Partners ●High Margins
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● Lottery ● Lottery
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Scalable Technology Operational Leverage
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●Revenue per unit application ●Magnify resources via partners
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●Revenue per unit application
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●High volume and/or high value brands
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●Keep headcount low
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●Government enterprise sales ●Technology products developed to comply with government applications in mind
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●Keep overheads low ●Global distribution partnerships, highly leveraged to growth
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Board, Management and Key Financials
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John Houston
Chairman and Founder
40 years’ of building successful businesses across the globe. Built the US$2 billion Greenfield mobile phone company Operated a US $350 million EBIT telecommunications company
Gerard Eakin
Non-Executive Director
35 years experience in the portfolio management and research of Australian Equities.
Former head of Australian Equities at Rothschild Australia Asset Management, Managing Australian equity portfolios at Manifest Capital Management since 2002.
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George Su Non-Executive Director
Over 30 years’ Business experience in the Asia-Pacific region Chief Executive of Richlink, servicing ultra-high-net-worth Chinese investors. Former head of the Australian operations of China’s largest investment bank, CITIC Securities.
Martin Ross Chief Operating Officer
A successful business builder and brings years of experience. Oversees the sales and marketing department operations for YPB. A background in business operations and strategic planning has allowed Martin to successfully lead teams, drive growth, and improve efficiency.
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Item Number
Shares on issue 619,248,856
Market Capitalisation $1.3M
Share Price $0.0020
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Key Contact Information
Locations
Australia
John Houston
Executive Chairman and CEO
Level 5, 126 Phillip Street Sydney NSW 2000, Australia
Thailand
Martin Ross Chief Operating Officer
True Digital Park Company Limited 101 Sukhumvit 101/1 Road Bang Chak, Phra Khanong, Bangkok 10260 Tel: +66 2663 6261
China
1st floor, 50 Building, No.14, Jiuxianqiao Road, Chaoyang District, Beijing, China