CODEIFAI LIMITED — Capital/Financing Update 2019

Sep 9, 2019

ASX ANNOUNCEMENT

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ASX:YPB | 10[th] September 2019

YPB extends and expands with major client PT Combiphar

• New 3 year MSA signed with leading Indonesian pharma Company PT Combiphar

• Extension of both product authentication and consumer engagement solutions

• Covers expansion to additional SKUs beyond cough syrup currently covered

• Life-of-contract revenues expected to be circa A$1m

Product authentication and consumer engagement solutions provider YPB Group Limited (ASX:YPB) has signed a new three year Master Supply Agreement (MSA) with leading Indonesian pharmaceutical and wellness Company PT Combiphar.

Combiphar has been an important YPB client since September 2016 and the leading user of YPB’s ProtectCode[TM] product authentication solution. The new MSA allows for the extension of product coverage to include any of Combiphar’s 170 SKU product portfolio.

The new MSA anticipates broader product coverage and given the planned SKUs, volumes and pricing under the new MSA, YPB expects revenues over its three year life to be circa A$1million based on:

• continued application of ProtectCodes[TM] on Combiphar’s cough syrup;

• increased volumes from broader SKU coverage; and

• new YPB Connect SaaS platform and support fees.

YPB and Combiphar are presently developing plans for the rollout of coverage to further products. YPB will inform the market when new SKUs are activated.

YPB and Combiphar have a long-standing relationship which was first announced on 9 September 2016. Under the 2016 agreement, YPB envisaged covering multiple SKUs of Combiphar however due to a slow initial take-up of the solution in the first 18 months, only one product line has been covered so far. Despite this, from Combiphar’s cough syrup product line alone, YPB has generated approximately half of the anticipated revenue and the Company is encouraged by the signing of the new MSA for a further three years.

Founded in West Java in 1971, Combiphar produces more than 170 product lines across the prescription and over-the-counter segments including OBH Combi cough syrup, Insto eyecare solution and JointFit gel-based relief for joints. It also acts as a contract manufacturer for global pharm giants including GlaxoSmithKline (GSK), Sanofi and Abbott, and has obtained Therapeutic Goods Administration (TGA) certification to allow the export of certain products to Australia.

YPB Group CEO John Houston said: “Our refreshed strategy has Pharma and health products as key verticals of focus and we are delighted to extend and expand our close collaboration with Combiphar. We anticipate our solutions enhancing Combiphar’s engagement with greater numbers of its consumers by assuring the authenticity of a broader range of its products.”

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Ends

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For further information please contact:

Investor enquiries investors@ypbsystems.com

About YPB Group

YPB Group Limited (ASX:YPB) is an Australia-based product authentication and consumer engagement solutions provider. YPB's proprietary smartphone enabled technology suite allows consumers to confirm product authenticity and, for brands, that triggers consumers’ engagement.

The combination of YPB’s smartphone authentication solutions and its SaaS Connect platform, creates ‘smart’ product packaging, opening cost-effective, digital and direct marketing channels between brands and their consumers. Connect gathers actionable data on consumer preferences. It can then host tailored marketing campaigns directly back to the scanning smartphone.

YPB’s technology is also trusted by the world’s largest passport issuing nation to ensure the authenticity of its passports. YPB is currently focused on the rapidly growing Australian, South East Asian, and Chinese markets. Its primary focus areas are alcohol and dairy, health and beauty, Pharma and legal cannabis, where the viral growth of fake products, particularly in Asia, affects brand value and endangers consumers. To learn more please visit: www.ypbsystems.com

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