CODEIFAI LIMITED — Investor Presentation 2014

Sep 16, 2014

YPB Group Ltd. | GLOBAL LEADER IN ANTI COUNTERFEIT TECHNOLOGY
ABN 68 108 649 421
ASX code: YPB T: +612 8263 4000 F: +612 8263 4111

ASX: YPB

ASX ANNOUNCEMENT 17 September 2014

Investor Presentation

Attached is an investor update.

Yours faithfully

FDWHop $\triangleleft$

Robert Whitton Company Secretary

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Investor Update - September 2014

John Houston - CEO & Chairman

Disclaimer and Forward Looking Statements

This Presentation is provided by YPB Group Ltd (YPB, the Company).

You may not rely upon anything in this presentation and/or any information obtained from the Company, its Directors or their associates in deciding whether or not to seek to participate in the shares of the Company. This is not an offer o subscribe for securities in the Company.

The Presentation may contain quantitative statements of anticipated future performance such as projections, forecasts, calculations, forward-looking statements or estimates all of which are based on certain assumptions (Forward Looking Statements). The Forward Looking Statements involve subjective judgements and are based on a large number of assumptions and are subject to significant uncertainties and contingencies, many of which are outside the control of YPB Group Ltd and may not prove to be correct. No representation or warranty is made that any Forward Looking Statements will be achieved, or occur, or that the assumptions upon which they are based are reasonable or the financial calculations from which they have been derived are correct. Actual future events may vary significantly from the Forward Looking Statements. Each Recipient should undertake its own independent review of the Forward Looking Statements, including the assumptions on which they are based and the financial calculations from which they are derived.

Corporate Overview

ASX code:	YPB
Listed:	7 August 2014
Share Price (@16 Sept):	\$0.32
Share price range:	$$0.16 - $0.40$

Shares on issue	103.2m
67.2m escrowed for 24 months
8.8m escrowed for ~12 months
Unlisted Options	0.8 m
exercise @ \$0.20 expire 10/2017
Market Cap (@16 Sept):	$\sim$ \$33.02m

Shareholders Directors hold Top 20 hold

66.1m (64%) 87.1m (84%)

YPB Snapshot

Large Growing Market

· Global counterfeit market growing to US\$1.7 trillion by 2015. Anticounterfeit technology spend in Asia is growing at around 20% per annum

Unique Product

• Patented technology, cannot be copied or removed, easily applied, inexpensive for Brand owners and the only CTAAC Certified supplier of invisible anticounterfeit tracer in China

Scanner & Brand Reporter

• Growing range of scanners for Brand Owner
• Brand Reporter has potential to target 500 million mobile users in China to complement Scanner use by Brand owner

Attractive Business Model

• . Low Capex, highly scalable B2B business model
• Brand Reporter shortens sales lead times & enhances revenue base
• . Potential to create extremely valuable database product

Highly Experienced Team

John Houston - CEO & Chair

30 Years experience building global technology businesses and 20 years experience in Asia

Dr. Geoff Raby - Non Executive Director

Australian Ambassador to China 2007-11. Australian Ambassador to APFC and WTO Lives in Beijing Experienced ASX listed Company Director

George Su - Non executive Director

CITIC Securities Australia between 2009 and 2013. Specialises in cross border transactions between Australia and the PRC. Experienced ASX listed Company Director

Robert Whitton - Non Executive Director

Chartered Accountant with 30 years experience in financial analysis and risk management Experienced ASX listed Company Director & Company Secretary

Paul Eveleigh - Chief Operating Officer Beijing based, highly experienced global business experience

Wesley Wang - General Manager China Beijing based and with Company since inception, ex-Nortel Networks China

Randall Griffis - Chief Marketing Officer USA (Los Angeles) based, experienced marketing and sales of FMCG – heading up

Brand Reporter

Hunt Wang - Business Development Shanghai based, 5 years experience in Anti-counterfeit forensic technologies

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A Global Issue for Brands...

US\$1.7 trillion

the global anti counterfeit market is expected to grow to \$US1.7 trillion by 2015.

HOW MUCH IS COUNTERFEITING COSTING YOUR BRAND? Pharmaceuticals From Fake

Estimated that up to 300,000 die each year in China alone from fake pharmaceuticals and medicines.

Global counterfeiting and product diversion is estimated to have cost brands over 1.7 trillion dollars in 2013.

Brands to enforcement agencies have been

Devastating reality of fakes in China

An example...

• 20,000kgs of fake Beef confiscated in North West China $\mathcal{L}_{\mathcal{A}}$
• Product was actually made from pork and treated with chemicals $\mathcal{L}_{\mathcal{A}}$
• One ring of meat crooks estimated to make US\$2.0m from passing off rat, fox and $\mathcal{L}_{\mathcal{A}}$ mink meats as mutton by treating it with gelatin, carmine and nitrate

Source: Yahoo News Singapore 20th Sep 2013

Rapid Global Expansion

In under 6 weeks since ASX listing YPB has developed a global reach

China

• Beijing Head office team expanded to 15 $\mathcal{L}_{\mathcal{A}}$
• Shanghai China Sales & Marketing hub $\mathcal{C}$ being developed
• Dalian Maritime University as research hub $\mathcal{L}_{\mathcal{A}}$

USA

• Los Angeles head office for Brand Reporter $\mathcal{L}_{\mathcal{A}}$
• USA focused team in place $\mathcal{L}_{\mathcal{A}}$
• Local support function in partnership with $\mathcal{L}_{\mathcal{A}}$ tech incubator
• Potential sales agent for US & strategic $\overline{\phantom{a}}$ partner

Thailand and Indonesia

Strategic partner in negotiations $\mathcal{L}_{\mathcal{A}}$

UK

Major Brand Reporter client - team to meet $\mathcal{L}_{\mathcal{A}}$ in next 30 days

Timeline - What's happened in first 40 days

Brand Reporter acquisition has enhanced our IP

• " YPB owns two (China SIPO) Patents relating to the Tracer
• YPB has a Patent Pending in China and now progressed to PCT for its Smartphone app
• YPB has well developed trade secret methodology over Scanners, and application methodology
• NOW:
• $\circ$ YPB has acquired IP with the Brand Reporter acquisition over a crowd sourced Anti-counterfeit database product driven by web and APP based solutions

Product Development & Marketing

• YPB reach is growing: goal of being $\mathcal{C}$ recognised as the global 'go to' company for counterfeit is proceeding
• Presenting at Major industry $\mathcal{L}_{\mathcal{A}}$ conferences in China and USA in September: tobacco, cosmetics, Security, global brands
• Dalian University in China: working on $\mathcal{C}$ technical developments for YPB tracer and scanner products
• Communication and meetings with: $\mathcal{C}$ global brands, US customs, LAPD, regional ASEAN Police, manufacturers in China, potential distributors and more...

What's coming up

ANTICIPATED NEWSFLOW - NEXT 6 MONTHS

• Customer contracts ongoing progress with existing customers & pipeline conversion $\sim$
• Territory expansion via distributors $\mathcal{C}^{\mathcal{A}}$
• Release of next generation T2 scanner precursor to rollout of customised tracer $\mathcal{L}_{\mathcal{A}}$ solution to larger brand owners
• Launch of Brand Reporter smartphone App with added capabilities: $\mathcal{C}$
• China release $\mathcal{L}_{\mathcal{A}}$
• Barcode scanning added $\mathcal{L}_{\mathcal{A}}$
• Online consumer tool for reporting fakes from online retailers H.
• Rollout Brand Reporter in China $\mathcal{C}^{\mathcal{A}}$
• 2014 Options entitlement issue to ALL holders at record date (Nov-Dec 2014 $\mathcal{C}$
• ASX listed options 1:4, \$0.01 price, \$0.20 strike, 3 year expiry. Record date TBA
• Strategic acquisitions where they add value and complement the strategy. $\mathcal{C}$

BRANDREPORTER POWERED BY SALE PB

www.brandreporter.com

4 Easy Steps

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REVENUE MODEL

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scanner & barcode

Per unit

THE MANUS

on packaging technology

BRANDREPORTER SdA/A All distance

Membership revenue
White label

packages

Knowledge Bank growth
Creates ongoing demand
for YPB products

The perfect fit for YPB

Faster revenue recognition with fast sales cycle

Faster access to brands. Brands already have some tech but no global tool to track fakes

Brands need cross market tools for parallel import & diversion goods

YPB now has access to the USA and immediate selling underway

Low cost tool for brands gets us a relationship with brands to allow sales of tracer

A positive pipeline

Our US based team have already begun communicating with a long list of influential people and companies

The Brand Reporter sales team is targeting to close at least 10 clients by February in the US alone, with a greater pipeline expected from China & Asia

Territories and selling of Brand Reporter...

Use for Private and Public Sectors

• Can be customized to fit specific business objectives.
• Product can be distributed to any relevant stakeholders involved.
• Easily scalable for crowd-sourcing internally and externally.
• automotive, consumer electronics, apparel, Applicable for a variety of verticals including petroleum, tobacco and so much more.

Solutions for Government

• Ability to aggregate information coming from many different sources.
• Heighten communication between departments and personnel.
• Ability to create and manage a database and store information for future analysis.
• Secure solution with a domestic and international reach.

To view Brand Reporter video presentation go to http://www.brandreporter.com/

The acquisition of Brand Reporter was by a combination of cash (US\$125k) and scrip (1.75m shares at VWAP of \$0.22, escrowed for 12 months).

Advantages of Brand Reporter acquisition

1. Brand Reporter is fully developed for web, iPhone and Android platforms, and easily adaptable to suit YPB's overall web/mobile strategy, speeding YPB's ability to roll out a full mobile and web solution in China and globally.

2. Revenues will be generated from:

a) monthly license fees of between US\$1,000.00 to US\$5,000.00 (depending on the size of the business) for each Brand Reporter set licensed,

b) cross selling of YPB's core tracer and scanner solutions, plus

c) the global anti-counterfeiting reference database developed from the data gathered by each Brand and YPB's own activities.

1. Brand Reporter allows YPB easy access to the USA market where the product already has traction.

2. Curious Minds and YPB will co-operate in the technology adaption and YPB will operate from the Curious Minds facility in the USA in the short term giving YPB immediate USA presence and in parallel introduce Brand Reporter to other markets especially China.

Contacts

Mr John Houston	Mr Greg Wood
CEO	Managing Director
YPB Limited	K S Capital Pty Ltd
+61 458 401 088	+61 416 076 377
john.houston@ypbsystems.com	g.wood@kscapital.com.au

Media inquiries

Mr James Moses Mandate Corporate +61 420 991 574 james@mandatecorporate.com.au

or visit the Company's website at

www.ypbsystems.com