CODEIFAI LIMITED — Investor Presentation 2014

Aug 6, 2014

==> picture [721 x 136] intentionally omitted <==

==> picture [721 x 136] intentionally omitted <==

==> picture [721 x 136] intentionally omitted <==

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

YPB Pin Bao
优品保
----- End of picture text -----

1

Fighting counterfeit in Asia and beyond

==> picture [136 x 408] intentionally omitted <==

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 removed, easily applied, inexpensive for Brand owners and the only CTAAC Certified supplier of invisible anti-counterfeit tracer in China

Scanner & Mobile Driven

•Mobile app 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

Highly Experienced Board

Dr. Geoff Raby

John Houston

30 Years experience building global technology businesses

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

Successfully built and ran large mobile Telcos for Hutchison and Orange, Sri Lanka, Thailand and Switzerland

Value creator for shareholders – sold Intertouch at over 70x EBITDA in 2004, US$70m 100% cash to NTT DoCoMo, experienced ASX Chairman

George Su

Australian based businessman who Headed CITIC Securities in Australia until 2013 Experienced ASX listed Company Director Investor in YPB

Robert Whitton

Over 20 years experience in Asia

Executive Chairman and CEO

Australian based Chartered Accountant and corporate advisor

Experienced ASX Listed Company Director Robert is also the Company Secretary

Counterfeit - a Large & growing issue

US Customs: China ships two thirds of worlds counterfeit goods

US$24 Billion of counterfeit goods to Europe and US alone

50,000 cases of counterfeits detected in post in EU alone

==> picture [721 x 136] intentionally omitted <==

Spend on anti-counterfeit >20% p.a

• Anti-counterfeit spend growing at double digit percentages annually, estimated at 20% in Asia

• Over US$80 Billion spent fighting counterfeiting worldwide, with US$14 billion spent in Asia

==> picture [721 x 136] intentionally omitted <==

==> picture [721 x 136] intentionally omitted <==

Between 200,000 & 300,000 die annually from fake Pharmaceuticals in China

==> picture [665 x 160] intentionally omitted <==

==> picture [665 x 159] intentionally omitted <==

Our Products & Customer Applications

YPB Invisible Markers (hidden & covert)

Optimised for large scale manufactures by compounding with universal raw materials and supplied as masterbatch concentrates

==> picture [721 x 136] intentionally omitted <==

Markers embedded in almost any end product or packaging. Secure, physical protection delivered seamlessly. Peace of mind for Brand owners & their customers

How it works

YPB Particle size 2-5 microns

YPB scanner on product logo

scanner reads the unique signature

==> picture [721 x 136] intentionally omitted <==

Particles embedded in YPB scanner excites product the tracer

When you excite the material, it will emit a unique response

Perfect packaging copies

Counterfeit manufacturers have become highly skilled in producing identical products to originals

The consumer cannot determine the difference between products

Example of identical counterfeit of mainstream brand

“if you can see it .. It can be copied!!”

• HISTORICAL anti-counterfeit measures used by Brands Globally which are easily copied: Tamper evident Holograms UV Security Ink closures 94,000 suppliers 113,000 suppliers 34,000 suppliers Colour Shifting IR Security Ink Hot Stamping Ink 4,700 suppliers 20,000 suppliers Source: Alibaba, China suppliers 900 suppliers

==> picture [721 x 136] intentionally omitted <==

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

YPB has unique market position
----- End of picture text -----

15 Companies certified to sell Tracers

75 companies certified in China to sell Anti Counterfeit technology

==> picture [721 x 136] intentionally omitted <==

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

CTAAC is the China Trade Association for Anti Counterfeiting
----- End of picture text -----*

China Smartphone market booming A little bit of YPB in everyone’s life…

500 million mobile internet users in China out of 617 Million internet users 25.1% use mobile scanning on barcodes

The top Chinese barcode scanner app has had 83.5Million downloads

Source: China Daily

Targeting the consumer - Mobile App

Potential to arm over 500million users with anti counterfeit tools

Patent Pending: YPB's app is designed to scan barcodes to determine legitimacy

It uses multi faceted barcode and printing technologies and adds security layer with YPB's tracer to create secure bar code

Allows potential massive consumer uptake

==> picture [721 x 136] intentionally omitted <==

Strong IP

YPB owns 2 Patents and 1 Patent pending

1. Tracer manufacturing Patents granted

2. Smartphone SIPO application patent pending

3. Scanner designed by LX Group – (bionic ear designers) 4. In-house material science group

Source: YPB

==> picture [721 x 136] intentionally omitted <==

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

YPB opportunities - Tobacco
----- End of picture text -----

					Region		No of packs		Potential
							per annum		Revenue
									to YPB
					Yunnan		18 billion		$21 m
					Hunan		9 billion		$11 m
					Henan		8 billion		$10 m
					Shandong		7 billion		$8 m
		Shandong 7 bn packs			Remainder		81 billion		$96 m
	Henan				Total China		123 billion		$146 m
	8.4 bn	bags
				Revenue to YPB is atLESS THAN
	Hunan			$US0.001c(one tenth of a cent) per
	9.1 bn packs			pack
	Yunnan 18 bn packs			Tobacco is a potentially huge opportunity for YPB					revenue
				Source: China Tobacco Administration 2013
Source: YPB

YPB has signed 9 contracts & has a stronger pipeline in place

Category

% of revenues

Food & Packaging 25% Clothing & labels 25% Electrical Equipment 4%

25%

Hardware

2%

Cigarette packaging 10% Packaging & ink OEM 8% Security Printing Beijing 8% Anti Counterfeit ink Taiwan 8%

Security Printing Beijing Anti Counterfeit ink Taiwan Distributor Europe

8%

YPB has a scalable business model

High margin , high volume

3-5 year recurrent revenue streams

Very low price per application of YPB inside, can be as low as 1/10th of 1c $US $0.001

Strong free cash flow generator

YPB will use funds raised to accelerate business rollout in the next 12-24 months:

Add to the existing list of signed 3-5 year contracts

Expand sales reach in China

Roll out the “smartphone” app

Invest further in R&D & especially for customised tracers

Build significant shareholder value through strong & reliable cash flows, renewable 3-5 year contracts

Strategic Acquisitions

Commence expansion of its Pan Asian footprint

==> picture [721 x 136] intentionally omitted <==

==> picture [721 x 136] intentionally omitted <==

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

Mr John Houston Mr Greg Wood
CEO Managing Director
----- End of picture text -----

==> picture [721 x 136] intentionally omitted <==

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

YPB Limited K S Capital Pty Ltd
+61 458 401 088 +61 416 076 377
John.houston@ypbsystems.com g.wood@kscapital.com.au
or visit the Company’s website at
----- End of picture text -----

www.ypbsystems.com