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CODEIFAI LIMITED Investor Presentation 2015

Apr 9, 2015

64630_rns_2015-04-09_40000dd8-df18-4fe1-8327-f99a374e4a17.pdf

Investor Presentation

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ASX Listed - Global Anti Counterfeit Solutions & Technology

Investors from IPO up 65% (at 1st March 2015)

  • Listed in August 2014 via backdoor listing (AUV )

  • YPB have of�ces in Sydney, Hong Kong, China, Thailand and USA

  • Shares on issue: 119,034,986, Options, 37,940,445

  • Shareholders: Directors 66.2 million (64%), Top 20 87.1 million (84%)

  • Escrow: 67.2 million for 24 months, 8.8 million for 12 months

  • Placement 4/12/2014: 5.5 million shares at 30 cents for $1.65 million

  • YPB completes $3.1 million placement to strategic and institutional investors

  • SPP open until 17th April can apply for up to $15000 worth of shares with 1 for 4 option attached for 1 cent each

  • Market cap A$40.25 million

For more information please visit the company�s website www.ypbsystems.com

Company Information

YPB Group Limited

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Huge Growing Market

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Counterfeiting is a global issue.

The costs and damage caused by counterfeit, pirated and non-compliant products are diverse, affecting all stakeholders in their various supply chains. Consumer awareness is growing alongside government and industry demand for more effective solutions to address the following costs and risks:

Counterfeiting

1. Corporates

2. Consumers

Direct �nancial loss, damage to brand and reputation, and loss of investment for manufacturers and their supply chains.

Compromised health and safety causing sickness, accident and death, substandard product performance and invalidation of warranties.

3. Government

4. Geo-Socio-economic

Reduced tax revenues and hence budget expenditures, corruption and reduction in regulatory integrity and effectiveness.

Job losses, environmental damage, growth in organized crime and reductions in foreign trade and investment.

A Global Issue

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Global counterfeiting and product diversion is estimated to have cost brands over 1.7 trillion dollars in 2013. Brands to enforcement agencies have been �ghting this problem from behind, always trying to catch-up to the source.

between 200-300,000 die annually from fake Pharmaceuticals

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

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

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YPB Products

Company Information

YPB Group Limited

A Range Of Solutions For Brands & Governments

YPB is a provider of covert brand protection and security systems for Brand Owners, OEM�s and government agencies. Our solutions combine unique anti-counterfeit technologies delivered in cost effective and easy to use forms wrapped with an effective monitoring framework to help brand owners, their supply chains and consumers deal with the rising tide of counterfeit, pirated and non compliant products.

Patented Tracer Technology

  • Our covert markers and additives include a range of stable microscopic multi-dimensional responsive compounds which can be applied to a products before, during or after manufacture.

  • They are designed and tested to match the chemical properties and environment of each customer product substrate. Once applied to the product they become physically, chemically and where applicable forensically part of the product itself and for this reason are commonly referred to as Product DNA.

  • Once applied into the substrate they cannot be seen, damaged or removed for the entire product life. They may be applied to all forms of materials including polymers, pigments, dykes, inks and surface coatings, fabric �bers, composites and other materials.

  • YPB has extraordinary performance features including durability, security, consistency and stability. They are inert and resistant to both organic and inorganic chemicals, are insoluble in water, resist acid and alkali media and have a heat resistance to over 920° Celcius which enables them to survive most household �res and industrial explosions.

  • YPB�s covert markers are protected by 2 current Chinese registered patents.

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YPB Products

Company Information

YPB Group Limited

Patented Scanner Technology

  • YPB's tracers are detected and decoded by YPB�s proprietary detection devices and scanners. This enables instant in�eld authentication of products as either genuine or fake.

  • YPB has applied for patents of its scanner technology. YPB offers customers a range of scanners to assist in product authentication within the supply chain. YPB�s marker solutions can be simple or complex, depending on the application. Likewise, YPB is constantly developing upon it�s core scanner technology and will in future come in an even wider range of models with different levels of functionality.

  • YPB�s scanners have features such as high performance power management which ensures a USB port rechargeable battery life of up to 4,000 scans or two months standby. The YPB �talking scanner� is unique to YPB, enabling brand owners to authenticate their products containing YPB�s visible and invisible covert forensic tracers. It comes with the popular factory option allowing brand owners to customise their own audio message for product veri�cation.

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REAL FAKE
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YPB Products

Company Information

YPB Group Limited

Patent Pending Mobile Technology

  • YPB has developed a multi-layered anti counterfeit strategy which incorporates mobile smartphone technology. This allows the company�s technology to engage the consumer market and capitalize from the ever growing mobile app opportunity.

  • Brand Reporter is an affordable tool that can help reduce revenue loss and is an ef�cient way to analyse counterfeit data. This allows all stakeholders in your company to be aligned in your �ght against counterfeit products.

  • Brand Reporter allows you to compile actionable data on where and when your products are being counterfeited around the world.

  • YPB has a dedicated mobile development team & has a range of solutions to suit various needs, such as track and trace, consumer marketing and product scanning.

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4 Easy Step
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Scan Tag
Submit
Snap
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Huge Market Opportunity

Company Information

YPB Group Limited

Opportunity Within China & South East Asia

Opportunity Within The USA Market

Companies in Asia currently spend around $14billion on anti-counterfeit and authentication solutions.

YPB has a dedicated hub in Beijing and Bangkok to aggressively target all areas of the conterfeit market.

Within The USA headquarters in Los Angeles, YPB has extensive relationships with brands and manufacturers. USA is the home to the majority of brands impacted by counterfeiting.

YPB is growing its business in USA with sporting & apparel, packaging, tobacco and many other channels

A GLOBAL PRESENCE

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Strong IP Protection

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2 Registered patents with 20 year currency over the formulation methods for the tracer. SIPO patent applied for Smartphone Application and Scanner technology. Also a patent pending over Brand Reporter application in USA.

Experienced Board

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  • John Houston- Executive Chairman & CEO

  • George Su � Non- Executive

  • Robert Whitton - Executive

Unique Customer Proposition

  • Dr Geoff Raby � Non- Executive

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YPB has deliberately focused in Asia as it can supply the manufacturers at the source of counterfeit. YPB is the only supplier Licensed by China�s CTAAC that supplies invisible tracers in the Peoples Republic of China.

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Why invest in YPB shares?

Company Information

YPB Group Limited

YPB Growth and Reach Is Growing Rapidly

At the time of IPO YPB Group had 9 existing contracts in place. Since IPO YPB has signed signi�cant contracts and has a huge pipeline of opportunities it is planning to close through 2015.

Highly experienced sales and marketing team is now in place with technical sales knowledge and ability to implement solutions with brands and stakeholders.

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Major Toys & Wine &
Customs &
Enforcement fashion Licenced high end Pharma
& apparel product alcohol
Sports Electronics
Government
Tobacco Leagues & & Documents Currency
licences Accessories
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With a signi�cant customer pipeline and new leads, YPB will continue to accelerate execution of sales contracts with dedicated sales teams throughout Asia, Australia and USA.

Growth & Investor Loyalty

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43c 43c
Oct 1 Feb 23
Sep 133c Nov 134c Dec 135c Jan 135c 30c Mar 133c
Feb 1
20c
IPO
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Why invest in YPB shares?

Company Information

YPB Group Limited

New Contracts (Signed Since IPO)

YPB Group signs supply contract with major supplier to China�s tobacco and liquor industry.

  • YPB has entered into an exclusive 5-year contract with Shenzhen Shensaier Ltd for the provision of its anti-counterfeit invisible tracer products and T1 scanners.

  • Shensaier will include YPB�s tracer in all high-end inks supplied to China�s biggest tobacco and wine brands.

  • Contract potentially worth AUD$16M (80 Million RMB) based on projected revenues over term of the contract.

  • Shensaier is one of China�s largest suppliers of high-end UV printing ink and paints to the Chinese Tobacco industry.

YPB Group signs supply agreement with Hicap Closures - a major International supplier of solutions f or bottle closures.

  • YPB has entered into a 4-year supply contract with Hicap Closures Company Ltd for the provision of its anti-counterfeit invisible tracer products and T1 scanners.

  • Hicap is one of China�s largest suppliers of high-end bottle closures and supplies 2billion closures per year.

  • Hicap will include YPB�s tracer in its metal and plastic closures for glass bottles in the wine and spirits, pharmaceuticals and food industries in China and internationally.

  • Contract is projected to generate gross revenue of AUD $10m (~48.5 million RMB) over the term of the contract.

YPB Group signs LOI with major international supplier of RFID and NF C technology

  • LOI opens opportunity for YPB to protect Hidali�s RFID chips

  • Hidali and YPB will work to develop near �eld communication (NFC) technology forproduct authentication

  • Hidali plans to be a major supplier of Radio-Frequency Identi�cation (RFID) tags inChina

YPB Group enters Supply Contract for anti-counterfeit printing solutions to Guangdong National Tax Bureau

  • YPB Group has entered a 3 year contract for the supply of its invisible tracer and scanners with Guangzhou Renmin Printing for the protection of tax invoices (Fapiao�s) for Guangdong National Tax Bureau.

  • YPB Group anti-counterfeit solution will be applied to approximately 14 Million Fapiao�s in the 1st year of the contract.

  • YPB Group�s anti-counterfeit solution was selected by the Guangdong National Tax Bureau as one of thekey technology solutions for this new contract.

YPB commences supply of Government building security passes in China

  • YPB and Ministry of Public Security First Research Institute Beijing Sandun Card Technology Co. Ltd. have commenced supply of YPB�s anti-counterfeit solutions to Government departments security passes within China

  • Following successful trials in 2014, this is YPB�s �rst market application for government security passes

  • Beijing Sandun Card Technology Co. Ltd.�s intention is to integrate YPB Anti-Counterfeit solutions into its anti-counterfeit applications

YPB Group signs agreement with Crime Stoppers International (CSI) to �ght counterfeit and illict trade globally.

  • YPB becomes the preferred covert brand protection and security solutions provider for Crime Stoppers International (CSI) for exclusive 3 year term with option to extend

  • Immediate collaboration to integrate YPB�s Brand Reporter technology as foundation for a global reporting tool for CSI

  • Collaboration on a global scale for Brands to adopt YPB technology and be part of the Crime Stoppers Anti Counterfeit initiative and provide solutions for the rapidly growing online shopping issues due to counterfeit

Potential For Growth

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Huge growth remains in a world inundated with counterfeit products, where YPB can offer protection and detection solutions to brands, governments and consumers.

Revenue generated by new supply contract agreements will follow as the YPB Sales team meets with manufacturers to show them solutions that combine unique anti-counterfeit technologies delivered in cost effective and easy to use forms wrapped with an effective monitoring framework to help brand owners, their supply chains and consumers deal with the rising tide of counterfeit, pirated and non compliant products.

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YPB Contacts

Company Information

YPB Group Limited

ASX code : YPB

Registered of�ce : Level 29 66 Goulburn St Sydney NSW 2000

INTERNATIONAL CONTACTS

CHINA

Paul Eveleigh [email protected]

USA

Website :

www.ypbsystems.com

Contact us :

[email protected]

For investment enquiries: Robert Whitton [email protected]

Jack Axelrod [email protected]

AUSTRALIA

Robert Whitton [email protected]

THAILAND

Dane Chuntraruk [email protected]

For marketing enquiries: Randall Grif�s randall.grif�[email protected]

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USA
Jack Axelrod
[email protected]
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CHINA
Paul Eveleigh
[email protected]
THAILAND
Dane Chuntraruk
[email protected]
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AUSTRALIA
Robert Whitton
[email protected]
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