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CODEIFAI LIMITED Investor Presentation 2016

May 10, 2016

64630_rns_2016-05-10_d53d3bd4-c30f-4099-a6b5-9f0b39458bb2.pdf

Investor Presentation

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Building a Global Franchise in Anti-Counterfeit and Customer Engagement

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DISCLAIMER

This presentation has been prepared by YPB Group (ACN 108 649 421) (YPB, YPB Group or the Company) in relation to our most recent financial reports and other forms and information about the Company that we may file or disclose publicly from time to time.

The information contained in this presentation is current at the date of this presentation and remains subject to change without notice. The information is a summary overview of the current activities of the Company and does not purport to be complete or to contain all the information that a prospective investor may require in evaluating a possible investment. This presentation is for general information purposes only and is not intended to be and does not constitute a prospectus, product disclosure statement, pathfinder document for the purposes of the Corporations Act and has not been, and is not required to be, lodged with ASIC. It is to be read in conjunction with the Company’s periodic and continuous disclosures with the Australian Securities Exchange (ASX) which are available at www.asx.com.au, and other forms and information about the Company that we may file or disclose publicly from time to time. You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any other information contained in this presentation. In accepting this presentation you agree to be bound by the following terms and conditions including any modifications to them.

The material contained in this presentation is not, and should not be considered as, financial product investment advice, nor legal advice. This presentation is not (and nothing in it should be construed as) an offer, invitation, solicitation of recommendation with respect to the subscription for, purchase or sale of any security in any jurisdiction, and neither this document nor anything in it shall form the basis of any contract or commitment. In particular, this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, and securities in the United States. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation of needs of any particular investor which need to be considered, with or without professional advice, when deciding whether or not an investment is appropriate.

This presentation contains information as to the past performance of the Company. Such information is provided for illustration purposes only, and is not, and should not be relied upon as, an indication of future performance of the Company, including the future trading prices of YPB Group shares. The historical information in this presentation is, or is being based on, information contained in previous announcements made by the Company to the market.

This document may contain certain “forward-looking statements” and comments about future events, including the Company’s expectations about the performance of its business, future product development and certain strategic transactions. The words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “outlook”, “upside”, “likely”, “intend”, “look”, “should”, “may”, “target”, “plan”, and other similar expressions are intended to identify forward looking statements. Indications of, and guidance on, future earnings and financial position and performance, including YPB’s FY 2016 outlook, are also forward looking statements, as are statements regarding YPB’s plans and strategies, the development of the market and any pricing illustrations included here in.

Such forward looking statements are not guarantees of future performance and involve known and unknown risks including but not limited to the risk factors described in our public filings on the ASX, uncertainties and other factors, many are beyond the control of YPB Group, its officers, employees, agents and associates, which may cause actual results to differ materially from those expressed or implied in such statements. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.

YPB Group cannot give any assurance or guarantee the the assumptions upon which management based its forward-looking statements will prove to be correct of exhaustive beyond the date of its making, or that YPB’s business and operations will not be affected by other factors not currently foreseeable by management or beyond its control. Such forward-looking statements only speak as at the date of this announcement and YPB Group assumes no obligation to update such information. The release, publication or distribution of this presentation in jurisdictions outside Australia may be restricted by law. Any failure to comply with such restrictions may constitute a violation of our pricing laws.

To the maximum extent permitted by law, YPB Group makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of any information contained in this document. To the maximum extent permitted by law, YPB Group shall have no liability (including liability to any person by reason of negligence or negligent misrepresentation) for any statements, opinions or informations (express or implied), arising out of, contained in or derived from or for any omissions from this document, except liability under statute that cannot be excluded.

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The Big Picture

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  • YPB PROTECTS AND GROWS BRAND VALUE VIA ANTI-COUNTERFEIT AND CUSTOMER ENGAGEMENT TECHNOLOGIES.

HUNGRY MARKET

HUGE MARKET Extensive products, sectors and geographies

READY FOR LIFT- OFF Launchpad built, technologies, relationships, talent assembled for rapid lift-off

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RAPID
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PENETRATION High growth, low cost, low capital, low risk multiplier partnership model

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Urgent brand
need + marketers’
burning want
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CUSTOMER GOVERNMENT
ENGAGEMENT VITAL DOCUMENTS
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ANTI-COUNTERFEIT
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  • RIGHT PLACE & RIGHT TIME YPB stands to profit from sweeping shifts in global trends.

Massive decline of mass marketing Audiences have shifted to personalised media intake.

Emerging pan-Asian middle class China 350 Million India 267 Million ASEAN 190 Million TOTAL 807 Million

Rise of Customer Engagement Emerging technologies allow engagement through personal devices. Explosive growth in WeChat and Line.

Rapid evolution in Government Vital Documents Need for new-generation protection technology

The Need & The Want

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1.7[285][32.4]

BILLION BILLION TRILLION Spend on anti-counterfeit Spend on customer engagement Value of global counterfeit market measures by 2020 by 2018

1 COMPANY has developed an end-to-end solution

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THE WANT - IS IT FAKE OR REAL?

REAL

KEY INSIGHT Exporters must address the rapidly growing 800m plus middle class in Asia

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YPB’S STRATEGY To provide solutions to exporters to protect their brands and connect to customers around authenticity.

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  • THE WANT – DIRECT CUSTOMER ENGAGEMENT

MASS MARKETING IS DEAD

General demographic targets General geographic relevance Expensive to maintain brand presence Difficult to convert purchase intention No way to qualify success of campaign No individual customer feedback No ongoing database

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INTELLIGENT CUSTOMER ENGAGEMENT Individual targeting Location & time specific engagement Very low cost of total operation Intention can be converted immediately Campaigns backed by complete analytics Direct two-way dialogue with customers Complete data accumulates over time

  • Direct Engagement Marketing offers brands the opportunity to build intimate, active and ongoing relationships with customers.

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Our Solutions

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  • YPB’S SOLUTIONS The world’s first end-to-end anti-counterfeit and customer engagement solution

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PROTECT
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Integration of anti-counterfeit technology for global brands and government vital documents.

DETECT Verification through supply chain and end user / customer authentication.

CONNECT Customer engagement technology offers direct line of dialogue between brand and customer.

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YPB’S FORENSIC COVERT TRACER IS INVISIBLE INVISIBLE - CANNOT BE COPIED - CANNOT BE DESTROYED - COST EFFECTIVE Colour Shifting Ink UV Security Ink IR Security Ink Hot Stamping 900 Suppliers 113,000 Suppliers 4,700 Suppliers 20,000 Suppliers IF YOU CAN SEE IT, IT CAN BE COPIED!

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  • YPB’S TRACER IS EASILY APPLIED SCANNER GIVES IMMEDIATE AUTHENTICATION YPB particle size 2-5 microns YPB tracer on product

YPB tracer on product

YPB scanner reads the signature YPB TRACER EMITS AN INVISIBLE RESPONSE

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YPB INVISIBLE TRACER

YPB SCANNER EXCITES THE TRACER

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GOVERNMENT VITAL DOCUMENTS

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Vital Record Document
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YPB Varisec™ Foil ePassports Forensic Fibres YPB MultiSec™ Thread

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CUSTOMER ENGAGEMENT

AUTHENTICITY TRIGGERS ENGAGEMENT

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  • ANTI-COUNTERFEIT INTEGRATED WITH CUSTOMER ENGAGEMENT

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PRODUCT SCANNED IS 100% AUTHENTIC

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Thank you for
your purchase.
Folate
90 Tablets
Vytamins Folate is a source of folic
acid which, if taken daily for one
month before conception and
during pregnancy, may reduce the
risk of birth defects of the brain
Adults – Take 1 tablet and/or spinal cord.
a day with a meal, or
as professionally What is Folic Acid?
prescribed. A water-soluble B group vitamin,
Children under 12 folate is involved in the synthesis of
DNA and RNA and the activation of
years – Only as
professionally vitamin B12 into it's active form.
prescribed. Folic acid is found in fresh green
Active ingredients leafy vegetables, broccoli,
per tablet: mushrooms, legumes, nuts and
Folic acid 500 µg fortified cereals.
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Rachel Addams Age: 35 Aged Child Pregnant Fit Deficient None Folate iFoli Morn.Sick Raspberry Reorder Cross-sell

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CONNECT
The power of Location Targeting
Point A
Point B
Location based delivery
diverts foot-traffic into store.
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You have 2 days of Folate left.

ON SALE! $8.95 in-store

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Validation

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YPB HAS A UNIQUE MARKET POSITION

75 Companies certified in China by CTAAC to sell Anti Counterfeit technology in PRC

15 Companies certified to sell Tracers 1 Company certified by CTAAC in China that sells invisible tracers

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Launchpad Complete, Ready for Lift-off

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  • BUILT THE WORLD’S FIRST BRAND PROTECTION + CUSTOMER ENGAGEMENT FRANCHISE

IP = 8 Granted 8 Pending

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IP = 2 Granted
Products = 1
Footprint = China
SOB = China
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Products & Services = 7 Footprint = China Thailand Australia USA Mexico

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SOB = Global
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YPB HAS BUILT A MULTI-STREAM REVENUE PLATFORM YPB HAS BUILT A MULTI-STREAM REVENUE PLATFORM YPB HAS BUILT A MULTI-STREAM REVENUE PLATFORM YPB HAS BUILT A MULTI-STREAM REVENUE PLATFORM YPB HAS BUILT A MULTI-STREAM REVENUE PLATFORM YPB HAS BUILT A MULTI-STREAM REVENUE PLATFORM YPB HAS BUILT A MULTI-STREAM REVENUE PLATFORM
Forensics
& IP Analytics
Government Vital
Documents
Forensic Covert
Tracer
Print Management Brand
Reporter
Motif
Micro
Customer
Engagement
Product Lab Services YPB's core IP YPB Patented IP YPB IP in Print YPB IP Nano tech codes YPB Connect
Revenue
Model
Fee for service Fee per document Fee per application Fee per application SaaS Fee per application SaaS
Client Type Fortune 500
Companies
Government Brands Brands Brands Brands Brands
Revenue
Potential

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CLEARLY TARGETED SOURCES OF BUSINESS Anti-Counterfeit
Customer Engagement
Geographies, Sectors, Products
Government Vital Documents
GOVERNMENT FASHION FOOD FINANCIAL PHARMA
SPORT FMCG EXPORTERS
VITAL DOCUMENTS & RETAIL & BEVERAGE INSTITUTIONS & HEALTH
ANZ
INDIA
SE ASIA
USA
CHINA
MEXICO
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  • YPB MULTIPLIER PARTNERSHIP MODEL High growth, Low cost, Low capital, Low risk �

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Cooper Media Group Nustart Tendulkar JV StrideAware Steve Waugh Hicap Shensaier Elanders Monash University Selby’s Duet Entertainment Polymorph Affyrmx JV

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BRAND OWNERS & GOVERNMENT

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YPB'S MAJOR GOVERNMENT VITAL DOCUMENTS OPPORTUNITY IN MEXICO

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MARKET & OPPORTUNITIES

50m - 60m

50m - 60m 1.2m - 1.3m VITAL RECORDS VISAS total market size total market size US$7.2m - US$8.8m US$700,000 25m - 30m 10m - 12m LOTTERY TICKETS IDENTITY CARDS total market size total market size US$5.8m - US$7.6m US$20m - US$25m 20m - 25m EMMISSION CERTIFICATES total market size US$7.2m - US$8.8m

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*This is not a forecast - YPB's potential revenue varies by opportunity.

YPB HAS THE ONLY SECURITY FOIL NOW APPLIED TO PASSPORTS 199 Countries Issue Passports

125M

107 Million 196 ordinary Passports Countries 18 Million 3 utilise YPB VariSec™ Countries 125M PASSPORTS ISSUED ANNUALLY

Passports Issued Annually

$4.2M Total Market Revenue for VariSec™ Foil Initial target share of 20% to grow to 30% - 40% in 3 years $3.3M Total Market Revenue for MultiSec™ Thread Initial target share of 10% to grow to 30% - 40% in 3 years

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Competitor Analysis

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ANTI COUNTERFEIT TECH COMPARISON

ATTRIBUTE
RFID
NFC
HOLOGRAM
MICRODOT
UV & IR INKS CODED TAGGANTS
YPB
ATTRIBUTE
RFID
NFC
HOLOGRAM
MICRODOT
UV & IR INKS CODED TAGGANTS
YPB
ATTRIBUTE
RFID
NFC
HOLOGRAM
MICRODOT
UV & IR INKS CODED TAGGANTS
YPB
ATTRIBUTE
RFID
NFC
HOLOGRAM
MICRODOT
UV & IR INKS CODED TAGGANTS
YPB
ATTRIBUTE
RFID
NFC
HOLOGRAM
MICRODOT
UV & IR INKS CODED TAGGANTS
YPB
ATTRIBUTE
RFID
NFC
HOLOGRAM
MICRODOT
UV & IR INKS CODED TAGGANTS
YPB
ATTRIBUTE
RFID
NFC
HOLOGRAM
MICRODOT
UV & IR INKS CODED TAGGANTS
YPB
ATTRIBUTE
RFID
NFC
HOLOGRAM
MICRODOT
UV & IR INKS CODED TAGGANTS
YPB
COST PER APPLICATION ($USC) 15-30 10-25 2-5 2-5 2 1-2 1
PASS/FAIL READER
UNIQUE PRODUCT ID PER UNIT PARTIAL
RAPID AUTOMATED SCANNING
CAN BE SCANNED AT A DISTANCE >1M
INVISIBLE TO THE EYE EVEN UNDER
IR/UV/MAGNIFICATION
DURABILITY - TRACEABLE IF BURNT
EASE OF APPLICATION
TRACK AND TRACE ENABLED
READER UNDER US$20 N/A N/A

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Financials

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ISSUED CAPITAL

ACQUISITION HISTORY

Acquisitions Scrip value % total Ordinary fully paid 171,410,287 Brand Reporter 9/09/2014 $385,452 1,752,055 0.22 74% Options $0.20 Oct 2017 40,043,884 IPP 7/05/2015 $389,914 1,170,913 0.33 60% Total securities 211,454,171 CFC 1/09/2015 $383,191 1,094,830 0.35 50% nTouch 30/10/2015 $4,500,000 12,857,143 0.35 100% Market cap fully diluted $0.26 $55m Affyrmx 17/02/2016 $260,000 1,000,000 0.26 n/a $5,918,557 17,874,941 0.33

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REVENUE AND COST STRUCTURE

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Engagement
11%
IND
Other
US print
MEX 8% Office Exp
CHN
16%
16%
7%
9%
25%
Salaries
Govt docs Rent
ANZ 45%
24% TH IPP 4%
Counterfeit
30%
15%
50% USA
13%
Consulting & JV
T&E
19%
9%
REVENUE 2016 SECTOR REVENUE 2016 GEOGRAPHY COST BASE 2016
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We’re building a Global Franchise in Anti-Counterfeit and Customer Engagement

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REFERENCES

INDUSTRY NUMBERS - FRAME 8

A: Source: ICC Global Impacts Study 2008

B: The claim is the combination of the following:

1. Anti-counterfeit Packaging Market - 128.6bn by 2019 http://www.marketsandmarkets.com/Market-Reports/anti-counterfeit-packaging-advan ced-technologies-and-global-market-129.html

2. Product Authentication - 142.7 billion by 2020 https://www.alliedmarketresearch.com/anti-counterfeit-market

3. Online Brand Protection – 3.8 Billion by 2018 -

http://www.smitherspira.com/news/2013/december/global-brand-protection-market-for ecast-to-2018

C: Customer Engagement – 32.4 Billion by 2018 - http://www.forbes.com/sites/forrester/2013/08/09/mobile-engagement-providers-will-b e-a-new-32-4-billion-market-by-2018/

(5) Up to 300,000 people die annually in China due to fake or substandard medecines = International Policy Network London 2006 Center for Medicine in the Public Interest (6) 36% of anti-malaria drugs in Southeast Asia are falsified = Nayyar, GML et. al., Poor-quality antimalarial drugs in southeast Asia and sub-Saharan Africa, 12 Lancet Infectious Diseases 488, 492 (2012).

(7) 30% of medecines circulating in Brazil are counterfeit = february 7,2012 - Etco.org.br - http://bit.ly/zlMGWG.

(8) Internet Sales of Counterfeit medecines amount to $75 Billion = WHO http://www.who.int/bulletin/volumes/88/4/10-020410/en/

(9) 550 MILLION doses of illicit medicine seized in Africa during the 2013 “Biyela”operation =http://www.iracm.com/en/2013/06/operation-biyela-record-seizure-of-illicit-medicines-in-a frica/

PASSPORT NUMBERS - FRAME 35

199 Countries with passports: www.passportindex.org

GLOBAL NUMBERS - FRAME 9

(1) "10% of the world's medicines are counterfeit" = International Medical Products Anti-Counterfeiting Taskforce (IMPACT), Counterfeit Drugs Kill!, World Health Organization, Geneva, Switzerland, 2008 http://www.who.int/impact/FinalBrochureWHA2008a.pdf (accessed 07.12.12).

IHS Research predicts that within a 5 years, 90% of passports carried will be ePassports. ICAO says 21 additional countries ready to deploy ePassports in the next 12 to 48 months. Market Potential Revenue based on YPB internal estimates.

(2) "50% of cases, medicines purchased over the Internet from illegal sites that conceal their physical address have found to be counterfeit" = The World Health Organization. Available on: www.who.int/mediacentre/factsheets/fs275/fr/index. hlml. (December 2011) (3) "27.5 million counterfeit medicines retained by european customs Authorities" = Report on UE customs enforcement of intellectual property rights 2011.

  • (4) "20.7 million illegal and counterfeit drugs seized during «pangea VIII» operation" Interpol - Pangea VIII operation http://www.interpol.int/News-and-media/News/2015/N2015-089

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