CODEIFAI LIMITED — Investor Presentation 2018

Oct 28, 2018

Investor presentation for Techknow Invest Roadshow

30 October & 1 November 2018

Disclaimer

The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in, or related to YPB Group Limited (Company) including in tokens issued by a subsidiary. In preparing this presentation, the Company did not take into account the investment objectives, financial situation and particular needs of any particular investor.

Further advice should be obtained from a professional investment adviser before taking any action on any information dealt with in the presentation. Those acting upon any information without advice do so entirely at their own risk.

This presentation does not constitute an offer or invitation to purchase securities in the Company. Recipients of this presentation who intend to consider investing are reminded no reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or oral statement, or on the completeness, accuracy or fairness of that information or those opinions.

Whilst this presentation is based on information from sources which are considered reliable, no representation or warranty, express or implied, is made or given by or on behalf of the Company, any of its directors, or any other person about the accuracy, completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for that information or those opinions or for any errors, omissions, misstatements (negligent or otherwise) or for any communication written or otherwise, contained or referred to in this presentation.

Accordingly, neither the Company nor any of its directors, officers, employees, advisers, associated persons or subsidiary undertakings are liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon any statement in, or as a result of any admission in, this presentation or any document supplied with this presentation, or by any future communications in connection with those documents and all of those liabilities, losses and damages are expressly disclaimed.

Any opinions expressed reflect the Company’s position at the date of this presentation and are subject to change. No assurance is given by the Company that any capital raising or debt financing referred to in this presentation will proceed. All amounts are in Australian dollars unless otherwise stated.

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• YPB delivers a suite of proprietary revolutionary anticounterfeit and retail engagement solutions that deliver certainty of authenticity and trigger customer/brand engagement.

• YPB is on a mission to: ! Stop fakes

• ! Prove authenticity

• ! Drive customer engagement

Cost of global 4.2 counterfeit market by 2022 TRILLION USD Jobs at risk due to 5.4 counterfeit by 2022 MILLION Deaths annually from 1 counterfeit pharmaceuticals MILLION YPB = certainty of authenticity

Deaths annually from counterfeit pharmaceuticals

*Source: International Chamber of Commerce - February 2017

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Technical expertise – 20 patents in anti-counterfeit

China official anti-counterfeit accreditations – CSPIA, CATA Existing customers in ANZ, China, South East & South Asia, USA Highly scalable, annuity revenue

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Company snapshot

ASX code:

Industry code:

Shares on issue: Market cap:

Share price (at last close 26/10/2018)

12 month high: 12 month low: Unlisted options:

Debt:

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Top 25 Holders
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YPB

Commercial & Professional Services 55% 753.5m $12.81m $0.017 Directors & Management $0.07 $0.016 75,146,000 47%

75,146,000 Nil

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Corporate rebuild Jul’17- Oct’18

! New management re-build commenced July 2017 ! Cash costs cut 55% ($6.1m) – no capability loss ! Sales revamped – staff, culture, strategies ! Channel partners won, revitalised ! Motif Micro acquisition completed Q1 2018 ! Key verticals identified and gaining traction: " Cannabis Confirmed - initiative launched, 4 deals signed " Pharmaceuticals/Health - one SE Asian Pharma 40 million codes " Wine & Spirits - Largest Australian wine Company announced " Beauty/Cosmetics - Products being exported right now " Dairy - major need, major client exporting now

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Accelerating After Rebuild

• ! Sales and revenue acceleration H2 2018 with 12 new client wins

• ! 3 new Channel partners in China

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! Technical breakthrough with Smartphone readability of Motif Micro ! Token listing targeted for Q1 2019 ! Costs reduced and Revenues increasing ! Cannabis Confirmed initiative gaining traction

QR codes can easily be copied - this is happening NOW in China Hackers replacing codes with malevolent codes to gain access to consumer data Over 23% of Trojans and viruses are transmitted via QR codes Opens the floodgates - unsecured physical entry point to the digital database

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YPB’s unique BLOCKCHAIN initiative Counterfeit Counterfe t is a i s a The physical to digital gateway is a major weak point, left open for fake copyable global global codes to exploit. pandemicpandemic Certainty in authentication is only as strong as its weakest link

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Serialised microparticle barcode Counterfeit is a technology developed at MIT global Protected by 3 patents pandemic YPB has exclusive global rights to patents

Low cost Unclonable Invisible to the human eye

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Microcode ‘lights up’ in multiple Counterfeit is a colours with smartphone camera flash global Sequence of colours carries pandemic information about the product Directs smartphone to a digital asset or URL Every packaged product can be encoded

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50 million codes issued so far on current cloud based platform Counterfeit is a Proven anti-counterfeit and customer engagement platform global Issues ProtectCodes, tracks and pandemic geolocates each code every time they’re scanned Brands can engage with customers one-on-one via mobile messaging Collects & secures digital customer data via blockchain starting 2019

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• The future! Certainty of authenticity for the mass market

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• • • • Motif Micro Unfakeable Smartphone Blockchain Unique serial physical mark readability verified identity (ProtectCode) (the holy grail) (Connect)

Blockchain Direct brand to verified consumer (Connect) engagement

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Every consumer’s phone becomes a scanner. Authenticity triggers engagement.

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Global customers and partners

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YPB’s product development roadmap 2018 Covert & Overt NFC QR/Serialised QR/Forensic QR Commencing Q1 2019 Connect Customer Protected Engagement Gateway Retail Security Tags Platform Blockchain & Caps/ Anti-Theft Price Labels Invisible Forensic Tracers/Security Foils & Threads

Commencing December Next Generation Foil H2 2019 Motif Micro/ ProtectCode

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Token Issue and blockchain application

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Adds value to brands and consumers enabling accelerated adoption of YPB’s solution Increased financial strength to YPB’s balance sheet

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Regulatory matters resolved Non-dilutive to shareholders Targeting to deliver up to US$30m over 12-24mths Target token listing by Q1 2019

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YPB’s key short-term initiatives

• 1)Motif Micro - Patented anti-counterfeit technology now smartphone readable: " IOS in beta, Android being developed - commercialisation targeted for H1 2019

• 2) YPB Token float, targeting to raise up to US$30m " Facilitated by ASX:FGF and Blockchain Global, token listing expected Q1 2019

• 3) Cross Border e-commerce initiatives " Huge opportunity for YPBs solutions in with the introduction of China’s new e-commerce laws coming into effect 1 Jan 2019

• 4) ‘Cannabis Confirmed’, YPB’s JV with Cannabis e-commerce leader Namaste technologies - 4 deals signed under the JV since July 2018

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Enormous and compelling need for authenticity solutions Patented, world-leading applied technologies

Revolutionary smart-phone technical breakthrough for mass market adoption

Increasing annuity revenues Funded, lean, focused and gaining traction

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Thank you John Houston john.houston@ypbsystems.com

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• Certainty of authenticity