CODEIFAI LIMITED — Investor Presentation 2019

Sep 15, 2019

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Re-built Re-focused Re-energised

John Houston

September 2019

Executive Chairman

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). 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 Group Confidential

YPB moves from B2B to B2C with smartphone focus

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Breakthrough
Channel
Rebuilt, smartphone
partners
Refocused readability
actively
Reenergised launch
selling
H2 2019
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Brand
interest 
 Revenue
all-time 
 leverage high
high
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YPB Group Confidential

YPB’s move from B2B to B2C - exponential

29 July 2019 Connect 100M Milestone

2011 28 May 2019 Connect 75M Milestone 2014 2017 2018 2019	2020
Development Started T1 (Covert Tracer) YPB Listed on ASX T1 Commercialised Development on T2 T2 Commercialised Development commenced YPB Connect YPB Connect Launched Motif Micro Development Commenced MM1 Q4 Commercialised Development Connect 2.0 Development MM2 Release Connect 2.0

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YPB Group Confidential

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• Our addressable market can explode with smartphone breakthrough

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B2B
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B2C
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Scanner
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Covert Tracer
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Connect Platform

Motif Micro

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YPB Group Confidential

Where we were

SEP 2015 - JUL 2017

• “Professional” CEO, COO, CFO

• Skills shown to be lacking

• • Info flow misleading

• Corporate

• Over-optimism

• Process driven

• Costs blowout

• Poor control by then CFO

• Poor visibility to Board

• Scattered - geographies, sectors

• • Blind alleys

• Underdeveloped

• • Foggy roadmap

• • High external reliance and costs

• • Poor development success

• Weak skills, prospecting, converting

• Anti-counterfeit focus

• Value proposition undeveloped

• Channel partner neglect

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People

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Culture Cost Strategy Technology Sales

Where we are now

JUL 2017 - PRESENT

• Founder assumes CEO seat • C-suite and reports cleaned out • Select new blood added • Proprietorial • Realism • Results driven • Cut 66% • Better hires, high-cost heads out • In-house capability, high control • Precise geographies and sectors • Focus on high growth high impact business • Motif Micro breakthrough • Precise roadmap • Internalised at lower cost • Rapid development success • Strong skills, pursuit and capture • Consumer engagement via authentication focus • Pitch sharp, clear value proposition • Channel partners close engagement

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YPB Group Confidential

B2C will speed YPB’s path to commercial success

Authenticity triggers Engagement

Brand’s perception of value

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Anti-counterfeit (Brands - $$
don’t care)
Engagement
Authenticity
Physical Scan
Connect engagement
Indestructible uncopiable software platform Authentication
+ $
physical mark
•
[Capture data ]
•
Digital Confirmation [Serve campaigns]
Consumer response
and/or unique serial identity
Direct Engagement + $$$$$
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YPB Group Confidential

YPB Connect has issued more than 100m codes

YPB Connect is YPB’s cloud-based consumer engagement platform. Consumers can use their smartphone to scan and authenticate products displaying a YPB authentication mark on packaging triggering a new way for brands to build a one on one relationship with their end consumer.

• Proven product authenticity and consumer engagement platform with over 100 million codes issued to date

• • Captures and reports on each product scan

• Take up showing exponential growth

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YPB Group Confidential

or purse

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New
- intimate, engaged
Responses
Fake?
Real?
CONSUMER Smartphone
1st party
scan
Who? data
BRAND
Where?
Values? Brand Consumer
Assured
Needs?
authenticity
Wants?
Campaign
Old
- remote, blocked
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Empowered engagement via assured authenticityYPB Group Confidential

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Brands more likely to adopt YPB’s B2C technology

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Packaging
Dumb & Smart &
investment
Risky Safe
transformed
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Ultra high
Engagement Direct
Digital
Ultra low
Cost
Ease of Implementation
Existing packaging value multiplied
Brand protected from fakes
Payoff Brand halo from nurtured customer
High value data
Ongoing direct low cost channel
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YPB Group Confidential

Smartphone readability - MotifMicro is a world-first

DEMO

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Use your smartphone camera and hover over the QR Code

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YPB Group Confidential

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• YPB’s fully integrated authenticity and engagement solution

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+ + + +
Unfakeable Smartphone Motif Micro unique
YPB Connect
physical mark readability serial identity
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Direct brand to consumer
engagement
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YPB Group Confidential

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Smartphone readability - Motif Micro breakthrough

• TECHNICAL

• • World breakthrough in IOS

• • Covert forensic physical mark

• • Readable by unmodified smartphone

• Protected gateway into digital environment

• • Protected serialisation

• • Cloud based algorithmic app

• • Machine learning development

• COMMERCIA L

• • Opens mass-market assured authentication

• • Potential for rapid take-up via the ubiquitous smartphone

• Highly valued by brands and consumers

• Ease of implementation

• • Scalable

• Invisibly integrated

• • Low cost

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•
Driven by brand volumes
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YPB Group Confidential

YPB’s B2C Strategy being implemented

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Needs Solutions Access Scalability Leverage
• Geared growth via • •
High need, high Unique IP Revenue per unit Magnify resources
value: • packaging channel application by brand via partners
Patent protected
partners: • •
- 20 granted 
 High volume and/or Keep headcount
Geographies:
• low
- 5 pending
 high value brands
• Orora, Impact
China, SE Asia
•
-China ACCI •
PT Meidanum Keep overheads
•
ANZ exporters
accredited low
•
CCN, Meixin, Esquel
•
B2C
Sectors:
•
Low cost
•
Wine and Dairy
•
Easy implementation
•
Pharma
•
Health and Beauty
•
Legal cannabis
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YPB Group Confidential

• Revenues geared to recurring mass market volumes

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Consumer mass market
Billions of units
Consumer brands
Pay per unit volume
Channel Partners
% fee
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YPB Group Confidential

Deliverables H2 2019 + 2020

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Commercial
Significant volume Commercial
launch Motif Micro Additional channel Significant brand New sector clients
growth existing launch Motif Micro
1 and partners ANZ signings ANZ SE Asia
channels China 2
ProtectCode app
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YPB Group Confidential

• YPB’s fortunes at major inflection point - rebuild payoff ahead

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Breakthrough
smartphone
 Channels and prospective
Rebuilt, lean, hungry, Significant profit leverage
readability 
 clients
focussed to revenue growth
launch actively engaged
H2 2019
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YPB Group Confidential

Top 25 holders

Company snapshot

ASX Code	YPB
Industry	Anti-counterfeit technology solutions
Shares on issue	1.15bn
Market Capitalisation (12 Sept)	$6.9m
Share price (at last 12 Sept)	Aud 0.006
Listed options	127.1m
Convertible	$1.45m

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48%
Directors & Key
stakeholders
23%
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YPB Group Confidential

YPB’s 2019 Board and Leadership Team

Relevant & experienced board & management

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John Houston

Founder, Chairman and Chief Executive Officer of YPB Group Limited

Over 40 years’ experience in building and leading successful businesses across the globe including Orange Switzerland & Thailand.

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Phillip Wade

Non-executive Director

Phil has almost 20 years experience in creating and leading E- commerce and Marketing teams across Europe, Asia and America in retail, travel and consumer goods. He has held senior E-commerce and Marketing roles at some of the world’s biggest companies.

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Gerard Eakin

Non-Executive Director

Gerard Eakin has 35 years’ experience in the portfolio management and research of Australian Equities. Previously Head of Australian Equities at Rothschild Australia Asset Management.

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Dr Paul Bisso

Co Inventor Motif Micro

Internationally renowned materials expert Co-invented the Motif Micro technology at MIT.

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George Su

Non-executive Director

Over 30 years business experience in the Asia Pacific region and is currently the Chief Executive of Richlink servicing ultra-net worth Chinese investors.

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Adrian Tan

Cheif Finacial Officer

14 years of professional experience in both the government and private sectors across Europe and Asia. He was most recently CFO at Lazada Express Limited (subsidiary of Alibaba)

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YPB Group Confidential

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