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DATADOT TECHNOLOGY LIMITED — AGM Information 2010
Nov 25, 2010
64764_rns_2010-11-25_81a87dc9-48a1-4d91-928a-607cb6a27f16.pdf
AGM Information
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Annual General Meeting – 26 November 2010 1
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DataDot Technology Limited - Disclaimer
Disclaimer:
This p resentation has been p re p ared b y DataDot Technolo gy Limited ( ‘DataDot” ) based on information available at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained within this presentation.
To the maximum extent permitted by law, neither DataDot or any member of the DataDot group, their directors, employees or agents, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising from fault or negligence on the part of their directors , employees or agents .
General Securities Warning:
This presentation is not an offer or invitation for subscription of purchase of or a recommendation of securities. It does not take into account investment objectives, financial situation and particular needs of the investor. Before making an investment in DataDot, the investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment advisor if necessary.
All Information including business forward plans in this presentation should not be considered as a recommendation in relation to holding purchasing or selling, securities or other instruments in DataDot. Due care and attention has been used in the preparing this information. However, actual results may vary from projected results and any variation may be materially positive or negative . Forward plans , by their very nature , are subject to uncertainty and contingencies many of which are outside of the control of DataDot.
Past performance is not a reliable indication of future performance.
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DataDot Technolo Limited – Overview gy
DataDot Technology Limited (DataDot):
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Australian stock exchange listed in 2005 (ASX:DDT).
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Market capitalisation:
Issued Capital Presently issued 344.0 m shares CSIRO issue 33.7 m shares $3m cap raising 73.2 m shares Total post December 2010 450.9 m shares
- Market capitalisation = $20.2 million (451 m shares @ 4.5 cents per share)
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DataDot Technolo Limited - Focus gy
Business focus:
To provide customer – focused solutions for:
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Asset identification.
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Protection.
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Authentication.
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Prosecution solutions for environmental protection.
Risk Management Solutions:
DataDot provides theft deterrence, anti-counterfeit and fraud protection solutions for clients globally.
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Manufacturin Network g
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DDT has back-up factory redundancy for shipment and supply security.
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DataDot Technolo Limited - five ear strate gy y gy
Five key drivers:
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Aggressively grow microdot product globally – significant opportunity to grow from the current stable and expanding base,
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Package DataDots into innovative solutions for the management of risk in financial and insurance solutions,
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Develop new products and applications using patents, trade marks and trade secrets to protect intellectual property ,
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Aggressively grow DataTraceDNA technology, and
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Expand the growth of AgTechnix business.
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Our main products (DataDot Group):
1. 2.
Proprietary & Patented IP Pro rietar and atent endin IP p y p p g Proprietary and patent pending IP
Proprietary and patent pending IP
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Secure solutions for asset protection, authentication and identification.
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DataDotDNA[® ] and DataDot Metallic
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DataThreadDNA[TM]
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DataBaseDNA
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assetDNA & baseLINE software
Actual Size 1mm
- DD Secure[TM]
Magnified DataDot
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- Future market i eline p p
Pushing strategic growth of the distribution network
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Continue to support and resource territories in strategic high theft countries.
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New business development resources in USA, Canada and Australia.
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New distributors in:
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Argentina,
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Brazil,
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Chile,
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China,
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Fiji,
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Micronesia ,
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Thailand, and
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renewed contract in USA.
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- The market size in motor vehicle theft Reported car theft in the top 73 countries amounts to 3.59 million cars p.a. Car Thefts - total p.a., top 30, ranked by country
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1,400,000
1,246,096
vehicle theft in the USA costs US$70 bn p.a.
1,200,000
1,000,000
800,000
600,000
400,000
93,133 vehicle theft in South Africa costs US$1 bn
200,000
8,486
0
# 1 # 2 # 3 # 4 # 5 # 6 # 7 # 8 # 9 # 10 # 11 # 12 # 13 # 14 # 15 # 16 # 17 # 18 # 19 # 20 # 21 # 22 # 23 # 24 # 25 # 26 # 27 # 28 # 29 # 30
ates: d om: nce: a Italy: ada: n xico: e ralia: Spain: frica: any: m land: Jpan: a den: e ysia: a land: nds: a bia: m ugal: ark: m esia: n blic: u ssia: u way: r land: land: abia: rkey: land: aria: g ece: e
Fr Ca M Aust Ger Sw Mal Po Colo Port Den Indo R No Fin Tu Ire Bul Gr
United St United King South A Switzer Netherl Czech Rep New Zea Saudi Ar
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DataDot Technology works, the reduction in incidence of stolen vehicles is shown below: Index of cars stolen and not recovered (per 1000 vehicles)
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2.50
2.253
2.154
DataDots fitted to
2.008
Subaru cars in
2.00
Australia result in
a significant
reduction in the
incidence of theft.
1.50
1.00
0.50
0.290
0.00
Subaru - Forester Toyota - RAV 4 Nissan - X-Trail Honda - CRV
Source: National Motor Vehicle Theft Reduction Council, November 2010. 11 11
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Example of effectiveness of DataDots on theft and insurance premiums , major DataDot fitted automotive customer in Taiwan .
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OEM Customers - Australia
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OEM Customers – South Africa
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OEM Customers – Asia
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OEM Customers – Europe
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OEM C us omers – t S ou th A mer ca i
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- Recent initiatives:
1. New Technology Project “Thor” – release Q1 2011 New optimised substrate DataDots.
DataDots made from new materials including stainless steel, polymers, metals, and heat resistant materials for specific environments such as extreme heat , cold , high salt, high UV, consumable.
New Beacon-Dot patent pending technology
The beacon dot provides law enforcement with a special electronic locator to easily find and identify a DataDot.
2. National Motor Vehicle Theft Reduction Council (NMVTRC) “ - Certification of compliance under their stringent Secure Micro dot Vehicle Marking Systems” criteria.
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- Recent initiatives (continued)
3. New OEM’s
Continuing to demonstrate the effectiveness of DataDot ’ s theft prevention capability:
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Chile – Subaru
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South Africa – Mercedes Benz, Renault and Suzuki
Chile Subaru Launch – 19[th] Nov. 2011 Left > Right:
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Ministery of Interior representative
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BCI i nsurance company represen a t ti ve
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Subaru representative
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Municipality mayor (hosting the event)
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José Luis , GM , DataDot Chile
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Police representative
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Ernesto Ferrari, DataDot Chile
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- Recent initiatives (continued)
4. New Distributor DataDot Asia
A new joint venture in China with long term successful partner DataDot Taiwan. Rights to distribute DataDot and DataTraceDNA products in China. This is an exciting opportunity with DataDot Taiwan contributing up to US$500k for business d eve opmen an l t d wor ki ng cap it a over l th ree years n re urn or i t f th e cense r g li i ht s.
5. Renewed Distributors
Renewed distribution in auto/aftermarket with Capital Group in USA – trading as DataDot Dealer Services. Now re-investing in business development with sales running 42% ahead of last YTD.
6. E urope
DataDot’s distributor in Italy recently announced a deal to distribute aftermarket DataDot products via Bosch Car Service centres throughout Italy.
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- Recent initiatives (continued)
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7. Insurance Business Development DataDot won a competitive tender with Allianz Australia. This has commenced with a pilot in their prestigious “Club Marine” brand and was launched at the Sydney International Boat Show.
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- Recent initiatives (continued)
8. DataDot USA (Subsidiary manufacturing and marketing Co.) E xpan di ng y nvest ng n us ness eve opment resources n t b i i i b i d l i h e USA an d Canadian market.
9. Continuation of Crime Stoppers relationship DataDot has extended its relationship with Crime Stoppers Australia for three additional years allowing access to the highly regarded Crime Stoppers Brand. DataDot USA has a similar arrangement with Crime Stoppers USA.
10. Relegen – assetDNA
DataDot has extended its important strategic relationship with Relegen to mutually market the assetDNA brand and baseLINE asset management software throughout t h e r respect ve networ i i k s.
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2
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A leading global solution incorporating CSIRO developed technology
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Engineered micro particles with unique tracers,
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Presence and concentration detectable by specially developed portable reader,
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“
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• Awarded prestigious DuPont Innovation Prize ” in 2008
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Featured in the Australian Technology Showcase from November 2010 onwards.
“If terrorism did not exist, counterfeiting would be the most damaging criminal act of the early 21st century. Every year counterfeit products and illegal overruns rob companies & governments of hundreds of billions of dollars and counterfeit drugs & spare parts kill thousands of people.” The World Customs Organisation
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The DataDot CSIRO acquisition
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DataDot acquire the remaining 50% of DataTraceDNA JV it doesn’t already own,
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DataDot will issue to CSIRO ~ 9% of ordinary shares for transaction,
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DataTraceDNA will be assigned the Intellectual Property that is presently licensed,
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DataTraceDNA will be able to access previously excluded fields for the technology:-
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1) Currency,
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2) Passports,
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3) National Identification documents and instruments, and
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4) National Security (defence solutions).
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DataDot was already responsible for 100% of costs – now it can achieve 100% of .
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profits
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Future market o ortunities pp
DataTraceDNA has developed a range of world-class . solutions for authentication and brand protection
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Casino chips
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Pharmaceutical
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Textiles
US Chamber of commerce expects that counterfeiting is expected to grow from US$500 BN to US$2 Trillion in the next 20 years.
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Security printing
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Bulk material product identification
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Agricultural seeds
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Continued growth through additional international distribution agreements.
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Client funded R&D work using innovative laser analysis techniques.
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New patent pending system for product authentication.
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Recent initiatives
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Authentication patent – using new technology
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Investment in new third generation readers
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C1 Reader – Single code reader (lowest cost),
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M1 Reader – Multi Code Reader (moderate cost), and
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P1 Reader – Bulk commodities and specific analysis (higher cost tailored reader).
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Working with electricity utilities to reduce cable theft
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Patent pending “AuthentiCable” product is being trialed in cable manufacturers, and
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oExisting infrastructure solutions being deployed via DataDot/DataTraceDNA networks- .
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New DataTraceDNA application method – allowing metal and DNA
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plastic coatings of DataTrace to be applied.
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N ew partner n sur ace coat ng tec i f i h no ogy a l ll ow ng access to t i h e parts aut h ent cat on mar i i k et or f third shift/diversion control and for warranty authentication, and
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Will also allow DataTraceDNA to be applied to metal fashion items such as jewelry and watches for Brand protection.
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Recent initiatives ( continued )
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P ro d uc t s ewar t d s hi p c / h a n-o - i f custody management solutions
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New initiatives allowing point source identification of dangerous contaminants such as asbestos, and
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DataTraceDNA incorporated into products to identify future responsibility for clean.
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up or warranty
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Included in the Australian Technology Showcase
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u s sho w case w u nities
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Prestigio ith opport for marketing and business development.
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3 .
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Theft of copper
cable is a
US$1bn p.a.
annual problem
in Africa alone.
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Our products - 4. Our award winning products
Global seed industry security, coating and seed enhancement
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IntelliSeed[TM,]
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IntelliBright,
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Seedworx , SeedXcell , Seed enhancement products ,
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IntelliGlow,
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IntelliLabel, and
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baseLINE[TM] .
Global seed industry is US$38bn p.a., counterfeiting of seeds ranges from 30% to 65% in developing countries.
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Our products Progress
Customers
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GlaxoSmithKline (Australia)
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Ankur Seeds
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IntelliSeed[TM] is being trialed by prospective customers in
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India ,
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USA,
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Australia,
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Europe , and
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Asia.
Development of an extensive range of product offerings
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Our products
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DataDot Technology Limited – consolidated financial results
| 2009/2010 | (A$000’s) | (A$000’s) | (A$000’s) | ||||
|---|---|---|---|---|---|---|---|
| • | Revenues | � | 23% | 8 160 , |
to | 10 011 , |
|
| • | Gross Profit | � | 39% | 4,788 | to | 6,667 | |
| • | Operating Expenses | � | 16% | 6,148 | to | 5,180 | |
| • | Net Profit after Tax | � | (10,817) | to | 931 | ||
| • | EBITDA | � | (9,187) | to | 1,287 | ||
| • | EBITDA (excl. EI) | � | (429) | to | 1,490 | ||
| • | C h b k as at an |
�136% | 761 |
to | 1 796 , |
||
| • | Total Assets | � | 10% | 4,667 | to | 5,140 | |
| • | Net Assets | � | 41% | 2,260 | to | 3,171 |
- Operating cashflow � by 4,257 [ Outflows in 2009 of 2,383 : inflows in 2010 of 1,875 ]
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Ke future business develo ment initiatives y p
1. Genuine Parts Authentication
DNA (combined DataDot and DataTrace products):
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Computer manufacturers, and
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Auto manufacturers.
2. Environmental program
DNA (combined DataDot and DataTrace products):
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Supported by the EPA, and
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Supported by local government.
3. Cable/Metal Protection program
(combined DataDot, DataTraceDNA and AuthentiCable[TM] ):
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In conjunction with Crime Stoppers, and
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Utilities in USA , Canada , UK , NZ and Australia .
4. Warranty and theft waiver products:
- Enhance DataDot offering in retail auto market in Australia, South America , Canada and other markets .
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