DATADOT TECHNOLOGY LIMITED — AGM Information 2017

Nov 23, 2017

• Chief Executive Officer’s Presentation Annual General Meeting

24 November 2017

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The outlook for FY 2017/18 is positive Expenses will continue to be tightly controlled. With prudent investment in growth when warranted

In our micro-dot business there are opportunities to add scale with Toyota in Europe and in the US aftermarket

With a broader authentication value prop we are well placed to take advantage of global growth in counterfeit (and its impact on consumers and brand owners)

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Internally we continue to renew and adapt to the changing opportunity and customer

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We have a strong and growing pipeline of authentication business. Conversion and further lead generation are priorities

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Our outlook is positive!

4 © DataDot Technology Ltd. All Rights Reserved.

• Expenses will continue to be tightly controlled. With prudent investment in growth

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Expenses
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$0
2015/16 2016/17 2017/18 (forecast)
Millions
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2017/18 Expenses forecast to be under $4 million, includes a prudent investment in lead generation, eg

• Webinars, and • Social media campaigns 12% ($0.55m) improvement vs 2016/17 and 34% ($1.78m) improvement vs 2015/16 Cash flow neutral to positive depending on realization of new revenue (YTD +25k). No need to raise further capital Well placed to translate revenue growth into earnings. Increased revenue from an efficient and effective cost base critical to success Resultant bottom line improvement becoming evident: • Sept and Oct both EBITDA and NPAT positive • Oct YTD: EBITDA (87k) and NPAT (214k); Jul/Aug are historically low revenue months

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The global growth of counterfeit means that Authenticity& Trust are more important than ever Counterfeiting is a significant global problem …And has permeated all industries, damaging …Exposing consumers to toxic substances, that is now at least 7 times larger than what it company brands, reputations and profits… resulting in dire consequences and mistrust… was in 2009… 10% of medicines worldwide are fake. Global impact of counterfeit 650,000 deaths occur each year from 60% contain no active ingredients, 16% goods in 2015, up from $250 counterfeit medicine containing toxic $1.77 billion in 2009 have incorrect ingredients (World Health and ineffective substances (OECD Report) (WHO) Trillion Organization WHO) 54,000 babies were hospitalized and 6 70% of all wine sold in China is of all wine sold in China is died in China from counterfeit baby The Global Counterfeit market estimated to be counterfeit (World formula containing melamine (Wikipedia)(Wikipedia) Trademark Review) is the size of Italy’s GDP, the 9th largest economy (OECD)(OECD) 149 ~80% of all olive oil sold in the U.S. of all olive oil sold in the U.S. people died in the U.S. from counterfeit blood thinner Heparin in contains lower grade oils and impurities 2008 7% of all global trade is (Forbes) (US FDA) 7% estimated to be in counterfeit 74 people died in Russia from people died in Russia from goods (World Customs (World Customs 33% of all fish sold in the U.S. is of all fish sold in the U.S. is counterfeit vodka in 2016 (Wikipedia) Organization) fraudulently labelled (Oceana)(Oceana) Estimated number of legitimate 5,300 product recalls of pet food in the product recalls of pet food in the Consumers now rank product safety, global jobs at risk from U.S. due to melamine contamination experience and transparency as key counterfeit goods is 5.4m (OECD Report) by Chinese manufacturer. Cost of drivers in purchase decisions (Deloitte (Deloitte 5.4 US Consumer Trends 2016) recall and legal claims ~$100m (US FDA (US FDA million

70% of all wine sold in China is of all wine sold in China is died in China from counterfeit baby The Global Counterfeit market estimated to be counterfeit (World formula containing melamine (Wikipedia)(Wikipedia) Trademark Review) is the size of Italy’s GDP, the 9th largest economy (OECD)(OECD) 149 ~80% of all olive oil sold in the U.S. of all olive oil sold in the U.S. people died in the U.S. from counterfeit blood thinner Heparin in contains lower grade oils and impurities 2008 7% of all global trade is (Forbes) (US FDA) estimated to be in counterfeit 74 people died in Russia from people died in Russia from goods (World Customs (World Customs 33% of all fish sold in the U.S. is of all fish sold in the U.S. is counterfeit vodka in 2016 (Wikipedia) Organization) fraudulently labelled (Oceana)(Oceana) Estimated number of legitimate 5,300 product recalls of pet food in the product recalls of pet food in the Consumers now rank product safety, global jobs at risk from U.S. due to melamine contamination experience and transparency as key counterfeit goods is 5.4m (OECD Report) by Chinese manufacturer. Cost of drivers in purchase decisions (Deloitte (Deloitte US Consumer Trends 2016) recall and legal claims ~$100m (US FDA (US FDA and Wikipedia) Authenticity and Trust are the new imperatives for brands. A key opportunity for companies to differentiate and build brand value through product authentication and consumer engagement. © DataDot Technology Ltd. All Rights Reserved.

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With a broader authentication value proposition we are well placed to take advantage of global growth in counterfeit Modern tamper evidence DataTrace Data Smart Packaging Solutions DataTrace Covert Marking and serialization Aggregation •OTF (Optically Thin Film) •Smart phone based platform •Best in class covert marking •Cloud based reporting and Proprietary Technology & that provides consumer with solution aggregation of DataTrace Process (Trade secrets & authenticity assurance scanning results patent pending) •Adaptive applications, can be •Enables marketing added to inks, caps and labels •Simple and efficient •Serialization and variable QR communications with identification of hotspots codes, can act as smart Consumers •Currently deployed by Global packaging enablers Pharmaceutical and FMCG •Data feed can be added to •Provides data analytics other systems capability

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We have a strong and growing pipeline of authentication business. Conversion and further lead generation are priorities • Authentication Pipeline Leads (#) Includes global pharmaceutical, FMCG and Industrial brands 51 • Several leads estimated to be worth more than $1m each • Discussions with current customers to broaden and scale deployment 12 • Scaling lead generation, conversion and relationships priorities for FY2017/18

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51
12
Pre-Pricing Pricing
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In our micro-dot business there are opportunities to add scale with Toyota in Europe and in the US aftermarket Recurring revenue base Global volume growth New major OEM deal Significant global potential 86% 1m + Toyota 1% New OEM relationship of Dots revenue is recurring Dots kits sold in FY17 with New OEM customer - Toyota DataDot currently produces revenue through our growth in major customers Germany and potential for kits for <1% of global OEM existing customer base and regions growth in US aftermarket annual production which presents significant growth potential

Recurring revenue base Global volume growth 86% 1m + of Dots revenue is recurring Dots kits sold in FY17 with revenue through our growth in major customers existing customer base and regions

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Internally, we continue to renew and adapt to the changing opportunity and customer Brand New sales process implemented, based on solution development (for complex products) Clear identity, particularly for Operations authentication (quite different to anti-theft); new website has just gone live COGS improvements in Dot People & Culture manufacturing implemented Thought leadership and to further improve on lower social media activity to cost base increase Organisational restructure at the beginning of FY2018 Additional options being considered, for example Modernisation of planning, centralization and transparency and how we outsourcing of non-critical work together processes

Sales New sales process implemented, based on solution development (for complex products)

People & Culture Organisational restructure at the beginning of FY2018 Modernisation of planning, transparency and how we work together Improving accountability the key

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© DataDot Technology Ltd. All Rights Reserved.

The outlook for FY 2017/18 is positive Expenses will continue to be tightly controlled. With prudent investment in growth when warranted

In our micro-dot business there are opportunities to add scale with Toyota in Europe and in the US aftermarket

With a broader authentication value prop we are well placed to take advantage of global growth in counterfeit (and its impact on consumers and brand owners)

==> picture [488 x 493] intentionally omitted <==

Internally we continue to renew and adapt to the changing opportunity and customer

==> picture [488 x 493] intentionally omitted <==

==> picture [488 x 493] intentionally omitted <==

We have a strong and growing pipeline of authentication business. Conversion and further lead generation are priorities

==> picture [488 x 493] intentionally omitted <==

Our outlook is positive!

11 © DataDot Technology Ltd. All Rights Reserved.

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Unit 9, 19 Rodborough Road Frenchs Forest, NSW 2086 AUSTRALIA

www.datadotdna.com info@datadotdna.com 61-2-8977-4900

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