DATADOT TECHNOLOGY LIMITED — Investor Presentation 2014

Oct 2, 2014

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Corporate Overview October 2014

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Company Presentation - September 2013
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DataDot Technology Limited - Disclaimer

Disclaimer:

This presentation has been prepared by DataDot Technology 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 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 or 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 of this information. However, actual results may vary from projected results and any variation may be material positive or negative. Forward plans, by their very nature, are subject to uncertainty and contingencies many of which are outside the control of DataDot.

Past performance is not a reliable indication of future performance.

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Index

1.0 Overview

1.1 Corporate Data

• 1.2 Global Network

1.3 Core Technologies

1.4 Key Automotive Clients

1.5 Key Industrial Clients

• 2.0 Diversification and Growth Strategy

2.1 DataDot DNA

2.2 DataTrace DNA

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• 3.0 Financial Performance

• 4.0 Investment Summary

5.0 Appendix

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1.1 Corporate Data

• Leading asset protection, theft deterrence, anticounterfeiting and authentication company

• Australian Stock Exchange listed in 2005 (ASX:DDT)

• Market capitalisation: $20.5 million (at 3.2₵ per share)

• Issued Capital: 641 million shares

• Available Cash: $2 million (as at 31 July 2013)

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• Major Shareholders:

• Thorney Investments 6.51%

• Bannaby Investments 4.68%

• Rathie Investments 3.9%

• Collin Hwang 3.69%

• Dixson Trust 2.73%

• CSIRO 2.14%

• Directors:

• Bruce Rathie (Exec. Chairman)

• Gary Flowers

• Alison Coutts

August 2013 to August 2014

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1.2 Global Network

Distributors and Subsidiaries (UK & USA) in more than 20 countries, with manufacturing in five countries

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1.3 Core Technologies

DataDotDNA[®]

Tiny polymer or metal discs with unique identifying codes, can be brushed or sprayed onto assets.

DataDotDNA can be read with a simple magnifying device and has the primary objective of deterring and preventing theft. The asset and its owner can be identified via a specific purpose database, accessible by law enforcement.

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0.5 to 1mm
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DataTraceDNA[®]

Forensic Tracers bond to the molecular structure of the host material, detectable in very small concentrations by a sophisticated smart reader developed by CSIRO and DataDot. The Tracers withstand explosions, fire and heat.

DataTraceDNA delivers authentication and detection management for the life of the product.

This technology was developed and patented by the CSIRO. DataDot now owns the technology and patents outright.

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1.4 Key Automotive Clients

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1.5 Key Industrial Clients

USA

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Heavy Equipment

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2.0 Diversification & Growth Strategy

DataDotDNA DataTraceDNA

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2.1 Diversification & Growth Strategy

Regional Strategy for DataDotDNA

Australia

• Push into industrial space including National Equipment Register + National Marine Register.

• Add Theft Deterrent System (warranty) where appropriate.

• Service existing customers (eg Club Marine, HSV and Subaru).

• Build relationships with insurers and law enforcement.

• Explore deployment of DataDot Live in insurance sector.

Other

• Develop Brazil.

• Further develop China and Asia

UK / Europe

• Develop France as a major market given appointment of distributor.

• Introduce Industrial product and Registers when appropriate.

• Italian market recovering.

USA

• Aggressively market Industrial products in utility, telco and oil & gas sectors based on success with Con Ed and Excel Energy.

• Develop additional distribution partners for CopDots in the insurance sector – possible evolution of product design.

• Further expand into Canada.

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2.2 Diversification & Growth Strategy

Global Strategy for DataTraceDNA

• Build on existing client base in gaming pharmaceuticals, food and beverages, tobacco etc.

• Pursue global branded product companies in US, Europe, Asia and elsewhere.

• Pursue initiatives in China in tobacco, consumer products, alcoholic beverages & auto spare parts.

• Exploit major opportunity in Australian and US defence industry.

• Continue development of reader capability to broaden target applications in uncontested market segments such as bulk materials.

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3.0 Financial Performance

AUD$m

Year	2010	2011	2012	2013	2014
Revenue	10.0	7.4	7.1	7.0	7.2_(*1)_
EBITDA	1.2	(0.19)	(1.2)	0.30(*3)	(0.84)
NPAT	0.93	(0.58)	(1.65)	(0.22)(*3)	(1.28)(*2)

• 2014 was a year of investment to rebuild and diversify revenue post GFC.

• Material cost savings will be captured due to annualized savings from rationalization undertaken in 2014.

• Budgeting for a return to profitability during 2015 building during this year.

• Approximately $2.0 million cash at bank.

Note 1: $7.37 if adjusted for revenue from Taiwan converted to royalty. Note 2: $0.57 loss if adjusted for start up and one-off expenses. Note *3: EBITDA and NPAT restated.

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4.0 Investment Summary

• 2014 continued the rebuilding of the company post GFC.

• Investments have been made in the US during 2014 when material start-up costs and one-off expenses were incurred.

• With nearly 50% of revenue coming from US and Europe, earnings are leveraged to reductions in the value of the AUD.

• Multiple “shots on goal” for material revenue growth in 2015:

• → Industrial product sales, particularly in US.

• → Recovery in auto sector, particularly in US and Italy.

• → DataTraceDNA has a strong pipeline with new opportunities in China and US coming on line.

• → Auto spare parts opportunities particularly attractive.

• → Registers being well received in the Australian market – particularly National Marine Register & National Equipment Register – with municipal councils and utilities targeted.

• → Global expansion – France, Brazil and Mexico.

• → Newly developed products to be deployed in 2015.

• → Opportunity for CopDots in insurance sector.

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5.0 Appendix

5.1 Industrial Product/National Metals Register

5.2 National Registers

5.3 CopDots

• 5.4 Global Genuine Parts Security Program

• 5.5 Australian and US Defence Industry

5.6 Bulk Materials

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5.1 Industrial Product / National Metals Register

• Industrial application gains in traction with adoption by Excel Energy and Con Ed (see ASX announcements).

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• Large and growing pipeline in the US.

View Con Edison’s press release http://www.coned.com/newsroom/news/pr20140730.asp

• Industrial product is sold with or without registrations on the NMR.

• Theft of copper in North America is a cost to public safety, corporate productivity and profitability.

• Direct losses are substantial - insurance claims to replace stolen air conditioning units alone exceeded US$1 billion in 2010 - and productivity losses resulting from copper theft are estimated to exceed US$1 billion per annum.

• Now 100% owned.

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5.2 National Registers

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• Built on a shared platform for simple, global law enforcement access

• Insurance agencies actively support the Registers because: policy holders who participate in theft prevention programs are usually a better risk; a theft alert enhances the likelihood of recovering the asset, the risk of fraudulent claims is diminished, investigators are motivated.

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5.3 CopDots

• Launched in May 2013 by Sherriff Doug Muldoon, President of FBINAA.

• Retailed in about 1,000 Lowe’s Home Improvement Stores.

• Exploring B2B avenues to market insurance.

• Manufactured in US production site.

• Now selling into Canada.

• Now 100% owned.

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5.4 Global Genuine Parts Security Program

The purpose of the DataDot Technology Genuine Parts Security Programme is to protect the integrity of the OEM Brands and legitimise authentic parts in response to damaging activities of:

• Counterfeit Manufacturers

• Third Shift Operations

• Parallel Imports

The outcomes targeted by the programme :

• Ensuring OEM customer safety/corporate integrity

• Mitigating risk of liabilities for failed false parts

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• Minimising warranty obligations against false parts

• Creating imperatives for authentic parts for insurers and repairers

• Increased sales for legitimate OEM parts

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5.5 Australian and US Defence Industry

• Counterfeiting is a major risk within the military and defence materiel industry.

• In both the US and Australia, investigations are underway to reduce this risk.

• DataDot Technology solutions are being considered in these investigations.

• A wide range of potential applications are possible, including but not limited to: o Assets and Parts

• Explosives and their chemical precursors

• Weapons and Ammunition

• ID and Security Cards

o Documents

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5.6 Bulk Materials

• DataTrace has identified as a growth area the application of its technology in industrial bulk materials. Selected industry segments are

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• Construction materials (paints, coatings, concrete)

• Agricultural products (seeds, fertiliser)

• Benefits include anti-counterfeit protection, eliminating false warranty claims and improving quality control.

• These high-volume segments are not comprehensively serviced by covert authentication solutions and therefore offer a promising opportunity for growth and differentiation.

• DataTrace is developing an innovative reader which will make the technology commercially feasible to be used in bulk materials.

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