DATADOT TECHNOLOGY LIMITED - Investor Presentation 2017

FY17 Results Overview FY18 Focus Areas

August 2017

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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.

In FY17 a significantly improved cost base delivered a positive earnings trend Key Drivers of the FY17 Result Expenses improved Price erosion in auto by $1.23m (22%) sector ($0.8m) Authentication FX movements, particularly revenue up 17% to with regard to EU ($0.4m) $1.0m DataDotDNA volumes Lower Royalties up slightly ($0.1m) EBITDA improved 43% to a loss of $0.84m NPAT improved 58% to a loss of $1.38m Cash as 30 June 2017 was $1.77m. Cash flow Well placed to translate revenue growth into neutral to positive depending on realization of new earnings. Increased revenue from an efficient and revenue. No need to raise further capital. effective cost based critical to success.

Price erosion in auto sector ($0.8m) FX movements, particularly with regard to EU ($0.4m)

Lower Royalties ($0.1m) NPAT improved 58% to a loss of $1.38m Well placed to translate revenue growth into earnings. Increased revenue from an efficient and effective cost based critical to success.

During FY17 there were a number of positives, headlined by the broadening of our authentication product suite DataDotDNA DataTrace $2.3 trillion Auto sector volumes a ~~t~~ Significant The global economic value Partnerships being record levels, although of counterfeit and piracy by broadening of actively sought to 2022 unit pricing has product suite: International Trademark Association and the International assist in scaling Chamber of Commerce reduced. Overall microdot business. • volumes up slightly. High performance 8 of the Company’s top tamper evidence 10 near term prospects and serialization are now from its • COGS improvements Smart packaging Authentication business Opportunities to solutions identified, some (as at 30 June 2017). renew distribution or • DataTrace Data margin to be other arrangements recaptured in Aggregation Strong pipeline with in China and France. FY2018. significant brands (See page 8)

$2.3 trillion The global economic value of counterfeit and piracy by 2022 International Trademark Association and the International Chamber of Commerce

8 of the Company’s top 10 near term prospects are now from its Authentication business (as at 30 June 2017). Strong pipeline with significant brands and opportunities.

Looking ahead revenue growth from existing customers, closing current leads and new lead generation is the priority Growth from existing Efficiency: New markets via • relationships: Film supplier rePartnership: • • Scale US auto negotiation Global partners to aid in • Product review • Close EU OEM ops distribution & product • Consider outsourcing and development centralization options •

New markets via Partnership: • Global partners to aid in distribution & product development • China strategy

Growth from existing relationships • Global pharma and FMCG Companies • Beston JV

Close current leads and multiply lead gen:
8 near term opportunities > $100k pa
Lead generation program focused on target segments

Embed and communicate Trust Enhancement VP: • Digital platform • Tamper evidence • Data aggregation

Behind the scenes we’ve also been improving our ability to execute New Sales Process Organisational Re-Structure Culture
• • • Based on complex sale In July re-structured into Renewal – 50% of key literature functional rather than roles now < 2 years
• tenure
Focuses on assisting regional teams (apart •
customer to understand from EU) Improved processes to •
all dimensions of their 2 terminations support accountability •
problem and then Now lean cost base and transparency • •
develop and evaluate Greater use of external Teamwork and forward options expertise planning getting there
• Customer (not Technology) focused

And our pipeline is building, particularly in DataTrace • Growing proportion of our leads are now in DataTrace – dedicated lead gen program with new product suite should see this increase during FY17/18
• Whilst the majority of DataTrace leads are in the US and Aust, the EU is also starting to yield organic leads – we plan to build on this in FY17/18
• Dots continues to have high stable recurring customer base
• Dots Existing Partnerships the key to generating new Trace Existing
Dot leads

Pipeline Composition (Unweighted) Dots Existing Dots New Trace Existing Trace New

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DataDot anti-counterfeit solutions are focused on increasing
consumer trust levels and reducing counterfeit risk
Consumer Trust
High performance tamper
Solutions
evidence and serialization
•
OTF (Optically Thin Film)
Proprietary Technology & Process
(Trade secrets & patent pending) Smart Packaging Solutions
• •
Serialisation and variable QR Smart phone based platform
codes, can act as smart that provides consumer with
packaging enablers authenticity assurance
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Smart Packaging Solutions
•
Smart phone based platform
that provides consumer with
authenticity assurance
•
Enables marketing comms
with Consumers
✔
•
Provides data analytics
capability
Covert
Anti-counterfeit
DataTrace Data Aggregation
Solutions
•
Cloud based reporting and
aggregation of DataTrace
scanning results
•
Simple and efficient
identification of hotspots
•
Data feed can be added to
other systems
(customisation required)
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DataTrace Covert Marking • Best in class covert marking solution
• Highly flexible, can be added to inks, caps and labels
• Currently deployed by Novartis for glass ampules

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

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