ION VIDEO LTD — Investor Presentation 2017

Sep 4, 2017

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Engineering Intelligent Content Investor Presentation - September 2017

• Company

• Near Term Goals

• Virtualisation explained

• Commercialization • Team

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DISCLAIMER

This presentation has been prepared by Linius Technologies Ltd (“LNU”). The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context.

The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this presentation, LNU has not considered the objectives, financial position or needs of any particular recipient. LNU strongly suggests that investors consult a financial advisor prior to making an investment decision.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of LNU, its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation.

This presentation includes “forward looking statements” within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of the words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” “guidance” and other similar expressions. Indications of, and guidance on, future earning or dividends and financial position and performance are also forward-looking statements.

Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of LNU and its officers, employees, agents or associates, that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward looking statements and LNU assumes no obligation to update such information.

This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment. Any offer or sale of securities will be made pursuant to definitive documentation, which describes the terms of the offer (Offer Document). An Offer Document for any offer of securities in LNU will be made available when the securities are offered. Prospective investors should consider the Offer Document in deciding whether to acquire securities under the offer. Prospective investors who want to acquire securities under the offer will need to complete an application form that is in or accompanies the Offer Document.

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of LNU have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.

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Introduction to Linius

Virtualization of data is nothing new in the software world, big data depends on it…. but it has never been achieved in the biggest data of all….Video.

Until now.

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The world of Internet video is huge

By 2019, the world’s internet traffic will exceed 180 billion gigabytes per month. More than 80% of internet traffic and 64% of mobile traffic is video.

Cisco, 2015

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Globally Patented Technology

• Linius Video Virtualisation Engine[TM] (VVE)

• Patents are fully granted

• US, EU, Canada, S. Korea, PRC, Hong Kong, Singapore, Australia and India.

• Linius continue to file new patents in

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line with our commercialisation strategy.

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Technical Validation - VVE

Our VVE product is complete, validated by third parties, globally patented, and transforms the world of video without interrupting existing workflows:

November, 2016:

Linius and Digisoft publicly demonstrated personalized advertisements on commodity cable TV hardware - something never before possible.

December, 2016:

March, 2017:

June 2017:

Village Roadshow conducted independent tests, verifying the core capability of video virtualization Linius virtualized Instagram and provided a public playground where people can interact with virtual video Linius announce partnership with IBM to deliver global solutions

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Near term goals

Linius has launched its commercialisation strategy, hired the commercial leaders and has an active new business pipeline.

Near term commercialisation goals include:

• Deliver the integration of VVE with at least one world leading Over The Top (OTT*) platform

• Deliver the integration of VVE into IBM’s BlueMix Cloud

• Convert initial deal flow with IBM

• Deliver the integration of VVE into Microsoft Azure

• Deliver the integration of VVE with Major OTT ad servers

• Engage with a global movie studio to develop Proof of Value (POV) in anti-piracy

• Engage with a global movie studio to develop a mass content distribution POV

• Deliver an end to end piracy solution with a movie studio

• Deliver POC of Search in a global cloud environment

• Deliver the integration of VVE with at least one cognitive AI provider

• Deliver blockchain strategy and solution design

• OTT – a broadcaster that broadcasts over the public internet

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Video Virtualization explained

• Linius virtualises video, separating the raw data from its container

• No video should ever play without all parties being in agreement

• The video’s data will not leave the owners environment until this agreement is made

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Virtualized Video

Origin video

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Large, inflexible, impenetrable video file

Virtual video

Virtual file

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A virtual representation of the origin file Index of Audio & Video data File size < 1% of origin file

Exposes database of Audio & Video binary data

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Playing A Virtual Video

Virtual video

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Exposes database of Audio & Video binary data

Virtual file requests video data

Virtual file

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Virtual file requests the video data

Assemble and playout

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Re-assemble on the fly

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Applying Business Rules

Virtual video

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Audio & Video binary data

The data is exposed

Hyper-personalisation: Splice content from multiple sources, on the fly e.g. advertising Security:

Add anti-piracy tools DRM Search: Extract specific pieces of video

Apply computing science

Virtual file

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Virtual file requests data

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----- Start of picture text -----

Assembly and
playout
----- End of picture text -----

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Re-assemble on the fly

• AI

• Data management

• Tools

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Commercialization

• The video value chain comprises several multi- billion dollar markets and is growing strongly

• It is bloated with costs and inflexibility through the eight steps from recording to audience playout

• Linius has an impact at every stage and fits within current revenue models in each case

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Starting with Four Multi-Billion Dollar Markets

Personalized Advertising $193 bn Worlds first to deliver personalised ads to Cable TV Personalized advertising average of 2.7 x the revenue per ad vs. nontargeted

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Search Anti-Piracy $82 bn $22 bn Currently, 80% of the $22 billion p.a. of world’s Internet traffic box office revenue is video. lost to piracy Linius can search the Linius has an end to content on a granular end solution level never before dreamed of

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Security and Security & DefenceDefense $22 bn Linius could potentially cut the time to take action on a threat from hours or days to minutes

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Anti-Piracy – end to end solution

The Linius Video Vitualization[TM] Engine will prevent piracy by:

• Countering industrial espionage and hacking during production/post-production processes

• Making sniffing the stream impossible

• Controlling copying and redistributing of the file subject to each specific clients’ business rules/needs

• Facilitating screen scraping management that allows forensic traceability to the exact origin

• ” We are particularly interested in the anti-piracy solutions Linius are developing and are actively working together with Linius to introduce its technology to industry leaders to reduce global piracy. ”

Rob Kirby, CEO of Village Roadshow

Revenue Model: License plus cost per play

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Personalized Advertising

No two streams ever need be the same again:

• Internet style, data driven, individually targeted advertisements in all forms of TV

• No limitation on timeslots – run a personalized ad in a contextually relevant slot

• No limitation on format – integrate advertising into the content

• No Ad blockers in OTT – there is no channel change

• Own the data – disrupts current monitoring industry

Revenue Model: License plus cost per ad served Revenue share on ad revenue

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Hyper-personalized Search

Video Search is ineffective. Search results are essentially lists of videos.

Linius turns video into data exposing the entirety of the video content library to the users down to the individual frame. This gives users limitless opportunities to find the content they are looking for

• Linius can search within videos and present specific relevant pieces of videos as search returns

• Hyper-personalized search results represent huge value creation

• Billions are being invested in Cognitive AI tools such as Watson and DeepMind - These tools analyze and learn about video

• Linius can use this analysis to create personalized videos on the fly

• Users are able to stitch together elements of videos that meet their search criteria providing a rich search experience. Better search experience means greater monetization.

Revenue Model: Cost per search. Revenue on AI / 3[rd] party margins

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Security and Defense

Dramatically improved Speed to Actionable Intelligence

• Proactive surveillance that can help identify threats to be stopped before they happen

• Immediate distribution of high value video surveillance content among disparate agencies and actors

• Better enable agencies and authorities to identify and avert threats

• Turns video analysis into actionable intelligence in minutes instead of days

Municipal, State, and Federal governments, defense and intelligence agencies can finally begin to use the petabytes of data they’re creating, from satellites to body-cams

Revenue Model: License plus cost per search

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IBM Partnership

Linius can sell established IBM Bluemix products integrated with VVE to speed delivery time for customers

• IBM can sell Linius VVE, enabling new revenue opportunities across all four target verticals

• The IBM partnership provides

• a market model that matches our clients needs: cloud, private, hybrid-cloud

• proven Bluemix applications

• over 300,000 employees to help go to market in the large enterprise

• an existing client base that includes the “who’s who” of Linius’ prospects

• IBM is a world leader in blockchain technology - Linius’ technology makes what IBM has even better

• IBM Watson is a world-leading cognitive AI. Linius monetizes this intelligence to create hyper-personalized video experiences in search, personalized advertising and security and defense applications.

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The Team

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A World-Class Video Commercial Team

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CHRIS RICHARDSON Executive Director and CEO

Chris is an accomplished internet video executive with more than 20 years of experience leading tech companies in the US, Europe and Asia. Since 2010 has held GM level roles in public and private video technology companies globally, after spending 10 years in Silicon Valley leading product management for VC funded startups

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KEVIN KYER EVP, Search

Kevin has worked in the digital space for almost 20 years, building advertising businesses across the globe. Most recently, he drove the growth of Listlgobally, a global real estate advertising site in over 50 countries. Prior to that, he spent 10 years at Yahoo. His tenure there saw him participate in the building Yahoo’s search platform, lead the turnaround of it’s European division, implement a strategic partnership with Microsoft. Prior to Yahoo Kevin held various marketing and business development roles for digital economy businesses

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KEN RUCK

EVP, Personalized Ads

Ken has scaled both start-up and large media companies, with rich experience in video, digital media, and AI; most recently as Chief Innovation Officer for Kodak. Previous roles include Head of Wireless MTV, VP Global Digital Jim Henson, Global New Products for Turner, and GM of Content for Virgin Mobile. Ken also was on the founding team of successful start ups Oberon Media ($800 mil valuation,) Flash Networks, cPulse and Hemisphere Interactive.

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PETER COHEN EVP, Anti-Piracy

Peter has been a senior media and entertainment executive in multiplatform content production, programming and distribution. He has worked as VP Sales/Marketing at HBO, SVP Distribution CNN International, SVP MuchMusic USA, Sr. EVP

Content/Digital Billboardlive, and SVP Programming at MTV/The Box Music Network. Most recently he was Head of Business Development for Experience Proximity, a leading mobile AR/VR company in Los Angeles.

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A World-Class Video Commercial Team

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Tristan Place

Country Manager ANZ

Tristan Place is a digital technology sales executive with 15+ years experience in established, startup, and early-stage software, professional services and applications companies focused on video. His broad IT knowledge across enterprise software, SaaS and bespoke applications for OTT IPTV, ViOD, TVE and related 2[nd] Screen services has earned him recognition as a business model and technology Subject Matter Expert. Tristan has worked with Telstra, Foxtel, Network Ten, Skyracing, News Corp and many others in delivering transformational video technologies to their businesses.

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Audrey Ku Chief Solutions Architect

Audrey has vast experience in the Digital Media Entertainment space, worked for broadcasters, telco and start-up on video technology and its digital strategy for successful transformation into the digital world of Entertainment. During her Foxtel times, she leads the content factory transformation, architected 2012 London Olympic Games, 2010 Vancouver Winter Games, Foxtel on XBOX and Foxtel hybrid STB, Most recently with Telstra, architected globally renowned integrated OTT platforms including Telstra Bigpond Movies in Australia, StarHub Go in Singapore, Tonton in Malaysia, Blink TV in Phillipines and Mediaset in Spain.

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Ivan Benko Chief Solutions Architect

Ivan has been involved in the digital media space for over a decade. He is equipped with rare hybrid skills, both technical as well as business, enabling him to deliver highly complex projects. He was one of the key people who helped to establish the most successful Australian based software house, Atlassian back in 2009. Since then he has spent time in consulting at Thoughtworks and across the digital media agency scene, assisted various startups and gained invaluable knowledge at Akamai. Example of projects include Stan.com, Yahoo!7, Channel 7,9,10, Skyracing.

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Gerard Bongiorno Chairman

Gerard is Principal and Co-CEO of Sapient Capital Partners, a merchant banking operation and has over 25 years of professional experience in capital raisings and corporate advisory.

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Linius Technologies Ltd (ASX: LNU)

Share Information

Capital Markets Highlights

ASX ticker symbol LNU Listing date 9 May 2016 Listed shares 324.0m Total shares on issue 709.2m Undiluted market capitalisation $34.0m Unlisted options 73.0m Cash raised on re-listing (before costs) $3.5m

• Raised $3.5m in March 2016

• Listed on ASX May 2016

• Raised $0.5m in Sept 2016 through placement to key industry player

• Raised $1.5m with strategic Investment from Village Roadshow in July 2017

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Contact

Linius Technologies

Christopher Richardson, CEO info@linius.com +61 3 8680 2317

Investors ir@linius.com Press and Media pr@linius.com

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End of presentation. Thank you.

linius.com