ION VIDEO LTD — Investor Presentation 2018

Apr 9, 2018

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Making The World’s Video Accessible as Data

Investor Presentation – April 2018

ASX:LNU

DISCLAIMER

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This document has been prepared by Linius Technologies Limited ( LNU ). The information contained in this document 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 document is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. In preparing and providing this document, 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, or their shareholders, directors, officers, employees, contractors, 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 document.

This document 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”, “guideline”, “guidance” and other similar expressions. Indications of, and guidance on, revenue models, pricing, earnings and financial position and performance are also forward-looking statements.

Such forward-looking statements are not guarantees of future pricing, performance and events, and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of LNU, its related bodies corporate, and their directors, officers, employees, contractors, agents and advisors, 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. In particular, potential revenue opportunities and guideline pricing models set out in this document are based on certain assumptions which may in time prove to be false, inaccurate or incorrect. Readers are cautioned not to place undue reliance on forward looking statements and LNU assumes no obligation to update such information.

This document is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities in any jurisdiction, and neither this presentation nor anything contained in it forms the basis of any contract or commitment. Without limiting the foregoing, this document 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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Linius Is The Only Company That Can Virtualize Video

Why Do You Care?

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Video “works”, in the sense that we can watch video on the Internet. But the entire rest of the world of data is virtualized — only video isn’t. And the impact is that all of our computer science advances fail when it comes to video.

• Why can’t I search across videos?

• Why do movies lose nearly 20% of revenue to piracy, when we do all of our

• banking online without issue?

• Why is < 0.3% of security video every analyzed?

• The list goes on

Even though video is digital, legacy formats make it difficult or impossible to access the underlying data inherent in it

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Making the World’s Video Accessible as Data

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The Linius Video Virtualization Engine™ (VVE) transforms traditional video files, into data (or virtualized files), enabling unprecedented capabilities, flexibility & monetization.

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Accessing the data within the video file is the missing link for video cloud service providers, creating unparalleled value across the internet video industry.

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Even The Most Simple Example — Search — Demonstrates The Capability

A Simple Example — Today

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You get hundreds, or thousands of results — which are mostly irrelevant

Even when you get a “good” result, you may have to scroll through 20 minutes of garbage to find your 1 relevant minute

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Same Example, with Linius

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You instantly get a single, hyperpersonalized video, showing exactly what you want

Dynamically created from the raw data of the dozens of videos where your desired content rests

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But Virtualizing Video Offers Much More than This

Now Is The Time for Virtual Video

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Linius Owns the Virtualization of Video: Linius invented, built and patented the world’s only Video Virtualization Engine™(VVE)

Large & Expanding Market:

• Amazon, Microsoft & IBM are investing billions in video services (technologies) and artificial intelligence in the cloud

• It is arguably the biggest battle on the internet, given that video will account for over 82% of internet traffic by 2021

• Accessing the data within the video file is the missing link for video cloud service providers, creating unparalleled value across the internet video industry

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Linius Rapidly Scaling:

• Linius is now available on Microsoft Azure, IBM Cloud and Amazon Web Services, providing the ability to scale across multiple platforms

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• Linius, and others, are now building commercial products around Linius’ VVE

• Clients are buying-in

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Available as SaaS, in The Cloud, or on Premise

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Top providers are racing to virtualize video services. Linius virtualizes the actual video, providing the missing link.

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Linius VVE makes video accessible as data, for the first time. Video search & viewing will never be the same.

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*Linius is available on AWS, Microsoft Azure & IBM Cloud

By All Measure, The Market Is Gigantic

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Hyper-Personalized Videos

55% of people watch video online each day Market is growing at 20-40% pa

Snapchatters watch 10B videos a day 500M people watch video on Facebook everyday YouTube - 5B video views per day YouTube - 18% market share of video on internet Conservatively ~ 10B video searches per day

Security and Defense

Video surveillance is a $40B market 72M hours (822 years) of video acquired per day Video surveillance is 20% of UK’s criminal justice budget

Only 0.2% of all US federal video footage is ever viewed - it would take 7 million analysts to accomplish

Content Protection

Film piracy costs the US economy $20.5B per year 100B visits to pirate sites per year 432M internet users regularly pirate content In 2016, peer-to-peer distributors were responsible for 5.4B downloads of pirated wide-release films

Personalized Ads

The US TV advertising market revenues of $90B pa Total # of ads viewed ~9 - 12 trillion pa, in the US 225M consumers are active users of Ad Blockers With Linius, Ad Blockers do not work, saving this revenue

In all cases, Linius is paid per “view”

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Linius Owns the Virtualization of Video

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• Fully granted core patents in: US, EU, Canada, S. Korea, PRC,

• Hong Kong, Singapore, and Australia

• Filing new patents in line with our commercialisation strategy:

• 3 continuation patents granted in US

• multiple patents pending

• plan to continue expanding our IP protection

Point competitors exist in individual segments, but no one else can virtualize video today.

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Linius Has a 3-Pronged Strategy to Dominate The Space 1. Direct Sales for Strategic POCs 2. Global Partners to Commercialize 3. SaaS to Enable Future Innovation

The World’s Video is Going to Be Data: We’re Doing It

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Linius is aggressively targeting the largest brands and content libraries, and current commercial success includes announced trials and proofs of concept with Oklahoma State University, Warner Bros., Village Roadshow, and MediaAMP.

Hyper Personalized Content Experiences

• News

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• Sports

• Corporate Communication

Strategic POCs in Process

• Education

Content Security

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Strategic POCs in Process

SaaS

In trials with select engineers and partners

Blockchain

Strategy announced, in development

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Strategic Partnerships

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1. Linius can sell established IBM Cloud products integrated with VVE to speed delivery time for customers

2. IBM can sell Linius VVE, enabling new revenue opportunities across all four target verticals (Search, Security and Defense, Anti-Piracy & Personalized Ads)

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The IBM Partnership Provides:

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

• Proven Bluemix applications

• Validation of Linius and also execution resources

• 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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IBM Is The First of Many

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Our Announced Goals and Path to Success: The Last 6 Months

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In September, 2017, Linius announced 11 Near Term Goals. To date, we’ve complete 7, and three more are imminent

• Deliver the integration of VVE into IBM’s Cloud (Oct. 2017)

• Deliver the integration of VVE with at least one world leading Over The Top (OTT*) platform (Oct. 2017)

• Engage with a global movie studio to develop Proof of Value (POV) in anti-piracy (Oct. 2017)

• Deliver the integration of VVE into Microsoft Azure (Dec. 2017)

• Deliver blockchain strategy and solution design (Dec. 2017)

• Deliver the integration of VVE with at least one cognitive AI provider ( Dec 2017 )

• Engage with a global movie studio to develop a mass content distribution POV ( Feb 2018 )

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

• Deliver POC (proof of concept) of Search in a global cloud environment

• Convert initial deal flow with IBM

• Integrate with major OTT ad servers

Of the remaining four goals, the two deliveries are tied to already announced POCs in process, and conversion of IBM deal flow is imminent. Integration with ad servers was replaced by management in favor of launching a SaaS version of the software, which is currently in closed beta.

• OTT – a broadcaster that broadcasts over the public internet

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The Next 3-6 Months: Near Term Goals

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Previous goals were based on scaling the penetration of virtual video, and moving the company towards revenue. With this updated set of goals, Linius expects to continue with its business scaling efforts, but also start generating revenue:

• Deliver an end to end piracy solution with a movie studio (target Q2 2018)

• Deliver POC (proof of concept) of Search in a global cloud environment (target May 2018)

• Convert initial deal flow with IBM (target Q2 2018)

• Sign an education-sector reseller

• Close 2 revenue-generating deals in the education sector

• Close 2 revenue-generating deals in the sports sector

• Sign a second (beyond IBM) global “name” partner

• Close 2 revenue-generating deals (other than the two named above)

• Integrate IBM search capability

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The Company Great People in A Great Financial Position

A World-Class Video Commercial Team

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CHRIS RICHARDSON

KEN RUCK

Executive Director and CEO EVP, Personalized Ads

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KEVIN KYER

EVP, Search

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TOM SLOWE

EVP, Security and Defense

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PETER COHEN

EVP, Anti-Piracy

Chris is an accomplished internet Ken has scaled both start-up and video executive with more than 20 large media companies, with rich years of experience leading tech experience in video, digital media, companies in the US, Europe and and AI; most recently as Chief Asia. Since 2010 has held GM level Innovation Officer for Kodak. roles in public and private video Previous roles include Head of technology companies globally, after Wireless MTV, VP Global Digital Jim spending 10 years in Silicon Valley Henson, Global New Products for leading product management for VC Turner, and GM of Content for funded startups. Virgin Mobile. Ken also was on the founding team of successful start ups Oberon Media ($800 mil valuation,) Flash Networks, cPulse and Hemisphere Interactive.

Kevin has worked in the digital space for almost 20 years, building advertising businesses across the globe. Most recently, he drove the growth of Listglobally, 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 of 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.

Tom has worked in disruptive AI Peter has been a senior media and based technologies for over the last entertainment executive in multi20 years. An expert in machine platform content production, learning as applied to video & other programming and distribution. He big data, he leverages his technical has worked as VP Sales/Marketing & business development at HBO, SVP Distribution CNN background to achieve deep International, SVP MuchMusic USA, product/market fit. Prior to Linius, Sr. EVP Content/Digital Billboardlive, he held a number of executive and and SVP Programming at MTV/The founding positions where he was Box Music Network. Most recently responsible for providing products he was Head of Business and services to Fortune 500 Development for Experience companies in Retail, Advertising, Proximity, a leading mobile AR/VR Broadcast, Social, the US Intelligence company in Los Angeles. Community (IC) and Department of Defense (DoD). Tom received his BSEE from Rutgers University and 20 MS from MIT Media Laboratory.

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Share Metrics (ASX:LNU)

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Linius Technologies Limited
Share Price (as of 6th Apr 2018)	A$0.095
Market Cap	A$86.7m
Listed Shares Listed Options - A$0.16 Exp Sept 2019	507.2m 50.6m
Unlisted Options • 61.5m A$0.05 Exp Mar 2019 • 11.5m A$0.045 Exp Nov 2019 • 64.0m A$0.075 Exp May 2019 • 13.5m A$0.07-A$0.085 Exp Dec 2019 • 10m A$0.22 Exp Sept 2019 • 5.75m A$0.045-A$0.05 Exp June 2021	151.2m
Total Shares on Issue	912.4m
% Ownership of Management	7.5%

Linius Technologies Limited
Share Price (as of 6th Apr 2018)	A$0.095
Market Cap	A$86.7m
Listed Shares Listed Options - A$0.16 Exp Sept 2019	507.2m 50.6m
Unlisted Options • 61.5m A$0.05 Exp Mar 2019 • 11.5m A$0.045 Exp Nov 2019 • 64.0m A$0.075 Exp May 2019 • 13.5m A$0.07-A$0.085 Exp Dec 2019 • 10m A$0.22 Exp Sept 2019 • 5.75m A$0.045-A$0.05 Exp June 2021	151.2m
Total Shares on Issue	912.4m
% Ownership of Management	7.5%

Capital Markets Highlights

• Listed on ASX May 2016

• Raised A$3.5m (5 cents/share) in March 2016

• Raised A$0.5m (5 cents/share) in Sept 2016 through placement to key industry player

• Raised A$1.5m (5 cents/share) with strategic investment from Village Roadshow in July 2017

• Raised A$4.5m (5 cents/share) Oct 2017 in placement to sophisticated investors

• Raised A$0.8m in Dec’17/Jan’18 to date via exercise of options by holders of 7.5cent options

• Raised A$9.75m (12 cents/share) Feb 2018 in placement to sophisticated investors.

52-Week Price Chart (range A$0.04-0.21)

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21

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Making The World’s Video Accessible as Data

Christopher Richardson, CEO info@linius.com +61 3 9607 8234 Investors ir@linius.com Press and Media pr@linius.com