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ROOLIFE GROUP LTD Investor Presentation 2018

Nov 25, 2018

65712_rns_2018-11-25_6e7b158b-1806-4371-8afd-d2f8ecbf6acb.pdf

Investor Presentation

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ASX:OPN

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Digital Marketing to ACQUIRE ,

UNDERSTAND and CONVERT your customer

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23 November 2018

Disclaimer

Nature of this document: The purpose of this presentation is to provide general information about OpenDNA Limited (the ‘Company’). Unless otherwise stated herein, the information in this presentation is based on the Company’s own information and estimates. In attending this presentation or viewing this document you agree to be bound by the following terms and conditions.

Not an offer: This presentation is for information purposes only and does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in the Company in any jurisdiction. This presentation and its contents must not be distributed, transmitted or viewed by any person in any jurisdiction where the distribution, transmission or viewing of this document would be unlawful under the securities or other laws of that or any other jurisdiction.

Not financial product advice: This presentation does not take into account the individual investment objectives, financial situation and particular needs of each of the Company’s Shareholders. You may wish to seek independent financial and taxation advice before making any decision in respect of this presentation. Neither the Company nor any of its related bodies corporate is licensed to provide financial product advice in respect of the Company’s securities or any other financial products.

Forward-looking statements: Certain statements in the presentation are or may be “forward-looking statements” and represent the Company’s intentions, projections, expectations or beliefs concerning, among other things, future operating and exploration results or the Company’s future performance. These forward looking statements speak, and the presentation generally speaks, only at the date hereof. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks and uncertainties, and are necessarily based on assumptions, which may cause the Company’s actual performance and results in future periods to differ materially from any express or implied estimates or projections.

Disclaimer: No representation or warranty, express or implied, is made by the Company that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of the Company, its directors, officers, employees, advisers and agents expressly disclaims any responsibility for the accuracy, fairness, sufficiency or completeness of the material contained in this presentation, or any opinions or beliefs contained in this document, and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. The Company is under no obligation to update or keep current the information contained in this presentation or to correct any inaccuracy or omission which may become apparent, or to furnish any person with any further information. Any opinions expressed in the presentation are subject to change without notice.

Unverified information: This presentation may contain information (including information derived from publicly available sources) that has not been independently verified by the Company.

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OPENDNA(ASX:OPN) CUSTOMER-FOCUSSED DIGITAL SERVICES New company structure and capability

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UNDERSTAND
ACQUIRE
A.I. platform
Digital marketing
providing
driving customers
personalized real-
to engage via
time marketing &
mobile, web and
targeting of
digital channels . individual customers.
Online e-Commerce
marketplace for Australian
businesses to sell to
Chinese customers.
CONVERT
3
Following shareholder approval and completion of acquisition, expected by December 2018.
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OPENDNA(ASX:OPN) DIGITAL & ONLINE REVENUE

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ü Online Services & Marketing Fees
Media Publishers Retailers
ü Annuity Licensing & Retainer Fees
E-Commerce
Winery
ü Commission on all Transactions Telecoms Tourism
Financial Services
ü Customer Profiling and Business
Analytics
ü AI Personalization
ü Advertising
ü Business AnalyticsRevenue Customer Profiling
Software Development Services
(Web and Mobile)
$ Software
Transaction Based
Development
ü Share of Revenue
Cross selling across business units Services
Advertising Membership
Revenue Marketing Fees
Services
4
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ASX:OPN – PATH TO REVENUE IN 2018/19

  • OpenDNA Prediction Engine Built

  • Built the AIS for scale on AWS (Amazon Web Services) cloud architecture.

  • Voted as "The Company Most Likely To Grow Exponentially" at AWS Event, San Francisco

  • Built up sales pipeline, development (machine learning & data scientists) and operational teams.

  • Launched Synapse, a customer insights dashboard

  • Awarded One of the Top 200 “Business of Tomorrow” by Westpac Bank

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  • Acquisition of Digital Marketing company - CHOOSE Digital

  • Acquisition of China-based e- Commerce and mobile payments company - RooLife

  • Established China marketing and sales team

  • Extended products and services range

  • Revenue growth and

  • cross-selling

  • Expanded customer footprint

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Development Commercialisation Revenue
2016/17 2017/18 2018/19
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ASX:OPN – THE INVESTMENT OPPORTUNITY

The acquisition of RooLife will form part of the OpenDNA product road map to deliver an AI-powered e-Commerce product providing access into the large and growing China market. OpenDNA is adding complementary businesses CHOOSE Digital and RooLife to deliver multiple revenue streams and an immediate user base for its technology.

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ACQUIRE UNDERSTAND CONVERT
www.aws.amazon.com www.businessesoftomorrow.com.au www.skynews.com.au
/winners/winners-2017
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OPENDNA - MARKET FOR AI & PERSONALIZED MARKETING

OPENDNA’s AI Platform services the demand for personalized online experiences improving engagement with customers online.

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ü According to Accenture in 2017: Organizations lost $756B due to 'poor personalization, lack of trust’

ü IDC ( International Data Corporation ) estimates $32.4 billion in marketing technology spending by 2018, growing at 12.4 percent per annum

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OPENDNA’S POINT OF DIFFERENCE

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ACQUIRE UNDERSTAND CONVERT $$$$$$$$

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OPENDNA - CHINA MARKET ENTRY

  • ü Targeting growth in the large and rapidly growing e-Commerce market in China where 76% of people have used their smartphone to make purchases within the last three months

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RMBtrn Mobile Phone Gross Shopping Value
¥6.0 5.5
¥5.0 4.5
¥4.0
3.4
¥3.0
2.1
¥2.0
0.9
¥1.0
0.3
0.1
¥0.0
2012 2013 2014 2015 2016e 2017e 2018e
Source: Source Deutsche Bank iResearch
CAGR 38%
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  • v Tourism – converting an unplanned traveler to a planned traveler (1.3 Million Chinese Tourists visited Australia in 2017 up 9.9% year on year)

  • ü China’s online shoppers are expected to increase to 587 million in 2018 generating RMB5.5 trillion in sales /$1 trillion (up from 413 million shoppers in 2015)

  • v Dairy – servicing the growing demand for milk and dairy (Per capita milk consumption in China is 6.7 l/Year – global average is 68.8/Year)

  • v Australian Wine ($1.2b /annum and growing)

  • ü Initially focusing on high-growth markets for products sourced outside China for which it bills consumers in China

  • v Beef

  • v Health Foods and Supplements

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OPENDNA - CHINA TOURISM MARKET

“ HOW CAN YOU BEST ESTABLISH AND NURTURE DIRECT ENGAGEMENT WITH CHINESE CONSUMERS? MOBILE PHONES IN CHINA

  • Chinese people live on their mobile device

  • 90% access internet via their mobile device

  • 55% of all Chinese tourists use their mobile device to plan and book their holiday – up from 17% in 2014

Jeff Sharp www.tourism.australia.com/events/China-Uncovered

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THE REVENUE OPPORTUNITY

  • ü Providing real-time AliPay and WeChat Point of Sale Solutions and Marketing strategies at retail outlets, cellar doors and airport shopping

  • ü Marketing strategy for targeting Chinese Travelers

  • ü Online e-Commerce platforms selling into China

RooLife – China e-Commerce Shopping Portal

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  • ü Big Data Strategy – as implemented with Dan Murphy’s

WeChat currently has 1bn active monthly users (Source: Statista)

  • ü Ongoing Sales in Mainland China

WeChat has 900+ million daily active users worldwide

(Source: Technode)

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ROOLIFE PAYMENT PROCESS – CHINA TO AUS

Fully established and proven e-Commerce platform which allows Australian brands to sell directly into China using Alipay and WeChat Pay and receive payments back in Australia

Extensive China capability provided by:

  • ü Hong Kong Holding and Operating Company

  • ü China-based Wholly Foreign Owned Entity (WFOE)

  • ü VIE (Variable Interest Entity) controlled Chinese Domestic Company

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OUR IP – FROM ACQUISITION TO TRANSACTION

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WANG SHU, BEIJING
ü Acquire
1. User accesses RooLife
ü Understand the Platform
customer 2. Views information about
day tours from Sydney
ü Convert the
3. Views photographs
customer - $$ submitted by other users
4. Reads articles about
ü Retain Hunter Valley
5. Reads Wine Reviews
ü Build loyalty & 6. Searches for local
annuity revenues specialty products
ü Increase
shareholder value
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A I H Y P E R - P E R S O N A L I Z A T I O N P O W E R S U N I Q U E E X P E R I E N C E S

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Penfolds 70 68%
SHU, BEIJING
Australian Wine 65 85%
Action & Adventure 80 23%
ID: 24857382928477
Manuka Honey 21 99%
Profile Type: Loyal – High Spender Beer 90 84%
Date Joined: 25 [th] Jan 2018 Sony 80 67%
Total Spend: $3,987 Wildlife Photography 65 57%
Location: Beijing, China Photography Courses 45 55%
Drones 40 44%
Organic Foods 30 78%
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WANG SHU, BEIJING

VISIT HISTORY

Viewed vs Purchased Items 84:24

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E X T R A V E R S I O N EXTRAVERSION
Last Purchase: 12 Oct 18 1.36am
16 49%
Manuka Honey 2 Units @ $65
Hunter Valley Semillon 2 Units @ $75 Products Viewed C A R I N G Caring 49%
Total Purchases $280 T E N T A T I V E TENTATIVE AGREEABLENESS A G R E E A B L E N E S S
A G R E E A B L E N E S S
Last Session: 12 Oct 18 1.38am Repeat
Total Inventory
Purchases
Predicted Next Session: 11 Nov 18
ü OpenDNA maps a user’s interests and learns about the extent of that C O N F I D E N C E CONFIDENCE ANALYTICAL A N A L Y T I C A L
interest in any given area
ü For businesses this delivers great value in better understanding their
individual user, in turn providing a highly personalized experience for
each user C O N S C I E N T I O U S N E S S CONSCIENTIOUSNESS
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  • ü For businesses this delivers great value in better understanding their individual user, in turn providing a highly personalized experience for each user

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OPENDNA’S UNSURPASSED DATA INSIGHTS

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1-min video: Click to view on YouTube

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O P N C O N F I D E N T I A L

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FUTURE GROWTH PLANS

Build revenue across multiple channels

Establishing national footprint

Customer acquisition in multiple industry verticals:

  • ü Publishing & Media

  • ü Mining

  • ü e-Commerce

  • ü Tourism

China Expansion:

  • ü WeChat and Alipay payment enabled

  • ü Gateway to businesses entering and selling in China the largest e-Commerce market in the world

  • ü Leveraging licenses for importing and selling online ü e-Commerce Platform ready

  • ü Tourism-focused solutions

  • ü Australian Dairy, Wine and Beverages

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MARKET COMPARISON SHAREHOLDER VALUE

With the enlarged and enhanced team at OpenDNA, the potential for the business is immense.

AI COMPANY COMPARABLES

LINIUS TECHNOLOGY (LNU)

Video personalization technology.

COMPARATIVE BUSINESSES

BRAINCHIP (BRN)

Artificial Intelligent computer chip manufacturer.

CHINA MARKET COMPANY COMPARABLES

AU MAKE INTL (AU8)

Company connecting Australian suppliers directly with Daigou and Chinese tourists.

WATTLE HEALTH (WHA)

Australian made health and wellness products with a strong focus on China.

CHINA DAIRY CORP (CDC)

company primarily engaged in the production and wholesale of raw milk and the rearing, breeding and sale of dairy cows in Heilongjiang province, China.

TRIMANTIUM GROWTH OPS (TGO)

IT Services Management Company providing Creative, Technology and Management Consultancy Services.

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$180M
$135M
$90M
$45M
$0M
LNU BRN AU8 WHA CDC TGO OPN
MARKET CAP
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OPENDNA (OPN)

AI, Personalization, Digital Strategy, e-Commerce & Mobile Payments Platform

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CORPORATE SNAPSHOT

Key information ASX Listed in November 2016
Following 23 November 2018 AGM and includes the issue of approved securities expected to OpenDNA
occur in the week following the AGM
ASX Code OPN ACQUIRE
Listing Date November 2016 UNDERSTAND
Cash (as at 30 September 2018) A$928k CONVERT
Additional Placement Proceeds (due 28/11/18) A$2.1m
---
Market Cap (at $0.032 per share) A$ 6.65m Digital Marketing & Customer
52 week high ($ / share) $0.14 Acquisition
Artificial Intelligence and Machine
52 week low ($ / share) $0.026 Learning
China e-Commerce & Mobile
Shares on issue 207.97m Payments
Options (listed) 60.7m
Options(unlisted) 15.5m ---
Performance Shares 63.73m FY18/19 – Delivering the path to
revenue

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