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Page 1: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

1www.intrinsyc.comIntrinsyc Proprietary & Confidential. © 2018 Intrinsyc Technologies Incorporated. All rights reserved.

Investor Presentation

August, 2018

Page 2: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

Safe Harbor

StatementThis presentation contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking

information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or

information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance,

revenues, growth, profits, operating expenses or the Company's underlying assumptions.

Actual results, performance, or developments could differ materially from those expressed or implied by the forward looking statements

contained in this presentation as a result of known and unknown risks, uncertainties, and other factors including those identified in the

Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2017. This list

is not exhaustive of the factors that may affect the Company’s forward-looking information.

These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All

forward-looking statements made in this presentation are qualified by this cautionary statement and there can be no assurance that actual

results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise

forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Page 3: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

3www.intrinsyc.com

Internet

of Things

(IoT)

Internet of Things Smartphones/Tablets Drones/Robotics Wearables

Retail/Digital Signage In-Flight Entertainment Automotive Health & Fitness

Home Automation Military/Security360 & Action Cameras Virtual Reality

Page 4: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

4www.intrinsyc.com

Substantial Market

Growth Expected

“Over the next five years, humans will more

than triple the number of “things” connected

to the Internet, growing them from 15 billion

today to 50 billion by 2020.”

Number of

“Things”

connected to the

Internet

15bn2015

CAGR:

27%

50bn

2020

Page 5: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

5www.intrinsyc.com

Trends Driving Growth

Intelligence at the Edge - Higher Computing

Power

Faster Connectivity

Mobile Technology Adopted to IoT and

Automotive

Shorter Product Innovation Cycle

Page 6: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

Development Kits,

References Designs,

and

Production-Ready

Computing

Modules

Product Portfolio

Open-Q™ 845 HDK Dev Kit

Snapdragon™ Flight

Open-Q™ 835 Micro System On Module

Snapdragon™ Automotive Platform

Open-Q™ 410 System On Module

Page 7: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

7www.intrinsyc.com

$2.7B Total Addressable Market

Computer-On-Module Annual Revenue (US$M)

600750

950 10901250

14001550

17502100

24002700

0

500

1000

1500

2000

2500

3000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

MARKET SIZE BY VALUE

Source: QYR Electronics Research Center, April 2017

Page 8: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

8www.intrinsyc.com

Revenue Model

Revenue

Gross Margin

$4K - $50K

X 18% - 25%

Revenue

Gross Margin X 25% – 50%

$10K -

$1.5M

= $5K – $500KGross Profit

Revenue per Unit $50 - $300

Gross Margin X 10% - 25%

$10 -

$60= $1K - $12KGross Profit

Gross Profit Per Unit

Royalty per Unit $0 - $10

100 – 50K units sold per

year, over 1- 7 years

Non-Recurring Engineering Repeat Production Hardware

Recurring Royalty

Development Kits

Page 9: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

9www.intrinsyc.com

Path to Recurring Revenue

Prospect/

Qualify/BidDesign Win/Development Production

• Development

Kit Sales

1 – 24 Months

Prospect

• Product

Development Phase

– NRE Fees

6 – 12 Months

Design-Win

• Prototypes and

Marketing Unit

Sales

3 – 12 Months

Pilot Production

• Volume Computing Module

Sales or Design Royalties

(Margins improve with age)

1 – 8 Years

Commercial Release

Page 10: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

10www.intrinsyc.com

Rapidly Growing Client Base

Design Win = Client Commercial Products in Development That Are Using or Will Use Intrinsyc Computing Platform

59 10

19 22 22 25 25 25 24 25 28 30 27

1

1 2

66 8

8 11 14 18 19

2224

26

0

10

20

30

40

50

60

FY15 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2

Design Wins and In-Production Totals

Design Win In Production

Page 11: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

11www.intrinsyc.com

Client Relationships

Page 12: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

45%CAGR

2 0 1 4 - 2 0 1 7

Page 13: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

13www.intrinsyc.com

$5.5

$8.3 $10.4

$8.2

$2.8

$4.2

$7.1 $12.5

$-

$5.0

$10.0

$15.0

$20.0

$25.0

FY14 Annual FY15 Annual FY16 Annual FY17 Annual

Annual Revenue (US$M) Services and Software Computing Hardware

64% CAGR Hardware Revenue Since 2014

$20.7M

$17.5M

$12.5M

$8.3M

Page 14: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

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$0.4

$1.7 $1.8

$0.8

$(0.2)

$0.7

$1.7

$0.6

$(0.5)

$-

$0.5

$1.0

$1.5

$2.0

FY14 Annual FY15 Annual FY16 Annual FY17 Annual

Adjusted EBITDA Net Income

Consistent Profitability

Annual Adjusted EBITDA and Net Income (US$)Annual Adjusted EBITDA and Net Income (US$)

Increased

Product

Development in

2017

Page 15: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

Growth Strategy

Page 16: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

16www.intrinsyc.com

2018(9) Computing Modules +

(13) Development/Reference Platforms

2014(2) Computing Modules +

(2) Development Platforms

Broadening Product Portfolio

Growth Strategy

Page 17: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

17www.intrinsyc.com

Expanding Technology

Partnerships

Growth Strategy

2018

2014

Page 18: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

18www.intrinsyc.com

Geographic Sales Expansion

Growth Strategy

72% of Market

Opportunity is

outside of N.A.

Page 19: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

19www.intrinsyc.com

Drive Scale to Improve Hardware Margins and

Operational Efficiencies

Growth Strategy

~$7M in Hardware Revenue Growth

= 1% Gross Margin Improvement

Currently 22% - Long-term goal is 28%+

Page 20: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

20www.intrinsyc.com

Q2 ResultsSt rong Revenue Growth , EB ITDA , Booked Order s , and Back log

Revenue: $6.4M - up 40% from previous year

EBITDA: $450K – up 377% from previous year

Record Booked Sales - $8M +

$5.4M Subsequent Booked Order in July

Record Order Backlog as of July 31, 2018

Page 21: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

21www.intrinsyc.com

Strong Financial Position at June 30, 2018

Cash: US $7.5M

Net Working Capital: US $10.8M

No Debt

Line of Credit: CDN $4.4M

Tax Shield: US $31.7M

Page 22: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

22www.intrinsyc.com

Market Cap: CDN $31.6M

(inclusive of US$7.5 million cash

@ June 30/18)

Total Shares Outstanding: 21.0M

Shares Owned by

Management and Directors: 14.0%

NCIB Share Buyback up to 500,000 shares

with 398,900 purchased

Share Information @ August 28, 2018

Page 23: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

23www.intrinsyc.com

A Compelling Investment

Focused on High

Growth IoT

Market

Positive Industry

Macro Trends

Driving Growth

Strong Technology

Partnerships

Expanding and

Maturing Client base

Repeat Revenue

Model

Expanding Product

Portfolio

Revenue Scale to

Drive Margin

Improvement

Strong Balance

Sheet

Page 24: Investor Presentation August, 2018 - Amazon S3€¦ · Investor Presentation August, 2018. Safe Harbor Statement ... Home Automation 360 & Action Cameras Military/Security Virtual

24www.intrinsyc.com

Thank You!

Design • Develop • Build

/IntrinsycTech

@IntrinsycTech

Intrinsyc Technologies Corporation

Intrinsyc.com

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