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1 NTS-TSXV; NTSFF-OTCQX Market Capitalization In Canadian dollars Capital Structure Price (2) Shares Market Cap Basic Shares Outstanding 68,959,002 $0.58 $39,996,221 Options @ $1.10 (1) 3,935,000 (exp. 2.8 years) Restricted Share Units (1) 464,126 Fully Diluted 73,358,128 $0.58 $42,547,714 Cash & Short-term $10.1M Investments (1) Debt (1) $0.00 • Significantly invested in intellectual property in over 25 countries Note (1) as at Mar. 31, 2019 Note (2) as at Apr. 30, 2019 • Management and Directors with significant ownership
2 $2 Billion Market Opportunity Initially targeting the multi-billion dollar banknote and tax stamp markets Central Bank Validation Development contracts with several top 10 issuers (awarded $30M contract) Attractive Business Model Investment Scalable high-margin, recurring revenue that can drive positive operating leverage Highlights Innovative Technology Strong patent portfolio in both technology and processes all wrapped in trade secrets Strong Balance Sheet $10.1M cash, no debt, no warrants Positive Adjusted EBITDA Completed our 8 th consecutive quarter of positive adjusted EBITDA All amounts expressed in Canadian dollars
3 THIS PRESENTATION HAS BEEN PREPARED BY NANOTECH SECURITY CORP. (THE “ COMPANY ” ) SOLELY AS AN INTRODUCTION TO THE COMPANY AND ITS TECHNOLOGY. This Presentation is the sole responsibility of the Company. Information contained herein does not purport to be complete and is subject to certain qualifications and assumptions and should not be relied upon for the purposes of making an investment in the securities or entering into any transaction. The information and opinions contained in the Presentation are provided as at the date of this Presentation and are subject to change without notice and, in furnishing the Presentation, the Company does not undertake or agree to any obligation to provide recipients with access to any additional information or to update or correct the Presentation. No stock exchange, securities commission or similar regulatory Disclaimer authority has passed on the merits of any securities referred to in the Presentation, nor has it passed on or reviewed the Presentation. The Company is developing a new and unproven technology. It is subject to a large number of very significant challenges including the risk that no viable product will ever be developed and even if one is developed there is the risk that no market will exist for it. The Company is competing against companies with much greater resources and the Company ’ s continued existence is dependent on its ability to secure additional financing. The Presentation may contain “ forward looking information ” within the meaning of applicable Canadian Securities legislation concerning, among other things, the size of the market for potential applications of the Company ’ s technology and the timing of further technical development of the Company ’ s projects. There can be no assurance that the plans, intentions or expectations upon which these forward looking statements and information are based will occur. “ Forward looking statements ” and “ forward looking information ” are subject to a variety of risks, uncertainties and assumptions, including those discussed in the annual Management Discussion and Analysis and under “ Risk Factors ” in the Company ’ s public filings at www.sedar.com. Some of the factors which could affect future results and could cause results to differ materially from those expressed in the forward looking statements and information contained herein include: Risk of technological non-feasibility, obsolescence and inadequate economics, dependence on key personnel and key relationships with the Company ’ s technology licensor. Forward-looking statements and information are based on the beliefs, estimates and opinions of management at the date the statements are made and are subject to change without notice. The Company does not undertake to update forward-looking statements or information if management believes estimates or opinions or other circumstances should change. The Company also cautions potential investors that investments in new technology are inherently risky.
4 Ink Evolved to Light Our Mission A printed colour image was the best security feature because no one had the technology to copy it.
5 Nanotech places a moving picture which uses light to authenticate and validate the intangible value of physical goods. What We Do
6 What’s the last security feature you remember seeing?
7 Memorable KolourOptik Packaging Our Market Opportunity Legacy technologies are Colour Printing either beautiful and easily copied … Lens technology … or harder to copy Holograms and absolutely forgettable. Colour-shifting Inks & Threads Forgettable Easily Copied Uncopiable
8 We play in an industry where protecting intangible assets is paramount Estimated Cost as a % of Value Luxury Documents Banknotes Pharmaceuticals Cosmetics Our Markets Goods 100 Two thirds of the market cap of the S&P 500 (or over $14 75 trillion) is in intangible assets. 50 25 0 $100 Note Tax Stamp Celebrex Birkin bag Chanel Hand S&P 500 Cream Assumptions - A $100 banknote costs about 14 cents to make. Tax stamps cost a penny or two. Celebrex brand value estimated by taking the spread against its generic. Birkin bag compared against a high quality counterfeit. Chanel hand cream estimated. S&P 500 price vs. book.
9 Banknote Opportunity (1) Federal Reserve System Seal (2) Microprinting (3) Raised Printing (4) Paper (5) Color (6) Portrait and Vignette (7) Symbol of Freedom (8) Treasury Seal (9) Serial Numbers (10) Serial Year (st) Security Thread (w) Watermark (cs) Colour-shifting Ink Issuing Authorities Notes Revenue Opportunity* (Central Banks) (Printed) (Per Security Feature) Top Tier 10 Issuing Authorities 121 Billion $151 Million Others 48 Issuing Authorities 54 Billion $67 Million Total: 58 Issuing Authorities 175 Billion $218 Million * Based on US$1.25 per 1,000 banknotes
10 Multi-billion Dollar Companies Invest in Intellectual Property for Banknotes Banknote Market Strategy Estimated Revenue ~$2.2 Billion Estimated Revenue ~$1.6 Billion Estimated Revenue ~$700 Million Estimated Revenue ~$3.5 Billion Estimated Revenue ~$2.3 Billion Estimated Revenue ~$559 Million
11 $30 Million Development Contract Status Initially announced a $30 Million development Banknote Case Study contract in March 2017 The contract is with one of the top ten central banks The development contract is to design security features for their next series of banknotes When completed is expected to result in recurring annual revenues The development work is progressing well The country is in late stages of designing their new series Opportunity for more than one NTS feature per banknote
12 KolourOptik-Commercial UEFA used KolourOptik to authenticate over 5 mm tickets Documents Case Study during the UEFA Euro 2016. Authentication through motion Grey image changes to full colour image. Cannot be replicated using legacy technologies. Grey image changes to full colour Exactly matches the iconography of the event The image is Super Victor, the UEFA mascot, who is easily identifiable. The colours & proportions match exactly. Mass produced The ticket printer produced these security features using a shim we provided.
13 Transforming from a Technology to a Product Company 2019 Product Launches #1 KolourOptik Commercial Product Launch Technology Scalability #2 KolourOptik Banknote Product Launch PRODUCT Creating reliable and timely manufacturing solutions for KolourOptik products: Demand Previously we relied on large partners that were prohibitively • expensive or took several months for delivery, making selling to commercial customers difficult. With these strategies we can sell directly to commercial customers • and deliver a complete security label to showcase customers’ brand identity.
14 KolourOptik M2 Current Banknote Products Colour Shift Optical Thin Film Threads in circulation: Haiti Denmark Philippines Papua Taiwan New Guinea Kazakhstan Kenya Indonesia Morocco Shown as a windowed thread
15 Introducing … New Commercial Products LiveLogo TM Dynamic Portrait TM Employs Nanotech’s image switch technology to create a unique and Displays images far beyond conventional print resolution and allows for compelling three-image story. It creates an immediate visual impact, text and other design elements to be added for additional brand impact capturing and holding the customer’s attention as they tilt the feature to and authentication. This product is ideal for customers to showcase an experience multiple image transitions. The image designs are customizable image of their celebrity spokesperson or even a high-fidelity image of and can include items such as a customer’s logo, tagline, or product. their product.
16 Management Team Troy Bullock Monika Russell Brian Donnelly Igi LeRoux Chief Financial Officer Vice President, Sales Chief Business Chief Executive Officer Development Officer Clint Landrock Joe Vosburgh Ron Ridley Chief Technology Officer Vice President, Marketing Vice President, Operations
17 Significant Investment in Intellectual Property Patent portfolio in both Technology and Processes all wrapped in trade secrets, major granted patent countries : Canada • United States • Europe • Australia • China • Indonesia •
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