Investor Overview february 2014 1 a global leader and innovator - PowerPoint PPT Presentation

Investor Overview february 2014 1

a global leader and innovator in rugged tablet PCs for over fifteen years developers developers of the of the most rugged tablets in the market 2

Notice: This Presentation (the “Presentation”) has been prepared by Xplore Technologies Corp. (the "Company") solely for informational purposes. THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY. The information contained herein has been prepared to assist interested parties in making their own evaluation of the Company and its prospects and does not purport to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this Presentation and further documents transmitted to the recipient in the course of its evaluation of the Company. The Company makes no representation or warranty as to the accuracy or completeness of this Presentation, including any projections or statements about the prospects of the Company, and shall have no liability for any representations (expressed or implied) contained in, or for any omissions from, this Presentation or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. Only those representations and warranties that are made by the Company in a definitive purchase agreement will have any legal effect. NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION ON BEHALF OF THE COMPANY NOT CONTAINED IN THIS PRESENTATION. IF YOU RECEIVE ANY SUCH INFORMATION OR REPRESENTATION, YOU SHOULD NOT RELY UPON IT. IF YOU HAVE ANY QUESTIONS RELATING TO THIS PRESENTATION, YOU SHOULD DIRECT YOUR QUESTIONS TO THE COMPANY’S CHIEF EXECUTIVE OFFICER OR CHIEF FINANCIAL OFFICER. This Presentation includes “forward-looking statements.” All statements made in this Presentation that are not of a historical nature are forward-looking statements. These forward-looking statements reflect the Company’s current expectations, estimates and predictions about future results and events. Such projections and statements are based upon assumptions about future events that are inherently uncertain and subjective. Although the Company believes that the expectations contained in these forward-looking statements are reasonable, it cannot give any assurance that these expectations will prove to be correct. Actual results may vary materially from those described in the forward-looking statements. The Company is under no duty to update any of the forward-looking statements after the date of this Presentation or to conform these statements to actual results. Nothing contained herein is intended to be, nor should be relied upon as, a promise or representation as to future performance of the Company. 3

company profile Headquarters NASDAQ Since 2012 d d Austin TX XPLR Xplore Xplore: : Manufacturer of the Most d Rugged Tablets in the Market 4

a pioneer in rugged tablet technology First with automatic touch and pen input Developers of the first and best sunlight viewable display First to Market Most Powerful Desktop Processor in Tablet First Telco / Cable specific tablet (HDMI-In/RJ-45) 5

xplore’s rugged tablet users span multiple markets Field Install & Repair Techs Military & Special Ops Personnel Oil Field Pipeline Inspectors Forklift Drivers Warehouse Inventory Managers First Responders / EMS Pharmaceutical Scientists Medical Personnel 6

Providers In The Rugged Tablet Market Xplore’s products have historically served the “Ultra Rugged” space. The Key: product line expansion will more than triple Xplore’s addressable market. Revenue in Millions VDC Market Estimates for CY 2013 Note: Highlighted vendors have either exited the market or significantly reduced presence this calendar year 7

Market Growth: Fully Rugged Tablet by Deployment Environment (VDC Estimates) Markets enabled and expanded by new product lines Key Take-Away: Xplore Traditionally Plays in the Ultra- Rugged Niche of the Rugged Space – Approx 30% of Total Opportunity. Revenue in Millions By delivering fully rugged tablets (IP65), lighter weight & lower cost tablets, Xplore will expand it’s addressable market to the entire rugged tablet market opportunity. 8

Xplore: Most Rugged Tablets in the market iX140C5 Series: Waterproof Shockproof Readable in Direct Sunlight Always Connected Extreme Temperatures Ranges RangerX Series Most Powerful Rugged Android Tablet in the Market Fastest Processor Most Storage capacity Best drop rating Water and Dust Resistant Brilliant sunlight readable display Only tablet with HDMI-In & Gigabit Ethernet – perfect for Telco & Cable Google Certified 9

differentiation is in our DNA The Most Rugged Tablets in the Market– Tested by Tougher Methods Only Tablet With Onsite Repair And Upgrade Capability Long Life Cycle Generates Greater Savings Award-Winning Sunlight Viewable Displays Outstanding Performance & Data Protection Safely Operates in Explosion Prone Environments Ability to Customize Configurations for Large Opportunities Unique Configurations for Telco / Cable (RangerX) 10

Xplore A-List End Users in multiple verticals Field Service / Public Safety / Pharmaceutical / Military Utilities Government Medical Hydro One Inc. Raytheon Wyoming Department Merck of Health: EMS Dycom Industries Inc U.S. Army Procter & Gamble . Detroit Police Texas-New Mexico U.S. Navy Department CVS Pharmacy Power Co. U.S. Air Force Helsinki City Rescue Arkansas Utility Department Protection Services SAAB Training Systems Abu Dhabi Police Manufacturing / Energy / Oil & Gas Transportation Distribution PennWest Energy Daimler Nissan Kizer Energy Mercedes Benz FedEx Corporation E.ON Climate and Renewables Sealed Air Airports Argentina 2000 North America Canadian Tire BNSF Railway Company Scottish Power Clare Rose Air Berlin PLC & Co. 11

Xplore: strength in relationships Experienced, Strategic Development Well-Known Resellers Alliances VT Miltope Intel Hewlett-Packard Microsoft GroupMobile ProSys Wistron Coppernic 12

recent success and announcements Launched a new fully rugged Android Launch of the iX104C5 DMSR LTE Tablet – the RangerX – and secured and DMSR – M2 first major order of approximately $4 million from a Major U.S. telecommunications provider Ranked #3 in the 2013 ABI Research Media Tablet Market Analysis behind Continued expansion of $17M+ relationship with Major U.S. Samsung and Apple - Xplore was telecommunications provider for the only Rugged Tablet iX104C5 DMSR Manufacturer included in the rankings! Multiple millions of dollars in US Military orders for iX104C5 DMSR – M1 , recently won first major Named Official Tablet of 2013 program award Reebok Spartan World Multiple millions of dollars in orders from Championships Medical Equipment Manufacturer in an OEM relationship 13

paradigm shift: new market opportunity Traditional Segmentation Lines are Blurring… Xplore Tablet Sales Are At An All Time High, With Expectations From $0.5B in the For Continued Growth Ultra Rugged Mkt* Non-rugged commercial tablets being used in the corporate space are 13x experiencing high failure rates as well as IT management issues Rugged Tablets Are Fastest Growing Form Factor – VDC To $6.9B in the Total Fulfilling enterprise needs through experience and expertise. Rugged Rugged Mobility tablets finding new markets as rugged needs emerge in new market segments Mkt* The Two Markets Meeting Create A New, Enormous Segment With Rugged Needs We Believe Xplore Is Best Positioned To Exploit This Disruptive Opportunity Commercial Tablets *Data from 2012 VDC Research 14

Xplore Technologies Market Objectives Leverage Leadership Position in Ultra Rugged Space Expand Reach With Lower Weight / Lower Cost Fully Rugged Products Take Advantage of Converging Tablet Space with Android & Windows Offerings 15

historical growth Year-Over-Year Revenue Comparison Year-Over-Year Revenue Comparison For Last Three Fiscal Years $35 $30 Revenue (In Millions) $30.5 $27.5 $25 $20 $17.6 $15 $10 $5 $0 FY11 FY12 FY13 **Fiscal year ends March 31 st 16

current year revenue year-to-date growth $30.0 $27.2 $25.0 Revenue (In Millions) $23.4 $20.0 2012 $15.0 2013 $14 $10.0 $5.0 $5.9 $0.0 3 Months Ending Dec. 31 st 9 Months Ending Dec. 31 st 17

financial highlights of FY2013 Large revenue growth and first year of profitability Generated approximately $3 Million of cash from operations Gross profit of approximately 34%, an improvement of 13% Completed Recapitalization whereby Raised $10 Million by public sale of common stock Converted all preferred stock to common stock Up-listed to Nasdaq exchange 18

Xplore Technologies strengths Solid Existing Business Line Most Rugged Tablet in the Market Exploding Market with High Growth Potential Pioneer & Leader In Rugged Tablet Computing Replicable, Scalable ODM Model with Key Strategic Alliances with Industry Leaders Proven Ability to Sell and Support Fortune 100 companies Development of New Products for Convergence of Consumer/Commercial Tablet with Growing Rugged Mobile Market Xplore believes it is best positioned to exploit the larger market opportunity Phoenix Venture Fund and affiliates have invested $25 million 19