ASX: BRN Investor Presentation April 2016 Disclaimer ASX: BRN - - PowerPoint PPT Presentation

ASX: BRN Investor Presentation

April 2016

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Disclaimer

This presentation is not a prospectus nor an offer for securities in an urisdiction nor a securities

• recommendation. The information in this presentation is an overview and does not contain all information

necessar for investment decisions. In making investment decisions in connection with an acuisition of securities investors should rel on their own eamination of the assets and consult their own legal business andor financial advisers. The information contained in this presentation has been prepared in good faith b BrainChip Holdings Ltd however no representation or warrant epressed or implied is made as to the accurac correctness completeness or adeuac of an statements estimates opinions or other information contained in this presentation. To the maimum etent permitted b law BrainChip Holdings Ltd its directors officers emploees and agents disclaim liabilit for an loss or damage which ma be suffered b an person through the use or reliance on anthing contained in or omitted in this presentation. Certain information in this presentation refers to the intentions of BrainChip Holdings Ltd but these are not intended to be forecasts forward looking statements or statements about future matters for the purposes of the corporations act or an other applicable law. The occurrence of events in the future are subect to risks uncertainties and other factors that ma cause BrainChips actual results performance or achievements to differ from those referred to in this presentation. Accordingl BrainChip Holdings Ltd its directors officers emploees and agents do not give an assurance or guarantee that the occurrence of the events referred to in the presentation will actuall occur as contemplated.

The Net eneration o ast Autonomous achine Learnin

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Overview

SNAP technolog provides rapid and autonomous learning confirmed in the Autonomous Visual Feature traction demonstration in March 2016 SNAP is deploable across multiple fast‐growing markets BrainChip follows a proven Semiconductor industr Intellectual Propert (IP) licensing model in deriving its revenue from License ngineering and Roalt fees BrainChip has evelope a revolutionary Spiin Neuron Aaptive Processor SNAP technoloy that learns autonomously an unsupervise evolves an associates inormation ust lie the human rain

ASX Coe BRN Market Cap

(April14 2016)

A127.1M Share Price

(April14 2016)

A0.18 Issued Shares 706.38M ptions 29.55M Cash (March 31

2016)

S803000

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SNAP’s Unique Features

Net eneration rapi real time learnin learns autonomousl within seconds A revolutionar custom iital harare esin no traditional processing core no firmware no eternal memor Real time reconition at ver lo latency assive parallel eecution all neural nodes are updated at the same time enabling a spee thousans of times aster than peer sotare neural netors Performs consistently at eceptionally hih spee and does not slow down with network size Siniicantly loer poer consumption enables large networks to be integrated into portable devices

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SNAP Solutions Block Diagram

BrainChip Solution Signal Conditioning

Low Power SNN Labeling Network

nvironmental Sensor Data Actionable Labeled Data

SNAP‐64 Core Configurable Low Power SNN Low Latenc Autonomous Feature traction ptional Partner IP

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Unsupervised Learning – The New Frontier

SNAP based Spiking Neural Network

• 15 March 2016 – Release of Milestone 3 the Autonomous Visual Feature traction

Neural Network with a Client Server Application tool

• Demonstrated SNAP based Real Time Pattern Learning and Recognition working in a

chip (FPGA) hardware

• Autonomous and nsupervised Learning at 1Mhz matching camera time resolution
• Milestone 3 AVF Video Demo:

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Leading The Next Generation

Net eneration: Rapi Real Time Learnin

• Reuires a small sample set
• Learns within seconds
• Autonomousl learns and etracts features

Previous eneration: eep Learnin

• Reuires millions of samples
• Learns features in das or weeks

SNAP is a standalone fast machine learning technolog capable of accelerating a technolog‐partners eisting deep learning solutions

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Market Opportunity

The Neuromorphic Chip Market is estimated will be worth illion y 2022 ith a CAR o 261 License opportunities and related revenues are significant and highlighted in slide 15 Neuromorphic sector and Artiicial Intellience have been seeking SNAPs capabilities SNAP IP is a core enabling technolog in Neuromorphic semiconductor chips Neuromorphic chips can be used in nearl an smart application or product – a massive and unlimited market

Source: Markets and Markets 2015 Report

Smartphones Internet o Thins IoT rones haar avoiance mappin amin Security an Cyer Security riverless Vehicles

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Commercialisation Strategy

Grow a network of technoloy partners and OE customers for licensing and to satisf growing needs in Artiicial Intellience an Business Intellience Create high tech products that interate into technolog partners solutions to grow new markets Launch BrainChip evelopment it (BDK) to empower large numbers of laboratories to appl and license SNAP technolog Build a broad portfolio of loal patents Potentiall spin out applicationspeciic Vs andor subsidiar companies if partnering with maor corporations Become the e acto stanar for autonomous learnin

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Business Model

Chips

M Customers

Products License

nd sers

Product Development Reuests NR () Roalties () Semiconductor

Partners

Licensing ()

Three Revenue sources:

1 Licensin Revenue – SNAP licensed to M customers and semiconductor companies. 2 NRE Revenue – Semiconductor compan designs and manufactures a specific chip utilizing SNAP with other technologies. The chip is incorporated into a product and sold. BrainChip technical team will generate service income in customizing SNAP to the client application

• Royalty Revenue – Roalt for ever chip sold based on percentage of chip price.

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Product Offerings

Verification Production Masks

FPGA

SNAP IP SNAP64 CHIP

API M Custom Chip

NR Design Services

Custom IP Tools Customer Product BK BrainChip valuation Kit BAB BrainChip Accelerator Board BDK BrainChip Development Kit BrainChip Prouct Client Prouct SNAP Chip Tools

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SNAP BDK – Marketing Tool

ARL LICNSS

Licensees through technolog partners

Licensees through Development Kit work

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Multiple Channels to Market

• Cell phones
• MMS
• Securit
• Robotics

OE Customers

• Direct Sales to identified

customers

• int marketing
• IP sales distributor partners

BrainChip SNAP Sales oel

• Work with semiconductor

partners to complete the solutions arare sotare moule solution proviers

• License SNAP and manufacture

sstem on chip products for Ms Semiconuctor Partners

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Marketing Strategy ‐ Partners

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Marketing Strategy ‐ Direct

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Competitive Landscape

This table contains commerciall available products and announced products. It does not list a range of analog VLSI devices that are developed b Stanford CSD Salk Institute and

• thers because these are research devices. Analog VLSI are difficult to mass‐produce.

Companies

Degree of parallelism (speed) Low power consumption Chip designed for neural networks

Rapi Learnin capailities on chip

ecution time independent of neural network size ses third generation neural networks (spiking)

arare Chip

BrainChip SNAP

IBM (TrueNorth) ualcomm (Zeroth) Cognimem

eep Learnin

DeepMind (Google) Facebook Vicarious General Vision Tera Deep

Rootics

Brain Corporation Neurala

each uadrant represents 25 CAPABILIT Simplified Neuron model

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IP Protection

Protecting and developing intellectual propert is a central part of BrainChips business strateg BrainChip is the first compan to file a digital neuromorphic chip patent (2008) Citations of BrainChips patents are accelerating – a leading indicator for a growing market 1 patent rante – Autonomous Learning Dnamic Artificial Neural Computing Device and Brain Inspired Sstem: 8250011 cited multiple times patents currently penin an many more planne

Leain Companies Citin BrainChip Cites

ualcomm 13 IBM 9 Samsung lectronics 1 thers 2

Partial list. .S. patents and cites are as of December 31 2015.

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Board and Management

• Mick was a partner at leading global law firm Mallesons Stephen aues for 20 ears in the structuring eecution
• f large‐scale transactions around the world. Has since worked in private euit fundraising investment

supervision creating strateg helping to deliver viable business results. Mick has been Chairman of numerous listed private not‐for‐profit entities. ic Bolto NonEecutive Chairman

• Corporate background with an emphasis on MA capital raising business development.

Neil Rinali NonEecutive irector

• At the forefront of computer innovation for 40 ears. Designed high resolution high speed color Graphics

Accelerator chip for IBM PC graphics. CT at vCIS Technolog where he invented a computer immune sstem became Chief Scientist when it was acuired b Internet Securit Sstems subseuentl IBM. In 2010 published Higher Intelligence a book describing the architecture of the brain from a computer science perspective. Peter A van er ae

• uner CEO CTO
• 30 ears as a developer in the semiconductor industr. At Western Digital he developed PC core Logic chipsets. He

started as VP ngineering at Coneant Sstems Inc and developed man products across industr segments then became CD overseeing product development for V92 Modem DSL Set‐top boes PC audio and video Sstem on a Chip products. Moved to be SVP of VLSI ngineering at Mindspeed Technologies responsible for Wireless and VIP infrastructure product development. Anil anar COO SVP Enineerin

• At BrainChip since 2012. Currentl Associate Professor of lectrical ngineering at dith Cowan niversit in

Western Australia and holds a Ph.D. in microelectronics from the National Poltechnic Institute of Grenoble. r Aam Osseiran NonEecutive irector

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Scientific Advisory Board

r Nicholas Spiter Neuroscientist Distinguished Professor at niversit of California San Diego Ph.D. Harvard niversit ditor‐in‐chief of BrainFacts.org Recipient of a Sloan Fellowship a avits Neuroscience Investigator Award a Guggenheim Fellowship Director of the Kavli Institute for Brain and Mind r erey richmar Conitive Scientist Professor at niversit of California Irvine Ph.D. George Mason niversit research interests include neuro‐robotics embodied cognition neural architecture Previousl Senior Fellow in Theoretical Neurobiolog at The Neurosciences Institute. r ert Cauenerhs BioEnineerin Scientist Professor at niversit of California San Diego Ph.D. California Institute of Technolog Pasadena Research interests include Biomedical integrated circuits and sstems micropower analog VLSI neuromorphic engineering adaptive neural computation learning and intelligent sstems.

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Investment Highlights

ue maret neuromorphic chip market alone to be 4.8bn b 2022 and contains 1000s of potential customers irst mover avantae Net generation technolog that learns autonomousl is significantl faster and reuires considerabl less power than what is currentl available arare only solution means thousands of times faster than software no programming instant read neural network with low power usage IP and trade secrets create hih arriers to entry perienced innovators with a isruptive technoloy and a iverse revenue moel n target to meet milestone 4 of revenue proucin license eal in 2016 Commercially availale toda

Source: Markets and Markets 2015 Report

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Contact

rainchipinccomau

Company

Neil Rinaldi – Non ecutive Director e: nrinaldi@brainchip.com.au

Investor Relations

Ted Haberfield – SA MZ Group President – MZ North America e: thaberfield@mzgroup.us m: +1 858‐204‐5055 Ben Knowles – Australia Walbrook Investor Relations e: ben.knowles@walbrookir.com.au m: +61 426 277 760