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

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february 2014

Investor Overview

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a global leader and innovator in rugged tablet PCs for

• ver fifteen years

developers developers of the

• f the

most rugged tablets

in the market

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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.

Notice:

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company profile

d d Headquarters

Austin TX

d NASDAQ Since 2012

XPLR Xplore Xplore: : Manufacturer of the Most Rugged Tablets in the Market

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a pioneer in rugged

tablet technology

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) First with automatic touch and pen input

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Oil Field Pipeline Inspectors Field Install & Repair Techs First Responders / EMS Military & Special Ops Personnel Warehouse Inventory Managers Forklift Drivers Pharmaceutical Scientists Medical Personnel

span multiple markets

xplore’s rugged tablet users

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VDC Market Estimates for CY 2013

Note: Highlighted vendors have either exited the market or significantly reduced presence this calendar year

Xplore’s products have historically served the “Ultra Rugged” space. The product line expansion will more than triple Xplore’s addressable market.

Key:

Revenue in Millions

Providers In The Rugged Tablet Market

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Market Growth: Fully Rugged Tablet by Deployment Environment (VDC Estimates)

Key Take-Away: Xplore Traditionally Plays in the Ultra- Rugged Niche of the Rugged Space – Approx 30% of Total Opportunity. By delivering fully rugged tablets (IP65), lighter weight & lower cost tablets, Xplore will expand it’s addressable market to the entire rugged tablet market

• pportunity.

Markets enabled and expanded by new product lines

Revenue in Millions

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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

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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)

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Xplore A-List End Users

in multiple verticals

Field Service / Utilities Military Public Safety / Government Pharmaceutical / Medical

Hydro One Inc. Dycom Industries Inc . Texas-New Mexico Power Co. Arkansas Utility Protection Services Raytheon U.S. Army U.S. Navy U.S. Air Force SAAB Training Systems Wyoming Department

• f Health: EMS

Detroit Police Department Helsinki City Rescue Department Abu Dhabi Police Merck Procter & Gamble CVS Pharmacy

Energy / Oil & Gas Manufacturing / Distribution Transportation

PennWest Energy Kizer Energy E.ON Climate and Renewables North America Scottish Power Daimler Mercedes Benz Sealed Air Canadian Tire Clare Rose Nissan FedEx Corporation Airports Argentina 2000 BNSF Railway Company Air Berlin PLC & Co.

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strength in relationships

Xplore:

Strategic Development Alliances Experienced, Well-Known Resellers

Intel Microsoft Wistron

VT Miltope Hewlett-Packard GroupMobile ProSys Coppernic

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Launched a new fully rugged Android Tablet – the RangerX – and secured first major order of approximately $4 million from a Major U.S. telecommunications provider Continued expansion of $17M+ relationship with Major U.S. telecommunications provider for

iX104C5 DMSR

Multiple millions of dollars in US

Military orders for iX104C5 DMSR – M1, recently won first major

program award Multiple millions of dollars in orders from Medical Equipment Manufacturer in an OEM relationship

recent success

and announcements

Launch of the iX104C5 DMSR LTE and DMSR – M2 Ranked #3 in the 2013 ABI Research Media Tablet Market Analysis behind Samsung and Apple - Xplore was

the only Rugged Tablet Manufacturer included in the rankings!

Named Official Tablet of 2013

Reebok Spartan World Championships

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new market opportunity paradigm shift:

We Believe Xplore Is Best Positioned To Exploit This Disruptive Opportunity

Xplore

Commercial Tablets Traditional Segmentation Lines are Blurring… Tablet Sales Are At An All Time High, With Expectations For Continued Growth

Non-rugged commercial tablets being used in the corporate space are experiencing high failure rates as well as IT management issues

Rugged Tablets Are Fastest Growing Form Factor – VDC

Fulfilling enterprise needs through experience and expertise. Rugged tablets finding new markets as rugged needs emerge in new market segments

The Two Markets Meeting Create A New, Enormous Segment With Rugged Needs To $6.9B in the Total Rugged Mobility Mkt* From $0.5B in the Ultra Rugged Mkt*

13x

*Data from 2012 VDC Research

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Market Objectives

Xplore Technologies

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

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historical growth

Year-Over-Year Revenue Comparison Year-Over-Year Revenue Comparison

For Last Three Fiscal Years

$0 $5 $10 $15 $20 $25 $30 $35 FY11 FY12 FY13

Revenue (In Millions)

**Fiscal year ends March 31st

$17.6 $27.5 $30.5

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current year revenue

year-to-date growth

$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0

$5.9 $14

$23.4 $27.2

Revenue (In Millions)

3 Months Ending Dec. 31st 9 Months Ending Dec. 31st

2012 2013

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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

financial highlights

• f FY2013

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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

• pportunity

Phoenix Venture Fund and affiliates have invested $25 million

strengths

Xplore Technologies

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Global Provider of Rugged Tablets In a Market with Exploding Growth Potential With Opportunity to Triple its Addressable Market With New Products Being Launched During Calendar 2014 Debt Free Positive Working Capital Ratio of 2.7 to 1 Cash: $5.3 Million $86 Million Net Operating Tax Loss Carry Forward Market Capitalization of $50 million on February 1, 2014 Phoenix Venture Fund and Affiliates Ownership of 37% at an Average Cost of approximately $7.50/Share

investor

considerations

Financial Data as of December 31st, 2013

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key executives

leading the Xplore growth

Bates Manufacturing Company, Inc. | Newpark Resources, Inc. | Cabletron Systems Communication Intelligence Corp. | Wavestat Wireless Inc. | Texas Instruments Digital Equipment Corp. Acxiom | Dell | TippingPoint Technologies, Inc. Sirific Wireless | Acer Advanced Labs, Inc.

The Executive Team

With experience in managing various large and small high tech firms, the Xplore team is well equipped to lead the company to success and continued growth. Their proven management capabilities in larger tech firms enables Xplore to transform into a larger rugged tablet market provider. Philip S. Sassower Chairman & CEO Mark Holleran President & COO Michael J. Rapisand CFO & Corporate Secretary Bryan J. Bell VP of Engineering Randy W. Denny VP of N. American Sales Michael W. Zimmerman VP of Operations

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