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Investor Presentation June 2017 DISCLAIMER This presentation has been prepared by Elsight Limited. ( Elsight or the Company) based on information available to it as at the date of this presentation. The information in this


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Investor Presentation

June 2017

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This presentation has been prepared by Elsight Limited. (“Elsight” or the “Company”) based on information available to it as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision. This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in Elsight, nor does it constitute financial product advice or take into account any individual’s investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this presentation but must make its own assessment of Elsight and conduct its own investigations. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and

  • circumstances. Elsight is not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of

Elsight securities. Although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and that the opinions expressed are fair and reasonable, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Elsight its officers, directors, employees and agents, nor any other person, accepts any responsibility and liability for the content of this presentation including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of or reliance on any of the information contained in this presentation or otherwise arising in connection with it. The information presented in this presentation is subject to change without notice and Elsight does not have any responsibility or obligation to inform you of any matter arising or coming to their notice, after the date of this presentation, which may affect any matter referred to in this presentation. The distribution of this presentation may be restricted by law and you should observe any such restrictions. This presentation contains certain forward looking statements that are based on the Company’s management’s beliefs, assumptions and expectations and on information currently available to management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of Elsight to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the political and economic environment in which Elsight will operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other forecast. To the full extent permitted by law, Elsight and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, but not limited to, any assumptions or expectations set out in the presentation).

DISCLAIMER

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  • Operating since 2009
  • Innovative Multichannel technology providing live video, audio and other data transmission with unprecedented

reliability, security and bandwidth

  • Multichannel product extends existing bandwidth capabilities, reliability and security of transmissions through

aggregation of an unlimited number of network links with nearly zero latency, even during physical movement from one geographic location to another

  • Already generating Significant Revenues
  • Market leaders in video compression and optimisation
  • Exclusive supplier of Multichannel systems to Homeland Security Office, Israeli Police and the Office of the

Prime Minister of Israel

  • 2017 pipeline of more than 30 commercial projects
  • Team members consist of former IDF (Israeli Defence Forces) special tech division and special forces
  • Blue Sky opportunity from emerging Consumer Media, Broadcasting and Livestreaming segments

Investor Highlights

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Capital Structure

  • Performance Milestone A: upon achieving aggregate revenue of AU$1,000,000 per

year from the sale of products for broadcast or to consumers or to manufacturers of consumer or safety products or any business in the distribution chain of consumer or safety products

  • Performance Milestone B: upon achieving aggregate revenue of AU$4,000,000 per

year from total sales of products

  • Performance Milestone C: upon achieving aggregate revenue of AU$10,000,000 per

year from total sale of products

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Issued Capital Metrics

(million shares)

Total shares on issue 83.4 million Shares escrowed (6-24mos) 53.3 million Voluntary escrow (12 mos) 4.4 million Listing Price $0.20 Market Capitalisation $16.7 million Repayment of loan $0.53 million Cash remaining $4.5 million Enterprise Value $12.2 million Options (ex price $0.30c, 24mos escrow) 7 million Performance Options (ex price $0.20, 24mos escrow) 30 million Management Options (ex price 20c) 8.6 million

NIR GABAY 26,052,974 31.25% LEARNICON LLC 13,600,304 16.31% INTERVEST HK LTD 3,250,000 3.90% ROEE KASHI 2,894,775 3.47% FINELINE PCB LTD 2,500,000 3.00% GNAT PTY LTD 2,325,000 2.79% ANTON UVAROV 1,708,334 2.05% HOWARD DIGBY 1,708,334 2.05% AWZ HLS INVESTMENT FUND 1,500,000 1.80% MOSHE COHEN 1,166,667 1.40% TOP 10 TOTAL 56,706,388 68.01%

TOP 10 SHAREHOLDERS

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Nir Gabay has more than 20 years experience in communications, security and surveillance including a mobile cellular provider, local municipality, and high tech companies. During the past ten years Nir has been involved in a number

  • f

technological and business achievements among them, is the establishment

  • f ElSight Ltd, which became a dominant player in

live video/audio other data transmission from the field.

Managing Director

Nir Gabay Roee Kashi

Roee has

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9 years

  • f

experience and expertise in building and developing digital video systems, some of them in the IDF. Roee has been responsible for some major technological achievements including the development of the core software on ElSight that is responsible for video encoding and transmission, user interface design and construction of the system, etc.

VP Research & Development

David FURSTENBERG

Held various senior CEO, Chairman, Board member and VP Global sales positions in a number of publicly traded and privately owned companies such as Comverse (NASDAQ: CNSI) and Audiocodes (NASDAQ: AUDC), Enure and Vista (a subsidiary of Israel Aerospace Industries) and most recently active Chairman at NovelSat and CEO at InsurBit. Specializes in high-tech company’s turnaround through product and market repositioning.

Non-Executive Director

  • Maj. Gen. (ret.) Ami

SHAFRAN

Former Head of IDF’s ICT (C4i and Cyber) Command. Head

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the Centre for Cyber Technology at Ariel University. Over the course of his extensive career Shafran held numerous prestigious and prominent positions in the Defense and Intelligence forces

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the IDF, including IDF’s Chief Scientist, Chief of Staff of the Ministry of Defense, and the R&D Attaché at the Israeli Embassy in Washington DC.

Non-Executive Chair

Meet Our Team

Experienced Management and Board – Military and Technology Background

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HOWARD DIGBY

Howard began his career at IBM and has spent 25 years managing technology related businesses in the Asia Pacific region. More recently, he was with The Economist Group as Regional Managing

  • Director. Prior to this, he held senior regional

management roles at Adobe and Gartner. Upon returning to Perth, Howard spends his time as an advisor and investor, having played key roles in several M&A and reverse takeover transactions. Howard is a Director 4DS Memory Limited (ASX:4DS) and Chairman of HearMeOut Limited (ASX:HMO).

Non-Executive Director

DR ANTON UVAROV

Anton has significant experience as an equity analyst both in Australia and overseas. Prior to moving to Australia, he was with Citigroup Global Markets, New York. Upon moving to Australia he spends his time as a corporate advisor and investor, having played key roles in several M&A and reverse takeover transactions.. He is currently a Director

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Actinogen Medical Limited (ASX.ACW) and HearMeOut Limited (ASX.HMO).

Non-Executive Director

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Product Portfolio

Elsight develops innovative technologies for Clear, Reliable & Secure real- time video, audio and other data transmission (both military and civilian) that can be captured, transmitted and displayed whenever & wherever necessary for Improved Critical Decision Making

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Technological Advances – Achieved Challenges

Layers of Technological Knowhow

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Moving objects – Keeping real-time video and other data continuously available in low latency despite mobile reception drop outs, impairments and changes in available bandwidth Adaptation – Real-time compression and packet shaping based on available bandwidth, in order to get the maximum performance and quality at each moment Redundancy and Survivability – System switches dynamically and utilises multiple channels as needed during various channel failures in order to maintain uninterrupted high quality video. Redundancy/Load sharing of antennas array Simultaneous recording – Separated compression for local recording (on the device) and remote (transmission of recorded video to the C&C) which does not affect real-time performance Product variety - various products for vehicle mount, wearable on infantries and even on fixed walls/fences etc Feature-Rich C&C S/W – Powerful software in server-client architecture (see further slide – commander360) – API for full integration, as an option

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Multichannel

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  • Multichannel is Elsight’s new innovative technology, providing

live video, audio and other data transmission as well as recording capabilities, anytime, anywhere via multiple 3G networks, Wi-Fi or satellite (CPE), keeping your video and data integrity constant at all times

  • The system extends the bandwidth capabilities of streaming

video, audio and other data by aggregating unlimited number

  • f network links (3G / LTE / ETH / SAT / Wi-Fi / Wi-Max) to

transmit a single data stream with nearly zero latency

  • Multichannel, can act as a standalone solution or a gateway to

Elsight’s range of products, thus expanding the visual reach in the field and providing decision makers with the best online tools, to take the right decision/action

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Multichannel

Chosen by Ministry of Defense, and by Israel Police as the best solution among all others (mobile video and other data transmission tenders)

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  • Data is divided into 4 pieces
  • Each piece is transmitted through

a different channel and then reassembled

  • Video quality adapts based on

bandwidth

  • Low latency
  • High Quality
  • Secured
  • Reliable

Multichannel as a Network Solution

  • Watch multiple video streams in

the field HQ

  • Create secured VPN between all

Multichannel end-points and the server

  • Acts as a network hub for

connecting other Elsight products

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Rider-M

Elsight’s 4-channel mobile DVR, transmits video

  • ver 3G/4G or Wi-Fi, together with GPS

location, and sensors .

Rider-S

Elsight’s compact mobile SD version solution, designed to be implemented in situations/solutions, where space & size are dictated

MP-100

MPIOO is a multipurpose solution, which can provide a fast, easy to deploy mini broadcasting tool that brings first live video & audio from the scene

Additional Products

Ground-breaking hybrid (on-the-move or fixed) video/data capturing, recording and transmission for various real tactical security and surveillance purposes

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MA-2016

Elsight portable unit, transmits video over 3G/4G network, Wi-Fi, together with GPS location and panic

  • button. Broadcasting from the men on the ground

Commander360

A bandwidth saving software capable of distributing and managing thousands of video channels at the same time

Airborne-101

Airborne101-WiFi solution features a network digital video server for distributed remote surveillance implementation scenarios

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Market Analysis

Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) – Rapidly Growing Big Market

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The Markets and Business Domains

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ElSight is positioned at the cross section of two growing markets

  • Mobile Video, Audio and Other Data Transmission
  • Emergency units (Fire, Police, Ambulance)
  • Intelligence and Special Forces
  • Secured Transportations
  • Public Transportation
  • Isolated Areas / Borders
  • Financial Institutions and Legal Firms
  • Department of Homeland Security (HLS) / Homeland Defense

(HLD) / Counter-Terror Intelligence

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C4ISR – Leading, Growing and Needed

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  • The leading technology in the global security field is C4ISR :

Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance. C4ISR represented 16% of the global Security field in 2013 (Frost & Sullivan)

  • The C4ISR was an estimated $102 billion market in 2014 and is

expected to grow to $133 billion by 2020 (per annum) (Source: marketsandmarkets.com)

  • Real-time video transmission for security systems is an integral

part of C4ISR

  • Using conservative estimates, the real-time video market is a

minimum $5 billion segment of C4ISR, and is expected to grow in the future

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Command Control (C2), $157B Communications, $284B Computers, $107B Intelligence, … Surveillance & Reconnaissance, $363B Electronic Warfare, $90B

Communications

Second largest market worth cumulative 283.7 billion USD in sales during 2012 - 2021 Source: Frost & Sullivan

C4ISR Market Analysis – Estimated Spending Forecast by Segment

2012 – 2021 Cumulative Estimates in Billions USD

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14.1% 25.5% 9.6% 10.1% 32.6% 8.1%

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Market Analysis - Growing Geographies

Spending and Growth Rate for C4ISR (2014 – 2021, Source: Frost & Sullivan)

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Market Growth Market Value

High High Low Low

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New Markets

Performance Milestones Tied To New Markets Development

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Consumer Media and Broadcasting

  • Current Solutions are Based on Satellite
  • Replacing Media Vans with Elsight’s

Multichannel product

  • Creating value adding peripherals

Livestreaming

  • Exploding Market with Periscope and Meerkat

Dominating the Segment

  • Major Limitations due to Bandwidth (affect quality of

streaming and significantly limits use)

  • No readily available solutions
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Future Developments

Growing Revenues, Expanding New and Existing Markets

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Invest in R&D to create a recurring payment software- based model with reduced hardware cost Promote aggressive marketing worldwide Establish a US operation Expand global sales partners

Use of Proceeds

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Product development

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2017 Forecasts

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  • Subsequent to international market penetration in 2016 Elsight’s reputation will grow significantly
  • The relationships that will develop in the coming years are expected to contribute to Elsight’s growth and expansion
  • As sales grow, the company will hire additional marketing personnel to support the growth
  • The market where the company operates, is worth hundreds of billions of dollars and signed contracts can reach tens

and hundreds of millions of dollars. The company is planning on establishing market presence and continue to grow and realize its technological potential

  • Elsight is expecting to become one of the dominant and leading companies in its field
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Marketing Strategy

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Resellers

  • Specific territories
  • Special pricing
  • Own the supply chain

System Integrators

  • Part of a big picture
  • Joint efforts
  • Dedicated clients

Technology Partners

  • Joint development
  • Shared IP
  • Tech value added

Strategic Partners

  • World Wide strategy
  • Door opener
  • Shared markets
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Partners & Clients

Indonesia government Israel Defence Forces Israel Government Israel Police Israel EMS

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Elsight – Unique Proposition

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Contacts

Nathan Barbarich +61 8 6380 9200 +61 (0) 403 185 194 nbarbarich@rmcf.com.au Nir Gabay Mobile: +972 503 202 048 Skype: gabay.nir Email: nir@el-sight.com RM Corporate Finance