July 15, 2015 Apivio Systems Inc. (APV.V) Disclaimer The - - PowerPoint PPT Presentation

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July 15, 2015 Apivio Systems Inc. (APV.V) Disclaimer The - - PowerPoint PPT Presentation

Investor Presentation July 15, 2015 Apivio Systems Inc. (APV.V) Disclaimer The information contained in this document is submitted to parties on a confidential basis for use solely in connection with their consideration of the investment


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Investor Presentation July 15, 2015 Apivio Systems Inc. (APV.V)

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Disclaimer

The information contained in this document is submitted to parties on a confidential basis for use solely in connection with their consideration of the investment opportunity described

  • herein. By its acceptance hereof, the recipient agrees that neither it nor any of its employees
  • r advisors shall use the information for any purpose other than the evaluation of the

investment opportunity, nor shall it divulge the information, disclose that it has received this information or that this process is ongoing, or distribute this document to any other party, in whole or in part, at any time without the prior written consent of Apivio. This summary does not constitute an offer to sell or the solicitation of an offer to buy any securities and is intended for informational purposes only. This summary does not purport to summarize all of the conditions, risks and other attributes of an investment in Apivio. Certain

  • f the information contained herein includes forecasts, predictions and other such “forward-

looking statements,” which involve particular risks and uncertainties since they depend on assumptions that may not prove to be accurate and could cause the actual results to differ materially from the forecasted or predicted results.

cc

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Apivio is a global leader in voice technology solutions that bring Android, Wi-Fi and VoIP technologies together. Financial ($M) Q1 2015 2014 2013 Revenue $11.6 $46.6 $35

  • Adj. EBITDA

$0.1 $1.4 ($0.1) Established: 2002 Employees: 80 Locations: Richmond, BC (HO) Anyang, South Korea Ticker TSX:V APV 52 Week Hi/Low $0.23 / $0.65 # of Shares O/S 52.7M (basic) 71.3M (fully diluted) Market Cap $29M (FD @$0.41) Price/Sales 0.6x

About Apivio

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Leading supplier of Voice Over IP (VoIP) handsets to all the Korean Telecom leaders, including Korea Telecom, LGU+, SK Broadband, CJ Hellovision for over seven years Other past and present customers include NTT

  • f Japan and NEC, North

America More than 4,000,000 handsets sold, mostly in

  • Asia. Now initiating sales

and marketing efforts in North America

Our Business

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Dexter Series

Desktop IP Phones

Liberty Series

Mobile Wi-Fi Wireless Phones Launched 2014 In Market Launched 2014

Monet Series

Android-based Video Phones Launching 2015

Products

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Monet Series

Android-based Video Phones

Developed for NEC

  • In 2014, Apivio presented NEC North America the idea of a

Smart Android deskphone for the enterprise market

  • These phones would allow enterprises to develop and run

specific value added apps on the Android O/S

  • NECAM gave Apivio a 20,000 phone commitment over 2 years
  • Apivio has orders to ship 10,000 phones to NEC by Q3 2015
  • NEC Japan now wants to go global (beyond NECAM)
  • Apivio is collaborating with NEC to develop business friendly

apps for the enterprise market

  • Apivio is innovating with peripherals such as cameras to enable

enterprises to use intelligent apps in the android device

Android Smart Desk Phone

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Voice / Video Recording Security RFID Security (motion) Cordless Wi-Fi Smoke Detectors Media Interface SIP Clients

Applications for Vertical Mkts

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Liberty Series

Mobile Wi-Fi Wireless Phones Launched 2014 Launching 2015

  • Apivio has launched the “Liberty L1” phone that

authenticates on any Wi-Fi network and allows home phones to be portable

  • Users can make calls from anywhere on their original home

phone plan – no additional roaming or long distance charges

  • Initial PO’s for L1 shipped in Q4’2014 and Q1’2015
  • The next generation “L2” phone will launch in Q3’2015
  • The L2 will register on our cloud based auto-registration

service (“CLive”)

  • CLive allows ease of use, upgrades, tracking and features

that make the phone easy for carriers to deploy and end- users to activate out of the box

Liberty Series Wi-Fi Phone

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Liberty L2 Overview

  • The new 2-line Liberty L2 Portable

Wi-Fi phone is suitable for home or

  • ffice use
  • Enables mobility for your home or
  • ffice phone
  • Allows seamless hand-off from one

Wi-Fi AP to another

  • L2 is a dual mode phone that
  • perates in the 2.4GHz and 5GHz

bands with outstanding reliability.

  • Excellent HD sound quality using HD

codecs (G.722 and AMR-WB).

  • Launching in Q3’2015
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Security Wi-Fi Phones Smoke Detectors

Applications of CLive

CLive Provisioning

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Recent $3.3M private placement provides capital for growth initiatives Continue to capitalize on

  • ur market

share in Korea Expanding Global VoIP market New Android products and platform, build on initial NEC commitment

  • f 20,000

phones New Wi-Fi products and platform Company transitioning to higher and repeat revenues Company transitioning from making products to

  • wning

platforms

Growth Drivers

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Figures in $ 000s, except percentages

Revenue, Margin & EBITDA Improvement

29,467 35,039 46,553

  • 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 FY12 FY13 FY14

Annual Revenue

2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 Series1

  • 320

305

  • 49
  • 2
  • 348

975 108 684 90

  • 320

305

  • 49
  • 2
  • 348

975 108 684 90

  • 600
  • 400
  • 200

200 400 600 800 1000 1200

Quarterly EBITDA

15.6% 15.2% 16.2% 15.0% 16.8% 18.2% 18.9% 19.2% 19% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

Gross Margins - Quarterly

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Stronger Balance Sheet

CDN $(000's) FY 2012 FY 2013 FY 2014 Q1 2015 Current assets: Cash and cash equivalents 1,340 2,969 1,810 5,101 Trade and other receivables 2,786 3,311 4,970 3,782 Inventories 2,234 2,057 4,528 5,981 Other assets 2,019 900 563 913 8,379 9,237 11,871 15,777 Property, plant and equipment 1,110 1,270 1,185 1,170 Intangible assets 257 301 459 462 Other financial assets 260 447 800 920 Total Assets 10,006 11,255 14,315 18,329 Current liabilities: Trade payables and Liabilities 3,209 4,206 5,028 5,616 Short-term borrowings 5,784 6,330 6,724 6,929 8,993 10,536 11,752 12,545 Long-term borrowings 1,480 420 814 820 Defined benefit liabilities 198 174 416 531 10,671 11,130 12,982 13,896 Equity and Accumulated Deficit (665) 125 1,333 4,433 Total Liabilities and Equity 10,006 11,255 14,315 18,329 Working Capital (614) (1,299) 119 3,232 Net Debt 5,924 3,781 5,728 2,648 Equity (665) 125 1,333 4,433

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Contact

  • Rob Bakshi, CEO

T: 604-761-2100 rbakshi@apivio.com

Questions?

  • David Pais, CFO

T: 604-340-9866 dpais@apivio.com