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1 Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved. Investor Presentation March 2017

Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

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Page 1: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

1Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Investor Presentation

March 2017

Page 2: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

2Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Safe Harbor Statement

This presentation contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions.

Actual results, performance, or developments could differ materially from those expressed or implied by the forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors including those identified in the Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2014. This list is not exhaustive of the factors that may affect the Company’s forward-looking information.

These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this presentation are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Page 3: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

3Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Intrinsyc

IoT Product Development

Internet of Things Smart Cities Drones/Robotics Wearables

Retail/Digital

Signage In-Flight Entertainment Automotive Health & Fitness

Home

Automation Military/SecurityConnected Cameras Augmented/Virtual

Reality

Multiple High

Growth Market

Opportunities

Leveraging Qualcomm

Relationship and Power of

Snapdragon Mobile Technology

Page 4: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

4Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Snapdragon Based Products

Open- QTM 805 Open-QTM 820

Development Kits & Reference Designs

Production – Ready Compute Engines

Open-QTM 410 Snapdragon Flight Body Camera

Reference DesignSnapdragon

Automotive

Open-QTM 410 SOM Open-QTM 820 SOM Open- QTM 800 SOM Open- QTM 600 SBC Open-QTM 805 SOM

Page 5: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

5Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Intrinsyc Competitive Landscape

Embedded & Internet of

Things

Phones

Tablets &

Consumer Products

Millions of

Units

100K+

Tens of

Thousands

of Units

Breadth of Market

U

n

i

t

s

S

h

i

p

p

e

d 2 Small Competitors

Why We Win?

• Below Radar of Larger Asia

Based ODMs

• Complete Capabilities

• Expertise/Experience

• Production-ready Computing

• Proximity to N.A. OEMs

• IP Protection

Qualcomm Licensed Manufacturers

Page 6: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

6Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Client Revenue Model

Revenue

Gross Margin

Development Hardware $10K - $100K

18% - 22%

Revenue

Gross Margin X 30% – 50%

$10K - $1.5M

= $5K – $500KGross Profit

Revenue per Unit $50 - $300

Gross Margin x 8% - 25%

$10 - $50= $2K - $20KGross Profit Gross Profit Per Unit

Royalty per Unit $0 - $10

100 – 50K units sold

per year over 1- 7

years

Non-Recurring Engineering Repeat Production Hardware

Recurring Royalty

Development Kits

Page 7: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

7Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Path to Recurring Revenue

Prospect

• DragonBoard Evaluation –Development Kit Sales

Design-Win

• Product Development Phase – NRE Fees

Pilot Production

• Prototypes and Marketing Unit Sales

Commercial Release

• Volume Computing Module Sales or Design Royalties

1-24

Months

6 -12

Months

1- 12

Months1- 7

Years

Prospect/Qualify/Bid Design Win/Development Production

60+ Opportunities 30+ in Development 8 in Production

Pipeline data as of Oct 2016

Page 8: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

8Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Strong Annual Revenue and EBITDA Growth

*FY13 and FY14 Revenue Excludes $0.1M and $1.8M Distribution of Discontinued 3rd Party Product Revenue.

**FY13 includes approx. $1.9M of non-core business related expenses inclusive of professional fees.

45% Compound Revenue Growth since FY13 with positive adjusted EBITDA / NI

-22%42%

49%

Page 9: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

9Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Financial Information (as of 12/31/2016 )

Listed on TSX (T.ICS) (ISYRF)

Shares outstanding: 21.1 million

Management/Director Share Ownership: 11.8%

Strong Financial Position – No Debt$ Cash: US$7.6M (CDN$10.1M)

$ Working Capital: US$11.7M (CDN$15.6M)

$ Aggregate tax shield: US$29.7M (CDN$39.6M)

One Year Chart

Page 10: Investor Presentation March 2017 - Intrinsyc · forward looking statements contained in this presentation as a result of known and unknown risks, uncertainties, and other factors

10Intrinsyc Proprietary & Confidential. © 2017 Intrinsyc Technologies Incorporated. All rights reserved.

Intrinsyc Summary – A Compelling Investment

Focused on High Growth IoT Market Opportunities

Leveraging Qualcomm Partnership and Market Leading Technology

Delivering Excellent Revenue Growth, with Repeat Revenue Model

Expanding and Maturing Client Base to Drive Further Growth

Strong Balance SheetBUILD

DEVELOP

DESIGN