Making 3D printing accessible to the world.tinkerine.com/investors/2016/TS_Corporate_Presentation...Making 3D printing accessible to the world. TSX.V: TTD | FSE: WB6B | OTC: TKSTF

Making 3D printing accessible to the world.

Feb 2016TSX.V: TTD | FSE: WB6B | OTC: TKSTF

Disclaimers

2

A l l s t a t e m e n t s a n d f i g u re s m a d e i n t h i s p re s e n t a t i o n a n d i n a n y ve r b a l s t a t e m e n t p rov i d e d i n t h e c o u r s e o f d e l i ve r i n g t h i s p re s e n t a t i o n re g a rd i n g t h e s t ra t e g y,

f u t u re o p e ra t i o n s , f i n a n c i a l p o s i t i o n , f u t u re reve n u e s , p ro j e c t e d c o s t s , p ro s p e c t s , t i m e l i n e s , p l a n s a n d o b j e c t i ve s o f m a n a g e m e n t o f T i n ke r i n e S t u d i o s L t d .

( “ T i n ke r i n e ” ) , a re “ f o r w a rd l o o k i n g ” s t a t e m e n t s a n d m ay b e f o r w a rd l o o k i n g i n f o r m a t i o n i n a c c o rd a n c e w i t h a p p l i c a b l e s e c u r i t i e s l a w s . Fo r w a rd l o o k i n g s t a t e m e n t s

a re i d e n t i f i e d b u t n o t l i m i t e d to w o rd s s u c h a s “ b e l i eve ” , “a n t i c i p a t e ” , “e s t i m a t e ” , “e x p e c t ” , “ i n t e n d ” , “p l a n” , “e x p e c t ” , “p ro j e c t ” , “m ay ” a n d “ w i l l ” a n d t h e n e g a t i ve o f

s u c h e x p re s s i o n s , a l t h o u g h n o t a l l f o r w a rd l o o k i n g s t a t e m e n t s c o n t a i n t h e s e i d e n t i f y i n g w o rd s , a n y s t a t e m e n t s t h a t re f e r to e x p e c t a t i o n s , p ro j e c t i o n s o r o t h e r

c h a ra c t e r i z a t i o n s o f f u t u re eve n t s o r c i rc u m s t a n c e s a re f o r w a rd l o o k i n g s t a t e m e n t s . Fo r w a rd - l o o k i n g s t a t e m e n t s a re b a s e d o n c e r t a i n a s s u m p t i o n s a n d a n a l y s i s

m a d e b y T i n ke r i n e i n l i g h t o f i t s e x p e r i e n c e a n d p e rc e p t i o n o f h i s to r i c a l t re n d s , c u r re n t c o n d i t i o n s a n d e x p e c t e d f u t u re d eve l o p m e n t s a n d o t h e r f a c to r s i t b e l i eve s

a re a p p ro p r i a t e , a n d a re s u b j e c t to r i s k s a n d u n c e r t a i n t i e s . T h e f a c t t h a t T i n ke r i n e h a s a s h o r t o p e ra t i n g h i s to r y m ay c a s t d o u b t s o n t h e a c c u ra c y o f s u c h

a s s u m p t i o n s a n d a n a l y s i s . G i ve n t h e s e r i s k s , u n c e r t a i n t i e s a n d a s s u m p t i o n s , p ro s p e c t i ve p e r s o n s l o o k s to m a ke a n i n ve s t m e n t i n T i n ke r i n e s h o u l d n o t p l a c e u n d u e

re l i a n c e o n t h e s e f o r w a rd - l o o k i n g s t a t e m e n t s . W h i l e s u c h i n f o r m a t i o n i s b e l i eve d to b e re l i a b l e f o r t h e p u r p o s e s u s e d h e re i n , n e i t h e r T i n ke r i n e n o r a n y o f i t s

re s p e c t i ve d i re c to r s , o f f i c e r s , p r i n c i p a l s , s h a re h o l d e r s , e m p l oye e s , a g e n t s o r a f f i l i a t e s a s s u m e s a n y re s p o n s i b i l i t y f o r t h e a c c u ra c y o f s u c h i n f o r m a t i o n . A l t h o u g h

T i n ke r i n e b e l i eve s t h a t t h e e x p e c t a t i o n s re f l e c t e d i n a n y f o r w a rd l o o k i n g s t a t e m e n t s m a d e i n t h i s p re s e n t a t i o n a n d i n a n y ve r b a l s t a t e m e n t s p rov i d e d i n t h e c o u r s e

o f d e l i ve r i n g t h i s p re s e n t a t i o n a re re a s o n a b l e , s u c h s t a t e m e n t s a re b a s e d o n a n u m b e r o f a s s u m p t i o n s w h i c h m ay p rove to b e i n c o r re c t , i n c l u d i n g , b u t n o t l i m i t e d

to a s s u m p t i o n s re l a t i n g to t h e r i s k s a n d f a c to r s s e t o u t b e l o w. I m p o r t a n t r i s k s a n d f a c to r s t h a t c o u l d c a u s e a c t u a l re s u l t s to d i f f e r m a t e r i a l l y f ro m e x p e c t a t i o n s ,

a n d s h o u l d b e c o n s i d e re d i n m a k i n g a n y i n ve s t m e n t i n T i n ke r i n e a re s e t o u t i n t h e s e c t i o n b e l o w t i t l e d “ R i s k Fa c to r s “ . T i n ke r i n e u n d e r t a ke s n o o b l i g a t i o n to u p d a t e

o r rev i s e a n y f o r w a rd l o o k i n g s t a t e m e n t .

R i s k Fa c to r s : A n i n ve s t m e n t i n T i n ke r i n e i n vo l ve s a n u m b e r o f r i s k s . T h e s e r i s k s s h o u l d b e c a re f u l l y c o n s i d e re d b e f o re a n y i n ve s t m e n t i s m a d e . T h e f o l l o w i n g a re

s o m e o f t h e key r i s k s a n d u n c e r t a i n t i e s b u t n o t a l l t h e key r i s k s a n d u n c e r t a i n t i e s g e n e ra l l y a s s o c i a t e d w i t h o u r b u s i n e s s . H o w eve r, t h e r i s k s d e s c r i b e d b e l o w a re

n o t t h e o n l y o n e s t h a t w e f a c e . A d d i t i o n a l r i s k s n o t c u r re n t l y k n o w n to u s o r t h a t w e c u r re n t l y d e e m i m m a t e r i a l m ay a l s o i m p a i r o u r b u s i n e s s o p e ra t i o n s . T i n ke r i n e

i s a n e a r l y - s t a g e , a c c o rd i n g l y : t h e re i s u n c e r t a i n t y re g a rd i n g T i n ke r i n e’s a b i l i t y to a c h i eve , s u s t a i n o r i n c re a s e p ro f i t a b i l i t y ; t h e re i s n o a s s u ra n c e T i n ke r i n e w i l l b e

a b l e to f u n d i t s o p e ra t i o n s w i t h e x i s t i n g c a p i t a l o r i n d e b t e d n e s s , o r t h a t i t w i l l b e a b l e to ra i s e a d d i t i o n a l a m o u n t s to f u n d o p e ra t i o n s , i n c l u d i n g t h ro u g h t h e ra i s i n g

o f f u r t h e r c a p i t a l , t h e b o r ro w i n g o f a d d i t i o n a l a m o u n t s o r o t h e r w i s e ; t h e re i s u n c e r t a i n t y re g a rd i n g t h e f u t u re va l u e , i f a n y, o f a n i n ve s t m e n t i n T i n ke r i n e’s

s e c u r i t i e s . T i n ke r i n e’s b u s i n e s s a n d o p e ra t i o n s a re s u b j e c t to va r i o u s re g u l a to r y a n d l e g a l r i s k s i n c l u d i n g : d i f f i c u l t i e s a n d u n c e r t a i n t y re g a rd i n g t h e re s u l t s o f

g ove r n m e n t a g e n c i e s o r c u s to m e r s ; t h e u n p re d i c t a b i l i t y o f p ro t e c t i o n a f f o rd e d b y a n y p a t e n t s o r o t h e r i n t e l l e c t u a l a n d p ro p r i e t a r y p ro p e r t y, a n d t h e p o t e n t i a l f o r

c l a i m s f o r i n f r i n g e m e n t o f t h e i n t e l l e c t u a l p ro p e r t y r i g h t s o f o t h e r s ; u n c e r t a i n t y re g a rd i n g t h e o u t c o m e o f l e g a l p ro c e e d i n g s , i n c l u d i n g p o t e n t i a l p ro d u c t l i a b i l i t y i n

c o n n e c t i o n w i t h a n y d eve l o p e d p ro d u c t s o r t e c h n o l o g i e s o r p ro c e s s e s . T i n ke r i n e i s s u b j e c t to a va r i e t y o f b u s i n e s s a n d o p e ra t i o n a l r i s k s a n d u n c e r t a i n t i e s

i n c l u d i n g : t h e c o s t o f a n y f u t u re a c q u i s i t i o n s a n d t h e a b i l i t y to i n t e g ra t e a n y a c q u i re d b u s i n e s s e s ; p o t e n t i a l c o n t ra c t u a l d i s a g re e m e n t s a n d n e g o t i a t i o n s w i t h t h i rd

p a r t i e s ; t h e a b i l i t y to o b t a i n a d e q u a t e i n s u ra n c e a g a i n s t p o t e n t i a l r i s k s ; t h e a b i l i t y to a t t ra c t a n d re t a i n m a n a g e m e n t p e r s o n n e l ; u n c e r t a i n t i e s a s s o c i a t e d w i t h t h e

t i m i n g , p ro s p e c t a n d s u c c e s s f u l e xe c u t i o n o f t h e d eve l o p m e n t , a c q u i s i t i o n , d i s t r i b u t i o n o r c o m m e rc i a l i z a t i o n o f n e w p ro d u c t s a n d e x i s t i n g p ro d u c t s , o f n e w

c u s to m e r s o r e x i s t i n g c u s to m e r s , o f a c c e p t a n c e a n d d e m a n d f o r n e w p ro d u c t s a n d e x i s t i n g p ro d u c t s ; t h e a b i l i t y to o b t a i n a n y t h i n g s u p p l i e d b y t h i rd p a r t i e s o n

s a t i s f a c to r y t e r m s ; t h e a b i l i t y to d eve l o p , a n d o n g o i n g re l i a n c e o n , key s t ra t e g i c a l l i a n c e s , a n d p a r t n e r i n g a r ra n g e m e n t s ; r i s k s re l a t i n g to t h e u n c e r t a i n t y o f t a x ra t e

a s s u m p t i o n s , c u r re n c y e xc h a n g e ra t e a n d i n t e re s t ra t e f l u c t u a t i o n s ; r i s k s w i t h t h e a b i l i t y to ke e p u p w i t h ra p i d l y c h a n g i n g t e c h n o l o g y ; r i s k s a s s o c i a t e d w i t h t h e

a b i l i t y to m e e t d e m a n d a n d m a n a g e g ro w t h , i n c l u d i n g t h e a b i l i t y to p o t e n t i a l l y e x p a n d i n C a n a d a a n d t h e U n i t e d S t a t e s o f A m e r i c a a n d i n to i n t e r n a t i o n a l m a r ke t s ;

a n d f l u c t u a t i n g o p e ra t i n g re s u l t s .

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About Tinkerine

WHAT WE DO

• Design and manufacture user-friendly, award winning 3D printers and software

• Create educational, STEAM based (Science, Technology, Engineering, Art, Math) content and online training tools

• Manufacture our own line of high purity filament (3D printing material)

TSX.V: TTD | FSE: WB6B | OTC: TKSTF 3

KEY DATA

TSX.V TTD

FSE WB6B

OTC TKSTF

CORPORATE

Founded 2012

Called to trade April 2014

Concurrent Financing C$3.1 Million

AWARD WINNING PRODUCTS

Proudly designed & manufactured in Canada

Biodegradable filament

Educational content

MANAGEMENT

Strong sector specific management

Key advisors from 3D sector

Well seasoned independent board

STRUCTURE As of Dec 15, 2015

Issued and Outstanding 42.6 Million

Warrants Nil

Options 2.5 Million

Fully Diluted 45.1 Million

CAPITALIZATION As of Dec 15, 2015

Market Capitalization 3 Million

Debt 0

MAJOR SHAREHOLDERS

Management 36%

Institutions 11%

Corporate Snapshot


• Inflection point timing: company moving from startup to rapidly expanding sales

• Ditto™Pro 3D desktop printer selected for best overall performance and value (Make: Magazine 2015) and best 3D product (CES Asia 2015)

• 3D printing sector projected to grow 18-30% per year over period 2015 to 2020

• Tinkerine U software and content delivery platform provides competitive advantage for the online training and EdTech markets

• Strong and experienced team (MakerBot, HP, Amazon, Shapeways, KPMG)

Key Investment Drivers


Fused Filament Fabrication (FFF)

• Uses thermal plastic (usually coiled on a spool) as consumable

• The most common type of 3D printing (Tinkerine) in consumer space

• Works by laying down plastic material and building model upwards layer by layer

Desktop 3D Printing


copter

www.u.tinkerine.com

raptor

Photo credit: sinkhacks.com

Individuals that have found a specific niche that they can use 3D printer for (instruments, toys, figurines, etc).

EARLY ADOPTERS

Hobbyist

Individuals that are interested in the tech side of the DIY culture, regardless of educational background.

Maker/Hacker

Individuals who utilize 3D printing to create artworks or design prototypes.

PROSUMERS

Artists/Designers

Institutions that want to incorporate the technology for educational purposes.

Education

SMEs / large companies that utilize the technology to design or prototype.

Business

Who’s Using Desktop 3D Printers?


TARGETING

HOW

120,000 + K-12 schools (60m students) 4700 post secondary institutions (20m students) in North America.

Strongly positioned in Asia one of the highest growth markets.

Tinkerine is providing a complete end-to-end solution for schools comprised of online training and education content. We are building out and supporting a world class dealer network.

3D printing is a $4 billion industry that is predicted to grow to $9-20 billion by 2020.“ Multiple sources (Wohlers, KPMG, Gartner, Smartech Markets Publishing)

$86BEd Tech

$3.8B3D Printing

A Large, Growing Market Opportunity


Ditto™Pro 3D desktop printer selected for best overall performance and value.

(MAKE Magazine, January 2015)

Ditto™Pro 3D won the Best 3D Printing Product.

(International CES ASIA, June 2015)

Ditto™Pro 3D Printer


486 cu. in. build volume

Finer print resolution (50 microns)

Elegant aesthetics

Faster print speed up to 120mm/s

35% more affordable

Small market cap relative to peers

Rectangular construction

456 cu. in. build volume

Print resolution (100 microns)

Boxy aesthetics

Print speed up to 100mm/s

High price tag

Company acquired by Stratasys for $403M

Quality “Open C” construction

T h e D i t t o P r o t a k e s u p 4 3 % l e s s d e s k t o p s p a c e t h a n o u r c o m p e t i t o r s a n d i s t h e

q u i e t e s t p r i n t e r i n t h e m a r k e t .

US$1,899 US$2,899

Direct Comparison


• Our “slicing” software that breaks down the digital 3D model (shapes) into individual layered coordinates to be delivered to the machine

• ”One button interaction”

Tinkerine’s Slicing Software


• Exceptional quality (no fillers) and consistency • 16 unique colours • Biodegradable plastic

Premium 3D Printing Filament

Revenue share model

Peer-to-peer marketplace

Tutorials / Workshops

Lesson PlansDeveloped by educators for educators to use inside classrooms

Professional knowledge and tips about 3D printing & modelling

COMMUNITY

CONTENT

MARKETPLACE

How monetization works

Highly scalable

Projects3D printable STEAM projects with hands-on learning outcomes

Group workshops

LEARN. DREAM. DO.


LEARN. DREAM. DO.

3D printed projects for hands-on learning Ready-to-go content for teachers iOS app for teachers and students

Tinkerine U, one of few existing educational initiatives aiming to bring 3D printing to classrooms and curriculum for kids worldwide.”“ Inside 3DP (August 2014)


Sample Customers


Canada

USA

Asia

Middle East

Select Dealers & Partners


3D PRINTING COMPANY TICKER EXCHANGE SHARE

PRICEMARKET CAP

($MM) EV (MM) EV/TTM REVENUES

EV/TTM EBITDA

Stratasys SSYS NASDAQ $23.50 $1,220 $1,000 1.35 40

3D Systems DDD NYSE $9.50 $1,000 $1,891 1.55 50

Arcam AMAVF QTC $17.50 $369 $323 5.90 43

ExOne XONE NASDAQ $9.20 $133 $122 3.10 N/A

Materialise NV MTLS NASDAQ $7.58 $357 $330 3.10 N/A

Voxeljet VJET NYSE $4.33 $80 $48 1.93 N/A

Graphene 3D Labs GGG TSXV C$0.27 C$11 C$11 N/A N/A

Tinkerine Studios TTD TSXV C$0.06 C$3.0 C$3.0 1.6* N/A

AVERAGE (Excluding all N/A) 2.82 44

(DEC 14, 2015)Public Company Comparables

*Note: Tinkerine’s revenue is Q3 2015 annualized.


Tinkerine U launch: • Academia lesson plan content • Peer-to-peer marketplace • STEAM based learning content

DittoPro wins best 3D printing product at CES Asia

Tinkerine went public

DittoPro wins MAKE award

DittoPro launched

Line of filament launched

Dealer rollout

Tinkerine U expansion

Substantial production expansion

Q2 2014

Q1 2015

Q2 2015

Q4 2015

2016 & Beyond

Key international dealer appointmentsQ3 2015

Achievements & Next Steps

Material increase in sales

Obtain 3-5% market penetration in 3 years($30-50 million sales opportunity)

Continued dealer appointments

20

2012 2013 2014 2015

$100K Sales $350K Sales $330K Q2

$100K Q1

Incorporation

Commercialization

Biz Ramp Up

May 2012

Tinkerine Growth Chart

Accelerated Growth

$465K Q3

R&D

Directors & Management

Chairman

International Director of Operations and Development at Bing Han International. Leads 500 staff. Provided strong vision and direction making Bing Han a global leader. Founder and CEO of Taiwan Rare Earth Ltd.

CEO & Co-founder

Holds degree in Interactive Arts & Technology at SFU. Visionary and developer of Tinkerine products. UX and product designer. Winner of 30 under 30. Co-founder of 3D604.

VP of Market Direction

Former senior MakerBot marketing team member. Major influencer (top 100). Notable 3D designer executive.

Desmond Liew | Director

Eugene Suyu, B.A. | Director

Todd Blatt, B.Sc. | Director

Ben Yan, B.Sc., MBA

22

Channel Manager

35+ years of extensive management experience. Served with Fortune 50 companies including HP, Sun Microsystems, GT Group Telecom.

Founders & Advisors

Lead Software Developer & Co-founder

B.Sc. of Interactive Arts & Technology. Co-founder of Tinkerine. Leads rapid software development and iteration. Well versed in Java, JavaScript, action script and python.

Creative Content Manager & Co-founder

Undergraduate of Interactive Arts and Technology at SFU. Co-founder of Tinkerine. Builds digital relationships through social media and interaction through promotional events.

UX/UI Designer & Co-founder

B.A. of Interactive Arts & Technology. Co-founder of Tinkerine. Passionate about everything creative. Specializes in user experience, interface, and graphic design.

Former Director of Distribution for MakerBot acquired by Stratasys for $403M in 2013. Currently head of Business Development for Double Robotics.

Justin Sy, BSc.

Dan Wu

Andy Yang, B.A.

RJ Wafer | Advisor

An entrepreneur at heart. Excited by forward-thinking ideas and strives to create innovative solutions. Owns Li-Leger Inc., which has worked on projects including medical design, electronic design, and mechanical design for the oil and gas industry.

Noah Li-Leger, B.Des

Industrial Designer

23

Tinkerine Studios Ltd. 341 W 6th Ave

Vancouver, BC V5Y 1L1 Canada

www.tinkerine.com | [email protected] | 1-604-288-8778

Documents

Making 3D printing accessible to the world.tinkerine.com/investors/2016/TS_Corporate_Presentation...Making 3D printing accessible to the world. TSX.V: TTD | FSE: WB6B | OTC: TKSTF