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THE RESTAURANT OF THE FUTURE HAS ARRIVED Connected. Intelligent. End-to-End. Investors Presentation Oct 2017

THE RESTAURANT OF THE FUTURE HAS ARRIVED

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Page 1: THE RESTAURANT OF THE FUTURE HAS ARRIVED

THE RESTAURANT OF THE FUTURE HAS ARRIVEDConnected. Intelligent. End-to-End.

Investors PresentationOct 2017

Page 2: THE RESTAURANT OF THE FUTURE HAS ARRIVED

The Problems

RISING LABOUR COSTS

DIFFICULTY FINDING DRIVERS

MISTAKES IN FOOD PREPARATION

LONG DELIVERY TIMES

INCREASED COMPETITION

FOOD WASTE

BACKLOG IN THE KITCHEN

HIGH EMPLOYEE TURNOVER

2

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End to end Optimization of Delivery, Take-Away and Dine-In.

Just-In-Time

Ongoing Machine Learning to Improve Optimization

On-Time Real-Time

In-Store

Out-of-Store

Dragontail’s solution - From Kitchen to customer

PREPARE

Kitchen Flow Management

PACK

Prep. for Delivery/Service

DISPATCH

Schedule for Delivery / Service

DELIVER

Driver Management Tools

ENGAGE

Communicate with Customer

MANAGE

Dashboard and Alerts

3

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The Dragontail Connected Restaurant

11

2

3

4Control

Pack

Prepare/Make

Dispatch

5

Driver Pool

6

Deliver

7

Engage

Manage

8

44

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PREPAREKitchen Flow Management

CONTROLComputer vision quality

control

PACKPrepare for

delivery/service

DISPATCHAI scheduling for delivery /

service

DELIVERDriver management tools

DRIVER POOLManage on-staff and

freelance drivers

ENGAGECommunicate with end

customer

MANAGEDashboard and real-time

alerts

Ongoing machine learning to optimize all

order (input) and delivery (output) options

55

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There are so many moving parts• Size of orders

• Total orders

• Kitchen order backlog

• Kitchen staffing

• Driver availability

• Scheduling

• Real-time driver location

• Delivery locations

• Traffic, weather

• …

• The time the order arrived• The number of active orders• The number of items in an

order• The exact location of each

driver• Drives Availability • The hour of the day ; traffic

hours• Weather conditions• The planned staffing of

drivers and cooks for the upcoming hours

6

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Dragontail’s Sweet Spot(Impacting all business aspects)

Operat ional Eff i c iency

Management and Control

Market ing & Bus iness

Inte l l igence

7

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The Dispatch Station

8

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The Most Advanced KDS

9

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The Algo Dragon Drive

• Unique mobile app assisting in managing the entire delivery process

• Optional module for drivers / carriers

• Enables real-time communication amongst the carriers, stores and customers

• Enables driver to see order details, customer details, conduct a survey (optional) and more

10

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QT™ Computer Vision Quality Management

11

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QT™ Computer Vision Quality Management

• Ensure correct quantities and distribution for toppings, sauce and cheese

• Automatically identify both type and quality of crust

• Kitchen – Real-time alert of deviations from original order

• Manager –Total branch data and analysis for a given time frame

12

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• Engage directly with customers on real-time order status and location of driver

• Communicate special offers, loyalty announcements, feedback surveys etc.

• Option module for customer to contact driver

YOUR ORDER IS ON IT’S WAY! Est. arrival time: 20:13

LIVE ORDER STATUS

PREPARING BAKING PACKING ON IT’S WAYBON APPÉTIT

Customer Engagement

13

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The Connected Restaurant – KPI’sQuality Control and Waste ReductionEliminate errors with product, preparation and ingredient (wrong/missing toppings) and optimize packing time

Kitchen Optimization Ongoing machine learning to optimize all order (input) and delivery (output) options

Dispatch OptimizationPrioritize deliveries based on optimal dispatch combination

Delivery ManagementTrack and manage driver routes, and combine on-staff and freelance drivers for cost reduction

Build LoyaltyEngage with customers via images of pizza on the way, information on driver’s route and ETA etc.

Monitor and ManageReal-time BI data and alerts for on-site and central management

Serve it Hot and FreshSynchronize preparation timing with availability to deliver / serve

14

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DELIVERING REAL RESULTS

15

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0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

4/12 4/19 4/26 5/3 5/10 5/17 5/24 5/31 6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26

Driver Labor Percent

Dragontail Stores Control Group

Lower Labour Cost*

* USA Franchisee data16

Page 17: THE RESTAURANT OF THE FUTURE HAS ARRIVED

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

4/12 4/19 4/26 5/3 5/10 5/17 5/24 5/31 6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26

ATD Time

Dragontail Stores Control Group* USA Franchisee data

Faster Delivery Times*

17

Page 18: THE RESTAURANT OF THE FUTURE HAS ARRIVED

0.0

5.0

10.0

15.0

20.0

25.0

4/12 4/19 4/26 5/3 5/10 5/17 5/24 5/31 6/7 6/14 6/21 6/28 7/5 7/12 7/19 7/26

Rack Time

Dragontail Stores Control Group* USA Franchisee data

Shorter Rack Time*

18

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Improved Customer Satisfaction*

72%70% 70% 70%

75%78%

6%

61%61% 62%

58%

62%65%

70%

8%

47%

OSAT Likelihood toreturn

Likelihood torecommend

Taste of Food Speed of Service Accuracy of Order EAP Delivery OSAT

Dragontail (DT) Stores vs National P8

Beluga National* Canada data DT 19

Page 20: THE RESTAURANT OF THE FUTURE HAS ARRIVED

A Win for the Team*

Improved work environment

Higher employee retention

Lower Re-training cost

Higher driver income (more trips per hour and higher tips)

Employees report less stress during busy shifts* Canada Data20

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MILSTONES– HIGHLIGHTS SINCE IPO

21

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Q1

20

17

Milestones in 2017 (Since IPO)

Partnership agreement with AT&T

Partnership with REVEL, a leading US-based POS system developer

Partnership with MONSIERGE Inc. - a global hospitality solutions provider

Successful pilot with the first non-pizza customer in US

First commercial implementation of CCSU

Became the de-facto platform for food delivery in Israel after being chosen by Domino’s Israel as well as PH Israel

Launched a Melbourne based R&D facility to support growth in the Asia Pacific

Progressing Artificial Intelligence (AI) Project – testing computer-vision QT quality system with Domino’s

Sign Canada’s Leading Fast Casual Restaurant Operator – Cara Group

Expands in the US via POS Channel

Customer receipts for Q3 were up 50% compared to Q2

Completion of a rollout of the Algo in all PH corporate stores in Canada

Google endorses DTS and refers its first customer

Opening a Singapore office overseeing all Asia Pacific operation

KFC Asia announcing a Multi-Countries pilot of the Algo

Start implementation of Algo with major franchisees in Canada

First monthly revenue >US$25k/mth

Achieve over 100 installations

Received the first Google referred customer in Fleet Management Segment

Achieve over 200 installations.

Secure additional leading North American QSR customer

Sign the first customer in Asia

Achieve monthly revenue of >US$60k/mth

Algo operating in more than 6 countries and pipeline of more than 1,000 stores

Implementing the computer-vision QT quality system in major Global QSR chains and exploring possibilities for camera applications in other segments

Q2

20

17

Q1

20

17

Q2

20

17

Q3

20

17

Q4

20

17

To do in Q4

22

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Announced Key Customers

CARA GROUPCanada

KFCAsia and Cyprus

BURGER KINGCyprus

16 HANDLESUSA

PIZZA HUTCanada + Cyprus + Israel

DOMINOS

23

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Q3 - 2017Q2 - 2017Q1 - 2017Q4 - 2016Q3 - 2016Operating Metric

77333Operating countries

8984685247Operating cities

1,03049042511574Number Stores contracted

76320Number of POS joint

ventures

$708,000$285,000$165,000$124,000$113,000Annualized revenue(based on last month of each QTR)

148%73%33%10%n / aQuarterly Growth(Annualized revenue)

Delivering exponential growth with 1,030 stores now contracted (not all installed)

24

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Business Model

Installation fees

Monthly subscription fee on a per store basis

XXX

XXX

Brand Country Estimated Stores

Pizza Hut Global 12,000

KFC Global 26,000 (Growing to 70,000)

Domino’s Global 14,000

Burger King Global 13,000

QSR USA 300,000

QSR China 2,191,000

QSR Canada 16,000

Monthly Initial fee

Algo $200 $1,000

CCSU $50 $2,000

All prices $USD

1

2

Very large, global addressable market

25

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Algo ROI per Store

$3,300Additional monthly profit per store

$1,400Estimated Additional Gross Profit from Sales increase *

$700Estimated Monthly Chargebacks reduction**

$1,200Estimated Monthly Labor Cost Saving (based on average savings of 4 hours a day)

Estimated Monthly System Cost: $300***

*Using research showing 11% increase in the future sales from customers receiving their orders within 30min, an average improvement of U30 deliveries of

20 orders a day, and average orders size of $30.

**Based on reductions achieved in pilot facilities during 4 month.

***Including 3-years amortization.

1,110%ROI

26

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Case study: Pizza Hut

“This solution allows to: Streamline and prioritise the food preparation and delivery process, significantly improving delivery times, product

quality, and customer satisfaction. Ultimately removes the thinking and chaos from the BOH ... Customers love it and team members love it too!”

Mohammed Pashar – IT Manager, Pizza Hut Canada – Feb 2017

First pilot store Dec 2013

Rollout to corporate stores commenced Feb 2014

Rollout to franchisees commenced Jan 2015

Reduction in labor cost (as % of sales) 2.8%

9.8%

100% Increase in on-time deliveries

Increase in repeat customers20%

Same store sales increase, mainly due to an increase in repeat customers orders

“First pilot store

Nov 2015

Rollout to corporate stores commenced April 2016

Rollout to franchisees commenced March 2017

Israel

Canada

27

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Investment Highlights1

Unique, first mover technology

The Algo is the only system in the world that fully automates the kitchen flow, the driver dispatch and delivery process. Current technologies only focus on driver dispatch and tracking.

2 3

4Significant competitive advantage

The Algo is a unique, patent pending system that uses a very sophisticated algorithm and years of on-site operation experience that creates high barriers for entry for potential Dragontail competitors.

5 6

Significant market opportunity

Fast food/QSR/delivery market size of over $400 billion globally with over $250 billion in North America alone. Potential to expand into additional markets such as supermarket deliveries, airline/other catering, and non-food same day deliveries.

High calibre management team

Management have significant expertise across technology, systems management and business development.

Established and growing revenue base & pipeline

The Algo is already installed in Israel, Canada and the US and generating revenue from monthly licensing fees. Further growth in existing and new markets is expected.

Strong validation from leading QSR’s

Our QSR customers report additional monthly revenues of ~10% and monthly labor cost savings of ~3%, while also reporting significant improvements in customer satisfaction and a reduction in customer complaints.Attracting the leading QSR customers in targeted countries.

28

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Appendix

29

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USA Canada AustraliaNew

ZealandJapan China Thailand Singapore

Algo

AlgoInnovative

Patent

CCSU

Drivers Module

App

IP UpdatePatent applications have been submitted in a number for countries with more to follow.

KeySubmitted About to be Submitted30

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One holistic management platform

Higher driver productivity, lower labor costs

Happier, more loyal customers

Faster ROI

Source: Dragontail

* Notifies of kitchen, order and delivery statuses, and optimizes operations** Based on reviews from social media

Feature Dragontail Others

Includes Kitchen Management and Dispatch Modules V X

True optimization before orders show up at the kitchen, for fastest delivery time and optimal efficiency

V X

Full Integration (Platform integrates to POS) V V

Real-time Operational Notifications* V X

White Labelling / Customer Branded App V V

Advanced Business Intelligence Reporting V X

Camera-vision quality management system with Real Time Food Quality Analysis

V X

Instore Prediction and Promise Time (Delivery guarantee time) V X

Driver Routing Management V V

Customer Satisfaction Result (On-time, Fresh / Hot Delivery) V X

Customer Support Quality** V X

Real-time Delivery Confirmations V V

Real-time Customer Updates V V

Intelligent Tracker (Displays last leg of delivery segment to customer) V X

Rapid Integration* (Dispatch Module only) V V

Full Integration (incl. Kitchen Management Module) V N/A

More Features than Competitors

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THANK YOU

Page 33: THE RESTAURANT OF THE FUTURE HAS ARRIVED

This document has been prepared by Dragontail Systems Limited (DTS) to provide selected parties with a preliminaryunderstanding of DTS. It is provided on a confidential basis, and may not be reproduced in whole or in part, nor may any of itscontents be disclosed to any other person, without DTS’s prior written consent. This document is provided by DTS for generalinformation purposes only, without taking into account any potential investors’ personal objectives, financial situation or needs. Itshould not be relied upon by the recipient in considering the merits of any particular transaction. It is not an offer to buy or sell, or asolicitation to invest in or refrain from investing in, any securities or other investment product. Nothing in this document constitutesinvestment, legal, tax, accounting, financial product or other advice. The recipient should consider its own financial situation,objectives and needs, and conduct its own independent investigation and assessment of the contents of this document,including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate. Thisdocument has been prepared on the basis of publicly available information and certain confidential information. DTS has reliedupon and assumed, without independent verification, the accuracy and completeness of all such information, includingforecasts. It contains selected information and does not purport to be all inclusive or to contain all of the information that may berelevant to the document. The recipient acknowledges that circumstances may change and that this document may becomeoutdated as a result. DTS is under no obligation to update or correct this document. DTS its related bodies corporate and otheraffiliates, and their respective directors, employees, consultants and agents make no representation or warranty as to theaccuracy, completeness, timeliness or reliability of the contents of this document. To the maximum extent permitted by law, nomember of DTS accepts any liability (including, without limitation, any liability arising from fault or negligence on the part of any ofthem) for any loss whatsoever arising from the use of this document or its contents or otherwise arising in connection with it. Anyrequests for information in connection with this document should be addressed directly to DTS and to no other party.

This document contains forward-looking statements which are identified by words such as "believes", "estimates", "expects',"targets", "intends", "may", "will", "would", "could", or "should" and other similar words that involve risks and uncertainties. Thesestatements are based on an assessment of present economic and operating conditions, and on a number of assumptionsregarding future events and actions that, as at the date of this Prospectus, are expected to take place. Such forward-lookingstatements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and otherimportant factors, many of which are beyond the control of DTS, the Directors and management of DTS. DTS has no intention toupdate or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whethernew information, future events or any other factors affect the information contained in this Prospectus, except where required bylaw. DTS cannot and does not give assurances that the results, performance or achievements expressed or implied in the forward-looking statements contained in this document will actually occur and investors are cautioned not to place undue reliance onthese forward-looking statements.

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