Xplore Investor Relations FY13 1 September 2013 Investor
Overview Slide 2 Xplore Investor Relations FY13 2 company profile d
Headquarters Austin TX Founded in 1996 NASDAQ Since 2012 XPLR Slide
3 Xplore Investor Relations FY13 3 a pioneer in rugged tablet
technology Early Developers of the Best Outdoor Viewable Displays:
600:1 Contrast Ratio & 1000 NITS Intel Core i7: First to Market
in Rugged Tablet First to Include Integrated HDMI- In Port for Use
in Telco / Cable First with Auto-Sensing Dual- Mode Input: Active
Pen / Finger Touch Slide 4 Xplore Investor Relations FY13 4 KEY
EXECUTIVES Over 140 Years in High Tech Experience Philip S.
Sassower (Chairman + CEO). Current: CEO of Phoenix Group, a private
equity firm and Xplores largest shareholder; Chairman and CEO of
Communication Intelligence Corporation, an electronic signature
provider. Past: Newpark Resources, Inc., an environmental services
company; and Bates Manufacturing Company, Inc., a textile and coal
company. Mark Holleran (President + COO). Past: President and CEO
of Wavestat Wireless Inc., a developer of wireless products;
Country Manager, VP Sales + Marketing of Cabletron Systems, a
manufacturer of communication solutions; and Various Senior
Management & Executive roles at Digital Equipment Corp. Jim
Plas (VP Marketing). Past: VP of Marketing and Product Management,
Acxiom, the leading global marketing services firm; Director of
Enterprise Services Marketing, Dell; and Business Development
Director, Dell Professional Services Michael J. Rapisand (CFO +
Corporate Secretary). Past: CFO of TippingPoint Technologies, Inc.,
a network-based security hardware manufacturer; CFO of ThinkWell
Corporation, an online publisher; Finance Director of Dell. Bryan
J. Bell (VP Engineering). Past: VP Operations at Sirific Wireless,
a developer of solutions for mobile cellular and broadband data for
notebook computers; DSL Engineering Team Leader at Texas
Instruments; VP + General Manager of the notebook computer business
of Acer Advanced Labs, Inc. Slide 5 Xplore Investor Relations FY13
5 Traditional Market for Rugged Tablet Oil Field Pipeline
Inspectors Field Install & Repair Techs First Responders / EMS
Military Operations & Spec Ops Warehouse Inventory Managers
Forklift Drivers Pharmaceutical Scientists Doctors & Nurses
Slide 6 Xplore Investor Relations FY13 6 Providers in the Rugged
Tablet Market VDC Market Estimates for CY 2013 Note: Highlighted
vendors have either exited the market or significantly reduced
presence this calendar year Note 2: Xplore has traditionally played
in the Ultra Rugged space. Product line expansion more than triples
addressable market. Slide 7 Xplore Investor Relations FY13 7 Slates
(Tablets) Growing Faster Than All Rugged Form Factors VDC Market
Mix Analysis CY 13 7 Slide 8 Xplore Investor Relations FY13 8
Xplore : Most Rugged Tablets in the Market iX140C5 Series:
Waterproof: 30 minutes at 3 Feet Can withstand 7 Drop and maintain
operational status Readable in Direct Sunlight Real time data
access from any location - Always-On Connectivity with up to four
radios Thermal ranges of -40 to 167 degrees Fahrenheit. RangerX
Series Most Powerful Rugged Android Tablet in the Market Fastest
Processor Dual Core 1.5 GHz Most Storage capacity up to 192GB Best
drop rating can survive a 4 drop operating Water and Dust Resistant
Brilliant sunlight readable display Only tablet with HDMI-In &
Gigabit Ethernet perfect for Telco & Cable Slide 9 Xplore
Investor Relations FY13 9 differentiation is in our DNA The Most
Rugged Tablets On Earth Tested by Tougher Methods Only True Field
Repairable And Field Upgradable Rugged Tablet Most Powerful in
Class for Longest Life Cycle, Lowest TCO, and Highest ROI
Award-Winning Outdoor Viewable Displays (Even in Direct Sunlight)
RAID 0 / 1 Options for Outstanding Performance & Data
Protection Intrinsically Safe: ATEX and UL1604 Certified for
Spark-Free Operations Ability to Tailor and Customize Design
Configurations for Large Opportunities Unique HDMI-In and Gigabit
Ethernet Module for Telco / Cable (RangerX) Slide 10 Xplore
Investor Relations FY13 10 Xplore - A-List Clients Slide 11 Xplore
Investor Relations FY13 11 Xplore Strength in Relationships
Strategic Development PartnersMature Resellers Slide 12 Xplore
Investor Relations FY13 12 Multiple millions of dollars in US
Military orders, recently won first major program award Multiple
millions of dollars in orders from Medical Equipment Manufacturer
in an OEM relationship Continued expansion of $17M+ AT&T
relationship 4 out of 5 Star Review from Laptop Magazine on
recently announced DMSR M2 Military Tablet
http://www.laptopmag.com/reviews/tablets/xplore-ix104c5.aspx
http://www.laptopmag.com/reviews/tablets/xplore-ix104c5.aspx
Expanded OEM relationship with Novatek to deliver a
Bio-Pharmaceutical Solution
http://finance.yahoo.com/news/xplore-novatek-partner-rugged-tablet-131500850.html
http://finance.yahoo.com/news/xplore-novatek-partner-rugged-tablet-131500850.html
Glowing review of newly launched RangerX 10.1 Android Tablet in
Rugged PC Review:
http://www.ruggedpcreview.com/3_slates_xplore_rangerx.html
http://www.ruggedpcreview.com/3_slates_xplore_rangerx.html Ranked
#3 in the 2013 ABI Research Media Tablet Market Analysis behind
Samsung and Apple - Xplore was the only Rugged Tablet Manufacturer
included in the rankings!
http://www.dailyfinance.com/2013/08/19/xplore-technologies-ranked-third-overall-in-tablet/
http://www.dailyfinance.com/2013/08/19/xplore-technologies-ranked-third-overall-in-tablet/
Named Official Tablet of Reebok Spartan World Championships:
http://finance.yahoo.com/news/reebok-spartan-world-championships-gets-130000429.html
http://finance.yahoo.com/news/reebok-spartan-world-championships-gets-130000429.html
Recent Wins and Announcements Slide 13 Xplore Investor Relations
FY13 13 Story of Two Markets: Convergence is Inevitable $136B
Consumer/Commercial Tablet Market (2016 1 ) $6.9B Rugged Mobile
Market (2016 1 ) Dominated by Apple with 69% of the Market (17 M
Units shipped in Q2) - IDC Driven by media consumption but moving
toward Enterprise Productivity via Bring your own Device trend -
IDC Plagued with high failure rates (up to 20% 2 ) and non
Enterprise- Friendly software Continuing to grow at a rapid and
unpredictable pace Panasonic is the share leader, with roots in the
Rugged laptop space - VDC Tablets to grow fastest among all rugged
mobile computing devices - VDC Designed for durability, always on
connectivity and Enterprise Management Tablet leadership up for
grabs due to changing vendor landscape (1)Source: VDC 2012 (2)9.8%
caused by accidental damage in first year, 20% in year two,
according to SquareTrade Warranty statistics Slide 14 Xplore
Investor Relations FY13 14 Converging Markets = Paradigm Shift
~$500M Rugged Tablet Space $6.9B Total Rugged Mobility $136B
Consumer/ Commercial Tablet Tablet Sales will Overtake Those of
Personal Computers by 2015 The Yankee Group Over 95 Million Tablets
shipped in 2012 DigiTimes Research iPad Sales to Fortune 500 have
Tripled in Last 12 months Apple CFO The Rugged Tablet is the
Fastest Growing Form Factor in the Rugged Market - VDC Information
as of 2012 Slide 15 Xplore Investor Relations FY13 15 Paradigm
Shift = New Market Opportunity Traditional Segmentation Lines are
Blurring Commercial Tablets are Moving into Corporate Space due to
Lack of Enterprise- Ready Rugged Products Early Enterprise Adoption
is Coming with Pain iPads experienced 20% Failure Rate Over 2 Years
Even Before Introduction into the Enterprise Space SquareTrade
Warranty Lack of Manageability and Security Features Creates IT
Headaches The Opportunity is Clear: Bring Rugged Quality to the
Masses Xplore is Best Positioned to Exploit this Disruptive
Opportunity Slide 16 Xplore Investor Relations FY13 16 Xplore
Market Objectives Maintain Leadership Position in Ultra Rugged
Space Take Advantage of Converging Tablet Space with Android &
Windows Offerings Expand Reach With Lower Weight / Lower Cost Fully
Rugged Products Slide 17 Xplore Investor Relations FY13 17 Strong
Financial Performance 55% Growth 11% Growth Year over Year Revenue
Comparison Slide 18 Xplore Investor Relations FY13 18 Financial
Highlights in FY2013 Reported first profitable year in Companys
History Generated approximately $3 Million of cash from operations
Gross profit of approximately 34% an improvement of 13% Completed
Recapitalization whereby Raised $10 Million in cash Converted all
preferred stock to common stock Up-listed to Nasdaq exchange Slide
19 Xplore Investor Relations FY13 19 Revenue of $5.9 million, down
from prior year of $10 million due to timing of large projects; the
project nature of our business can lead to volatility. Year over
year comparison is a more meaningful gauge. Operating expenses
increased 36% due to investments associated with product
development of RangerX and next generation iX104 series as well as
investments in sales and marketing headcount and activities aimed
at improving market awareness and demand generation EBITDA of $158K
and net cash provided by operating activities of $167K: Positive
results despite lower revenue and OPEX increase Launch of RangerX
in July 2013 Q1 14 Financial Performance Slide 20 Xplore Investor
Relations FY13 20 Xplore Strengths Solid Existing Business Line
Most Rugged Tablet in the Market Exploding Market with High Growth
Potential Pioneer & Leader In Rugged Tablet Computing
Replicable, Scalable ODM Model with Industry Leading Strategic
Partnerships Proven Ability to Sell & Support Fortune 100
companies - for example, marquis accounts such as AT&T Proven
Management team over 140 years in High-Tech Leadership Experience
Development of New Products for Convergence of Consumer/Commercial
Tablet with Rugged Mobile Market Xplore is best positioned to
exploit this opportunity Slide 21 Xplore Investor Relations FY13 21
Investor Considerations World Leading Provider of Rugged Tablets In
a Market with Exploding Growth Potential With Opportunity to Triple
its Addressable Market With New Products By 2014 Cash Flow Positive
Debt Free Positive Working Capital (Current Ratio 4.2:1) $10.3
million in Cash $86 million Tax Loss Carry Forward Market
Capitalization of $29 million on July 1, 2013 Significant Insider
(Phoenix) Ownership at an Average Cost of $8/Share Financial Data
as of June 30, 2013 Slide 22 Xplore Investor Relations FY13 22
OTHER INFORMATION 22
