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Positioned at the Peak of Wireless Solutions
TSX Venture: PKK
August 2013
Disclaimer
This presentation includes forward-looking statements about Peak Positioning Technology Inc., including its business operations, strategy and expected financial performance and condition. In addition, any statements that may be made concerning future financial performance (including revenues, earnings and growth rates), ongoing business strategies and prospects, and possible future action on the Corporation’s part, are also forward-looking statements and reflect our current beliefs and are based on information currently available to us and on assumptions we believe are reasonable. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as they are subject to a number of significant risks and uncertainties which can be beyond our control. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. We are under no obligation (and expressly disclaim such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise unless otherwise required by applicable securities legislation.
August 2013 2 TSX Venture: PKK
About Peak Positioning Technologies
Peak Positioning is a Canadian Software Developer for smartphones and other mobile computing devices, conducting business primarily in China and North America
In association with its partner, LongKey-Hong Kong Ltd (LongKey), the Company has developed the AiNiTM Mobile Cloud Platform (AiNiTM). AiNiTM is marketed to mobile network providers as a way to tie mobile subscribers to their networks and increase network profitability. The platform comes with a suite of applications that includes: – IM (instant messaging) aggregation – Group chat – File sharing – Data synchronization – Automated device configuration – Several important security features
LongKey markets AiNiTM and its own Software as a Service (SaaS) solutions in China through its partnerships with major Chinese telecommunication companies and banks – Peak markets AiNiTM to mobile network providers in markets outside of China
Peak is developing its business along two parallel growth paths: – Continue to develop opportunities for AiNiTM, SaaS and E-Commerce in China through its association with
LongKey – Establish distribution partners for AiNiTM with telecom providers outside of China
TSX Venture: PKK 3 August 2013
Capital Structure
TSX Venture: PKK 4
TSX Venture Exchange: PKK
Shares Outstanding: 82.7 Million
52 week High/Low: $0.11/$0.03
Warrants (expire December 2013 to August 2014 at Avg price $0.13): 13.3 Million
Options (expire April 2016 to May 2018 at Avg price $0.14): 6.1 Million
Fully Diluted: 102.2 Million
Market Capitalization: $4.1 Million
Insider Ownership: 33%
Institutional Ownership: 24%
August 2013
Peak Positioning Board and Management
Charles-Andre Tessier, LL.L., Chairman – A business lawyer and advisor working mainly in the IT, telecom and manufacturing sectors servicing
companies such R3D Consulting Inc., DMR Group Inc., BioChem Pharma, BCF Business Lawyers LLP – He sits on the board of a number of private and public companies and non-profit organizations and
sat on the Executive Committee of the Association of Canada General Counsel – Mr. Tessier holds a Civil Law degree and a Bachelor's degree in Administration from the University of
Ottawa and he has been a member of the Barreau du Quebec since 1980
Johnson Joseph, MBA, President & CEO, Director
– Former VP of Product Development and Operations of a Montreal-based e-commerce portal – He was also credited with designing a reconciliation and financial settlement system, certified by
Toronto-Dominion Bank’s VISA division, that was instrumental in becoming the first Canadian entity authorized by Visa International to have the sales proceeds of multiple retailers be deposited into a common bank account under the authority of a third party
– Mr. Joseph holds an MBA in Information Technology from HEC-Montreal and a Bachelor’s degree in Finance from Texas Tech University
Laval Bolduc, CA, CFO & Director – More than 35 years of experience in finance, information management, contract negotiation, income
tax and auditing – Former VP, Financial Planning at DMR Group Inc., an information management and technology firm – Mr. Bolduc holds a Bachelor's degree in Accounting from the University of Sherbrooke
TSX Venture: PKK 5 August 2013
Peak Positioning Board and Management
Varujan Tasci, BSc., Chief Technical Officer – Held several executive positions in the IT industry, including CTO & CEO – He has researched, engineered and developed several commercially available state-of-the-art systems, including an Internet-
based Wireless Wide Area Network (WWAN) ordering system; an Internet-based retail-level client contact and reconciliation application for Telus, a major GSM network provider and a leading-edge Internet security video monitoring system for Alarm Centrals
– Mr. Tasci holds a Bachelor’s degree in Computer Science from Concordia University
Robert Desbiens, Director – Prior to joining R3D in 2008 where he is currently the Executive Vice President, Corporate Strategies, Mr. Desbiens was the VP
Eastern Canada at Cisco Systems, Executive Advisor of Strategy and Innovation at IBM Canada, and Deputy Minister of the government information highway and information resources at the Quebec Government. He is also currently Chairman of the Finance and Audit Committee of the Board of Trade of Metropolitan Montreal
– Mr. Desbiens graduated from the OPM program at Harvard University in 1997 and from HEC's Business Administration Program in 1992
George Hebert, MBA, Director – Currently the President and CEO of Prosys Tech Corp – Prior to joining Prosys, Mr. Hébert was the CEO and majority shareholder of security company J.A. Provost Ltd until 1998, when
he sold the company to Bell Canada. He is currently a Board member of Vitran Corporation and was a Board member of the Laurentian Bank of Canada from 1990 to 2008.
– Mr. Hébert holds an MBA from Western University
Kerrigan Turner, BSc., Director – Currently the Chairman of the Board of both Prosys-Tech Corporation and Montreal-based logistics and shipping software
provider Go-Logix. He is also the CEO of Adatif International Inc., a holding company having interests in various businesses worldwide, including well-established companies in the fields of healthcare and pharmaceuticals
– Mr. Turner is also the Chairman of the Board of Bouclair Inc., a well-known privately owned specialty retailer with 125 stores across Canada
– Mr. Turner holds a Bachelor of Science degree from the University of Ottawa.
TSX Venture: PKK 6 August 2013
LongKey Management
Alex Wong, MSc, BSc., CEO – Former CTO of Inspur Ltd., one of the largest IT companies in China, playing a significant role in the
establishment of many national standards for the Chinese mobile and financial industries. At Inspur, he was a part of the team that generated over $16B RMB in annual sales
– Mr. Wang holds a Bachelor of Science degree from the Beijing Institute of Communications and a Master of Science degree from Louisiana Tech University
Golden Qiu, BSc., CTO – Former founder and CEO of Montreal-based Ollwin International Ltd. And inventor of the NetCore Web
Engine – Mr. Qiu holds a Bachelor of Science degree from McGill University
Albert Bao, BMath, COO – Former CEO of DV Vision Ltd, the number 1 video conference company in China. – Mr. Bao holds a Bachelor of Mathematics degree from QingHua University
Roy Zhang, BEng., CMO
– Former CMO of YongZhong Software Ltd. – Mr. Zhang holds a Bachelor of Engineer degree from QingHua University
Richard Tan, MBA, CFO
– Former CFO of Unis and Orange Entertainment – Mr. Tan holds an MBA from the Wharton Business School of Pennsylvania
TSX Venture: PKK 7 August 2013
The Chinese Mobile Market
World's largest mobile market with over 1.18 billion mobile subscribers as of June 2013
The fastest growing 3G subscriber base – Over 325 million 3G subscribers as of June 2013
Dominated by 3 state-owned mobile network operators – China Mobile 740 million subscribers (63% market share)
– China Unicom 262 million subscribers (22% market share)
– China Telecom 175 million subscribers (15% market share)
TSX Venture: PKK 8 August 2013
Growth Strategy
Peak has entered into an agreement to acquire LongKey In addition to its distribution of AiNiTM, LongKey also provides a suite of
cloud-based Software as a Service (SaaS) solutions aimed at Chinese SMBs LongKey’s SaaS products are distributed by telecom and financial
institution partners, including China Telecom and the Industrial and Commercial Bank of China (ICBC), bundled with these partners’ own traditional product offerings
LongKey’s revenues from its SaaS offerings are projected to grow at over
200% annually over the next 2-3 years Following the acquisition, the merged company plans on leveraging Peak’s
expertise in mobile development to adapt LongKey’s SaaS products, which are currently accessed through a web interface for mobile 3G smart devices
TSX Venture: PKK 9 August 2013
Business Combination
The Acquisition of LongKey: – Peak agreed to acquire all issued and outstanding shares of LongKey, a
private holding company based in Hong Kong with 6 shareholders that act independently and therefore will not collectively constitute a voting block
The Terms of the Acquisition: – Peak to issue $2M in common shares at a price of $0.10 per share at the
completion of the Acquisition, plus;
– An additional consideration based on revenues as follows:
• A minimum achievement of US$4M in revenues in 2014: – 6,666,667 PKK common shares for each $1M revenue for an aggregate maximum
of 26,666,667 PKK common shares at a price of $0.15/share
• A minimum achievement of US$8M in revenues in 2015: – 2,500,000 PKK common shares issued for each tranche of $2M in revenue for an
aggregate maximum of 10,000,000 PKK common shares at a price of $0.20/share
TSX Venture: PKK 10 August 2013
LongKey Cloud-Based IT services
LongKey's SaaS offerings are enabled by its proprietary UISP platform – LongKey’s business model is comparable to Salesforce.com (NYSE: CRM),
NetSuite (NYSE: N) and 800App.com
TSX Venture: PKK 11 August 2013
LongKey Product Offering
TSX Venture: PKK 12
5. E-Boss/E-commerce (offered via ICBC)
1. AiNiTM Mobile Platform (to be offered via China Unicom)
2. Office Automation (offered via China Telecom)
3. Government Web Portal (offered via China Telecom)
4. Intelligent Community (offered via China Telecom)
August 2013
1. AiNiTM Mobile Cloud Platform
Based on China Unicom’s Personal Communication Center Initiative
Main features include: IM apps aggregation
Contact-centric communications
Data synchronization
“Circles” social media app
Group Instant Messaging
Push Email
Automated device configuration
Remote device lock
Remote device locate
TSX Venture: PKK 13 August 2013
AiNiTM Instant Messaging Apps Aggregation
AiNiTM allows users with different IM apps to communicate with each other as if they were using the same IM app
AiNiTM also provides message notification even when users are not logged into any IM apps
TSX Venture: PKK 14
Without AiNiTM With AiNiTM
August 2013
AiNiTM Contact-Centric Communications
From the "Contacts" menu, AiNiTM conveniently provides all the ways possible to communicate with a particular contact, including automated login to the most popular social media apps
TSX Venture: PKK 15 August 2013
AiNiTM Data Synchronization
Enter a calendar event or a new contact on one device, and the information gets automatically synced to other devices
TSX Venture: PKK 16 August 2013
AiNiTM “Circles” Social Media App
AiNiTM’s “Circles” app allows users to invite family, friends, co-workers and other acquaintances to join groups that they create and manage, where group members can easily engage in group communications and share information
TSX Venture: PKK 17 August 2013
AiNiTM Platform Distribution
National-level distribution agreement with China Unicom
AiNiTM to be pre-installed on China Unicom mobile devices
Addressable market of 250+ million China Unicom mobile subscribers
Proposed Revenue Model – China Unicom to pay between $0.50 and $0.75 per mobile device per
month
TSX Venture: PKK 18 August 2013
2. Office Automation
Allows small businesses to manage daily office tasks such as:
– Workflow management, company directory, chat client, etc…
Initial set-up includes account creation and user admin account
Applications accessed via web
Clients pay an average of US$160/month, with no set-up fee
Offered currently only in the city of Wuxi, Jiangsu Province
– 300 clients (makes up 31% of current LongKey revenues)
– 2 Million potential clients in Jiangsu Province
TSX Venture: PKK 19 August 2013
3. Government Web Portal
Information sites for cities and internal departments
Clients pays US$3,200/year for maintenance and support, with no set-up fee
Currently available in three cities in Jiangsu Province – 160 clients (makes up 28% of current LongKey revenues)
– Approximately 2,000 potential clients per province
Excellent potential to replicate offering to other provinces
Total Service Potential US$64 Million/year
TSX Venture: PKK 20 August 2013
4. Intelligent Community
Web portal designed for residential community management – Building management, security patrol, utilities notification, general
communications with residents, etc…
Easy set-up with minor customization needed Clients pay US$3,200/year + US$40/employee/year, with no set-up
fee Currently offered in the city of Wuxi
– 35 clients (makes up 36% of current LongKey revenues)
Excellent potential to replicate offering in other provinces
Total service potential market of US$1.9 Billion/year
TSX Venture: PKK 21 August 2013
5. E-Boss/ E-Commerce
Sales & Asset management package comprised of many modules such as: – E-commerce, sales management, distribution management, warehouse management, etc…
All modules (except E-commerce) accessed via web interface Independent storefront E-commerce clients pay US$950 to $8,000/year for maintenance & support plus
20% per transaction fee, with not set-up fee Independent business clients pay an average of $1,600/year for all E-Boss services including E-
Commerce Professional Market (Mini-malls) E-Commerce clients pay US$48,000 set-up fee and each member store
pays US$95/year for maintenance and support Currently in 12 cities of Zhejiang Province
– 150 clients makes up 5% of current LongKey revenues – Approximately 400,000 potential independent business clients in Zhejiang Province
Excellent potential to replicate offering to other provinces – Expanded to DongBei Province in June 2013
Total service potential market of US$6.4 Billion/year
TSX Venture: PKK 22 August 2013
LongKey Deployment & Growth Strategy
TSX Venture: PKK 23
The 3 Business Pillars
Mobile
Work with Peak & China Unicom
and deploy mobile platform
to all Chinese Provinces
SaaS
Offer simple & powerful cloud-
based SaaS solutions in
partnership with China Telecom &
Government
E-Commerce
Offer full-range e-commerce solutions to
SMBs in partnership
with ICBC & ABC
August 2013
LongKey Deployment Overview
TSX Venture: PKK 24
E-commerce partnership with ICBC in Huzhou in 2012
E-commerce partnership with ABC in Huzhou in 2013
National mobile development partnership with China Unicom in 2012
SaaS solution partnership with China Telecom in Wuxi since 2008
August 2013
SaaS & E-Commerce Financials & Revenue Projections
TSX Venture: PKK 25
2012 2013 2014 2015
Office Automation
# of clients 300 500 800 1,500
Average Annual Rate $1,920 $1,920 $1,920 $1,920
Revenue $576,000 $960,000 $1,536,000 $2,880,000
Government Web Portals
# of clients 160 200 400 800
Average Annual Rate $3,200 $3,200 $3,200 $3,200
Revenue $512,000 $640,000 $1,280,000 $2,560,000
Intelligent Communities
# of clients 35 70 500 1,000
Average Annual Rate $19,200 $19,200 $19,200 $19,200
Revenue $672,000 $1,344,000 $9,600,000 $19,200,000
E-Boss (including Independent E-Commerce)
# of clients 50 350 2,500 8,000
Average Annual Rate $1,600 $1,600 $1,600 $1,600
Revenue $80,000 $560,000 $4,000,000 $12,800,000
Professional Market E-Commerce
# of clients 100 10,000 50,000 100,000
Average Annual Rate $95 $95 $95 $95
Revenue $9500 $950,000 $4,750,000 $9,500,000
Total Revenues $1,849,500 $4,454,000 $21,166,000 $46,940,000
LongKey Unaudited Financials As of December 31, 2011
US$
Current Assets $836,942
Total Assets $5,490,042
Current Liabilities $226,530
Total Liabilities $307,939
Net Income $235,022
Revenues $1,654,942
August 2013
Peak’s Royalties from Chinese Operations
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$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Q2-2012 Q3-2012 Q4-2012 Q1-2013
$20,087 $26,788
$112,134
$195,149
August 2013
Short-Term Objectives
TSX Venture: PKK 27
August 2013 Launch AiNiTM on top mobile app stores in China
Q3 – 2013 Launch AiNiTM with China Unicom data plan bundles in
China Complete acquisition of LongKey
Q1 – 2014 Reach AiNiTM distribution agreement in market outside
of China
Q4 – 2014 Reach 3 Million AiNiTM- installed China Unicom mobile
devices (only 1.2% of the potential install base)
Ongoing
Be recognized as the gateway by which North American mobile apps are introduced to the Chinese mobile computing market
Develop more tailor-made apps generating higher rates of revenue per device
August 2013
Contact Information
Peak Positioning Technologies Inc.
Johnson Joseph, President & CEO
T: +1-514-340-7775 x 501
E: investors@peakpositioning.com
CHF Investor Relations
Jeanny So, Director of Operations
T: +1-416-868-1079 x 225
E: jeanny@chfir.com
w w w. peakpos i t ioning.com
TSX Venture: PKK 28 August 2013