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january 2014
Investor Overview
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a global leader and innovator in rugged tablet PCs for
over fifteen years
developers of the
most rugged tablets in the market
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This Presentation (the “Presentation”) has been prepared by Xplore Technologies Corp. (the "Company") solely for informational purposes. THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY.
The information contained herein has been prepared to assist interested parties in making their own evaluation of the Company and its prospects and does not purport to contain all of the information that a prospective investor may desire. In allcases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this Presentation and further documents transmitted to the recipient in the course of its evaluation of the Company. The Companymakes no representation or warranty as to the accuracy or completeness of this Presentation, including any projections or statements about the prospects of the Company, and shall have no liability for any representations (expressed or implied) contained in, or for any omissions from, this Presentation or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. Only those representations and warranties that are made by the Company in a definitive purchase agreement will have any legal effect.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION ON BEHALF OF THE COMPANY NOT CONTAINED IN THIS PRESENTATION. IF YOU RECEIVE ANY SUCH INFORMATION OR REPRESENTATION, YOU SHOULD NOT RELY UPON IT. IF YOU HAVE ANY QUESTIONS RELATING TO THIS PRESENTATION, YOU SHOULD DIRECT YOUR QUESTIONS TO THE COMPANY’S CHIEF EXECUTIVE OFFICER OR CHIEF FINANCIAL OFFICER.
This Presentation includes “forward-looking statements.” All statements made in this Presentation that are not of a historical nature are forward-looking statements. These forward-looking statements reflect the Company’s current expectations, estimates and predictions about future results and events. Such projections and statements are based upon assumptions about future events that are inherently uncertain and subjective. Although the Company believes that the expectations contained in these forward-looking statements are reasonable, it cannot give any assurance that these expectations will prove to be correct. Actual results may vary materially from those described in the forward-looking statements. The Company is under no duty to update any of the forward-looking statements after the date of this Presentation or to conform these statements to actual results. Nothing contained herein is intended to be, nor should be relied upon as, a promise or representation as to future performance of the Company.
Notice:
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company profile
d
dHeadquarters
Austin TX dNASDAQ Since 2012
XPLR
Xplore: Manufacturer of the Most Rugged Tablets in the Market
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a pioneer in rugged
tablet technology
Developers of the first and best sunlight viewable display
First to Market Most Powerful Desktop Processor in Tablet
First Telco / Cable specific tablet (HDMI-In/RJ-45)
First with automatic touch and pen input
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Oil Field Pipeline Inspectors
Field Install & Repair Techs
First Responders / EMS
Military & Special Ops Personnel
Warehouse Inventory Managers
Forklift Drivers
Pharmaceutical Scientists
Medical Personnel
span multiple marketsxplore’s rugged tablet users
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VDC Market Estimates for CY 2013Note: Highlighted vendors have either exited the market or significantly reduced presence this calendar year
Xplore’s products have historically served the “Ultra Rugged” space. The product line expansion will more than triple Xplore’s addressable market.Key:
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Providers In The Rugged Tablet Market
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Market Growth: Fully Rugged Tablet by Deployment Environment
(VDC Estimates)
Key Take-Away:Xplore Traditionally Plays in the Ultra-Rugged Niche of the Rugged Space – Approx 30% of Total Opportunity.
By delivering fully rugged tablets (IP65), lighter weight & lower cost tablets, Xplore will expand it’s addressable market to the entire rugged tablet market opportunity.
Markets enabled and expanded by new product lines
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Xplore: Most Rugged Tabletsin the market
iX140C5 Series:WaterproofShockproofReadable in Direct SunlightAlways ConnectedExtreme Temperatures Ranges
RangerX SeriesMost Powerful Rugged Android Tablet in the Market
Fastest ProcessorMost Storage capacity Best drop rating
Water and Dust Resistant
Brilliant sunlight readable display
Only tablet with HDMI-In & Gigabit Ethernet – perfect for Telco & CableGoogle Certified
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differentiation is in our DNA
The Most Rugged Tablets in the Market– Tested by Tougher Methods
Only Tablet With Onsite Repair And Upgrade Capability
Long Life Cycle Generates Greater Savings
Award-Winning Sunlight Viewable Displays
Outstanding Performance & Data Protection
Safely Operates in Explosion Prone Environments
Ability to Customize Configurations for Large Opportunities
Unique Configurations for Telco / Cable (RangerX)
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Xplore A-List End Usersin multiple verticals
Field Service / Utilities Military Public Safety /
GovernmentPharmaceutical /
MedicalHydro One Inc.
Dycom Industries Inc.
Texas-New Mexico Power Co.
Arkansas Utility Protection Services
Raytheon
U.S. Army
U.S. Navy
U.S. Air Force
SAAB Training Systems
Wyoming Department of Health: EMS
Detroit Police Department
Helsinki City Rescue Department
Abu Dhabi Police
Merck
Procter & Gamble
CVS Pharmacy
Energy / Oil & Gas Manufacturing / Distribution Transportation
PennWest Energy
Kizer Energy
E.ON Climate and Renewables North America
Scottish Power
Daimler
Mercedes Benz
Sealed Air
Canadian Tire
Clare Rose
Nissan
FedEx Corporation
Airports Argentina 2000
BNSF Railway Company
Air Berlin PLC & Co.
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strength in relationshipsXplore:
Strategic Development Alliances
Experienced, Well-Known Resellers
Intel
Microsoft
Wistron
VT Miltope
Hewlett-Packard
GroupMobile
ProSys
Coppernic
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Launched a new fully rugged Android Tablet – the RangerX – and secured first major order of approximately $4 million from a Major U.S. telecommunications provider
Continued expansion of $17M+ relationship with Major U.S. telecommunications provider for iX104C5 DMSR
Multiple millions of dollars in US Military orders for iX104C5 DMSR – M1, recently won first major program award
Multiple millions of dollars in orders from Medical Equipment Manufacturer in an OEM relationship
recent successand announcements
Launch of the iX104C5 DMSR LTE and DMSR – M2
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!
Named Official Tablet of 2013 Reebok Spartan World Championships
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new market opportunityparadigm shift:
We Believe Xplore Is Best Positioned To Exploit This
Disruptive Opportunity
Xplore
Commercial Tablets
Traditional Segmentation Lines are Blurring…
Tablet Sales Are At An All Time High, With Expectations For Continued Growth
Non-rugged commercial tablets being used in the corporate space are experiencing high failure rates as well as IT management issues
Rugged Tablets Are Fastest Growing Form Factor – VDC
Fulfilling enterprise needs through experience and expertise. Rugged tablets finding new markets as rugged needs emerge in new market segments
The Two Markets Meeting Create A New, Enormous Segment With Rugged Needs
To $6.9B in the Total Rugged Mobility
Mkt*
From $0.5B in the Ultra Rugged Mkt*
13x
*Data from 2012 VDC Research
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Market ObjectivesXplore Technologies
Leverage 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
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growth historical
Year over Year Revenue Comparison
**Fiscal year ends March 31st
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
FY11 FY12 FY13
$17.6
$27.5$30.5
$5
$10
$15
$20
$25
$30
$35
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Large revenue growth and first year of profitability
Generated approximately $3 Million of cash from operations
Gross profit of approximately 34%, an improvement of 13%
Completed Recapitalization wherebyRaised $10 Million by public sale of common stockConverted all preferred stock to common stockUp-listed to Nasdaq exchange
financial highlightsof FY2013
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Solid Existing Business LineMost Rugged Tablet in the MarketExploding Market with High Growth PotentialPioneer & Leader In Rugged Tablet ComputingReplicable, Scalable ODM Model with Key Strategic Alliances with Industry LeadersProven Ability to Sell and Support Fortune 100 companies
Development of New Products for Convergence of Consumer/Commercial Tablet with Growing Rugged Mobile Market
Xplore believes it is best positioned to exploit the larger market opportunity
Phoenix Venture Fund and affiliates have invested $25 million
strengthsXplore Technologies
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Global Provider of Rugged TabletsIn a Market with Exploding Growth PotentialWith Opportunity to Triple its Addressable Market With New Products Being Launched During Calendar 2014Debt FreePositive Working Capital (Current Ratio 4.2:1)$7.6 million in Cash$86 million Net Operating Tax Loss Carry Forward Market Capitalization of $52 million on January 1, 2014Phoenix Venture Fund and Affiliates Ownership of 37% at an Average Cost of approximately $7.50/Share
investorconsiderations
Financial Data as of September 30, 2013
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key executivesleading the Xplore growth
Bates Manufacturing Company, Inc. | Newpark Resources, Inc. | Cabletron Systems Communication Intelligence Corp. | Wavestat Wireless Inc. | Texas Instruments
Digital Equipment Corp. Acxiom | Dell | TippingPoint Technologies, Inc. Sirific Wireless | Acer Advanced Labs, Inc.
The Executive Team
With experience in managing various large and small high tech firms, the Xplore teamis well equipped to lead the company to success and continued growth. Their provenmanagement capabilities in larger tech firms enables Xplore to transform into a largerrugged tablet market provider.
Philip S. SassowerChairman & CEO
Mark HolleranPresident & COO
Michael J. RapisandCFO & Corporate Secretary
Bryan J. BellVP of Engineering
Randy W. DennyVP of N. American Sales
Michael W. ZimmermanVP of Operations
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