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Peak Positioning Technologies Inc. - August 2013

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Peak Positioning Technologies Inc. (TSXV: PKK) 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 AiNi™ Mobile Cloud Platform. AiNi™ is an enhanced version of the Android O/S and comes with a suite of applications including IM (instant messaging) aggregation, group chat, calendar and contacts synchronization, automated device configuration and several important security features. LongKey markets AiNi™ along with its Software as a Service (SaaS) and E-commerce solutions in China through its partnerships with major Chinese telecommunication companies and banks, while Peak markets AiNi™ along with its own applications in markets outside of China. Peak is developing its business along two parallel growth paths: (i) Establish distribution partnerships for AiNi™ with telecom providers outside of China (ii) Continue to develop opportunities for AiNi™, SaaS, and E-commerce in China through its association with LongKey.
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Positioned at the Peak of Wireless Solutions TSX Venture: PKK August 2013
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Page 1: Peak Positioning Technologies Inc. - August 2013

Positioned at the Peak of Wireless Solutions

TSX Venture: PKK

August 2013

Page 2: Peak Positioning Technologies Inc. - 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

Page 3: Peak Positioning Technologies Inc. - August 2013

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

Page 4: Peak Positioning Technologies Inc. - 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

Page 5: Peak Positioning Technologies Inc. - 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

Page 6: Peak Positioning Technologies Inc. - 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

Page 7: Peak Positioning Technologies Inc. - 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

Page 8: Peak Positioning Technologies Inc. - 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

Page 9: Peak Positioning Technologies Inc. - 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

Page 10: Peak Positioning Technologies Inc. - 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

Page 11: Peak Positioning Technologies Inc. - 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

Page 12: Peak Positioning Technologies Inc. - 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

Page 13: Peak Positioning Technologies Inc. - 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

Page 14: Peak Positioning Technologies Inc. - 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

Page 15: Peak Positioning Technologies Inc. - 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

Page 16: Peak Positioning Technologies Inc. - 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

Page 17: Peak Positioning Technologies Inc. - 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

Page 18: Peak Positioning Technologies Inc. - 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

Page 19: Peak Positioning Technologies Inc. - 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

Page 20: Peak Positioning Technologies Inc. - 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

Page 21: Peak Positioning Technologies Inc. - 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

Page 22: Peak Positioning Technologies Inc. - 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

Page 23: Peak Positioning Technologies Inc. - 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

Page 24: Peak Positioning Technologies Inc. - 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

Page 25: Peak Positioning Technologies Inc. - 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

Page 26: Peak Positioning Technologies Inc. - August 2013

Peak’s Royalties from Chinese Operations

TSX Venture: PKK 26

$-

$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

Page 27: Peak Positioning Technologies Inc. - 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

Page 28: Peak Positioning Technologies Inc. - August 2013

Contact Information

Peak Positioning Technologies Inc.

Johnson Joseph, President & CEO

T: +1-514-340-7775 x 501

E: [email protected]

CHF Investor Relations

Jeanny So, Director of Operations

T: +1-416-868-1079 x 225

E: [email protected]

w w w. peakpos i t ioning.com

TSX Venture: PKK 28 August 2013


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