Link Motion Investor Presentation
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Link Motion Inc. A leading smart car and smart ride company Investor Presentation Link Motion Inc. (NYSE: LKM) April 2018 Safe Harbor Statement The following presentation has been prepared by Link Motion Inc. (the “Company”) solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment activity or trading strategy, nor may it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. NOTHING HEREIN CONSTITUTES AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OR INSTRUMENT IN ANY STATE OR JURISDICTION. The information included herein was obtained from various sources, including certain third parties, and has not been independently verified. The information presented or contained in these materials is subject to change without notice. No representation or warranty, express or implied, is made and no reliance should be placed on the truth, accuracy, fairness, completeness or reasonableness of the information or sources presented or contained in these materials. By viewing or accessing these materials, the recipient hereby acknowledges and agrees that neither the Company nor any of its directors, officers, employees, affiliates, agents, advisers or representatives accepts any responsibility for or makes any representation or warranty, express or implied, with respect to the truth, accuracy, fairness, completeness or reasonableness of the information contained in, and omissions from, these materials and that neither the Company nor any of its directors, officers, employees, affiliates, agents advisers or representatives accepts any liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. These materials contain statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers about the future, which can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Such forward- looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors and assumptions, many of which are beyond the Company’s control. Neither the Company nor any of its directors, officers, employees, affiliates, agents, advisors or representatives has any obligation to, nor do any of them undertake to, revise or update the forward-looking statements contained in this presentation to reflect future events or circumstances. The Smart Car is the Future Revolution Link Motion is built for the future smart car revolution, targeting the following emerging opportunities: Smart ride/ridesharing industry Hardware + software solutions for smart cars Corporate Highlights1 Link Motion has reinvented the car with the ‘Smart Space’ concept NYSE LKM This space is passenger-centric and provides all types of Market Cap2 $211M internet-connected services Shares Outstanding 101M In-car Smart Space services represents a new market with Cash & Equivalents $320M enormous scale ($100 Billion+) Notes Receivable $271M Top Shareholders RPL Holdings Limited China Rock Capital Mgmt Ltd The Link Motion Car Brain platform, a hardware + software solution BlackRock Investment Mgmt. Lombard Odier Darier Hentsch & Cie for smart cars, is critical in: Dimensional Fund Advisors L.P. Powering the smart ride fleet 1) As of Dec. 31, 2017 Enabling car makers and OEM’s directly 2) As of Apr. 20, 2018 Enabling public transportation companies 3 Investor Presentation Segments 1. From NQ Mobile to Link Motion 2. Overview of Link Motion Smart Ride Business 3. Overview of Link Motion Carputer/CarBrain Platform 4. Financial Overview 5. Key Catalysts and Milestones Part 1 NQ Mobile to Link Motion A look back and into the Future Computing Platform Evolution Electrification, Automation, and AI Bring Disruptive Change to the car industry Mainframe/ PC Smart Phone Smart Car Computer - 1980 1980 - 2000 2000 - 2016 2016 - Independent System Internet Mobile Internet Internet Of Things 6 The Smart Car is the Future Revolution NQ Was Founded for Smart Phone Revolution Link Motion Is Built For Future Smart Car Revolution Mobile Telecommunications Networks provide the basic Autonomous driving and Smart Infrastructure enable voice and data services to users ridesharing services Access to Internet services via the mobile app store Access to Internet services via in-car smart services extends to Smart Ride Space 1. Acquired Controlling Stake in Link Motion in 1. Utilizing the Link Motion Carputer and operate a 2015 Smart Ride business 2. Completed Divestments of major smartphone 2. Selling the Carputer directly to car makers and businesses in Dec 2017 OEMs 7 Link Motion Reinvents the Car with the ‘Smart Space’ The future smart car creates a personalized moving “Smart Space.” This space is passenger-centric and provide all types of services connected to the internet home on the road office / business Smart Space links your home and office to create a seamless internet lifestyle. 8 In-car Smart Space Services - A new market with enormous scale ($100 Billion +) 1 China’s Urbanization Trends Continue to Create Major Transportation and Logistics Stress 2 Ridesharing Services solve some of these issues. 3 Next gen solutions will come from Smart Space Services as passengers demand more 1.03 billion 500 million X 30 Min/ride Enormous times per hours per $100BN+ day day The number of car Avg. Time Spent in car transportation/day in every day by urban Potential Market Size China‘s urban population * population 30min •Source: survey on the tailored taxi consumers behavior in China's first, second and third tier cities [2015], • National bureau of statistics, expert interview, Roland berger. 9 Part 2 Overview of Smart Ride Business Smart Ride Operator - The Next Generation of Ride Sharing Mission – helping passengers enjoy their riding time by smart space services *Offers much more than just ridesharing *Self-built customized smart cars (created from Link Motion’s Car Brain Platform) *In-Car Smart Space Services Platform Riding Smart Space – Time During the Ride In-car: Riding Smart Space Smart Services Ecosystem Artificial Intelligence 3rd Party Developer Smart Space Services Open App Developer Plat- Video Audio High-Speed form Computing Power Game Info Internet Access Social E-com Customized Passenger-centered Design work ··· Automatic driving/Intelligence Logic Car-hailing Autonomous & Geo EV Basic Vehicle Model Basic Ridesharing 11 Smart Space Services by Link Motion CarBrain 12 Link Motion Smart Space Services Platform Ridesharing App Our App a /infrastructure services /infrastructure car-hailing data system/big ccount 3rd Party Traffic service in-car smart space Customized Car/ services Link Motion in-car Smart Space Service drivers/ Self Owned motorcade service Driver App 13 Smart Space Services Ecosystem Developers Social UI Tools Software 3rd Party Content Providers 3rd Party Service Providers Video Apps E-com Eating Audio Game Smart space Personal Travel services platform Smart Space Eco OEM Driver/Capacity provider Suppliers Energy supplier Hardware /SW Design Smart Ride Platform Transportation 14 Competitive Advantages Traditional Riding Link Motion Service Smart Ride Transportation Riding Services + from A to B, with Offering Smart Space high efficiency and Services low cost New Smart Ride Operator Taxi, ridesharing, Customized Types carpooling, car- smart car service sharing Connect users Tailored taxi Connect with customized passengers and Car Smart Service Capability Method Smart Car - drivers via mobile In includes Smart Car-hailing Apps Space Platform Taxi Car rental/car-sharing Traditional Taxi, Smart Ride Players Rental, Ridesharing, Services Car Makers Operators OEMs Riding Service Capability 15 Smart Ride Services Providers - The Center of the Car Industry Internet Auto Free Transportation Users Services Buyer Why Smart Ride Providers Win Video Smart Ride Service Operator *Provide Total Solution of Ride Audio Services Game Smart Space Service in Vehicle *Offer Smart Services During News Ride Service Brand the Riding Time OEM Social Supply *Win the customer through Car-hailing APP- Based E-Com capacity the customized experience work Financing OEM & Insurance Automation technology/component suppliers Industries 16 Business Development Milestones • 1H – Complete Development Phase • Key Milestones • Key Milestones including Pilot Program • 15,000 vehicles in 2nd year • 200,000 vehicles with smart • 50,000 vehicles in 10-15 cities space services covering more • 2H – Commercial Smart Ride in 3rd year than 50 cities Operation Begins in First Cities • 4 million orders per day • More than 1 million orders per day • Key Milestones • Smart Space Service • 5,000 vehicles in market • Smart Space Service • Open the smart car reference • First owned customized • 1 new car model per year design to car companies and vehicles equipped with smart • Upgrade service content ridesharing companies based service platform • Build Smart Space Service on Link Motion Car Brain and • Introduce