Reinventing Professional Tools for the Creative Industries All statements in this presentation, other than those of October, 2014 historical fact, are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements ! regarding the future plans and objectives of the Company. These risks and uncertainties include, but are not restricted to, the need Andreas Haas for adequate financing for future acquisitions and growth efforts. There can be no assurance that such statements will prove to be CEO & Inventor accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all ! subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the ! dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update [email protected] forward-looking statements should circumstances or management’s estimates or opinions change. © 2014 All Rights Reserved Confidential Introduction World Class Pedigree Modbook Inc (incorporated Feb 2012) 1997 2008 2012 2014 First First Most Powerful First Workstation-class Personal Digital Assistant Tablet Mac Pen Tablet (Mac&PC) Pen Tablet (Mac&PC) Impressive Kickstarter Top 100 Success Raising $ 500K at $ 4.5M pre-money valuation Fast-track product lines (technology development complete) © 2014 All Rights Reserved Confidential The Problem © 2014 All Rights Reserved Confidential The Problem There are no mobile workstations for content creators © 2014 All Rights Reserved Confidential The Solution © 2014 All Rights Reserved Confidential The Solution: Modbook Pro & Modbook Pro X The only Mac OS X tablet computers on the planet (support native Windows, too) Workstation power & expandability for true desktop replacement All-in-one, soup-to-nuts, digital content creation power tools © 2014 All Rights Reserved Confidential The Solution: Modbooks Are Macs Like No Others Turning Apple notebooks into tablets Aftermarket transformation kit and service Respectful Mac citizens, accepted since 2008, 100% Mac Developer guidelines compliant ! Seamless hardware & software integration Fully compatible with Apple ecosystem Full native Windows support through Apple Boot Camp utility © 2014 All Rights Reserved Confidential The Solution: Top100 Sucess $400K+ pledges of $150K funding goal (including Last Call campaign) No. 100 of all successful tech projects No. 350 out of all 172,982 projects 125K+ campaign page visits 102K+ campaign video plays Successfully funded! 269% $403,824 Funded funded pledged Sept 7, 2014 © 2014 All Rights Reserved Confidential The Solution: Modbook Pro X 15.4-inch Retina pen display 2,048 pen pressure levels, tilt and rotate Up to 2.8GHz quad-core Intel i7 CPU Dual graphics, Iris Pro & NVIDIA GeForce Up to 32GB RAM, up to 2TB PCIe flash drive Innovative rear-facing Eyes-free Keybars Converts into a Notebook Even faster than a Mac Pro, nearly as expandable © 2014 All Rights Reserved Confidential The Solution: Modbook Pro 13.3-inch pen display 1,024 pen pressure levels Up to 2.9GHz dual-core Intel i7 CPU Intel HD 4000 graphics Up to 16GB RAM Up to 1.5TB solid-state storage Built-in 8x SuperDrive CD/DVD burner More powerful than any current tablet computer © 2014 All Rights Reserved Confidential The Solution: Maximum Productivity, Any Time & Place Airport: Napkin Sketch Arrival: Final Artwork From napkin sketch to final piece during 5 hour plane flight On plane => on client’s set => on weekend, poolside => back in studio Tommy Castillo (Creative Professional: Batman, Beauty & the Beast): “We all dream of getting that dream job and I have had many of them. But, never had I had the tools to hold onto them like this before.” © 2014 All Rights Reserved Confidential The Market © 2014 All Rights Reserved Confidential Creative Industries: Pen Hardware Solutions WW Market $ 2,074 M Creative Computers* Desktop Notebook Tablet PC Pen Displays Drawing Tablets 2015 Pen Other © 2014 All Rights Reserved * Counting only computer systems used by creatives and/or pen enabled Confidential Creative Industries: As Old As Humanity Powering communications since 40,000 B.C. © 2014 All Rights Reserved Confidential Creative Industries: Driven By Individuals Entertainment Gifted individual + pen Over 1.5 million in US alone* $65k median annual income* Business Creating content across all media for all walks of life and businesses Education Research HHMI Naval Postgraduate School Jet Propulsion Laboratory HOWARD HUGHES MEDICAL INSTITUTE Use of customer’s logo does not imply endorsement © 2014 All Rights Reserved Confidential * Based on U.S. Bureau of Labor Statistics data for 2013 Pen Tech. Market Leader (85%): Wacom Rev. Growth $ 788 M Creative Computers $ 20 M $ 684 M Pen Displays $ 98 M Drawing Tablets $ 446 M $ 201 M $ 383 M Pen Other $ 325 M +15% $ 53 M +53% +16% +18% Components and Other $ 410 M and $ 6 M CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 © 2014 All Rights Reserved * Source: Wacom Co., Ltd. (TYO:6727) financial statements (recalculated to the calendar year) Confidential Pen Hardware Solutions WW Market - Rev. Projections $ 2,549 M $ 2,315 M $ 2,074 M Creative Computers $ 1,863 M Pen Displays $ 504 M $ 188 M 3.6% 100% 84% 100% Drawing Tablets 84% 100% $ 359 M 84% 100% Pen Other Wacom 2015 2016 2017 $ 139 M Wacom captured ~85% with >38% Gross Profit (each of last six years) © 2014 All Rights Reserved * Source of projections: Financial statements of Wacom, Apple, Adobe; Gartner, IDC Confidential Competitive Analysis © 2014 All Rights Reserved Confidential Minimal Exposure to Potential Competition Desktops & Notebooks by Tablet PCs by iPad & Co. by Too small a niche No Mac OS X No Mac OS X Minimal Power Low Power, Too Small © 2014 All Rights Reserved Confidential Apple Ecosystem, A Perfect Niche For Modbook consume content create other HW 2015 (est. w/o Mac) Creative Computers $ 0.9 B (w/o Mac) Pen Displays $ 0.2 B Drawing Tablets $ 0.3 B Pen Other $ 0.1 B $ 93 B $ 32 B $ 3 B* $ 22 B $ 6 B $ 1.5 B iPhone iPad iPod Mac Accessories Pen HW Market Barriers: Market niche too small, focus on multi-billion market opportunities Protector: Apple does not license its operating systems © 2014 All Rights Reserved * Source of $ revenues: Apple fiscal year filings, recalculated to 2013 calendar year Confidential Wacom Rev. Split: Powered By Components & Access. to Endusers to OEMs $6M $20M $98M $201M $410M HP, Samsung, … other Creative Tablets Pen Displays Drawing Tablets Components OEMs Barriers: • 32-year accessory maker and component provider • Creative Tablets specs limited to protect component revenues © 2014 All Rights Reserved * Rev. source: Wacom Co., Ltd. (TYO:6727) financial statements (recalculated to the calendar year) Confidential Market Reception © 2014 All Rights Reserved Confidential The Solution: Top100 Sucess $400K+ pledges of $150K funding goal (including Last Call campaign) No. 100 of all successful tech projects No. 350 out of all 172,982 projects 125K+ campaign page visits 102K+ campaign video plays Successfully funded! 269% $403,824 Funded funded pledged Sept 7, 2014 © 2014 All Rights Reserved Confidential Positive Global Media Coverage “Modbook Tablet Is a Designer’s BFF.’ Impressively versatile… formidable engineering kung fu.” ★★★★★★★★☆☆ (8 out of 10) “We have always been impressed by the Modbook. Sturdy and strong. Great for creating design work on the move.” ★★★★☆ (4 out of 5) “The hardware is impressive, feels sturdy and durable. The Modbook Pro is a remarkable achievement and perfect for those who demand portability.” © 2014 All Rights Reserved Confidential Enthusiastic Installed Base “I'm a gadget guy so I love to collect new, interesting things... and what an incredible device this [Modbook Pro] is.” Steve Wozniak, Apple Co-Founder “Nothing compares to the power of a MacBook Pro and a Cintiq in the form of a Modbook Pro in one’s hands, anywhere you go.” Tommy Castillo, artist “The power and mobility of the Modbook Pro are a game changer for me.” Kody Chamberlain, artist Arnaud Boutle it is here, and it is great! Larry Navarro Just Got an i-pad as a gift. It's getting Rob Cabrera I tried out an iPad and liked it, but it's returned ! nuf said. ABSOLUTELY NO MATCH for the Modbook! Kristen Tblahblahblah. honestly the best investment Kristin Laflin I love my Modbook Roylander J. Williams Jr. I finally broke down and i've ever made. got a Modbook pro and it was well worth every penny. © 2014 All Rights Reserved Confidential Roadmap © 2014 All Rights Reserved Confidential Roadmap 2015 2016 2017 Modbook Pro / Pro X Creative Computers New Product Intro Pen Displays New Product Intro Drawing Tablets Intro © 2014 All Rights Reserved Confidential Business Model © 2014 All Rights Reserved Confidential Phase 1: Direct Sales End Users [North America] End Users [Worldwide] Market Channel Modbook Online eCommerce System Mid Volume (High-end) Products Creative Computers © 2014 All Rights Reserved Confidential Phase 2: Add Select Local Solution Providers End Users [North America] End Users [Worldwide] Market Channel Solution Prov. Modbook Online eCommerce System Low Mid Volume Mid to Higher Volume Products Creative Computers Pen Displays © 2014 All Rights Reserved Confidential Phase 3: Add Distributors End Users [North America] End Users [Worldwide] Market Reseller Channel Solution Prov. Distributors Modbook Online eCommerce System Low Mid Volume Mid to Higher Volume High Volume Products Creative Computers Pen