ceo presentation 2011 agm 4 november 2011 · • launch of a new program combining datadot dna ®...
TRANSCRIPT
November 4, 2011 Ben Bootle
CEO – DataDot Technology Ltd
CEO Presentation
2011 AGM
4th November 2011
DataDot Technology Limited - Disclaimer
Disclaimer:
This presentation has been prepared by DataDot Technology Limited („DataDot”) based on information available at the time of
preparation.
General Securities Warning:
This presentation is not an offer or invitation for subscription of purchase of or a recommendation of securities. It does not take
into account investment objectives, financial situation and particular needs of the investor. Before making an investment in
DataDot, the investor or prospective investor should consider whether such an investment is appropriate to their particular
investment needs, objectives and financial circumstances and consult an investment advisor if necessary.
All Information including business forward plans in this presentation should not be considered as a recommendation in relation
to holding purchasing or selling, securities or other instruments in DataDot. Due care and attention has been used in the
preparing this information. However, actual results may vary from projected results and any variation may be materially positive
or negative. Forward plans, by their very nature, are subject to uncertainty and contingencies many of which are outside of the
control of DataDot.
Past performance is not a reliable indication of future performance.
November 4, 2011
Introduction
Business conditions have improved during the first quarter for 2011/11 for DataDot
Technology Limited (DataDot) and sales from existing customers are beginning to return
to the levels recorded prior to the Japanese tsunami.
The volume and quality of new business development activities that have been building
during the quarter are in line with management‟s expectations.
Business development highlights are outlined in the slides to follow.
November 4, 2011
DataDotDNA®
Secure solutions for asset protection, authentication and identification.
• DataDotDNA® and DataDot Metallic
• Stainless Steel DataDotDNA®
• DataThreadDNATM
• DataBaseDNA
• assetDNA software
Actual Size
1mm
Magnified
DataDot
DataDotDNA® system: Accurate identification results in successful prosecution.
November 4, 2011
Identification Deterrence/
displacement Prosecution
Business development highlights
DataDot Technology Limited - Asia Pacific
• Enhanced value proposition for all Australian motor vehicle OEMs has been developed
and is being presented to Australian OEM‟s.
• Club Marine Insurance and DataDot are expanding their Insurance program to New
Zealand in Q2 FY11/12.
• DataDot has partnered with Assa-Abloy and Crime Stoppers Australia to overtly and
covertly mark certain items prone to shoplifting, in a program being piloted at a major
hardware retailer.
• Launch of a new program combining DataDotDNA® bicycle theft prevention kits with a
new Assa-Abloy Lockwood branded bicycle-lock.
• In FY11/12, DataDot will open a sales and technical support unit in India.
November 4, 2011
Business development highlights
DataDot Asia Pacific - Distributor Initiatives
• Asset Protection Products International (APPI)
DataDot and APPI have launched DataDot Theft Protection Insurance. This combined
insurance and DataDotDNA® product has been developed for the Australian and New
Zealand auto-aftermarket (retail market). The product is underwritten by Virginia
Surety (Australia).
• DataDot Taiwan
Production run-rates and sales are almost 50% higher than the same period for the
prior year.
• DataDot Taiwan has been conducting successful police engagement programs within
the construction and heavy equipment sectors.
• DataDot Thailand
DataDot Thailand launched in Bangkok at a media function on 1st October. It was a
media success, generating over 30 newspaper, television and radio news items, and
has resulted in our first orders of DataDotDNA Kits into Thailand.
November 4, 2011
Business development highlights
DataDot - Americas
“Project Thor” DataDots now shipped to first USA customer:
“Project Thor” DataDots – stainless steel DataDots have been shipped to a large Southern
USA electrical utility for protection of standing electrical infrastructure.
This new DataDot in its 1 mm variant, can contain a 17 digit alpha-numeric character series
(such as a motor-vehicle VIN or other customised series).
November 4, 2011
1 mm
Thor DataDots are capable of being
made from materials optimised for
their application environment.
Stainless Steel (shown left) is
resistant to heat and UV light
exposure, making it ideal for
permanent marking of exterior
assets exposed to heat, sunlight
and cold.
Business development highlights
DataDot Americas - Distributor Initiatives
• DataDot Dealer Services (DDDS) – auto-aftermarket distributor
DDDS has brought on two new Auto Dealer Groups and has also obtained a new
major auto dealer customer who owns over 80 dealerships.
• DataDot Mexico - distributor
DataDot Mexico has executed a supply contract with GNP Insurance Company, one of
the largest insurers in Mexico. GNP apply DataDotDNA free of charge to selected
insured vehicles.
• South America - distributors
DataDot Chile is working with the Chilean government on theft reduction programs.
DNA Security, Brazil has informed DDT it intends migrating its existing impact
stencil car marking to DataDotDNA® This is likely to amount to several hundred
thousand DataDotDNA® kits.
CarDot, Argentina took delivery of a $50,000 order of DataDotDNA® kits in July and is
commencing a program to mark cars with a large local insurer. CarDot is also
working with government on crime and theft reduction strategies involving DataDot.
November 4, 2011
Managing Director of Eland Cables, Mr Philip Brown:
“we are excited about developing this break-through, value-added product for the
protection against theft of electrical cables and with working with DataDot. We believe
this will result in increased sales of both companies’ products through this alliance.”
• DDUK – subsidiary
Carole Nash, the UK‟s foremost insurance broker, in conjunction with Lumley
Jacobs, has arranged for each of its motorcycle policy holders to receive a free
motorcycle DataDotDNA® kit.
DDUK has entered into a sales agreement with Eland Cables Limited for the sale of
DataDot technologies into the electrical cable market. Using a proprietary technique,
DataDotDNA® and DataTraceDNA® will be applied to electrical cables and cable
accessories.
Business development highlights
DataDot Europe - Subsidiary Initiatives
November 4, 2011
Business development highlights
DataDot Europe - Distributor Initiatives
• DataDot Italia - distributor
DataDot Italia is pursuing a number of initiatives with other auto OEMs and fleet
customers.
As a distributor for DataTraceDNA® DataDot Italia is working on a range of exciting
DataTraceDNA® opportunities with a number of clients.
• DNA Program Polska (Poland) - distributor
Final discussions with another vehicle manufacturer will expand the auto OEM
customers in Poland to five. Two major insurance initiatives are progressing.
November 4, 2011
Business development highlights
DataDot South Africa - Distributor Initiatives
• South Africa
DataDot‟s licensee, DataDot Technology South Africa (DDSA), has secured a
number of additional auto OEM customers for “Whole of Vehicle Marking” utilising
DataDotDNA®
DataDotDNA® Production capacity (provided under our licensing agreement by DDT)
has been increased (two-fold) to manage the increased volume, including the
opening of a new dedicated factory to service one major OEM in South Africa and
provide additional backup capacity to existing OEM clients and new customers.
The motor vehicle market in South Africa exceeds 600,000 vehicles per annum, of
which DDSA has gained a substantial proportion as vehicle manufacturers and
distributors prepare for mandatory whole of vehicle marking.
Currently 18 auto OEM brands have chosen DataDotDNA® for their vehicle marking
solution.
November 4, 2011
Global seed industry security, coating
and seed enhancement
• IntelliSeedTM,
• IntelliBright,
• Seedworx, SeedXcell, Seed enhancement products,
• IntelliGlow,
• IntelliLabel, and
• assetDNATM.
November 4, 2011
Global seed industry is US$42bn
p.a., counterfeiting of seeds
ranges from 30% to 65% in
developing countries.
Business development highlights
AgTechnix Pty Limited • AgTechnix Pty Limited (AgTechnix) has achieved initial sales,
and repeat sales of IntelliSeedTM and its advanced polymer seed
coating products into markets including Australia, India and
China.
• AgTechnix has commitments for sales in India with orders
commencing in Q2/Q3 FY11/12 in line with seed coating season.
Pilot trials continue with most of the top ten Indian seed
companies (India is the world‟s largest agricultural producer).
• AgTechnix is also working on projects in:
SE Asia: Taiwan, China, Thailand, Philippines, Malaysia and
Indonesia. Trials intended to support potential sales in a
number of these countries in FY2013.
Europe: various opportunities being pursued and headway
made with major EU based agri-business companies.
November 4, 2011
• Engineered micro ceramic particles with unique tracers,
• Presence and concentration detectable by specially developed portable reader,
• Awarded prestigious DuPont “Innovation Prize” in 2008
• Featured in the Australian Technology Showcase from November 2010 onwards.
November 4, 2011
DataTraceDNA® system: A leading global solution incorporating technology developed
in association with the CSIRO.
“If terrorism did not exist,
counterfeiting would be the most
damaging criminal act of the early
21st century. Every year counterfeit
products and illegal overruns rob
companies & governments of
hundreds of billions of dollars and
counterfeit drugs & spare parts kill
thousands of people.”
The World Customs Organisation
Business development highlights
DataTrace DNA Pty Limited DataTrace DNA Pty Limited (DataTrace) has already achieved nearly 50%
of the last year’s revenue in Q1 FY11/12.
It is expected that last year‟s total revenues will be exceeded by late Q2 or early Q3
FY11/12.
This is due to the continuing interest in and acceptance of, DataTraceDNA® as an
effective anti-counterfeiting and authentication system by major global customers.
DataTraceDNA® is presently being trialled by a growing number of companies.
A selected list of activities during the last quarter can be found listed on the
following slides
(Please note, because DataTrace is a high security solution provider, it is often prevented by confidentiality
agreements from disclosing the names of its customers and co-operation partners)
November 4, 2011
Business development highlights
DataTrace DNA Pty Limited 1. A top-three European pharmaceutical company implemented DataTraceDNA®
technology for protection for one of its block-buster drugs against counterfeiting.
2. Coats plc (“Coats”), the world‟s leading industrial threads and consumer crafts
business, and VTTM Holdings LP (“VTT”), provider of “VerifiTTTM”, a unique anti-
counterfeiting technology incorporating DataTraceDNA® , have formed a joint venture
company, CoatsVTT Limited (“Coats VTT”).
CoatsVTT has been granted global rights to use VerifiTTTM technology, incorporating
DataTraceDNA® , as protection against counterfeiting and related fraudulent use of
global fashion brands in textiles, garments, apparel and related textile products.
Coats plans to use the technology in a unique traceable thread that uses the
verification properties of DataTraceDNA® to combat counterfeiting and improve chain
of custody management in the textiles industry.
November 4, 2011
Business development highlights
DataTrace DNA Pty Limited 3. DataDot‟s Chinese subsidiary (DDT Asia) has signed a DataTrace distribution
agreement with Centenary Limited, a Hong Kong company that packages cigarettes
for a number of Chinese tobacco companies and has a stake in eliminating
widespread counterfeiting in the Chinese tobacco industry.
4. Leading European supplier of construction materials is about to start a pilot
production trial using DataTraceDNA® material for authentication and warranty.
5. DataTraceDNA® technology has been selected by a large government-owned utility in
Asia for protection and authentication of its electric meter seals.
6. One of the global technology leaders in the bearing industry will incorporate
DataTraceDNA® into its products as a brand protection and anti-counterfeiting
initiatives.
November 4, 2011
Business development highlights
DataTrace DNA Pty Limited 7. Major manufacturer in the industrial assets industry in South America will introduce
DataTraceDNA® coatings as a security and warranty feature.
8. TraceCoatTM, the metal, glass and plastic coating product announced in January
2011, combining DataTrace and Surface Technology Inc.‟s technologies, is under
evaluation for proof of concept.
9. Manufacturing capacity for AuthentiCableTM, the anti-theft product for copper and
aluminium cable, is being enhanced to enable production-scale trials to commence
with cable manufacturing companies in North America.
November 4, 2011
Business development highlights
DataTrace DNA Pty Limited 10. DataTrace is currently in the development phase to enlarge and diversify its taggants
and detection device technology.
11. Laser Induced Breakdown Spectroscopy (LIBS) authentication technology continues
to be enhanced in funded R&D projects with large corporate clients. These exciting
opportunities are in mining services, for the identification of ore versus waste and in
building materials for life-cycle management, quality control and identification.
November 4, 2011
Business development highlights DataTrace & Relegen P/L – Customs and Border Protection
November 4, 2011
Photo: Customs & Border Protection
Real-time armoury tracking capabilities for Australian Customs
AT A GLANCE: Benefits
Customer
Australian Customs and Border Protection Service Benefits
The ability to track assets uniquely and a real-time view of
all assets in the armouries and in service
Increased staff productivity managing a considerable
arsenal of weaponry and protective equipment
Enhanced safety by ensuring officers are issued the
correct equipment, in proper working order
Improved security with proof of ownership and early
detection of missing weapons
Improved life-cycle management of assets for inspection,
maintenance, repair or replacement
See the full story on DDT Website:
www.datadotdna.com/au/datatrace_applications.php
Objective
Real-time views of all assets in multiple armouries and in
service with Customs Officers
Solution
• assetDNA software from Relegen
• assetDNA intelligent multi-layer tagging solutions from
Relegen
• RFID technology from HID Global
DataTraceDNA® from DataDot Technology
Implementation services from Relegen
New Global Sales Director
Ritchie Bloomfield
DataDot Technology Limited has appointed a Global Sales Director
Mr Ritchie Bloomfield.
Ritchie has over 15 years experience in senior operations, sales, marketing and business
development roles in technology-based organisations.
He was previously Vice-President, Sales and Marketing for Cap-XX, a world-leading
provider of high power, high energy super-capacitors.
Ritchie commenced employment on 24th October 2011.
November 4, 2011
New European Sales Director
Andrew Winfield
DataDot Technology Limited‟s European subsidiary, DataDot Technology (UK) Limited
(DDUK) has appointed a European Sales Director, Mr Andrew Winfield.
Andrew has extensive international distributor management and direct sales experience
in a variety of industries including transport, oil and gas, water, agriculture and renewable
energy, coupled with a sound technical background. Andrew was previously Export
Sales Manager for Permastore Limited, a UK based provider of worldwide containment
solutions. Andrew will commence in 14th November 2011.
Phil Kibler (MD – DDUK)
Phil Kibler, Managing Director of DDUK since 2002, will retire effective 31st December
2011, but will take a part-time consultancy role with DDUK in 2012.
November 4, 2011
DataDot - Awards & Recognition
November 4, 2011
• NAB Agribusiness Award for Excellence – Technology &
Innovation Award (2010)
• DuPont Innovation Award – Agriculture & Food
Production (2010/11)
• Ag Innovation Showcase, St. Louis, USA (May 2011)
• Featured in Australian Technology Showcase