Internet of Things Inc. (TSX-V: ITT) IoT software and solutions provider December 2017
Overview INTERNET OF THINGS INC. Internet of Things Inc. (TSX-V: ITT) is a IoT software and solutions provider focused on acquiring and implementing strategic disruptive solutions targeting the Industrial IoT markets including: manufacturing, blockchain, transportation, etc. Through our global network, the Company has: Signed a joint-venture investment and distribution partnership with New Hope Data. A $15 billion, 70+factories, Chinese conglomerate. Formed a new subsidiary: Blockchain of Things Inc., and is currently at an advanced stage of pursuing the acquisition of a Company where IoT meets Blockchain. Signed Global Distribution Agreement with Weather Telematics, a leading sensor and predictive analytics solution provider, and is Pursuing technology partnership in Canada, United States & Israel with leading universities, research institutes and companies. 2
Strategic Partnership with New Hope Group On May 30, 2017, ITT signed a strategic partnership New Hope Data Technology Co (NHG Data). Under the terms of the JV, ITT holds a 51% interest and is responsible for providing industrial IoT technologies to NHG s network of 600+ factories and businesses, and other customers across China. NHG is responsible for sales and marketing, the big data platform and day-to-day operations. New Hope will also invest initially $2 Million as an operating and working capital loan into the JV. New Hope Group is one of China s largest privately-owned entities, with more than 600 subsidiaries and nearly 70,000 employees and $15.5 Billion in revenue, New Hope is involved in a wide range of sectors, from agriculture and real estate to infrastructure, chemical engineering, finance and insurance. 3
About New Hope Group Data New Hope Data Intelligent Plant, is a big data platform operational service provider, focuses on data monitoring and analytics by means of professional consulting and manufacturing process optimization. 80% of employees are graduates from top universities and all of them hold relevant experiences of the field such as internet of things, sensing network, statistical modelling, data mining, cloud computing. The Company manages to create value for customers with intensive experience on how to identify and solve the pain points which could facilitate the transformation of manufacturing process to upgrade from traditional style to a more advanced and scientific operational management. The Company aims to be the one of the top domestic intelligent plant big data platform providers 4
New Hope Group Data Intelligent Plant Sensor data collection platform Big Data, & Visualization tools Data Centre 5
ITT has formed a new subsidiary: Blockchain of Things ( BOT ) Inc. The business value-add of blockchain will exceed USD$3.1 trillion by 2030 1, while other analysts estimate that the blockchain technology market will generate $45 billion in revenue by 2027 2. Blockchain + Internet of Things = innovative new solutions, that can securely monitor/analyze industrial machinery at remote work sites. Blockchain enables allows participants (public/private) to track information through a secure network, thereby eliminating the need for any kind of 3 rd party verification. The Company s Blockchain of Things Inc. is currently at an advanced stage of pursuing the acquisition of a Company where IoT meets Blockchain, and will be providing further details in the coming weeks. 6
Global Distribution Agreement with WTI On November 8, 2017, ITT and Weather Telematics Inc. ( WTX"), announce that they have signed a global distribution agreement. ITT is currently in discussions with several European automotive manufacturers who are interested in integrating WTI s solutions. WTX is at the forefront of the explosive growth opportunity presented by the combination of Artificial Intelligence (AI) and the rapidly expanding Autonomous Vehicle market. The market size for AI systems for smart transportation is projected to be U$220 Billion by 2021, and U$87 billion by 2030 for Autonomous Vehicle Systems 1. 7
Weather Telematics Product Features Advanced Data Fusion Industry-leading Accuracy Proven Technology Advanced Data Fusion Data Fusion of multiple physical and machine learning models, crowd sourced data and sensor data AI/Predictive Platform WTX road surface temperature prediction model employs precise ground weather measurements vs derived surface temperature models Road surface temperature prediction model has been trained from 6 years of proprietary sensor network data Hyper-local/Real-Time Data 1km grids updated every 3 minutes across North America Industry-Leading Accuracy Provides >90% accuracy classifying real-time dry, wet, snow, and ice conditions on roads across North America, compared with ground truth Continuous model training and learning, which contributes to ever increasing accuracy Proven Technology Sole supplier of road weather data to National Weather Service since 2011 8
Key Market Catalysts Strategic partnership with New Hope Group will drive distribution & sales in China, the fastest global market for industrial IoT solutions. Key inflection point as all required technology (sensors, communications, big data, and machine learning) are moving from niche to general market. ITT Inc. is expanding its New Hope Group Joint Venture partnership, which has recently signed an agreement with a leading U.S. based industrial analytics provider, who originated from MIT s Media Lab and has multiple Fortune 500 customers. ITT Inc. is currently pursuing specific blockchain opportunities as it relates to the Internet of Things sector and potential M & A blockchain transactions. 9
Global Market Opportunity Interconnected devices are today s most dynamic business opportunity By 2020, there will be 200 Billion connected devices globally, with an estimated economic impact of more than U$14 Trillion 1. Global investment in Industrial IoT will reach U$60 Trillion by 2030 with over 50 Billion assets - machines, equipment, turbines, rolling stock etc.- connected to the Internet 2. The global industrial IoT market size exceeded U$100 billion in 2016 and is projected to grow to U$933.62 billion by 2025. This growth is driven by businesses seeking new operating models to create a connected enterprise for merging operational and information departments of the industry. This transformation is predicted to increase the overall productivity, enhance operational efficiency, improve visibility, and reduce the complexities of different processes in the industry 3. 10
US & China Market Opportunity The Asia Pacific regional market is anticipated to outgrow the North American market and emerge as the highest revenue-generating region, with China spearheading the growth, by the end of 2025 1. The China IoT market is expected to reach U$121.45 Billion by 2022, at a CAGR of 41.1% between 2016 and 2022. The major factors driving this market are the growing demand for smartphone and other connecting devices, the increasing internet penetration, rising trends of industrial automation, and mainstream adoption of cloud computing 1. IoT is expected to be a major force for industrial economic growth in China, delivering gains of up to US$1.8 Trillion in cumulative GDP by 2030. The four key industries that will be impacted by Industrial IoT are: manufacturing, transportation, mining and utilities 2. 11
What is the IoT Ecosystem? The Internet of Things (IoT) market links smart devices (sensors) to the Internet, which enables the exchange of data as never available before, and provides users with highly insightful & actionable data. IoT is made up of billions of smart devices from chips to machines that use wireless technology to talk to each other. In 2006, there were 2 billion objects and this projected to increase to 200 billion by 2020 (Intel). Through the adoption of IoT, companies will gain deeper operational insight which will enhance productivity, create new business models, and generate new revenue streams. Source: Business Insider 12
What is Industrial IoT? Industrial IoT is connecting the physical world of sensors, devices and machines with the Internet and, by applying deep analytics through software, is turning massive data into powerful new insight and intelligence. Industrial IoT will help manufacturers improve resource efficiency, safety and return on assets... creating new opportunities for revenue growth and cost savings. Lopez Research Source: McRock Capital 13
How Industrial IoT will Transform Industries? Conventional - Reactive Production/operational optimization very challenging Production downtime based on schedules, unscheduled downtime very costly Manufacturing employees with IT and data interpretation skills are costly and scarce IoT Enabled - Proactive IoT platforms will provide key insights to optimize production Sensors & predictive analytics will alert operators to pending issues, reducing downtime Socialization of required knowledge flattens skills curve; maximizes access to people with the right skills at lower costs By 2020, 200 Billion connected devices providing people & industries with actionable operational intelligence 14
How much will Industries benefit from IoT? By 2024, the global Industrial IoT market will add $4.2+ Trillion of value through market innovation & improved productivity alone! 15
Are Industrial IoT solutions driving real value? In a recent IDC survey, respondents reported a 16% to 58% improvement in operations through the implementation of Industrial IoT solutions! 16
Industrial IoT Operational Impact Improved Productivity Proven ROI Machine/asset downtime reduced by 36% Asset utilization improved by 33%, and Process improvement recorded at 49% Source: Dell Business innovation increased by 53% Competitive edge increased by 50% TCO decreased by 50% 17
Industrial IoT Potential Impact $3.88 Trillion of value creation over the next 10 years 18
Anticipated IoT Industry Spend Internet of Things Inc. is looking to build out an industry-leading Industrial IoT platform (sensors, communications, cloud, analytics, etc.) to help customers improve their productivity and profitability 19
Building out our Global IoT Ecosystem ITT end-to-end service offering Sensors/ Modules (BrainGrid) Connectivity Platform Applications Analytics Security 20
Management Team Michael Frank President, CEO Michael has over 25 years of experience in the high technology sector in operations, business development, M&A, and fund raising. Michael has had several successful exits including one to Intuit Inc. Khurram Qureshi CA, CPA CFO Khurram qualified as a Chartered Accountant in 1990 and has held senior positions with several small to medium size public companies. Khurram is one of the founding partner at CQK Chartered Accountants LLP. Khurram is a graduate of York University BAS, Accounting and Finance Rob Klein, VP Corporate Development Rob brings 20+ years of executive management experience to ITT. Most recently, as VP Corporate Development for a venture accelerator, where Rob has co-led the acquisition of five international companies, and multiple strategic partnerships. 21
Michael Frank Board of Directors Millard S. Roth M. Sc. Industrial Management Millard s career has encompassed serving as: interim CEO (Atelier America Inc., CCC Information Services of Canada Inc., Canadian Motion Picture Distributors Association); Co-Chair Repositioning Committee (Baycrest Foundation); Member of Board of Directors (Vubiz Inc., Tengtu International Inc., Swing Stage Ltd., Kimball Aim Labels Inc.); Advisory Board (Earthfresh Farms Inc., Human Solutions International Inc.) and Presidents Coach (Inniskillin Wines Ltd., Shaftesbury Films Ltd., Menu Foods Corp., TMS Marketing Ltd.) The Hon. Jerry S. Grafstein, Q.C. Co-Founder of a range of media companies, focused in broadcasting, cable, telecom, and publishing in Canada, Latin America, the UK and the US. He has served as an advisor to several key government ministries, including transportation, external affairs, consumer and corporate affairs, and justice. Gali Bar-Ziv Gali Bar-Ziv brings more than 15 years of management and entrepreneurial experience, including financing, mergers and acquisitions, strategic planning, channel development and corporate development. Mr. Bar-Ziv profitably grew a sales, marketing and distribution start-up to sales growth of more than 700% year over year. Prior to that, he successfully turned around the largest service division of a $300 Million financial services company. Mr. Bar-Ziv holds a Bachelor of Law (LL.B) degree from the University of London and an MBA in Strategic and Entrepreneurial studies from the Schulich School of Business in Toronto. 22
Capital Structure Shares Issued & Outstanding: 164,607,557 million Stock Options ($0.05 - $0.085): 11.72 million, ($638,500 if exercised) Convertible Debentures O/S: Series C, 2,810,000 shares @ $0.10 due 1/5/2018 ($281,000 if converted) Convertible Debenture Warrants O/S: Series A, 4,350,000 warrants @ $0.075/share expires 4/30/2018 ($326,250 if exercised) Series C, 200,000 warrants @$0.125/share expires 1/5/2019 ($25,000 if exercised) Convertible Debenture Warrants (To Be Issued Post Conversion of Debentures): Series C, 2,810,000 shares @ $0.125 expires 1/5/2019 ($351,250 if exercised) Other Warrants: BrainGrid Warrants Issued BrainGrid Corp. for entering into JV, 15,500,000 shares @ $0.05 expire 1/5/2021 ($775,000 if exercised) Finders Fee Warrants Issued for Investment into BrainGrid & JV, 900,000 shares @ $0.05 expire 1/5/2021 ($45,000 if exercised) 23
INVESTOR CONTACT: Michael Frank, President & CEO Mobile: 416.677.9277 Email: mfrank@iotintl.com www.iotintl.com 24
Disclaimer Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate or believes or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Such forward-looking statements and information are subject to risks, uncertainties and other factors which may cause the Company s actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of the Company. We undertake no obligation to reissue or update any forward looking statements or information except as required by law. All forward-looking statements and information herein are qualified by this cautionary statement. 25