CEO Kim Dong Hyun (ph.D)

dhkim@nex-sys.co.kr

www.nex-sys.co.kr

NexSys Co. Profile

LTE based wearable technology for safety

Summary Part 1.

3

LTE based

wearable technology

for safety

“

“ Vision is…

1.1 Company Overview

4

Company Name

The Date of Incorporation

Human Resource

NexSys Co., Ltd.

2014 November 11th

6 people

Stockholders Kim Dong Hyun 51%, Kim Mung Sung 9%, Lee Soo Young 9%,

Lee Yul Gon 9%, Lee Jun Hun 9%, Yoo Chul Hyun 3%, Patentko Corp. 10%

Phone Number +82-70-5030-1964

Address #B206 Business Incubator Center Cachon University, 1342, Seongnam-daero, Sujeong-gu, Seongnam-si, Gyeonggi-do, Korea

President Kim Dong Hyun

1.2 History

5

NexSys Established

2014.11.11

2014.11

VADAS HD

2channels

Blackbox

Development

outsourced

2015.01

Acknowledged as Business

Research Center

2015.03

Receive 40 wearable

patents from Patentko

Corp.

2015.04

Cooperation Development

signed Taiwan company, Vatics

2014.12

Korea Credit

Guarantee Fund

loaned $200K

2014.11

FINEDIGITAL LTE, WiFi

Board Development

outsourced

2015.07

7 PCT Patent

filed

Received

$6,000(USD)

from Vatics

2015.08

Selected from 4 Government Projects (2015 The first half)

6

G-Tech Startup Project

(Gyeonggi Institute of Science & Technology Promotion)

2015.06

SW Industry Best

Project (SeongNam Industry Promotion

Agency)

2015.05

Startup Item Business Project (Korea Institute of Startup &

Entrepreneurship Development)

2015.06

Startup Growth Technology

Development Project

(Korea Technology & Information Promotion Agency for SMEs)

2015.06

+ Participated in the Seoul Metropolitan Disaster Simulation ISP Project (2015.07)

1.2 Government Projects

1.3 Company Capacity ( CEO )

7

Kyunghee University Electronics Doctorate (Image processing)

Former LG Innotek researcher – Pegasus Missile Development

Former MUTRO CEO – Kiosk, Video/Audio Recorder, Router

Former PROBE CTO – Samsung/LG Electronics PTZ IP Camera

Former DABONDA CTO – 1 ch./2ch. Car Blackbox, Sports Cam

Work for 7 Gov. projects – ETRI, Korea Electronics Technology Institute etc.

CEO Kim Dong Hyun (ph.D)

1.4 Award winning career

8

The Best National Development Award Be awarded the Presidential prize in SW (2009)

1.5 Intellectual Property

9

• We have 7 PCT patents & 55 Korean patents

PCT international patents (7ea) Have wearable device portfolio

Korean patents (55ea) Wearables 50ea, LBS 5ea

Korean Trademarks (12ea) Helpware, Silverlink etc

Design patents (1ea)

Helmet design

1.6 Team

10

Kim Dong Hyun

C.E.O

Kim Mung Sung

Embedded S/W

Lee Jun Hun

Application S/W

Park Ji Hyun

Application S/W

Lee Yul Gon

H/W

Lee Soo Young

H/W

• All of the participants are professional workers with more than 10 years of experience

within their expertise .

• All member worked as team more then 5 years.

• Well balanced with HW & SW

11

Nexsys Co. High tech start-up

Napatech Network solution Partner

LG U+ IoT LTE infra & sales partner

Vatics Video solution partner

(Taiwan)

BLT patent firm Intellectual Property Guardian

RoA Consulting Market/ strategy Partner

Seoul city 911 Making disaster prevention plan

1.7 Supporting Partners

• Have strong partnership based on Nexsys’ high tech & performance

• Have business connection with Seoul city government & LG group

• Providing Nexsys’ solution to Taiwan company Vatics co.

Marketability Part 2.

2.1 Needs

• Large accidents have increased dramatically.

13

2.2 Local smart helmet Consumers

14

Firefighters : 39,519

Police : 107,500 Sports Cam : 100,000

Military : 650,000명

(2013) – National Emergency

Management Agency

(2013) – the National

Police Agency

(2015) Wikipedia

Construction Worker : 2,566,832

(2013) – Ministry of Employment and Labor

Reserved

• 15.4 Million Workers in Korea

• Most accidents in the mining

and Construction industry

• Head injury being 45.5%

(2014) RoA Consulting

(only Korea)

2.3 Apply markets

15

Chemical Plant Soldier

Training Camp Shipyard

Power Plant Construction Manufacturing

Plant

• Fire, Military industries as well as the demand occurs in a

variety of industries.

2.4 Local market size estimates

16

16

$13.8M Total

Firefighter

Existing Market

$5.9M

$37.6M Total

Total Demand(Unit)

107,500

Police

Existing Market

$16.1M

$227.5M Total

Military

Existing Market

$111M

$513.3M Total

Construction

Existing Market

$115M

Price($)

150,000

Total Demand(Unit)

39,519

Price($)

150,000

Total Demand(Unit)

650,000

Price($)

170,000

Total Demand(Unit)

2,566,832

Price($)

4,500

• Smart Helmet total local market size is $792.3 Mil

(only Korea)

17

• Radio based helmet • Exports to Japan • Use Walky-talky • Video transmission X

SAGA-D

• 4 Channel Video Recording • Depth Camera • Head Mount Display • Depends on smartphone • Smartphone Communication

with Bluetooth

DAQRI

• LTE based Real time Video transmission

• Apply the fire field • Control platform • Interlocked with Bio-band

HELPWARE (NEXSYS)

2.5 Competitors

• Competitors in the Smart helmet market has increased

2.6 Government Policy (Enhanced Support for the Smart helmet)

18

<Joongang Daily 2014.09.24 News articles > <CIO Biz 2015.05.25 News articles>

Core Value Part 3.

3.1 Technology

20

Network

• NexSys retains 1)Hardware, 2)Software and 3)Network

HARDWARE

NETWORK

SOFTWARE

• Helmet Camera

• Car Blackbox

• Sports Camera

• IP Camera

Manufacturing

• Video CODEC processing

• Sensor control

• Management Platform

• Video Transcoding

• Camera App (iOS & Android)

Best Optimization

• LTE Board dev.

• Blackbox HDMI

• WiFi, LTE com.

• BT, BLE com.

LTE technology

3.2 Development Completion

21

2. HD 2 Ch. Blackbox 1. Communication Board

- Blackbox HDMI - Blackbox USB - WiFi, LTE com.

3. BLE Controling App

- Album, Snapshot - Front/Back light control - File management

- LED light/color control - Alarm function - MP3 playing function

• Earned 85,000 USD after establish

3.2 Development Completion

22

4. Snow cover meter

- Sales : IDOLINK Corp. - H/W, S/W, App : Nexsys - LTE Communication

5. China BlackBox

- H/W, Sales : Taiwan Vatics Corp. - S/W : NexSys

6. Wearable Band

- ECG sensor - H/W, S/W, App : Nexsys - BLE

• We have made 6 kind of Helpware product for safety

3.3 Growth Potential

23

• Contributed to Chipset Maker Vatics in Taiwan

• Receiving incentives from Vatics since July

• Contract with Vatics (Taiwan)

3.4 Developing Product – Smart Helmet

24

1 LTE Communication is connected to

this helmet.

Helmet with Camera

2 Especially, when members, who are in

dangerous places, can’t reach their smartphones,

control center can communicate with the

members in harm’s way.

LTE Communication

3 You may be able to control

the bio-sensor band for a

remote controller

Bio-band

Smart Device or Control Center

Camera

Battery

LTE module

Transfer bio signals

Wearable wristband

3.5 Smart Helmet Control System

25

• LTE helmet is not the main product

• We are developing Wearable Platform for industrial fields

Police Add on

Construction Add on

Rescue Team Add on

Rescue Team

3.5 Platform

26

Helmet with LTE, GPS, BLE and Sensors

Making ‘Wearable Platform’ Ver 1.0

1

2

Working Prototype

Platform Ver 1.0 - Live video - LTE streaming - Heart Sensor - GPS location

Financial Projection Part 4.

4.1 Sales

• Estimated sales and sales Cost as follows

Sales

Firefighter 1,400,000 2,100,000 2,100,000

Militery - - 4,550,000

Police - 1,750,000 875,000

Construction - - 3,500,000

Total 1,400,000 3,850,000 11,025,000

Sales Cost

Firefighter 420,000 630,000 630,000

Militery - - 1,365,000

Police - 525,000 262,500

Construction - - 875,000

Total 420,000 1,155,000 3,132,500

Profit and Loss of Sales 980,000 2,695,000 7,892,500

70.0% 70.0% 71.6%

2015(E) 2016(E) 2017(E)

(USD)

(only Korean market)

4.2 Operating Income

• Estimated Operating Income as follows

Selling expenses & administrative expenses

Depreciation 5,422 21,922 35,422

IDC Cost 12,000 18,000 27,000

Retal Expenses 24,000 60,000 84,000

Salaries Expenses 529,480 824,720 1,104,100

Advertising Expenses 70,000 192,500 551,250

Taxes and Dues 4,620 12,705 36,383

Entertalinment Expenses 5,600 15,400 44,100

Sales Commissions 210,000 577,500 1,653,750

Development Expenses 4,480 12,320 35,280

Insurance Premium 3,360 9,240 26,460

Bad Bebt Expenses 2,800 7,700 22,050

Amortization Expenses on Intangible Assets 2,100 5,775 16,538

Other Selling expenses & administrative expenses 98,140 269,885 772,853

비용합계 972,002 2,027,667 4,409,185

Operating Income 7,998 667,333 3,483,315

0.6% 17.3% 31.6%

2015(E) 2016(E) 2017(E)

(USD)

(only Korean market)

Total

Growth Strategy Part 5.

5.1 Activities

31

1. Participated at the beGlobal 2015 exposition

2. Partnering with LG U+

3. Recently interviewed at biggest broadcasting company(KBS)

• beGlobal 2015 • KBS IT Concert

• With member of the

National Assembly

• Partnering with LTE U+

5.2 Future Plan

32

Product Completion

Certificating Revenue Exporting

February 2016

• Field custom model

• Upgraded design

• Apply Construction

May 2016 August 2016 May 2017

• Upgraded line up

• Opening Platform

• Developed export

model

• Export(Middle

Asia, USA)

• Military product

• Developed HMD

• mass-produce

model

5.3 Marketing Plan

33

• (Korea) NexSys will receive certification from the ROK. Government Procurement office.

• (Abroad) NexSys will participate at International safety exposition and sign contracts for exports.

5.4 SWOT Analysis

Strength

• Rich Development

Experience(LTE

Product)

• Partnering LG U+

• Partnering with RoA

Consulting

• 55 Korean patents

• 7 PCT International

patents

Opportunity Weakness

• Large accidents

• Increasing Safe

Needs

• Telco’s New Revenue

• Expanding 5G Infra

• Early Stage Company

• Lack of Capital,

Human Resource and

sales network

Threat

• Public budget cuts

• New Competitors

• Price competition

• Regulatory changes

• Strength 1 : Developed real product+ works with LG U+

• Strength 2 : 55 Korean Patents

34

#B206 Business Incubator Center Cachon University, 1342, Seongnam-daero, Sujeong-gu, Seongnam-si, Gyeonggi-do, Korea

ADDRESS

THANK YOU

QUESTIONS?

070-5030-1964

TEL.

IPRs(55 Patents)

36

IPRs(55 Patents)

37