Investor Overview
October 2013
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in rugged tablet PCs for
developers of the
a global leader and innovator
over fifteen years
most rugged tablets
on earth
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Notice:
This Presentation (the “Presentation”) has been prepared by Xplore Technologies Corp. (the "Company") solely for
informational purposes. THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY SECURITY.
The information contained herein has been prepared to assist interested parties in making their own evaluation of the
Company and its prospects and does not purport to contain all of the information that a prospective investor may desire.
In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set
forth in this Presentation and further documents transmitted to the recipient in the course of its evaluation of the
Company. The Company makes no representation or warranty as to the accuracy or completeness of this
Presentation, including any projections or statements about the prospects of the Company, and shall have no liability for
any representations (expressed or implied) contained in, or for any omissions from, this Presentation or any other
written or oral communications transmitted to the recipient in the course of its evaluation of the Company. Only those
representations and warranties that are made by the Company in a definitive purchase agreement will have any legal
effect.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION ON
BEHALF OF THE COMPANY NOT CONTAINED IN THIS PRESENTATION. IF YOU RECEIVE ANY SUCH
INFORMATION OR REPRESENTATION, YOU SHOULD NOT RELY UPON IT. IF YOU HAVE ANY QUESTIONS
RELATING TO THIS PRESENTATION, YOU SHOULD DIRECT YOUR QUESTIONS TO THE COMPANY’S CHIEF
EXECUTIVE OFFICER OR CHIEF FINANCIAL OFFICER.
This Presentation includes “forward-looking statements.” All statements made in this Presentation that are not of a
historical nature are forward-looking statements. These forward-looking statements reflect the Company’s current
expectations, estimates and predictions about future results and events. Such projections and statements are based
upon assumptions about future events that are inherently uncertain and subjective. Although the Company believes
that the expectations contained in these forward-looking statements are reasonable, it cannot give any assurance that
these expectations will prove to be correct. Actual results may vary materially from those described in the forwardlooking statements. The Company is under no duty to update any of the forward-looking statements after the date of
this Presentation or to conform these statements to actual results. Nothing contained herein is intended to be, nor
should be relied upon as, a promise or representation as to future performance of the Company.
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company profile
Headquarters
Austin TX
d
NASDAQ Since 2012
XPLR
Xplore: Manufacturer of the World’s Most Rugged Tablets
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a
pioneer in rugged
tablet technology
First with automatic touch
and pen input
Developers of the first and best
sunlight viewable display
First to Market Most
Powerful Desktop Processor
in Tablet
First Telco / Cable specific
tablet (HDMI-In/RJ-45)
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Traditional Market for Rugged Tablet
Field Install & Repair Techs
Military Operations & Spec Ops
Oil Field Pipeline Inspectors
Forklift Drivers
Warehouse Inventory Managers
First Responders / EMS
Pharmaceutical Scientists
Doctors & Nurses
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Providers in the Rugged Tablet Market
VDC Market Estimates for CY 2013
Note: Highlighted vendors have either exited the market or significantly reduced presence this calendar year
Note 2: Xplore has traditionally played in the Ultra Rugged space. Product line expansion more than triples addressable market.
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Market Growth: Fully Rugged Tablet by Deployment Environment (VDC
Estimates)
Markets enabled / expanded
by enhanced product line
Key Take-Away:
Xplore Traditionally
Plays in the UltraRugged niche of the
Rugged Space –
Approx 30% of Total
Opportunity
Assumptions:
By delivering fully
rugged tablets (IP65),
lighter weight & lower
cost tablets Xplore
will expand it’s
addressable market
to 100% of the
opportunity
Xplore’s legacy of
innovation, quality
and differentiated
product will enable
significant market
growth
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Xplore : Most Rugged Tablets in the Market
iX140C5 Series:
Waterproof
Shockproof
Readable in Direct Sunlight
Always Connected
Extreme Temperatures Ranges
RangerX Series
Most Powerful Rugged Android Tablet in
the Market
Fastest Processor
Most Storage capacity
Best drop rating
Water and Dust Resistant
Brilliant sunlight readable display
Only tablet with HDMI-In & Gigabit
Ethernet – perfect for Telco & Cable
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differentiation
is in our DNA
The Most Rugged Tablets On Earth – Tested by Tougher Methods
Only Tablet With Onsite Repair And Upgrade
Long Life Cycle For Unparalleled Savings
Award-Winning Sunlight Viewable Displays
Outstanding Performance & Data Protection
Safely Operates in Explosion Prone Environments
Ability to Customize Configurations for Large Opportunities
Unique Configurations for Telco / Cable (RangerX)
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Xplore - A-List Clients
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Xplore – Strength in Relationships
Strategic Development Partners
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Mature Resellers
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Recent Wins and Announcements
Multiple millions of dollars in US Military orders, recently won first major
program award
Multiple millions of dollars in orders from Medical Equipment Manufacturer
in an OEM relationship
Continued expansion of $17M+ AT&T relationship
Launch of the iX104C5 DMSR LTE and DMSR – M2
Launched a new fully rugged Android Tablet - RangerX
Ranked #3 in the 2013 ABI Research Media Tablet Market Analysis behind
Samsung and Apple - Xplore was the only Rugged Tablet Manufacturer
included in the rankings!
Named Official Tablet of Reebok Spartan World Championships
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Paradigm Shift = New Market Opportunity
Traditional Segmentation Lines are Blurring…
Tablet Sales Are At An All Time High, With
Expectations For Continual Growth
Commercial tablets experiencing a high failure rate as they
attempt to move into corporate space as well as IT management
issues
Rugged Tablets Are Fastest Growing Form Factor –
VDC
xplore
$.5B Total Ultra Rugged*
13x
$6.9B Total Rugged Mobility*
Fulfilling enterprise needs through experience and expertise.
Rugged tablets finding new markets as rugged needs emerge in
new market segments
The Two Markets Meeting Create A New, Enormous
Segment With Rugged Needs
Xplore is Best
Positioned to
Exploit this
Disruptive
Opportunity
Commercial Tablets
*Data from VDC Research
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Xplore Market Objectives
Leverage Leadership Position in Ultra Rugged Space
Expand Reach With Lower Weight / Lower Cost Fully
Rugged Products
Take Advantage of Converging Tablet Space with Android &
Windows Offerings
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Strong Financial
Performance
Year over Year Revenue Comparison
$35,000,000.00
$30.5
$27.5
$30,000,000.00
$25,000,000.00
$20,000,000.00
$17.6
$15,000,000.00
$10,000,000.00
$5,000,000.00
$0.00
FY11
FY12
**FY starts March 31st
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FY13
Financial Highlights in
FY2013
Reported first profitable year in Company’s History
Generated approximately $3 Million of cash from
operations
Gross profit of approximately 34%, an improvement of
13%
Completed Recapitalization whereby
Raised $10 Million in cash
Converted all preferred stock to common stock
Up-listed to Nasdaq exchange
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Xplore
Strengths
Solid Existing Business Line
Most Rugged Tablet in the Market
Exploding Market with High Growth Potential
Pioneer & Leader In Rugged Tablet Computing
Replicable, Scalable ODM Model with Industry Leading Strategic Partnerships – over
100,000 deployments worldwide
Proven Ability to Sell & Support Fortune 100 companies - for example, marquis
accounts such as AT&T
Development of New Products for Convergence of Consumer/Commercial
Tablet with Rugged Mobile Market
Xplore is best positioned to exploit this opportunity
Phoenix is deeply committed with a $25 million investment and a history of
big turn arounds:
Bates
Newpark
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Investor
Considerations
World Leading Provider of Rugged Tablets
In a Market with Exploding Growth Potential
With Opportunity to Triple it’s Addressable Market With
New Products By 2014
Cash Flow Positive
Debt Free
Positive Working Capital (Current Ratio 4.2:1)
$10.3 million in Cash
$86 million Tax Loss Carry Forward
Market Capitalization of $29 million on July 1, 2013
Significant Insider (Phoenix) Ownership at an Average
Cost of $8/Share
Financial Data as of June 30, 2013
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KEY EXECUTIVES
Over 140 Years of Experience
With nearly a century and a half of experience in managing various large
high tech firms, the Xplore team is uniquely equipped to lead the company
to success in the market.
Phoenix Group | Communication Intelligence Corp. | Newpark Resources, Inc.
Bates Manufacuturing Company, Inc | Wavestat Wireless Inc. | Cabletron Systems
Digital Equipment Corp. Acxiom | Dell | Tipping Point Technologies, Inc. | Thinkwell
Corporation | Sirific Wireless | Texas Instruments | Acer Advanced Labs, Inc.
The Executive Team
Philip S. Sassower - Chairman + CEO
Mark Holleran - President + COO
Michael J. Rapisand - CFO + Corporate Secretary
Jim Plas - VP Marketing
Bryan J. Bell - VP Engineering
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OTHER INFORMATION
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