Revenue Opportunities and Guideline Pricing Models for Commercial Growth in Video Virtualization

Investor Presentation - December 2017

ASX:LNU

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DISCLAIMER

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• Liniusistheonlycompanythatturnsvideointodata

• Liniusinventedit,builtitandpatentedit

• Videowillbe82%ofinternettrafficby2021

• Amazon,MicrosoftandIBMarebattlingitoutforacompetitiveedgeinvideocloudservices

• LiniusisnowavailableonAmazonWebServices,MicrosoftAzure&IBMBluemix

• Accessingthedatawithinthevideofileisthemissinglinkforthesecloudproviders

• CompaniesarebuildingonLiniusVVE&clientsarebuying-in

Highlights

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Introducing: The Linius Video Virtualization Engine™ (VVE)

Topprovidersareracingtovirtualizevideoservices,optimizingAI&bigdata.

Liniusvirtualizestheactualvideo,makingitaccessibleasdata,

providingthemissinglinkforvideocloudservices.

LiniusisavailableonAmazonWebServices,MicrosoftAzureandIBMBlueMix

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Linius Owns the Virtualization of Video

ü Fullygranted corepatentsin: US,EU,Canada,S.Korea,PRC,HongKong,Singapore,andAustralia

ü Filingnewpatentsinlinewithourcommercialisationstrategy:

• 2continuationpatentsgrantedinUS

• 2patentspending

• Additionalpatentsinprocess

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Empowering The World of Internet Video

By2021,theworld’sinternettrafficwillexceed278billiongigabytespermonth.

Morethan82%ofinternettrafficwillbevideoby2021.

Cisco,2017

VirtualizationofBigDataisnothingnewinthesoftwareworld,butithasneverbeenachievedinthebiggestdataofall,video.

Untilnow!

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Vision: To Make the World’s Video Available as Data

TheLiniusVideoVirtualizationEngine™(VVE) transformstraditionalvideofiles,intodata(orvirtualizedfiles),enablingunprecedentedcapabilities,flexibility&monetization.

Accessingthedatawithinthevideofileisthemissinglinkforvideocloudserviceproviders,creatingunparalleledvalueacrosstheinternetvideoindustry.

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Linius Owns the Virtualization of Video: Linius invented, built and patented theworld’s only Video Virtualization Engine™ (VVE)

Large & Expanding Market:• Amazon, Microsoft & IBM are investing billions in video services (technologies) and

artificial intelligence in the cloud• It is arguably the biggest battle on the internet, given that video will account for over

82% of internet traffic by 2021• Accessing the data within the video file is the missing link for video cloud service

providers, creating unparalleled value across the internet video industry

Linius Rapidly Scaling:• Linius is now available on Microsoft Azure, IBM Bluemix and Amazon Web Services,

providing the ability to scale across multiple platforms• Linius, and others, are now building commercial products around Linius’ VVE• Clients are buying-in

Mission: Scale the Business Across the Internet

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Linius Has Attracted

Global Leaders

in IP Video

The Team

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A World-Class Video Commercial Team

Chris is an accomplishedinternet video executive withmore than 20 years ofexperience leading techcompanies in the US, Europeand Asia. Since 2010 has heldGM level roles in public andprivate video technologycompanies globally, afterspending 10 years in SiliconValley leading productmanagement for VC fundedstartups.

CHRIS RICHARDSON ExecutiveDirectorandCEO

KEVIN KYEREVP,Search

Kevin has worked in the digital spacefor almost 20 years, buildingadvertising businesses across theglobe. Most recently, he drove thegrowth of Listglobally, a global realestate advertising site in over 50countries. Prior to that, he spent 10years at Yahoo. His tenure there sawhim participate in the building ofYahoo’s search platform, lead theturnaround of it’s European division,implement a strategic partnershipwith Microsoft. Prior to Yahoo Kevinheld various marketing and businessdevelopment roles for digitaleconomy businesses.

Ken has scaled both start-up andlarge media companies, with richexperience in video, digital media,and AI; most recently as ChiefInnovation Officer for Kodak.Previous roles include Head ofWireless MTV, VP Global DigitalJim Henson, Global New Productsfor Turner, and GM of Content forVirgin Mobile. Ken also was onthe founding team of successfulstart ups Oberon Media ($800 milvaluation,) Flash Networks, cPulseand Hemisphere Interactive.

KEN RUCKEVP,PersonalizedAds

Peter has been a senior media andentertainment executive in multi-platform content production,programming and distribution. Hehas worked as VP Sales/Marketingat HBO, SVP Distribution CNNInternational, SVP MuchMusic USA,Sr. EVP Content/Digital Billboardlive,and SVP Programming at MTV/TheBox Music Network. Most recentlyhe was Head of BusinessDevelopment for ExperienceProximity, a leading mobile AR/VRcompany in Los Angeles.

PETER COHENEVP,Anti-Piracy

Tom has worked in disruptive AIbased technologies for over the last20 years. An expert in machinelearning as applied to video & otherbig data, he leverages his technical &business development background toachieve deep product/market fit.Prior to Linius, he held a number ofexecutive and founding positionswhere he was responsible forproviding products and services toFortune 500 companies in Retail,Advertising, Broadcast, Social, the USIntelligence Community (IC) andDepartment of Defense (DoD). Tomreceived his BSEE from RutgersUniversity and MS from MIT MediaLaboratory.

TOM SLOWEEVP,SecurityandDefense

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A World-Class Video Commercial Team

TRISTANPLACECountryManagerANZ

Tristan Place is a digital technologysales executive with 15+ yearsexperience in established, startup,and early-stage software,professional services andapplications companies focused onvideo. His broad IT knowledgeacross enterprise software, SaaSand bespoke applications for OTTIPTV, ViOD, TVE and related 2ndScreen services has earned himrecognition as a business modeland technology Subject MatterExpert. Tristan has worked withTelstra, Foxtel, Network Ten,Skyracing, News Corp and others indelivering transformational videotechnologies to their businesses.

AUDREYKUChiefSolutionsArchitect

Audrey has vast experience in theDigital Media Entertainment space,worked for broadcasters, telco andstart-up on video technology and itsdigital strategy for successfultransformation into the digital worldof Entertainment. During her Foxteltimes, she leads the content factorytransformation, architected 2012London Olympic Games, 2010Vancouver Winter Games, Foxtel onXBOX and Foxtel hybrid STB, Mostrecently with Telstra, architectedglobally renowned integrated OTTplatforms including Telstra BigpondMovies in Australia, StarHub Go inSingapore, Tonton in Malaysia, BlinkTV in Phillipines and Mediaset inSpain.

IVANBENKOChiefSolutionsArchitect

Ivan has been involved in the digitalmedia space for over a decade. He isequipped with rare hybrid skills,both technical as well as business,enabling him to deliver highlycomplex projects. He was one of thekey people who helped to establishthe most successful Australian basedsoftware house, Atlassian, back in2009. Since then he has spent timein consulting at Thoughtworks andacross the digital media agencyscene, assisted various startupsand gained invaluable knowledge atAkamai. Example of projects includeStan.com, Yahoo!7, Channel 7,9,10,Skyracing.

GERARDBONGIORNOChairman

Mr. Bongiorno is Principal and Co-CEO of Sapient Capital Partners, amerchant banking operation andhas over 30 years of professionalexperience in capital raisings andcorporate advisory. Prior toforming Sapient (formerly OtwayCapital), Gerard was Head ofProperty Funds Management atChallenger Financial ServicesGroup (CFG) and was GroupSpecial Projects Manager atVillage Roadshow. Earlier in hiscareer he worked at KPMG ininsolvency and corporate Finance.

OliviaHartisaglobalimpactmarketerandstrategist,withoveradecadeofexperienceinacceleratinggrowthandcreatingcompetitivemarketpositioningforB2B&B2Cstart-upandscale-uptechcompanies.Herdiverseportfolioofexperienceincludesarangeofverticalslikelifestylebrands,socialimpact,adtech,data,andentertainment.Shehasrefinedthestrategiesrequiredtopermeatesaturatedmarkets,convertcustomers,andcreatethesystemsneededtofacilitaterapid-growth.

OLIVIAHARTHead of Marketing

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How Does It Work?

Linius Has the World’s Only

Video Virtualization Technology

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Step 1: Extract Data from Video (creating a virtual video)

VirtualVideoOriginalVideo

FlexibleDataofAudio&Video

Inflexible,ImpenetrableVideoFile

VideoVirtualizationEngine™

1. Liniusremovesthevideocontainers,andenablesaccesstovideoandaudiodatablocks

2. Thisprocessiscalled”virtualization”- Datablocksthatmakeupthevideoareexposed

3. Nowthatthedataisexposedintelligentbusinessrulesandapplicationsareapplied

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Step 2: Enhance the Data (giving it meaning and value)

VirtualVideo

FlexibleDataofAudio&Video

LiniusGenome IntelligentVideo

TreatDatawithEnhancements NewVideo:GivingtheDataMeaningandValue

MetaDataEnhancement

DynamicAdEnhancement

Protection Layer

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Step 3: Reassemble the Video (custom to each individual viewer)

IntelligentVideo Assembly & Playout

Reassembleonthefly

Oncetheintelligentvideoiscreated,theplayoutisdeliveredtotheneedsoftheuser:

• Search: Findingspecificsegmentsofvideo

• ContextualAds: Framelevelcontentisusedtomatchads

• Secure Content: PlayoutonlyhappenswiththerightauthenticationNewVideo:GivingtheData

Meaning&Value

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Commercialization & Guideline Pricing Models

Liniushasthepotentialtotransformmanymulti-billiondollarmarkets,andisinitiallyfocusedon:

Search: Searchwithinvideosandcompilenewvideosonthefly

SecurityandDefense: Intelligentsearchandimmediatedistributionofsecurityfootage

Anti-Piracy: Applyingprovendataprotectionmethodstovideotosolvecontentpiracy

PersonalizedAdvertising: Hyper-personalizedtoindividuals,timeslotsandcontent

Pricingdisclaimer:indicative,variablebyregion,marketandactualsolution

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SEARCH (Potential Revenue Opportunity: $60M+ pa)

ProductDescription

• LiniusVVE,LiniusPlayerandLiniusAIIntelligencesystem, deployedonMicrosoft,suppliedtoonlineclientswithlittle/nointegration

• Theworld’sfirstcommerciallyavailablemonetizationmethodforvideoartificialintelligenceanddynamiccomposition

Proposition • World’sfirstpersonalizedvideosearchresults• Liniusturnsvideointodata,exposingtheentiretyofthevideocontentlibrarytotheusers,downto eachframe• Search algorithms stitchtogetherandreturnelementsofmultiplevideosthatmeettheirsearchcriteria, onthefly

TargetMarket

ApplicabletoMedia&Entertainment,HigherEducation,Corporate, Sports

GuidelinePricingModel

Liniuspaidpersearchmade (paidbythecontentowner) 0.075centspersearch

Whenadsareinsertedinthevideosearchreturn(payperview) 0.1centsperadserved*

Whenapaymentgatewayinterceptssearchreturn(paidperpurchase)

0.1centsperview*

MarketStatistics

• 55%ofpeoplewatchvideoonlineeachday

• Marketisgrowingat20-40%pa

• Snapchatterswatch10Bvideosaday

• 500MpeoplewatchvideoonFacebookeveryday

• YouTube- 5Bvideoviewsperday

• YouTube- 18%marketshareofvideooninternet

• Conservatively~10Bvideosearchesperday

MarketRevenueOpportunity2%shareofthismarket,andassume10%ofthisdisplaysanad

POTENTIAL:$60Mpa

*Paidbycontentowner

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SECURITY & DEFENSE (Potential Rev. Opportunity year 1: $60M & $15M)

ProductDescription

• LiniusVVE,LiniusPlayerandLiniusAIIntelligencesystemsuppliedtoonline(OTT)clientswithlittle/nointegration• Thefirstcommerciallyavailablemonetizationmethodforvideoartificialintelligence

Proposition • Videotobeanalyzedatscale,instantlycompiledbasedonintelligenceandinjectedintoworkflow• Turnsvideoanalysisintoactionableintelligenceinminutesinsteadofdays

TargetMarket

Applicabletogovernmentagenciesandvideosecurityfirms

Delivery DeliverywithMicrosoft,withopenAPItoanyAIsystemandonsitedeliver

GuidelinePricingModelLicensefee Variableperseat(potentially$10Kplus20%pa)

Licenseisperseatorenterprise(e.g.governmentdepartment)

Variableperlibrarycontent

Liniuspaidpersearchmade 0.075centspersearch*

MarketStatistics

• Videosurveillanceisa$40Bmarket

• 72Mhours(822years)ofvideoacquiredperday

• Videosurveillanceis20%ofUK’scriminaljustice

budget

• Only0.2%ofallUSfederalvideofootageisever

viewed- itwouldtake7millionanalyststo

accomplish

MarketRevenueOpportunities- 2%ofthe72Mhoursofvideo(16.2yearsperday)- 5,848licenses(seats)ofLiniusrequired- IfLiniusseatis$10Konetime,andthen$2,500peryearongoing

POTENTIAL:Year1- $60M(licensing)+20%S&Mongoingpa

*Paidbygovernmentagencyorvideosecurityfirms

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ANTI-PIRACY (Potential Rev Opportunity: $30M pa)

ProductDescription LiniusVVE,LiniusPlayerandLiniusContentProtectionsystem,deliveredbyIBM

Proposition • Protectagainstindustrialespionageandhackingduringproduction/post-productionprocesses• Controllingcopyingandredistributingofthefilesubjecttoeachspecificclient’sbusinessrules/needs• Keeps theactualvideodatainaccessibleuntilthecontentownerissatisfiedtoreleaseit

TargetMarket Applicabletocontentproducersandowners,suchasMovieStudios

GuidelinePricingModel

Licensefee Variable

Liniuspaidperview* 0.075centsperview

MarketStatistics

• FilmpiracycoststheUSeconomy$20.5Bperyear

• 100Bvisitstopiratesitesperyear

• 432Minternetusersregularlypiratecontent

• In2016,peer-to-peerdistributorswereresponsiblefor5.4B

downloadsofpiratedwide-releasefilms

• Astolenfilmthatappearsonlinebeforeappearingin

theaters,loses19%ofitsboxofficerevenueonaverage,

comparedwithfilmsthatarepiratedafterthey'rereleased

*Paidbycontentowner

MarketRevenueOpportunities5%ofthehighvaluestudiocontentmarket

POTENTIAL:$30Mpa

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PERSONALIZED ADS (Potential Rev Opportunity: $500M pa)

ProductDescription LiniusVVE,LiniusPlayer,APItoadservers,suppliedtoonline(OTT)clientswithintegrationintoworkflows

Proposition • Internetstyle,datadriven,individuallytargetedadvertisements inallformsofTV• Nolimitationontimeslots– runapersonalizedadinacontextuallyrelevantslot• Nolimitationonformat– integrateadvertisingintothecontent• No AdBlockersinOTT– thereisnochannelchange• Ownthedata– disruptscurrentmonitoringindustry

TargetMarket ApplicabletoMedia&Entertainment

GuidelinePricingModel

Paidperadinserted 0.01centperadserved*MarketStatistics

• TheUSTVadvertisingmarketrevenuesof$90Bpa,Cable

$75.3B,IP$15B

• Total#ofadsviewed~9- 12trillionpa,intheUS

• 225MconsumersareactiveusersofAdBlockers

• AdBlockingforecasttocost$35Bby2020

• WithLinius,AdBlockersdonotwork,savingthisrevenue*Paidbythebroadcaster

MarketRevenueOpportunitiesAt0.005%marketshare,Liniusgeneraterevenues

POTENTIAL:$500Mpa

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1. LiniuscansellestablishedIBMBluemixproductsintegratedwithVVEtospeeddeliverytimeforcustomers

2. IBMcansellLiniusVVE,enablingnewrevenueopportunitiesacrossallfourtargetverticals(Search,SecurityandDefense,Anti-Piracy&PersonalizedAds)

TheIBMPartnershipProvides:ü Amarketmodelthatmatchesourclients’needs:cloud,private,hybrid-cloudü ProvenBluemixapplicationsü ValidationofLiniusandalsoexecutionresourcesü Over300,000employeestohelpgotomarketinthelargeenterpriseü Anexistingclientbasethatincludesthe“who’swho”ofLinius’prospectsü IBMisaworldleaderinblockchaintechnology- Linius’technologymakes

whatIBMhasevenbetterü IBMWatsonisaworld-leadingcognitiveAI- Liniusmonetizesthis

intelligencetocreatehyper-personalizedvideoexperiencesinsearch,personalizedadvertisingandsecurityanddefenseapplications

Strategic Partnerships

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ü DelivertheintegrationofVVEintoIBM’sBlueMixCloud(May.2017)ü DelivertheintegrationofVVEwithatleastoneworldleadingOverTheTop(OTT*)platform(Oct.2017)ü EngagewithaglobalmoviestudiotodevelopProofofValue(POV)inanti-piracy(Oct.2017)ü DelivertheintegrationofVVEintoMicrosoftAzure(Dec.2017)q DelivertheintegrationofVVEwithMajorOTTadserversq EngagewithaglobalmoviestudiotodevelopamasscontentdistributionPOVq Deliveranendtoendpiracysolutionwithamoviestudioq DelivertheintegrationofVVEwithatleastonecognitiveAIproviderq Deliverblockchainstrategyandsolutiondesignq DeliverPOC(proofofconcept)ofSearchinaglobalcloudenvironmentq ConvertinitialdealflowwithIBM

*OTT– abroadcasterthatbroadcastsoverthepublicinternet

Goals for Commercialization: by Q2 CY2018

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Share Metrics (ASX:LNU)

• ListedonASXMay2016• RaisedA$3.5m(5cents/share)inMarch2016• RaisedA$0.5m(5cents/share)inSept2016throughplacementtokeyindustryplayer

• RaisedA$1.5m(5cents/share)withstrategicinvestmentfromVillageRoadshow inJuly2017

• RaisedA$4.5m(5cents/share)Oct2017inplacementtosophisticatedinvestors

CapitalMarketsHighlights

52-WeekPriceChart(A$0.04-0.07)

LiniusTechnologiesLimitedSharePrice(asof6thDec2017) A$0.054

MarketCap A$42.8m

ListedShares 409m

UnlistedOptions• 61.5mA$0.05ExpMar2019• 11.5mA$0.045ExpNov2019• 42.5mA$0.075ExpMay2019

115.5m

TotalSharesonIssue 794.2m

%OwnershipofManagement 5.2%

ChristopherRichardson,CEO

info@linius.com

+61396078234

ir@linius.comInvestors

pr@linius.comPressandMedia

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Revenue Model Summary

*ProductisMarketReady**Marketready– Q1,2018

Product Description Proposition MarketSize Pricing

Search* • Product- VVE, PlayerandArtificialIntelligence

• Requireslittletonointegration• DeliveredwithMicrosoft

• World’sfirstpersonalizedvideosearchresults

• World’s1st commercialusecasefor cognitive videointelligence

• Excessof10B videosearchesaday

• ~5xthisacrosstargetmarkets

• 0.075 centspersearch+0.01centsperadserved

• Paidbycontentowner

Security& Defense*

• Product- VVE, PlayerandArtificialIntelligence

• Requireslittletonointegration• DeliveredwithMicrosoft/onsite

• Analyzeandimmediatelycreaterelevantsecurityvideos

• World’sfirst usecaseofAItocreatevideo

• 72Mvideohoursacquiredperday, only 0.2%isviewed

• *Liniusmakesallinstantlyavailable

• Licensefee+ 0.075centsper search

• Paidbygovernmentagency

Anti-Piracy* • Product – VVE,Playerandcontentprotectionsuite

• RequiresintegrationwithVideoContentManagementSystem

• DeliveredwithIBM

• Anti-piracy fromproductiontoretail

• CostsUSeconomy$20.5Bpa• 432Mregularlywatchpirated

contentonline

• License+ 0.02centsperapicall

• Paidbystudio

PersonalizedAdvertising**

• VVE,adserver,playersdk• Requiresintegrationwithworkflow• DeliveredonMicrosoft

• Hyper-personalizedadvertising

• Increasedadvertisingyields

• Noadblockers

• IntheUS,$90Bpamarket• Adblockingtocostadvertisers

$35Bpa

• 0.01centperadserved• Paidbybroadcaster