Northcore Technologies Inc.

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Northcore Technologies Inc.
TSX : NTI
northcore.com
Investor Presentation - July 2012
Forward Looking Statement
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•
The information set forth herein contains statements concerning future results, future performance, intentions, objectives,
plans and expectations that are, or may be deemed to be, forward-looking statements. These statements concerning possible
or assumed future results of operations of Northcore Technologies Inc. (NTI) or the Company are preceded by, followed by or
include the words ‘believes,’ ‘expects,’ ‘anticipates,’ ‘estimates,’ ‘intends,’ ‘plans,’ ‘forecasts,’ or similar expressions. Forwardlooking statements are not guarantees of future performance. These forward-looking statements are based on current
expectations that involve numerous risks and uncertainties, including, but not limited to, those identified in the Risks Factors
section. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic,
competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately
and many of which underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate.
These factors should be considered carefully, and readers should not place undue reliance on forward-looking statements. The
Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether written
or oral that may be made by or on the Company's behalf.
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L'information contenue aux présentes contient des déclarations concernant les résultats futurs, le rendement futur, les
intentions, les objectifs, les plans et les attentes qui sont, ou peuvent être considérées comme des déclarations prospectives.
Ces déclarations concernant les résultats probables ou d'exploitation futurs de Northcore Technologies Inc (NTI) ou la Société
sont précédés, suivis par ou inclure les mots «croit», «s'attend à», «anticipe», «estime», «entend, »« plans »,« prévisions », ou
autres expressions similaires. Les énoncés prospectifs ne sont pas garants du rendement futur. Ces énoncés prospectifs sont
fondés sur les attentes actuelles qui impliquent de nombreux risques et incertitudes, y compris, mais sans s'y limiter, ceux
identifiés dans la section Facteurs de Risques. Hypothèses relatives à ce qui précède, impliquent des jugements en ce qui
concerne, entre autres choses, les futures conditions économiques et concurrentielles du marché et les décisions d'affaires
futures, qui sont tous difficiles ou impossibles à prévoir avec précision et dont un grand nombre qui sous-tend les déclarations
prospectives sont raisonnables, l'une des hypothèses pourraient s'avérer inexactes. Ces facteurs devraient être examinés avec
soin et les lecteurs ne devraient pas se fier indûment aux énoncés prospectifs. La Société n'a pas l'intention et n'assume aucune
obligation de mettre à jour ou de réviser les énoncés prospectifs, que ce soit écrite ou orale qui peut être faite par ou au nom
de la Société.
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Corporate Information & History
About Northcore
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Northcore Technologies provides enterprise level software products and services that enable
its customers to purchase, manage and liquidate corporate assets. Utilizing award-winning,
multi-patented technology, as well as powerful, holistic Social Commerce tools, Northcore's
solutions support customers throughout the entire lifecycle.
Northcore's portfolio companies include Envision Online Media Inc., a specialist in the delivery
of content management solutions and Kuklamoo.com a family web destination and national
deal site.
Northcore owns 50 percent of GE Asset Manager, LLC, a joint business venture with GE and
holds a substantial intellectual property portfolio.
Investment Highlights
• Strategically positioned for growth in Social Commerce and Enterprise with strong
underlying technology and robust initial offerings
• Desirable intellectual property portfolio with broad application in high value domains
• Leadership team experienced in technology development and growing companies
organically and through M&A
• Strong balance sheet in place to execute on the growth plan
• Multiple revenue streams including recurring, services and transaction fee models
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History
1995: Internet Liquidators Inc. Founded
2001: Company renamed ADB Systems
1998: Received listing on TSE (Symbol: "ILI”)
2006: Sold ADB Systems
1998: Name changed to Bid.Com International
2006: Company renamed Northcore
Technologies Inc.
1999: Received listing on NASDAQ (Symbol:
“BIDS”)
2011: Refocus on Enterprise - IP - Social
1999: Received Dutch Auction process patent
2012: Acquired Envision Online
2001: Acquired ADB Systemer ASA
The New Northcore
NTI’s business is focused on expansion within the Enterprise software market, monetization
of its IP portfolio and the aggressive deployment of the Social Commerce product suite
Business development and acquisition strategies will support the continued alignment of
NTI’s legacy technology assets with the rapidly growing Social Commerce market (i.e.
Envision Online and Kuklamoo)
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Envision Online
ACQUIRED MARCH 2012
Strategic acquisition to enhance
Social Commerce Portfolio
Complementary teams and
technologies
Desirable geographic footprint
Customer expansion Opportunities
Accretive & profitable
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Kuklamoo
100% owned website will capitalize on the growing
family market through multiple revenue streams,
supported by NTI’s turnkey Social Commerce
platform
LARGE MARKET OPPORTUNITY
Family Market is a desirable underserved
demographic
Only a small portion of the 3 Billion dollar daily deal
segment totals
A recent raise by Zuilily of $43M values the
company at $700M
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Experienced Team
MANAGEMENT
BOARD OF DIRECTORS
Amit Monga
Paul Godin
PRESIDENT & CEO
CHAIRMAN
Technology entrepreneur with extensive Capital Markets experience
Founder, Green Marketer of the Year award winner
Jim Moskos
T. Christopher Bulger
COO
CFO Hy-Power Nano, Venture Capitalist
Award winning software visionary
Tam Nguyen
Jim Moskos
20 years experience in technology
CFO
Chartered Accountant with over 10 years experience in public companies
Don Clearwater
DIRECTOR OF TECHNOLOGY
Extensive technology implementation track record
Karl Ortmanns
DIRECTOR OF SALES
Experienced technology sales professional
Todd Jamieson
CEO, ENVISION ONLINE
Award winning entrepreneur
Amit Monga
Executive Professor University of Alberta, Board member Alberta Innovates
Technology Futures
Marvin Igelman
CEO Sprylogics, Board member American Apparel & Jamba Juice
Ryan Deslippe
President Selectcore
Sample Customers
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Northcore’s Product Offerings
Northcore’s Product Offering
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Northcore Enterprise Suite
PRODUCTS
• Workflow driven sourcing engine
• System tracks, manages and redeploys assets
• Accurate asset valuations during transfers, sales & M&A activates
• Comprehensive disposition suite including targeted & open e-auction platform
SUITE
• Enables organizations with extensive capital equipment base to manage the end to end
lifecycle resulting in significant savings
• Suited for companies with $50+ millions in sales and more than 4 locations
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Enterprise Platform for Tablets
Cloud based platform available on iOS.
The size, robust functionality and wireless capabilities make tablets ideal devices for NTI’s tracking software.
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Enterprise Case Study
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HSE PROCUREMENT AUCTION
Reduced previous framework
agreement by 44% (€13,200,000)
Saved a total of €4,895,474.28
The Procurement Auction Pilot was
considered to be an “overwhelming
success” by the HSE Team.
*Actual screen shot of declining price from HSE event, resulting in savings of
€4,895,474.28
Northcore Social Commerce Suite
• Powerful Group Discount liquidation platform
• Tiered reward and discount structure incents viral/social behavior
• Robust administrative and vendor toolset
• Can incorporate patented “Dutch Auction” to increase yield and differentiation
• Provides unique liquidation process for perishable products
• Social media tools are integrated, not an after-thought
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Intellectual Property
• Own cornerstone patents on one of
the few remaining unexploited
methods of commerce
• Retained resources to investigate
mis-use as well as customer
conversion opportunities
• Undertaken research to identify
high-value domains
• Filed additional IP applications and
will continue to develop and acquire IP
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Social Commerce
• Auction was the first Social Commerce method
• Northcore has a robust, turnkey Social Commerce platform
• Supports Daily Deal, Dutch Auction and full Social Media connectivity
• Incorporates Patented and Patent Pending processes and technologies
• Is mobile ready
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The Opportunity & Market
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Mobile Opportunity
At the end of 2011, there were an
estimated 6 billion mobile
subscriptions, which is equivalent to 87
percent of the world population.
http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats
In 2011, 3G mobile subscriptions grew
by 37% globally.
Mary Meeker, 2012 Internet Trends http://kpcb.com/insights/2012-internet-trends
In the first eight quarters after it’s
release, Apple shipped nearly
70,000,000 iPads.
Apple, as of CQ1:12 (8 quarters post iPad launch).
Sample Targets Market & Pain Points
$598 Billion 1
Differentiation, Residual Management
$1.2 Trillion 2
Holistic Asset View & Redundant Purchases
NTI provides value to industries requiring effective tools to manage, redeploy or liquidate diverse
assets
$22 Billion 3
Existing models are stale and do not reflect
perishibility of the ticket.
$2 Billion 4
Proliferation of “me too” offerings, lack of
underlying enterprise level technology
NTI’s turnkey Social Commerce solution and IP portfolio are well positioned to help businesses
monetize their Social Media market opportunities
Sources:
1) US Equipment Finance Market Study, Equipment Leasing and Finance Foundation, 2007
2) 2020 Vision Global Food & Beverage Industry Outlook, Frost & Sullivan, 2010
3) Forrestor, 2009
4) Pellegrino & Associates, 2011
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Application of NTI’s Dutch Auction
Perishable items such as event tickets can be purchased via NTI’s Dutch Auctions
near to venue up to the event start time, or be discounted further once the event
has begun.
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Revenue Model & Financials
Revenue Model
ENTERPRISE (ASSET TRACKER + ASSET APPRAISER + ASSET SELLER)
• Initial set-up fee (One time per implementation)
• Annual Subscription (Recurring)
• Based on number of users, number of assets, number of locations
ENTERPRISE (ASSET SELLER)
• Initial set-up fee and percentage of assets liquidated
ENTERPRISE (ASSET BUYER)
• Per event and % of savings via reverse auction
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Revenue Model
INTELLECTUAL PROPERETY
• Licensing of patents as well as proprietary platforms using NTI’s IP
ENVISION
• Services and hosting
KUKLAMOO
• Daily deal business model, advertising and e-commerce
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Financial
Listed TSX:NTI , OTCBB:NTLNF
Shares Outstanding (Basic) 235M
Shares Outstanding (Fully Diluted) 255M
Cash Position $1.4M
(as at March 31, 2012)
Debt NIL
Share Price: $0.07 (as at JuLY 3,, 2012)
52 week range: $0.06 - $0.35
Market Cap: $16.4M
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Milestones
KUKLAMOO
SOCIAL COMMERCE
ENTERPRISE
IP
Creation of new
operational plan and
expansion of business
model
Implementation of Dutch
Auction with selected
partners in the Social
Commerce/Consumer
space
Complete new versions of
flagship Enterprise
products including Asset
Seller and Material
Management Applications
Monetize existing Dutch
Auction IP through
strategic partnerships
Deployment of Social
Group Buy Platform with a
new strategic partner
Complete next generation
Intelligent Data
Acquisition and Analysis
platform
Incorporation of Dutch
Auction platform
Increase cross selling and
strategic partnerships
Expand Enterprise
application suite to most
popular mobile platforms
Expand IP portfolio
through continuous new
filings , new proprietary
initiatives and
opportunistic acquisitions
Contact Information
Northcore Technologies Inc.
302 The East Mall, Suite 300
Toronto, Ontario, Canada
M9B 6C7
Telephone: 416-640-0400 or 1-888-287-7467
Email: [email protected]
Investor Cubed Inc.
Alan Huycke, President
67 Yonge Street, Suite 1000
Toronto, Ontario, Canada
M5E 1J8
Telephone: 647-258-3311
Email: [email protected]
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