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Intrinsyc Software International IncIntrinsyc Software International, Inc.Company Update
October 2008
© 2008 Intrinsyc Software International – Page
October 2008
Forward-looking Statements
This presentation contains statements which, statements or information may include financial and other projections as well as statements regarding the Company's future plto the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation. Such forward-looking ans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this presentation are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different.
Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: the Company’s ability to continue to earn the revenue from Destinator products after the acquisition, and to integrate the acquired business into its own operations; the need to develop, integrate and deploy software solutions to meet our customer's requirements; the possibility of development or deployment difficulties or delays; the dependence on our customer's satisfaction; the timing of entering into significant contracts; our customers’ continued commitment to the deployment of our solutions; the risks involved in developing integrated software solutions and p y p g gintegrating them with third-party products and services; the performance of the global economy and growth in software industry sales; market acceptance of the Company’s products and services; customer and industry analyst perception of the Company and its technology vision and future prospects; the success of certain business combinations engaged in by the Company or by its competitors; political unrest or acts of war; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; concentration of sales; international operations and sales; management of growth and expansion; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; and including but not limited to other factors described in the Company’s reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2007. In drawing a conclusion or making a forecast or projection set out in the forward-looking information, the Company takes into account the following material factors and assumptions in addition to the above factors: the Company’s ability to execute on its business plan; the acceptance of the Company’s products and services by its customers; the timing of execution of outstanding or potential customer contracts by the Company; the sales opportunities available to the Company; the Company's subjective assessment of the likelihood of success of a sales lead or opportunity; the Company's historic ability to generate sales leads or opportunities; and that sales will be completed at or above the Company's estimated margins.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this presentation are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
© 2008 Intrinsyc Software International – Page
All amounts are in United States dollars, unless otherwise indicated.
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Intrinsyc Software Corporate Overview
Intrinsyc is a mobility software solutions provider founded in a deeply experienced wireless technology team
12 years wireless engineering and 10 years navigation software
75% of employees in technical roles; strong industry leadership
36 t t fil d/ t d36 patents filed/granted
Growth through wireless software solutionsSoleus™ and Destinator® softwareSoleus and Destinator software
Solutions for C-PND, consumer handsets, handhelds
Positioned to support global marketsDev/Eng: Beijing, Bellevue, Herzliya, Taipei, Vancouver
Sales: Cupertino, London, Taipei, Vancouver
HQ: Vancouver
© 2008 Intrinsyc Software International – Page
HQ: Vancouver
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Seasoned Leadership with Deep Wireless Software and Industry Skills
Glenda Dorchak, Chairman & CEOIntel 5.5 years, Value America, IBM 23 years. Joined Intrinsyc August 2006
Tracy Rees, Chief Operating OfficerBSquare, CalAmp, Anasoft. Joined Intrinsyc Jan 2008
S GSouheil Gallouzi, VP & GM, Mobile Products & DevelopmentQualcomm 8 years, Leap Wireless, Nortel. Joined Intrinsyc November 2007
George Reznik Chief Financial OfficerGeorge Reznik, Chief Financial OfficerPivotal Software, Infowave, DDS, Deloitte. Joined Intrinsyc April 2008
Mark Longo, General Counsel & VP Corporate DevelopmentDatawire Communications Star Data Joined Intrinsyc June 2007Datawire Communications, Star Data. Joined Intrinsyc June 2007
© 2008 Intrinsyc Software International – Page 4
Intrinsyc Wireless Business Built on a Strong Foundation
Intrinsyc software products have momentumSoleus™ released December 2006 - 6 design wins for wireless handsets and connected PNDs including Samsung Systems LSI
Destinator® provides best in class navigation and LBS solutions for tier one OEMs
Soleus wins Microsoft 2008 “Partner Excellence Award for connected PNDs”
Engineering Services provides the foundation:12 year Microsoft® Windows® Embedded Partner
Only North American-based Symbian Competence Centery y p
Co-inventor ARM® Intelligent Energy Manager for Windows® Mobile
Experts in UI, telephony and power management
2007 Microsoft Systems Integration Partner of the Year
© 2008 Intrinsyc Software International – Page
2007 Microsoft Systems Integration Partner of the Year
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Intrinsyc’s Software Targets a Significant Growth Market Opportunity
5.6 Billion5.6 Billion (2013)(2013)
3 1 Billi (2007)3 1 Billi (2007)OS OS
3.1 Billion (2007) 3.1 Billion (2007) Mobile Phone Subscribers
– Strategy Analytics
1 7 Billi1 7 Billi
Mobile 2.0:Mobile 2.0:Mobile WebMobile Web
CommoditizationCommoditization
100 Million 100 Million (2012)(2012)
27 Million (2007) 27 Million (2007) LBS Subscribers
Berg Insight
1.7 Billion1.7 Billion (2013)(2013)
577 Million (2008) 577 Million (2008) Mobile Internet Users
- Juniper Research
Mobile Mobile ServicesServices
- Berg Insight
462 Milli462 Milli
Juniper Research
LocationLocation--Aware Aware DevicesDevices
Multimedia Multimedia ConvergenceConvergence
Context Aware Context Aware Gesture UIGesture UI
550 Million 550 Million (2012)(2012)
240 Million (2008)240 Million (2008)GPS Enabled Handsets
ABI Research
462 Million462 Million (2008)(2008)
24 Million (2007)24 Million (2007)Mobile TV Subscribers
ABI Research
833 Million 833 Million (2013)(2013)
341Million (2008)341Million (2008)Touch Screens Shipped
iSuppli
© 2008 Intrinsyc Software International – Page 6
– ABI Research – ABI Research- iSuppli
*Forecasts for 2012-2013
Soleus™ is Positioned to Enable theNext Generation Wireless Experience
Soleus software platform enables:Accelerated consumer handset developmentpDiverse product portfolio – design flexibilityLower R&D costs
THIRD PARTYTHIRD PARTYAPPLICATIONSAPPLICATIONS
SOLEUS CORESOLEUS COREAPPLICATIONAPPLICATION
SUITESUITECore value: CompletenessFully customizable UI framework (XML-based)
Microsoft Windows® Embedded CE pre-certified
APPLICATIONSAPPLICATIONS SUITESUITE
SOLEUS UI FRAMEWORKSOLEUS UI FRAMEWORK
Microsoft Windows Embedded CE pre certified telephony stack (3G)
Pre-integrated third-party mobile applications
Leverages Microsoft Windows Embedded CE
OPERATING OPERATING SYSTEM:SYSTEM:WINDOWSWINDOWSEMBEDDED CEEMBEDDED CE
SOLEUSSOLEUSTELEPHONYTELEPHONY
STACKSTACK
KERNEL & HW DRIVERSKERNEL & HW DRIVERSLeverages Microsoft Windows Embedded CEWindows Embedded CE core SKU
Tool chain based on Visual Studio and Platform Builder
KERNEL & HW DRIVERSKERNEL & HW DRIVERSSOLEUS REFERENCE BSP & PDMSOLEUS REFERENCE BSP & PDM
HARDWARE PLATFORMHARDWARE PLATFORM
© 2008 Intrinsyc Software International – Page7 7
Soleus™ Enables Innovative Custom User Experiences
Soleus simplifies development of unique user interfaces (UI)
Tools for UI development reduce development time
Designed for flexibility and customization
S t ti f OEM d i tf liSupports creation of OEM device portfolioMDTV, multimedia
GPS, LBS,
Soleus delivers value to:Handset manufacturers Network operatorsService providers Silicon vendors
© 2008 Intrinsyc Software International – Page
Silicon vendorsPND manufacturers
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Destinator® Software Delivers World Class Navigation Experience
Enables navigation & LBS on handsets, connected PNDs and PNDs
GUIGUIGUIGUI
Application SDKApplication SDKApplication SDKApplication SDK GUI ToolkitGUI ToolkitGUI ToolkitGUI Toolkit
Customizable user interface
Integration with phone features
Best in class routing D iD iD iD i
Navigation SDKNavigation SDKNavigation SDKNavigation SDK
OS Abstraction LayerOS Abstraction LayerOS Abstraction LayerOS Abstraction Layer
Best-in-class routing
Global support and map coverage
Content and Location-Based Services
DeviceDeviceDeviceDevice
Global support and map coverage
TMC, cheapest gas, travel guides
Support for all High Level OSOn Windows® Mobile, Symbian (UIQ, S60), Linux
© 2008 Intrinsyc Software International – Page 9
Intrinsyc Software Well Established with Tier One OEMs
Soleus™ momentum with Mature integrated solutionSoleus momentum with tier one OxMs
Software bundling with Samsung and a second silicon vendor
Mature integrated solution shipping with tier one OxMs
ASUSTekand a second silicon vendor
Mio Moov 380 connected PND
Quanta 3G device
LG
Motorola
Local solution for Nokia N95MSI MDTV wireless handset
MSI 5608MIO Moov 380
Motorola A1600
ASUS P750
LG LN380
© 2008 Intrinsyc Software International – Page 10
A1600 P750
Connected PND opportunities for combined Soleus + Destinator ® solution
Internet on Handsets Enables NewDevices that Deliver Context Aware Services
You are enjoying an MP3 you downloaded as you pass your favorite venue
Y t t t k h t d
Sa e PhotoSa e Photo
You stop to take a photo and receive an LBS message that the band is playing tomorrow
Buy TicketsBuy Tickets
Save PhotoSave Photo
With the press of a button, you
© 2008 Intrinsyc Software International – Page 11
*Conceptual User Scenario Only
With the press of a button, you buy tickets for the show
Context Aware Digital World: Mobile On the Move
As you drive home, your GPS y , yenabled phone updates the best route based on the latest road conditions
Update Route Update Route Home Based Home Based
on Traffic on Traffic Conditions?Conditions?Conditions?Conditions?
OKOK
© 2008 Intrinsyc Software International – Page 12
*Conceptual User Scenario Only
Context Aware Digital World:The Mobile “Home Experience”
As you enter your home, your daily
activities andactivities and downloads are backed
up on your PC
Welcome Home.Welcome Home.Syncing with Syncing with
ComputerComputerYour phone UI is
MusicMusic TVTV
LightsLights
PhonePhoneTempTemp
+Channel+Channel--
Your phone UI is updated with your
“Home Experience” allowing you to
t l li ht +Volume+Volume--
Watch MovieWatch Movie
control lights, temperature and
interact with your TV and order movies
© 2008 Intrinsyc Software International – Page 13
*Conceptual User Scenario Only
Intrinsyc Next Generation Products Direction
Soleus™ and Destinator® next gen will focus on the differentiated next generation user experience:
3rd 3rd Party Party AA
3rd 3rd Party Party AA
WebWebWebWeb CommCommCommComm MultiMulti--mediamediaMultiMulti--mediamedia
LBSLBSLBSLBS
Enabling ToolsEnabling ToolsDynamic user interface
Seamlessly integrated navigation & LBS
Core ApplicationsCore ApplicationsCore ApplicationsCore Applications
AppsAppsAppsApps
UI FrameworkUI FrameworkUI FrameworkUI Framework Application EngineApplication EngineApplication EngineApplication Engine
Multimedia and mobile web
Support for custom mobile services
Enabling technology and toolsDevice Device DriversDriversDevice Device DriversDrivers
OS OS kernelkernel
OS OS kernelkernel
Modem Modem InterfacesInterfaces
Modem Modem InterfacesInterfaces
Enabling technology and toolsSupport for the “new programming model”
Support for multiple OS platforms and open source libraries pp p p p
Development tools to enable faster time to market
Next generation Soleus will enable rapid development of
© 2008 Intrinsyc Software International – Page 14
e t ge e at o So eus e ab e ap d de e op e t ocontext aware user experience platforms
Intrinsyc Financial Overview
Strong Q2 revenue driven by wireless engineering services and Soleus licensing:
Strong revenue from engineering services and growing contribution from our software
$30.0 million in cash as of June 30, 2008.
Subsequent to quarter-end, completed acquisition of certain assets and operations of Destinator Technologies Inc. for $15.9 million*
Intrinsyc software products provide growth:License and maintenance fee Recent Quarterly Performance
Per unit royalties at 80-90% gross margin
Blended gross margin of 70 to 80%
Q y
2008 ill d li lid h
$4.3 $4.5 $4.3
$5.3 $5.6 $5.6
49% 52% 49% 36%46% 47%
2008 revenues will deliver solid growthOver one-third from software solutions
Improved gross margin
36%
Q207 Q307 Q407 TP07 Q108 Q208Revenue Gross margin
© 2008 Intrinsyc Software International – Page 15
*(CDN $8.5 million in cash or assumption of liabilities of DTI and the issuance of 11.0 million Intrinsyc common shares from treasury).
Positioned To Grow Software Solutions Business
Experienced leadership team with deep expertise in wireless technology
Large immediate market opportunity
Business model: Licensing fees and gper unit shipped royalties
Multiple target customers in theengagement pipeline
Silicon vendor partners expand market adoption and enable software solutionsadoption and enable software solutions
Soleus with navigation positions Intrinsyc to address growing location based services
© 2008 Intrinsyc Software International – Page
g gopportunity
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Thank you
Intrinsyc Software International Inc.
10th Floor 700 W Pender Street10th Floor, 700 W. Pender Street
Vancouver, BC V6C 1G8
Canada
Phone: +1 604 801 6461
Fax: +1 604 804 6417Fax: +1 604 804 6417
Email: [email protected]
Web: www intrinsyc comWeb: www.intrinsyc.com
Toronto Stock Exchange, symbol ICS
© 2008 Intrinsyc Software International – Page 17