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Revolutionising copper for

next generation broadband


September 2015

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Forward looking
statements
This presentation and the associated slides and discussion contain forward-looking statements
regarding Genesis Technical Systems Corp. (Genesis), our corporate plans, future financial
condition, future results of operations, future business plans and strategies. All such forward
looking statements are based on our managements assumptions and beliefs in light of
information available to them at this time. These forward-looking statements are, by their very
nature, subject to significant risks and uncertainties and actual results, performance or
achievements may be materially different from those expressed in the forward looking
statements. Factors that may cause actual results, performance or achievements to differ from
expectations include, but are not limited to, ability to access sufficient capital from internal and
external sources, regulatory changes, future levels of industry product supply, demand and
pricing, customer adoption levels, wars and acts of terrorism, technical risks related to product
design, development and production, acts of competitors and other changes to business
conditions. Genesis undertakes no obligation to revise any such forward looking statements to
reflect any changes in Genesis expectations with regard thereto or any change in
circumstances or events after the date hereof.
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Copyright 2015 Genesis Technical Systems Corp. All rights reserved

About Genesis

Genesis Canada founded in 2007


Genesis UK founded in 2009
Over $14 mil research &development
Leadership team with over 100 years
telecom experience
13 Patents granted
First Canadian patent just granted
Over 50 patents pending
Multiple industry awards and
nominations

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The Problem
Internet usage is exploding
Customers are demanding higher
bandwidth mobile and fixed broadband
fibre Internet access is very
expensiveto deploy.
Telco CEOs who have deployed fibre
estimate it may take up to 30 years to
recoup those costs

Genesis provides broadband


over copper faster, and over
longer distances, than other
copper-based alternatives
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The Solution - Copper


Deliver high bandwidth services over
existing copper infrastructure for
mobile and fixed line broadband
Minimal upfront investment for telecoms
operators for pay as you deploy model
Telcos are estimated to recoup costs in
as little as 6 months
Two product lines: DSL Rings and
mBond

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The Copper Journey

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DSL Rings
up to 20 times faster
mBond

Consumer solution awarding winning and


proven concept
Increases bandwidth by up to 20x to peoples
homes
Can achieve bandwidth of up to 400 Mb/s (200
Mb/s upstream and 200 Mb/s downstream)
May be deployed in both copper only and fibre to
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the cabinet networks

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Copyright 2015 Genesis Technical Systems Corp. All rights reserved

Product Portfolio
DSL Rings
In development for US Tier 1 Telco
Trials starting in Q1 2016

Exchange/CO Gateway (XGW)


Convergence Node (CN) - Working prototype
Home Gateway (HGW) - Working prototypes
mBond Complete
Initial UK sales

mBond Flex
Exchange/CO Gateway SW version in UK trials
Commercial version early 2016

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FCC Increased Broadband


Requirements
Earlier this year the US Federal
Communications Commission (FCC)
increased the definition of broadband from 4
Mb/s to 25 Mb/s for download and 1 Mb/s to
3 Mb/s for upload
Under this new definition, 55 million
Americans (17% of the population) do not
have broadband access
Operators across America are being forced to
consider infrastructure developments to
ensure their future networks will deliver
broadband to all
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Copyright 2015 Genesis Technical Systems Corp. All rights reserved

Sales Traction
DSL Rings
Largest US Telco
2 other large US Telcos

mBond
Largest UK Wireless ISP mBond
Flex
Next Gen Access First paid trial
mBond Complete
Large UK Utility/Communications
Service Provider mBond Flex
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Leadership Team
Genesis Canada - Group Governance
Garry Kelman
CEO

Doug
McArthur
Director

Bruce
Fenwick
Director

Stephen
Cooke
President

Ian
MacKenzie
Chairman

Nigel Hall
CEO (Row)

Stephen
Cooke CTO

Mark Ray
Operations
Director

Jaswant
Chima
Engineering
Director

Mark Stukins
VP Global
Channel Sales

Steven East
VP Global
Sales

Clair
MacKenzie
Marketing
Director

Lesley Harvey
People &
Places
Director

Strong Globally experienced - leadership team,


over 100 years Telco experience,
Together with a highly experienced Engineering
Development team
Copyright 2015 Genesis Technical Systems Corp. All rights reserved

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Previously, electronics subcontract manufacturing company, SMT


Developments was achieving download speeds of between 0.5 Mb/s
and 6 Mb/s on a single pair.
Today, SMT is achieving download speeds of 94 Mb/s and upload speeds
of 84 Mb/s.
Click the picture to hear what John Rowley, Operations Director, SMT
Developments has to say.

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Current Offering
Per/Share

$0.15

Shares

13,333,334

Raise (CDN):

$2,000,000

- $1 mil to fund ongoing operations


- $1 mil to enable Genesis to deliver DSL
Rings trial with the largest Telecom operator in
North America in Q1 2016
- Genesis has raised over $14 mil CDN to date

Share Capital
Issued & Out 110,186,686
Fully Diluted 119,723,963
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Use of Proceeds
Within the next twelve months:
mBond
First mBond sales
Launch mBond Flex with Exchange Gateway
Software
Continue to build pipeline of mBond
opportunities

DSL Rings
Expedite DSL Rings Exchange Gateway
Development
Manufacture DSL Rings equipment for US
Telco trial Q1 2016
Develop DSL Rings market awareness and
engagement, and do other trials with major
Telco providers

Within the next two years:


Achieve volume mBond sales
Launch commercial DSL Rings
First DSL Rings commercial sales
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Exit Strategies
Shareholder liquidity
Buy Out by Strategic Partners
Needing new revenues and
addressable markets
Buy Out by Equipment Vendors
Wanting to move into DSLAM
space
Protecting their position
Public Market listing
Through RTO, QT or IPO
Directors and advisors have a
history of using public markets to
create liquidity for shareholders
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Key investment
considerations
Compelling for Telcos

The technology uses the existing copper


network and provides better speeds than
alternative copper-based solutions for key
applications
Large markets

Genesis is applicable to several large markets


where using the copper network is the best and
sometimes the only solution
Accelerating demand

Demand for higher speeds and quick,


inexpensive deployment is increasing in many
of the markets addressed by Genesis,
especially mobile small cells
Intellectual property

Genesis has invested in, and patent protected,


a substantial amount of intellectual property

Proven products

mBond and DSL Rings are proven in customer


trials. mBond is commercially available and
DSL Rings is prototyped
Experienced team

The engineering team is experienced in


technology and deployments led by
experienced management
Ready to scale

The major portion of the proceeds will be


devoted to accelerating the number of
deployments, and making Genesis a major
vendor of broadband over copper solutions

The copper revolution has arrived


Act now!

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Canada
Suite 909, 825 - 8th Avenue S.W.
Calgary
Alberta, T2P 2T3
Canada
Tel: +1 (403) 608-3098

United Kingdom
The Venture Centre, University of Warwick Science Park
Sir William Lyons Road
Coventry, CV4 7EZ
United Kingdom
Tel: +44 (0)24 7632 3334
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Market Opportunities
While fibre deployments are increasing, copper-based
technologies continue to dominate broadband internet access
Broadband for Enterprise & Multidwelling Units (MDU)
Increasing demand to improve connectivity
in emerging markets where average
broadband speeds are low, but where
numbers of registered businesses is high,
where there was a well established copper
network and where there were no plans to
deliver fibre. (2)

Macrocell backhaul
$45 billion to be spent on macrocell
backhaul equipment worldwide from 2014
to 2018. There are 1.2 million copper
backhauled macro cells deployed globally
(1)

Home broadband
Global broadband subscriptions recently
passed the 714 million milestone and,
given that 43% of these are pure copper
subscriptions and 21% are hybrid
fibre/copper subscriptions, the total market
size, in terms of number of connections, is
454 million.(4)

Small Cell Backhaul


With small cells, mobile operators can
offload traffic as much as 80% during peak
times. By 2015, 48% of mobile data traffic
will be offloaded. Small cell backhaul
equipment market is also expected to
exceed $4 billion in 2020.(3)

Source: (1) Infonetics Research, Oct 2014, GSMA 2013 data , (2) Analysys Mason, Dec 2014, (3) ABI Research, Nov 2014, (4) PointTopic April 2015
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AddressableMarket Size
& Value
DSL Rings Global Market Opportunity (Home Broadband)
Total value of home broadband market is
116 billion. Value to Genesis at 5% market
share is 5.8 billion, and 2.9 billion at 2.5%
market share. Calculations based on
revenue of 2,050 per 8 households.

Market opportunity
calculations are for
illustrative purposes only.

mBond Complete Global Market Opportunity (Macrocell Backhaul)


Total value of macrocell
backhaul market is 1.4
billion. Value to Genesis
is 72 million at 5%
market share and 36
million at 2.5 % market
share.

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Awards
Genesis has won, and been shortlisted for a number of awards
including:
Winner Fierce Telecom Last Mile Innovation Award
Winner TechRev Innovator Award
Winner Connect Midlands Most Investable Company Award
Winner The Venture Academy Most Investable Company Award
Shortlisted for Graham Bell Award for Best Communication Solutions
Shortlisted for San Andreas Award for Most Disruptive Technology
Shortlisted for Total Telecoms Innovation Award
Shortlisted for NextGen Digital Challenge Award

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N/A

N/A

N/A

AW

Possible related application

Dynamic Asymmetric Rings

FD

FD

Additional related application

TF

Possible related application

AW

AW

AW

AW

FD

FD

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

PCT*

Remote Powering of DSL


ADMs

FD

Israel

Brazil

AW

India

AW

Japan

AW

Hong
Kong

USA

AW

China

Australia

Shared DSL Network &


Deployment Method

Canada

Mexico

Patent status

Europe

Russia

Patents

TF

TF

TF

FD

AW

RS

FD

FD

FD

FD

FD

FD

RS

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

Bonded Interconnection of
Local Networks

AW

AW

FD

RS

RS

FD

FD

FD

FD

FD

FD

RS

Synchronization of
Communications Equipment

FD

FD

FD

AW

RS

FD

FD

FD

FD

FD

FD

FD

FD

Additional related application

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

10

DSLR Roving Modem /


Passive Cross Connect

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

TF

FD

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Small Cell Backhaul

TF

TF

TF

FD

TF

TF

TF

TF

TF

TF

TF

TF

FD

AW

Awarded

FD

Filed

RS

Responded to or in progress of being responded to

TF

To be filed

Copyright 2015 Genesis Technical Systems Corp. All rights reserved

* Patent Cooperation Treaty


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Genesis Product Timetable


2015
Q2

Q3

2016
Q4

Q1

Q2

2017
Q3

Q4

Q1

Q2

Current Plan
mBond Flex (long reach & multiple bond support)
mBond Flex with vectoring support
DSL Rings

Accelerated Plan
mBond Flex (long reach & multiple bond support)
mBond Flex with vectoring support
DSL Rings

Key

PoC Date

Commercial Date

Change area

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Budget revenue and profit


forecast base case (Yr End Apr 30)

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Information Memorandum
Forecasts Growth profile

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US Tier 1 Carrier Trial


Status
Trial agreement
With Procurement/Legal teams
Test plans
Agreed with technology/test teams
Budget: Defined but not yet funded
Project: Internal delivery plan but not
yet fully resourced

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Manufacturing
SMT is partner for low volume
production
mBond Complete
mBond Flex
DSL Rings
Convergence Node
Home Gateway
Software based Exchange Gateway - so
no hardware required

High Volume production


Convergence Node: a larger
manufacturer (US)
Home Gateway: third party
volume manufacturer when
volumes sufficient to go with
ASIC
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Commercially Available
mBond Complete

Business parks
Universities
Multi-dwelling
units
Base station
backhaul

Increases bandwidth by up to 10x


Upstream & downstream bandwidth for mBond over 12 pairs
Delivers ultrafast backhaul for
macrocells and access broadband for
enterprises, campuses and multidwelling units, in areas where it is
uneconomical or impractical to deploy
Fibre to the Premise
Up to 1 Gb/s @ 100 m &
up to 150 Mb/s @ 1.5 km
A core part of DSL Rings solution
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mBond Flex
Before
mBond Flex

After
mBond Flex

Multiple bonded link


support - Commercially
available Q1 2016
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Sales Plan
Short term mBond sales to
UK Local / National Carriers
Medium Term US
enterprise/utilities market
opportunities
Medium Term strategic
sales, US Market focus for
residential network services
supported by DSL Rings

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Sales Traction
Largest UK Wireless ISP- mBond
Customer owns largest UK wireless ISP
network'
They are investing in their fixed network
infrastructure as a part of a continued
expansion project
They recently received 2 million grant
from BDUK (Broadband Delivery UK).
They would like to use mBond to increase
their network coverage and capacity

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Sales Traction
Largest US Telco DSL Rings
Earlier this year the American FCC (Federal Communications
Commission) announced that the definition of broadband would see
the minimum standard raised from 4 Mb/s to 25 Mb/s for download
and 1 Mb/s to 3 Mb/s for upload.
Under the new definition, 55 million Americans (17% of the
population) do not have broadband access
Operators across America are being forced to consider infrastructure
developments to ensure their future networks will deliver broadband
to all.
This Telco has confirmed that they cannot meet the needs of two
thirds of their customers who currently dont get broadband with
other technologies such as G.fast and VDSL2 vectoring only DSL
Rings will enable them to deliver what is required
They have requested a DSL Rings lab trial Q1 2016 but more funds
are needed to deliver the trial.
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Sales Traction
Large US Telco DSL Rings
CTO is keen on Genesis solution visited Coventry August 3 & 4
Considering both using the products and investing in Genesis
Face to face meetings held with CTO, CFO and VP the last week of
July in the USA.

Sales Traction
Other US Telco DSL Rings
Two other US Telcos face to face meetings week of the 10th August

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Sales Traction
London based network provider mBond
First paid trial
Customer very pleased with first results
Genesis anticipates further orders once
trial completes
Customer will deploy mBond in urban
areas with listed buildings where fibre
cannot be deployed
Customer also has mBond opportunity with
a large energy provider
Field trial for this energy provider Q4 2015
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