TION January 2019 INVESTOR PRESENT A CSE:UPCO OTCQB: UCCPF - - PowerPoint PPT Presentation

INVESTOR PRESENT A TION – January 2019 CSE:UPCO OTCQB: UCCPF FSE: U06

Legal Disclaimer &Forward Looking Statement

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Except for the statements of historical fact, the information contained herein is of a forward-looking

• nature. Such forward-looking information involves known and unknown risks, uncertainties and other

factors which may cause the actual results, performance or achievement of the Company to be materially different from any future results, performance or achievements expressed or implied by statements containing forward-looking information. Such factors include continued availability of capital and financing and general economic, market or businessconditions. Although the Company has attempted to identify important factors that could cause actual results todiffer materially, there may be other factors that cause results not to be as anticipated, estimated orintended. There can be no assurance that statements containing forward looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in such

• statements. Accordingly, readers should not place undue reliance on statements containing forward

looking information. Readers should review the risk factors set out in the Company’s Filing Statement as filed on SEDAR.

CompanyOverview

B2C Retail Division –MobileApp

• Mobile software application similar to “Skype & WhatsApp”. Upco Mobile, “UPCO” is

available for free on Apple iOS & Android

• Enables fully-securedmobile communication and payment services
• Saves customers up to ~40% on international calls and texting is free within theapp
• Targeting unregulated growth markets: Latin America, Asia,Africa andthe Middle East

–Data bandwidth in these underdeveloped infrastructure areas make it difficult for Skype, WhatsApp and Viber to operate properly due to limitations in data bandwidth CSE:UPCO 3

UpcoMobile–MainFeatures

Free Audio and Video Calls

Free audio and video calls to other Upco users in HD quality and fully secured (AES encryption). Upco users are automatically detected

Messaging and GroupChats

Free Instant messaging and groupchats up to 100 friends with audio conferencing

T ransfer andPayments

Upco-to-Upco balancetransfer, micro payments within the application

SharingAttachments

Sharing attachments, short videos, audio notes andpictures

SharingGeolocations

Share your geolocationand favorite placesnearby

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UpcoMobile–SmartphoneAppOverview

• Blending mobile communicationsand mobile payments into a single smartphoneapp
• Free to download on iOS andAndroid
• Comparableto popular appssuchasWhatsAppandSkype(whichdonot currentlyoffer payment

processingservices)

• Taking advantage of Upco’s existing global VoIP wholesale network, users are able to make andreceive

international calls

• The app enables fully secure communications, various forms of social media, international airtimetop-

up (the ability to addtalk-time/ datato auser’spre-paidmobile phoneplan),andinstant messaging

Users save up to 40% on calls (vs. traditional carriers) & in-app messaging isF RE E CSE:UPCO 5

UpcoMobile–PaymentProcessingandMobilePayments

• Similar to other digital wallets such as Apple Pay

, Upco’s e-wallet (Upco to Money) willbe incorporated into Upco Mobile’s chat and instant messagingfunctions

• Userswill be able to store funds on the e-wallet by linking Upco to Money to

their bank accounts and / or credit cards

• Foronline storesthat will havethe Upco to Money payment option, userswill be

able to pay digitally via the app

• Upco to Money is currently in development stages but app is capable of

transferring money to other app users via the incorporated Fin-Tech

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UpcoMobile– Potential of Fin-Tech

IncreasedSecurity

Our primary focushas been on security. Transactions must be recorded for on a tamper-proof distributedledger block by block.

Instantly Available in a SafeEnvironment

Money can be sent to anybody worldwide and in just some seconds people can access these funds on theirsmartphone.

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Peer to Peer (P2P) Lending

Peer-to-peer lending is one of the fastest growing segments in the FinT ech industry. By using this technology, borrowers can use their mobile devices to secure a loan directly froma lender.

Remittances

Cost of remittance across the world with traditional banks and financial institutions are high. By bypassing these institutions, our platform could allow mobile users to transfer money to anyonein the world and avoid expensive service and transaction fees.

UpcoMobile–Potentialof Fin-Tech

Mobile Wallets

Cash, checks and even plastic are becoming a thing of the past. Using mobile wallets is much more convenient and our technology will make using mobile wallets even more secure by providing special signature features toverify a purchase.

Rewards and Loyalty Programs

Mobile phones have already proven to be an efficient platform for offering and managing reward programs. Wehavethe potential to take this to next level. Sinceall transactions are recorded in the distributed ledger, it is much more transparent how reward points are traded, giving rewards providers the opportunity to even better tailor their programsto their customers

A ccess in UnderdevelopedCountries

Accessto bank accounts remains amajor concern for millions of people in third countries. Individuals with asmartphone who currently do not have a bank account can use our technology. This enables them to participate in global eCommerce, secure loans or transfer money to friends and family securely withoutexpensive bank fees.

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Mobile Payments IndustryOverview

• A 2017 report by Bank of America on consumer mobility found that 62% of millennials used person-to-person (“P2P”) mobilepayments

– Of total respondents who claimed to use P2P mobile payments, 68% reported that it was a more convenient payment method thatsaved time Adoption Challenge: 2017 study by JPMorgan Chase into E-Wallets and digital payments found that digital wallets have yet to achieve mainstream use (outside of millennials) becauseof security concerns and fearsthat merchants will not acceptmobile payments/ payments via adigital wallet PotentialSolutions:

• Application-to-person (A2P) SMS is a service in which an SMS is sent from an application, especially a web application, to a mobile subscriber

– The global A2P SMS market is driven by growth in mobile banking and mobilepayments – SMS is also the most secure and reliable option for A2P communications (important for all organizations and providers who are sending sensitive data – i.e. Banks)

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Mobile P O SPayments IndustryOverview

• In 2018, global transaction volume in the mobile P

O S(point-

• f-sale) payments space is expected to reach US$391Billion

– Average transaction value/user of ~US$731expected – T

• tal mobile payment users of 535 Million expected
• By 2022, global mobile P

O S transaction volume is forecasted to grow at a C A G R

• f 35.7% to US$1.3Trillion

– Average transaction value/user of ~US$1,359expected – T

• tal mobile payment users increasing to 977Million

(CAGR of 16.2%)

$1,328

2018 2019 2020 2021 2022

$391

$200 $400 $600 $800 $1,000 $1,200 $1,400

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$0

Mobile POS Payments Global TransactionValue (US$Billions) Source: Statista, F R C

Upco’s Agreements withLeading Global Carriers +250 Active Tier 1, 2 and 3 Global Carriers

• Upco’s VoIPwholesale businessis built on voice call termination for both national and international calls
• Upco’s global network connects subscribers in 170 countries with major mobile operators worldwide through the Upco Carrier Cloud
• Since 2015, the Upco platform has terminated millions of international long-distance calls for Tier-1 carriers, other telecom carriers,

service providers and resellers

• Commercial agreements in place between Upco and global carriers
• Upco’s CreditInsurance:

– All agreements with carriers have credit insurance (Euler Hermes) that covers 90% of what is owed to Upco in the event acarrier does not payUpco – Euler Hermes is the largest global credit insurance company for management of business-to-business tradereceivables

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Upco’sCarrierCloud–CentralHubof VoIPWholesaleServices

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• Global voice termination platform for international telephone minutes, which currently connects 170 countriesand

nearly every major telecom serviceprovider

• This powerful voice termination platform, developed by Digitalk Limited, is also used by a well-known Tier-1

Carrier to manage its yearly wholesale turnover of up toUSD$500 Million

KeyDifferentiators

✓Reach –A complete cloud-based voice termination platform solution which currently connects 170 countries ✓Gateway –Accepted voice termination hub between Tier 1, 2 and 3 carriers globally ✓Scale – Enables high termination volume with strong partners up to several hundreds of USD $millions ✓No Limits –Termination scalability without technical limits ✓Quality – Highest quality routes in connection with most cost-effectivepricing ✓Intelligence – Business intelligence and detailed data analysis to drive down costs and increaseprofitability

SynergyBetweenB2BWholesaleDivision& B2CRetailDivision

Overview of Call T erminationServices

• Call termination refers to the process whereby telecom carriers / transit operators route calls from one provider to the next, until the recipient

receives the call.

• Call termination occurs asaresult of call origination, which is when an individual dials atelephone number on their device in order to contact

someone else (see Subscriber A in below diagram). The call is then transmitted by the individual’s telephone operator (Operator A) to the

• perator of the personwhom the individual is calling (OperatorB/ SubscriberB),at which point the call termination processstarts.
• AMobile Network is the entire system that encapsulates the initiation of the call through to its receipt by the receiver

2xGross Margins

Upco’s position in Mobile Network PRIOR to rolling out its MobileApp Upco’s position in Mobile Network AFTER rolling out its MobileApp

• Upco disintermediates Operator B

through its role as a TransitOperator

• As Upco acquires more users through its mobile app, Upco expects to

double gross marginsfor its B2B Wholesale Division through disintermediation effect

Transit Operators have traditionally played a “middle-manrole”

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Global VoIP Wholesale MarketOverview

• Since 2006, the rapidly growing adoption of smart portable devices such as smartphones and tablets in the residential and

corporate sectors driving global V

• IP servicesmarket
• The Challenge: Leading global telecom companies unable to provide customers with reasonable pricing on internationalcalls on

traditional telephone business

• T
• day’s Solution: Customers are calling internationally (off-network) through applications such as Skype, WhatsApp, Viber, etc.

– The wholesale telecom provider then terminates that call acrossthe world to the final destination network – Many businesses have migrated over to a VoIP system for its cost-effective, revenue-generatingfeatures V

• ice is Still Valuable
• In 2015, VoIP technology carried over 100 billion minutes of mobile voice

calls but only accounted only for 6%of 3G subscribers and 2%of standard mobile subscribers

• By 2016, Mobile VoIP applications were expected to reach $36 billion

with a rising number of users up to180 million

• From 2018 to 2021, growth opportunities will be driven by successful

international calls through mobile-based data applications (Skype, WhatsApp, Viber, etc.) and next generation technologies for value- added services (WebRTC, Hypervoice, XaaS,etc.)

Source: Infonetics ResearchForecast

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Upco’s GrowthStrategy

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B2B Wholesale Division– T elecom Services B2C Retail Division– MobileApp

▪Increase number of interconnection

agreements with Tier 1, 2 and 3 Global Carriers

▪T

elecom acquisition strategy at attractive EBITDAmultiples

▪Attract new clients to grow user base for

the Upco Mobile App organically (e.g. automotive, cannabis, sports, fashion and more)

▪Grow user base inorganically through

telecom acquisitions associated with B2B WholesaleDivision

Milestones

✓ Dec 2017: Upco Mobile App approved on mobile app stores (Google andApple) ✓Oct 2018: eMoney approved Upco to use their banking systems and start providingAPI banking information and Mastercard connected touser’s eWallet ❑ Dec 2018: Mobile app engagement and usage test results for Senegalmarket ❑ Dec 2018: Mobile app engagement and usage test results for Italianmarket ❑ Q1 2019: Mobile app engagement and usage test results for Philippinesmarket ❑ Q2 2019: Expand mobile app into additional 4-5countries – Ongoing: Seeking revenue generating acquisition targets to grow mobile app userbase and to increase revenues and grossmargins CSE:UPCO 16

Management

Andrea Pagani, Director and Chief Executive Officer / Upco International Inc. / Upco Systems Inc. Andrea Pagani, is the founder of Upco Systems Inc. and has been its CEO since 2014. From September 2011 until March 2014 Mr. Pagani was a solution enterprise architect for Verizon Business. Verizon is a global company which delivers communications and technology solutions to its

• customers. Mr. Pagani has also held positions with IBM, Telecom Italia and France Telecom. Mr. Pagani holds a Bachelor of Computer Science in

Nanotechnology from the Politecnico of Milano. Jag Sandhu, Corporate Development / Upco International Inc. Jag Sandhu a specialist in corporate finance and development and has over 18 years of experience in the capital markets. Mr. Sandhu has assisted domestic and international companies in raising multi million dollars for expansion and development. He has dealt extensively with strategic planning, mergers and acquisitions, financings and operations for companies in various industries. Mr. Sandhu has held various senior level executive positions in a number of listed companies. He received his Bachelor of Economics from Simon Fraser University in 1990. Paul Grewal, CPA and CA, Financial Consultant / Upco International Inc. Mr Grewal is currently a Partner with Heming, Wyborn & Grewal Chartered Accountants in Surrey, BC. He received his Bachelor of Commerce from UNBC in 1998, received his CA designation in 1998 and has completed Parts I & II of the CICA In-Depth Tax Course. Mr. Grewal joined Heming, Wyborn & Grewal in 2005 and was promoted to Partner on January 1, 2009. Mr Grewal has extensive experience in the financial management of corporations that are doing business in a variety of industries. Franco Zanichelli, Director / Upco International Inc. Franco Zanichelli, is director of Upco International Inc. and currently works as a foreign finance consultant for several companies and groups in Italy and abroad. Mr. Zanichelli also held several positions as financial director and client relations working with major European and international banks. Mr. Zanichelli holds a Bachelor in Parma, Italy.

Management

Dominic da Assuncao, Head of Fin-Tech Development / Upco International Inc. Dominic da Assuncao is a senior business system consultant and full-stack software engineer with over 27 years of development experience. Dominic is a graduate of British Columbia Institute of Technology, Capilano University, and DigiPen Institute of Technology, with specialization in international business, operations management, computer systems management, and computer games programming. Since 1991, Dominic has led teams in the delivery of world-class shrink-wrapped software, and has designed and delivered customized ERP systems, multi-media kiosk applications, and internet enabled auction and medical systems. In recent years, Dominic has been working extensively on heterogeneous blockchain technology for critical networked applications. He is presently engaged in upgrading a major clinical system at a prominent Canadian hospital using blockchain technology. Don Blackadar, Fin-Tech Payment Application Lead / Upco International Inc.

• Mr. Don Blackadar is a graduate of the University of Alberta (MSc) and a highly experienced professional with more than 25 years of experience

in information technology. As a senior business analyst and project facilitator, Mr. Blackadar’s focus and core expertise is in the areas of strategic business analysis, and custom software delivery, with a strong focus on requirements definition and documentation, project planning and coordination, and quality assurance. His work in Information Technology has encompassed diverse engagements in public sector legal support and education, healthcare, recreation and tourism, shipping, land development, benefits administration, utilities, municipal government, retail, manufacturing, and other areas. Don has worked closely with Dominic da Assuncao since 2000, collaborating on the delivery and support

• f a complex clinical application operating at a prominent Canadian Hospital, including several upgrades. They are presently working on a major

new release of clinical enterprise software invoking Blockchain technology.

Share Structure

Issued and outstanding 67,104,975* Options 6,470,000 Major shareholders: Management ownership 16% Coserfi S.R.L. 30% Aduna Holding GmbH 10% *35 million shares are escrowed over 3 years starting October 24, 2017 – 10% got released on this date and every 6 months thereafter 15% will be released.

ContactInfo

VancouverHeadquarters

Upco International Inc. 17618 – 58 Avenue, Suite 200 Surrey , B C V3S 1L3 Canada Phone: +1 (778) 218 9638

CSE:UPCO WWW .UPCOINTERNA TIONAL.COM 20

New Y

• rkHeadquarters

Upco Systems Inc. 747 Third Avenue, 2nd Floor, #116 New Y

• rk, NY

10017, USA Phone: +1 (212) 461 3676

• ffice@upcosystems.com

www.upcosystems.com