Iveda Investor Presentation

21
Bob Brilon, President & CFO INVESTOR PRESENTATION October 2015 Common Stock 27.7 MM Shares GO Enabling Cloud Video Surveillance Stock Symbol: IVDA

Transcript of Iveda Investor Presentation

Page 1: Iveda Investor Presentation

Bob Brilon, President & CFOINVESTOR PRESENTATIONOctober 2015

Common Stock 27.7 MM Shares GO

Enabling Cloud Video Surveillance

Stock Symbol: IVDA

Page 2: Iveda Investor Presentation

This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events. These statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievement described in or implied by such statements, including statements relating to: (a) Iveda’s future revenue, expenses, margins, profitability, net income, taxes, adjusted net income, adjusted operating expenses and other measures of results of operations; and (b) Iveda Solution's ability to capitalize on industry trends. Actual results may differ materially from the expected results described in our forward-looking statements, including with respect to: development and acceptance of Iveda’s services; competitive risks, including competing technologies, products and services, and the competitive activities of our competitors; risks associated with the introduction of new products and services; risks inherent in strategic relationships, and technology and service integration efforts. The preparation of our financial statements and forward-looking financial guidance requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and the reported amounts of revenues and expenses during the reported period. Actual results may differ materially from these estimates under different assumptions or conditions.

Iveda assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the Iveda Solutions' securities should not place undue reliance on these forward-looking statements.

2

FORWARD LOOKING STATEMENT

Page 3: Iveda Investor Presentation

Enabling, Disruptive Technology− CLOUD based - NO On-Site SYSTEMS or DVRs− License SERVICE PROVIDERS to compete for Market Share

INVESTMENT HIGHLIGHTS

3

SENTIR - Internet-based video surveillance PLATFORM Enabling Plug and Play Video Surveillance

Proprietary and Efficient Software Platform− Proprietary cloud based architecture – Patented components− Storage and Compute efficiency for Big Data

Defined Path to Profitable Growth− Service Provider Contracts in place achieve profitability

Extremely Scalable Recurring Business Model− LICENSE large Service Providers to deliver to Millions of established customers

Large & Growing Market− Nearly $60B Internet based video surveillance market

5

1

2

3

4

Page 4: Iveda Investor Presentation

Iveda® - CLOUD video surveillance Access from your phone, tablets, and

computers anywhere in the world• Alerts – Email and SmartPhone Notifications• Live and recorded video

CLOUD is the Disruptive TechnologyDisplacing DVRs and traditional on-site systems.

IVEDA ENABLES Service Providers to compete for Market Share(Telcos, ISPs, Data Centers, Cable) We LICENSE our CLOUD video surveillance software platformThey SELL Security/Peace of Mind to their millions of subscribers • Plug and play cameras

 

COMPANY OVERVIEW

4

Page 5: Iveda Investor Presentation

Simple Revenue Model - Extremely Scalable Service Providers pay IVEDA a monthly fee per CameraService Providers Install SENTIR in THEIR Data Center• THEY have the COST of hosting and storage

License per camera for SENTIRCustomer User Interface; Billing & Admin ToolsData Center Storage and Compute Optimization; Free Mobile Apps

   

REVENUE MODEL

5

Telecom Data Center

Page 6: Iveda Investor Presentation

MARKET OPPORTUNITY

6

Sources: IDC, Allied Market Research

Estimated CAGR for global sales for IP video surveillance

from 2013-2020

Global IP Video Surveillance Market by 2020

International VSaaS

North America

$38.6B

$18.7B

$57.3B

37%

Page 7: Iveda Investor Presentation

User Friendly

Access live & recorded video from

your computer or mobile device.

No On-Site DVRData Stored and Accessed in the defined CLOUD

Easy to DeployDevices are

Plug and Play.

Camera CompatibilityFirmware can enable any IP

camera.

7

Cloud-Based Video Management Platform:Proprietary and Patented components

Page 8: Iveda Investor Presentation

SALES STRATEGY

8

Telecoms

Data Centers

Cable Service Providers

ISPs

ServiceProviders End Users

Home

SMBs

Enterprise

Government

License Revenue

Camera Revenue

Page 9: Iveda Investor Presentation

END USER APPLICATIONS

9

Home Small & Medium Businesses(SMBs)

Enterprise Government

Sentir’s flexibility and cost-effectiveness provides an almost endless number of applications.

BABY & PETS SECURITY

DELIVERIES

EMPLOYEE & CUSTOMER Surveillance

MARKETING DATA SECURITY–OFF HOURS

VANDALISM

REMOTE INSPECTIONMONITOR PRODUCTION

EMPLOYEE SAFETY

SCHOOLSTRAFFICPUBLIC

BUILDINGS

Page 10: Iveda Investor Presentation

STRATEGIC BENEFITS

10

For IVEDA For Service ProvidersScaleService Providers - Millions of Customers.

Established InfrastructureService Provider will handle billing, hardware distribution, and data center for hosting Sentir on their cloud.

Average Revenue Per User (ARPU)Revenue from existing customers

Simple And Cost-EffectiveSentir is designed to utilize and optimize existing data center.

Pay Per Device Model

No up front fees, immediate positive cash flow for service providers is an easy purchase decision and builds annuity for Iveda.

Infrastructure Utilization

Increased revenues for bandwidth and data storage in tandem with video surveillance service.

Page 11: Iveda Investor Presentation

REVENUE MODEL

11

Revenue SourcesSoftware Licensing Fees -

Perpetual$3/camera/month

Hardware

Service Providers expected to charge $5-$10/per camera

IVEDA generates additional revenue from sales of its branded cameras

90%

25%

Gross Margin

Page 12: Iveda Investor Presentation

TELECOM CONTRACTS

12

Philippines Long Distance Telecommunications - PLDTPhilippines Largest Telecom

TELMEX TelecomPart of America Movil

Vietnam Post Telecommunications-VNPT Vietnam’s Largest Telecom

Viettronics – Vietnam’s

Largest Electronics Manufacturer

FPT – Third LargestTelecommunicationsProvider in Vietnam

Page 13: Iveda Investor Presentation

RECENT TELECOM PARTNERS UPDATE

• Philippine Long Distance Telephone Co - PLDT• 10,000 unit PO ($1.33MM)

• Vietnam’s Largest Telecom - VNPT• Signed Framework Agreement in December 2014• Final licensing agreement – Executed April 2015

• 50,000 unit commitment• Hundreds of units per month per 63 provinces projected• July – Four Data Centers Installed with SENTIR• P.O.s and Deposits in Process

• Viettronics • 50,000 camera license commitment first year from June 2015• Agreement represent at least $1.8 Million in Annual Recurring Revenue• In process for deposits and P.O.s (end customer is state owned telecom)

• FPT • Agreement signed for 10,000 devices next 12 months

• VIETNAM TWO OTHER MAJOR TELECOMS IN PROCESS

13

Page 14: Iveda Investor Presentation

ILLUSTRATIVE FINANCIALS

14

Activations Hardware Hardware Margin

Annual License Fee

Estimated Annual Cash Operating Expense

250,000 $30 M $7.5 M $9 M $4 M

500,000 $60 M $15 M $18 M $4.5 M

1,000,000 $120 M $30 M $36 M $5 M

CASHFLOW ANALYSIS EXAMPLE

Accumulated Activations

Monthly License Fee

Hardware Monthly8k-10k units

Hardware Margin

Monthly Cash Op Exp.

Positive Cash Flow

30,000 $90K (A) $1 - $1.2M $250K - 300K (B) $225K (C) A + B - C

$115K to $165K

MONTHLY CASH BREAKEVEN ANALYSIS

Page 15: Iveda Investor Presentation

ILLUSTRATIVE FINANCIALS

15

Customer First Year Camera Activations

Average Camera Revenue

First Year Camera Revenue

Monthly Sentir Fee per Camera

End of First Year Sentir Fee Annuity

PLDT10,000 $130 $1.3 Million $3 $0.36 Million

VNPT 50,000 – 150,000 $120 $6.0 Million -

$18 Million $3 $1.8 Million - 5.4 Million

VIETTRONICS 50,000 $120 $6.0 Million $3 $1.8 Million

FPT - IvedaHome

10,000 $200 $2.0 Million $3 $.36 Million

Vietnam Telecom #3

Vietnam Telecom #4

REVENUE

Page 16: Iveda Investor Presentation

2015 PROJECT-BASED CONTRACTS

MEGAsys (100% owned Taiwan System Integrator)• Secured $1.8 M contract with Chunghwa Telecom• Secured $1.4 M contract with Taiwan Stock Exchange• Secured $500K contract with Taiwan International Airport• Secured $1.5 M contract with Chunghwa Telecom• Secured $544K contract with Chunghwa Telecom for 2015

MEGAsys anticipated to be positive cash flow and profitable for 2015 with just these announced projects.

16

Page 17: Iveda Investor Presentation

CORPORATE ROADMAP

17

With the launch of Sentir in 2014, Iveda is on course to execute on its licensing strategy culminating with an up list to Nasdaq and Profitability.

Path to Profitability

Sign Additional Service Provider

Agreements

NASDAQ Uplist

Achieve Profitability

Sentir Launch April 2014

Existing Service Provider Contracts

Page 18: Iveda Investor Presentation

EXPERIENCED LEADERSHIP

18

David Ly Chairman/CEO

• 10 years cloud video technology within the security industry

• 14 years Sales Management, Telecom industry

Bob Brilon President/CFO

• 30 years’ as CEO, President, and CFO of NASDAQ technology companies

• InPlay (NASDAQ:NPLA); Duraswitch (NASDAQ:DSWT); Rental Service Corp. (NYSE:RRR) and Go-Video (AMEX:VCR)

Dr. Joseph Lee Cloud Architect

• Cloud computing expert• CTO at 21Vianet, largest data center in China• Sr exec at Microsoft, Lucent Technologies, Exxon and

Owens Corning

Dr. Eric Chen Cloud Storage

• Founder/CEO of CA-based ProphetStor Data Services• Big Data storage architecture expert• Sr exec at FalconStor Software (NASDAQ: FALC), IBM

Management

Technology Advisors

Page 19: Iveda Investor Presentation

Enabling, Disruptive Technology− CLOUD based - NO On-Site SYSTEMS or DVRs− License SERVICE PROVIDERS to compete for Market Share

INVESTMENT HIGHLIGHTS

19

SENTIR - Internet-based video surveillance PLATFORM Enabling Plug and Play Video Surveillance

Proprietary and Efficient Software Platform− Proprietary cloud based architecture – Patented components− Storage and Compute efficiency for Big Data

Defined Path to Profitable Growth− Service Provider Contracts in place achieve profitability

Extremely Scalable Recurring Business Model− LICENSE large Service Providers to deliver to Millions of established customers

Large & Growing Market− Nearly $60B Internet based video surveillance market

5

1

2

3

4

Page 20: Iveda Investor Presentation

GO

APPENDIX

20

Page 21: Iveda Investor Presentation

21

• Easy to set up • Excellent video quality at an

affordable price • See all your cameras on a single

dashboard • View from your computer, tablet or

smartphone • Cloud hosted, 24/7 Web access to

live & recorded video • Off-site cloud storage for video

security

True Plug & Play