Download - Iveda Investor Presentation
Bob Brilon, President & CFOINVESTOR PRESENTATIONOctober 2015
Common Stock 27.7 MM Shares GO
Enabling Cloud Video Surveillance
Stock Symbol: IVDA
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.
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FORWARD LOOKING STATEMENT
Enabling, Disruptive Technology− CLOUD based - NO On-Site SYSTEMS or DVRs− License SERVICE PROVIDERS to compete for Market Share
INVESTMENT HIGHLIGHTS
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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
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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
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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
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Telecom Data Center
MARKET OPPORTUNITY
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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%
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.
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Cloud-Based Video Management Platform:Proprietary and Patented components
SALES STRATEGY
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Telecoms
Data Centers
Cable Service Providers
ISPs
ServiceProviders End Users
Home
SMBs
Enterprise
Government
License Revenue
Camera Revenue
END USER APPLICATIONS
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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
STRATEGIC BENEFITS
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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.
REVENUE MODEL
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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
TELECOM CONTRACTS
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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
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
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ILLUSTRATIVE FINANCIALS
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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
ILLUSTRATIVE FINANCIALS
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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
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.
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CORPORATE ROADMAP
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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
EXPERIENCED LEADERSHIP
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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
Enabling, Disruptive Technology− CLOUD based - NO On-Site SYSTEMS or DVRs− License SERVICE PROVIDERS to compete for Market Share
INVESTMENT HIGHLIGHTS
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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
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APPENDIX
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• 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