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Bob Brilon, President & CFO
INVESTOR PRESENTATION
October 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.
2
FORWARD LOOKING STATEMENT
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
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 Technology
Displacing 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 platform
They SELL Security/Peace of Mind to their millions of subscribers
• Plug and play cameras
COMPANY OVERVIEW
4
Simple Revenue Model - Extremely Scalable
Service Providers pay IVEDA a monthly fee per Camera
Service Providers Install SENTIR in THEIR Data Center
• THEY have the COST of hosting and storage
License per camera for SENTIR
Customer User Interface; Billing & Admin Tools
Data Center Storage and Compute Optimization; Free Mobile Apps
REVENUE MODEL
5
Telecom Data Center
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%
User
Friendly
Access live &
recorded video from
your computer or
mobile device.
No On-Site
DVR
Data Stored and
Accessed in the
defined CLOUD
Easy to
Deploy
Devices are
Plug and Play.
Camera
Compatibility
Firmware can
enable any IP
camera.
7
Cloud-Based Video Management Platform:
Proprietary and Patented components
SALES STRATEGY
8
Telecoms
Data Centers
Cable Service Providers
ISPs
Service
Providers
End Users
Home
SMBs
Enterprise
Government
License Revenue
Camera Revenue
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 INSPECTION
MONITOR PRODUCTION
EMPLOYEE SAFETY
SCHOOLS
TRAFFIC
PUBLIC
BUILDINGS
STRATEGIC BENEFITS
10
For IVEDA For Service Providers
Scale
Service Providers - Millions of
Customers.
Established Infrastructure
Service 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-Effective
Sentir 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
11
RevenueSources
Software 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
12
Philippines Long Distance
Telecommunications - PLDT
Philippines Largest Telecom
TELMEX Telecom
Part of America Movil
Vietnam Post
Telecommunications-VNPT
Vietnam’s Largest Telecom
Viettronics – Vietnam’s
Largest Electronics
Manufacturer
FPT – Third Largest
Telecommunications
Provider 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
13
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
Monthly
8k-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
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
PLDT
10,000 $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.
16
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
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
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
GO
APPENDIX
20
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

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Iveda Investor Presentation

  • 1. Bob Brilon, President & CFO INVESTOR PRESENTATION October 2015 Common Stock 27.7 MM Shares GO Enabling Cloud Video Surveillance Stock Symbol: IVDA
  • 2. 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
  • 3. 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
  • 4. 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 Technology Displacing 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 platform They SELL Security/Peace of Mind to their millions of subscribers • Plug and play cameras COMPANY OVERVIEW 4
  • 5. Simple Revenue Model - Extremely Scalable Service Providers pay IVEDA a monthly fee per Camera Service Providers Install SENTIR in THEIR Data Center • THEY have the COST of hosting and storage License per camera for SENTIR Customer User Interface; Billing & Admin Tools Data Center Storage and Compute Optimization; Free Mobile Apps REVENUE MODEL 5 Telecom Data Center
  • 6. 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%
  • 7. User Friendly Access live & recorded video from your computer or mobile device. No On-Site DVR Data Stored and Accessed in the defined CLOUD Easy to Deploy Devices are Plug and Play. Camera Compatibility Firmware can enable any IP camera. 7 Cloud-Based Video Management Platform: Proprietary and Patented components
  • 8. SALES STRATEGY 8 Telecoms Data Centers Cable Service Providers ISPs Service Providers End Users Home SMBs Enterprise Government License Revenue Camera Revenue
  • 9. 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 INSPECTION MONITOR PRODUCTION EMPLOYEE SAFETY SCHOOLS TRAFFIC PUBLIC BUILDINGS
  • 10. STRATEGIC BENEFITS 10 For IVEDA For Service Providers Scale Service Providers - Millions of Customers. Established Infrastructure Service 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-Effective Sentir 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.
  • 11. REVENUE MODEL 11 RevenueSources Software 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
  • 12. TELECOM CONTRACTS 12 Philippines Long Distance Telecommunications - PLDT Philippines Largest Telecom TELMEX Telecom Part of America Movil Vietnam Post Telecommunications-VNPT Vietnam’s Largest Telecom Viettronics – Vietnam’s Largest Electronics Manufacturer FPT – Third Largest Telecommunications Provider in Vietnam
  • 13. 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
  • 14. 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 Monthly 8k-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
  • 15. 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 PLDT 10,000 $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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. 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
  • 21. 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