2. ⢠This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this
presentation, including statements regarding InterCloudâs future results of operations and financial position, financial targets, business
strategy, plans and objectives for future operations, are forward-looking statements. The Company has based these forward-looking
statements largely on its current estimates of its financial results and its current expectations and projections about future events and
financial trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term
business operations and objectives, and financial needs as of the date of this presentation. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions. Moreover, the Company operates in a very competitive and rapidly
changing environment. New risks emerge from time to time. It is not possible for Company management to predict all risks, nor can the
Company assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statements the Company may make. In light of these risks,
uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may not occur and actual
results could differ materially and adversely from those anticipated or implied in the forward- looking statements.
⢠More detailed information about the risk factors affecting the Companyâs performance is available under the heading âRisk Factorsâ in
Item 1A. in the Companyâs Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which is available on the
Securities and Exchange Commissionâs website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-
looking statements, which reflect managementâs analyses only as of the date hereof. The Company neither intends to, nor assumes any
obligation to, update or revise these forward-looking statements in light of developments that differ from those anticipated.
Statement on Pro Forma Financials
⢠The pro forma condensed consolidated financial information included in this prospectus is constructed from the separate financial
statements of the Company, its wholly owned subsidiaries and its targeted acquisition(s), and may not represent the financial information
that would result from operations of the combined companies. In addition, the pro forma condensed consolidated financial information
included in this free-writing prospectus is based in part on certain assumptions that the Company believes are reasonable. The
Company cannot assure you that our assumptions will prove to be accurate over time. Accordingly, the historical and pro forma
condensed consolidated financial information included may not reflect what the Companyâs results of operations and financial condition
would have been had we been a combined entity during the periods presented, or what the Companyâs results of operations and
financial condition will be in the future. The challenge of integrating previously independent businesses makes evaluating our business
and our future financial prospects difficult. The Companyâs potential for future business success and operating profitability must be
considered in light of the risks, uncertainties, expenses and difficulties typically encountered by recently combined companies.
Disclaimers
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3. Company Overview
InterCloud is a âCloud Integratorâ providing
IT technology solutions to the enterprise,
service provider, and government markets through
âCloud Platformsâ and professional services.
These unique building blocks will enable our customers
to reduce costs, increase efficiencies and take advantage
of emerging cloud applications in InterCloudâs outsourced
managed services model.
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4. Proprietary Cloud Platform
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⢠Platform is built around âCloud Stackâ at the core
Scalable, virtualized, low cost software, pay per use, broad network access
⢠Unique capabilities due to 100% open source architecture
⢠Fully redundant cloud infrastructure in place
Google DC, 200 Paul SF, San Jose and Clifton, NJ
Expand to Atlanta, Chicago, Ireland, Asia, Dubai, Europe
⢠Branded products and services
âOwnspaceâ â HiPPA compliant File sharing and storage product/ private secure
Communications-as-a-service/UC â Hosted PBX
Ad audit system
Client notification system â Education
⢠Existing customers
5. Key Information
⢠Headquarters: Shrewsbury, NJ
⢠Office locations: Atlanta, Tampa, Miami, Orlando,
Chicago, Dallas, Parsippany NJ, Los Angeles, San Francisco
⢠Current Annual Pro-forma Revenue: $81 Million
⢠Current Annual Pro-forma adjusted EBITDA: $6.9 Million
⢠Offering âCloud Solutionsâ via our proprietary platform
⢠Providing professional engineering services onsite/offsite
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6. Value Proposition - Investors
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⢠Proven track record of growth and profitability - recurring revenues
⢠Cloud Services is in its âinfancy stagesâ of the growth curve (IDC)
⢠Unique capabilities in private, hybrid and public cloud
⢠Unified business model - cross selling and upselling
Faster revenue growth through existing client base
Margin expansion in existing and new clients
⢠A direct provider of Cloud solutions: greater control and flexibility
for customer needs and price competitiveness
⢠Strategic partnerships with top industry players
⢠Successful management team, invested and committed
8. Industry Growth Trends
⢠PaaS â 26.6% CAGR to $6.45B in 2016 (Gartner)
⢠PaaS â only 100 platforms worldwide in 2012 (IDC)
⢠IaaS â 41% CAGR to $4B by 2016 (Gartner)
⢠SaaS â 24% CAGR to $67B 2016 (IDC)
⢠SDN â $360M to $3.7B from 2013 - 2016 (IDC)
⢠Small Cell â 73% YOY CAGR to $16B by 2016 (Infonetics)
⢠Mobile data traffic will increase 13 - fold in the next 5 years
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10. Industriesâ third platform for growth and innovation
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2nd Platform: Infrastructure 1.0
LAN/Internet - Client/Server
PC
Cloud Services - Big Data Analytics - Virtualization
Opex Model - Meta Orchestration
Commodity Gear/Open Systems
Elastic Infrastructure
3rd Platform: Infrastructure 2.0
Mobile Devices
and Apps
1st Platform: Infrastructure 1.0
Mainframe - Terminal
Billions of users
CIOs - LOBs - Enterprises
SMBs - SPs - Customers
Emerging Markets
Millions of
Apps - Services - Information
Content - Experiences
Hundreds of
Millions of Users
Tens of
Thousands of Apps
Millions of Users Thousands of Apps
11. Value Proposition - Customers
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⢠Reduce costs
Lower IT total cost of ownership
⢠De-Risk
Convert fixed capital to variable operational cost
⢠Agility
The infrastructure can be provisioned quickly and be available for the users
in minutes - improving time to market
⢠Global Scale
The compute resources can be deployed across different parts of the globe
⢠On-going 24/7 Support
Global professional services team of over 300 engineers
12. InterCloud Design Advantages
⢠SLA based private/public Cloud Services:
Compute, Network and Storage 99.99%
⢠Co-located in the biggest carrier hotel in the United States
(NYC, San Francisco, Santa Clara)
⢠Cloud Infrastructure built on Tier 1 vendors: HP, Brocade, Intel, etc.
⢠Fully redundant and diverse Cloud Architecture
⢠Highly customizable and scalable architecture to meet customersâ
unique requirements, complimented by professional services
Official Cloud Partner
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13. Case Study
InterCloud Cloud Service IAAS (Infrastructure as a Service):
Server Consolidation with reduced CAPEX Model
Project Name: Global retailer: Infrastructure as a Service.
Project Description:
- retailer owns 8 top brands
- integrate and consolidate the IT organizations of the acquisitions
- private cloud architecture over dedicated circuit
Technology Skill Set:
- Microsoft SQL, cloud stack, xen, Cisco networking
Benefit to Client:
- highly scalable compute resources
- elastic resource requirements
- move point of sale platform to IaaS model and will save millions on credit card processing
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14. Go-to-Market Strategy
Direct End Customers
⢠Direct sales to enterprise and service providers
⢠Cross-sell and up-sell synergies
Channel Partners
⢠Tier 2 & 3 service providers - white label
⢠Value added resellers
⢠Applications developers
⢠National wholesalers
Indirect
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17. Turn Key Solutions
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Provide our clients with short and long term, high value
professional management solutions
⢠Focused on achieving targeted results
⢠Measurable performance results for your business
⢠Extensive experience in multi-vendor/multi technology environments
⢠Experience in Cloud computing, network integration, network operations,
software development, hardware development, IPV6, & network convergence
⢠Outsourced managed services solutions designed to improve service delivery
& reduce costs for our clients
Our teams offer fixed price, time and materials project
implementation on premise, or at our facilities
18. Case Study
Professional Services:
Music Group: Global SSLVPN Deployment
Project Name: Global SSLVPN Design and Deployment.
Project Description: Music Group with offices in NYC, Burbank, London, Hamburg,
Hong Kong, Sydney and Tokyo. InterCloud designed a Juniper SSLVPN solution.
Benefit to Client: SSLVPN Engineer designed a system with critical features; Host Checker,
AD Integration, Resource Profiles and Policies, Certificate Integration and Network Location to
increase the security of Juniper MAGs and user connections.
Technology/Skill Sets: Juniper MAG SSLVPN, Microsoft AD integration,TCP/IP, Wireshark,
OSI Application Layers, Triple A, SSL Certificate, TCP/UDP ACLâs, JSAM, WSAM, Single Sign On,
Public Key Infrastructure (PKI), Security Assertion Markup Language (SAML).
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20. Pro-Forma Income Statement with IPC
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(figures in $000)
Year ended December 31,
2013
Revenues 81,283
Cost of Revenue 59,102
Gross Margin 22,181
Operating Expenses 15,307
Adjusted EBITDA 6,874
Depreciation and Amortization 2,109
Stock Compensation 2,508
Income from Operations 2,257
Taxes and Other Expense (22,274)
Net Income (25,017)
21. InterCloud 2013 vs 2012 Balance Sheet
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(figures in $000) December. 31, 2013
Assets
Cash $17,866
Accounts Receivable 7,822
Prepaid Assets 2,618
Current Assets 28,307
Net Fixed Assets and Intangibles 30,209
Other Assets 2,174
Total Assets 60,690
Liabilities and Stockholders' Equity
Current Liabilities 24,112
Long Term Debt 38,254
Total Liabilities 62,366
Redeemable Common and Preferred Stock ----
Stockholders' Equity (Deficit)
Share Capital 36,267
Retained Earnings (Deficit) (37,943)
Stockholders' (Deficit) (1,676)
Total Liabilities and Stockholders' Equity (Deficit) $60,690
December. 31, 2012December. 31, 2012
$647
8,482
1,055
10,184
30,034
1,648
41,866
13,410
15,160
28,570
16,585
9,167
(12,456)
(3,289)
$41,866
22. InterCloud Investment Highlights
Markets with High Growth Potential
Proven Ability to Sell and Support Fortune 1,000 Accounts
and Tier 1,2,3 carriers
Established Company Track Record
Replicable, Scalable, Services Model
with Industry Leading Strategic Partnerships
Proven Management Team with Over 170 years
of Combined Executive Leadership Experience
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23. Strategic Guidance Presentation
Key Executives
Over 170 years in High Tech Executive Experience
Mark E. Munro (Chairman & CEO)
⢠Partner Munro Capital Inc., a private equity fund and investor in ICLD. Chairman Vaultlogix, a cloud based online data
backup company. Founder of Eastern Telecom Inc., a telecom outsourcing business in the 1990s.
Frank Jadevaia (President)
⢠CEO and Founder of Integration Partners - NY, a leading solutions provider to enterprise and service provider
markets. VP Sales Nortel Networks, sales and leadership roles at Bay Networks and Wellfleet Communications,
multiple venture-backed start-up company experience.
Roger Ponder (COO)
⢠President Time Warner MidWest. President Oceanic, a broadband company in Hawaii.
VP strategic planning Time Warner Telecom.
Dan Sullivan (CFO)
⢠CFO Munro Capital Inc., a private equity fund focused on investing in small growth companies.
CFO of Vaultlogix, a cloud based online data backup company. Public accounting experience.
Scott Davis (EVP Sales)
⢠President, Nottingham Enterprises - an IT services and outsourcing firm. Former Senior Executive of Xeta
Technologies, a publicly traded managed services provider sold to Paetec in 2010. Nortel Networks and DSC.
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