Slide 1: Taoping Inc. June 2019
Taoping it\fz TAOPING INC. “(NAsDAa: TAOP) ik RFR 68 HR H HO June 2019 Make Aa anding ‘Affordable and ive for Everyone:
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We use words such as “will,” “expect,” “believe,” “anticipate” or similar expressions, which are intended to identify forward- looking statements that involve risks and u
Slide 3: Company Overview
© => |] company oveRVIEW TAOPING INC. Formerly known as China Information Technology, Inc. (NASDAQ: CNIT).
Slide 4: Investment Highlights
) => | INVESTMENT HIGHLIGHTS “We Are Making Advertising and Branding More Targeted, More Affordable, and More Effective for Everyone.”
Slide 5: Capital Structure
© => [J CAPITAL STRUCTURE TAOPING, INC. (NASDAQ: TAOP) 7 : (as of 5/30/2019) 52 Week Range $0.80 — 1.89 Shares Outstanding 40,760,000 Market Cap 36.75M Stock Price $0.88 Ll uti a. eae Note: The Company's fiscal year end is December 31st
Slide 6: Historical Financial Data: Strategy Change, Phoenix Nirvana
om HISTORICAL FINANCIAL DATA: STRATEGY CHANGE, PHOENIX NIRVANA Sales ($in thousands) 60,000 50,000 40,000 30,000 20,000 10,000 ° 2013 2014 2015 2016 2017 2018 Sales bottomed in 2016 100,000 80,000 60,000 40,000 Debt ($in thousands) 20,000 0 2013 2014 2015 2016 2017 2018 Deleveraged since 2013
Slide 7: 2018 Financial Highlights
ee > ee e | 2018 FINANCIAL HIGHLIGHTS Revenue was $20.6 million, an increase of 13.1%, compared to $18.2 million for 2017 Gross profit as a percentage of revenue was 46.9% for the nine months of 2018, increased from 45.8% for last year. Net income attributable to the Company was $1.7 million, compar
Slide 8: Market Opportunities
ass | MARKET OPPORTUNITIES Internet-of-Things is Reinventing the Out-of-Home Advertising Market.
Slide 9: Business Model
> | BUSINESS MODEL Nationwide loT Network of Cloud-based Smart Display Screens Publish Ads Pry | es Select Distribution Advertiser Manage Sites “wanage Ses wa Display Screen Owner (Taoping Alliance Member) Consumer
Slide 10: Cloud-based Platform
02 Cloud-based Platform Operation Services 01 Smart loT Screens + Market and sell smart screen hardware. + Charge smart screen owners monthly subscription fees for advertisement distribution services. Big Data Services (Near Future) 03 E-Commerce + Earn commission from advertising time slot placed w
Slide 11: Growth Strategy
| GROWTH STRATEGY 4 Find Local Entrepreneurs to Expand Taoping Network to 3'¢, 4, and 5‘ Tier Cities We have built up a central network covering all major cities in 26 provinces, the focus now is to expand into lower tier cities where there are less competitions and consumption growth is robust. 2 H
Slide 12: What We Provide to Smart Display Screen Owners
© a | What We Provide to Smart Display Screen Owners Multimedia Section For commercial video ads ‘Community Notification For community interactions Poster Section For poster ads lily « ail BEinSinaton Smart Display Screen, and Nationwide Cloud-Based Product and Customer loT Network (Taoping Network)
Slide 13: Taoping Alliance
oe | TAOPING ALLIANCE Taoping Alliance is an alliance of smart display screen owners for cities nationwide, each member represents one city in the Taoping Network. In other words, Taoping Alliance is a network of people - Taoping owners. It was jointly founded by TAOP and Shenzhen Taoping New-Media
Slide 14: What We Provide Advertisers: Taoping App and Network
© ae | What We Provide Advertisers : TAOPING APP and TAOPING NETWORK TAOPING APP Access to TAOPING Network Enabling Advertisers to place and distribute advertisement to any desired screen in any city, from anywhere. 14
Slide 15: Taoping e-Store
On | What We Provide to Advertisers: TAOPING e-Store, Contents in Sync with 7 ™ Contents in Elevator Screens TAOP Exclusive Sale TAOPING GO (e-Store) wR O ams ~ @ | amaw ~ @ Eau “oe ‘sono oD ase on BWSR 52 lrSm) iz ummessionen aA, f won a i SnaRae i 1 oe am e ¥ . g mnesmocort, Kae De agen nemoxe un
Slide 16: Functions of Networked Smart Display Screens
on FUNCTIONS OF NETWORKED SMART DISPLAY SCREENS Brand Showcase Taoping e-Store Customer Statistics Like traditional out of door Contents on Smart Display Merchants are able to medias, Taoping screens Screens are duplicated in develop better strategies allows advertisers to Taoping Go (e-Store) and a
Slide 17: Taoping Eco-System
| TAOPING amemames ECO-SYSTEM Smart Display Screen, high resolution display, TAOP proprietary operating system, daily viewer statistics. | Taoping Network, an loT network of cloud-based smart screens, allows sharing and trading of advertising-resources. www.taoping.cn =~ Cloud Management Tool, App f
Slide 18: Advertisers
© => |] apvertisers Within the past 12 months, 150+ leading brands have chosen TAOP. For example, Audi, Toyota, Porsche, Volkswagen, Ju’an Home, 58 City, Anjuke, China Unicom, Citic Insurance, Taiping Life, Industrial Bank China, Everbright Bank, Oriental Fortune, etc. roaaTeD Ona cleared exnedna 18
Slide 19: Development Plan (by the end of 2019)
om If] DEVELOPMENT PLAN (by the end of 2019) Number of Cities in Taoping Alliance: 300 Display Screens nationwide: 180,000 Tao pi hg Business users (Taoping App / Taoping e-Store): Eco-System 30,000 Taoping e-Store retail users: 3 million Cloud-based loT network coverage: 200 million population 19
Slide 20: The Management Team
> => |] THE MANAGEMENT TEAM 20
Slide 21: Investment Highlights
on INVESTMENT HIGHLIGHTS » Decisive strategy change since 2013 to focus on private sectors, with deleverage, right sizing (from 1000+ employees to around 100), legacy business sales and closures, and new business development. New business started in 2017 and is on a sustained growth path. » Taoping
Slide 22: Thanks
TAOPING INC. (NASDAQ: TAOP) THANKS TAOPING | #2 #7 £ i FR For further information, please contact: Taoping Inc. 7 Dragon Gate Investment Partners LLC eer a7 Tel: +1(646)-801-2803 Or visit www.taop.com Email: taop@dgipl.com