Zst Digital Networks Inc · OTC:ZSTN
Zst Digital Networks — Investor Presentation (September 2010)
20 slides from Zst Digital Networks's investor presentation, Sep 22, 2010
Slide 1: ZST Digital Networks Investor Presentation September 2010
J] ZST ZST Digital Networks, Inc. NASDAQ: ZSTN Investor Presentation SEPTEMBER 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain “forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects" or similar expressio
Slide 3: Company Snapshot
Company Snapshot Company Name Listing / Trading Public Offering Outstanding Shares Market Capitalization About ZSTN + ZST Digital Networks Inc. (Delaware) + NASDAQ /ZSTN + October 20, 2009 + 11,650,442 as of March 31, 2010 + US$74.3 million as of September 1, 2010 + Headquarter: Zhengzhou, China + E
Slide 4: Developer, Manufacturer and Supplier of Cable Systems and Commercial GPS Products in China
Systems a r Developer, Manufacturer, and Supplier of Cable Commercial GPS Product: China Leader in the Internet Protocol Television (IPTV) set-top box market within Henan Province, the largest province by population (130 million people) in China — Primary clients include broadcast TV bureaus and cab
Slide 5: Solid Product and Service Portfolio
Solid Product and Service Portfolio Optical Devices IPTV Set-top Boxes + Legacy product smitters, + Bundled cable TV, Internet and telephone services High Definition ha Ww Others GPS Tracking Systems & Services + Security monitoring + Satellite positioning 7 S¥865 devices for navigation, + Codingide
Slide 6: Investment Highlights
Investment Competitively Positioned in the Rapidly Growing TV Market in China Emerging Opportunities in GPS Tracking Systems and Services Market Flexible and “Asset-Lite” Business Model, with a Focus on Operational Efficiency Proven Product Design and Development Capabilities Established Sales Netwo
Slide 7: Growing Opportunities in China's Cable TV Market
Growing Opportunities in Robust Growth of China’s Cable TV Market OES Uae Hot Household Users in milions ‘Subseibers in millions 08 CCR 0% 20020052006 20072008 = -a# of Household Subscribersin —e% penetration ‘Sowee: Sate Adminsraton of Rado Fi and Teeson(SARET) ‘Source: 808 ; 2007 2008 2009 2010E 2
Slide 8: IPTV Set-top Box Market Share
IPTV Set-top Box Market Share as of September 30, 2009 PRC Cable TV Subscribers: 160 million households 480 million viewers A Henan Province Cable TV ‘Subscribers: .--~ 10 million households Source: Company estimates, SARFT, Henan Province Sites Bureau a2 of December 2008
Slide 9: Opportunities in GPS Tracking Systems and Services Market
s in GPS Tracking Systems and Services Market Large and Untapped China GPS Market Gaining Momentum * 2008 motor vehicle GPS + Signed first contract in Nov 10, market size in China: RMB8 2009 for vehicle GPS billion (168 million vehicles) ; a — One-time supply and installation — GPS installed base <1
Slide 10: Asset-Lite Business Model
+ Minimum capital requirement + Efficient operational infrastructure Development a =< | sm an oe) r V- + Determine customer + Expanding sales and of raw materials and + Strong focus and fast Sales network covers ‘components, ‘tumaround on product all major Henan + Final system quality design and dev
Slide 11: Proven Product Design and Development Capabilities
Adaptable Technology Solutions. Solid Branding Competitive Market Position Proven Installed Base In-Depth Market Knowledge
Slide 12: Established Sales Network
5 Established Sales Network + Extensive ZST product coverage + Sales network covers all major Henan counties ZST Product Coverage
Slide 13: Experienced Management Team
6 Experienced Management Team « Mr. Zhong Bo, Chairman and Chief Executive Officer — Renowned industry veteran — Extensive electronic design and product development experience « Mr. John Chen, Chief Financial Officer — In depth finance and global capital markets experience * Mr. Zhong Lin, Chief Ope
Slide 14: Strong Financial Performance: A Track Record of Growth and Profitability
Strong Financial Performance: A Track Rec: of Growth and Profitability enue tNet Income. (USD millions) 11Re\ 110 cx 1004 FY2006 FY2007 FY2008 FY2009 | Q2,2009 2, 2010 11.3% 10.0% 11.0% 10.0% 10.8% 15.7% largin
Slide 15: Revenue Streams
venue Streams Revenue by Product Segment Q2 2009 Q2 2010 64% ~ 43% 39% Pv PTV sors Rapidly Increasing Contribution from GPS Products & Services
Slide 16: Healthy Balance Sheet
Healthy Balance Sheet As of June 30, 2010 Us$ Mition Cash 15.8 Total A/R 28.9 Inventory 05 Total Assets 57.9 Short-term Loans 0.0 Total Current Liabilities Shareholders’ Equity 55.2 27
Slide 17: Business Outlook
Business Outlook
Slide 18: Growth Strategy
Growth Strategy Core business ? ‘expansion by Increase penetration of leveraging IPTV set-top commercial GPS box replacement cycle systems and services and new customers market Pursue selected Growth opportunities for Increase penetration strategic partnerships, Strategy by expanding sales joint ven
Slide 19: Guidance for Third Quarter and FY 2010
Guidance for Third Quarter and FY 2010 ZSTN currently estimates that third quarter 2010 revenue will range between US$34.0 million and US$37.0 million ZSTN currently estimates that third quarter 2010 net income will range between US$5.5 million and US$6.0 million ZSTN currently estimates that FY 201
Slide 20: Thank you
ZST NASDAQ: ZSTN Thank you www.shenyangkeji.com
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