Slide 1: Investors Presentation Jan. 2020
Taoping jit TAOPING INC. ERT Ree ww Attias od Ere fr Ena Investors Presentation Jan. 2020
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
om I] company overview TAOPING INC. Formerly known as China Information Technology, Inc. (NASDAQ: CNIT).
Slide 4: Investment Highlights
Y = > | INVESTMENT HIGHLIGHTS “We Are Making Advertising and Branding More Targeted, More Affordable, and More Effective for Everyone.”
Slide 5: Capital Structure
© => J CAPITAL STRUCTURE 8000 6000 a sul thls la , Note: The Company's fiscal year end is December 31st TAOPING, INC. (NASDAQ: TAOP) (as of 1/24/2020) 52 Week Range $0.40 - 1.14 Shares Outstanding 41,760,163 Market Cap $29.65 M Stock Price $0.71
Slide 6: Market Opportunities
© => | MARKET OPPORTUNITIES Internet-of-Things is Reinventing the Out-of-Home Advertising Market. (Data Source: China Industry Info Net)
Slide 7: Business Model
Om | BUSINESS MODEL : Nationwide loT Network of Cloud- = based Smart Display Screens Internet Ads y, (@ r r co = & AVBA\A Publish Ads List Screens aaah + (City Partners, Network: Operators Select Distribution Manage Sites @eeee yy yyy Wy Advertisers g maaan Display Screen Owners Consumer Mobile Phon
Slide 8: Smart IoT Screens revenue streams
01 Smart loT Screens + Market and sell smart screen hardware. Internet Ads and a E-Commerce + Revenue share from Internet advertisers when they place ads to Taoping Network, or ads placed with Taoping App. + Earn commission from online retail transactions through online ads and promotions. 02 Cloud-
Slide 9: Growth Strategy
| GROWTH STRATEGY Team Up With Local Entrepreneurs to Expand Taoping Network to more 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 i
Slide 10: What We Provide to Smart Display Screen Owners
© = | What We Provide to Smart Display Screen Owners Multimedia Section Full —— For commercial veieo ads Screen Split Screen »Somonation Full ‘sEiden « Smart Display Screen, and Nationwide Cloud-Based Product and Customer loT Network (Taoping Network) Management Tools 10
Slide 11: Taoping Alliance
| 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 allows members to exchange ideas, share best practices, and sh
Slide 12: What We Provide Advertisers: An Alternative Source of Traffic
What We Provide Advertisers : An alternative Source of Traffic, Targeted Ads TAOPING APP and TAOPING NETWORK TAOPING APP for advertisers Access to TAOPING Network Enabling Advertisers to place and distribute advertisement to any desired screen in any city, from anywhere. 12
Slide 13: TAOPING e-Store
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Slide 14: Functions of Networked Smart Display Screens
om | FUNCTIONS OF NETWORKED SMART DISPLAY SCREENS Brand Showcase Like traditional out of door medias, Taoping screens allows advertisers to showcase brands with vibrant static messages or impactful videos Taoping e-Store Contents on Smart Display Screens are duplicated in Taoping Go (e-Store) Taopin
Slide 15: Taoping New-Media Eco-System
© => [J TAOPING NEW-MEDIA ECO-SYSTEM Taoping Network integrates nationwide high-quality display screens 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
Slide 16: Advertisers
© => |] apvertisers Within the past 12 months, 150+ leading brands have placed advertisments with Taoping Network. 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.
Slide 17: The Management Team
© => ff THE MANAGEMENT TEAM 17
Slide 18: Historical Financial Data: Strategy Change, Phoenix Nirvana
o=| 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 18
Slide 19: 1H 2019 Financial Highlights
| 1H 2019 FINANCIAL HIGHLIGHTS Revenue was $7.1million, an decrease of 38%, compared to $11.4 million for the same period last year. Gross profit as a percentage of revenue was 42.8% for 1H2019, decreased from 46.3% for the same period last year. Net income attributable to the Company was -$1.8 mill
Slide 20: Thanks
TAOPING INC. (NASDAQ: TAOP) THANKS TAOPING | # #7 + @ F For further information, please contact: Taoping Inc. , Dragon Gate Investment Partners LLC Mr. Chang Qiu : Tel: +1(646)-801-2803 Email: chang_qiu@taoping.cn re F Grit f & Email: taop@dgipl.com