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Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could.

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Presentation on theme: "Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could."— Presentation transcript:

1 Gateway to China’s safety

2 FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risk. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk and other factor detailed in the Company's reports filed with the Securities and Exchange Commission. China Security & Surveillance Technology, Inc. undertakes no duty to update those forward-looking statements.

3 CHINA’S LEADER IN TOTAL SECURITY & SURVEILLANCE SOLUTIONS Founded in 2001 Headquarters: Shenzhen, China No. of employees >3,000 FY 2007 Rev : USD240M FY 2008 Guidance Rev : USD380M- $400M Key Facts Manufacture of Security and Surveillance Products System Integration and installation Distribution of products in China Key Businesses Government entities Non-profit organizations Commercial entities Customers OTCBB : November 2005 NYSE : 29th October, 2007 US Listing History

4 As of 31 st March 2008 * Excluding all Non-cash expenses 2008 Q1 FINANCIAL HIGHLIGHTS Adjusted Net Income (in USD M)* 103% Revenues (in USD M) 86% Adjusted Diluted EPS (in USD)* 60%

5 CORPORATE STRUCTURE China Security & Surveillance Technology, Inc. NYSE: CSR China Security & Surveillance Technology, Inc. NYSE: CSR CSST (PRC) Ltd. Golden Group (Shenzhen) Golden Group (Shenzhen) Chain Star Investments Ltd (Hong Kong) Chain Star Investments Ltd (Hong Kong) CSST (Hong Kong) CSST (Hong Kong) Link Billion Investment Ltd (Hong Kong) Link Billion Investment Ltd (Hong Kong) Ocean Pacific Technology Ltd (Hong Kong) Ocean Pacific Technology Ltd (Hong Kong) Allied Rich Ltd (Hong Kong) Allied Rich Ltd (Hong Kong) Cheng Feng (Shanghai) Cheng Feng (Shanghai) Hongtianzhi Electronics (Shenzhen) Hongtianzhi Electronics (Shenzhen) HiEasy (Wuhan) HiEasy (Wuhan) MinKing (Changzhou) MinKing (Changzhou) Tsingvision (Hangzhou) Tsingvision (Hangzhou) China Safetech Holdings Ltd (BVI) Kitt Grant Ltd (Hong Kong) Kitt Grant Ltd (Hong Kong) Sincere On Ltd (Hong Kong) Sincere On Ltd (Hong Kong) Sharp eagle (HK) Ltd (Hong Kong) Sharp eagle (HK) Ltd (Hong Kong) Stonesonic (Chaozhou) Stonesonic (Chaozhou) Longhorn (Shenzhen) Longhorn (Shenzhen) Guanling (Beijing) Guanling (Beijing) 100%

6 CSR IS UNIQUELY POSITIONED TO BENEFIT FROM VERTICAL INTEGRATION Design & MfgDistributionInstallationMaintenanceMonitor Total Solution Provider Addressing complete Security & Surveillance Needs of our clients

7 SUITE OF PRODUCTS DVR SystemsCamera Systems Alarm SystemsAccessories

8 WIDE-RANGE OF APPLICATIONS Transportation/Public Areas Traffic monitoring Bus stations Airports Shopping centres Parks Tourist destinations Gov’t/Non-Profit Government buildings Schools Hospitals Police stations Border controls Sea ports Others Factories Industrial applications Entertainment venues Exhibition halls Commercial/Residential Commercial buildings Banks Hotels shopping malls Residential estates

9 REVENUE BREAKDOWN Revenues by Customers Corporate – 60% Government – 40% Revenues by Component System Integration – 83% Manufacture – 11.3% Distribution – 5.7% NB : As of 31 st March 2008

10 GROWING INDUSTRY USD BN China’s Security Market Source : China Public Security Guide Key Market Drivers

11 KEY OPPORTUNITIES

12 Government drivenGlobal Incidents have fuelled concernsImproving Security & StabilityNationwide deployment over 5 – 10 years Surveillance systems for main public areas, government buildings, traffic junctions, etc Cities decide on the size and extent of projects Approx. 660 citiesContract per city approx. $30M (in phases)Decentralized decision Approx. $25 B Addressable Market size SIGNIFICANCE OF SAFE CITY PROJECTS

13 The Hong Kong Standard Feb 15, 2006 SURVEILLANCE FOR ENTERTAINMENT VENUES

14 COMPETITIVE ADVANTAGE One-Stop-Shop Large Sales Network Large Sales Network Comprehensive Product Portfolio Comprehensive Product Portfolio Approvals & Permits Approvals & Permits World Class R&D World Class R&D Leadership Position

15 COMPETITIVE ENVIRONMENT Manufacturers Local Distributors Local System Integrators More than 15,000 vendors in the market 3 Levels of competition Characteristics Manufacturers Strong technical capabilities Limited sales network Regional Distributors Lacks scale Retail sales of security products No manufacturing capabilities Local System Integrators Lacks scale Good local relations Little technical know-how None are vertically integrated

16 ACQUISITIONS DateCompanyPrinciple Operations Apr 2008Beijing Aurine Divine (“Guanling”)Leading security equipment distributor in the Northeast region (Panasonic, Axis Communication, Samsung, etc) Apr 2008StonesonicLeading monitoring equipment hardware manufacturer Apr 2008Longhorn SecuritySecurity alarm systems manufacturer Jul 2007Hangzhou TsingvisionSolution provider of intelligent management platform for network video Jun 2007Changzhou MinkingLeading manufacturer of high-speed dome cameras May 2007HiEasyProvider of advance compression technology Apr 2007Shenzhen HongtianzhiLeading digital camera manufacturer Sept 2006Ji’an Golden An Ke Technology Shenzhen Golden Guangdian Technology Shenyang Golden Digital Technology Jiangxi Golden Digital Technology Equipment distribution (CSST only acquired the Intangible Assets of all these companies). Jul 2006Shanghai Cheng FengLeading security & surveillance software developer and DVR manufacturer Dec 2005Shenzhen Yuan Da Wei SiEngaged in sales and development of security & surveillance systems (CSST only acquired the Intangible and tangible Assets) Closed WandaihengIndustrial Park in Shenzhen Shenzhen Jin Lin TechnologyTraffic Management System provider Alean ShenzhenSecurity Access control systems manufacturer Pending

17 PARTNERHIPS DateCompanyPrinciple Operations Mar 2008Mobotix AGIP Camera provider Mar 2008Shanghai LGSecurity systems provider Jan 2008Beijing DMSystem Integrator in Beijing Sept 2007ChuangguanSystem Integrator in Shenzhen Closed YingkeSystem Integrator in the Northeast region NantunSecurity consultancy and training service provider Pending

18 OVERALL STRATEGY Higher Margins Recurring Revenues Greater Visibility Phase 1Phase 2Phase 3

19 SEGMENTATION OF BUSINESS 5 Business Segments Manufacture OEM and Manufacture of Security related products Software Solutions Development of security related software applications System Integration Total solution installations Security Services Security Alarm & Monitoring services Product Distribution Local & foreign brand distribution in China

20 Notes: Figures in USD millions 2004 : Child Van Wagoner & Bradshaw, PLLC | : GHP HorwathFINANCIALS Organic Growth (% of Revenues) 93% 79% 89% OrganicAcquired Revenues CAGR: 97%

21 Notes: Figures in USD millions 2004 : Child Van Wagoner & Bradshaw, PLLC | : GHP HorwathFINANCIALS $0.35$0.41$0.89$1.20$0.32 Adjusted EPS $0.34$0.39$0.86$0.91$0.11 USGAAP EPS Gross Profits CAGR: 76% Net Income Net Income (USGAAP)Net Income (Adjusted) Net Income (Adjusted) CAGR: 77%

22 FINANCIALS Key Balance Sheet Items Cash and cash equivalents Working Capital Total Assets Total Liabilities FY 2006 FY 2007 Q1, 2008 $31.0 $63.5 $114.4 $159.7 $24.5 $377.4 $177.6 $89.1 $165.8 $395.8 $177.8 $77.1 USDMM Balance Sheet Highlights Revenues increased 87% Adjusted Net Income increased 103%* Gross Profits Increased 120% Income from Operations Increased 72.4% From $38.4M to $71.8M From $6.76M to $13.7M From $10.1M to $22.3M From 26.3% to 31.0% of revenues From $6.5M to $$11.1M Q1, 2008 Financial Highlights (YoY) * NB: Adjusted for non-cash expenses such as D&A, EIP and the redemption accretion on the convertible notes

23 FINANCIAL GUIDANCE * NB : Cash earnings Key Financials Guidance Revenues Adjusted Net Income Adjusted EPS* FY 2008Q2, 2008 $70 - $76 $ $1.76 $380 - $400 $ $16.5 $ $0.38 $85 - $87 USDMM

24 KEY PERSONEL Key Management Team Mr. Guoshen Tu Chief Executive Officer Mr. Guoshen Tu Chief Executive Officer Successful entrepreneur with proven track record Founder and major shareholder Mr. Terence Yap Chief Financial Officer Mr. Terence Yap Chief Financial Officer CFO since January 2007, Director since March 2006 & Vice Chairman since May 2006 Previously held key management positions in other multi-national companies Mr. Daiyou Qian Chief Operating Officer Mr. Daiyou Qian Chief Operating Officer Founder of Tsingvision Intelligence System Co. Ltd Senior Engineer of CETC Institute 52 Mr. Zongxin Xie Chief Audit Executive Mr. Zongxin Xie Chief Audit Executive More than 15 years experience in China banking industry Audit and regulatory compliance Dr. Ruimin Hu Head of R&D Dr. Ruimin Hu Head of R&D Member of Wuhan University Academic Association PhD from Central China Scientific Technology University Independent Board of Directors Mr. Peter Mak Independent Director Mr. Peter Mak Independent Director Chairman of Audit Committee Previously served as the Snr Managing Partner of Arthur Anderson South China Significant board experience with other leading companies in Asia Mr. Runshen Li Independent Director Mr. Runshen Li Independent Director Chairman of Corporate Governance and Nominating Committee Served in several high level positions within China’s Ministry of Public Security More than 40 years experience in China’s security industry Mr. Robert Shiver Independent Director Mr. Robert Shiver Independent Director Chairman of Compensation Committee Over 30 years experience in the security and communication solutions field.

25 Significant Growing MarketExperienced Professional Management TeamSecurity & Surveillance “Pure Play”Significant Revenues & Earnings GrowthClear Domestic Leader in a Highly Fragmented market INVESTMENT HIGHLIGHTS

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