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Gateway to China’s safety

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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Page 1: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

Gateway to China’s safety

Page 2: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

FORWARD LOOKING STATEMENTFORWARD 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.

Page 3: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

CHINA’S LEADER IN TOTAL SECURITY & CHINA’S LEADER IN TOTAL SECURITY & SURVEILLANCE SOLUTIONSSURVEILLANCE SOLUTIONS

Page 4: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

As of 31st March 2008

* Excluding all Non-cash expenses

2008 Q1 FINANCIAL HIGHLIGHTS2008 Q1 FINANCIAL HIGHLIGHTS

Adjusted Net Income (in USD M)*

103%

Revenues (in USD M)

86%

Adjusted Diluted EPS (in USD)*

60%

Page 5: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

CORPORATE STRUCTURECORPORATE STRUCTURE

China Security & Surveillance Technology, Inc.China Security & Surveillance Technology, Inc.NYSE: CSR

CSST (PRC) Ltd.

Golden Group(Shenzhen)

Chain Star Investments Ltd(Hong Kong)

CSST(Hong Kong)

Link Billion Investment Ltd(Hong Kong)

Ocean Pacific Technology Ltd(Hong Kong)

Allied Rich Ltd(Hong Kong)

Cheng Feng(Shanghai)

Hongtianzhi Electronics(Shenzhen)

HiEasy (Wuhan)

MinKing (Changzhou)

Tsingvision(Hangzhou)

China Safetech Holdings Ltd (BVI)

Kitt Grant Ltd(Hong Kong)

Sincere On Ltd(Hong Kong)

Sharp eagle (HK) Ltd(Hong Kong)

Stonesonic(Chaozhou)

Longhorn(Shenzhen)

Guanling(Beijing)

100%

Page 6: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

CSR IS UNIQUELY POSITIONED TO BENEFIT CSR IS UNIQUELY POSITIONED TO BENEFIT FROM VERTICAL INTEGRATIONFROM VERTICAL INTEGRATION

Total Solution Provider

Addressing complete Security & Surveillance Needs of our clients

Page 7: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

SUITE OF PRODUCTSSUITE OF PRODUCTS

DVR Systems Camera Systems

Alarm SystemsAccessories

Page 8: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

WIDE-RANGE OF APPLICATIONSWIDE-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

Page 9: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

REVENUE BREAKDOWNREVENUE BREAKDOWN

Revenues by Customers

• Corporate – 60%• Government – 40%

Revenues by Component

• System Integration – 83%• Manufacture – 11.3%• Distribution – 5.7%

NB : As of 31st March 2008

Page 10: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

GROWING INDUSTRYGROWING INDUSTRY

USD BN

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

2004 2005 2006 2007 2008 2009 2010

$4.30 $6.91

$12.08

$18.05

$26.06

$33.18

$43.10

China’s Security Market

Source : China Public Security Guide

Key Market Drivers

Page 11: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

KEY OPPORTUNITIESKEY OPPORTUNITIES

Page 12: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

SIGNIFICANCE OF SAFE CITY PROJECTSSIGNIFICANCE OF SAFE CITY PROJECTS

Page 13: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

The Hong Kong StandardFeb 15, 2006

SURVEILLANCE FOR ENTERTAINMENT VENUESSURVEILLANCE FOR ENTERTAINMENT VENUES

Page 14: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

COMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGE

One-Stop-Shop

Large SalesNetwork

ComprehensiveProduct Portfolio

Approvals & Permits

Leadership Position

Page 15: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

COMPETITIVE ENVIRONMENTCOMPETITIVE ENVIRONMENT

More than 15,000 vendors in the market

3 Levels of competition Characteristics

None are vertically integratedNone are vertically integrated

Page 16: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

ACQUISITIONSACQUISITIONS

Date Company Principle Operations

Apr 2008 Beijing Aurine Divine (“Guanling”) Leading security equipment distributor in the Northeast region (Panasonic, Axis Communication, Samsung, etc)

Apr 2008 Stonesonic Leading monitoring equipment hardware manufacturer

Apr 2008 Longhorn Security Security alarm systems manufacturer

Jul 2007 Hangzhou Tsingvision Solution provider of intelligent management platform for network video

Jun 2007 Changzhou Minking Leading manufacturer of high-speed dome cameras

May 2007 HiEasy Provider of advance compression technology

Apr 2007 Shenzhen Hongtianzhi Leading digital camera manufacturer

Sept 2006 Ji’an Golden An Ke TechnologyShenzhen Golden Guangdian TechnologyShenyang Golden Digital TechnologyJiangxi Golden Digital Technology

Equipment distribution (CSST only acquired the Intangible Assets of all these companies).

Jul 2006 Shanghai Cheng Feng Leading security & surveillance software developer and DVR manufacturer

Dec 2005 Shenzhen Yuan Da Wei Si Engaged in sales and development of security & surveillance systems(CSST only acquired the Intangible and tangible Assets)

Closed

Wandaiheng Industrial Park in Shenzhen

Shenzhen Jin Lin Technology Traffic Management System provider

Alean Shenzhen Security Access control systems manufacturer

Pending

Page 17: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

PARTNERHIPSPARTNERHIPS

Date Company Principle Operations

Mar 2008 Mobotix AG IP Camera provider

Mar 2008 Shanghai LG Security systems provider

Jan 2008 Beijing DM System Integrator in Beijing

Sept 2007 Chuangguan System Integrator in Shenzhen

Closed

Yingke System Integrator in the Northeast region

Nantun Security consultancy and training service providerPending

Page 18: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

OVERALL STRATEGYOVERALL STRATEGY

Higher Margins

Recurring Revenues

Greater Visibility

Phase 1 Phase 2 Phase 3

Page 19: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

SEGMENTATION OF BUSINESSSEGMENTATION OF BUSINESS

5 Business Segments

Page 20: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

Notes:• Figures in USD millions

• 2004 : Child Van Wagoner & Bradshaw, PLLC | 2005 - 2007: GHP Horwath

FINANCIALSFINANCIALS

Organic Growth (% of Revenues)

93%

79%

89%

Organic Acquired

Revenues

CAGR: 97%

Page 21: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

Notes:• Figures in USD millions

• 2004 : Child Van Wagoner & Bradshaw, PLLC | 2005 - 2007: GHP Horwath

FINANCIALSFINANCIALS

$0.35 $0.41 $0.89 $1.20 $0.32Adjusted EPS

$0.34 $0.39 $0.86 $0.91 $0.11USGAAP EPS

Gross Profits

CAGR: 76%

Net Income

Net Income (USGAAP) Net Income (Adjusted)

Net Inco

me (Adjuste

d) CAGR: 7

7%

Page 22: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

FINANCIALSFINANCIALS

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

Page 23: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

FINANCIAL GUIDANCEFINANCIAL GUIDANCE

* NB : Cash earnings

Key Financials Guidance

Revenues

Adjusted Net Income

Adjusted EPS*

FY 2008 Q2, 2008

$70 - $76

$1.59 - $1.76

$380 - $400

$15.9 - $16.5

$0.36 - $0.38

$85 - $87

USDMM

Page 24: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

KEY PERSONELKEY PERSONEL

Key Management Team

Mr. Guoshen TuChief Executive Officer

• Successful entrepreneur with proven track record• Founder and major shareholder

Mr. Terence YapChief 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 QianChief Operating Officer

• Founder of Tsingvision Intelligence System Co. Ltd• Senior Engineer of CETC Institute 52

Mr. Zongxin XieChief Audit Executive

• More than 15 years experience in China banking industry• Audit and regulatory compliance

Dr. Ruimin HuHead of R&D

• Member of Wuhan University Academic Association• PhD from Central China Scientific Technology University

Independent Board of Directors

Mr. Peter MakIndependent 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 LiIndependent 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 ShiverIndependent Director

• Chairman of Compensation Committee• Over 30 years experience in the security and communication solutions field.

Page 25: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

INVESTMENT HIGHLIGHTSINVESTMENT HIGHLIGHTS

Page 26: Gateway to China’s safety. FORWARD LOOKING STATEMENT The statements made in this presentation are forward- looking statements. Risk factors that could

THANK YOUTHANK YOU