EX-99.1 2 dex991.htm SLIDE PRESENTATION Slide Presentation
IBSG International
Investor Presentation
(“IBIN”-OTCBB)
PROVIDING BUSINESSES WITH A GATEWAY TO WORLD COMMERCE
November 17, 2008
Exhibit 99.1


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Statements
in
this
presentation
that
are
not
descriptions
of
historical
facts
are
forward-looking
statements
relating
to
future
events,
and
as
such
all
forward-looking
statements
are
made
pursuant
to
the
Securities
Litigation
Reform
Act
of
1995.
Statements
may
contain
certain
forward-looking
statements
pertaining
to
future
anticipated
or
projected
plans,
performance
and
developments,
as
well
as
other
statements
relating
to
future
operations
and
results.
Any
statements
in
this
presentation
that
are
not
statements
of
historical
fact
may
be
considered
to
be
forward-looking
statements.
Words
such
as
"may,"
"will,"
"expect,"
"believe,"
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"estimate,"
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"seek,"
"attempt,"
or
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of
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or
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forward-looking
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with
the
uncertainty
of
future
financial
results,
additional
financing
requirements,
development
of
new
products,
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impact
of
competitive
products
or
pricing,
technological
changes,
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effect
of
economic
conditions
and
other
uncertainties
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from
time
to
time
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filed
with
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Securities
and
Exchange
Commission.
There
can
be
no
assurance
that
our
actual
results
will
not
differ
materially
from
expectations
and
other
factors
more
fully
described
in
our
public
filings
with
the
U.S.
Securities
and
Exchange
Commission,
which
can
be
reviewed
at
www.sec.gov.
2


IBSG In Brief
IBSG International is a leading developer and marketer of a robust e-commerce
platform, that provides a cost effective Internet commerce solution for
government
agencies,
large business
organizations,
and
Small
and
Medium-
sized Enterprises (“SME”), particularly in developing markets.
Historic Organic Revenue CAGR ~ 64% (since 2004)
Profitable since 2Q04
Cash Flow Positive since 3Q05
2006  Revenue of $ 7.6m with EPS of $0.10
2007  Revenue of $14.6m with EPS of $0.58
2008  Guidance
of
$18-22m
with
EPS
range
of
($0.50
-
$0.60)¹
Blue Chip client base includes World Bank and South Africa Department of
Trade and Industry
Cash on hand $7.38 million; Cash per share $.615 Book value of $2.60 per
share
Stock Symbol: (“IBIN”-OTC)
Shares Outstanding: 12 million
Approximate market cap: $12 million
¹Based on existing business
3
3


BizWorld
Pro
-
A
Comprehensive
International Commerce Platform
The
BizWorld
Pro
Platform
provides
a
comprehensive,
international
Internet-
based
Commerce
Platform
that
operates
as
a
digital
service
center
for
any
government agency interacting with small to medium enterprises (SMEs).
BizWorld
Pro  
provides
over
9,500
functions
and
is
comprised
of
more
than
14,000 active pages.  The platform provides SMEs with turn-key functionality:
Digital
e-Commerce
Exchange
with
Website
Creation
&
Digital
Catalogue
Accounting/Fiscal
Management
Centralized
Tender/Bid
Centre
&
Procurement
Management
Investor-Investor
Seeker
Transaction
Functions
Seminar/Long
Distance
Learning
Video
Library
4
4


Key Benefits of BizWorld
Pr
Implementation of BizWorld
Pro
enables Government Agencies to:
Stimulate domestic, regional and international SME commerce
Encourage Internet connectivity and cell/PDA services
Facilitates increase investments into regional businesses
Creates a centralized system for establishing an SME online
Provide a digital service center for businesses
Reduce unemployment through sustained business community
Revenue generating opportunities for businesses, sub-licensees, and master
license holder
5


A Major Market Opportunity
Exists for BizWorld
Pro
The EU Market alone represents a $28B Euro opportunity¹
Growth of SMEs
worldwide
Support of World agencies and Government entities
Low
cost
and
flexibility
provided
by
BizWorld
Pro™
Turnkey
internet
solutions
for
SMEs
not
available
to
date
EUROPE
ASIA
AFRICA
SMEs
CHINA
US
*Source: Based on EU budget
6
Growth
Markets
Accelerating Trade
6


Management & Board
Dr.
Michael
Rivers,
CEO
&
Board
Chairman,
is
the
founder
of
IBSG
and
has
over 24 years experience in the field of business development including
supporting the development of small-to-mid-size businesses, and establishing
digital business services with a diverse group of business community entities.
Dr. Rivers has served as an expert & guest speaker for U.S. Dept. of
Commerce, the Dept. of Labor as well as several international countries as an
expert
in
Internet
commerce
strategies.
Dr.
Rivers
holds
a
doctorate
in
Clinical
Psychology through the Washington D.C. consortium of universities, and an
undergraduate degree in the diversified studies of Chemistry, Biology and
Psychology.
Mr.
Geoffrey
Birch,
Interim
CFO
&
Board
Member,
was
in
plastics
and
pharmaceuticals for over 30 years which included manufacturing and
distribution.
Mr.
Birch
developed
a
specialist
European
facility
for
medicated
over-the-counter
hair treatments which was eventually purchased by SSL
International, a UK publicly quoted company in the late 1990s. Mr. Birch was a
board member of several UK Venture capital firms investing in young UK
companies with identifiable growth potential in the areas of technology. He is
currently chairman of Sylvrey
Ltd, an investment company.
Digital
Business
Services
Venture
Capital
7
7


Board Members
Mr.
Jeffrey
Willmott,
Board
Member,
is
a
senior
level
executive
with
over
35
years experience in diverse industries, both domestic and international in
scope. Mr. Willmott
joined investment banking firm of Dillon Read & Company
(now UBS) in 1991, spending the next 8 years in financial services business
development and marketing. He is on the Adjunct faculty of both NY University
Graduate Management Program and Fordham University Graduate School of
Business. He holds a Bachelors and an MBA in marketing.
Dr.
Alexander
S.
Preker,
Board
Member,
is
the
Chief
Economist,
Africa
Region
(AFTH2), World Bank and Member of Global Task Force. He has also
served as  the Sector Leader & Member of Corporate Management Group
(AFTH2), World Bank.
Dr. Preker
has completed the Executive Development
Program,
Harvard
University,
US;
earned
a
PhD,
Economics,
London
School
of
Economics and Political Science, London, UK; Diploma, Medical Law and
Ethics, King's College, London, Masters of Business Administration (audit),
McGill,
Montreal,
Quebec,
Canada;
Dr.
Preker
is
currently
an
Adjunct
Associate Professor, Wager School, New York University, New York, NY.
8
8
Global
Economist
Industry
Experience


Business Model
IBIN partners with the government entity that purchases the
Master
License
and
aligns
its’
interests
with
those
of
the
Master
License
Holder
by
sharing revenue generated from Satellite Licenses and Small Medium Enterprises
(SMEs) Subscription Revenues
are
based
upon
the
number
of
SMEs
the
platform
will
support.  Under GAAP revenue recognition criteria, the Company recognizes:
65% of the Master & Satellite License fees as Revenue in the quarter they are executed
35% of the Master & Satellite License fees as “Deferred Revenue”
100% of unpaid Fees are recorded as accounts receivable at the time of issuance.
.
Year 1:
Master License Fee
Years 2-5:
Maintenance License Fee
(typical for government agencies)
The Master License Holder sells the Satellite Licenses to other agencies
IBIN shares Satellite License revenue with the Master License Holder, 90% / 10%  split
.
End User (individual business) pay subscription fees of no less than $20/month. 
IBIN splits the subscription revenue with the Master License holder 50%/50%
Revenue Sharing
Master License Contracts
Master License Contract
Satellite Licenses
Subscription Fees
9
9


How We Help Our Clients
Expand Their Business
The South Africa Department of
The South Africa Department of
Trade and Industry
Trade and Industry
10


How We Help Our Clients Do
Business, cont.
IBSG will Provide The 4M+ SMEs
in South Africa
with an SME Digital Commerce Trading and
Industry (MTI)
BizWorld
Pro will serve as the core trading and
procurement management platform for the project
The platform will include:
Full on-line E-commerce and transactional
capabilities for all SMEs
on the platform
On-Line SME registration
Government and large corporation access to
SME’s
via the platform for tender and bid
management and tracking
Real time market analysis and impact reports
Full on-line financial management and
inventory controls
On-line seminar delivery
On-line employment to support staff
requirements of growing SMEs
and job
searching for individuals
11


Example: South Africa Department of Trade & Industry (“DTI”)
Currently selling satellite licenses intra-government. 
Implemented projects grow exponentially via Satellite Licenses and
SME Subscription Revenue
Viral Distribution Channel
Deputy Ministries
National Departments
Provincial Governments
Small Business Development Centers
Business Associations
Universities
Master License
Satellite Licenses
DTI purchases Master
License
Small to Medium
Enterprises “SMEs”
12


IBSG Office Locations
Celebration,
Florida
Sandton
City
South Africa
Berkeley Square, London
United Kingdom
Celebration, Florida
And
Ahmadabad, India
51 employees world wide
Employees in 4 countries currently
13


Financial Review
14


Revenue Streams: All Contracts
Are Generally 4-5 Years
Master
License
fee:
Yr1
License
fee;
Yrs
2-4
(5)
License
Maintenance
fees
Satellite License fees; Same as above IBSGI; 90%-Master License holder 10%
End
User
(individual
business)
Subscription
fees;
IBSGI;
approx.
50%-License
holder
50%. No less than $20/month/End User (E20/month in Europe)
Recurring Revenue Streams:
Additional Satellite License sales
License Maintenance fees Yrs 2-4 (5)
Monthly
End
User
Subscription
fees-
projected
to
be
$600,000-$700,000
by
the
end of 2008 and grow to a projected $2.5-$2.75million per month by the end of
2009
All Master License Holders are with Government Agencies
15


0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
1st  Q 2008
2nd Q 2008
3rd Q 2008
4th Q 2008
2007
2008
2008 Financials
For the 6 Months Ended June 30, the Company reported
Revenue of $9.2m with $2.4m in Net Income and EPS of $0.25
50% Y/Y revenue growth.
1Q08 Revenue of $4.8m with $1.1m in Net Income and EPS of $0.12
2Q08 Revenue of $4.4m with $1.3m in net income and EPS of $0.13
16


0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
1st  Q 2008
2nd Q 2008
3rd Q 2008
4th Q 2008
Revenues
Cash In
Cash Collections vs. Revenue
17
*Net before taxes; Cash in
Outpaced by new revenue


SA-DTI
Contract Revenue
Performance
(2.2 Million SMES Possible)
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
2007
2008*
2009*
2010*
License Fees
SME Sub. Fees
18


2008 -
2009 Strategic Plan
Expansion: New marketing offices in Eastern Europe, Malaysia and
South America
Expand into United States
Complete move to listed stock exchange
Develop SME Digital Commerce Platform as international vehicle
Organic Growth Opportunities:
Expand World Bank Strategic Relationship
Expand Master License Agreements in African Nations
Expand International Distribution Channels into the EU & South
America with additional Master License Agreements
Increase Satellite License penetration among existing clients
Increase individual SME Footprint
Increase SME Subscriber Penetration
19


Country
Potential Lifetime Revenue
Kenya
$39,000,000
World Bank (*3)
A. Ghana
B  Nigeria
C  Liberia
$45,000,000
South Africa
$52,000,000
TOTAL
$136, 000,000*
Potential Revenue from Existing
International Customers
*Potential Revenue (over a 4 year term) includes:
1.
Master License Revenue
2.
Maintenance License Revenue
3.
Satellite License Revenue
4.
SME subscription revenue
20


Annual Revenue Growth
21


Successful Financial Model
FY06A
FY07A
FY08E
Revenue
$7.6m
$14.6m
$18-22m
Net Income
$0.69m
$4.86m
$10-12m     
EPS
$0.10
$0.57
$0.50-.60*
SME Subscribers (12/31)
27K
60K
22
*Fully Taxed


Investment Summary
3-year Revenue CAGR ~ 64%
Profitable since 2Q04
Cash Flow Positive since 3Q05
Recurring Revenue Streams:
Additional Satellite License Sales
License Maintenance fees Yrs 2-5
SME Subscription Fees
Low Current Valuations
PE Multiples
1.75x  FY07 EPS of $0.57
1.75x  FY08 EPS of $.50-$0.60 (Guidance Mean)
0.63x  FY09 EPS of $1.60 (Guidance Mean)
PEG Multiples
0.37x  FY07 EPS of $0.57
1.37x  FY08 EPS of $0.60 (Guidance Mean)
Zero Debt
Seasoned Management
Strong Alignment with Shareholders: Management (Friends of Management) owns ~
42% of Shares Outstanding
23


Contacts
24
Company Contact:
IBSG International
Dr. Michael Rivers, CEO
Tel: 321
-939-6321
Email:
mrivers@ibsgi.com
Website:
www.ibsgi.com
Investor Contact:
Strategic Growth International, Inc.
Stan Altschuler/Richard Cooper
Tel: 212
-838-1444
Email:
saltschuler@sgi-ir.com/
rcooper@sgi-ir.com
Website:
www.sgi-ir.com