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Jingwei International Limited

Jingwei International Limited. Investor Presentation. Roth Conference November 2007.

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Jingwei International Limited

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  1. Jingwei International Limited Investor Presentation Roth Conference November 2007

  2. This presentation contains "forward-looking statements" within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future international, national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products and services, marketing existing products and services, customer acceptance of existing and new products and services and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation. Safe Harbor Statement

  3. George (Jianguo) Du President, GM and Chairman • Co-founded Jingwei’s predecessor paging company in 1993 • Vice Chairman and Executive Deputy GM of China Wireless Technologies; IPO on Hong Kong Stock Exchange in 2004 • Youngest Deputy Director of Shanghai 710 Research Institute • MBA, Duke University Regis Kwong Chief Executive Officer • 20+ years experience with leading global telecom services providers • Managing Director, China Consolidated Investments • Founder, Terremark Asia, a subsidiary of Terremark Worldwide (AMEX: TWW) • MBA, Rutgers University Company Overview Key Facts Financial Overview • HQ: Shenzhen, China • Employees: 305 • Service Offering: 17 software platforms including OSS, BSS, WVAS and Data Mining primarily for China’s mobile telecommunications industry • Major Customers: China Mobile, China Netcom, China Unicom, Huabei Power • Nine Months Ended Sep 30, 2007 • Revenue: $16.2m • 83% over prior period • Net income: $5.2m • 51% over prior period • Projected 2007 results • Revenue: $23.0m • 69% y-o-y • Net income: $8.5 mm • 123% y-o-y • Net margin of 37% Capitalization Stock price $7.95 Fully diluted shares 17.0 Equity Value 135 + Total Debt - + Minority Interest $6.6 - Cash & Cash Equivs $13.0 Total Enterprise Value $128.8 TEV/Revenue 5.6x P/E 15.9x

  4. Shenzhen Yulong Communications • Co-founded by George Du in 1993 • Leading paging systems provider in China • 70 million subscribers China Wireless Technologies (Hardware Assets) Jingwei (Software Assets) • IPO on Hong Kong Stock Exchange in December 2004 (ticker: 2369) • ~$100 million market capitalization • Software services platform • Data mining and analysis • Retained ownership of consumer database History of Jingwei • Jingwei was formed to leverage software services expertise derived from Shenzhen Yulong’s dominance in China’s paging industry

  5. Jingwei Today 300 million consumer profiles today Leading technology data mining and targeted marketing service provider Software services to the telecom sector Data mining services and analysis Leverage reputation and experience into other sectors Proprietary database contains 300 million consumer profiles Jingwei 5

  6. Software Services Overview • Provide comprehensive billing systems, provisioning solutions and decision support and customer relationship management systems • Create and manage white-label wireless value-added services (“WVAS”) platform for telecom customers • Leverage reputation and experience into other sectors Products & Services Revenue Model Customers • Operation support services • Revenue assurance • Billing & accounting • Online collection • Anti-fraud • Business support services • Data warehousing • Customer-turn prediction • Customer classification • Software services are typically sold as a package • Initial license fee between $50,000 and $500,000 • 10-15% recurring annual maintenance fee • Streamline back-office operations • Better manage customer relationships • Achieve increased revenue and profitability • Primarily telecom focused • Expanding into other sectors

  7. Data Mining Services & Analysis Overview • Provide comprehensive data mining services and analysis through proprietary database • Assist in the promotion and marketing of new products and services through telemarketing, direct marketing and WVAS • Proprietary database now contains 300 million consumer profiles • Key component of future growth strategy Products & Services Revenue Model Customers • Market segmentation • Customer churn • Fraud detection • Direct marketing • Interactive marketing • Market-bases analysis • Trend analysis • Sold on a per project basis • Share in revenues derived from marketing and promotion activities • Assists in improving product development and marketing • Helps identify new market opportunities, trends and target audiences • Delivers marketing messages to target consumers • Achieve increased operational efficiency, revenues and profitability • Applicable to a broad range of industries

  8. Incremental Growth Opportunity: New Media Jingwei Media provides targeted advertising with measurable results • Foundation of the Business • Built on data base for targeted marketing via mobile phone • Call centers for customer conversion • Mobile phone advertising with Push WAP, SMS and mobile banner ads • Outdoor digital display with interactive message board and real time ad • Location based advertising 8

  9. Key Customers • Well-established, strong relationships with leading telecom operators • Exclusive arrangements with China Mobile and China Unicom for software and data mining services; manage third-party software • Successfully growing customer base for its data mining services and analysis • Recently added customers in the automobile, financial services, retail and utility industries • In negotiations with China Central Television (CCTV) • 8 provinces (exclusive) • 5 provinces (manage) • 3 provinces (exclusive) • 3 provinces (manage) • 8 provinces • 5 provinces China Broadcast China Rail Com • 5 provinces • 1 province

  10. 2006 Revenue by Major Customer China Mobile China Mobile China Netcom Huabei Power HQ China Mobile

  11. Market Opportunity • China is the world’s fastest growing economy with annual growth exceeding 8% • Telecom industry revenues grew 10.2% to $82 billion in 2006 • From 2002-05, wireless and fixed line subscriptions grew at a 23.6% and 17.8% CAGR, respectively • China has approximately 500 million Internet subscribers • Mobile-centric; mobile subscribers outnumber fixed subscribers by a factor of 4 to 1 • Companies are increasingly using data mining services and analysis to enable them to better understand and serve their customers China GDP($ in trillions) Source: National Bureau of Statistics of China Wireless Telecom/Internet Subs.(in millions) Source: China Ministry of Information Industry

  12. Growth Strategy Jingwei has implemented strategies that will continue to drivethe rapid adoption of its products and services Increase Focus on Data Mining Continue Diversification of Customer Base Expand Geographic Presence Capitalize on Cross-sellingOpportunities Meet Evolving Market Demands: New Media Opportunities Page 12

  13. Online Shopping Portal Site Near-term Growth Opportunities Jingwei has identified several specific initiatives to support 2007 growth IPTV and DTV Software Services • Huawei is a leading international provider of telecom equipment • Offers services to support Huawei’s IPTV and DTV services in 5 provinces • Opportunity to have broad deployment in China in two years Data Mining for Cable Industry • CCTV is a leading Chinese cable company serving 130 million subscribers • In negotiations to provide database marketing services to help increase subscriptions for CCTV’s digital channel offerings • Currently provides online shopping for all China Unicom products including music download and mobile accessories • Will include general merchandising in the future and will sell advertising on the site Missed Call Notification System • Recently introduced system notifies caller when busy line becomes available • Deployed on a trial basis in Henan province with China Netcom • Jingwei will share in the incremental revenue derived from connected calls

  14. Strong Top Line Growth 60.8% CAGR $23.0 $13.6 $8.9

  15. Enhanced Projected Operating Profitability Nine Months Ended September 30, 2007: Revenue: $16.2 Net Income: $5.2

  16. Competitive Landscape Unlike its competitors, Jingwei has partnered directly with China Mobile and China Unicom to create and manage WVAS for them to offer to their customers under their own brands • Software Services • AsiaInfo Holdings (NasdaqNM: ASIA) • Provider of business support system/operating support systems in China • Huawei • Provides OSS and communications hardware systems to the telecom operators • Datong • Provides telecom system solutions to mobile operators including MVAS applications. • Data Mining • Sinotrust • Provides data mining analysis and consulting services to manufacturers and service industries. Also help its customers to market products based on data mining results. • NCR (NYSE: NCR) • Provides data warehousing solutions for customers worldwide that combine software, data mining and analytical applications; hardware; and consulting and support services

  17. Recent Events • Data center expansion and proprietary consumer database • New data center’s consumer database up to 300 million and planned to hit 400 million consumer profiles • Transition into digital media • Started providing digital advertising through its exclusive contract with China Unicom • Work with China Mobile to provide advertising services • Initiated a R&D center with Qinghua University to build a mobile advertising platform • Expanding data mining outside of the telecom sector • Started to provide data marketing service for targeted advertising through mobile handsets for real estate, utility, fashion, financials, retail and other sectors • Geographic expansion • Opened 5 new branches since June (Guizhou, Shandong, Shenzhen, Tianjin, Jiangsu) • Opened Beijing office to support the headquarters of China Mobile and China Unicom, a center in Guangdong, and a new call center in Fujian

  18. Investment Highlights Compelling data mining and targeted marketing opportunity in the world’s fastest growing economy Experienced and proven management team with strong ties to China’s telecommunications industry Leading software services platform allows for incremental data mining sales to existing customers Clearly defined growth strategy via data mining and new products like new media Significant progress made in data mining in the past six months Strong recent & anticipated financial performance

  19. For More Information Contact: at (203) 682-8200

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