Advanced IOT Capabilities
- 1. www.omo.systems.us Advanced IoT Capabilities for the Fast-Growth Home Security and Smart Home Markets
- 2. www.omo.systems.us ОМО: GLOBAL COMPANY 2 Targeting the $45B US Security and Smart Home Marketplace Advanced technology development (HW/SW/ Cloud) team — 70 members Fast success — 50k users in < 2 years — $13M in revenue* Interested in Convertible Note $2M to expand to US Market Focus on 3 Distinct Markets ● Provider Market (Cable / Internet) ● DIY (Do-it-yourself) ● White Label Partner Market Smart Home Ecosystem WE ARE FOCUSED TO BECOME THE GLOBAL LEADER OF ADVANCED TECHNOLOGIES IN THE HOME PROVIDING INFORMATION, SAFETY AND SECURITY.
- 3. Problem: Providers have connected the world to the network — cable, Internet, and TV. Connectivity capabilities are exhausted — the Internet of People is over. Era of IoT with unlimited connectivity is now. No Enterprise IoT Solution for cable providers in the world. Solution: OMO enables providers the ability to build a wireless IoT network covering an entire building with individual and common IoT services. Common services create the network effect with significant penetration and IoT services with data and intelligence in real-time. Providers continue regular business model — building/servicing the network (additional revenue stream). Business model: Monthly fee revenue share: OMO receives subscription fee paid from providers of IoT services. OMO manufactures and sells OMO IoT Network Equipment to providers for IoT network. Subscription provides recurring revenue stream for OMO and Provider (5+ years). Cable and Internet providers build network, utilize OMO equipment as white label — high margin fees. Scalability: More than 10 K providers in the world connect 1 billion (+) households. Providers have customers requiring smart home and home security solutions. Providers and OMO share the same subscriber model for all providers globally. OMO can quickly and affordably bring new products and capabilities quickly increasing monthly subscription fees and margins. Traction: OMO IoT Network Solution tested and commercially launched in Ukraine in 500 apartment buildings and having 50K users. 2022 Revenue expectation was $8M. OMO focusing on launch in the United States in 2022 and more globally in 2023. AN INTRO: ENTERPRISE-LEVEL IOT AT HOME MARKET PRICING Smart Home Ecosystem 3 www.omo.systems.us
- 4. IOT MARKET EXPANDING RAPIDLY Asia North America Western Europe South America Eastern Europe MEA Smart Home Ecosystem 4 1 204 233 312 52 61 71 126 0 50 100 150 200 250 300 350 400 2022 2020 2019 2021 2024 2025 2023 CEE MEA South America Western Europe North America Smart Home/ Home Security Regional spending on IoT solutions, 2019-2025, $billion Smart Home / Home Security in US — $45B today www.omo.systems.us
- 5. BUSINESS MODEL: B2B2C, B2B, B2C B2B B2C PROVIDER RESIDENTS OF HOME / APARTMENT / MDU PARTNER Smart Home Ecosystem 5 Video explainer: https://youtu.be/UZJNRJ-O1S4 www.omo.systems.us
- 6. Smart Home Ecosystem 6 PROVIDERS DIY WHITE LABEL TARGETS T-Mobile, ATT, Verizon, Cox, Chartered, Spectrum, Comcast, Local Providers (ISP/Cable), Open5G Direct, Home Depot, Best Buy, Lowes, Others, Costco, Walmart Assa Bloy (August/Yale), Schlage, Canary, ADT, Resideo, Ecobee, Wyze, Emerson, Others PRODUCTS 3 Packages — Defined, Add-on solutions (direct) Single Package — Defined (2), Add-on product solutions Single Package — Defined (Locks), Multiple and definable products HOW ADDRESSING Direct Indirect / Channel Partners Direct PRICING $16.67 / month for 18 months $329 + $15 / month for 18 months ($15/month thereafter) $225 + $10 / month for 24 months ($15/month thereafter) DIFFERENTIATION Integration with Provider Router / Hubless / API for App (white label) MVNO / FVNO Product Expansion / Portfolio API Integration, App support / development, MVNO/FVNO/Cloud ОМО: ADDRESSING THE MARKET www.omo.systems.us
- 7. Video surveillance Security console Intercom Unique Wi-Fi technology for MDU’s Elevator servicing IoT emerges as the only concept of telecoms’ evolution OMO launched to fulfill need as Network Solution OMO joins ZigBee Alliance OMO commercial launch OMO Global Appearance of smartphone with mobile Internet Launch of Network Solution based on existing market products Technical solution development OMO IoT Network Solution developed OMO receives requests for launch in 10 countries HISTORY OF SUCCESS IN DESIGN / DEVELOPMENT Smart Home Ecosystem 7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 www.omo.systems.us
- 8. ОМО provides complex IoT solution enabling quick implementation in the Home / Enterprise OMO Hardware Network equipment for building of ОМОSmart Home network OMO Hub — the only hub in the world for Smart Home with apartment architecture, supporting over 1000 devices in the network MDU, Neighborhoods, Communities OMO PRO Admin panel for easy billing, subscribers and network control Network monitoring ERP / CRM system Add-on revenue model Subscription management OMO App End user app for Consumers giving Advanced Smart Home capabilities Partnership Model Quick “bring up” of partner solutions / products MVNO/FVNO capable Complete “Smart Home” Solution 8 Smart Home Ecosystem LEVERAGING STRENGTH IN DEVELOPMENT 1 2 3 4 www.omo.systems.us
- 9. 9 ОМО: PRODUCT STRATEGY Profitable Mix of Differentiated Service and Holistic Smart Home Solutions *Dealer & Indirect term includes all channels outside of DTC Strategy Alignment Thesis Consumers value home security. 24 x 7 home security monitoring (video verification / analytics) will continue to serve as an entry point into the home to engage the customer and create opportunities for SMART home enabled products and services anchored by home security Low customer satisfaction with Competitors has created a “White Space” where competitive advantage created through innovative and premium customer experience across enterprise and throughout the customer journey Customer interest in technology advancements will support the penetration of interactive, home automation, and SMART security solutions and create opportunities for OMO to create long-term and evolving engagement with customers Confusing and rapid changes in technology will also produce opportunities for OMO to deliver new and integrated products and services to new customers — making the complex simple Smart Home Ecosystem 9 www.omo.systems.us extender extender extender hub OMO doorbell doorbell doorbell indoor camera sensor sensor sensor
- 10. 9 Smart Home Ecosystem www.omo.systems.us A COMPETITIVE LEADER Vivint Ring Nest OMO PRICING* $97.00 / mos $70.00 / mos $52.00 / mos $39.99 / mos VIDEO DOORBELL ✓ ✓ ✓ HUBLESS HOME SECURITY ✓ ✓ ~ SMART HOME ~ ~ ✓ PRODUCT PORTFOLIO WHITE LABEL BRAND RECOGNITION ✓ ✓ ✓ VALUATION $3.5B $6.0B $5.2B $50M 10
- 11. 10 ОМО DEVICES OMO HUB a central device in Smart Home system that allows for creation of large wireless ZigBee networks in apartment buildings. OMO HUB manages all devices connected to it (sensors and actuators), at the same time serving as a link between the entire Smart Home system and the user. Control is carried out through mobile devices (tablet, smartphone), various switches and control panels, as well as a personal computer OMO Extender a device that enhances the signal on the network, improving the quality of communication between devices. It is necessary in case of a large number of devices in ZigBee network and considerable distance between them OMO NFC Reader a wireless device, which identifies elements through radio waves. Allows you to open the door with one touch with NFC chip using a phone, key chain, tag or card. Also serves as a router with which you can build a ZigBee network and extend the distance of wireless transmission in an apartment building OMO Relay a dry contact wireless device designed for remote control of various household appliances. The key function of the device is to communicate with OMO HUB and receive control signal. OMO relay also functions as a router with which one can build a ZigBee network and extend the wireless transmission distance in apartment buildings Smart Home Ecosystem 11 www.omo.systems.us
- 12. 19 ОМО ADVANTAGES 1 OMO system works with sensors from different manufacturers. ZigBee-based devices with the ability to add more than 4,000 certified devices on the ZigBee protocol quickly and affordably 3 Product was created on the basis of the principles of the service and partnership model. Therefore, it provides all the tools for providing services, including by third-party companies, which creates the opportunity to find and cooperate with many companies in the world. 2 Having created a sensor management system, OMO is creating a partnership model with third-party services: Security companies, Insurance companies, Logistics companies, real estate rental companies, etc. For example, ● a motion sensor is installed turning on the lights ● security service is being done on the basis of the same motion sensor in cooperation with a security company ● Health company can understand an event has occurred to a person if they did not leave the room over a period of time (based on the same motion sensor) ● real estate rental company can understand when there were tenants in the house Smart Home Ecosystem 12 www.omo.systems.us
- 13. INTEROPERABILITY OF ОМО ZigBee protocol has been improved by OMO as a solution for Smart Home & In-Building Security OMO system allows one to work with thousands of sensors and devices from 30+ manufacturers that work using ZigBee network protocol ZigBee Home Automation Market is expected to reach $2.4 billion by 2025 Short-range networks (ZigBee) will continue to prevail. Long-range networks (LoRaWan and 5G) will expand the market for IoT services (streets, cars, scooters, transport logistics), but will not cannibalize short-range networks (apartments buildings) Deep product portfolio including Video Doorbells, Smart Cameras (I/O), window and door sensors, smart energy devices (Thermostat, Water, Air) Smart Home Ecosystem 13 www.omo.systems.us
- 14. OMO in Ukraine
- 15. 13 KEY RESULTS 2019 and 2020 were spent for the search of technical solution, development of network solution for apartment buildings and launch of pilot projects Business model was tested in 500+ buildings and proved its validity 502 buildings Billing in connected buildings was launched in August 2021–2022 Revenue ~ $5M Forecasted Lviv Kyiv Kharkiv Dnipro Odesa Zaporizhzhia Requests for launch of OMO solution in 10 countries 50 000+ users Smart Home Ecosystem 15 www.omo.systems.us
- 16. ОМО: 2-YEAR FOCUS 2022 CURRENT FOCUS ● Develop core path to US Market ● Raise initial capital for US product / business model ● Working with providers to execute product model ● Engaging channel partners for DIY / White Label Market MAJOR OPPORTUNITIES / FOCUS ● Bulk transactions / Partners / Accelerate revenue growth for valuation 2023 EXPANSION ● Grow core subscriber and revenue ● Operation efficiencies ● Expand capital investment ● North America / Western Europe expansion Smart Home Ecosystem 16 www.omo.systems.us
- 17. Fast revenue growth model with high product margin expansion year on year Revenue model — subscription based — drives profitability quickly and generously *Cash flow requirements higher than expected: ● Transition to US Market from Ukrainian markets have caused increased cash needs ● Russian invasion eliminated $4M revenue in Ukraine / $8M+ in Russia in 2022 Aggressive Approach ● Pushes Revenue / Valuation Quickly FINANCIAL FORECAST Smart Home Ecosystem 17 2022 2023 2024 2025 Revenue $259,651 $12,266,614 $47,268,554 $116,782,646 Gross Profit $158,382 $8,147,597 $33,371,071 $86,654,169 Net Income $-2,700,653 $3,847,597 $27,390,405 $78,339,735 Margin 61% 66% 71% 74% Cash Flow (Requirements) $-3,151,957 $-8,586,440 $17,367,400 $61,185,719 www.omo.systems.us
- 18. VALUATION PATH Smart Home Ecosystem 18 Revenue Approach 2022 2023 2024 2025 Conservative $259,651 $12,266,614 $47,268,554 $116,782,646 Aggressive $259,663 $15,669,665 $53,677,500 $120,243,781 www.omo.systems.us Conservative vs Aggressive Approach ● Fast expansion across provider market ● Increased adoption by DIY Customers ● Global partners pushing US Markets (USD Millions) 0 200 400 600 800 1000 1200 2022 2023 2024 2025 VALUATION Conservative Aggressive
- 19. INVESTMENT
- 20. Investment format — Convertible Note $2M 17 USE OF PROCEEDS 1 Expand partnership with current business verticals: ● Scale up manufacturing and partnerships with USA providers ● Continue developing new solutions 3 Prepare product for scaling to other geographies: 2 Adapt solution for other business verticals: Security companies Developers Complex property management Delivery services and post boxes Smart Home Ecosystem 20 . www.omo.systems.us
- 21. 17 Smart Home Ecosystem 21 www.omo.systems.us COMPLEMENTARITY 3 Prepare product for scaling to other geographies: 2 Security companies Complex property management We see how in everyday life different types of transport such as cars and planes, Wi-Fi and LTE sometimes compete with each other, but still mostly complement. 5G and ZigBee work on the same principle, so not only do they not replace each other, but you need to use them together to give an enhanced customer experience. Based on this concept, we designed our IoT solution. Initially, we focused on ZigBee, but we have plans to start working with 5G sensors. According to forecasts, by 2030 the number of IoT devices will reach 10 per person. This means that there will be thousands of IoT devices in a MDUs, and at such a volume, the price difference between 5G and ZigBee will be critical. Also, in MDUs there are a lot of walls and other radio interference, so the 5G signal cannot reach everywhere (in control rooms, in an elevator, in basements, etc.) 5G is probably the best transport for IoT solutions in most the places except zones with a large accumulation of sensors, such as multi-dwelling units (MDU) And ZigBee is the superior transport for building an IoT network in a multi-storey building.
- 22. Smart Home Ecosystem 22 www.omo.systems.us HIGH-LEVEL ARCHITECTURE User Cognito API GateWay Lambda WebSocket BE service BE service BE service Kubernetes kafka Admin Panel Video Service Partner Buildings Wi-Fi 5G ZigBee Hub Extender Extender Doorlock Humidity sensor Temperature sensor Camera/ Doorbell Termostat ● AWS USA AZ is used. ● The App uses SSL WebSocket connection. ● The Admin Panel Web Application uses HTTPS. ● MQTT over SSL is used for Hub connection. ● ZigBee uses AES (Advanced Encryption Standard) with a 128-bit key length (16 Bytes).
- 23. TEAM
- 24. STRENGTH IN ENGINEERING Core Strength of Company is Development / Engineering ● 6 Hardware Engineers ● 1 Hardware Lead ● 13 Software Engineers ● 2 Engineering Managers ● 1 Software Lead ● 5 Cloud Engineers ● 9 test / QA ● 1 UI / UX Smart Home Ecosystem 24 www.omo.systems.us
- 25. 19 ORGANIZATIONAL STRUCTURE Smart Home Ecosystem 25 BOARD OF DIRECTORS CEO D. Christopher Keil COO Grant Dayan Production and Logistics team (7) Product Owner team (2) Software Aleksandr Sydorenko Hardware (11) Software (33) Operation (4) HR (2) Legal (1) CFO Robett Rodriguez (part time) CFO Maksym Vostrikov (full time) Chief Business Officer Sergey Boiko BD (3) Marketing (4) www.omo.systems.us CTO Vadym Sydorenko
- 26. MANAGEMENT Vadym Sydorenko Со-Founder, CTO Grant Dayan Со-Founder, CОO Sergiy Boyko Chief Business Officer D. Christopher Keil CEO, OMO Systems, USA Smart Home Ecosystem 26 15+ years of experience in telecom Expert and trendsetter in IoT Executive at Triolan Manages online and offline ventures, entrepreneur, business angel 20+ years of experience in Enterprise and IoT Solutions Board Member, Investor 6-Time Entrepreneur 20+ years of experience in telecom, technology Successful track record in start-up launch and acquisitions www.omo.systems.us
- 27. UNIQUE, COMPLEX B2B2C IOT SOLUTION FOR CABLE AND INTERNET PROVIDERS ALLOWING THEM FAST REVENUE GROWTH MODEL WITH HIGH PRODUCT MARGIN EXPANSION YEAR ON YEAR REVENUE MODEL — SUBSCRIPTION BASED — DRIVES PROFITABILITY QUICKLY AND GENEROUSLY CONVERTIBLE NOTE $2 MILLION 21 www.omo.systems ● to build 5 times cheaper IoT network business based on their existing Internet or TV networks and subscribers ● simultaneously manage thousands of buildings, houses, offices in their IoT network. Monitoring, billing, administration and servicing ● to launch new commercial services based on their IoT network Smart Home Ecosystem 27 www.omo.systems.us
- 28. UNLIMITED POSSIBILITIES The potential of the "Internet of Things” IoT is unlimited — everyone is connected to the network, the number of things is infinite — OMO is focused on the monetization of connectivity and data through the home. SOLUTION FOR PROVIDERS / CONSUMERS Offering a Unique IoT solution and business model for cable and Internet providers alike. Unique model gives providers an extended subscription model, building unlimited IoT sensors into the home with OMO. UNIQUE SOLUTION OMO is the world's only network IoT solution for buildings (1000 connections / hub) — HublessSystem in the Home. Box solutions (Nest, Ring) do not cover collective spaces (elevator, intercom) and lack the opportunity for provider involvement. Long-range networks are less efficient in apartment buildings due to slow speed and the number of walls in the building. STRATEGY Targeting the $66B Home Security / Smart Home Market. Cooperating with providers to give long-term subscription model and margin expansion through low-cost solution. Solution gives OMO the advantage in building an IoT network in apartment buildings. Hub strength reduces entry barrier in terms of price, in service model, in complexity, and in total product portfolio. OWN HARDWARE AND SOFTWARE Due to absence of technical solution on the market, OMO has developed its own network hardware, developed software for it and improved ZigBee protocol. SCALABILITY Focus on partnership model allows OMO to increase presence faster, become the fast entrant on the market and acquire customers in short amount of time (grew 50k users in < 2 years in the Ukraine. $2M Seeking Convertible Note of $2M to expand into USA Market — 65% for product development / fulfill purchase orders and subscription model / 35% for operating expense over the next 12-14 months. A REVIEW Smart Home Ecosystem 28 www.omo.systems.us
- 29. 19 PRODUCT ROADMAP Smart Home Ecosystem 29 HUB Initial package 3 opening sensors, 1 motion sensor, 1 indoor camera, 1 doorbell, 1 extender DIY Universal Package (Wi-Fi) 1 doorbell , 1 indoor camera, 1 thermostat 5+ OMO Devices 1 www.omo.systems.us 3 2 4 August September October Q4 2022
- 31. Contact: CTO: Vadym Sydorenko: v.sydorenko@omo.systems +380667632615 CEO, USA: D. Christopher Keil c.keil@omo.systems.com +14088261255