THE BENEFITS OF THE GSMA EMBEDDED SIM SPECIFICATION London UK | Cambridge UK | Boston USA M2M IS GAINING MOMENTUM ACROSS A WIDE RANGE OF SECTORS TRANSFORMING BUSINESS OPERATIONS & CREATING NEW REVENUE OPPORTUNITIES Regulatory / Linefit / OEM • Vending Machines Government • Automobiles After Market KEY M2M APPLICATION CATEGORIES • Environmental Monitors • Watches • Smart Meters • Toll Charge TOLL 01234 kwh .000 SmartMeter SmartMeter Annual New Connections IMPACT OF KEY APPLICATION CATEGORIES ON FUTURE MARKET GROWTH OEM-based Embedded Network Service Led Low Cost High Volume - Current Cellular M2M Market Regulatory/Government Embedded Network Specific Activities Covered Low Cost High Volume After-market Applications Network Add-on Solution Led Individual Support Requirement High Cost Low / Medium Volume Time OEM-Based Biggest Growth Opportunities But There Are Challenges Regulatory / Government WHILST REMOVABLE REMOVABLE SIMs NOT IDEAL SIMs IDEAL FOR HANDSET FOR OEM & REGULATORY/ MARKET WHERE SIM CARD GOVERNMENT CATEGORIES INSERTED AT POINT OF SALE 01234 .000 kwh SmartMeter INCREASES COSTS AND IMPACTS SALES OPPORTUNITIES EMBEDDED SIMS ARE IDEAL FOR THESE CATEGORIES BUT MARKET FRAGMENTED AS NO STANDARDISATION Secondhand market problem Difficult to change MNO at contract expiry Until Now all solutions have been PROPRIETARY THESE CHALLENGES AND MORE CAN BE OVERCOME WITH THE GSMA EMBEDDED SIM SPECIFICATION By 2020 Creating Revenue $8.96bn PROPRIETARY EMBEDDED SIM GSMA EMBEDDED SIM SPECIFICATION Overall Market Growth Overall Market Growth 478m 639m 2020 SIM Connections 2020 SIM Connections 2020 2020 2019 2019 Market 2018 competition compromised, 2017 market fragmented, 2016 market 2015 growth slower 2018 Global SIM Connections 2013-2020 2014 • Changing MNO at contract expiry is difficult • Limits global sales opportunity Connected Car Connections 2013 2013 2017 2016 2014 2015 Open market approach promotes market growth • 34% Uplift on proprietary by 2020 • Potential As Global Standard To Drive Global Sales Opportunity Connected Car Connections 158m Worldwide 2020 190m Consumer Electronics Connections Consumer Electronics Connections 126m Worldwide 2020 Worldwide 2020 220m Worldwide 2020 Designed by and all figures sourced from Beecham Research.Copyright © 2014 Beecham Research Ltd. All rights reserved. http://beechamresearch.com [email protected] USA 617.272.1262. Europe +44(0)207 749 1944