Market Projections

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Market Projections
Presented by Lisa Sanders Wavecom Peter Sto
ne
Aeris Communications
500 p.m. 530 p.m. Lake Michigan A
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M2M Communication -- no longer a Tomorrows sto
ry
Presented by Lisa Ann Sanders Wavecom
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2002 Market estimates European M2M installed base
versus Mobile phones 2002 Estimates

• Market size estimates were grossly
  overestimated in the past

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(No Transcript)
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Worldwide Volumes by Segment (K Units)
CAGR 27,5 36,5 26,6
44,757
34,054
25,944
19,750
15,410
11,477
8,750

• Scenario steady-state volume progression.
• We have a better accuracy after SE acquisition
  robust and consistent figures

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Worldwide Revenues by Segment (M)
1265
CAGR 14,5 21,8 13,7
1040
878
741
641
567
473

• Market valuation model takes into account price
  decreases / segment / region

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WorldwideSub-segmentation (K Units)
CAGR 31,2
44,757
34,054
25,944
19,750
15,410
11,477
8,750

• External market analysts generally show less
  detail

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Worldwide Revenue sub-segmentation (M)
1265
1040
878
741
641
567
473

• Most sub-segments are substantially below 100M
  Euros

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Segments Potential - Worldwide
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AMM
Sales Payment
Home Security
VRM
CAGR (2006-2010)
After-Market
Control Monit.
20
Auto Tier1
Mob.Comp.
10
Fixed Voice
100m
5m
50m
Revenues (2006)

• Some sub-segments have greater potential for
  short-term growth

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Up And To The Right Why the M2M Analysts Are
Right
Presented by Peter Stone Aeris Communicat
ions, Inc.
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Source ABI Research, Frost Sullivan, Driscoll,
Danske Equities, Fredonia Group, interviews,
Scott Research, Juniper Research, Harbor
Research, Focal Point Group, Interviews
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• M2M Market Growth Drivers
• Costs Going Down
• Hardware Greater integration at chipset and
  radio levels
  
• Network Cost per byte dropping as 2.5G evolves
  to 3G and 4G
  
• Application Standardization of tools and
  interfaces in IP-dominated world
  

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• M2M Market Growth Drivers
• Appetite for M2M Data Increasing
• New capabilities On board application
  processing video and voice as data
  
• M2M 2.0 apps From monitoring and logging to
  interaction and control
  
• Vertical-specific Evolution of requirements is
  vertical-by-vertical
  

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• M2M Applications Evolving
• Consumer Telematics
• M2M 1.0 High end car lines - high end,
  concierge-subscription based model
  
• M2M 2.0 In every car safety and security
  base, with real-time traffic option both OEM
  and after-market
  

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• M2M Applications Evolving
• Commercial Telematics
• M2M 1.0 Tracking/monitoring device separate
  from two-way voice dispatch
  
• M2M 2.0 Voice-as-data integrated in M2M device
  without separate voice subscription
  

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• M2M Applications Evolving
• Home and Business Security
• M2M 1.0 Basic intrusion and fire alarms, health
  check
  
• M2M 2.0 Voice and/or video verification of
  alarms
  
• M2M 3.0 Home automation through security panel

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• M2M Applications Evolving
• Utilities
• M2M 1.0 Infrastructure monitoring, AMR
• M2M 2.0 Real time power generation, real time
  load shedding