Consumerizzazione dei mercati,

social media e nuovi device

Oozi Cats

Chief Executive Officer

Telit Communications PLC

Consumerizzazione dei mercati. Capri 6-7 ottobre

Turning Data into Knowledge.

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Oozi CatsTelit Communications PLCCEOCapri – 6 ottobre, 2011

m2m – Why should you care?

m2m is a market with huge economic potential:

>> Market growth : m2m devices are forecasted to grow at a compound annual growthrate (CAGR) of 25.1 percent to reach 95.7 million units until 2015*

>> The vast majority of the world’s next 5 billion mobile connections will be m2mconnections*

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>> m2m affects everyday life : automotive, energy, healthcare, telemetry, security,IT/networks, retail…

>> Telit’s revenue grew from $88 million in 2009 to $131.7 million in 2010 – which is agrowth of 49.6 % – and therefore substantially more then the market!

>> Telit is one of the top three leading m2m module suppliers with a market share of22%

* Berg Insight, The global wireless M2M market, M2M Research Series 2010

m2m – Why should you care?

Global m2m Modules Market Shares

Worldwide m2m RevenuesConnectivity

Service Enablement Services

Modules

Rev

enue

s $

Mill

ion

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* Acquired by Telit in March 2011.

Source: Beecham Research Report, June 2011.Sources: Beecham Research 2010 & 2011, ABI Research 2010.

Rev

enue

s $

Mill

ion

What is m2m?

Machine-to-Machinecommunication is the wiredand wireless communicationbetween machines or menand machines .

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and machines .

The world is full of data !

M2M is turning data into Knowledge.

Source: Deutsche Telekom

How to make machines talk?

Machines talk, when…

…they are enabled to communicate with each other.

But a combination of complementary communication standards for vertical segmentsis needed.

Telit is the only module supplier that provides short range and cellular modules –

Telit Short Range Modules

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Telit is the only module supplier that provides short range and cellular modules –a result of constant innovation and expansion :

• Telit acquired in 2011 the M2M Motorola business line to complete its portfolio.

• Telit is adding connectivity and services to product offering generating recurringrevenues.

Telit Cellular Modules

What drives the market?

m2m technology had been existing for quite a while but is lift ing off now!

>> m2m has proven to reduce costs, save time, boost operational efficiency, enhancesecurity and improve customer service.

>> Price of technology and connectivity has reached the right level for mass deployments.

>> Operators focused on M2M as the new growth area.

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>> Operators focused on M2M as the new growth area.

>> Regulatory body initiatives.

We, at Telit , believe that market growth will continue within existing applications and due tothe variety of possible new applications.

This is also supported by analysts: Beecham Research predicts a CAGR of 28% formodule shipments until 2015.

Best Practices

Automotive Energy Healthcare IndustrialConsumer Mobile

But why should machines talk at all?

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IT/Networks Retail Security Telematics Tracking

Energy and m2m:

>> Limited energy resources and the need to manage CO2 make it necessary to findnew, more efficient solutions that increase the awareness for energy consumption.

This results in new applications such as:

Energy

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This results in new applications such as:

>> Smart Metering : Intelligent gas/electricity/water meters that transmit dataautomatically to utility providers. E.g. the UK foresees to install an initial 1 millionGPRS-connected gas meters until 2012 as try. Over 40 million should follow until 2020.

>> Smart Grid: Electrical grid which intelligently responds to the behavior and actions ofall electric power users connected to it.

>> Smart Cities: Cities that deploy intelligent technologies that reduce energy

consumption and the emission of carbon.

Best Practice: Smart City Torino

>> Torino is one of the smart cities chosen by the European Commission.

>> The EC supports cities that are committed to increasing the energy efficiency of theirbuildings, power grids and transportation systems to reduce emissions by 40 percentby 2020.

Telit and Energy

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>> Telit enables the development of innovative solutions to meet the requirements andsupports Torino in realizing this project.

The smart cities and community initiative is funded by the European Commission with

80 million Euro.

Best Practice: Italy

>> Italy is one of the most advanced countries for Automated Metering Reading (AMR) asit has already deployed the biggest electricity project in the EU.

>> Furthermore, the country decided to fully deploy smart gas meters in all households by2017. The project has a size of 3+ billion Euro .

Telit and Energy

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>> Telit is the only wireless telecommunication technology supplier that provides allrequired communication technologies (GPRS, Wireless M-Bus, ZigBee and proprietaryshort range solutions).

The M2M energy market is expected to grow by nearly 48% CAGR worldwide between 2011 and 2015.

Telit ME50 modules are the latest generation of Wir eless M-Bus solutions (European standard for remote reading of gas and el ectricity meters)

Consumer and m2m:

Customers expect smart solutions which lead to new business opportunities such as:

Consumer

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Customers expect smart solutions which lead to new business opportunities such as:

>> Home devices : alarm systems, energy management, remote control and surveillance.

>> Information devices : e-readers, digital photo frames, radar warning systems.

>> Vehicle devices : PNDs, security tracking functions, internet in the car.

>> Healthcare devices : Monitoring of body functions, tracking of family members.

Consumer and Telit

Best Practice: Telit customer Isabella Products

>> m2m enables photo sharing to be simpler and faster: Isabella Products provides a revolutionary two-way digital photo frame to share pictures worldwide via GSM.

Best Practice: Telit customer Navigon

>>

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Beecham Research predicts that the consumer M2M market will exceed 50million connections by 2013 worldwide.

By 2020 it is likely that this number will grow to 200 million a nd thus enablesservice revenues of more than $10 billion.

>> m2m enables Personal Navigation Devices (PND) to deliver more than just the right way to drive: Navigon provides additional functions with it’s PND such as the nearest fuel station, shopping and dining possibilities.

Healthcare and m2m:

>> Due to the demographical change in the industrial countries, applications that help

Healthcare

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>> Due to the demographical change in the industrial countries, applications that helpmonitoring body functions and allowing elderly people to longer live an independentlife, become increasingly important.

>> Also in Africa medical monitoring is a highly evolving market as mobile networks arewell developed and doctors often several miles away from their patients.

>> Both trends lead to new healthcare m2m devices, e.g. for monitoring of body functionsor tracking of family members.

Telit and Healthcare

Best Practice: Telit customer Sonamba

>> m2m enables taking care of elderly patients remotely: Sonamba provides a well-being monitoring device for elderly people. The application features automatic medication reminders, easy emergency calls and real-time updates of heart frequencies.

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Beecham Research predicts a growth of 112% until 2015 in the h ealthcaremarket worldwide!

Best Practice: Telit customer Tunstall

>> m2m increases the quality of life for patients: Tunstall offers a telehealth monitoring device collecting vital signs that help to prevent diabetes, heart failure or thrombosis.

m2m – The next step

>> As a next step m2m technology will move into the

cloud. Then cloud services can be provided on

basis of needs and data can be shared with other

authorized parties e.g. via smartphones.

>> Therefore a new high-level architecture, based on

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>> Therefore a new high-level architecture, based on

existing communications standards, is needed.

>> As a result, data obtained from people e.g. who

self-medicate at home can be integrated with

patient data held in a healthcare database. In a

cloud model, data can be shared also with doctors.

A high-level, generic view of a next-generation network and its layered architecture.

Source: Bob Emmerson, freelance write

Where is your profit?

Automotive Energy Healthcare IndustrialConsumer Mobile

M2M enables you to find new business

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IT/Networks Retail Security Telematics Tracking

M2M enables you to find new business models in your vertical segment

Thank you.

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>> www.telit.com