FeliCa Networks, Inc.

January 27, 2011

Outlines of Mobile FeliCaFeliCa Networks, Inc.

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Table Of Contents

Corporate Introduction of FeliCa Networks

Outlines of Mobile FeliCa in JapanSummary of Mobile FeliCa MarketMobile FeliCa Services

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Media for “FeliCa” IC Chip

Contactless IC CardMobile Phone

equipped with FeliCa technology

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About FeliCa Networks

57%

5%

38%

FeliCa Networks, Inc. was established in Jan. 2004, as a JV of Sony and NTT docomo.

( East Japan Railway also joined in Jul. 2004)

FeliCa Networks, Inc. was established in Jan. 2004, as a JV of Sony and NTT docomo.

( East Japan Railway also joined in Jul. 2004)

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FeliCa Networks Main Businesses

FeliCa NetworksMobile FeliCa Platform

To semiconductor companies

Development, manufacture andsale of Mobile FeliCa IC Chip forMNO handsets

To Mobile Network Operators

Mobile FeliCa IC chip installment and integration to MNO’s handset

Management of a secure memoryarea in Mobile FeliCa chip

Platform Business

Mobile FeliCaMiddleware

Mobile FeliCaCommunication

Protocol

Mobile FeliCa OS

Online registration service & Data writing

Secure memoryArea management

License Business

ServiceProvidersE-money ID/MembershipCredit card Ticketing

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Table Of Contents

Corporate Introduction of FeliCa Networks

Outlines of Mobile FeliCa in JapanSummary of Mobile FeliCa MarketMobile FeliCa Services

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Summary of Mobile FeliCa Market in Japan (1)

Almost all Mobile networkoperators offer Mobile FeliCa services.

MobileFeliCa

Operator

MobileFeliCa

Operator

MobileFeliCaService

MobileFeliCaService

MobileFeliCaGrowth

MobileFeliCaGrowth

MobileFeliCaPhone

MobileFeliCaPhone

PDC/UMTS/HSDPA

UMTS/HSDPA

Mobile FeliCa Adoption By MNO(Mar-10)

PDC/UMTS/HSDPA

cdmaone/CDMA2000/CDMA 1X EV-DO Rev.A

Various operators adopt Mobile FeliCaregardless of difference of Mobiletelecommunication technologies.

Various operators adopt Mobile FeliCaregardless of difference of Mobiletelecommunication technologies.

56 Mil.(50%)

31.9 Mil.(28%)

21.9 Mil.(20%)

2.4 Mil.(2%)

Total MNOSubscribers: 112 Mil.

*: Willcom (PHS Operator) also adoptedMobile FeliCa in 2009.

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Summary of Mobile FeliCa Market in Japan (2)

Almost all Mobile networkoperators offer Mobile FeliCa services.

MobileFeliCa

Operator

MobileFeliCa

Operator

MobileFeliCaService

MobileFeliCaService

* Source: Impress R&D

About 80% of Mobile Phonemodels have Mobile FeliCa.

MobileFeliCaPhone

MobileFeliCaPhone

Cumulative # of the Phone models are over 300 since2004.# of the Phone brands is 12.

Cumulative # of Mobile FeliCa Phone Models*

MobileFeliCaGrowth

MobileFeliCaGrowth

728

78

151

239

316

050

100

150200

250300350

FY04 FY05 FY06 FY07 FY08 FY09

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Summary of Mobile FeliCa Market in Japan (3)

Almost all Mobile networkoperators offer Mobile FeliCa services.

MobileFeliCa

Operator

MobileFeliCa

Operator

Over 100 Mobile FeliCaservices are offered.

MobileFeliCaService

MobileFeliCaService

MobileFeliCaPhone

MobileFeliCaPhone

About 80% of Mobile Phonemodels have Mobile FeliCa.

Cumulative # of the Phone models are over 300 since2004.

# of the Phone brands is 12.

Payment

Retail Transportation

Access Control Entertainment

MobileFeliCaGrowth

MobileFeliCaGrowth

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Summary of Mobile FeliCa Market in Japan (4)

Almost all Mobile networkoperators offer Mobile FeliCa services.

MobileFeliCa

Operator

MobileFeliCa

Operator

Over 100 Mobile FeliCaservices are offered.

MobileFeliCaService

MobileFeliCaService

MobileFeliCaPhone

MobileFeliCaPhone

About 80 % of Mobile Phonemodels have Mobile FeliCa.

Cumulative # of the Phone models are over 300 since2004.

# of the Phone brands is 12.

200420042004 200520052005

Sep-05 Nov.-05Jul-04

NTT Docomo 66 Mil.66 Mil.

Feb-09

49 Mil49 Mil

3 Mil3 Mil

30 Mil.30 Mil.

14 Mil.14 Mil.

FY

KDDI Vodafone( “Softbank”）

# of Mobile FeliCa Phoneownership

MN

OM

NO

Service expansionService expansion

MobileFeliCagrowth

MobileFeliCagrowth

More than 66 Mil. subscribers(About half in total) have a Mobile FeliCa Phone. (Mar-10)

200620062006 200720072007 200820082008 200920092009

58 Mil58 Mil

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Table Of Contents

Corporate Introduction of FeliCa Networks

Outlines of Mobile FeliCa in JapanSummary of Mobile FeliCa MarketMobile FeliCa Services

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Payment

Retail Transportation

Access Control Entertainment

Major categories of Mobile FeliCa Services

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Payment services overview

1.1Mil.(Mar-10)4.9Mil.15Mil.14.7Mil.11.5Mil.30.1Mil.57.7Mil.# of Total Card

Users (May-10)

447,000

DataN/A

DataN/A

NTT DoCoMo

# of R/W(May-10)

# of Available shops(May-10)

Service Brand

Operatingcompany

DataN/A

DataN/A

DataN/A1.3mil2.2 mil.

(Nov-10)10 mil.# of MobileFeliCa Users(Aug-10)

MUFJ NICOS / VISAJCBAeon7&i HoldingsEast Japan

RailwayBitWallet

242,000

DataN/A

77,000

DataN/A

DataN/A

86,000

DataN/A

DataN/A

DataN/A

63,05698,540221,000

Prepaid Type Postpaid Type

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Transportation/Payment - Mobile Suica

Stored Fare(Single Ticket)

CommutingPass

Upper ClassTicket

(Rapid train)

Loyalty program

SHINKANSENTicket

E-money

(1) ConvenienceTicketless serviceOnline Service activationOnline charging of Stored Fare/E-MoneyOnline purchasing of Commuting Pass,Upper Class Ticket and SHINKANSEN TicketChecking information on Mobile Phone Display(Current value, Ticket info., position of reservation seat etc.)

(2) PriceExclusive discount vs.paper ticket( “Upper Class Ticket” &“SHINKANSEN Ticket”)

Service

Customer Benefit

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Transportation (Airline) - ANA

E-ticket

MileageExchange

for Edy Value(E-money)

MembershipCard of Frequent

Flyer Program(Mileage Program)

(1) ConvenienceTicketless service (Domestic flight only)Online service activationChecking service information on Mobile Phone Display(Current mileage loyalty program and reserved flight information)

(2) Exchangeable for E-money1 Mile can be ¥1 EdyValue (E-money)

Service

Customer Benefit

Reservation&

E-check in

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McDonald Coupon Service

“Showing” Coupon (Original service)

Mobile FeliCa Coupon (New!)

CRMCRM

Coupon Paper

Direct Mobile Mail

Please wave your coupon.

Please show me your coupon.

Actual Coupon ImagePicture

The McDonald’s mobile FeliCa coupon service is now available at all their shop (about 3,700) and the number of total users have reached 10 mil.

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Survey of Mobile FeliCa Service Users

Question: Intention to continue to use Mobile FeliCa Service

Strongly agree to continueto use Mobile FeliCa Service

Somewhat agree to continueto use Mobile FeliCa Service

Other

n

Total (304)

Male (212)

Female (92)

72%72%

73%73%

70%70%

21%21%

21%21%

23%23%

0% 20% 40% 60% 80% 100%

6%

6%

High satisfaction results strong intention to continue to use Mobile FeliCa Services among the users

7%

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End of the PresentationMerci!

FeliCa Networks, Inc.