sonim analyst deck 28 october 2011

CONFIDENTIAL

WORKFORCE-CRITICAL MOBILITY

October 2011

CONFIDENTIAL

U.S. BASED GLOBAL COMPANY THAT . . .

2

• Builds the world’s most extremely reliable mobile phones

• Ultra-rugged combined with built-in safety features to protect workers

• Targets workers in demanding and hazardous environments in 8 industry verticals – where safety and reliability are paramount

• Enables teams to work smart via workforce management applications from leading partners

• Exclusively offers a comprehensive 3-year warranty covering accidental damage

CONFIDENTIAL

3

SIGNATURE SONIM MOBILE PHONESUltra-rugged Communication for Demanding Workplaces

INTRINSICALLY SAFE / SPARK PROOF(Market Share Leader)

LONE WORKER /MAN-DOWN SOLUTION

IP-68 PHONE- 2 METER

SUBMERSIBLE

MRM* SOLUTIONLONGEST TALK &

GPS TRACKING TIME

NFC**READER

3G UMTS3G CDMA

CONFIDENTIAL

4

KEY MARKET SEGMENTSWhere Safety, Ruggedness & Intelligence Matter the Most

• Security & Facilities Management

• Construction

• Oil, Gas & Chemical

• Utilities

• Transportation & Logistics

• Forestry & Paper

• Agriculture

• Defense

• Other Heavy Industries

• Telecommunications & Field Infrastructure

• Workers comprise 10%+ of the workforce

• Workers part of a larger enterprise

• Enterprise buys phones as package from a mobile operator

• Enterprises make decision on

– Price / TCO

– Risk mitigation

CONFIDENTIAL

5

NEEDS SHARED BY 85M USERS IN DEVELOPED MARKETS

Industries US (MM)

Security / Facilities Management

1.05

Construction and Extraction 6.50

Oil, Gas, Chemical 1.47 

Utilities  0.63

Transportation/Logistics 9.51

Forestry & Paper 1.6 

Agriculture 0.43

Defense 2.30

Telecom Field Infrastructure 0.27

Other Heavy Industry 9.91

33.7

11% of US population arein target vertical workforces

11% of (US + W. Europe + Canada + Aus/NZ) = 85M

Sources: LABORSTA, Bureau of Labor Statistics

CONFIDENTIAL

6

THREE FUNDAMENTAL REQUIREMENTS Workforce-Critical Mobility Exists In Three Domains

ULTRARUGGED

BUILT-INSAFETY

TEAMSMART

WORKFORCE

CRITICAL

CONFIDENTIAL

ULTRA RUGGED - ELEMENTSDesigned for Use In the Most Hazardous & Demanding Work Environments

• Physically tough

– Resilience under continual demanding use

– Day-in, day-out for 3 years on the job

• Usability under duress

– Gloved and one handed use,

– Loud audio speaker

– Noise canceling microphone,

– Sunlight readable display

– Gore™ vent to clear water from speaker

– Strong antenna performance

• Long operation

– Battery operation for double shift (16 hour) workdays and 25% talktime

– Simultaneous with GPS tracking - sending positions to a server every 3 minutes

7

ULTRARUGGED

BUILT-INSAFETY

TEAMSMART

CONFIDENTIAL

ULTRA RUGGED – ELEMENTS

• Not Rugged …. Ultra Rugged

• MIL-SPEC? ….. Beyond MIL-SPEC

• How many four foot (1.2m) employees does your company have walking around on plywood?

8

ULTRARUGGED

BUILT-INSAFETY

TEAMSMART

CONFIDENTIAL

SONIM RUGGED PERFORMANCE STANDARDS Beyond MIL-SPEC

9

1 TON OF EXTREME PRESSURE

RESISTANT TO SHOCKS &

VIBRATIONS

-20C TO +55C ACCESSIBLE KEYPAD

100 dB SPEAKER

IP 68 IMPERVIOUS

TO DUST

2 METER DROPS ONTO

CONCRETE

IP68 2 METER DEEP WATER

SUBMERSIBLE

UP TO 24 HRS TALKTIME / 26 HRS

GPS/MRM

3-YEAR COMPREHENSIVE

WARRANTY

RESISTANT TO PETROLEUM

OILS

PUNCTURE PROOF

(500 KG/SQ.MM)

ULTRARUGGED

BUILT-INSAFETY

TEAMSMART

CONFIDENTIAL

BUILT-IN SAFETYSafety Features Designed Into the Core of Our Phones

• Ultra-rugged works when you need it the most

• Lone-worker / man-down protection

– GPS tracks presence to aid in man-down recovery

– Panic button always works – all the time

– Accelerometer detects falls and other man-down incidents

• Intrinsically Safe-certified models

– For use in high-risk explosive environments

• Fail-safe communication

– Applications maintain state through reboots

– Safety-critical software runs reliably for weeks and tested through thousands of iterations

10

ULTRARUGGED

BUILT-INSAFETY

TEAMSMART

CONFIDENTIAL

TEAM SMARTPower Tools for Workforce Operations Managers

• Vertical Industry Solutions

1. Applications in the cloud

2. Applications in the phone

3. Intelligent accessories that work with the applications

• Workplace productivity enhanced by real-time data

– Mobile resource management (MRM) with GPS

– Project management and voice reporting tools

• Communication extended across the workforce

– Between team and base -- and between team members

– Push-to-talk, worker location, safety alerts

• Service quality measured at the point of delivery

– Ensure service companies are meeting contract obligations

– Proof-of-activity and presence through indoor (NFC) / outdoor (GPS) positioning

11

ULTRARUGGED

BUILT-INSAFETY

TEAMSMART

CONFIDENTIAL

BENEFITS OF WORKFORCE CRITICAL MOBILITY

ULTRARUGGED

BUILT-INSAFETY

TEAMSMART

12

Extreme Reliability

Key Benefit

Total Cost of Ownership

Risk & Liability

Reduction

Operations Excellence

WORKFORCE

CRITICAL

CONFIDENTIAL

WORKFORCE MOBILITY MARKET

13

AppleRIM

Motorola(enterprise)

Intermec

Casio

Samsung

TE

AM

SM

AR

TT

EA

M C

OM

MU

NIC

AT

ION

+

OP

ER

AT

ION

AL

EF

FE

CT

VE

NE

SS

BUILT-IN SAFETY + ULTRA-RUGGED

EXTREME RELIABILITY

WORKFORCECRITICAL

TRADITIONALDATA

CAPTURE

Motorola(consumer)

Shenzhen Clones

STANDARDSMART PHONES

Future Sonim AndroidPhones

HTC

Symbol

RUGGED FORSPORTS / PLAY

CONFIDENTIAL

STANDARD CONSUMER

WORKFORCE CRITICAL

RUGGED FOR SPORTS / PLAY

UNIQUE MARKET POSITIONSmart Teams In Ultra-rugged Environments

TRADITIONAL DATA CAPTURE

MARKET SIZE

PR

ICE

CONFIDENTIAL

ANNUAL UNITS

(MILLION)

TO DISTRIBU

TOR

MNO SUBSIDY

REPLACEMENT

CYCLE (YEARS)

TRADITIONALDATA CAPTURE

3 $800 $0 4.5

WORKFORCECRITICAL

? $300 ($200) 3.0

RUGGED FOR PLAY TIER 1 (Mot, Samsung)

3 $150 ($150) 1.5

RUGGED FOR PLAYTIERS 2 – 3

5 $100 $0 1.5

STANDARD CONSUMER

1,500 $130 $0 - $150 1.2

UNIQUE MARKET POSITIONSmart Teams In Ultra-rugged Environments

CONFIDENTIAL

BRINGING INTELLIGENCE TO WHOLE TEAMSEntire Workforce Enablement – Anytime, Anywhere

• N2 effect – the greater the number of connected team members, the more powerful and effective the team

• Targeting underserved market segments

• Disruptively priced for team-wide deployment

– $300 - $800 MSRP

– $1,500 devices don’t reach every security guard, construction worker, cleaner

– Handheld computers don’t climb trees and transmission towers or go down manholes – and are often left in the car

CONFIDENTIAL

COMPETITIVE DIFFERENTIATIONConsumer Device Manufacturers

• This market requires focus and commitment – not side trips

• Most ruggedized phones are built for sport – not built for daily use in demanding environments

• Ruggedness isn’t enough

– Extreme reliability

– Team smart

– Built-in safety

– Enterprise 3-year warranty - covering accidental damage

• Simply a sideline for most mobile manufacturers

– Not their core business

– Consumer mobile phone perspective does not match needs of specific government and enterprise industry sectors

– No expertise in the industries

CONFIDENTIAL

COMPETITIVE DIFFERENTIATIONTraditional Data Capturing Devices for the Enterprise

• Focused on team-wide deployment

– e.g. every construction worker and security guard

• Disruptive lower price point

– Underlying consumer derived cost base

– Mobile operator subsidy

• Distribution by mobile operator business sales force (plus VARs & integrators)

– Verticals large enough

– Portfolio effect

– Support operator white label services (lone worker, e-health, field force)

• Focus narrower and deeper on select verticals

• Extreme reliability

CONFIDENTIAL

19PARTNER ECOSYSTEMPartnering with Best-of-breed Team Intelligence & Safety Providers

PUSH-TO-TALK

LONE WORKER MONITORING SERVER

NEAR FIELD COMMUNICATIONS (NFC) APPLICATION PROVIDERS

MOBILE RESOURCE MANAGEMENT

EMERGENCY RESPONSE

CENTERS

SYSTEMS INTEGRATORS

INTRINSICALLY SAFE

CONSTRUCTIONVOICE REPORTING

CONFIDENTIAL

20

USED BY LEADING ENTERPRISES WORLDWIDE

UTILITIES SECURITY / FM

TRANSPORTATION &LOGISTICS CONSTRUCTION HEAVY INDUSTRY

OTHERS

CONFIDENTIAL

21

DISTRIBUTED THROUGH NETWORK OPERATORS WORLDWIDE

• Americas

– Canada: Rogers and another top tier carrier

– US: T-Mobile, Cincinnati Bell, Viaero, ACG (26 smaller CDMA carriers)

– Latin America: Entel Chile, Tier 1 multinational group

• Europe

– Northern: 2 of big 3 in UK, 3 Sweden, Telenor, TeliaSonera, TDC, KPN

– Southern: Vodafone Portugal, Telefonica Spain

– Eastern: T-Mobile Hungary, TelSim, VimpelCom

• MEA

– South Africa: Vodacom, MTN

• Asia

– Australasia: Vodafone Australia & New Zealand

CONFIDENTIAL

22

IN SUMMARY

Sonim creates workforce-critical mobile phone solutions that are ultra-rugged and team smart with built-in safety

– Marketed to enterprises at disruptive price-points to enable team-wide deployment

– Continued operation throughout the workday, under duress and in the harshest conditions

– Resilience to continual, demanding use

– Ability to always know where workers are

– Inter-team communication at all times

– Integration with enterprise communications and hosted

– Modular extensibility

CONFIDENTIAL

ADDITIONAL SLIDES

CONFIDENTIAL

Lone Worker Protection

24

GPS Location

EMERGENCY RESPONSE

CENTER

EscalationManagement

Location Data HOSTED

MONITORING SERVER

Red Riskbutton

- sends GPS location and calls ERC even when

phone locked

Green Riskbutton –

Track start and end of

a shift

Amber Riskbutton – request

monitoring and

tracking

– Simple Mode: sends heartbeat messages

– Tracking: sends GPS position every 1-5 minutes, battery life 26 hours at 3 minute intervals

– Man Down: monitors accelerometer for accidents, sends alerts to server

– Alarm: sends current position to monitoring centre, calls Emergency Response Center

NETWORK OPERATOR

Audio recording

CONFIDENTIAL

Mobile Resource Management

- Increase efficiency

- Locate and track

- Dispatch nearest worker

- Automatic time sheets reduce over claimed hours

- Automatic mileage reduce over claimed expenses

- More time with customers, less time on paperwork

- Field Service, Utilities, Transportation & Logistics

CONFIDENTIAL

Network Operator

Push-to-talk (PTT)- PTT enhances workforce productivity

- Near instant one-to-many communication

- Sonim has 11 granted patents on PTT on cellular networks

- Specific phone models support:- Kodiak servers: circuit-switched PTT (2G/EDGE) and packet-switched PTT (3G/HSPA)

- Qualcomm Qchat on CDMA

CONFIDENTIAL

II 2 G Ex ib IIC T4

Device Group

Application Atmosphere

* Maximum surface temperature exposed to gas

in case of malfunction

ATEX – Intrinsically Safe

Explosion Group

Temperature Class (°C)*

Type of Ignition Protection

Device Category Explosion Protection

- Incapable of causing sparks- Required in potential explosive environments- Oil and gas extraction, processing and distribution- Chemicals industry- Grain mills- Biogas

CONFIDENTIAL

NFC battery cover accessory

• Proof of activity for Security Guards, Cleaning Crews

• Applications in dairy farming, home visit nursing

28

CONFIDENTIAL

NFC WORKFORCE MANAGMENT

WHO – IdentificationWHAT - Activity

WHERE - LocationWHEN - Timestamp

• Security and Facilities Management– Security Guards

– Facilities Managers / Supervisors

– Cleaning Crews

– Technicians and Equipment Maintenance Crews

• Home visit Healthcare– Nurses

CONFIDENTIAL

SONIM’S NFC SOLUTION

Application PartnersData collection and Reporting

Activity Assignment

and work tracking

User and Location

Management

Incident Report and

Management

Time & Attendance

Services

REAL TIME BUSINESS INTELLIGENCE

CELLULAR OPERATOR NETWORK

CONFIDENTIAL

NFC App solution partners

Partial List• Reslink, Finland, UK• Avistatime, Sweden• Tuomi, Germany, Austria, BeNeLux, US• SoftClean, Germany, Austria• Motec-data, Germany• Pitcom, Germany• P&T Consulting, France• Ntech/Ceysoft, Turkey• Spotmaster, Netherlands• A.S.E. Ebner, Austria• ACS, UK• Over-C, UK

CONFIDENTIAL

Example Economic Model Output

Workforce management applications drive: recurring revenue, 100% data plan take-up and lower churnEnterprise lifecycle and 3 yr warranty drive 3 year contractSONIM drives PROFITABILITY