sonim analyst deck 28 october 2011

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CONFIDENTIAL WORKFORCE-CRITICAL MOBILITY October 2011

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Sonim Technologies analyst and strategy presentation

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Page 1: Sonim Analyst Deck  28 October 2011

CONFIDENTIAL

WORKFORCE-CRITICAL MOBILITY

October 2011

Page 2: Sonim Analyst Deck  28 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

Page 3: Sonim Analyst Deck  28 October 2011

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

Page 4: Sonim Analyst Deck  28 October 2011

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

Page 5: Sonim Analyst Deck  28 October 2011

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

Page 6: Sonim Analyst Deck  28 October 2011

CONFIDENTIAL

6

THREE FUNDAMENTAL REQUIREMENTS Workforce-Critical Mobility Exists In Three Domains

ULTRARUGGED

BUILT-INSAFETY

TEAMSMART

WORKFORCE

CRITICAL

Page 7: Sonim Analyst Deck  28 October 2011

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

Page 8: Sonim Analyst Deck  28 October 2011

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

Page 9: Sonim Analyst Deck  28 October 2011

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

Page 10: Sonim Analyst Deck  28 October 2011

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

Page 11: Sonim Analyst Deck  28 October 2011

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

Page 12: Sonim Analyst Deck  28 October 2011

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

Page 13: Sonim Analyst Deck  28 October 2011

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

Page 14: Sonim Analyst Deck  28 October 2011

CONFIDENTIAL

STANDARD CONSUMER

WORKFORCE CRITICAL

RUGGED FOR SPORTS / PLAY

UNIQUE MARKET POSITIONSmart Teams In Ultra-rugged Environments

TRADITIONAL DATA CAPTURE

MARKET SIZE

PR

ICE

Page 15: Sonim Analyst Deck  28 October 2011

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

Page 16: Sonim Analyst Deck  28 October 2011

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

Page 17: Sonim Analyst Deck  28 October 2011

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

Page 18: Sonim Analyst Deck  28 October 2011

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

Page 19: Sonim Analyst Deck  28 October 2011

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

Page 20: Sonim Analyst Deck  28 October 2011

CONFIDENTIAL

20

USED BY LEADING ENTERPRISES WORLDWIDE

UTILITIES SECURITY / FM

TRANSPORTATION &LOGISTICS CONSTRUCTION HEAVY INDUSTRY

OTHERS

Page 21: Sonim Analyst Deck  28 October 2011

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

Page 22: Sonim Analyst Deck  28 October 2011

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

Page 23: Sonim Analyst Deck  28 October 2011

CONFIDENTIAL

ADDITIONAL SLIDES

Page 24: Sonim Analyst Deck  28 October 2011

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

Page 25: Sonim Analyst Deck  28 October 2011

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

Page 26: Sonim Analyst Deck  28 October 2011

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

Page 27: Sonim Analyst Deck  28 October 2011

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

Page 28: Sonim Analyst Deck  28 October 2011

CONFIDENTIAL

NFC battery cover accessory

• Proof of activity for Security Guards, Cleaning Crews

• Applications in dairy farming, home visit nursing

28

Page 29: Sonim Analyst Deck  28 October 2011

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

Page 30: Sonim Analyst Deck  28 October 2011

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

Page 31: Sonim Analyst Deck  28 October 2011

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

Page 32: Sonim Analyst Deck  28 October 2011

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