October 7, 2015 COMPANY PUBLIC 1.

NFC Everywhere Controller, frontend, and connected-tag solutions for the next generation of NFC applications

The evolution of NFC NXP builds track record of success since 2002

October 7, 2015 COMPANY PUBLIC 2.

NXP and Sony co-invent NFC technology

2014

2015

2010 2006 2002

2012 2009 2004

NXP co-founds the NFC Forum to lead collaborations with industry stakeholders and help standardize the technology

Nokia 6131: Nokia launches the first NFC phone

NFC Forum releases Peer-to-Peer standards

Nexus S: Google launches the first Android NFC phone

Smart Tags flood the market, led by Sony and Samsung

Apple introduces iPhone 6 with Apple Pay using NFC technology

NXP ships the 1Bth chip to enable secure NFC transactions in smartphones NXP wins prestigious European Inventor Award for NFC

A steady growing number of NFC applications Creating wide ranging user experiences everywhere

Access

Payment Connected Home / IoT

Industry 4.0

Smart

Marketing

Smart Mobility

Gaming

Connected Car

NFC CAR ACCESS

ACCES HOTEL ROOM

UPGRADE GAME CHARACTER

October 7, 2015 COMPANY PUBLIC 3.

NFC TRENDS MOBILE PAYMENT

§  Tap-and-pay convenience

§  Enhanced security

§  Paperless receipts

§  Loyalty programs

§  Electronic coupons

§  Personalized messages

§  Support for PCI and EMVCo regulatory requirements

October 7, 2015 COMPANY PUBLIC 5.

More than 80 percent

of all NFC-enabled POS terminals use

NXP technology

MOBILE PAYMENT NFC for fast & secure transactions

October 7, 2015 COMPANY PUBLIC 5.

Recommended products Frontends: PN5180, MFRC522 Contactless reader: TDA8026

MOBILE PAYMENT Trends happening today in the Payment Industry

October 7, 2015 COMPANY PUBLIC 6.

2014

Apple introduces iPhone 6 with Apple Pay using NFC technology

First findings about the adoption of Apple Pay indicate a future for mobile payments, a key driver of the overall NFC adoption: ►  90% of iPhone6 users know Apple Pay

›  22% of iPhone 6 users tried Apple Pay ›  18% of these “frequent” users*

►  In average 2.5 cards/user were activated (only for the US population that would make 33M cards activated)

►  90% users reports using Apple Pay at POS; 10% in-app only

Source: First Annapolis Consulting, 2015 * Use Apple Pay >1/month

58 31 10

POS only Both POS & In-App In-App only

% % %

October 7, 2015 7.

›  Use NFC phone as payment card reader

›  Ultimate integration of mPOS

›  For merchants and private transactions

›  Supporting value-added interactions: Increase customer engagement, enhance customer service

›  Challenge to overcome: device security

MOBILE PAYMENT Smartphone integration: the holy grail?

MOBILE PAYMENT NFC simplifying the access to the contactless world

October 7, 2015 COMPANY PUBLIC 8.

mPOS ›  Secure accessory to a phone or tablet ›  Cost-efficient, portable and fast to install ›  Small merchants, taxis, POS-multiplication ›  50M installed devices by 2018

Computer & tablets ›  Tap-to-pay: Secure reader module inside the laptop,

convenience and new recharge services, e-banking ›  In-app payment: Credentials stored in secure area

(eSE), card emulation mode

Wearables ›  Smartcard or embedded secure element ›  Multi-applications possible (transit, access,…) ›  250M wearables expected in 2018 ›  Challenge: scalability

5

10

15

20

2014 2015 2016 2017 2018 2019

Growth in sales for mPOS devices (in Million)

NFC TRENDS ACCESS

ACCESS Simple & secure door locks

§  Tap-and-enter convenience

§  Enhanced security

§  Temporary access for specific people

§  Counterfeit-proof keys

§  Remote key distribution and management

October 7, 2015 COMPANY PUBLIC 10.

›  Compatible with NXP’s industry-leading MIFARE technology

›  Proven solution of choice in high-security access-management systems worldwide

ACCESS

October 7, 2015 COMPANY PUBLIC 11.

§  Advanced access features for private buildings

§  Faster access to hotel rooms

§  Virtual keys sent via email to smartphones

§  Grant temporary access to service providers, emergency personnel

October 7, 2015 COMPANY PUBLIC 11.

Recommended products Frontends: MFRC630 Controller: PR601

Other applications Building-automation networks AFC (public transport) Virtual access (gaming)

Low-power card detection: The reader terminal’s microcontroller enters sleep mode while still polling for cards

NFC TRENDS NFC IN THE IoT

October 7, 2015 13.

Pervasive wireless infrastructure and the proliferation of smart mobile devices are enabling real-time interaction across devices and application platforms like never before.

* ABI Research, 2013

1.7 billion NFC-enabled

smartphones in the market by 2018*

Thanks to the versatility of NFC technology, its growth is not only forecasted for NFC-enabled handsets but also for many other form factors using NFC for secure connectivity.

In total, more than 800M non-phone NFC enabled devices in 2018*

Everything connected: 1B+ additional consumers online, 50B+ connected devices - NFC‘s tap-and-go experience makes living in a multi-devices world much more convenient.

3 Internet connected devices/person

47% of 25-34 year olds have 4 or more

devices**

** AVG 2013

§  Tap-and-go experiences

§  Faster product registration

§  Quick pairing with Bluetooth and WiFi

§  Extended user interfaces

§  Personalized settings

§  Parental controls

§  Authentication and access rights

§  One-step payments

§  Easy access to online maintenance

§  Efficient data tracking

§  Interactive and personalized advertising

October 7, 2015 COMPANY PUBLIC 14.

Redefining the at-home environment

October 7, 2015 COMPANY PUBLIC 14. October 7, 2015 COMPANY PUBLIC 14. October 7, 2015 COMPANY PUBLIC 14.

Recommended products Frontends: PN512, CLRC663 Controller: PN7120, PR601 Connected tags: NTAG I2C

INTERNET OF THINGS Use cases for NFC

INTERNET OF THINGS NFC for Smart Homes

October 7, 2015 COMPANY PUBLIC 15.

TAP AND CONNECT NFC provides simplicity for the entire home network. If all devices and objects are equipped with NFC tags, a simple tap is all it needs to exchange credentials and connect them with each other.

The connection can either be established through a Smart Home Gateway or by using an NFC-enabled smartphone.

INTERNET OF THINGS Smart Homes, a complex issue

Home automation network today: §  Many standards compete (ZigBee,

Bluetooth, WiFi, Z-Wave etc.) à complex commissioning and de-commissioning

§  Large population of ODM/platform

§  Remote security hack possible

§  Large population of ODM/platform

Home automation with NFC: ›  Platform agnostic: NFC supports any kind of protocol

and a large population of smartphones and tablets

›  Plug and play: NFC network keys can be exchanged with a single tap whatever the supplier is

›  Power savings: NFC tags don’t need its own battery

›  Scalable: Smooth commissioning and de-commissioning

›  Confidential: Key exchange via proximity; increased security if secure element added

INTERNET OF THINGS Smart Homes made easy with NFC

NFC TRENDS AUTHENTICATED REDIRECTION

AUTHENTICATED REDIRECTION Consumable experience with NFC

An NFC tag chip, designed into the product, provides part number information, as well as websites for ordering replenishments.

Consumer taps the product to retrieve consumable part information and is directed to an online source.

Authentication of current consumable and supplier identification occurs via the cloud.

àonly authorized parts listed

The authorized replacement part arrives on the customer’s doorstep.

Benefits for OEMs

›  Automatic expiration notification

›  Product authentification against counterfeiting

›  Lead generation

›  Real-time analytics

›  Promotion vehicle

Benefits for consumer

›  Built-in counter

›  Verfication of the correct model

›  Ensuring genuine replacement

›  Convinience through list of participating e-Retailers

October 7, 2015 COMPANY PUBLIC 20.

AUTHENTICATED REDIRECTION Consumable authentication with NFC

80 percent of all NFC-equipped

smartphone models use NXP technology

NXP’S NFC PRODUCT PORTFOLIO

A portfolio of solutions like no other

October 7, 2015 COMPANY INTERNAL 22.

Secure element ›  e.g. PN65T

NFC frontend solutions ›  Full NFC Forum

compliance (e.g. PN512) ›  High-performance (e.g.

CLRC663) ›  Standard-performance

NFC tag solutions ›  NTAG ›  NTAG I²C ›  NTAG F

TDA80xx contact smartcard reader ICs

NFC controller solutions ›  Firmware included

(PN7120) ›  Customizable (PR601) ›  Mobile application only

(e.g. PN547)

NXP has built track record in smart security

#1 Bank cards With 48% market share, NXP is market leader in payments

#1 Smart mobility (MIFARE) cards Worlwide more than 730 cities use MIFARE for their transport ticketing schemes

#1 Readers 90% market share in POS, 150M contactless readers sold into the market

#1 eGovernment

55% of all electronic identity documents worldwide are secured by NXP

#1 Tags & Authentication & Gaming

NXP holds >80% market share in NFC tags

#1 Mobile

More than 80% of all NFC-equipped smartphone models use NXP technology

#1

October 7, 2015 COMPANY PUBLIC 23.

NFC is about the system solution

24.

TECHNOLOGY • NFC hardware & software and application solutions

• Certified Secure Elements • Root of Trust from Silicon fabrication Loader service

• JCOB / Secure multi application smart card OS

• Secure Services Development Platform with open APIs

ECOSYSTEM RELATIONSHIPS •  Relationships with players across

the value chain (service providers, regulators, certification labs, IDHs)

•  Leadership in key ecosystems such as: - transit (e.g. Oppo / Alipay transport solution), - payment (e.g. Verifone, Ingenico) - and access management (e.g. HID, Tapkey)

TRUSTED ADVISOR • Driving security innovation for financial institutions

• Advisor to >140 banks, incl. every top tier bank

SUPPORT • Reference designs • Customer trainings • Support for certifications • Network of partners • DIY & online tools (libraries, SW)

CONTACTLESS PERFORMANCE • Operating distance • Multi protocol support • Transaction time / highest transfer • Interoperability with legacy infrastructure

COVER PAGE SUBTITLE PLACEHOLDER

COMPANY CONFIDENTIAL

Thank You

COMPANY PUBLIC October 7, 2015 25.