Brand New World Connecting the World and the People

to empower Everyday Genius

A Global Mass-marketplace

36%

28%

28%

8%

2009 1.8B

MIDDLE-CLASS POPULATION GROWTH (%) IN DIFFERENT REGIONS

Asia Pacific

Europe

Africa

Americas

Source 1) OECD Development Working Paper no. 285, January 2010, 2) Yankee Group Forecast, February 2014

14%

13%

66%

7%

2030 4.9B

Shifting Center of Economic Gravity

2009

2020

2030

32596

4952

14798

796

256

1966 827

1321

448

5602 5863 5837

1534

3117 2315

8138

10301

11337

Asia

Europe

North America

Source 1) OECD Development Working Paper no. 285, January 2010 2) Yankee Group Forecast, February 2014

MIDDLE-CLASS TOTAL SPENDING (US$B)

A More Equal Opportunity World

LOW HIGH MID

INVERSION OF THE CAMELBACK MARKET

The Rise of the Super-mid Market

6

MOST BASIC

LOW

MASSIVE GROWTH

SWEET SPOT TOP SPEC

MID HIGH

Enabling the Next Billions of Internet Users

Developed Countries + Emerging Countries 1 billion + >6.4 billion!

N. America 353 mn W. Europe 446 mn

Japan 127 mn China 1.4 bn

India 1.3 bn Asia 1.6 bn

Russia 144 mn

(Excl China & India & Japan)

CEMA 1.3 bn (Excl Russia)

Latin America 618 mn Australia / New Zealand

28 mn

Source: World Population Bureau (2014)

Connecting the Things Around Us

01

Mainframe 1M+ Units

Minicomputer 10M+ Units

Desktop Internet 1B+ Units / Users

PC 100M+ Units

Internet of Things Tens of billions of Units

Mobile Internet Billions of Units

Device / Users (MM in Log Scale) Cloud-centric Devices-centric

HELLO EVERYTHING!

Welcome, Boundless Opportunity! Sensors, Processors, Wireless

technology and the Cloud are at an inflection point where massive new markets can be created cost effectively

Users expect a seamless, smartphone connected, experience from all devices around them

HELLO EVERYTHING! But...where are we now and what’s next?

Brand New World

12

The Big Picture

Brand New World ∞

Transition “glitch”

2025 2005

Historic

BIG BANG

There will be massive evolutionary impact, let’s look into it.

Brand New World: Device Evolution

13

Historic Standalone Devices

Transition Connected Devices

Brand New World Unified Devices

CrossMount™ A new device paradigm for the Brand New World

Multiple unified devices combine their functions to become a more capable one, enabling new applications

Pooling whatever software and hardware resources that are available to the user

Higher resource utilization & completely new capabilities

Brand New World: Business Evolution

15

Transition

t

Oppt #

+4m +4m

Historic Oppt #

+12m +12m

TTM TT Peak Volume

t

Brand New World

t

Oppt #

+1m +1m

t

Sustainability

Idea Success

The zone of uncertainty

Brand New World Increased opportunities for success

Lower threshold for new product development

Sustainability

Idea Success

The zone of uncertainty

IOT opportunity space More connected things More applications More systems integration A larger market & higher volumes

IOT, It’s about Connecting the World and the People that Call it Home

New Apps New Services New Devices

Universal IOT Driver: Wireless Technology

Enterprise / Embedded

Sensing and controlling; Industrial, Health Care,

City, Energy, Transportation…

TV / Setup Box

Smart Home

Automotive

Connected Car

Mobile

Wearable

Leveraging the Advantages of the Mobile Industry

Massive Developer base Mobile Experience Economic Scale

Providing the Right Information @ the Right Time

Wireless Connected Smart Home

Mobile Workplace & Client Services

Embedded Technology Enhancement

Collaboration Needed Across the IOT Value Chain

Machine Appliance Car

Connected Objects

Network Connectivity Availability

Network Operator

SIM card Sensor Actuator

Building Blocks

Packing / bundling Service Provisioning CRM

Service Provider

Interfaces Solution build-up Hardware/Software

Service Integrator

Customer

Buyer User

Segment Partnerships Needed to Deliver the Best User Experiences

Key Technologies and a Partnership Mindset

Turn-key Platforms Ubiquitous Connectivity

Advanced SOC’s Leading Multimedia

Brand New World A more inclusive place

The end of the static mass-market and the beginning of a responsive mass-enabled world

Do what you desire

Make what you imagine

Interact with everyone and everything

Reduced friction in the value-chain Increased opportunity for users and businesses alike

Greatly boosted innovation and productivity Human interaction network effect

A truly responsive world