Techstep ASA — Investor Presentation 2014

Sep 24, 2014

	Introduction
$\overline{2}$	This is Birdstep
$\overline{3}$	Financials and structure
$\overline{4}$	How to become market leaders
5	Our targets
6	Meeting market demands
$\overline{7}$	Revenue model
8	Vision & Execution

Birdstep SmartGrowth 2014

Investor Presentation

Headquartered in Oslo

• Listed on Oslo Stock Exchange since 2002 (BIRD)
• 66 employees
• Offices in Norway, Sweden, Finland, UK, Asia and the US

Largest Shareholders	Base	Holding
POD	SWE based Investor	$26\%$
Sophrosyne	US based investor	$8\%$

Financials 2014

$Q₂$

Revenue was NOK 19.9 (17.3) million, representing an increase of 15.0 % over the same period last year.

EBITDA ended at NOK -1.2 (-0.6) million, representing an increased loss of NOK 0.6 million over the same period last year.

Continuing operating earnings per share amounted to NOK - 0.03 (-0.04).

Total net cash flow amounted to NOK 1.0 (-4.4) million.

Cash balance was NOK 15.1 (7.0) million.

$H114$

Revenue was NOK 39.2 (35.6) million, representing an increase of 10.2% over the same period last year.

EBITDA ended at NOK -1.6 (1.1) million, representing an increased loss of NOK 2.7 million over the same period last year.

Continuing operating earnings per share amounted to NOK - 0.05 (-0.03).

Total net cash flow amounted to NOK -7.2 (-10.0) million.

Increased projects = more resources Saving cost and growing the business

© Copyright 2013 Birdstep Technology ASA. All rights reserved.

MNO's are trying to find ways to decrease cost, increase revenues and get higher up the value chain

Engines of growth

HetNet strategy

LTE launch to monetising assets

User experience on all access technologies

Drive into new segments agnosticly

MNO's leading in OTT products and offer additional services

MNO's are taking policy on to the handset and want to combine this with continuity of experience or provide policy via innovative companies

Birdstep Product Fit $\mathbf{z}$

Intelligent Network Selection Decreasing costs, moving consumers onto access points with increased margins.

Analytics

Understand consumer behaviour, even if not on Cellular networks,

to optimise experience, continuity and Po

MVNO

TODAY

Costs are critical, which means proving high quality service delivery at as low cost as possible and skip interconnection costs.

MVNO's should make use of lower delivery mechanisms i.e. Wi-Fi. Particularly if the MVNO has Wi-Fi infrastructure or access to Wi-Fi, they can be more entrepreneurial and open to innovative technologies.

Engines of growth

experience on all access technologies PUIPOSES

Drive into new

Keeping consumers

OTT products additional services

Intelligent Network Selection Reducing ihterconnection and MVNO costs

Analytics Understand consumer behaviour ties back to policy to optimise

experience continuity and uses big data for resales

Service Delivery

Taking Policy onto the handsets is easier to deploy and MVNO lend themselves to this model

OEMS

TODAY

for differentiation.

OEM need to build and protect brands, increase awareness and make connection easy.

Engines of growth

Reinforcing message about HetNet strategy and always smartest connected

Large screen OEM requiring always connected to extend lifecycle of product

Small screen OEM revenue opportunities for managed Wi-Fi for Wi-Fi only devices

OEM's providing OTT services and control/support

More upsell & cross sell to consumer

Using analytics to gain deeper insight in to customer habits

Birdstep Product Fit

Intelligent Network Selection - better QOE, better brand awareness

Mobile Advertising driving further awareness and new products

Analytics understanding how brand is used. feed back for improvements, advertising etc

Service Delivery tricky one this because the OEM is likely to want to bring this to market themselves because it supports need to control services

MSOs

TODAY

A competitive space and offering where branding and leveraging OTT offerings is key, while using Wi-Fi to differentiate against mobile operators

In order to extend brand MSOs are looking to increase connection to their customers and finding other revenue models

Engines of growth

Using Wi-Fi in public or private to enhance out of home experience

Decreasing Roaming costs through INS and providing platform for overseas

Managed service approach to increase B2B Wi-Fi for revenuesharing opportunities

The competitive environment invigorates need for MSO to use or build WI-Fi capabilities

Analytics

Allows MSO's to understand consumer behaviour similar to MNO's. Optimise policy.

Birdstep Product Fit Intelligent Network Selection

Extending customer reach, competing against competitors by keeping customers on their services and applications. Utilising WiFi networks keeping clients tied in with MSO applications.

Service Delivery -Taking Policy onto the internal support costs,

handset, reducing and potentially roaming capabilities

Mobile Advertising

OTT offering to support

MNO's revenues, build

brand awareness and

extend reach into retail

IoT Connected Cars

TODAY

Still in an early stage. Intelligent
Network Selection and need for Wi-Fi policy hasn't been considered enough.

Distinct networks infotainment, emergent, hotspot and OEM telematcis through technologies and approaches which will need security/harmonisation.

Engines of growth

HetNet strategy is vital for the car

Security measures required between networks, between modems and car TCU

Explosion in content and telematics services

Pricing plans is going to enable a new economic model

Policy in vehicles to determine content download, firmware uploads over Wi-Fi

Platforms in place for advertising directly into vehicle

Birdstep Product Fit

Intelligent Network Selection: Using Wifi could be critical to success of connected car, bringing continuity of experience and meaningful business models and pricing plans

×

Analytics: Understanding of customer behaviour for OEM, MNO and platforms as well as third parties

Service Delivery: Taking Policy onto the car potentially defining network resources, continuity of experience etc

Mobile Advertising: OTT offering to support stakeholder revenues, build brand awareness and provide car related offers

Secure Mobility: Secure environment between networks. All products brought together through ODB ports on open architecture

birdit

Earning recognition

"Birdstep is one of a small handfull of companies
capable of delivering solutions that effectively address
the need "

I
Global Senior Mobile Broadband Analyst

"We are excited to include Birdstep's innovative
solution as part of our HP DataPass service, we can
bring innovation to market by making it easy for our
customers to connect to what is important to them,
regardless of the

Todd Achilles Vice President of Mobile Connectivity at HP

"It's like having my clinic and office in my bag. It (SafeMove) gives me access to my office and clinical tools wherever I am in Rotherham and I now have more time for my patients. Certainly an IT friend of clinicians for once."

Paul Chapman Clinical Systems Engagement Lead The Rotherham NHS Foundation Trust

"By auto-connecting securely to the Thames Water network, and seamlessly remaining connected over the best available cellular, Wi-Fi or wired network even during breaks in network availability, SafeMove has provided the ideal remote access solution."

John Penicud Benefits Manager, Transformation and Change, Thames Water

© Copyright 2013 Birdstep Technology ASA. All rights reserved.