From Pivoting Startup to Disrupting Scaleup Nanyang Consulting BEEKEEPER From Pivoting Startup to Disrupting Scaleup Presented to: Christian Grossmann and the Board at Beekeeper Presented by: Minghao, Victor, Vishnu, Daniela 20 May 2018

3 Internal & External Analysis 4 Strategic Alternatives Agenda Page 2 1 Problem 2 Recommendation 3 Internal & External Analysis 4 Strategic Alternatives 5 Implementation 6 Financial Analysis 7 Contingency Plan 8 Conclusion

Problem: Beekeeper faces three core issues that need to be overcome going forward Page 3 1 2 3 Lack of Vertical Focus Financial Pressure Scalability Which verticals should you focus on? How can you achieve profitability? How can you prepare for further growth? 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Recommendations: Three strategies will allow Beekeeper to overcome the problems and equip the startup for further growth Page 4 1 2 3 Vertical Integration Strategy Geographic Streamlining Restructuring Program The identified recommendations tie back into the underlying problems Lack of Vertical Focus Financial Pressure Scalability 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Internal Analysis: Beekeeper exhibits strong developed skills but faces organizational challenges that hinder growth Page 5 Strengths Weaknesses Strong mobile solution Established client base across industries Strong culture and values Customization skills Poor integration between sales and engineering teams Lack of vertical focus Short runway before next required funding round Lack of infrastructure and high costs in Zurich 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

External Analysis: Beekeeper operates in a promising environment with threats Page 6 Opportunities Threats Increasing mobile adoption globally More decentralized workforces with low engagement Increased focus on security of internal communications GDPR in Europe Increased competition in mobile solutions across verticals More hacking incidents 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Strategic Alternatives: Six strategies have been considered before determining the optimal path Beekeeper should take Page 7 + Good × Bad STRATEGY Profitability Scalability Strategic Fit Customer Fit Feasibility TOTAL Proportional Scaling of Staff × + Outsourcing of Engineering Acquisition of Competitor Vertical Integration Geographic Streamlining Restructuring 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Implementation (1/3): Vertical Integration Strategy Page 8 1 What Focus on hospitality, airports, mass rapid transit (MRT), event organizations and NGOs for increased focus 2 Why You play to your strengths in security and customization while focusing on poorly served verticals 3 How Allow current contracts for other verticals to expire and then, transfer customers into standardized options Develop a standard applications for NGOs, e.g. working with EcoFiltro in Guatemala as a testimonial case Make the pricing model of the standard application user-based (e.g. USD10 per month) Continue to offer customized solutions for hospitality and airport clients with focus on security and GDPR compliance Identify launch customers for MRTs (e.g. SMRT in Singapore) Customized-solution pricing model: Hosting/customization fee followed by yearly maintenance fees 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Implementation (2/3): Geographic Streamlining Page 9 1 What Streamline operations geographically with offices in Winterthur, San Francisco and Singapore 2 Why To reduce costs and have sufficient space for expansion plans and cater to all major geographical markets 3 How Identify a suitable location in Winterthur (Switzerland) for establishing a new European HQ and shift the London and Berlin offices for cost reduction reasons Maintain the HQ in Zurich until the Winterthur office is established and up and running Set up an office in Singapore with a core mass rapid transit team for serving test customers Have a sales team for standardized applications in Singapore for event organizations and NGOs 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Implementation (3/3): Restructuring Program Page 10 1 What Restructure the organization into two customer-centric solution providers by focusing on key verticals 2 Why To customize a solution for each vertical, communication between engineers and sales staff is key 3 How Share the restructuring plans transparently and timely with all employees and arrange small meetings with employees to clarify concerns Set-up an incentive program for a team-based performance approach Reduce the amount of HQ “generalists” and introduce a team of engineers, security and sales staff that specialize in a vertical Organize a team of entry-level sales staff to cater to NGOs and event organizations Organize a team of experienced engineers and sales staff to cater the customized solutions segment, e.g. hospitality and airports Create a communication channel to share customer success stories based on key verticals to educate the teams and for marketing usage 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Key Performance Indicator Key Performance Indicators: The following key metrics allow Beekeeper to keep track of the success of the suggested strategies Page 11 Key Performance Indicator Target 1. Number of pre-sales meeting with new key verticals 2. Percentage of sales from key verticals 3. Number of renewal of client contracts from key verticals 4. Cost reduction due to relocation 5. Retention rate of staff 6. Number of customer success stories per vertical 1. 20 per sales person per month 2. Increase from 80% to 92% 3. 70% in standardized solutions, 95% in customized solutions 4. USD1.9 million 5. 95% 6. 3 per vertical p.a. 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Timeline: The following timeline highlights how the suggested strategies should be implemented time-wise Page 12 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

New Investment Outlook: Financial Analysis: The suggested geographic streamlining will decrease the costs by approximately $2 million Page 13 All numbers are in Million US$ Cost Savings: $1.9M 14% Reduction New Investment Outlook: $3.9M 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Financial Analysis: We anticipate 60% expected user growth from the suggested strategies, with a 4x return on investment Page 14 Over 60% Growth Return of $12M vs. $3.9M Investment 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Contingency Plan: The anticipated risks underlying the suggested strategies need to be overcome to manage the risk adequately Page 15 Anticipated Risks Contingency 1. Loss of clients from old verticals 2. Poor take-up rate by NGOs and event organizations 3. Loss of staff due to relocation 4. Lack of test customers for MRTs 5. Decrease in motivation of employees due to restructuring 1. Increase the attractiveness of the standardized application (e.g. price incentives) 2. Prepare a strong success story case, e.g. EcoFiltro in Guatemala and Formula1 in Singapore 3. Provide relocation packages and support while adopting a phased approach 4. Approach multiple MRTs simultaneously, e.g. Hong Kong MTR 5. Use success stories to reduce resistance 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

Conclusion: The suggested strategies will allow Beekeeper to overcome the identified challenges and equip itself for the future Page 16 1 2 3 Vertical Integration Strategy Geographic Streamlining Restructuring Program The identified recommendations tie back into the underlying problems Lack of Vertical Focus Financial Pressure Scalability 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion

THANK YOU FOR YOUR ATTENTION Nanyang Consulting THANK YOU FOR YOUR ATTENTION We welcome any questions you may have. 20 May 2018