Neul | The Internet of Everything The Rise of the Machines Understanding the impact of M2M and the internet of things Paul Egan | VP Business Development Scottish Government M2M event | Glasgow | April 2013 Neul Ltd 2013 |

Neul - Introduction Our Ambition - ‘The Internet of Everything’  Started by the founding team from CSR & focused on wide area networks for Machine-to-Machine (M2M) communications  Neul has the ambition, vision and experience to deliver the Technology and Services needed to enable ‘the internet of things’  Our new & disruptive network, NeulNET, delivers benefits of operating in license exempt ’TV white space‘ as well as licensed spectrum  Special Interest Group (SIG) has been formed to develop an open, royalty free standard for M2M – ‘weightless’  We want to democratise access to spectrum & change the fundamental economics of building & operating wide area networks Neul Ltd 2013 | Page 2 | Copyright © Neul 2013

The applications for machines – 50 billion connections Neul Ltd 2013 |  Page 3 | Copyright © Neul 2013

GE predict the 3 rd Industrial Revolution  1 st Industrial Revolution  Mechanisation & Economies of scale  Started in the Great Britain  2 nd Industrial Revolution  Electronic Communications  Internet & World Wide Web  3 rd Industrial Revolution  The Industrial Internet  An opportunity for global growth  Enabled at scale, by white space? Neul Ltd 2013 | Page 4 | Copyright © Neul 2013

5 The Industrial Internet could boost annual productivity growth by 1-1.5% Over the next 20 years it could raise avg. incomes by an impressive 25-40% The Industrial Internet could add $10-15 trillion to global GDP over the same horizon – Equivalent to an economy of the USA What is the opportunity? According to GE = $10 Trillion Neul Ltd 2013 | Page 5 | Copyright © Neul 2013

The unit market is 20x that of smart phones Source: Thanki report, June 2012 (courtesy: Microsoft) Neul Ltd 2013 | Page 6 | Copyright © Neul 2013

Is this to be the rise of the machines...? Machines are different to humans... In some cases VERY different... Why make them use the same networks as us?... There will be many, many more of ‘them’ than us Machines communicate differently to humans... So what are the differences?... They don't have much to ‘say’... Most will communicate on a scheduled basis Or put another way... Why should we share our networks with ‘them?’

 Our connected future will start with machines like these... What will these machines look like? Neul Ltd 2013 | Page 8 | Copyright © Neul And Smart metering promises to be the first, real Internet of Things application to touch everyone in the UK

Applications Neul Ltd 2013 | Page 9 | Copyright © Neul 2013

Why now for machines and not before?  We are only now beginning to see the true value in data and the applications that use data – ask Google, Apple or the millionaire bedroom developer community  We have seen how an established eco-system for developers has changed smart phone App development and business models  The same opportunity exists for IoT/M2M  But we must tackle the barriers to M2M growth  Complexity - Coverage - Current consumption - Capacity – Cost  Required elements are  Ubiquitous low cost networks – Cloud processing – New business models  Partnerships & co-operation Neul Ltd 2013 | Page 10 | Copyright © Neul 2013

The Internet of Things time line...  This will have 3 distinct phases...  Phase 1 - Prove the business case for M2M  Discover value of data not just opportunities  Show what networks can do  Phase 2 - Build the eco-system – show the value  Provide platforms at scale for developers & early adopters  Foster innovation – devices, services & business models  Partnerships are key element – No one has all the pieces of the puzzle  Phase 3 - Enable the Internet of Things  Ubiquitous, low cost, low power chip sets  Make network & system deployments easy, cheap & demonstrate rapid RoI  First operator networks appear Neul Ltd 2013 | Page 11 | Copyright © Neul 2013

Neul white space M2M networks on 3 continents Japan 2 Networks A14 Road Trial Suffolk, UK Finland Belgium Cambridge, UK Singapore California London, UK May 2013 Bracknell, UK Canada Scotland Multiple Networks Alabama Texas And these are just the ones we can talk about Switzerland July 2013 South Africa Ireland May 2013 Page 12 | Copyright © Neul 2013 Philippines June 2013 Portugal June 2013 Tunisia November 2013 Kazakhstan July 2013 Italy September 2013 Neul Ltd 2013 |

In summary  No question - the next industrial revolution has started – Only the scale and timing is being debated  This will touch every humans life  It has the power for global good with little risk of ‘The Terminator’ scenario  One of the few, truly global opportunities for economic GROWTH!  Even if you don't believe the 50 billion device number, or the GE $10 trillion - M2M will be a significant driver of economic growth for the next 20 years...  It is happening – NOW! Neul Ltd 2013 | Page 13 | Copyright © Neul 2013

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