RFID A Zebra Perspective Marty Johnson

Facilitated & Broader Adoption Facilitated & Broader Adoption Is RFID Real.......This Time? Solution moving to next phase on latest adoption lifecycle … this time it is broader, and deeper RFID 2010 Shift from Understanding to Commitment indicates beginning of broader and facilitated adoption Facilitated & Broader Adoption Facilitated & Broader Adoption Committment Committment Understanding Understanding Awareness Awareness Innovators Early Adopters Early Majority Late Majority Laggards Source: VDC Research Webcast - 8/10 RFID & Barcode: State of the Industry

Customer Adoption Drivers Top RFID System Adoption Drivers Need for real time data Vs batch Gain competitive advantage Reduce operating costs Enhance security via RFID Technology price declines Better visibility of inventory position Compliance Reduce labor costs Financial ROI Visibility of other RFID success Source: ABI Research (annual RFID end-user Survey Report – Q1 2011

Global RFID Market Size Includes All Solution Components) 2009 2014 CAGR 2009-2014 $ MM % Share TRANSPORTATION $156.8 27.1% $558.8 18.9% 28.9% GOVERNMENT $103.8 17.9% $269.6 9.1% 21.0% CPG $128.9 22.3% $522.2 17.6% 32.3% RETAIL $53.5 9.2% $473.7 16.0% 54.7% COMMERCIAL SERVICES $29.3 5.1% $210.3 7.1% 48.3% AUTOMOTIVE $47.4 8.2% $83.1 2.8% 11.9% HEALTH CARE $19.7 3.4% $79.8 2.7% 32.2% ELECTRONICS $12.4 2.1% $46.8 1.6% 30.5% PHARMACEUTICALS $8.2 1.4% $54.7 1.8% 46.2% OTHER $18.9 3.3% $663.2 22.4% 103.8% TOTAL $579 $2,962 Verticals Continue to Evolve and Expand – Many Niche Applications Source: VDC Research Webcast - 8/10 RFID & Barcode: State of the Industry

Diverse Applications Driving Growth Supply Chain Management and Inventory Control Fashion / Apparel Luxury Goods Airplane parts Asset Tracking & LBS IT and Medical Equipment Vehicles, Containers, Pallets People Baggage Handling Airports Rail Marine Sensing / Monitoring Produce/Food products Museums/Artifacts Life Sciences/Pharmaceuticals Shop-Floor Automation Consumer Electronics WIP Automotive CPG Automatic Vehicle Identification Parking authorization Traffic control Registration

Where Are The Deals…….Retailers Not just the big apparel names Smaller retailers & specialty stores see same benefits & are getting engaged Example: Pawn shop with over 300 stores - need 1-2 printers per store Different set of decision-makers

Where Are The Deals……Retail Suppliers Currently: jeans, basics, intimates, tires Next: footwear & boxed electronics - TV, DVD, cameras, etc.) Picture courtesy Checkpoint Systems

Apparel RFID Tagging Example Apparel manufacturer encoding 1 MM tags/wk, 50M tags/yr 8 Printers, 200k tags/day, 5 days/wk On-pitch encoding reduces media costs by $750,000/yr A single printer encoding 25k labels/day will consume $500k of RFID media per year! Printer pays for itself in 2 weeks from media saving Throughput as high as 100+ tags per minute

Where are the Deals? Manufacturing Healthcare Relatively simple applications to gain visibility Healthcare More and more applications for specimen tracking are popping up

Specialty Printing Solutions High Performance Printers Mid-Range Printers Desktop Printers Patient ID Printer Performance Class Card Printers Security Card Printers Kiosk Printers Mobile Printers Specialty Supplies RFID Printer/Encoders Value Class Card Printers Retransfer Card Printers Label Design Software Networking Products Print and Apply Engines Printer Management Software Card Printer Supplies ID Solutions

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