 The global language services market size: ca bln US$  Market is growing, but slower than predicted: 5.1% In 2011 about 7.1%, in 2012 about 12.1%  Expected to boost growth rates in the next years  Lionbridge Technologies the biggest company. But the market is still very fragmented (over LSPs) 2 Source: CSA, 2013

3 Source: Smartling  English % decreases  China/Asian % increases  In 3 years China added more users than exist for US  56% of online content in English  10 languages needed to reach 80% of the world online population

4  LSPs open offices in Africa (e.g.. CETRA, Rubric, TransPerfect)  Indian LSPs grow and expand  MLVs from Europe and US looking to outsource some business either to cut costs or extend coverage  Both regions not fully aware of language industry  Translation buyers are not mature, not enough training institutions

5 Source: CSA, 2013  Demand increased in most sectors  Significantly less demand from government sectors (US)  Interpreting getting trendy

6  Smartling received 24 mln $ in 3rd investment round (proxy server technology for globalizing websites)  Translation platform Gengo raises 12 mln $ funding (partnering with YouTube, 3Play Media, travel sites)  Safaba landed a first private equity financing round (MT for enterprises, e.g. Dell, Paypal)  Investors believe in companies that bring new approach to servicing translation buyers

7  Global markets  Mobile  CMS, IT  Big data  TM  Crowdsourcing  Agile, on demand  MT  Transaction platforms  Crowdfunding  Pools of cheap workforce  Automated workflow & QA  „Translation is a feature”  Social media

8 *Source: WinterGreen Research, 2013  Increased number of MT platforms and services for clients  MT supplements, not replaces other tools  More options to deploy MT workflows (self-hosted option, via API, SaaS, packaged software, do-it-yourself)  With MT getting matured, more content types will be covered by it  MT market value: 1.6 bln $ in 2012, will grow 6.9 bln by 2019*

9  Easy days for LSPs to grow their business is over  Industry develops (outside funding, employment growth)  Owners often need help: - to invest strategically in sales and marketing - to decide on technology solutions (TMS, CMS, automation) - to keep staff trained & motivated

10  LSPs get better ways to pay translators – Payoneer, TranslatorPay, TelPay)  Lingosec – solution to intercept requests to online MT and tokenize sensitive information  „Big data” turns into „big problem” – growing, not maintained TMs, glossaries & tendency to use QA tools create huge overhead for LSPs and translators  TM tools providers prefer APIs, not standards

Questions? Grzegorz Wójcik, MAGIT