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Capital Markets Day

Agenda

© Copyright 2011 Birdstep Technology ASA. All rights reserved. 2

The Future

Current Status

What have we accomplished?

Status & Outlook Anders Harrysson 1

The Market Anders Storm 2

Smart Mobile Data Solutions-Michael Jönsson 3

Secure Mobility Solutions - Sanna Tiilikainen 4

Summary Anders Harrysson 5

© Copyright 2011 Birdstep Technology ASA. All rights reserved.

Welcome

> Anders Harrysson, CEO

> Anders Storm, VP Engineering & Operations

> Michael Jönsson, VP Sales Smart Mobile Data

> Sanna Tiilikainen, VP Sales Secure Mobility

30 minutes each


A leading provider of Smart Mobile Data and

Secure Mobility for operators, enterprises and

governmental organisations.

> Our Smart Mobile Data services offer

advanced solutions for data offload, support

automation and end user communication to

network operators.

> Our Secure Mobility services offer solutions

providing seamless and secure connectivity

to business data for corporations and

governmental organisations”

Birdstep Technology ASA


> Listed on Oslo Stock Exchange

> 65 employees

> Offices in Norway, Sweden, Finland

and the United States

> More than 40 operators and 8 million

clients deployed globally

> Tier 1 partnerships and OEM

relationships worldwide

> 70 customers within State

Government, Banking & Finance,

Healthcare, Cities & Municipals and

Enterprise

Quick Facts


> Last CMD August 2010 – May 2011

> May 2011 – May 2012

> Current Status & Plans going forward

One year Anniversary


> Spun off Non-core assets.

Completed in December 2010.

> Cash position secured.

25,7 MNOK Year End 2010

> Focus on two businesses

> Smart Mobile Data

> Secure Mobility

August 2010 May 2011


Two Product Businesses

> EasyConnect (Now smart Mobile Data)

> Connection Management

on USB Modems

> Slow Growth

> SafeMove (Now Secure Mobility)

> Saturated Finish Government market

> Failing International Expansion

Little focus on fast growing Android and

IOS markets

May 2011


> Reorganisation to simplify and clarify

> New Management system

> Processes

> Delegation of Authority

> Business control

> New and refocused product strategy by October 2011

> New Pricing strategy by December 2011

> Channel Strategy for reach and sales leverage

> Cost savings step 1

> Organisational efficiency

> Use of Subcontractor

Actions taken Q3 and Q4 2011


Reorganisation completed New Management Team

Maria Johansson

Global HR Manager

Anders Storm

VP Engineering

& Operations

Sanna Tiilikainen

VP Global Sales,

Secure Mobility

Anders Harrysson

CEO and President

Marie-Louise Nilsson-Kanon

VP Market Communications

Michael O. Jönsson

VP Global Sales,

Smart Mobile Data

Sophie Rabenius

Chief Financial Officer


> Investment in new products - Done!

(Q3/2011-Q1/2012)

> Sales transitioning from old products to

new products

> Q3,Q4,Q1 – lower revenue than desired

> Cost reduction program step 2 under

implementation – 19 MNOK

> New Products

> EasySmart for Android and IOS and soon

Windows8-Metro

> Mobile Security for Government

(high security requirements)

> Mobile Security for Enterprises

(regular security requirements)

Current Situation


Financial Dynamics


> Continued Focus on rapidly growing markets > Android

> IOS

> W8-Metro

> Continued investment in North America

> Ambition to show a balanced P/L

> Ambition to show positive cash flow

Future


Questions?

We believe we got it right this time!

The Market

Anders Storm


Anders Storm

16 years experience from Data and

Telecommunication. Brings to Birdstep an

extensive background in Product development,

Engineering and Operations.

Introduction VP Engineering and Operations Birdstep


Background

Re-cap Nov 2010

> One Operator product

addressing USB and embedded

2G/3G modems for Windows

and MAC

> One Windows based Mobile

VPN product for public sector

> 87 Million USB Modem shipped

in the world

Birdstep


May 2012

> Market insight!

> What have we done and why?


Mobile Broadband is now Mobile Data

Laptop / desktop + USB

WiFi

only

Hotspots “Routers”

Smart

phones +

tablets +

Laptops

USB

With built-in 2G/3G/4G

C:/Users/lmetobe/AppData/Local/Microsoft/Documents/Strategy Presentations/Ballmer iPhone.mp4



Million units 2010 2011* 2012* 2013* 2014* 2015* 2016*

Europe 26,6 30,4 34,1 37,5 40,3 43 45

EU Growth rate Y&Y 14% 12% 10% 7,5% 6,7% 4,5%

North America 6,3 6,4 7,2 8,5 10 11,5 14,5

NA Growth rate Y&Y 1,5% 15% 18% 17% 15% 26%

Total EU and NA 32,9 36,8 41,3 46 50,3 54,5 59,5

Total market 87,7 103 119 135 150 165 180

USB Market 2010 to 2016

Berg Insight September 2011

* Predictions


Gartner: Smartphone OS sales to end users

* Prediction

Million units 2011 2012* 2015*

Symbian 89,9 32,7 0,7

Android 180 310 539

BlackBerry 62,6 79,3 123

iOS 90,6 119 190

Windows 26,3 68,2 216

Others 18,4 21,4 36,1

Total 468 631 1105

Smartphone sales 2011-2015

75% Growth

75% Growth

7x > USB market


Gartner: Tablet sales by OS (April 2012)

* Prediction

OS 2011 2012* 2013* 2016*

iOS 40 72 99 169

Android 17 37 61 137

Windows 0 4,8 14 43

Other 2,7 3,1 6,6 18,4

Total: 59,7 116,9 180,6 367,4

Tablet sales 2011-2016

200 % Growth

2x > USB market


World-wide Smartphone marketshare %

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

Android

iOS

Symbian

RIM

Bada

Windows Phone

Other


Legacy OS used March 2012


Market Conclusion

Our future Market 10X



Secure Mobility

The Future for Secure Mobility


What are the trends in Secure Mobility

> BYOD = Consumerization > Borderless networks > Expanding Mobile Workforce > SaaS > Virtualization > Cloud


> SafeMove Clientless SSL VPN

> BYOD = Consumerization

> Borderless networks

> Expanding Mobile Workforce

> SaaS

> SafeMove Mobile Access (iPad, iPhone, Android)

> BYOD = Consumerization

> Borderless networks

> Expanding Mobile Workforce

> Virtualization

New Products


Where do we see the future in Secure Mobility?

> True seamless mobility through MIP solutions

> Portable hi-security on USB and Handsets


> SafeMove Mobile Router

> Embedding Birdstep Mobile IP

solution on Routers for true

seamless mobility

> SafeMove Portable hi-Security

> Embedding Birdstep IPSec and

Mobile IP solution on USB and

Handsets/tablets

New Products


1st dimension

2nd dimension

Secure Mobility product strategy in two dimensions

”public sector”

New

Enterprise incl public sector

Users

Employee

Devices

Company issued laptop

Connectivity

Network selection

Seamless

TCP access

Data Center

FIPS 140-2

Standards compliant

Availability

Scalability

Client management

Users

Employee

Contractor

Devices

Company issued laptop

Home computer

iPhone/iPad

Android phone/pad

Windows phone

Connectivity

Network selection

Seamless

Wi-Fi management

WWAN management

IPv6

TCP access

Application Control

Data Center

Cloud

IPv6

Managed services

FIPS 140-2

Standards compliant

Availability

Scalability

Client management


Secure Mobility Products 2010-2012

Q4 Q2 Q1 Q3 Q1 Q4 Q2 Q4 Q3

2010 2011 2012

SafeMove

5.4

SafeMove

Clientless

SSL VPN

SafeMove

Mobile

Access

(iOS,

Android)

New

”Old”

SafeMove

Portable

Security (Embedded)

SafeMove

5.6

SafeMove

6.0

SafeMove

Mobile

Router (Embedded)


Smart Mobile Data

The Future for Smart Mobile Data!

Our customers´ top pain points

Data Boom

Rising Support Cost

Quality of Experience & Churn

Device Diversity

New Technology


The Data Boom

Over all mobile data traffic is expected to grow to 10.8 Exabytes per month by

2016, an 18-fold increase over 2011


Data Boom Off-load to WiFi

Do not forget

“off-load” to 4G


Smart Mobile Data strategy in two dimensions

12%

88%

OLD

NEW

1st dimension

2nd dimension

2012

10x = 1 Billion

MBB devices

2015

1,5 Billion

2012

12% = 116 M

MBB devices


Smart Mobile Data Products 2010-2012

Q4 Q2 Q1 Q3 Q1 Q4 Q2 Q4 Q3

2010 2011 2012

EasyConnect

3rd Gen

EasySmart

Android

1st Gen

EasyConnect

3rd Gen

+LTE

EasySmart

Android

1st Gen

Advanced

EasyHelp

1st Gen

EasyConnect

3rd Gen

+Win 8

EasySmart

iOS 1st Gen New

”Old”

EasyAnalytics

1st Gen

Smart Mobile Data 2012 2013 Michael O. Jönsson


Michael O. Jönsson

> Been active in the Telco arena since 1989 and

brings to Birdstep an extensive background in

international sales and business development

within the IT and Telecommunications sectors

world-wide.

Introduction VP Global Sales, Smart Mobile Data

Sales Strategy 2012 - 2013


Customer Cases 4

Sales Reach and Partner Approach 3

Target Operators and Geographic Focus 2

Market Drivers and Birdstep Portfolio 1

Summing Up 5

Operators top pain points

Rising Support Cost

Quality of Experience & Churn

Device Diversity

New Technology

The 2nd Generation Data Boom

Issue: > Data growth far out-strips revenue growth

> Device growth is high - more and more

devices are data enabled

> Operators running out of Capacity &

Frequency

> Data usage when Roaming -> Shock-bills

for End Users

Solution: > Intelligent and automatic off-load to

WiFi

> Multiple solutions for credential handling

> Support for WiFi Roaming


Android and iOS Smart Phones are the Drivers


Example of the data growth


Making Wi-Fi an extension of the mobile

network

> Client application for Android and IOS

handsets and tablets.

> Enables Intelligent and hassle-free off load to

WiFi

> Access to Mobile Core Services when

connected over WiFi (IWLAN - Android only)

> Other Key features:

> Congestion & Power Mgmt

> User Account Self Management

> Roaming and quota threshold warnings

> Tethering awareness for operator

> Operator brand awareness

> Statistics and reporting

EasySmart at a Glance: Data Off-load to WiFi

Rising support costs



Automated self repair and diagnostics Minimizing operator support costs

> An easy-to-launch solution supporting mobile

broadband self-repair & diagnostics

> Supports / Provide:

> Call Avoidance

> Call Routing

> Call Resolution – Faster

> Through diagnose and self repair:

> Device testing and repair

> Network testing and repair

> Computer testing and repair

> Client testing and repair

> Provide easy-to-understand feedback

> Enable rapid call center support resolution

EasyHelp at a Glance: Reduce Support Cost


Low Quality of Experience = High Churn

End-users having unrealistic

expectations of Coverage

Marketing is expensive, and has

limited success.

Operators today spend up to 25% on marketing – often to replace churning

users

Most cases could be mitigated through

proactive Customer Communication

> 50% Churn if Perceived QoE is

lower than expected


The Evolved Connection Manager

> Fast and intelligent multi-network handling with data

offload

> 2G, 3G & CDMA & WiFi

> LTE & WiMAX

> Essential functionality for Mobile Broadband:

> Connectivity & Effective Off-load

> Cost Control

> Dynamic End User Communication

> Remote client management server

> Self-service subscription management

capabilities

EasyConnect at a Glance: Reduce Churn & Increase ARPU


Target Customers

Finding the Sweet-spots

> Operators & Service Providers above a certain

minimum size

> Evolved & Mature (Market & Customer)

> Experienced Pain-points

> Focus on Quality of Experience

> Capacity and/or data roaming issues

> At least some initial thoughts around WiFi

> Relatively high cost per man-hour for support

Geographical Focus & Presence


Europe

Mobile Operators / MVNO’s

System Vendors/Integrators

Southern Africa

Mobile Operator

SI Partners

North America

Major Mobile Operator

Major MVNO’s

System Vendors / Integrator

SE Asia

Through Major partner

ships


Global Vendors > Part of overall IWLAN data off-load

solutions offered to Operators

> They become Globale Value Added Re-

sellers for Birdstep

> Example: Just signed Global VAR

Agreement with leading Telco Vendor

Birdstep Partner Strategy & Approach

Technology Partners > Partners taken in / needed to complete

portfolio for Birdstep and vice versa.

> Examples: Ciqual (UK) and Telespree

(US)

Regional & Local SI > Primarily needed to create sales reach,

and to take deal in given region / country

> Birdstep sometimes becomes part of

overall solution

> Example: Ericsson for the AMX Deal

Sales Partners > Partners providing senior sales executes

with high level contact

> Providing local ”Birdstep” feet on the

ground

> Examples: Tritech (North America)

& Actel (SE / NE Asia)

Customer Cases & Success Stories

Customer Cases


CASE

56

Intelligent & Effective Data Offload

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

80,00%

90,00%

100,00%

9-hrSum

10-hrSum

11-hrSum

12-hrSum

13-hrSum

14-hrSum

15-hrSum

16-hrSum

17-hrSum

18-hrSum

19-hrSum

20-hrSum

21-hrSum

Busy hours data offload with Easy Smart

3G data without EasySmart 3G data with EasySmart

Customer

> Tier 1US based Mobile Operator

> Selected Birdstep as solution for

Android based Tablets & SmartPhones

Challenge

> Capacity challenges in Network

> Intelligent Off-load from 3G to WiMax

and Wi-Fi

Solution

> EasySmart deployed - Successfully

> Now more than 1 Million Clients


CASE

57

Leading European Operators to Reduce Customer Support cost through EasyHelp

Customer

> Leading European Mobile Operator

Challenge

> Support Cost for their Mobile Broadband

Services is dispropotionately high.

> Have their own in-house proprietary

Connection Manager.

Solution

> EasyHelp deployed (tril stage)

> Reults confirm significant cost

savings


CASE

58

Mitigating Risk when introducing LTE & prepare for WIN8

Customer

> European Mobile Operator

Challenge > Support of LTE

> Off-load between 3G, LTE & WiFi

> Ready for WIN8 (Classic)

> To reach to end customer in terms of

Marketing & Upsell

Solution

> Deploying EasyConnect 3.3 on all new devices

> Upgrade installed base to EasyConnect 3.3

> Use back-end EMS Server to push out Marketing

Banners.

59

Why choose Birdsteps Smart Mobile Data Solutions:

EasyConnect:

> Evolved Connection Mgr

> Fast and intelligent multi-

network handling

> 2G, 3G, CDMA & LTE

> LTE & WiMAX

EasyHelp:

> Easy-to-launch solution for

self-repair & diagnostics

> Supports / Provide:

> Call Avoidance

> Call Routing

> Call Resolution – Faster

> Reduce overall Support

cost

EasySmart:

> App for Android and IOS

handsets and tablets.

> Enables Intelligent and

hassle-free off load to WiFi

> Access to Mobile Core

Services ected over WiFi

(IWLAN - Android only)

Reduce CAPEX/OPEX Increase ARPU with

Birdstep Secure Mobility products Sanna Tiilikainen


Sanna Tiilikainen

Brings to Birdstep more than 10 years of

experience in international mobile telecom and

IT industry (Nokia, TBWA, Symbio, Valimo).

Introduction – VP Global Sales SafeMove

Sales Strategy 2012 - 2013


Customer Cases 4

Sales Reach and Partner Approach 3

Target Customers and Geographic Focus 2

Market Drivers and Birdstep’s Portfolio 1

Summing Up 5


Secure Mobility Main Drivers

BYOD = Consumerization

Bordeless networks

Expanding Mobile Workforce

SaaS

Virtualization

Cloud


Secure and Seamless Connectivity for Mobile Workers

> Provides outstanding security with built-in

connection management!

> Zero-click connectivity

> Seamless roaming

> Session persistence

> Solid security

SafeMove Mobile VPN Secure Boarderless Networks


Easy and secure access from mobile devices to the enterprise network

> Easy and secure access to the enterprise

network

> Available for Apple iOS and Android devices

> Leverages built-in VPN clients on mobile phones

and tablets

> Operated as a Service

SafeMove Mobile Access BYOD is not a problem anymore

*Launched 25th April 2012


Easy and secure access to the enterprise

network for occasional connections

> The SafeMove clientless SSL VPN

solution enables easy access to

corporate internal networks, file systems

and web-based applications from any

standard web browser

SafeMove SSL VPN: Expanding mobile workforce

*Launched 23rd May 2012


> Government organizations with high

security needs: defence, police, health

care, boarder control

> Field force organizations with demanding

mobility needs

> Large and middle-sized private sector

corporations in various industry sectors

with a lot of mobile workers

> Focus will be on developing

partnerships with OEM partners and

system integrators

Target Customers

Geographical Focus & Presence


Europe

All products

Direct sales

Sales partners, System

Integrators, OEM

North America Focus on MIP

Local System Integrators,

OEM

Asia

High security SafeMove

products, SafeMove Mobile

Access

Middle East

High security SafeMove

products


Secure Mobility Partner Strategy & Approach

OEM Partners > Partners that will integrate Birdstep

Secure Mobility software in their product.

> Example: Goodmill and other Mobile

Router Manufacturers, Insta and other

VPN Gateway manyfacturers

Regional & Local System Integrators > Partners that do sales, take the deal in

and also support the customer locally

(first line support)

> Birdstep sometimes takes care of the

implementation

> Example: Haynik in Malaysia, Thales

eSecurity in UK and other countries

Sales Partners > Partners providing local Birdstep presence in

the target market

> Birdstep takes care of the implementation and

customer support

Customer Cases & Success Stories

Customer Cases


CASE

71

Securing real-time access to life-critical information across the departments

Customer

The City of Helsinki Rescue Department employs

approximately 600 people. The Rescue Department

takes care of 1,000 fires and more than 35,000 urgent

first aid and patient transportation tasks yearly.

Challenge

Time-critical emergency tasks. Need for digital

information on the move.

NEW: access to other organizations data

required

Solution

SafeMove with seamless mobility, automatic

connection establishment and re-establishment to

best available network in secure fashion.

NEW: SafeMove Portable Security that enables

access to other organizations data when needed


CASE

72

Work flexibility for civil servants: laptops and tablet computers

Customer

Government IT Shared Service Centre (VIP)

provides IT services for the Council of State, for all

Finnish ministries, for some central offices and for

citizens.

Challenge

Users continuously on the move. Need to access

highly confidential information. BYOD.

Solution

SafeMove with seamless mobility, automatic network

detection, secure access and smartcard-based

authentication together with SafeMove Mobile

Access for ministers and high officers who

require a modern and easy to carry with device


CASE

73

Enhancing Customer Service

Customer

Thames Water is the UK's largest water and

sewerage company, serving 14 million customers

across London and the Thames Valley.

Challenge

Reliability of the underlying network and how

applications and devices cope with network outages

and roaming between 3G and Wi-Fi.

Solution

SafeMove Mobile VPN software provides reliable and

secure communications for 2,000 field-based

personnel equipped with laptops and PDAs.

SafeMove addresses the connectivity challenges that

affect user adoption of mobile solutions to reduce

costs, enhance productivity and maximize the return

on investment in mobility


CASE

74

Continuous access on the move

Customer

Police force, not authorized to be more specific about

the customer. Currently in a pilot phase.

Challenge

Reliability of the cellular networks, especially in rural

areas. Continuous access is a must also on the

move.

Solution

Mobile Router solution added with Mobile IP to

ensure continuous and uninterrupted access to

mobile networks


CASE

75

Enabling access to data in multiple data classification levels

Customer

Defence industry, EU legime. Not authorized to be

more specific about the customer

Challenge

Multiple data classification levels

States of emergency, e.g., in the event of a pandemic

or wide-spread epidemic

Solution

SafeMove Portable Security in USB that enables that

the same computing platform (workstation) can safely

be used to handle material with different classification

levels.

One USB per classification level that provides easy

and safe access any time from any workstation


Easy and always secure

access to the enterprise

network / company critical

data with engaging and

simplified user experience

regardless of the situation,

user and device

Why choose Birdsteps Secure Mobility Solutions:

Significant cost-savings

through availability,

network optimization,

efficiency, employee

satisfaction and one

vendor -approach

Secure Mobility solutions provide:

Unparalleled flexibility and

customer service that big

companies can’t provide


Summary

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