State of the Market

Koichi Tagawa Chairman, NFC Forum

March 21, 2014 | San Francisco NFC Industry Update Global Market Situation

• Recent Developments – First NFC-enabled household appliances launched – Wearables market takes off – First nationwide NFC payments rollout in US – New HCE feature in Android 4.4 – Top payment associations launch HCE solutions – Major North American coffee shop launches NFC pay – New NFC/ LE (BLE) solutions • NFC and BLE are complementary technologies

Market Segment Status

Consumer Electronics Soaring! Healthcare Transport Taking off!! Taking off!

One Touch to BT/WiFi Remote Airline Public Healthcare Ticket Transport Ticket

Payment Retail Preparing for take off Preparing for take off Automotive/Mobile Printing

Accessory / Wearable Credit / Debit Coupon / Royalty Program Market Acceleration

• ABI Research – 125 million NFC handsets shipped in 2012; 285M shipped in 2013; 500+M in 2014 – NFC-enabled shipments are anticipated to increase by 481% from 2012 to 2015 • Berg Insight – One in three mobile phones to come with NFC by 2017 – Between 2012 and 2017, installed base of NFC handsets will increase at a CAGR of 65% to reach 2.1bn units – By 2017, the penetration rate for NFC across all handset segments will increase to approximately 32% • Gartner – 50% of will have NFC capability by 2015 • IHS Technology – Two in three phones to come with NFC by 2018 – Annual shipments increasing from 275m units in 2013 to 1.2bn units in 2018. • Juniper Research – By 2017, 1 in 4 US consumers will use NFC-enabled devices to pay for goods in-store

NFC Phones Are Here Now

Acer Cloud Alcatel One Asus Padfone BIackBerry Acer E320 Acer Liquid Adline Alcatel One BBK Mobile (S500) Touch 996 Padfone 2 Infinity Bold 9790 Liquid Express Glow IMX-200 Touch 922 Vivo Xplay

Blackberry Curve BIackBerry BIackBerry BIackBerry BIackBerry BIackBerry BIackBerry Cmii 1/3 DT-X8 Casio G’zOne 9350/60/70 Bold 9900/9930 Curve 9380 Q5 Q10 Z10 Z30 CA-201L

G.To N800 Gentag GT- Faea F2/F2S Fujitsu Arrows Gionee Galaxy Casio IT-800 Faea F1 Fujitsu Fujitsu Arrows 601v2 µ F-07D Arrows Kiss V F-04E Elife E7 Nexus

Google HTC HTC Droid DNA/HTC HTC Evo HTC First Google HTC Desire Hike X1 Hike X1D Desire C HTC J Butterfly 4G LTE 4GLTE 500 NFC Phones Are Here Now

Google Google HTC HTC Droid DNA/HTC Droid Incredible HTC First HTC Desire HTC Evo Hike X1 Hike X1D Desire C HTC J Butterfly 4G LTE 500 4GLTE

HTC Incredible HTC Windows HTC One HTC One SV HTC One VX HTC One X/XL HTC Ruby / Ascend Huawei AscendHuawei Ascend Phone 8x Amaze G300 G600 P2

Huawei AscendHuawei Sonic/ K800 LG G2 LG Mach LG Optimus 3D Y201 Turkcell T20 by Jolla LG Optimus 4X LG Optimus Elite LG Optimus G Max/ 3D Cube HD

LG Optimus LG Optimus LG Optimus LTE L5/L7 LG Optimus LG Optimus Vu LG T530 Lumigon Megafon LTE/2 Tag LG Viper Net Ego T2 Mint MX3 NFC Phones Are Here Now

Motorola DroidMotorola DroidMotorola Droid Motorola Droid Motorola Droid Motorola MotorolaMotorola Photon Q Maxx Mini Razr/HD Razr M 4G LTE Razr Maxx HD Ultra MC75A HF 4G LTE

Nokia Nokia MotorolaD3 Razr i/ Nokia Nokia Nokia Nokia MTS 975 700 801T C7 / Astound MT788 603 701 808 PureView Lumia 610 NFC

Nokia Nokia Nokia Nokia Nokia Nokia Nokia Lumia Lumia 925 Lumia 928 Nokia Oro Find 5 Lumia 620 Lumia 720 Lumia 820 Lumia 920 1020

Pansonic Orange Infinity Orange OrientPhone Pansonic Pantech Sky Pantech Sky Vega Philips XeniumPorsche Design Eluga Discover 996 San Diego P6 Plus Eluga Power Vega LTE Racer W336 P'9981/2 NFC Phones Are Here Now

Prada by Ativ Samsung Ativ Samsung Samsung Samsung Samsung Samsung Samsung Galaxy LG 3.0 Odyssey S Neo Galaxy Ace 2 Galaxy AxiomGalaxy Express Express 2 Galaxy Light Galaxy Mega Mini 2

Samsung Galaxy Samsung Samsung Samsung Galaxy Samsung Samsung Galaxy Samsung Samsung Samsung Samsung Note/II/3 Galaxy S Advance Galaxy S Premier Galaxy S II S II Plus Galaxy S III Galaxy Blaze 4G Galaxy S4 Galaxy S4 Active S4 mini

Samsung Samsung Galaxy Samsung Samsung Samsung Samsung Wave Samsung Galaxy Samsung Sharp Aquos Sharp Aquos S4 Active Galaxy SHW-A170K Wave 578 M / Y WP8 Ativ S Victory 4G LTE Young S5230/S5260 Phone Serie Phone Zeta

Sonim XP1301 Core Sonim XP and NFC Sony Xperia Sony Xperia Sony Xperia L Sony Xperia L Sony Xperia Sony Xperia NFC acro S AX ion P Sola NFC Phones Are Here Now

Sony Xperia SP Sony Xperia Sony Xperia Sony Xperia Sony Xperia Sony Xperia Sony Xperia V VL Z Z1 ZL ZR

Turkcell T11 Turkcell Maxiphone/ZTE Turkcell Vertu MaxiPRO5 Smart Xiaomi Mi3 Racer II T40 Constellation III Mi 2A

Zopo ZP998 ZTE Blade II ZTE GoTa ZTE Kis GH800 ZTE Grand X ZTE Nubia ZTE Orbit ZTE PF200 IN Z5

Toughphone Toughshield Yulong Xolo ZTE Turkcell Defender R-500 Coolpad 8870 X900 MaxiPLUS5 NFC NFC Tablets

Asmaitha Sruta Asus Padfone Asus Padfone 2 Asus Vivo Tab/Tab Asus Vivo Tab 7” Tablet Infinity RT Smart

DLI Fujitsu BWC ToughSlate 7″Cetrix CT973G Cetrix CD661 9000 Arrows Tab

Google Nexus 7 Google HP Elitepad 900 HP Elitebook Kuoziro Revolve FT701W NFC Tablets

Lenovo ThinkPad LG Optimus Nokia Lumia Panasonic Tablet 2 Vu 2520 BizPad

Samsung Windows RT Sharp Ativ RW-T107/T110 Sony VAIO Duo 11

TazTag TazPad AT10LE- Samsung Galaxy Note/ A Note II Sony VAIO Tap 20 More NFC Devices

Barclay Card Glidepoint NFC Payment wristbands trackpad Moneto: NFC microSD I-O Data for the iPhone & WiFi Router Android

Nintendo Wii U RhythmTrak controllers ViVOtech NFC payment Revosys V5 taxi Heart Monitor terminals terminal/tablet

Samsung NFC-enabled laser Smart Meters for utility printer companies Sony RC-S380 reader/writer NFC

HP Envy x2 Lenovo ThinkPad Helix Sony Vaio Fit What Happened With the Chicken and the Egg?

Market deployment over millions of devices

achieved a positive result.

• ABI Research • 125 M in 2012; 285M shipped in 2013; 500+M in 2014 • Berg Insight • One in three mobile phones to come with NFC by 2017

Device first or service first… almost solved. A new challenge is coming. NFC Forum Update Mission and Goals

The mission of the NFC Forum is to advance the use of NFC technology by:

• Developing standards-based specifications that ensure interoperability among devices and services • Encouraging the development of products using NFC Forum specifications • Educating the market globally about NFC technology • Ensuring that products claiming NFC capabilities comply with NFC Forum specifications • Promoting the NFC Forum N-Mark Members

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