State of the Market Koichi Tagawa Chairman, NFC Forum Sony 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/Bluetooth 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 smartphone 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 smartphones 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 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 Casio 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 Google 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 Droid Incredible HTC Evo HTC First Google HTC Desire Nexus 7 Hike X1 Hike X1D Desire C HTC J Butterfly 4G LTE 4GLTE Nexus 5 500 NFC Phones Are Here Now Google Google HTC HTC Droid DNA/HTC Droid Incredible HTC First HTC Desire HTC Evo Nexus 4 Nexus S 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 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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 Samsung Ativ Samsung Ativ Samsung Samsung Samsung Samsung Galaxy 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 Sony Xperia L Sony Xperia L Sony Xperia Sony Xperia NFC Sony Xperia S acro S AX ion P Sola NFC Phones Are Here Now Sony Xperia SP Sony Xperia 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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 Laptops 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 SPONSOR MEMBERS PRINCIPAL MEMBERS Members ASSOCIATE MEMBERS IMPLEMENTER MEMBERS NONPROFIT MEMBERS Liaison Partners Thank you and Join Us! .