2. Kudelski Group – History in a nutshell Founded in 1951 A solid reputation built on professional audio Over 50 years innovation in media technology Today a world leader in digital security History in a nutshell…

3. Comprehensive digital TV security 2,000+ employees Converged content protection 2009 revenues of 1.05B CHF Cross-network and cross-media Global presence Applications & Interactivity 210MCHF invested in R&D Logical & physical access Accelerating investment in IPTV, hybrid DVB-IPTV & mobile TV AT A GLANCE STRATEGIC AXES BUSINESS LINES SMART CARD TECHNOLOGY DIGITAL TV SOLUTIONS PHYSICAL ACCESS SOLUTIONS THE GROUP PROFESSIONAL AUDIO & HI-FI

4. RFI RFI RFI Digital Television Business Lines TRADITIONAL DTV BUSINESS LINES Conditional Access and DRM Middleware and User Experience Advanced Advertising Single Renter +$100K Married w/Kids $50-$75K Retired w/RV $75-$100K AD1 Copy AD2 Copy AD3 Copy

6. Kudelski technologies in more than 200 m STB

7. Exceeding 1B USD revenuesPolsat (Pol) Cyfra+ (Pol) Cablecom (CH) Teleclub (CH) Golden Channels (Isr.) Orbit (M-E) Etc… Premiere (D) Kabel Deutschland (D) Canal+(F) Canal Satellite (F) NC Numéricâble (F) Canal Digitaal (NL) Telenet (B) Neuf Cegetel Jazztel Hansenet Etc… Digital+ (E) SkyItalia (I) Virgin Media (UK) Sogecable (E) TV Cabo (P) Mediaset (I) Etc… Astro (Mal.) Hong Kong Cable Shanghai Cable (C) Beijing Cable TV (C) Starhub (Sing.) IMCL (India) PMSI (Phil.) C&M (Kor.) Qrix (Kor.) EMC (Taiw.) Space Com. (Jap.) IndoSat (Indon.) ZeeTV (India) Etc… EchoStar Bell ExpressVu Look Com. Microspace PanAmSat Globecast Craig Wireless Watch TV Atlantic Telecom Cable Etc… ACOM (Br.) Teleserv (Br.) TV Show (Br.) Supercable (Ven.) CBC WestStar Antilles&Wireless Etc…

9. Most hybrid references in the industry

11. PRM as flexible fan-out into the home

12. Nagra Media Player on PC/Mac

13. Removable security solutions (CI, CI+)

14. Broadest Mobile TV solution

15. Own & control the H-GW

16. Whole content life cycle

17. Horizontal CE devices

19. Extreme flexibility through state-of-the-art run-time environment

20. TV-centric workflow for widgets

21. Relevant advertising

22. Highly intuitive

23. Short innovation cycles

24. Blend web2.0 and TV

26. Marking Time Persistent Truths 10+ years Movements 8-10 years Trends 3-7 years Fads 0-2 years 1990 2000 2010 8

28. Personal content access

29. Personal media players

30. Place shifting

31. Long-tail/broadband content access

32. Multi-room PVR

33. Any content, any device,anywhere

34. On Demand Content

35. Push, pull and streamed VOD

36. Pay-per-view, subscriptions and free VOD

37. Start-over, Catch-Up TV and Network PVR

38. IPTV

39. Telco and hybrid deployments

40. Off-net cable strategies

41. IPTV over DOCSIS

42. Personal Video Recorders

43. Time-shifting becoming a mass market activity

44. PVR is becoming a must have item

45. HD PVR becoming standard

46. Bigger disk, expandable solutions9 9

47. Long Term Market Assumptions CONTENT IS STILL KING Viewers are overwhelmed with content choices, they need help finding relevant content among all the noise. Each viewer has unique content preferences, but premium content continues to drive viewing desires. Sophisticated, digital technologies deliver premium content faster and better than ever. IT’S PERSONAL Viewers build a television identity profile which enables a truly personalized viewing experience. Intelligent profiles allow for improved content discovery throughout the network, both global and among friends. CONTENT ACCESS ANYTIME, ANYWHERE Viewers have the choice to watch WHAT they want, WHEN they want, and WHERE they want. Video On Demand surpasses broadcast to become the primary source of content consumption. Viewers are able to access their content from any connected device

48. Flexibility is not an option but a requirement – content anytime, anywhere, on any device People will still prefer to watch sports, movies, and most dramas as a large screen experience – but only news, sports, award shows, and ‘live’ events will be viewed in ‘real time’. There will continue to be the need for a content aggregator –PayTV operators today…could be new players tomorrow Content will be funded by advertising delivered through technically enhanced methodology Content and Advertising will become more integrated and often inseparable Key challenges will include DRM integration, Standardization, and Home Network Infrastructure 76% of TV Households will be outside the Western world in 2013 – creating a challenging mix of basic and advanced technologies 11 Guiding Principles for the next 10 Years