1) Telefonica aims to lead the IoT opportunity by putting customers at the center and delivering connectivity and end-to-end solutions both in their core business and new areas. 2) They take a two-fold strategy of innovation and revenue growth, having seen consistent growth over 40% from 2014 to 2017. 3) The presentation discusses several IoT solutions Telefonica provides including fleet management, smart cities, and energy efficiency, as well as their plans to continue innovating in areas like low power wide area networks and cellular connectivity for machines.

1. Delivering the m2m
experience, leading the
IoT pathway_
Rosalía Simón – IoT End-to-End Solutions
Director
Francisco Jariego – IoT Innovation Director

2. DISCOVER, DISRUPT, DELIVER
We want to lead the IoT opportunity
Customers at
the center of
our offer
In our Core
Business &
Beyond
Now &
in the Future
Connectivity & e2e
Solutions
Being a key growth engine for Telefonica
Short term & Long
term objectives
Business &
Consumers
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3. DISCOVER, DISRUPT, DELIVER
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We do what it takes
Future
needs
Today
business
In-country
teams
Global teams
(sales, product, operations)
In-house
solutions
Partners
agreements
+
+
+

4. DISCOVER, DISRUPT, DELIVER
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With a consistent two-fold strategy
Innovation

5. DISCOVER, DISRUPT, DELIVER
Revenue
Growth 2014
>40%
Looking back
We are showing
consistent growth
and we are accelerating
2014
Looking forward
We are committed to
building on this
momentum
20172010
Enabling revenue acceleration and great ambition
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6. DISCOVER, DISRUPT, DELIVER
Strengthening our value proposition with Geotab key partnership
Geotab: a success story with
>400K units
Best in class solution
Modular/adaptable to customer
needs
New key client segments
Key engine data
Plug & Play
Web
Application
Cloud
network
Self installable
module
APIs
Accelerating our fleet business (50% growth)
+
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7. DISCOVER, DISRUPT, DELIVER
Bringing new solutions to market
• Leaderboard
• Live tracking
• Geo-fences
• Group sharing
• Trip history
• Driving insights
• Vehicle health
Connected car solution in partnership with Zubie
Vehicle diagnosis, tracking &
monitoring driving behaviour
Plug & Play
Launched in Germany,
under B2C model
O2 stores & other channels
Future expansion: new
geographies, new business
models (B2B2C)
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8. DISCOVER, DISRUPT, DELIVER
Bundling diverse e2e solutions to increase client return
With a strong telemetry catalogue: > 40 solutions
(e.g. vending, tanks, elevators)_
Integrated value proposition
bundling fleet, brewery & tanks
Customization required at client
back-end
Client segment target: beverage
corporations
Multiplying client profit: sales
increase and cost reduction
Tanks Brewery Fleet
IoT Platform
+ +
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9. DISCOVER, DISRUPT, DELIVER
Our Energy Efficiency Solution
Helping retailers drastically reduce their energy bill
Business model based on energy
savings
Hardware provision, energy
efficiency platform & consumption
reports
Case study – multinational fashion
retail company
20% energy reduction in the
stores; 35% in the logistics center
Engineer
Installation &
Maintenance
Web Platform
Lighting
Energy
Supply
HVAC
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10. DISCOVER, DISRUPT, DELIVER
Transforming Valencia into a 100% intelligent city
Service NService 1 Service 2
Smart Devices
Managed Connectivity
Smart City platform (Open)
Service NService 1 Service 2
Intelligence 1 Intelligence 2 Intelligence n
Network 1 Network 2 Network n
Device 1 Device 2 Device n
From traditional isolated model To a holistic integrated view
Why
Telefonica?
Consultancy services
Top management
commitment
Best in class platform
Customized solutionLong term partnership
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11. DISCOVER, DISRUPT, DELIVER
Innovation in IoT: Falling in Love with The Machine
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12. DISCOVER, DISRUPT, DELIVER
Wider range of technical
requirements: Coverage, Mobility,
Autonomous Operation…
Connectivity prices matching the
marginal utility of connecting more
‘things’
Embedding connectivity inside a
data-hungry software ‘brain’
Machines have their own needs…
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13. DISCOVER, DISRUPT, DELIVER
Low-cost devices, even disposable
Years of operation with a small
battery
Coverage of low-rate services into
basements, manholes, etc.
Optimized for small payloads, with
low signaling overhead
Overall ease of use: integration of
devices, with apps and IT systems
…and the XL size does not fit all
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14. DISCOVER, DISRUPT, DELIVER
Wide Area Networks are what
telcos excel at
Offered as a pay-as-you-go service,
save customers the deployment
and O&M of their own networks
Device on-boarding is easier and
faster
No ‘islands’ of connectivity - whole
countries covered
The case for Low Power Wide Area
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15. DISCOVER, DISRUPT, DELIVER
Simplifying data plans
Making it easier to get SIMs in
small quantities to develop and
test
Reducing the price of
communications module
Embedding connectivity in a
software application/process in a
simple way (API)
① Making cellular more attractive for makers
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16. DISCOVER, DISRUPT, DELIVER
Arduino-compatible CPU
GSM radio
Soldered SIM with global, pre-
provisioned data plan
Integrated Li-Po battery management
Simple API
OTA upgrades
Industrial-grade module designed to
fit into production lines
Cost below 10€ (BOM)
① That’s why we’ve opened Thinking Things…
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17. DISCOVER, DISRUPT, DELIVER
The Smartphone is not the End
of History
Cellular is also sexy for many
other physical objects
① …and it works: Just Click and Do
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18. DISCOVER, DISRUPT, DELIVER
LPWA enables new use cases
thanks to a new mix of coverage,
energy consumption, and total cost
Overlap with cellular is limited
Significant upside in the number of
potential connections
② We’ll extend our ‘cellular’ connectivity…
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19. DISCOVER, DISRUPT, DELIVER
More than a fancy radio technology
End-to-end service
Developer-friendly global platform
Proven fast deployment model
Royalty-free model for devices
Promising ecosystem around it
② …when we fully understand how to do it best
SIGFOX™ has created a new category and unique value proposition
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20. DISCOVER, DISRUPT, DELIVER
Continue accelerating our managed connectivity business (Smart m2m and
Jasper platforms) with more volume, more quality and more efficiency
Continue building our e2e solutions business by leveraging our strong
catalogue and our solutions partner ecosystem. Push commercial plans and
segmented value propositions in key verticals
Accelerate sales in both horizontal and e2e solutions through our key
commercial assets: OB sales channels, m2m sales specialist teams and m2m
Global Partner Programme
Keep focusing on IoT innovation, leveraging our dedicated organization, to
bring new disruptive solutions in the market
2015: Continue accelerating while building assets for future
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21. DISCOVER, DISRUPT, DELIVER