ALE LocationBased Services April 2018 Heitor Faroni Daniel

ALE Location-Based Services April 2018 Heitor Faroni, Daniel Faurlin 1

Content Why LBS? The Omni. Access Stellar LBS Solution LBS project implementation Roadmap 2 Key Takeaways

Why LBS? 3

Indoor LBS market size Multibillion $ market Accelerated Growth Indoor location market to reach $4 billion in 2018 Indoor LBS market to grow at a CAGR of 29. 7% over the period of 2016 -2019 ABI Researchmoz Global indoor LBS market 2016 -2019 & Technavio’s analysts 4

What are Location Based Services (LBS)? Category of services typically offered. Geopositioning 5 Wayfinding Geofencing notifications Analytics Asset Tracking Q 2019

The value of indoor LBS Enhance the user experience 6 Engage Measure, analyze, optimize Boost revenues Reduce costs

Healthcare value proposition and use cases Business Challenges • 2% of Medicare reimbursements at risk based on Patient Satisfaction ratings (Value-based healthcare) • $150 billion dollars annually are lost due to appointment no-shows • 40% of patients and visitors depend on hospital staff for Wayfinding assistance • Over 1 hour per day of nurse time used looking for someone or something. 7 * Source: Connexient • Wayfinding, Navigation and Location Services. • Enhance patients/visitors e. Check-in upon arrival. • Reduced stress & anxiety. experience • Find the gift shop. • Meet Me and Parking features. Improve Operational Efficiency • Reduced late & missed appointments. • Improve utilization of staff, resources and space. • Find a wheelchair, roller bed or medical equipment. Provide better Security & Emergency Response • Faster, location-aware incident response. • Security agent location tracking. Increase building Intelligence • Patient flow & dwell/wait times. • Staff work flow optimization.

Example of hospital mobile app Patient appointment management from home to hospital. 1 - Patient is reminded of appointment and confirms availability. This helps avoid missed appointments. Patient then drives to the hospital. 2 - When patient arrives, the Smart Park feature remembers the location (requires coverage of parking lots). Note: Mobile application automatically starts when previously used and phone has remained active. 3 - Once the patient enters the hospital, a notification is sent to the doctor that the patient has arrived. 4 - The patient checks-in and opens-up the app and is located on the 3 D map. Next, the patient gets directions to the visitation room and is on time for their appointment. 3. 2. 6 - A visitor arrives at the hospital to see his friend. He looks up his friend in the hospital app and gets directions to his floor and room. 8 7 - While walking near the gift shop, promotion coupons or notifications can be triggered. 5 - When your visit is finished, get directions to your car with the Smart Park feature. 4. 8 - Security staff can also be easily located and assign the best located security to address an incident 9 - With asset tracking, you can find the equipment you need without spending time looking for it. You can also be notified if elderly patients try to escape the hospital Q 1 2019

Transportation value proposition and use cases e. g. Airports Business Challenges Enhance the traveler experience • 50% of airport revenue comes from parking and retail (balance comes from airline companies) • Attract more travelers by providing a better user experience • Decrease passenger wait times: ticketing, security line, parking, finding the gate • Wayfinding, Navigation and Location Services: Find my gate, show me where it is and how long it will take to get there. • Find family, friends & colleagues. • Parking and find-my-car features. • Track where travelers spend time and how often they come back. Improve Retail sales with • Engage travelers with special offers near specific locations. targeted marketing • Direct travelers to retail, duty free shops and restaurants. Provide better Security & Emergency Response • Faster, location-aware incident response. • Security agent location tracking. Optimize Operations • Find a wheelchair or electric cart. • Locate agents to assist travelers. • Staff work flow optimization.

Example of airport mobile app For travelers and airport personnel. 1 - When you arrive, the Smart Park 2 - A notification is sent to the traveler feature remembers your location (requires when he enters the airport about his coverage of parking lots). Note: Mobile departure gate and boarding time. application automatically starts when previously used and phone has remained active. 3 - When the traveler opens-up the app, they can see where they are located in the terminal and can find the nearest check-in and security line with the least amount of people. 4 - Once through security, the traveler can enter the flight number to get directions to their gate. They are also provided with an estimated time of how long it will take to get there. 2. 5 - While walking near the duty-free shop, restaurants, or other retailers, promotion coupons or notifications can be triggered. 10 6 - You have time for a bite? Browse the map. Click on POI (point of interest) to get directions…or look for POI in the search bar then see the location on the map. 7 - Share your location with your Facebook, Wechat or Linked. In community. 8 - When back from your trip, retrieve your car with the Smart Park feature. 9 -Airport security administrators can use the tracker to locate and mobilize security staff quickly, should they be required.

Hospitality value proposition and use cases Business Challenges • Guest are referred by booking platforms; • Hotels do not own the customer anymore Top 10 strategic goals for technology in 2017 Improve digital customer engagement / loyalty Enhance payment and data security Improve business & customer analytics Increase employee productivity Enhance guestroom technoogy Enable seamless reservation across all channels • Loyalty mobile app is a dedicated relationship with customer Enhance bandwidth Support new business models • LBS enhances the mobile app Keep-up with the competition Reduce cost of managing technology 11 0% 20% 40% 60% *Lodging Technology Study, 2017

Hospitality value proposition and use cases (cont’d) Enhance the guest experience, increase customer engagement • Getting directions to the room • Find the car in the parking lot • Find a friend • Cruise ships: finding the night club; tracking children • Finding hotel amenities (swimming pool, spa, restaurant) • Monitoring when trays for room service are outside in the corridor Streamline operations, reduce costs • Locate guest in casino floor as they move around – drink services efficiency • Managing luggage trolleys • Tracking irons (for small hotels that do not have one per room) • Understanding the guests and employees flow Boost revenues • Target advertising/promotions for bars and restaurants • Where my guests spend time More use cases applicable in large venues: resorts, casinos, cruise ships 12

Example of hotel mobile app For hotel guests, visitors and staff. 1 - While guest waits for shuttle, he opens-up the hotel loyalty app and do the self check-in. Room electronic key is downloaded to the phone 2 - Mobile application automatically notifies reception staff as guest VIP guest approaches the entrance. He receives a personalized welcome from staff. 3 - The mobile app can also locate guest on a 3 D map and provide directions to his room. 4 - While walking through the resort property, promotional coupons or notifications of happy hour can be triggered even when the app is in background. 2. 5 - Guest can make a reservation to a restaurant in the hotel and see the directions to get there. 13 6 - The next day guest can find directions to the pool/spa to meet with colleagues. 7 - Going to a meeting downtown; quickly find your car in the 5 -story garage infrastructure 8 - Efficient maintenance operation is achieved by finding the closest staff to handle the malfunctioning AC on room 212.

Education value proposition and use cases Improve student success and campus experience Institutions Challenges Increase student success and retention Provide a safe campus • Navigation to the classroom (decreases tardiness) • Find closest parking garage • Find a friend • Library services: locate a book, find/reserve an empty desk or meeting room • Emergency notification accurate position • Evacuation routes on emergency (ex. Mass shooting) Streamline operations, improve safety • Class attendance • Campus information for parents and visitors • Understanding students and guests flow during events • Teachers and staff contribution to building management • Managing students to stay inside campus • Staff coordination 14 Boost revenues and reduce costs • Discounts for restaurants and shops • Tracking lab equipment

Example of university mobile app Providing a superior experience for students. Room 215 @ Albert Einstein building 7 min walk Attendance to Calculus 101 confirmed Aproximate location: BD 122 -4532 1. 1 - Students arrives at classroom and finds a notification that the class has been moved to the Albert Einstein building, room 215 due to remodeling. Student use the university app to get directions to the classroom and is also informed of the time to reach it. 2 - Class attendance is taken automatically from all students entering the room and remaining there for a certain period. 3 - During the class teacher assigns a new book to read. From the university app student reserves the book and get directions to the aisle and shelf in the library where the book is located. Immediate evacuation! Use indicated routes Kim Roberti “The Pearl” 4 - Students share their location with a friend on Facebook, Wechat or Linked. In in order to find the best place to meet. 15 5 - As student passes by the food court area, he/she receives notifications of lunch specials 6 – On his way to the afternoon class there is an art exposition on the wall. Using the app, student can get information as he/she approaches the artifact. 7 – During class students get emergency notification of gas leak close to their building and shows best evacuation route

Government value proposition for smart city use cases Business Challenges Solutions powered by ALE • Inefficient process to alert citizens when an emergency occurs during a large public venue. • Alert citizens quickest exit from the venue by using wayfinding and analytics. • Enhance safety for families or groups when attending crowded events. • Increase city revenue when citizens are attending public events. • Use geofencing to send alerts when dependents go astray from your location. • Targeted discounts and advertising are enabled by geonotifications to drive additional revenue.

Example of smart city mobile app Providing real time venue information for citizens. 1 - Citizens enter a public venue such as a museum. They launch the Smart City application. Their location is identified on the map. 17 5 - After visiting the exhibit, citizens can record their experience on the venue social media platform, so it can be shared with other visitors. 2 - Citizens share their signup ID with other members of their group, so the group can keep track of each others location. 6 - Need to find a restroom, gift shop or restaurant? Click on POI (Point of Interest) to get directions. 3 - A specific GEO tag is assigned to infants and elderly members of the group. This provides geofencing alerts to group members if someone tagged exceeds an allowable perimeter. 7 - In case of an emergency, citizens/visitors will be alerted and the quickest path to an exit will be highlighted on their map. 4 - The app will display the different exhibits on a map. An exhibit of interest can be selected, located and the associated wait times are displayed, as well as exhibit information. 8 - Venue security administrators can use the tracker to locate and mobilize security staff quickly and ensure all visitors are evacuated.

Omni. Access Stellar LBS technology 18

ALE location technology Advanced device centric sensor fusion. 4. 0 Low Energy (BLE) – RSS measurements performed by the smartphone Magnetometer (“Compass”) MEMS Fusion Map data Accelerometer Barometer Gyroscope (opt) (optional) for smart parking, floor level identification, etc GPS for smart indoor/outdoor transitions * Still under development for Stellar WLAN 19

Indoor LBS services Multiple capabilities to support your industry sector needs. Geopositioning & Wayfinding Geofencing Notifications (used for proximity marketing, object-oriented information, etc. ) Analytics geofencing based People Tracking (Independent Tracking App) Note: People tracking is available as an option via a separate tracking app which works in the background of your mobile device e. g. so a hospital can locate clinicians, security, etc. Note: device limitations require case-by-case review Some use cases previously mentioned require additional software development on top of the LBS services we offer 20

The components available BLE beacons, location SDK and management tools. Hardware Location SDK Management Tools BLE Beacon Omni. Access Stellar LBS Installer Omni. Access Stellar BLE Dongle (Beacon + AP with USB port) Omni. Access Stellar LBS SDK Omni. Access Stellar LBS Cloud Manager Omni. Access Stellar 1230 AP 21 (integrated BLE)

LBS System architecture Mobile app components and the interface with the Cloud Manager Cloud Stellar LBS Cloud Manager Battery Status Data Analytics Data Customer App Mapping SDK Location SDK Periodic analytics uploads + Periodic beacon battery status upload Storage 22 Connection to the cloud via Wi. Fi or 3 G/4 G Location calculations, display on map and notifications are all processed locally by the SDKs integrated into the mobile App

The BLE beacon (standalone) Omni. Access Stellar BLE Beacon. Feature-rich and robust design to meet operational constraints Long battery life: low power operations with best-in-class batteries. Ready to use: pre-configured for immediate use – no changes needed Easily maintainable: Internal statuses emitted by telemetry frames and managed by cloud platform Strong, stable output power: +3 d. Bm transmit power. 60, 000+ units sold and installed for more than 4 years Rugged casing: Meets IP 54 and IP 65 (with outdoor kit) Easy fastening: double sided sticker, screws can be used. New beacons with 23 5+ years battery life (up to 10)

The BLE dongle (USB beacon) Omni. Access Stellar BLE Dongle • • • Omni. Access Stellar BLE Dongle • • Provides Bluetooth Low Energy (BLE) connectivity to Omni. Access Stellar AP’s with USB interface* Can be used with Omni. Access (OEM) AP’s Can be installed on a IP Phone with USB interface but won’t be tested on first release Dongle won’t have ALE branding Supports BLE emitter/transmitter only (not a receiver which will be required for asset tracking) * Not needed on Stellar AP’s with built-in BLE interface 24

Location SDK Omni. Access Stellar LBS SDK. Gathers data from BLE beacons and communicates with Cloud Management via Wi-Fi or 3 G/4 G/LTE • • • Omni. Access Stellar LBS SDK 25 • • 3 D location Geonotifications Data sync with Cloud Management • Uplink: geonotification events, beacon monitoring data • Down link: Configuration files Sensor management Continues to operate when offline

Management tools Setup and maintenance suite. Omni. Access Stellar LBS Cloud Manager Mobile App • • Omni. Access Stellar LBS Installer 26 Calibrate the indoor location service Evaluate location accuracy Test geonotifications Demonstrate location and geofencing (simple wayfinding app) Indicate beacons locations Check beacons life status in real time (Re)configure beacons Easy to use. + video tutorials & documentation.

The analytics module in the LBS Cloud Manager Overview Dashboard Omni. Access Stellar LBS Cloud Manager There are 4 predefined dashboards: • Overview • Users • Visits • Zones 27

Analytics Users Dashboard Users dashboard • OS distribution • OS versions distribution • Days between visits • Average days between visits • Number of visits per user • Average number of visits • Returning visitors Note: In order to offer user privacy the LBS system implements a rotating pool of user IDs. Each user is assigned a user ID for a limited period of time, configurable in hours. After that period the user IDs are put back into a pool of IDs which become available for other users. Metrics related to customer loyalty depends on the expiration of user IDs (which is configurable depending on the privacy regulations of each business/country; default is 24 hours; use -1 to disable ID rotation). The affected metrics are Days between visits, Average days between visits, Number of visits per user, Average number of visits, Returning visitors. 28

Analytics Building Visits and Zone Visits (within a building) dashboards Visits/Zone dashboards • Visits • Visitors • Average visit duration • Average visits per hour of the day • Average visits per day of the week • Average visit duration per day of the week • Visits heatmap 29

LBS project implementation 30

What does it take to implement a LBS project? WAN Customer App BLE infrastructure • Blue. Spot beacons • BLE dongles for Stellar or Aruba APs • Built-in BLE support in Stellar AP (Future) Customer App with LBS • Offline & background operation capability • Non-blocking data synchronization Map SDK Location SDK Map of the location provided by a map vendor Cloud management • Setup of indoor location • Beacons monitoring • Define and manage geonotification campaigns • (Location analytics) Hardware + Mobile App Software Integration + Management 31

Partners Ecosystem Bringing the other components for a complete solution. Mapping 32 App Developers

LBS System Operations The ALE Beacon Advantage Beacons monitoring. Of-the–shelf** Stellar BLE Beacon 8 to 15 3 to 6 Military grade battery X Constant power over time X Proximity Detection Indoor Positioning Not by design Precise Geofencing Not by design Monitoring App based Cloud based w/ crowdsourcing Battery life < 3 years 5+ years - over the air Integrated Operation (Beacons monitoring, geofencing, analytics) X Outdoor installation - Optional IP 65 compliance * For wayfinding use cases ** $5 -$10 range Typical Density Beacon health status automatically reported by SDKs from end user’s apps Beacon location and health status displayed in Cloud Manager Maintenance (per 1, 000 SQM)* (firmware update) High reliability and lower TCO 33

Indoor LBS roadmap Planned additional services for 2018/2019. Asset Tracking Expanded Analytics BLE tags 34 Device centric location analytics (BLE based) Network centric location analytics (Wi-Fi based) • More business insight information • In-depth analysis • Does not require the use of an App • Ex: How many people in a general area (not very precise)

Key takeaways Why ALE LBS 35

State-of-the-art technology With simple operations. Easy to install, plug and play beacons. Smart calibration using the Stellar LBS Installer. Simple setup, operation and maintenance enabled by Cloud platform. High accuracy Advanced fusion algorithm combines multiple technologies, including smartphone built-in sensors, to provide high location accuracy. Additionally, provides more accurate analytics than using Wi. Fi only. High scalability Increased scale does not impact performance – location calculations and all parameters are executed in the smartphone instead of the cloud. Maintainability One cloud platform enables Geofencing updates, notifications changes and beacons health status. Beacons firmware and parameters can be changed over the air. Long battery life (5 to 10 years). 36

LBS project implementation 37

What does it take to implement a LBS project? WAN Customer App BLE infrastructure • Blue. Spot beacons • BLE dongles for Stellar or Aruba APs • Built-in BLE support in Stellar AP (Future) Customer App with LBS • Offline & background operation capability • Non-blocking data synchronization Map SDK Location SDK Map of the location provided by a map vendor Cloud management • Setup of indoor location • Beacons monitoring • Define and manage geonotification campaigns • (Location analytics) Hardware + Mobile App Software Integration + Management 38

Partners Ecosystem Bringing the other components for a complete solution. Mapping 39 App Developers

LBS System Operations The ALE Beacon Advantage Beacons monitoring. Of-the–shelf** Stellar BLE Beacon 8 to 15 3 to 6 Military grade battery X Constant power over time X Proximity Detection Indoor Positioning Not by design Precise Geofencing Not by design Monitoring App based Cloud based w/ crowdsourcing Battery life < 3 years 5+ years - over the air Integrated Operation (Beacons monitoring, geofencing, analytics) X Outdoor installation - Optional IP 65 compliance * For wayfinding use cases ** $5 -$10 range Typical Density Beacon health status automatically reported by SDKs from end user’s apps Beacon location and health status displayed in Cloud Manager Maintenance (per 1, 000 SQM)* (firmware update) High reliability and lower TCO 40

LBS part numbers Part number Description OAL-BT-10 Battery powered beacon – 10 pack OAL-BT-MNT-10 Battery powered beacon outdoor mount kit – 10 pack OAL-BT-USB-10 BLE USB dongle – 10 pack OAL-SDK-LSGS 1 year subscription for Indoor location services + Geo Fencing services per 100 square meter OAL-SDK-LSGSA 1 year subscription for Indoor location services + Geo Fencing services + location analytics per 100 square meter • • Initially certified in EU, USA and Canada (CE, FCC and IC certifications) All other countries must go through OQM process for approval Note: subscription fees are based on square meter coverage area 41 Stellar LBS cloud manager, installer App and SDK are included with LBS licenses

Competition Features ALE Cisco HPE Aruba Ruckus SPo. T Aerohive Highly accurate (1 -2 m), low latency push notifications Yes Yes No* Indoor navigation with turn by turn direction Yes Yes No No BLE infrastructure management Yes Yes NA NA BLE beacon life (years) 5 -10 NA 2 -3 NA NA Yes Yes No No Yes No NA H 2 2018 Yes No SDK to integrate with customer-built app App maker (i. OS/Android In built mapping solution 42 No (only API for supporting location analytics) * (5 -10 Meters of accuracy in high density AP deployment) NA

Roadmap 43

Indoor LBS roadmap Planned additional services for 2018/2019. Asset Tracking Expanded Analytics BLE tags 44 Device centric location analytics (BLE based) Network centric location analytics (Wi-Fi based) • More business insight information • In-depth analysis • Does not require the use of an App • Ex: How many people in a general area (not very precise)

Key takeaways Why ALE LBS 45

State-of-the-art technology With simple operations. Easy to install, plug and play beacons. Smart calibration using the Stellar LBS Installer. Simple setup, operation and maintenance enabled by Cloud platform. High accuracy Advanced fusion algorithm combines multiple technologies, including smartphone built-in sensors, to provide high location accuracy. Additionally, provides more accurate analytics than using Wi. Fi only. High scalability Increased scale does not impact performance – location calculations and all parameters are executed in the smartphone instead of the cloud. Maintainability One cloud platform enables Geofencing updates, notifications changes and beacons health status. Beacons firmware and parameters can be changed over the air. Long battery life (5 to 10 years). 46

enterprise. alcatel-lucent. com facebook. com/ALUEnterprise linkedin. com/company/alcatellucententerprise twitter. com/ALUEnterprise youtube. com/user/enterprise. ALU 47

Backup slides 48

Sample customer configuration Excluding mobile App development. Airport Area: 500, 000 sqm Beacons density*: 4 Upfront Capex: • Beacons: $132. 5 K • Pro Services: $65. 8 K • Subtotal: $198. 3 K Annual recurring Fees: • LBS Licensing: $350 K • Mapping**: 27. 5 K • Subtotal: $377. 5 K * Density per 1000 sqm ** Based on Mapwize 2 D fee 49 • USB Dongles to be installed in the back of existing AP’s (25% of total) • Standalone beacons with military grade batteries (75% of total) • • Beacons installation, calibration and test Project management Project configuration on the cloud Integration support • Usage of the location and geofencing capabilities of the SDK • Cloud Manager • Installer Application • Initial 2 D Mapping • Access to a cloud editor to do map updates Disclosures: - All list price in US$ - These are rough estimates just for the purpose of providing an idea of deal size. Does not include BP recurring charges for on site maintenance and remote support - Actual beacons density depend on the accuracy needed. For some airports use cases 5 meters accuracy is enough.

Sample customer configurations Excluding mobile App development. Airport Hotel Area: 70, 000 sqm Beacons density*: 4 Area: 500, 000 sqm Beacons density*: 4 Upfront Capex: • Beacons: $132. 5 K • Pro Services: $65. 8 K • Subtotal: $198. 3 K Annual recurring Fees: • LBS Licensing: $350 K • Mapping**: 27. 5 K • Subtotal: $377. 5 K * Density per 1000 sqm ** Based on Mapwize 2 D fee Upfront Capex: • Beacons: $18. 5 K • Pro Services: $12. 5 K • Subtotal: $31. 1 K Annual recurring Fees: • LBS Licensing: $49 K • Mapping**: $9. 2 K • Subtotal: $58. 2 K Assumptions: - LBS License fee based on location + geofencing - Beacons assumptions: ¼ dongle and ¾ standalone - All list price in US$ Hospital Area: 180, 000 sqm Beacons density*: 5 Upfront Capex: • Beacons: $59. 6 K • Pro Services: $32. 4 K • Subtotal: $92. 0 K Annual recurring Fees: • LBS Licensing: $126 K • Mapping**: $15. 8 K • Subtotal: $141. 8 K Area: 13, 000 sqm Beacons density*: 14 Upfront Capex: • Beacons: $12. 1 K • Pro Services: $8. 4 K • Subtotal: $20. 4 K Annual recurring Fees: • LBS Licensing: $9. 1 K • Mapping**: $2. 9 K • Subtotal: $12. 0 K Disclosures: - These are rough estimates just for the purpose of providing an idea of deal size. Does not include BP recurring charges for on site maintenance and remote support - Actual beacons density depend on the accuracy needed. For some airports use cases 5 meters accuracy is enough. SDK licensing is yearly recurring revenue 50 Office building