The open version of the BC presentation made to Cinterion managemnt team. M2M solution business is still an opportunity to become reality and revenues soon!

1. Cinterion – LATAM
M2M Business
Leveraging Product Business to Smoothly
Migration Toward a Sustainable Service Business
© Cinterion Wireless Modules GmbH 2008, All rights reserved

2. Wireless Modules and Machine to Machine Applications
Who, What, Where and Why
Module Business
M2M One Solution Business
Contact
Feb-09
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3. ITS: Intelligent Transportation Systems
Examples of ITS solutions that can be deployed quickly and cost-effectively include Volvo System based on Cinterion Module
• traffic light synchronization,
• incident detection and management systems,
• advanced traveler information including real-time traffic, transit, weather,
• work zone and parking information,
• electronic tolling, ramp metering,
• electronic border crossing systems,
• weigh-in-motion truck inspections and commercial vehicle information,
• vehicle-to-vehicle and vehicle-to-roadside communications
• smart transit systems with signal prioritization, electronic fare collection, automated vehicle
location and computer-aided dispatch, and vehicle automation systems for Bus Rapid Transit.
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4. Value Added Services
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5. Business Case Analysis
Mobile Media Solution
Capturing market potential in Brazil 2010 - 2014
By
Luciano Cesar Alakija Palma – Technical Sales Team
For
LATAM Management Meeting / Brazil
04 February 2009
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6. Presentation Overview
Introduction
Introduction
Proposed action
Methods
Business objectives and motivation
Projections
Opportunities threats & constraints
Risks & Sensitivity
Methods
Recommendations &
Conclusions
Scope and boundaries of the case
Contact
Scenarios analyzed
Major assumptions
Cost model
Rationale for benefits
Projections 2010 - 2014
Risks & Sensitivity
Recommendations & Conclusions
Contact
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7. Introduction
Proposed Action
Introduction
Growth solution business by offering ITS / VAS to bus manufactures
Methods
and intra/inter city transport bus companies starting from Brazil.
Projections
Interactivity Entertainment & Communities Information
Risks & Sensitivity
Pools/Multimedia downloads Soap opera scenes/ soccer/video clips Weather Forecast
Recommendations &
Mobile Shopping Internet platforms (app sharing), Joost Latest News
Conclusions
“Remote Control” In bus advertisement /communities Travel distance/time
Contact
mobile interface,
end customer/passenger
VAS
Web interface,
Sends information and content from display/camera straight to any
end customer
(mobile) user / passenger.
Security GPS
camera
LCD
Application Traffic
Mobile
display
& Server
3G Terminal Network Internet Management
Machine
ITS
Sends settings, content schedule, remote updates over the air
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8. Introduction
Business objectives and motivation
Introduction
To generate revenues from (high margin) services business
Methods
– According to 3P program: Minimum Margins >45%
Projections
To create cross segment references from one single project
Risks & Sensitivity
– Automotive, security, tracking and trace, payment (Bus is a POS!!)
Recommendations &
To sell high speed (“cost”) modules for high speedy applications
Conclusions
Contact
To exercise the integrative role with new partners (HW, SW ,
services and operators) Modeling Partnerships
Capture business opportunities in events that require
transportation with special service buses
– Sport: Soccer World Cup 2014, national/regional championships,
– Political: International meetings, forums (Curitiba Trial)
– Regular rented transportation from/to home to/from work(“fretado”)
To participate/focus on the ITS solution market
– Vehicular Communications System provider
– The business development (started in 2007) of this solution is now
mature with tech/market/commercial know how in-house
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9. Introduction
Opportunities
Introduction
To increase relationship with bus manufactures, vehicular
Methods
communication systems suppliers and other participants in the
Projections
automotive value chain
Risks & Sensitivity
To increase know how about the services offered by
Recommendations &
transportation companies (intra/inter cities bus, taxi)
Conclusions
To enrich the company with new business models
Contact
To capture unexplored opportunities in a growing technology
dependent market (Intelligent Transportation Systems)
Possibility of media revenue sharing in the future with operators
and content generators advertising/brand revenues
Threats & constraints
Reduced team to deal with product and solution business
Short range lower cost technologies (WiFi) already in place
– But not well accepted and not able to transmit “on the move”!
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10. Methods
Scope and boundaries of the case
Introduction
Time
Methods
Analysis period: Jan 2010 – Dec 2014
Projections
Focus
Risks & Sensitivity
Bus Market / travels
Recommendations &
Conclusions
Information / Media Mobility
Contact
Organizations impacted
Technical Sales
M2M R&D
Sales
HW, SW and Services partners
Geography
Cinterion Brazil/LATAM
Cinterion South Africa
Cinterion HQ
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11. Methods
Scenarios analyzed
Introduction
1. Intra-cities (Urban) – Probable 12 cities for World Cup 2014
Methods
Assumes the solution implemented in bus for up to 75km distances
Projections
Main market is the urban bus.
Risks & Sensitivity
2. Inter-cities
Recommendations &
Conclusions
Assumes the solution implemented in buses for distances > 75km.
Contact Cup Cities Source Points Of Sales Hit rate - y1 Hit rate - y2 Hit rate - y3 Hit rate - y4 Hit rate - y5
Belo Horizonte ANP 2823 42 127 254 423 847
Brasilia pessoal 2400 36 108 216 360 720
Curitiba ANP 1364 20 61 123 205 409
Fortaleza ANP 1584 24 71 143 238 475
Goiania pessoal 1471 22 66 132 221 441
Manaus ANP 1342 20 60 121 201 403
Natal ANP 691 10 31 62 104 207
Porto Alegre ANP 1572 24 71 141 236 472
Recife ANP 1082 16 49 97 162 325
Rio de Janeiro ANP 7340 110 330 661 1101 2202
Salvador ANP 2322 35 104 209 348 697
São Paulo ANP 13144 197 591 1183 1972 3943
Intercity + Rented
(quot;fretadosquot;) ANTT 80766 2019 6057 12115 20192 40383
Total 117901 2576 7729 15457 25762 51524
Rate Real/Euro 3,01715 Incremental 2576 5152 10305 15457 36066
Intracity Hit rate 30% Penetration - yoy 5% 15% 30% 50% 100%
Intercity Hit rate 50%
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12. Methods
Major assumptions
Introduction
Implementation begins mid-January 2010
Methods
HW, SW and Services business model from Goiania Offer:
Projections
– 1500 buses
Risks & Sensitivity
– EUR 8mio (1st year) + EUR 14mio (from 2nd to 5th year) = EUR 22mio
Recommendations &
Initial focus on Premium Services
Conclusions
Total Basic Complementary Premium
Contact Empresa Denominação Services Services Services Service
AUTO VIACAO 1001 LTDA 30 16 4 10
AUTO VIACAO CATARINENSE LTDA. 74 33 13 13
BEL - TOUR TURISMO E TRANSPORTES LTDA. 17 8 2 7
BRASIL SUL LINHAS RODOVIARIAS LTDA. 14 3 4 7
CIA. SAO GERALDO DE VIACAO 111 79 28 14
EMPRESA AUTO VIACAO PROGRESSO S/A 50 30 7 13
EMPRESA DE ONIBUS NOSSA SENHORA DA PENHA S/A 65 38 25 6
EMPRESA GONTIJO DE TRANSPORTES LTDA. 125 87 29 9
EXPRESSO GUANABARA S/A. 72 39 25 7
NACIONAL EXPRESSO LTDA 49 25 18 6
PLUMA CONFORTO E TURISMO S/A 58 36 12 10
REAL EXPRESSO LTDA 53 29 16 8
REUNIDAS S/A - TRANSPORTES COLETIVOS 76 48 20 9
TRANSBRASILIANA - TRANSPORTES E TURISMO LTDA. 106 56 16 35
UNIAO TRANSPORTE INTERESTADUAL DE LUXO S/A (UTIL) 64 23 9 31
VIACAO AGUIA BRANCA S/A 69 36 18 15
VIACAO COMETA S/A 50 18 13 19
VIACAO GARCIA LTDA. 60 34 17 9
VIACAO ITAPEMIRIM S/A 214 117 79 18
VIACAO SAMPAIO LTDA. 18 8 2 8
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13. Methods
Cost model
Introduction
Cost impacts Mobile Media Life Cycle Phase
Methods
under all
Projections Mobile Media Infrastructure Mobile Media
scenarios
and Start Up Operational Phase
Risks & Sensitivity Year 0 and Year 1 Year 2 toYear 4
Recommendations & • • SW Maintenance costs
One-time license - Design SW
Conclusions • One-time license - Database SW
• Additional SW features/modules
Software • One-time license – Admin SW
Contact
• SW Features/modules
• HW Master + Slave purchase
Resources
• Server system license
• Client system (embedded) purchase
Hardware • Client system (embedded) purchase
• Product Homologation
• Initial training • Continuing training
Personnel • Designer
• SW installation and integration • SW integration services
• SIM purchase / air time • Maintenance
Services
• SIM licenses/ air time
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14. Methods
Rationale for benefits
Introduction
Sales and Marketing Objective
Methods
– To increase sales revenues
Projections
– To improve market share in M2M niche solutions
Risks & Sensitivity
Recommendations &
Conclusions
Strategic Business Objectives
Contact
– To establish strategic alliances
– To become a “total solution” supplier
God upsides in terms of installed points (bus inter/intra cities,
taxis, stations)
Most of developments (network, sw applications) already
done for mobile multimedia industry: several lessons already
learned
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15. Methods
Data Sources
Introduction
Methods
Projections
Risks & Sensitivity
Recommendations &
Conclusions
Contact
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16. Methods
Data Sources – Last Tri-month Indicator
Introduction
Methods
Projections
Risks & Sensitivity
Recommendations &
Conclusions
Contact
Feb-09
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17. Methods
Data Sources
Introduction
ABRATI Quantitative research on bus services
Methods
Quantitative-Resea
rch
Projections
ANTT: http://www.antt.gov.br/passageiro/anuarios/anuario2008/default.asp
Risks & Sensitivity
Recommendations &
Conclusions
Sindpeças
Study-automotive-s
Contact
uppliers-2008
ANFAVEA
ANP
ÀNP-Summary
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18. Projections
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19. Risks & Sensitivity
Low financial risks since infrastructure
is part of the Acceleration Growth
Introduction
Program and credit is offered by
Methods
government
Projections
Risks & Sensitivity
Recommendations &
Conclusions
Contact
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20. Reccomendations & Conclusions
Based on the niche market potential of this Mobile Media
Introduction
Solution and current analysis on the upside trends of the
Methods
automotive/services industry we further recommend that
Projections
Cinterion:
Risks & Sensitivity
Start planning investment in resources for the M2M
Recommendations &
Solution business
Conclusions
Contact
Focus M2M business only on Cross sector projects to
leverage product business experience toward a solution
recognized brand
Model its partnership program on complementary
partners in the automotive value chain
Last, but not least, take advantage of its global scale to
further integrate its global M2M team in relevant regional
projects
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21. Contact
Cinterion
Wirless Modules GmbH
Address: R. Werner Siemens, 111, São Paulo
Phone: +55 11 3908 1649 / +55 11 8402 9769
E-Mail: luciano.alakija@cinterion.com
Detailed and latest information on our products and
services is also accessible via our website:
www.cinterion.com
Feb-09
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22. The M2M One Solution
SIM Management
Features: SIM Management
Worldwide coverage
Flat fee pricing world wide
One invoice for all cards
Secure communication
SMS center available
MNO agreements for
network availability
Ruggedized SIM cards
possible
Fraud protection
Integrated order
management for SIM card
together with device
GPRS service available
manufacturing process
Service arrangement on request
Feb-09
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23. The M2M One Solution
Application & Server
Application Server User
and Database
Web interface to end customer &
employee
Data flow via HTTP, SSL
1. Remotely controls the machine
2. Individual customized web portal
3. Affords access to all machine data
4. Generates reports in different formats
Web services to applications
Data flow via SOAP, HTTP
Highly scalable software architecture
State-of-the-art software
technologies Remote data access and
exchange between M2M One
Global available by web interfaces
Solution and customer system
Multi-language support
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24. BACKUP
BACKUP
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25. Goiânia Project
http://www.rmtcgoiania.com.br
Confirmation of the LCD
display in the project
Initial idea LCD display example Demonstration Timeline
Digital Display for from Curitiba Trial at Goiana
(weeks)
next stop inforation
Feb-09
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26. BACKUP
Feb-09
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