NFC: In Touch With Innovation

1 NFC: In Touch with Innovation Koichi Tagawa Sony Chairman, NFC Forum AIPIA Congress Tokyo October 2, 2012 2 About NFC 2 NFC is a Wireless Communication 3 Global Interoperability Form Factor Free 4 4 5 NFC: How Does It Work? 3 communication modes 5 connect the world of apps with the physical world ..Apps jump into the world and Touch people, objects and other apps. connect devices through physical proximity .. magical connection of devices by simply touching them. A true device hand shake . connect to an interactive wallet .. Incorporates the use of a secure element to allow your phone to act like an interactive card for payment, transportation, ID and physical access Tag/Card Reader/Writer (Terminal) Multi-standard (ISO/IEC14443, JIS X 6319-4/Felica, ISO/IEC15693) Peer to Peer (Device to Device) NFCIP-1, NFCIP-2 (ISO/IEC18092, ISO/IEC21481) Card Emulation (Secure Element) EMVCo/ISO/IEC14443, JIS X 6319-4/Felica 6 Three Mandatory NFC Modes a different look 6 Card Emulation Peer-to-Peer Reader/ Writer Similar quantity to contactless plastic cards Features -Infrastructure compatible -Virtual card -Network enabled card -Payment and Transport 10 times, or more larger quantity than Terminals Never before in the hands of consumers Open applications New Paradigm!

2 Never existed before Open applications New Frontier! 100 300+ million devices per year NFC is Consumer facing ! 7 NFC Provides a Unique Bridge Virtual World Physical World Consumers Retailers Consumers Marketers Consumers Manufacturers NFC Users NFC Users This will weave NFC into the fabric of people s lives and drive greater use and demand. 7 8 Momentum is Building Berg Insight 100 million cell phones using NFC technology predicted to be sold this year alone Deloitte In 2013 there may be as many as 300 million NFC smartphones, tablets and eReaders sold Frost & Sullivan By 2015, NFC will be the most-used solution for mobile payment, enabling worldwide transactions totaling about $ billion Gartner Research 50% of smartphones will have NFC capability by 2015 Juniper Research By 2017.

3 1 in 4 US consumers will use NFC-enabled devices to pay for goods in-store Yankee Group Global mobile transactions predicted to grow to more than $1 Trillion by 2015 8 8 NFC Phones Here Now 9 Available in the Acer Cloud S500 Acer Liquid Cloud S500 BIackBerry Bold 9900/9930 Acer E320 Liquid Express Blackberry Curve 9350/60/70 BIackBerry Bold 9790 Cmii 1/3 BIackBerry Curve 9380 Fujitsu Arrows F-07D Casio Ruggedized IT-800 RGC 35 Casio DT-X8 Google Galaxy Nexus Google Nexus S HTC Desire C HTC Droid Incredible 4 GLTE HTC Evo 4 GLTE HTC Incredible HTC One X 9 More NFC Phones Available Now 10 HTC Ruby / Amaze Huawei Sonic/ Turkcell T20 Lenovo K800 LG Optimus 3D Max/ 3D Cube LG Optimus Elite LG Optimus L5/L7 LG Optimus LTE/2 LG Optimus Net LG T530/ Ego LG Optimus Vu LG Viper Mobiwire Cosyphone Motorola Droid Razr Motorola MC75A HF Motorola Photon Q 4G LTE Nokia 603 Nokia 700 Nokia 701 10 More NFC Phones Available Now 11 Nokia 801T Nokia 808 Pureview Nokia Oro Nokia C7 / Astound Nokia N9 Orange San Diego Pantech Sky Vega LTE Pantech Sky Vega Racer Porsche Design P'9981 Prada by LG Samsung Galaxy Mini 2 Samsung Galaxy Note Samsung GALAXY S II Samsung S5230/S5260 Samsung Galaxy S Advance Samsung Galaxy S Blaze 4G Samsung SHW-A170K Samsung GALAXY S III 11 More NFC Phones Available Now 12 Samsung Wave 578 Samsung Wave M / Y Sonim XP3300 Core NFC Sonim XP and NFC Sony Xperia S/P/Ion/Sola Turkcell MaxiPRO5 Xolo X900 ZTE Turkcell MaxiPLUS5 Turkcell T11 Maxiphone And more being 12 NFC Tablets 13 A fast-moving new segment.

4 with several models recently announced and put on the market with more rumored to be in the works: The Sharp RW-T110 Tablet announced in March expands on the NFC capabilities of the RW-T107 Tablet from 2011 Google Nexus 7 was announced in June 2012, and is now available in the US, UK, France, Germany, Spain, Canada, and Australia Samsung Galaxy Note II phone/tablet with NFC release and launch dates coming Samsung also is rumored to be prepping a new tablet with NFC functionality TazPad from TazTag aimed at retail was launched in France 13 NFC Tablets 14 A fast-moving segment, there are many NFC enabled tablets on the market now, with more rumored to be coming from Samsung, Asus, Lenovo, and more Google Nexus 7 TazTag TazPad Sharp RW-T107/T110 Kuoziro FT701W LG Optimus Vu Samsung Galaxy Note Panasonic BizPad Asmaitha Sruta 7 Tablet DLI 9000 14 More NFC Devices 15 Examples of additional types of NFC devices, available now and on the Moneto.

5 NFC microSD for the iPhone & Android Revosys V5 interactive taxi terminal/tablet ViVOtech NFC payment terminals Sony RC-S380 reader/writer Glidepoint NFC trackpad Smart Meters for utility companies Nintendo Wii U controllers Payment wristbands RhythmTrak Heart Monitor NFC Digital Gum Goods by Razorfish NFC in Consumer Electronics Pairing NFC Devices Home computer components In-car devices Home entertainment systems Headsets and handsets Cameras and printers / digital frames Connectivity Quick, secure Bluetooth and Wi-Fi set-up Fast data transfer Audio handover Information Gathering Read product history from smart tag to NFC phone 16 NFC Forum 17 NFC and Active and Intelligent Packaging 17 18 NFC Single step Natively supported in major OS No lighting required Up to 1MB data Active and Passive Commerce option QR Codes Multiple steps App installation required Lighting required Up to 3KB data Passive No commerce option 18 NFC and QR Codes 19 NFC Active (intelligent)

6 3 operating modes Multi-purpose Security options Commerce option B2B2C Proximity RFID Passive 1 operating mode Single-purpose Few security options No commerce option B2B only 19 NFC and Proximity RFID 20 Commercial Uses Package tracking Content identification Temperature exposure log Authentication 20 NFC and Active Packaging 21 NFC tags used to authenticate high-end product Complementing location-based services, tracks bottles from production to end user Protects against counterfeit and fraud 21 Example: Opus One Wines 22 A tag is placed on each bottle label holding a unique identifier, vintage, bottle size, and validation code Bottle is scanned before placing in a wooden case, which is also tagged The case tags are matched against palette tags The palette tag is matched to the invoice upon delivery 22 Opus One: How It Works Example: Shipping Tag 23 AIOI Systems Co.

7 , Ltd. Rewritable shipping tag with NFC and e-ink display Smart tag used to show distribution lists or barcodes for logistics Enables network-linked logistics management Efficient; reduces paper consumption 24 NFC Brings Efficiency 24 More flexible data management via NFC devices NFC and barcodes working together NFC-based picking system achieves ROI within 2 years 25 Promotional Uses Personal messages Coupons and discounts for future purchases Promotional offers Cross-sales 25 NFC and Active Packaging 26 Informational Uses Dosage directions Ingredient lists Emergency numbers Information sources Freshness status 26 NFC and Active Packaging 27 The NFC Forum 27 28 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 28 Define and Stabilize Technology Refine Technology Expand Ecosystem Promote End User Usage Support Interoperability Enhance Technology Support Ecosystem 2008 2011 2010 2012/13 2009 We Are Well into the Journey 29 Members September 2012 SPONSOR MEMBERS PRINCIPAL MEMBERS 30 Members September 2012 NONPROFIT MEMBERS IMPLEMENTER MEMBERS ASSOCIATE MEMBERS 31 32 NFC Forum Activities 32 Current Focus of Work Establish the N-Mark as the global symbol of NFC

8 Functionality Continue to develop and enhance specifications to meet market demand Expand and simplify the Certification Program to speed products to market Focus on educating the ecosystem about the potential of NFC through liaisons, Special Interest Groups, partnerships, and industry outreach Establish confidence and credibility in the technology for everyone in the value chain Clarify the basis upon which Innovation , partnerships, and the NFC ecosystem will flourish 33 NFC Forum N- Mark Consumer-facing mark Available for devices and software via free click-through license agreement Universal symbol for NFC technology Shows where to Touch another N-Mark to use NFC technology Use on smart posters, devices, packaging, software, POPs, signage, labels, cards, and much more Represents ease, convenience, greater device functionality, and fast action Download at: 34 Compliance Program Components 35 Certified Device Plugfests Certification Program Interoperability Program Compliance Program 2012 and Beyond Vertical Special Interest Groups (SIGs) 36 Awareness of Technical Committee Ecosystem Committee 37 NFC Today Core specifications are in place Products being certified N-Mark launched and supported by many global companies Multiple use cases on multiple devices being deployed What s next.

9 Optimizing NFC for all potential use cases NFC is a Horizontal Technology Reaches across multiple devices and multiple use cases Consumers may not realize NFC is the technology behind every use case Killer apps like phones for payment and transit will only be part of the eventual deployment, : Tag reading Consumer electronics pairing Digital media transfer 38 Consumer demand for NFC is essential for success. NFC enables multiple use cases. To capture wider consumer demand, broader use cases must be facilitated. 39 Our Solution Build a platform for Special Interest Groups (SIGs) to get involved with NFC Rationale: Give industries the resources to figure out how NFC can work in their vertical Provide a common approach to achieve industry-wide interoperability, usage of marks, consumer education, etc.

10 Facilitate discussion and development 40 Vertical SIGs 2-way communication makes this work Obtain business requirements for possible specifications and certification implications Jointly work on education and guidelines for each industry ( , white papers, demos, best practices, how-to guides, etc.) Look at NFC from the consumer perspective and make sure the value proposition is there First-Generation NFC CE Payment Retail Health Care Airlines Transit New An Invitation to AIPIA Members Join the NFC Forum Participate in a SIG ( , Retail) 41 In Summary NFC is a broad and robust technology Our work is focused on ensuring a smooth and timely deployment for solutions providers Specifications that cover all use cases now and in the future Certification program that ensures compliance without undue complexity Educational programs in conjunction with vertical market players to show and encourage the breadth of possible uses 42 Thank you!