Over-the-Top B2C Mobile Messaging

Over-the-Top B2C Mobile Messaging

B2C Messaging Today B2C mobile messaging is a multi-billion dollar market in growth mode and is used by businesses to attract, retain, and engage with customers for both marketing and non-marketing/crm purposes. Financial Services Retail Sports Entertainment Healthcare

SMS & MMS Can t Keep Pace High Cost International Fragmentation Unbrandable Short Codes MNO Rules and Regulations Rudimentary Analytics App Publishers Need Additional Revenue Models SMS & MMS are not able to service the rapidly growing B2C mobile messaging market adequately a market ripe for disruption.

WIZ Has the Solution OTT Networks Reduced Costs Alpha Sender IDs Rich Analytics New Revenue Connects businesses to consumers via OTT (WiFi, 3G/4G) networks Reduces costs significantly via bypassing MNO SMS networks Allows global alpha SMS sender IDs and enables replies to alpha IDs, a powerful branding advantage Delivers rich analytics, reporting, and targeting based on smartphone APIs Provides new nonadvertising revenue source for global smartphone application publishers WIZ enables the new revenue-generating category of OTT B2C mobile messaging. Because WIZ circumvents the MNO SMS network, it offers cost savings, richer messages, and better analytics than SMS.

WIZ Message Cloud Any mobile app with wide distribution SMPP Any SMS aggregator message cloud Customers/Senders Partners/Receivers WIZ connects SMS/MMS message aggregators to OTT mobile messaging apps on smartphones via industry standard MNO interface.

B2C and OTT Explode Overall SMS/MMS in decline B2C and OTT sustain major growth 225 175 Revenue ($B) peak: $197B 15% decline 2016: $167B SMS +MMS 100 75 50 Revenue ($B) 2016: $83B CAGR 33% (avg.) B2C 125 75 peak: $165B 49% decline 2016: $84B 2011 2012 2013 2014 2015 2016 P2P 25 0 2012-2016: $42B (total) 2011 2012 2013 2014 2015 2016 OTT MNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016.

Competition The competition doesn t have WIZ s special sauce. App/Consumer Reach Many-to-Many (Reach 3 rd party OTT messaging, other apps with broad distribution) Use existing API One-to- One(Reach your own app only) New API required SMS Aggregator Ease of Adoption

WIZ Unique Selling Points SMS Bypass Increased gross margins for SMS aggregators without changing their existing MNO interface Many-to-Many B2C Push Enables much greater app/ consumer reach than with current 1:1 push notifications model and injects new revenue streams into mobile app developer community Branded Sender ID and Reply-To Industry-first alpha branded sender ID and reply to capabilities increase consumer brand engagement with B2C mobile messages WIZ has a unique architecture, feature set, and business model.

WIZ Enables Many to Many One-to-One Many-to-Many Customers (Message Senders) Global mobile message aggregators Global brands Partners (Message Receipt Enablers) Global app publishers Mobile device OEMs Developers Massive installed base One-to-One push notifications are a proven and exploding market (from zero in 2010 to $2B+ in 2014). WIZ significantly expands the push notifications market with our Many-to-Many model.

Business Model (Today) Businesses (Message Senders) SMS Aggregators Mobile Network Operator Message Receiver 20-30% 70-80% of revenue of revenue Businesses pay to send messages, SMS aggregators collect revenue from business senders and share with mobile network operator (MNO), and MNO collects lion s share of revenue.

WIZ Business Model SDK Businesses (Message Senders) SMS Aggregators App Developers 50% of revenue 25% 25% of revenue of revenue Businesses pay to send messages, SMS aggregators collect revenue from business senders and share with WIZ and partner app publisher (a new revenue stream). SMS Aggregators revenue share and gross margin increased significantly.

WIZ Today WIZ Message Cloud is fully operational today, processing rich media messages for thousands of WIZ Messenger users globally. Message Cloud iphone Windows Phone Android

WIZ Today Scalable Architecture Windows Azure Cloud architecture provides ease of scalability, high availability, and business-grade infrastructure (server, O/S, application) management Secure by Design Phone number validation during registration, back-end system token based signing, HTTPS for all external communications Feature-Rich Push Notifications, group chat, online status, rich media, read receipts, SMS messaging (Android), guaranteed delivery, auto-contact import, HTTPS encryption Today s fully operational WIZ P2P cross-platform push notifications cloud and WIZ Messenger app will reduce time to market for the WIZ B2C cloud and mobile SDK.

Dynmark and WIZ The Dynmark/WIZ relationship is valuable (First trial partnership): an ongoing commercial relationship provides many benefits and key commercial advantages moving forward. Leading U.K. SMS aggregator and mobile marketing firm $1.2M to build WIZ Spun-off all WIZ IP into an independent company WIZ IP resides outside U.S. WIZ founders have indepth knowledge and relationships within SMS aggregator industry which will drive WIZ message volume. WIZ initial trial partner

Roadmap and Milestones WIZ Demo CTO Hired Core Dev Team Hired WIZ Beta Release Commercial Launch: Android WIZ GA Release WIZ SMS Agent on Google Play Trial Partner Integration Additional Partner Recruitment (Message Aggregators, App Publishers) Build Developer Portal Commercial Expansion Developer Marketing WIZ Cloud API and Agent Development + QA Bug Fixing and Enhancements (Reporting, Analytics, Alpha Send and Reply, ios) MMS API Sept. 2012 Q412 Q113 Q213 Q313 Q413 Q114 Current investment requirements will enable WIZ to realize the 15-month roadmap.

Numbers P&L Forecast ($US M) 2012 2013 2014 2015 Revenue 0.0 14.0 86.4 136.7 Gross Profit 0.0 7.0 43.2 68.3 EBITDA -0.2 3.5 36.4 60.7 Funds Required: $3M Use of Funds Hire core team (12) New office Product development and operations for commercial launch Commercial launch in 2013 followed by commercial expansion in 2014. Partners bid on price per message by country to create a competitive bidding exchange starting in 2014.

Numbers 2012 2013 2014 2015 ARPU $1 $1 $2 $2 Quarterly Messages Processed 4 Active Users (millions) -- 30 50 74 WIZ Gross Revenue/ Message ($US) Messages/ User/Month --.008.006.005 -- 10 26 33 2 0 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 messages (billions) Commercial launch in 2013 followed by commercial expansion in 2014. Partners bid on price per message by country to create a competitive bidding exchange starting in 2014.

Founders WIZ's founders are subject matter experts in mobile messaging and application development ecosystems. Oscar Jenkins MBA CEO Founded Nethead (aka X-Stream Networks - first Free UK ISP) in 1993, (acquired by Liberty Surf in 2000 for $75m). 2001 founded mobile messaging firm Dynmark International. 2011 launched Dynmark USA. Martin Barclay B.A.Sc., MBA, P.Eng. VP of Product & Developer Ecosystem Head of Developer Marketing, Americas, Nokia 20082011, Director Product Marketing Ubiquity Software (acquired by Avaya) 2005-2008. Doug Tucker, BSEE CTO linkedin.com/in/oscarjenkins mb@wiz.co linkedin.com/in/mgbarclay dt@wiz.co CTO Tatara Systems, CTO Avaya/Ubiquity Software, CTO MCK Communications, CTO VideoServer www.wiz.co oj@wiz.co www.dynmark.com linkedin.com/in/dougtucker