I4wifi 2014 report telco en

i4wifi a.s.

Telecommunication Products 2014 Distribution Report

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About company i4wifi i4wifi as value added distributor Kind o distriubution business in 2014 Customers of i4wifi Historical revenues Brand share in 2014 Summary of the year 2014 Contacts

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Telecommunication Products 2014 Distribution Report

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Telecommunication Products 2014 Distribution Report

Company i4wifi a.s.

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Joint-stock company Annual turnover about USD 23 million.

Specialized in wireless solutions and networking components industry.

Business activities were launched in 1994 as a private business company.

Leading wireless component supplier in the Czech Republic since 2002 Value added distributor 3

Telecommunication Products 2014 Distribution Report

Corporate philosophy and people "The one whose main goal is the financial profit, can never be successful."

Number of employees is still increasing from 21 in year 2007 to 34 in 2014 work in Sales, Technical (R&D), Warehouse, Accountant and IT departments 4

Telecommunication Products 2014 Distribution Report

Warehouse • Over 40,000 packages dispatched, of that 100% as same-day dispatch in the 2014 • 500 packeges total capacity per day • New and safety warehouse • 3,800 sq m of warehouse space

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Telecommunication Products 2014 Distribution Report

Value added distributor - trainings • • •

i4wifi has certified trainers for Mikrotik and Ubiquiti products Over 4000 specialists in Ubiquiti and Mikrotik RouterOS trainings from i4wifi training center Other specialized trainings for solar technologies

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Telecommunication Products 2014 Distribution Report

Value added distributor - support • • •

8 technicians support our customers everyday About 30 technical questions are solved each day Special support for RouterOS, AirOS and Power technologies

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Telecommunication Products 2014 Distribution Report

Value added distributor - Exhibitions MUM – Mikrotik User Meeting. MUM is biggist meeting of Corporate network engineers, ISP and companies with MikroTik related products and services. i4wifi attends the MUM as exhibitor.

AWC – AirMax World Conference. Ubiquiti conferences around the world training and advising professionals on how they can optimize their networks with the revolutionary AirMax system. i4wifi never missed as exhibitor.

Mikroexpo - Meeting of czech WISP about using not only RouterOS. i4wifi attends each Mikroexpo as speaker.

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Telecommunication Products 2014 Distribution Report

Distribution Business in 2014 There are 2 major lines of business: • Telecommunication products (TELCO)

• Solar power, power storage, electro mobility - EV, accessories (POWER)

Following report focused on the TELCO products 9

Telecommunication Products 2014 Distribution Report

Main Brands in Distribution Ubiquiti Networks (USA), producer of 2,4Ghz, 5GHz, 10GHz and 24GHz hardware known for its reliability and effectivity fit to any network. From backhaul Point-to-Point 24GHz (airFiber), EdgeMAX routers and switches, UniFi enterprise solutions to simple 2,4GHz local AP/CPE MikroTik (Latvia) and their powerful operating system RouterOS installed on all RouterBoards. Offering unmatched configuration options and customatization. Very popular choice of ISP in Czech and Slovak.

TP-LINK and LB-LINK (China) both produce the SOHO Wi-Fi routers, Swithes, modems and other customer electronic solutions. Brands are most popular in Czech Republic 10

Telecommunication Products 2014 Distribution Report

Customers We have a customer base containing about 1200 European providers of internet services (ISP), resellers and other IT infrastructure providers.

Another 500 customers who we support by our products and knowledge in their special projects and 40 000+ regular customers

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Telecommunication Products 2014 Distribution Report

Key Figures of 2014 i4wifi Business Total revenue: USD 22.976 million • 7 % increase of revenue over 2013 • 51% increase of revenue over 2011 Total amount of units sold: 566,120 (of that 465,072 items and 101,048 m of wires) Over 40,000 packages dispatched, of that 100% as same-day dispatch 12

Telecommunication Products 2014 Distribution Report

Revenues Show Steady Growth Primarily due to increase in volume of goods sold

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Telecommunication Products 2014 Distribution Report

Seasonal Characteristics The distribution business tends to peak in spring and fall primarily due to TELCO outdoor units, where the demand has strong seasonal characteristics

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Telecommunication Products 2014 Distribution Report

Revenue by Business Line Telco revenues of USD 10,527 thousand, accounting for 51% of total 2014 revenues represent a major and stable line of business. Further analysis of Telco business line follows. Part „Services“ includes trainings, shipping, storing and other % of Total Revenue services Services; 3%

POWER; 46%

TELCO; 51%

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Telecommunication Products 2014 Distribution Report

Telco Share by Brand - Wireless Wireless market is dominated by two leading competitors brands, UBIQUITI specializing in high-speed TDMA AirMax technology and MIKROTIK specializing in router operating systems. They together account for 80% of total market share. TP-LINK/LB-LINK specializes in small office/home office wireless solutions. % of Revenue WaveRF; 3% GWL/Power; 4% TP-LINK/LB-LINK; 7%

MIKROTIK; 20%

Other; 6%

UBIQUITI; 60%

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Telecommunication Products 2014 Distribution Report

UBIQUITI Products by Revenue Four best/selling UBIQUITI products account for 70% of total brand revenue followed by other products, such as UniFi AC, airFiber AF5 and Rocket M5 in the top UBIQUITI best-sellers.

Ubiquiti Products Share by Revenue

NanoStation M5; 14% Others; 30%

Loco M5; 13%

PowerBeam M5 300; 9%

AirFiber AF24; 9%

ToughSwitch 8 Pro; 2% AirGrid M5 23; 2%

PowerBridge M10; 8%

UniFi Pro; 3% UniFi 3pack; 4% PowerBeam M5 400; 6%

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Telecommunication Products 2014 Distribution Report

MIKROTIK Products by Revenue MIKROTIK product portfolio includes wide range of variants of individual models. The #1 product, accounting for 22% of revenues, is RouterBoard SXT Lite5 (#1 in 2012 with 10% share of revenues) Mikrotik Products Share by Revenue

RBSXT5NDR2; 20% RB911G-5HPnD; 4% RB951Ui-2HnD; 3%

Others; 54%

RBSXT5HPND; 3%

CCR1036-12G-4S; 3%

CCR1016-12G; 3% RB435G; 3% RB951G-2HnD; 3% R52N-M; 3% RB2011UiAS-2HnD-IN; 2%

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Telecommunication Products 2014 Distribution Report

TP-LINK/LB-LINK Products by Revenue TP-LINK and LB-LINK products include mainly home office routers, WDM fiber media converter and variants of the individual models shown in “other” category.

TP-LINK/LB-LINK Products Share by Revenue

TL-WR740N; 21% Other; 32%

TL-WR841N; 16%

TL-WR741ND; 12% TL-SF1008D; 2% MC112CS; 2% TL-WR720N; 2%

BL-WR2000; 2%

TL-SG3424; 3% TL-SG5428; 4%

TL-WR841ND ; 4%

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Telecommunication Products 2014 Distribution Report

Telco Bestsellers in 2014 The most sold products are NanoStation Loco M5 (ranking #1 in 2012 and 2013) followed by NanoStation M5 AirMax (#2), TP-Link WR740N Router (#3) and most favorit CPE made by Mikrotik – RouterBoard SXT Lite5 (#4).

16000

Ubiquiti Loco M5 Ubiquiti NanoStation M5

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TP-LINK TL-WR740N 12000

Mikrotik RB SXT Lite5 Ubiquiti PowerBeam M5 300

10000

TP-LINK TL-WR841N 8000 TP-LINK TL-WR741ND 6000 4000

Ubiquiti PowerBeam M5 400 Ubiquiti AirGrid M5 23 Ubiquiti Rocket M5

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Ubiquiti UniFi Mikrotik RB911G-5HPnD

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Telecommunication Products 2014 Distribution Report

Telco Revenue by Product Type Average selling price for selected products were USD 63,5 per 802.11a/n unit (+2% from 2013), USD 404 per Backhaul links (-17% due to new cheaper products) USD 82,6 per Mikrotik Router Board (+11% due to Cloud Core Router series) and USD 34,8 per 802.11b/g/n unit (+12%, partly due to new, more expensive models sold and due to currency variations) Category

Units

Revenue [USD]

Average Unit Price

802.11a/n

67242

$4 270 131

$63,50

Backhaul links

3009

$1 216 257

$404,21

802.11bgn

34065

$1 185 069

$34,79

Mikrotik RouterBoards

13389

$1 105 433

$82,56

Active wired components

10721

$606 119

$56,54

5 GHz antennas

4651

$426 608

$ 91,72

LED lighting

49332

$417 843

$8,47

802.11ac

1738

$346 223

$199,21

IP cameras and recorders

1730

$279 654

$161,65

Other

230874

$673 106

$2,92

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Telecommunication Products 2014 Distribution Report

Telco Revenue by Product Type Wireless popular complete outdoor units in 802.11a/n category account for 41% of total Telco revenue, supplemented by Backhaul links (12%) and 802.11b/g/n (11%) as other leading products % OF REVENUE IP cameras and recorders; 3% 802.11ac; 3%

Other; 6%

LED lighting; 4% 5 GHz antennas; 4% 802.11a/n; 41%

Active wired components; 6%

Mikrotik RouterBoards; 11%

802.11bgn; 11% Backbone links; 12%

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Telecommunication Products 2014 Distribution Report

Wireless Products - Summary In 2014 unit sales price of telecommunication products further increased because of CZK/USD Exchange rate increasing.

On the other hand, price of Backhaul links further decrease because of wider variety of products.

In 2014, products supporting the latest Wi-Fi platform 802.11ac started favorite in WISP networks. Those products, namely Ubiquiti UniFi, Mikrotik RouterBoards AP/CPE and Ubiquiti PowerBeam and Rocket.

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Telecommunication Products 2014 Distribution Report

Doing Business with i4wifi in 2015 • We are among the TOP 100 leading IT companies in Czech and obtain the CEKIA Stability Award evaluate the stability of company. We were awarded by the highest grade AAA means excellent stability which has only 2% of Czech companies.

• For end users of wireless connection services in the Czech Republic and Slovakia, we operate an on-line service showing a list of ISPs available for a selected ZIP code. Our business partners (ISPs) are promoted through this service.

• We offer wide range of trainings, technical support marketing and storing services.

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Telecommunication Products 2014 Distribution Report

Looking into the Future • We see opportunities in wireless communication of M2M systems, smart houses, security systems and increasing of using ISM bands by improved technologies like 802.11ac and TDMA systems.

• Our goal for 2015 is to continue with education of our and new customers and provide more help when customer need it. We also expect steady growt of our business activities.

• We invite you to cooperate with us in distribution of your products, utilizing our key competences, quality commitment and dedication to customer service.

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Telecommunication Products 2014 Distribution Report

Contact Us for More Information i4wifi a.s.

Prumyslova 11 102 00 Praha 10 Czech Republic – EU Phone: +420 277 007 500 Fax: +420 277 007 529 Mail: export@i4wifi.eu Skype: i4wifi-export http://www.i4wifi.eu

Our sales and technical departments are ready for you.

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