2011 Objectives, Worldwide preso, January 21 2011

Review of 2011 ObjectivesJanuary 21, 2011

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Quickoffice Corporate Background

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• Business model: OEM preloads plus Direct-to-Consumer (D2C)

– One time licenses

– Adding Software as a Service (SaaS) referred to as Office Anywhere

• Market opportunity: Huge and growing fast – trends all positive180

Countries175+Devices

350MUnits

Quickoffice Overview

Quickoffice is the world’s volume and brand leader in Mobile Office Productivity

Historical Financials

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Income Statements 2006 (A) 2007 (A) 2008 (A) 2009 (A) 2010 (A)

RevenueOEM's 628$ 4,182$ 4,894$ 8,583$ 16,233$ Channels

License Revenue 402 1,235 2,807 6,753 9,425 Subscriptions Revenue - - - - -

Total Revenues 1,030$ 5,417$ 7,701$ 15,336$ 25,658$

Cost of Goods Sold 1,175$ 1,708$ 1,349$ 2,559$ 3,009$

Gross Margin (145)$ 3,709$ 6,352$ 12,777$ 22,649$

Operating ExpensesDevelopment (Eng, QA, PM) 4,207$ 4,982$ 8,185$ 8,138$ 10,885$ Sales & Marketing 1,545 1,276 1,857 2,381 3,271 G&A 2,014 1,845 1,863 1,741 2,127

Operating Expenses 7,766$ 8,103$ 11,905$ 12,260$ 16,283$

Operating Margin (7,911)$ (4,394)$ (5,553)$ 517$ 6,366$

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Quickoffice OverviewQuickoffice dominates mobile platforms for

Smartphones and now Tablets

#1 on Android ≈ 70% worldwide share from in-ROM contracts with Android OEM’s

#1 on iPhone/iPadRanked 1st worldwide in iTunes Business category

#1 on Symbian100% worldwide share

#1 on HP/Palm webOS 100% worldwide share

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http://fortuneapple20.files.wordpress.com/2008/03/apple-logo.jpg

Quickoffice Proprietary and Confidential - Not for Disclosure

$/unit

D2C OEM

Quickoffice Mobile Office

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Current Business Model

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Quickoffice Global Sales Partners

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Quickoffice Connect™ Partners

access searchshare

http://upload.wikimedia.org/wikipedia/en/2/2e/WebEx_logo.svg

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Smartphone Accolades

“Best Business Application”

"Must-have if you plan on using your device as a business tool"

"It has an impressive suite of features"

"The best office suite available for any smartphone"

BEST OF SHOW

"Top 10 Must-Have iPhone Business Apps"

“Top 10 – Must Have iPhone Apps”11-11-2010

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Tablet Accolades

"if you are looking for a strong word processor and spreadsheet editor with a clean user interface, you should definitely consider Quickoffice"

"Quickoffice is my overall favorite application thanks to the iPad optimized user experience, Word and Excel import and export capability, easy file management”

"Easy-to-use cloud support and quick loading of your files allows for fast editing"

"For iPad users who want an app to insert into their daily workflow, Quickoffice should be the app of choice"

"the most popular iPad business app"

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Market Trends

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Market Trends (1/2)

– Explosive growth elements drive Quickoffice opportunity• Tablets: 250m units by 2014• Smartphones: 270m units in 2010; tripling to

875m by 2014 • Mobile Apps: $2.2B in H1 2010 to $15B in 2013 • Cloud Services: Mobile subscribers to increase at

a CAGR of 69% through 2014• Enterprise Mobility: Huge growth in enterprise

mobility; beyond BB to Apple and Android• SaaS: $1.2B in SaaS to be delivered via mobile

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• New way of working– Cross form factors: Computer, Tablet,

Smartphone– Cross OS platforms

• Services integrated into devices as driver of device sale– Blackberry – integrated PIM– iPhone/iPad – iTunes apps– Nokia – Ovi maps, music– Motorola – productivity apps (going after RIM)

Market Trends (2/2)

MSFT

OpenOffice

iWork

Other

$0

$5

$10

$15

$20

Computer Web Mobile (SPand Tablet)

Today$21 B

$3.3B $1.7B

2015

$17 B

$6.8 B

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Office Productivity Trends

Cloud Cloud

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2010 Summary

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End of Year 2010 Summary

Outstanding year! Excellent strength across the business

Financial metrics extremely strong• Q4 revenues 165% of Plan!• Q4 earnings 257% of Plan!• End of Year cash $3.4m > Plan!• Absent Google, Q4 revenues 106% of Plan

D2C and Android OEM channels very strong Marketing visibility/awareness - very strong,

ended Q4 with inclusion in a virtual “who’s who” of media

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On a roll!!

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Q4 2010 PR highlights

• 146 original coverage hits• 300+ hits that included either syndicated stories or mentions in the

latest Android, webOS and Symbian tablets and smartphones• 4 analyst / media interviews: ABI Research, The Unofficial Apple

Weblog, FierceDeveloper• 4 Press Releases to highlight continued growth on Apple and webOS

platforms• 23 blogs to continue wireless thought leadership• 10 product reviews including LAPTOP, MacNewsWorld, 148Apps and

AppleTell• Winner of 2010 MobileVillage Mobile Star Awards for productivity

app• Named finalist in 2010 Andrew Seybold Awards and 2011 CES’

Mobile Apps Showdown

Q4 2010/Full Year GAAP P&L

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Q4 Actual

Q4 Budget Delta Comments

2010 Actual

2010 Budget

RevenueOEM's and Platforms 5,541$ 2,816$ 2,726$ Fav Google & Moto 14,611$ 8,455$ Aftermarket 2,875 2,140 735 Fav Apple & Android 9,425 8,045 Server Revenues 210 218 - 1,100 871 Other Revenues 142 147 (5) 521 636

Total Revenues 8,768$ 5,320$ 25,658$ 18,008$

COGS 897$ 789$ (108)$ Increased A/M dist. Cost 3,009$ 3,110$

Gross Margin 7,871$ 4,531$ 22,649$ 14,898$

Operating ExpensesEngineering 3,256$ 2,085$ (1,171)$ Employee related 10,885$ 9,526$ Ecomm 456 338 (118) Employee & Marketing related 1,514 1,233 Sales & Marketing 510 378 (132) Employee related 1,757 1,597 G&A 533 519 (14) Employee related 2,127 2,101

Total Operating Expenses 4,755 3,321 16,283 14,457

Operating Margin 3,116$ 1,211$ 6,366$ 441$

$ K

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2011 Objectives/Operating Plan


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Macro Goal

Maximize Quickoffice’s Realizable Value


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Objectives Supporting Macro Goal

1. Financial Plan: Meet/exceed Board approved Plan2. Product

– Mobile Office: Make mobile Office products world’s best on iPad, iPhone, Android, webOS, and Symbian

– Office Anywhere: Ship scalable offering by 10-1-20113. Sales

– Optimize Sales Funnel: Maximize A/M sales across Point Products and Office Anywhere; lead the major D2C channels

– Customers: Optimize key relationships (e.g., Samsung, HP, Mot)4. Marketing/PR: Establish Quickoffice as recognized leader in

“mobile office productivity”5. Bus Dev: Build relationships with targeted ecosystem players


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2011 Invoiced Revenue Plan

Q1 Q2 Q3 Q4 2011 TotalD2C Revenue

Smartphones 1,864,662$ 1,821,012$ 2,110,660$ 2,432,502$ 8,228,837$ Tablets 1,536,039$ 1,499,155$ 1,647,796$ 1,840,441$ 6,523,431$

3,400,701$ 3,320,167$ 3,758,456$ 4,272,943$ 14,752,268$

B2B RevenueSmartphones 2,777,750$ 2,228,300$ 1,636,800$ 2,130,013$ 8,772,863$ Tablets 1,300,000$ 625,000$ 660,000$ 765,000$ 3,350,000$

4,077,750$ 2,853,300$ 2,296,800$ 2,895,013$ 12,122,863$

B2B Partners 283,000$ 642,000$ 517,000$ 400,000$ 1,842,000$

7,761,451$ 6,815,467$ 6,572,256$ 7,567,956$ 28,717,130$


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Objective #2: Product (1/3)

Make mobile Office products world’s best • Quickoffice clients (iPhone, iPad, Android

SP/Tablet, webOS SP/Slate, Symbian) regarded as the world’s best versus mobile competitors• Best of breed feature set • Connected to the most meaningful web services• Intuitive and usable user experience• Optimized user workflow• High stability and document integrity• High performance and responsiveness


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Ensure flexible/scalable architectures in our Products• Maximize ability to more quickly create trials, demos, in–

app upgrade links, etc• Optimize ability to add services, either internally

developed, purchased or partnered• Optimize customizability for OEM’s• Improve server and client’s ability to be integrated with

3rd party solutions (e.g., Good)


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Office Anywhere: Design, develop and ship this “Software as a Service” offering• Ship Minimum Viable Solution (“MVS”) by Q3; fuller

commercial solution by 10/1/11• Create and execute integrated company effort to:

‘design/develop’ or ‘partner and integrate’ or ‘acquire and integrate’ critical OA components

• Implement successful go-to-market plans with aggressive marketing

• Create Office Anywhere buzz positioning Quickoffice as market-leading visionary


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Objective #3: Sales (1/2)

Optimize Funnel: Maximize D2C Sales In Targeted Channels• Product Ranking Goals: (in addition to Revenue goals)

– iTunes:• iPad - #1 app in Business in US and ROW each quarter in 2011 • iPad - Top 10 Grossing each quarter in 2011 • iPhone - #1 app in Business in US and ROW by end Q2 and thereafter

– Android Market: Android Smartphone and Tablet rankings• Top 25 in Bus. in US and ROW by end April; top 10 by end Q3; top 5 by

EOY

• Aggressively drive registration to convert unnamed distribution into named available for remarketing. Add 5 million registrants in 2011

• Launch Quickoffice products in 3 of the most relevant emerging Android markets


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Objective #3: Sales (2/2)

Optimize customer relationshipsOEM’s

– Motorola: maintain sole source position on Android– Samsung: win >50% of their Android volume– HP: maintain sole source on webOS w/ favorable economics– Cisco: maintain sole source on the Cius program– Nokia: secure more favorable deal with Addendum 6– HTC: maintain a position into 2012

ISV’s– Fully implement Good deal by 1H 2011– Add one additional Good-type deals (e.g., LMI)

Maximize Quickoffice Connect Eco-System— Add six more cloud services


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Objective #4: Marketing / PR

Build market visibility well beyond our size• Develop umbrella message making Quickoffice synonymous with

“mobile office productivity” – Vital role in mobile market – relatively small company with

outsized market power – Leadership in highest profile stores (iTunes, Android Market)

and devices– Core mobile design DNA produces best mobile UI– Combining native + cloud (services) in winning way

• Take consistent message far and wide in 2011: a) more speaking engagements at key events; b) more Event presence in general; c) more Press Releases; d) company’s biggest launch with ‘Office Anywhere”


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Objective #5: Bus. Development

Build senior-level, strategic relationships with coveted Partners– Platforms

• Google, Microsoft, Apple

– Cloud Service Companies• Google Docs, Adobe Connect, Box, Dropbox,

– Interop Prospects • Oracle (OpenOffice), Adobe

– Horizontal Players• Citrix, Cisco, Oracle, Intuit, SAP/Sybase

– Vertical Players • Motorola, HP, Cisco, Dell


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EOY 2011: Snapshot

2011 Plan delivers:• Excellent financial performance/balance sheet• >60% revenue growth excluding Google in 2010• Strengthened Office product across the important OS’es• Critical SaaS offer addressing the new way of working• Big visibility!• Strategic significance to important OEM’s and Big

Brother Partners• High velocity entering 2012

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2011 OPEX Growth Analysis


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2010 to 2011 Expense Growth

Actual 2010 16,283$ Q4 2010 Annualized 18,596$

2011 Labor GrowthEngineering 2,464$ Product Mgt 585$ eComm & Cust Service 400$ Admin 224$ Sales & Bus Dev 153$

Marketing 653$ Recruiting 325$ Real Estate 240$

2011 Budget 23,640$

Dramatic ongoing investment in growing our business …


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Engineering Staffing

Team size• EOY 2010: 182• EOY 2011: 258; growth in every office

Focus• Current year revenue plan• Investment in Office Anywhere and

supporting functionality and architecture


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Non Engineering Growth

Function Staff Staff

Admin 5 7Product Mgmt 6 13Product Marketing 2 5Creative Services 2 4Sales 5 5Bus Development 1 2eComm 10 15Cust Service 8 11

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All Locations2010 2011

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Office Anywhere

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Quickoffice Mobile Office Suite

Advanced mobile Office with native viewing and editing for Apple, Android, Blackberry, webOS, and Symbian

Spreadhseet.xlsx


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Quickoffice Connect™ Mobile Suite

Full featured Office suite integrated with web services

Quickoffice Tablet Editions

– Redesigned and Optimized for Larger Screen Size

– Utilizes Proprietary SmartTouch™ Technology

– Powerful Visuals and Graphics Combined with Greater Ease of Use

– Greater functionality

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iPad, Android, HP webOS Slate in H1 ‘11 ….

What’s Next?

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Be Productive – Anywhere!

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Office Anywhere Be productive anywhere!

Compatible with all formats of Microsoft Office & Google Docs

“Office Anywhere” by Quickoffice

• Cross form factor and cross platform user experience

• Leverages existing office productivity suites• Low monthly fee 42

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Office Anywhere - Components

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Office Anywhere Components

Access & view files anywhere• From MSFT Office • From Mobile & Tablet Devices• From Cloud Services like Google Docs, Dropbox, Box• From Web File Manager

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Sync Files Across All Devices• Sync with Desktop Clients for Windows & Mac• Sync across all devices• Keep the latest copy of your document on your device always• Use for offline access

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Edit Documents On Any Device• Edit your documents on Smartphone & Tablet • Maintain document integrity for all MS Office formats• Never lose data

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Share Files Anywhere• From any device • Share files using popular services• Publish documents to social networks

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Collaborate• Collaborate with peers• Comment• Annotate

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Present, Print, Fax• Present from any device • Print from device to network printer• Fax from any device

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Online File Mgmt• Online File Mgmt/Web Portal• Tasks and To-Dos• Account Management

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Sync files across all devices

Access & view files anywhere

“OFFICE ANYWHERE”

Edit documents

Share files with anyone

Collaborate with peers

Present, Print or Fax

Online File Management


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Rule your office

Office Anywhere – Go To Market

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$/unit Subscription $/year

D2C OEM D2C OEMPTR

CHANNELS

Quickoffice Mobile Office

“Office Anywhere” by Quickoffice

Strategy Marketecture

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• Work anywhere– Smartphone, Tablet, or Computer – work with the latest

version of your files

• Continuity of workflow– Create, access, edit and share your files the same way using

the same software no matter where you are

• Power without your laptop– Stay productive even without your laptop

Customer Value Proposition

• Office Productivity market is huge and growing rapidly in Quickoffice’s direction– Inflection point now – Tablets make it a “have-to-

have”– Xform factor and xplatform is reality– SaaS with multi device users a real opportunity

• Quickoffice well positioned to fill a clear gap– The right product set– Worldwide distribution and brand recognition– Excellent business partners

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Conclusions

Success depends on you, your teams, and your leadership

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