Federated Wireless $42 million Series B - Allied Mindsinvestors.alliedminds.com/~/media/Files/A/Allied-Minds-IR/reports... · •Exercise technology and ... • Receive formal SAS

© Federated Wireless, Inc. Confidential and Proprietary, All Rights Reserved 2017

Iyad Tarazi, CEO Federated WirelessJill Smith, CEO Allied Minds

14 September 2017

unlocking a spectrum of possibilities

Federated Wireless $42 million Series B

© Federated Wireless, Inc. Confidential and Proprietary, All Rights Reserved 2017 2

The following presentation, including any printed or electronic copy of these slides, the talks given by the presenters, the information communicated during any delivery of the presentation and any question andanswer session and any document or material distributed at or in connection with the presentation (together, the "Presentation"), has been prepared by the Company. The information in the Presentation is notintended to form the basis of any contract. By attending (whether in person or by telephone) or reading the Presentation, you agree to the conditions set out below.THIS PRESENTATION IS NOT A PROSPECTUS. The Presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares orother securities of the Company, nor shall it (or any part of it), or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract whatsoeverrelating to any securities.The Presentation is provided for general information only and does not purport to contain all the information that may be required to evaluate the Company. The information in the Presentation is provided as atthe date of the Presentation (unless stated otherwise) and is subject to updating, completion, revision and further verification. No reliance may be placed for any purpose whatsoever on the information oropinions contained or expressed in the Presentation or on the accuracy, completeness or fairness of such information and opinions. To the extent permitted by law or regulation, no undertaking, representationor warranty or other assurance, express or implied, is made or given by or on behalf of the Company, or any of its parent or subsidiary undertakings or the subsidiary undertakings of any such parent undertakingsor any of their respective directors, officers, partners, employees, agents, affiliates, representatives or advisors, or any other person, as to the accuracy, completeness or fairness of the information or opinionscontained in the Presentation. Save in the case of fraud, no responsibility or liability is accepted by any such person for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost ordamage suffered or incurred, however arising, directly or indirectly, from any use of, as a result of the reliance on, or otherwise in connection with, the Presentation. In addition, no duty of care or otherwise isowed by any such person to recipients of the Presentation or any other person in relation to the Presentation.Nothing in the Presentation is, or should be relied on as, a promise or representation as to the future. The Presentation includes certain statements, estimates, opinions and projections provided by the Companyin relation to strategies, plans, intentions, expectations, objectives and anticipated future performance of the Company and its subsidiaries. By their nature, such statements, estimates, opinions and projectionsinvolve risk and uncertainty since they are based on various assumptions made by the Company concerning anticipated results which may or may not prove to be correct and because they may relate to eventsand depend on circumstances that may or may not occur in the future and may be beyond the Company’s ability to control or predict. No representations or warranties of any kind are made by any person as tothe accuracy of such statements, estimates, opinions or projections, or that any of the events expressed or implied in any such statements, estimates or projections will actually occur. The Company is not underany obligation, and expressly disclaims any intention, to update or revise any such statements, estimates, opinions or projections following the date of this Presentation. No statement in the Presentation isintended as a profit forecast or a profit estimate.Certain industry and market data contained in this Presentation has come from third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have beenobtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys hasbeen prepared by a reputable source, the Company has not independently verified the data contained therein. In addition, certain of the industry and market data contained in this Presentation comes from theCompany's own internal research and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that suchresearch and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject tochange without notice.

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Disclaimer


Deal terms and syndicateDeal terms Syndicate

• Proceeds: $42m• o/w new investors: $27m• Use of proceeds: sales &

marketing, continued R&D; and infrastructure investment

• Valuation (pre): $79.5m• Valuation (post): $121.5m• Deal materially over-subscribed


• Powerful validation of Federated Wireless by wireless industry leaders– Industry commitment to shared spectrum– FW’s position as the industry leader– FW’s spectrum sharing technology and product readiness

• Creates multiple options to accelerate, expand and de-risk path to commercialization– Investors are leaders in substantial markets – Field trials and commercial engagement underway with each

Allied Minds’ perspectives


• Access to 150MHz of high quality spectrum (3.55-3.7 GHZ) aka Citizens Broadband Radio Service (CBRS)

• Open standards ecosystem • 50-80% savings in cost of deployment

vs. DAS• Plug and play deployment enabling new

entrants and new applications

Shared spectrum value driversAccelerating adoption for shared spectrum


Use cases and market drivers

• Incumbent band users

• Rural Broadband

MNO (eg Verizon)

• Network densification in populated areas

• Capacity expansion

MSO (eg Charter)

• Wireless MVNO offload

• Smart home

Neutral Host / MSP (eg AT)

• Cost-effective DAS alternative

• Venues, MDUs, Dorms Hotels

Enterprise (eg Siemens)

• Private LTE Networks

• Industrial IoT

BWA* (eg Telrad)

*Broadband Wireless Access Provider = new term for WiSP


Impact of strategic investors Description M.V.(1) Rationale

#2 US cable company

Leader of end-to-end Enterprise and Residential Wi-Fi System Solutions

Largest US owner / operator of wireless / broadcast infrastructure RE

$59bn

$5bn

$99bn ü3.5G underpins wireless strategy ü16.6m cable customers who could benefit from spectrum sharingüScale: benefits all segments

ü140k global assets: towers, fiber, venue access and DAS systemsüHigh leverage channel to marketüProduct: enterprise solutions

üHigh leverage channel to market via millions of integrated broadband systemsüProduct: consumer + enterprise integrated solutions enablement

(1) As at close 8 Sept 2017


• Industry’s first Spectrum Controller • First large-scale field trials with Charter, ARRIS, American Tower

and Verizon• Large technology partner ecosystem pre-integrated into our

platform• Ahead of FCC certification anticipated in 1Q 2018

Launch of Spectrum ControllerMaking shared spectrum a realityBacked by significant participation from the wireless Industry


The Spectrum ControllerIndustry’s first controller for shared spectrum management

Incumbent protection to

enable shared

spectrum

SAS

Nationwide coverage by

enabling protection

zones

ESC

Open supplier

ecosystem

Automated spectrum

managementtools


Field trialsAnnounced and underway in Q4 2017

• Exercise technology and operations

• New wireless strategy• First ESC deployments• Large-scale access deployment• Indoors and outdoors

• Wireless infrastructure solutions for enterprises and venues

• Flexible and unified end-to-end ecosystem

• New in-building solutions: CBRS, neutral host, private LTE

• First end-end carrier grade CBRS trial• Network densification: advanced LTE • Adds CBRS to unlicensed LTE portfolio

and small cells• Field trials to begin in the fall• Key to ecosystem roll-out: devices;

chipsets

• Enterprise and Residential Wi-Fi System Solutions

• Wireless and wired backhaul• Smart City Wireless Infrastructure• 17 active or completed CBRS trials• ARRIS to acquire Ruckus in October 2017


• Complete Series B fund-raise ü

• Launch spectrum access commercial product ü

• Receive formal SAS and ESC FCC certification (now Q1 2018 )

Next steps for Federated Wireless

• Field trials started in Q4 and going into 2018

• Roll out ESC infrastructure • Customer commercial

launches (3 – 5 in 2018)• First commercial revenue

Allied Minds MBOs Upcoming milestones


• Recurring payments that grow with installed base• High gross margin software-based service• Highly leveraged through partnerships, reducing operating costs • As volumes grow, exponential scale is feasible (runs on AWS)• Immediate opportunities for product expansion into high margin

services in analytics, security, IoT, AR, VR and Machine Learning• Potential for incremental spectrum bands and international

expansion

Economic modelHigh margin recurring SaaS model with exponential growth potential


• Fund-raise and product launch / field trials provide:– Powerful validation – Clear signal of adoption by the wireless industry of CBRS

and spectrum sharing• Cements Federated Wireless’ position as the leader• Strong first mover and competitive advantages, including

through proprietary ESC network• Creates multiple options to accelerate/de-risk path to

commercialization, across multiple substantial markets

Summary conclusions


Thank You

Documents

Federated Wireless $42 million Series B - Allied Mindsinvestors.alliedminds.com/~/media/Files/A/Allied-Minds-IR/reports... · •Exercise technology and ... • Receive formal SAS