43
Presented by: Success Factors in the Connected Home

Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

  • Upload
    others

  • View
    4

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

Presented by

Success Factors in the Connected Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Audio Recording Information

Select Microsoft Office Live Meeting Replay to view the webcast in its entirety

Audio Part 1 ndash Success Factors in the Connected Home Webcast Slides 1 - 7

Click here to View Recording

Recording URL httpswwwlivemeetingcomccparksassociatesview

Recording ID P4WK9Q Attendee Key 8`4zW2

Audio Part 2 ndash Success Factors in the Connected Home Webcast Slides 8 - 42

Click here to View Recording

Recording URL httpswwwlivemeetingcomccparksassociatesview

Recording ID 9B7RDB Attendee Key 8`4zW2

2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Success Factors in the Connected Home

3

Agenda

bull Connected home infrastructure

bull Big data and analytics

bull Consumer interest

bull Early adopter experience

bull Market opportunity

bull What Sigma has learned

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

4

0

10

20

30

40

50

60

70

80

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

US Broadband Penetration of ALL HH

copy 2013 Parks Associates

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

5

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 2014 2015 2016

US Smart Phone Penetration

copy 2013 Parks Associates

of ALL HH

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

6

Source Parks Associates

$001

$010

$100

$1000

$10000

$100000

$1000000

$10000000

$100000000

1980 1985 1990 1995 2000 2005 2010 2015

Price of Storage ($GB)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home - OEM

Virtual Device

Connected Device

Gateway

Device Monitoring and

Control

Device Analytics Modeling and Control Data Services

7

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Growing Functionality

8

Evolution of Capabilities

bull Data Collection

bull Display

bull Reporting

bull Modeling

bull Notifications

bull Prediction

bull Intelligent Control

Connected Home

Smart Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 2: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Audio Recording Information

Select Microsoft Office Live Meeting Replay to view the webcast in its entirety

Audio Part 1 ndash Success Factors in the Connected Home Webcast Slides 1 - 7

Click here to View Recording

Recording URL httpswwwlivemeetingcomccparksassociatesview

Recording ID P4WK9Q Attendee Key 8`4zW2

Audio Part 2 ndash Success Factors in the Connected Home Webcast Slides 8 - 42

Click here to View Recording

Recording URL httpswwwlivemeetingcomccparksassociatesview

Recording ID 9B7RDB Attendee Key 8`4zW2

2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Success Factors in the Connected Home

3

Agenda

bull Connected home infrastructure

bull Big data and analytics

bull Consumer interest

bull Early adopter experience

bull Market opportunity

bull What Sigma has learned

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

4

0

10

20

30

40

50

60

70

80

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

US Broadband Penetration of ALL HH

copy 2013 Parks Associates

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

5

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 2014 2015 2016

US Smart Phone Penetration

copy 2013 Parks Associates

of ALL HH

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

6

Source Parks Associates

$001

$010

$100

$1000

$10000

$100000

$1000000

$10000000

$100000000

1980 1985 1990 1995 2000 2005 2010 2015

Price of Storage ($GB)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home - OEM

Virtual Device

Connected Device

Gateway

Device Monitoring and

Control

Device Analytics Modeling and Control Data Services

7

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Growing Functionality

8

Evolution of Capabilities

bull Data Collection

bull Display

bull Reporting

bull Modeling

bull Notifications

bull Prediction

bull Intelligent Control

Connected Home

Smart Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 3: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Success Factors in the Connected Home

3

Agenda

bull Connected home infrastructure

bull Big data and analytics

bull Consumer interest

bull Early adopter experience

bull Market opportunity

bull What Sigma has learned

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

4

0

10

20

30

40

50

60

70

80

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

US Broadband Penetration of ALL HH

copy 2013 Parks Associates

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

5

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 2014 2015 2016

US Smart Phone Penetration

copy 2013 Parks Associates

of ALL HH

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

6

Source Parks Associates

$001

$010

$100

$1000

$10000

$100000

$1000000

$10000000

$100000000

1980 1985 1990 1995 2000 2005 2010 2015

Price of Storage ($GB)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home - OEM

Virtual Device

Connected Device

Gateway

Device Monitoring and

Control

Device Analytics Modeling and Control Data Services

7

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Growing Functionality

8

Evolution of Capabilities

bull Data Collection

bull Display

bull Reporting

bull Modeling

bull Notifications

bull Prediction

bull Intelligent Control

Connected Home

Smart Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 4: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

4

0

10

20

30

40

50

60

70

80

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

US Broadband Penetration of ALL HH

copy 2013 Parks Associates

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

5

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 2014 2015 2016

US Smart Phone Penetration

copy 2013 Parks Associates

of ALL HH

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

6

Source Parks Associates

$001

$010

$100

$1000

$10000

$100000

$1000000

$10000000

$100000000

1980 1985 1990 1995 2000 2005 2010 2015

Price of Storage ($GB)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home - OEM

Virtual Device

Connected Device

Gateway

Device Monitoring and

Control

Device Analytics Modeling and Control Data Services

7

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Growing Functionality

8

Evolution of Capabilities

bull Data Collection

bull Display

bull Reporting

bull Modeling

bull Notifications

bull Prediction

bull Intelligent Control

Connected Home

Smart Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 5: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Infrastructure in Place

5

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 2014 2015 2016

US Smart Phone Penetration

copy 2013 Parks Associates

of ALL HH

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

6

Source Parks Associates

$001

$010

$100

$1000

$10000

$100000

$1000000

$10000000

$100000000

1980 1985 1990 1995 2000 2005 2010 2015

Price of Storage ($GB)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home - OEM

Virtual Device

Connected Device

Gateway

Device Monitoring and

Control

Device Analytics Modeling and Control Data Services

7

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Growing Functionality

8

Evolution of Capabilities

bull Data Collection

bull Display

bull Reporting

bull Modeling

bull Notifications

bull Prediction

bull Intelligent Control

Connected Home

Smart Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 6: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

6

Source Parks Associates

$001

$010

$100

$1000

$10000

$100000

$1000000

$10000000

$100000000

1980 1985 1990 1995 2000 2005 2010 2015

Price of Storage ($GB)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home - OEM

Virtual Device

Connected Device

Gateway

Device Monitoring and

Control

Device Analytics Modeling and Control Data Services

7

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Growing Functionality

8

Evolution of Capabilities

bull Data Collection

bull Display

bull Reporting

bull Modeling

bull Notifications

bull Prediction

bull Intelligent Control

Connected Home

Smart Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 7: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home - OEM

Virtual Device

Connected Device

Gateway

Device Monitoring and

Control

Device Analytics Modeling and Control Data Services

7

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Growing Functionality

8

Evolution of Capabilities

bull Data Collection

bull Display

bull Reporting

bull Modeling

bull Notifications

bull Prediction

bull Intelligent Control

Connected Home

Smart Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 8: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Growing Functionality

8

Evolution of Capabilities

bull Data Collection

bull Display

bull Reporting

bull Modeling

bull Notifications

bull Prediction

bull Intelligent Control

Connected Home

Smart Home

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 9: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Cost Curves Moving in the Right Direction

9

Source EPRI

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

2011 2012 2013 2014 2015 2016

Cost Per Appliance

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 10: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Adding Connectivity to Everyday Products

10

Cascading Connectivity into Products

bull Premium Tier (10 of unit volume)

bull Mid Tier (20 of unit volume)

bull Value Tier (70 of unit volume)

2013 2014 2015 2016 2017 2018

Premium 1 2 8 22 50 80

Mid 1 2 8 22

Value 1 2

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 11: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

11

Indoor Web (IP) Camera $ 9999

Outdoor Web (IP) Camera $ 14999

Pantilt IP Camera $ 15999

Electronic Door lock $ 15999

Lighting Control Module $ 3999

DoorWindow Sensor $ 3999

Appliance Switch $ 3999

Smart Thermostat $ 12999

Garage Door Control Module $ 8999

Motion Sensor $ 2999

Smoke amp Fire Detector $ 2999

Carbon Monoxide amp Gas Leak Detector $ 2999

Flood amp Water Leak Detector $ 3999

Emergency Call-button $ 1999

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 12: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Consumer Demand for Home Systems

12

16

17

19

20

21

25

26

26

27

28

28

33

38

42

0 10 20 30 40 50

Garage Door Control Module

Pantilt IP Camera

Indoor Web (IP) Camera

Outdoor Web (IP) Camera

Door lock

Lighting Control Module

Switch that monitors and turns onoff appliances

Thermostat

Flood amp Water Leak Detector

DoorWindow Sensor

Motion Sensor

Emergency Call-button

Carbon Monoxide amp Gas Leak Detector

Smoke amp Fire Detector

Specifying Likely (ie Rating 5-7)

Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while

you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 13: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Telecom and Cable Operators Entering the Market

Strategy Basic package targets households

without monitored security

raquo Home Monitoring Kit indoor camera lighting

module Add-ons for energy door locks

appliances thermostats etc

raquo TV is the primary interface

raquo Self-installation

13

Strategy Tiered packages and broadband-bundled

pricing

raquo Basic tier ndash Professional monitoring

touchscreen control and security sensors

raquo Mid tier ndash camera and additional security HW

raquo Top tier ndash automation energy and lighting

raquo Professional installation

Strategy Ease of use and simplicity

raquo Professionally monitored security is the core

service

raquo Add-ons for automation and energy

raquo Sold through 2000+ retail outlets

raquo Professional installation

Strategy Full featured offering

raquo Includes touchscreen UI professional

monitoring keychain remote sensors Opt

thermostats smoke detectors and lighting

raquo News entertainment and info content is

available on the keypad

raquo Professional installation

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 14: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

65

64

56

53

52

Lights

Thermostat

Security cameras

Garage door

Door locks

00 10 20 30 40 50 60 70

Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home (Among All BB HHs n=10000 +-098)

14

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 15: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Connected Home ndash Product Ownership

15

How likely are you to recommend your home control system to your friends or family

Promoters 9-10 - Detractors

0-6 = Net Promoter Score

NPS = 16

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 16: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

16

-7

10

17

24

44

60

-20

-10

0

10

20

30

40

50

60

70

1 feature (n=354 plusmn521)

2 features (n=182 plusmn726)

3 features (n=184 plusmn722)

4 features (n=176 plusmn739)

5 features (n=103 plusmn966)

6 features (n=103 plusmn966)

Net

Pro

mo

ter

Sco

re

NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 17: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Current State of Home Systems

17

61 61 59 58 64

77

-41 -39 -38 -47

-32

-11

-60

-40

-20

0

20

40

60

80

100

Door locks Garage door Lights Thermostat Security cameras Flood detector

NP

S Sc

ore

Very satisfied with the installation process (Rating 67 on a 7-pt scale)

Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)

NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)

Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family

(Among BB HHs Having Specified Features)

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 18: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc

Success Factors in the Connected Home Bill Scheffler Director of Sales North America

May 30 2013

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 19: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

19 confidential | Sigma Designs Inc

Key Success Factors

Timing

Selecting the right technology

Working with the right go-to-market

partner

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 20: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

20 confidential | Sigma Designs Inc

The Disrupter

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 21: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

21 confidential | Sigma Designs Inc

Drivers in the Home Control Market

0

2

4

6

8

10

12

14

2004 2006 2008 2010 2012 2014

Global Home Control Market

Bill

ions U

SD

Berg Insights Sigma Designs

Telco and Security companies

begin to enter the market

Smart phones

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 22: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

22 confidential | Sigma Designs Inc

Entering Uncharted Territory

Paradigm shift

Competitive landscape

First mover advantage

Open to all size companies

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 23: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

23 confidential | Sigma Designs Inc

Revenue Opportunities

Customersrsquo expectations

are rising

Analysts expect major

growth Smart home system shipments

expected to increase by more than

600 over next 5 years This

equates to more than 38 million

households world wide by 2015(ON

World )

Service providers and

device manufactures

benefit

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 24: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

24 confidential | Sigma Designs Inc

Market is Heating Up

Consumers are ready and

willing to spend

Smart phones and tablets

are everywhere

Largest industry players

are entering

Home control solutions are

becoming mainstream and

accessible

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 25: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

25 confidential | Sigma Designs Inc

ADT movie clip

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 26: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

26 confidential | Sigma Designs Inc

ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive

Solutions connected devices due to the interoperability of the

devices across the Z-Wave platformrdquo - Steve Shapiro Vice-

President Product Solutions ADT

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 27: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

27 confidential | Sigma Designs Inc

Z-Wave is the Leader in Home Control

RF solution in a single chip

Wireless mesh network

Extremely simple set-up

Ultra low power

Interoperable

Backwards compatible

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 28: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

28 confidential | Sigma Designs Inc

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

800 Smart Phone

Momentum

Z-Wave Interoperable Product Progress

Num

be

r o

f C

ert

ifie

d In

tero

pe

rable

P

rod

ucts

Service

Provider Entry

200

1000

700

500

400

300

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 29: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

29 confidential | Sigma Designs Inc

More than 200 Z-Wave Alliance Partners

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 30: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

30 confidential | Sigma Designs Inc

Why Z-Wave Next Gen

Internet of Things

Z-Wave Next Gen

Enabling End-To-End solutions

Energy

Management

Home

Security

Home

Health

Vivint ADT Verizon

Telefonica ATampT

Alarmcom

bull 800+ Devices

bull 55+ Countries

bull 10 Years Maturity

bull Product Interoperability

bull Available In All

Channels

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 31: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc

Ben Garcia Field Applications Engineer

Sigma Designs

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 32: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

32 confidential | Sigma Designs Inc

What Sigma has learned

Speed to Market

Increased profitability

Better consumer experience

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 33: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

33 confidential | Sigma Designs Inc

Z-Wave Next Gen

Chips

Modules

Reference designs

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 34: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

34 confidential | Sigma Designs Inc

Z-Wave Next Gen Fast Time to Market

Pin to pin compatible solutions for existing partners

-Modular solutions for new entrants

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 35: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

35 confidential | Sigma Designs Inc

Z-Wave Next Gen for Flexibility amp Time to Market

USB form factor to go into

any USB device

Time to market

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 36: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

36 confidential | Sigma Designs Inc

Z-Wave Next Gen Consumer Experience

Increased range to make coverage even more robust

Almost 70 lower power consumption in stand-by mode

Simpler installation ndash Z-Wave easier to deploy with network wide

inclusion

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 37: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

37 confidential | Sigma Designs Inc

Z-Wave Next Gen Increased Profitability

4x larger memory foot print so one chip can do all the work saving

the cost of 2 chip solutions and allowing bandwidth for more

features and product differentiation

Simpler installation ndash making install time for professionals even

faster and customer- self installs save on expenses

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 38: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

38 confidential | Sigma Designs Inc

Home Control and Internet of Things

Tapping into the market

New connected devices

Devices become remotely upgraded

Z-Wave

Internet of

Things

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 39: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

39 confidential | Sigma Designs Inc

And we do all this while remaining backwards compatible

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 40: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

40 confidential | Sigma Designs Inc

Key success factors

Timing -

Technology -

Partner -

Now is the time

Z-Wave

Sigma Designs

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 41: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc

Thank you bill_schefflersigmadesignscom

ben_garciasigmadesignscom

wwwsigmadesignscomzwavenextgen

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 42: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

Thank You

Tom Kerber Director of Research

Parks Associates

15950 N Dallas Parkway Suite 575

Dallas Texas 75248

Office 9724901113

Fax 9724901133

tomkerberparksassociatescom

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32

Page 43: Success Factors in the Connected Home...Success Factors in the Connected Home 3 Agenda • Connected home infrastructure • Big data and analytics • Consumer interest • Early

wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates

Expanding the Home Security Value Proposition

43

NEITHERS

41

HOME SAFE-GUARDERS

27

LIFE MAXIMIZERS

32