NFC solutions and contactless infrastructure are advancing. NFC is happening now with investments from stakeholders and NFC-enabled smartphones hitting the market in late 2011. NFC allows an intuitive link between the physical and virtual worlds, beyond just payments. Its full potential relies on applications connecting the two spheres. NXP provides end-to-end NFC solutions and support across products, ensuring a rich, secure experience across devices and form factors.

1. Next Generation NFC Solutions and
Contactless Infrastructure
Holger Kunkat
April 2011

2. NXP leads in end-to-end Identification systems
We deliver ease of use, reliability and security
Secure Transactions Secure Identity Authentication & Tagging
Passports Supply chain Brand Protection
Banking
ID cards management Device
Public Transport & Access
Health Card Product Authentication
Mobile Transactions - NFC
Driving licenses Tracking Connected
Infrastructure
Pay TV Devices
2

3. NFC is happening now !
3

4. NFC is happening now !
…but this time several inhibitors have been
NFC ramp-up delayed vs. 2005 projections…
removed
Shipments of NFC handsets (M)
Smart phones and mobile internet
500 – 19% smartphone penetration today (vs. 8% in ’06)
– >1B mobile internet user today (vs. <250M in ‘06)
400 OEMs & OS providers investing in NFC roll out
2009 expectations before ecosystems and use cases are fully
proven (technology push vs. consumer pull)
300
MNO’s have taken strong commitments to
deployment of NFC
200
2005 expectations Focus on applications that do not require full
ecosystem control (e.g., transport, location
100 based marketing, ...)
CL infrastructure is rapidly increasing from
0 7% of all readers today to 21% in 2013
2005 2006 2007 2008 2009 2010 2011 2012 2013
COMPANY CONFIDENTIAL 4
Source: Abi Research 2005, Juniper 2009, Gartner Dataquest 2009, Morgan Stanley 2010, NXP internal data

5. The Mobile (R)evolution
Ubiquitous contactless
infrastructure
Phones become Smart Phones (payment, transport,
ID, consumer, tags)
The physical world
(contactless)
Mobile
banking/payments
The cloud
Social networks
Device authentication
App stores
• Mobile Internet fastest growth in CE history, driven by Smart Phones
• Fast growing social networks and location based marketing initiatives
• Raising Flexibility of Application stores (online/OTA management/access, open source)
• Both online & offline mobile transactions will co-exist (tamper resistant hardware)
• Need for more convenient, Intuitive, secure means to connect to the physical world
5

6. Connecting the physical & the virtual world
Payment Ticketing
& Loyalty Access to
Mobile phone = public transport:
Interactive wallet Mobile phone =
transport card
Service Secure log-in
Discovery Mobile phone =
Connect the world of security token, ID card
apps with the
physical world
Physical & Logic Peer-to-Peer
Access Connectivity
Mobile phone = key Exchange information
Mobile phone = Face
Book profile
COMPANY CONFIDENTIAL 6

7. NFC can enable low complexity value creation
in addition to payment …
All NFC commercial launch projects have now clearly emphasized the
importance of NFC tag based services for
– Service Discovery
– Couponing
– Vouchers
Tags linking
directly to web app to
download a coupon.
COMPANY CONFIDENTIAL 7

8. NFC and contactless infrastructure
NFC will enter infrastructure markets
Requirements for contactless infrastructure to communicate to NFC devices
– Read out mobile phones acting as card
– Communication via peer to peer mode to a mobile device
• fast BT or Wi-Fi setup
• Additional services and data exchange
8

9. NFC Applications in Computing and
Consumer Electronics
Transactions Connectivity
Secure Online Quick and secure
Banking WLAN set-up
Bluetooth pairing
Internet Security
Secure internet access
Access Phishing protection
PC login Secure Payment
Company access & and PC login
Secure printing
Password storage
9

10. Enabling use cases beyond payment & ticketing
Social networking
Making new contacts, updating social networking profiles,
recommending services, advertisement, …
Retail
M-payment, loyalty, advertising, link to RFID-system, …
Health Care
Medical records / treatments, dossier tracking/tracing, …
Government
Registration cards, Resident/parking permit, Tolling, …
Automotive
pairing, keys, fleet management, driver profile transfer, …
Gaming
proximity peer to peer gaming experience, easy pairing, …
10

11. Day in The Life at Starbuck’s
COMPANY CONFIDENTIAL 11

12. Complete Offering with End-to-End Support
Secure Transactions
Contactless
Cards
MIFARETM smart cards
& contactless security controllers
P2P Communication
Contactless
Readers
Service Discovery
Contactless
Tags & Labels
NFC IC
NFC Host SW
JavaCard OS Over 100 products
Security Controller to enable a rich & secure
MIFARE4Mobile API
experience
Mobile Solutions
12

13. Summary and Outlook
NFC is happening now !
– All key stakeholders are investing to deploy this new “experience”
– Large number of NFC enabled smart phones will hit the market in H2 2011
& first user experience will come along
it is not only about payment …
– NFC is THE intuitive link between the physical & the virtual world
– The full potential of NFC will be revealed by application developers
And it is not only about Smart phone's …
NXP partner of choice to deliver a premium
Mobile transactions experience
Open and easy to use solutions
Support of multiple form factors
Secure, Interoperable and field proven solutions
COMPANY CONFIDENTIAL 13

14. COMPANY CONFIDENTIAL 14
Subject / Department / Author - September 13, 2012