The document summarizes Swisscom Hospitality Company's services for the hotel industry. It discusses challenges facing hotels, such as increased competition and changing customer expectations. It outlines how information technology can help hotels address these challenges through solutions like cost optimization, personalized services, and standardized deployments. Swisscom provides consulting, network operations, applications integration, and other services to help hotels manage increasing IT complexity and deliver enhanced guest experiences.

1. Swisscom Hospitality Company presentation 2011 V2011-1

2. Contents 2 The hotelier’s business and ours Hospitality & Technology 7 Consulting – System Integration – Network Operations – Applications Swisscom Service Portfolio 39 Selected clients case studies Hotelier Testimonials 44 The only Telecom company dedicated to Hospitality About Swisscom

3. The hospitality sector faces important challenges that require a smart and flexible response Competition : Many hotel brands address the same client segments with comparable services; differentiation of brand value is essential. Changing customer base : New generation of guests takes latest technologies for granted, while questioning some of the traditional hospitality concepts. Rising service expectations : Guests expect enhanced services, i.e. more personalization during their stay but also before and after their stay. Increasing cost consciousness : Recent economic downturn has led many companies to cut their travel budgets; likewise, leisure travelers have become more cost conscious.

4. IT can strengthen the hotel’s competitiveness, as regards both service quality and cost Cost optimization New service concepts Service integration Service differentiation Personalized services esp. on the guest’s own devices Customization to the hotel / brand Network-based solutions (rather than silo applications) Standardized IT deployment Professional IT management New service models (e.g. Cloud Computing) Full exploitation of wireless, network & IT infrastructure synergies

5. Continuous increase in IT complexity poses serious operational challenges to hotels Tomorrow Today IT complexity IP-based applications Internet-enabled guest devices More bandwidth More IT integration More network management Your onsite IT resources?

6. A specialized IT partner helps hoteliers respond to their questions and considerations My service costs My brand standards Free-to-Guest expectations Our entertainment Our social networks Our devices How can I make strategic IT investments? What costs is the hotel owner willing to bear? What Opex-based alternatives exist? How do I keep pace with evolving user technology? How can I offer a unique guest experience?

7. Contents 2 The hotelier’s business and ours Hospitality & Technology 7 Consulting – System Integration – Network Operations – Applications Swisscom Service Portfolio 39 Selected client case studies Hotelier Testimonials 44 The only Telecom company dedicated to Hospitality About Swisscom

8. A thorough needs consultation is a precondition for successful technology deployment

9. A dedicated team of consultants follows our hotel partners around the world Swisscom brings years of experience in hotel technology through a specialized team of Network and IT consultants. In room technology: Voice, TV, HSIA, room controls Guest Services custom design and implementation Hotel networks: Wireless, Fibre, Ethernet, DSL, IP over Coax, Copper Hotel IT architecture: Cloud computing, virtualization Systems development & integration IT operations and processes Security and compliance

10. We integrate the hotel’s unique requirements into a tailored project plan We provide a transparent project plan which details deliverables and activities to align IT operations with the hotel’s long-term strategy. Cost analyses Operational requirements Guest experience design IT Resource strategy Legacy assets Service Plan definition Process redesign Prototyping

11. Network design: Our time-proof approach that safeguards hoteliers’ investment Swisscom can deliver networks to support any combination of applications and services. We assist hoteliers in their hardware selection. We are vendor agnostic . We can depart from any existing or desired cabling infrastructure – coax or cat3 cabling, overlay of cat5/6, fibre – to implement a converged hotel network. Custom network design: Our designs are tailored to each particular situation taking into account building limitations, desired solutions, budget, etc.

12. Application vendor selection: Providing a sound basis for the hotel’s decision-making We assist in the vendor selection process We provide testing facilities for equipment We deploy and manage different application vendors We assess implications of technological evolution We minimize risks linked to technology decision We perform TCO (Total Cost of Ownership) calculations Hotelier’s Challenges Our Proposition Hotels need to ensure that their choice of application vendors is: aligned with their guest service requirements based on a complete economic analysis compliant with brand standards flexible to integrate with other technologies future-proof Voice Room controls Entertainment Security PMS …

13. More hotel application complexity calls for a specialized hotel system integrator Hotel in a box Project management Integrated room experience

14. IT complexity increase: From 3 IP room devices to more than a dozen More and more hotel applications as well as guest devices are going IP – creating ever greater technology complexity for the hotel. Window blinds Room lighting TV & entertainment Media tablet Media hub Door lock / room presence Temperature control Fixed phone Mini-bar Digital signage or artwork Mobile phone Safe

15. Hotel in a box is a structured approach to deploying hotel systems reliably and efficiently Hotel in a box reconciles increasing application complexity and customization requirements with standardized deployment methods It provides superior reliability and cost efficiency to our hotel chain partners, as well as replicability for their new hotel projects. Common network architecture standards Standardized system interfaces Standardized delivery processes One central project manager

16. We create cost efficiencies of 10-25% compared to traditional network & solution deployments As professional project managers, we bring all hardware and application vendors under one command and assume overarching responsibility for the full delivery process from requirements to site acceptance. Coordinate contracting & financing Leverage hardware & software synergies Standardized deployment & testing Standardized interface deployment Transition into network management On time On budget

17. Our Network Operations are at the heart of your service delivery Network monitoring Network management Network reporting Network assessment

18. We are the only party that brings enterprise network management to the industry We pro-actively monitor 7/24 and notify the hotel in case of issues. We manage service at the height of client expectations. We report on the network and track our performance against SLAs. We interpret network data to continuously improve them and optimize cost. Monitoring Swisscom NetSmart * Assessment Management Reporting * Our NetSmart suite is powered by IBM Tivoli, a professional service management suite that Swisscom Hospitality has adapted to suit the specific needs of the hospitality market.

19. NetSmart Monitoring provides peace of mind, allowing hoteliers to focus on their core business We proactively monitor all hotel networks: Swisscom elements as well as 3rd party devices Hotels outsourcing their network operations to Swisscom have real-time control over their services.

20. Based on our monitoring capabilities, we are the hotel’s single point of contact (SPOC) for all service issues: Pro-active fault management for all IP devices and applications Management of upgrade and recovery processes Onsite maintenance & repair Management of 3rd party SLAs on behalf of the hotel Our methodology is based on ITIL best practice. NetSmart Management allows working issues to resolution Incident classification by severity Error description Contextualized view of all devices concerned

21. Our specialized Reporting Team delivers regular key performance & process measurements Hoteliers can control Swisscom performance any time Events are correlated to business functions, allowing hoteliers to contextualize and understand them. NetSmart Reporting provides analytics for the hotel’s ICT decisions Service availability Bandwidth utilisation Incidents & causes Incident resolution Vendor compliance Product sales & usage trends

22. NetSmart Assessment offers continuous network improvement and increased efficiency Swisscom NetSmart enables ongoing «health checks» of a hotel network, IT and applications. We assist hoteliers with the interpretation of all data: Identify usage thresholds and needs for capacity upgrades Point out design issues Recognize emerging needs and plan for upgrades. Our hotel partners validate and decide on any measure before execution. Every Swisscom partner location is serviced by an Account Manager who combines IT expertise with first-hand hospitality experience.

23. A set of converged applications that drive guest satisfaction and generate additional revenue Cloud Services

24. Hotel high-speed Internet access (HSIA) and bandwidth needs are constantly on the rise Bandwidth requirements 2011 2013 2009 2005 2007 2003 Swisscom operates HSIA services for more than 2’000 partner hotels. Due to our scale, we source bandwidth at the lowest possible cost for hotels. We offer partner hotels real-time reporting on our service delivery. HD videoconferencing Mobile Television File sharing

25. Our HSIA service supports full hotel branding and can provide a healthy revenue stream Hotel guests frequently arrive with 3 or more devices they want to connect. We maintain and upgrade the hotel’s network to always stay on top of actual user demand. PMS integration We can integrate with 90 PMS systems Customization We can create branded portals for all types of user devices Service innovation We keep developing new features, e.g. wireless printing Legal security We comply with all applicable legal requirements 24/7 guest support In-house Customer Care services guests in 8 languages

26. Our business models let hoteliers choose on pricing and on revenue generation Hotel Swisscom or Hotel Swisscom CAPEX investment Hotelier maintains a revenue stream Hotelier pays a fixed fee per room per month. Hotelier has full pricing control. Revenues are split between the hotelier and the service provider Economics Decreasing Quality of Service (QoS) and guest satisfaction, as HSIA becomes a cost center Hotel chooses free to guest Hotel chooses to charge (2) Fixed fee model Free for ‘standard’ service, charged for ‘premium’ service (3) Hybrid model : Mix of (1) and (2) Light users may be unhappy to be charged for basic web browsing, sending emails etc. Swisscom and hotel agree on charged service (1) Revenue share model Risks Pricing intention Business model

27. Tiered pricing responds to free-to-guest demand while protecting a high-quality user experience Free-to-Guest Increasing guest demand for free service Cost pressure Infrastructure & bandwidth cost, network management HSIA: free or charged? Tiered pricing Caters to different user segments (heavy vs light users) Gives guests a sensible service choice Results in fewer complaints & higher guest satisfaction Maintains revenue stream for the hotel Supports optimized usage of available bandwidth

28. With Swisscom, our hotel partners can fully reap the benefits of interactive IPTV Content customization (Live TV, 200 movies, special interest titles) Fully customized user interface Hotel-specific contents and service bundles Personalized program line-up Real-time guest communication through the TV screen Advanced interactivity services: welcome page, EPG, alarm clock, etc. Swisscom IPTV offers guests a unique interactive experience – more choice, more personalization, more functionality. Integrate with multimedia services

29. ConnectedHotel TV: Internet access, live TV, VoD all in one No set-top box Hotels benefit from lower maintenance cost and energy consumption. Flash-based interface Enables superior speed and interactivity WiFi access point integrated Guests connect to the Internet through the TV screen. One dedicated access point per room! Runs on any cabling infrastructure CHTV utilizes the hotel’s existing network. There is no need for extra cabling. ConnectedHotel TV – jointly developed with LG Electronics – showcases how hoteliers can reduce their Total Cost of Ownership (TCO) through savings in equipment, network convergence and management.

30. The room TV, a central communication window for the guest’s devices Videoconferencing, personal content viewing, real-time content sharing… Service integration enables seamless interactivity between the TV screen and the guests’ personal devices. Today’s guests carry their own content. We enable them to connect their own devices in the most user-friendly way. Our network-based technologies open the door to an integrated multiple screen offering.

31. Preconfigured room profiles Remote activation before guest arrival Energy saving mode after guest departure Extensive customization of guest experience We implement integrated room controls as a managed service via the hotel IP network Heating Room lighting TV & VoD Video calls Window blinds Ventilation & air conditioning Web navigation

32. Business Center Solution, a convenient solution to make the guest feel at home A 24/7 Internet terminal with guest printing facilities, our Business Center solution has been installed over 1’000 times worldwide. Cutting-edge design From classy iMacs to standard Dell hardware, we offer hotels the right setup to fit their lobby Service A familiar, Windows-like environment in 13 languages Data security – after each session all data is wiped out Customization PMS integration Pricing flexibility (e.g. free boarding pass printing)

33. We provide hotels with a choice of automated to fully customized event solutions Self-service solution: Easy access for small meeting groups. Remote service solution: Scalable networks for larger groups. Full-service solution: Consulting Network design Set-up and delivery Onsite support Integration with in-room services e.g. customized messaging / contents. Convention sales create significant business for hotels. Swisscom has been working with major corporate clients at partner locations and beyond.

34. We offer a hospitality-specific VoIP solution for hotel chains, groups and independent hotels Onsite vs. hosted PBX: The hotel decides whether it wants to own the solution & equipment installed. Hosted Voice Services: The hotel property uses capacity from a remotely hosted application server. Complete solution management: Installation, 24/7 monitoring & troubleshooting More and more hotels introduce VoIP system to benefit from lower call costs and reduced TCO. We offer them a fully managed solution with a full stack of hospitality features and a flexible CAPEX / OPEX choice. Hospitality features: Guest voice mail, PMS integration, Call rating, etc.

35. Cloud computing: Key utilities available on demand from a central support platform Voice over IP Property Management & CRM Energy Management Swisscom drives Cloud computing for hotels to be able to source services from an offsite platform at a reduced OPEX A powerful tool for chains aiming to consolidate their market presence!

36. Cloud services, an opportunity for hoteliers to scale and standardize services at lower cost Increased financial flexibility Easier operating procedures Reduction of onsite resources Rapid deployment of new hotel sites Standardization Identical services are available at N individual sites Simplification Key hotel applications are hosted above property – without using any onsite resources Scalability Applications are available following the SaaS (Software as a Service) model. No charges for unused services or capacities.

37. We support hoteliers’ business objectives through a smart Cloud-based solution design We are pioneers in moving PABX, Property Management Systems (PMS) and other central hotel utilities into the cloud. WAN architecture We build secure, redundant Wide Area Network (WAN) architectures to ensure highest service availability. Solution design We design integrated IT platforms with Cloud-based components. Deployment We implement individual systems in response to the hotel’s concrete needs.

38. Swisscom cloud services support the geographic expansion of citizenM hotel chain* Central reservations PMS, CRM Telephone standard (PBX) citizenM Glasgow citizenM Amsterdam citizenM New York Video: A hosted PBX for citizenM * citizenM’s ambition is to open 20 hotels through Cloud services till 2016.

39. Contents 2 The hotelier’s business and ours Hospitality & Technology 7 Consulting – System Integration – Network Operations – Applications Swisscom Service Portfolio 39 Selected client case studies Hotelier Testimonials 44 The only Telecom company dedicated to Hospitality About Swisscom

40. « I want good IT advice and reliable guest services » Luigi Leardini, Owner Crowne Plaza Verona Fiera Competent advice on all technology investment decisions No more than one technology partner for my entire property Best-of-breed user technology that works. My needs Consulting A dedicated account manager and IT consultant for all technology concerns Network Operations Inclusive bandwidth management for all hotel areas Applications ConnectedHotel TV, wired and wireless HSIA, Business Center solution, all with customized user interfaces. Swisscom delivered

41. « Take care of my IT and deliver a distinctive citizenM guest experience » Michael Levie, COO citizenM hotels All my network and application needs outsourced (no onsite IT staff) Flexibility to add new applications or change app providers at short notice Uniquely branded guest experience. Consulting A remotely hosted & managed solution for PMS/CRM and PBX System Integration IPTV, HSIA, room controls, door locks, CCTV in one converged infrastructure Applications Integrated user front-end for all guest services. My needs Swisscom delivered

42. « I need a project and a network manager » Nick Price, ex-CIO/CTO Mandarin Oriental Hotel Group System Integration On-time delivery of a project involving some 30 vendors Network Operations 365/24/7 network monitoring with agreed service levels (15 min reaction time for minor faults) Consulting Standardized reporting and analyses for all applications. A “no-fail” system implementation that creates perfect service High customization of services and settings A move towards industrialized processes for delivering IT operations at enterprise-class level. My needs Swisscom delivered

43. « I want the best user experience and full network transparency at all times » Jerome Olliveaud, CTO Lucien Barrière Hotel Group System Integration Property-wide Wi-Fi coverage with multi-antenna access points ( 802.11n standard) Network Operations Real-time access to Swisscom NetSmart network monitoring; 365/24/7 network management; Personalized network reporting Applications PMS integration; Hotel customized portals; Unlimited number of devices & unlimited data per access code An impeccable Wi-Fi experience for my guests on all their devices Superior network availability and stability at all times Pro-active identification and resolution of potential issues Access to all network data in real-time, independently of Swisscom My needs Swisscom delivered

44. Contents 2 The hotelier’s business and ours Hospitality & Technology 7 Consulting – System Integration – Network Operations – Applications Swisscom Service Portfolio 39 Selected client case studies Hotelier Testimonials 44 The only Telecom company dedicated to Hospitality About Swisscom

45. The Swisscom Group in brief Historical Swiss telecommunications operator and leader in the transition to TIME (combined Telephony, Internet, Media, Entertainment offering) Leading mobile carrier with ca. 60% market share in Switzerland Nr. 2 telecom player in Italy through Fastweb (100% Swisscom owned) Profitable & stable – a blue chip on the Zurich stock exchange Innovation driven: 120 engineers developing & testing innovative needs-based solutions every day Swiss values. Top service quality recognized worldwide Swisscom Hospitality Services is a fully owned multinational subsidiary of Swisscom AG.

46. Swisscom AG – key figures as of 31/12/2010 The Swiss Confederation as the majority shareholder of Swisscom AG. Net revenue CHF 11.988 million EBITDA CHF 4.597 million Net income CHF 1.786 million Employees (worldwide) 19.547

47. Swisscom Hospitality in a snapshot 250+ employees worldwide fully dedicated to Hospitality Operations across Europe, Africa and the Middle East as well as North America Presence in China & Asia-Pacific through local partners Over 2.000 hotels – about 230.000 guest rooms Global key account team works with partner chains towards the implementation of their global brand standards

48. Our dedicated resources to better serve you Geneva, Copenhagen, Pau, Washington DC: Hotel Engineering & System Development Designs customized hotel networks & services Lisbon and Washington DC 24/7 Network Operations Center Monitors and manages hotel networks Staffed with hotel experienced IP network engineers Dedicated care teams for hotel staff and for guests Local support Account Managers , field engineers and Network & IT consultants in 40+ countries.

49. What makes us unique? Global reach We are the only global supplier of IT managed services for hotels. Technology foresight Building on our experience, our market exposure and our R&D resources. Best user experience We continuously improve and expand our service offering. Telco + Hospitality We combine the strength and the longevity of a Telecom carrier with the focus of a Hospitality specialist.

50. We have 10 years of continuous innovation for the hospitality industry and more to come Dec. 2002 2004 2005 2006 2007 2008 2009 2010 ConnectedHotel TV wins the TopHotel Star Award Company inception Conference services for hotels Business Center Solution Differentiated bandwidth offering Web 2.0 value-added services Swisscom IPTV Optimized WiFi Smartphone Deployment of Cloud-based solution for citizenM 2003 2011 Full WiFi coverage

51. Our technology partners support us in our mission to bring innovation and greater technological homogeneity to the industry Partner for improved service management, business automation and network management in the hotel space Network equipment: Software: TV hardware:

52. Where to find us Global HQ: Hospitality Services Plus Geneva, Switzerland +41 22 740 75 01 North America: Hospitality Services N.A. Dulles, VA 20166 (571) 323 6600 www.swisscom.com/hospitality Subsidiaries in: Austria Belgium Denmark Dubai France Germany Great Britain Italy Portugal Romania Russia Spain Turkey

53. Following our partner chains to Asia: Swisscom’s partnership with Planet One Planet One has 22 offices in China alone, 19 more in AsiaPac Partnership enables a seamless Swisscom delivery Planet One has vast experience of delivering high quality managed services to major international hotel chains.