- The hidden opportunity in the new connected world

                                              Points of difference

                                                    Market strength - Consumer


                                                    Market strength – Corporate


                                                    Service provisioning capability

                                               Leading OBs




                                               2015 Revenue target Cloud
                                               +Security*

                                                            €Bn 0.5-0.7
                                               *According to guidance criteria
MR. VIVEK DEV
                                1
The hidden opportunity for Telefónica


       Global Trends                                           Customer’s view

 • Professionalization &
   globalization of threats
                                                        • A „must have‟ – top of mind
 • Growing complexity –
                                     The hidden         • Willingness to pay
   “perimeters” disappearing
                                   opportunity in the   • Telcos are trusted security
 • Consumerization and           new connected world      providers …
   mobilization
                                                        •   … Best positioned to deliver
 • Social networking threats,
   child safety/ privacy risks




                                         2
Making Security simple for our customers

                   Consumers & SMBs           Enterprises & Public Sector

                 Digital                   Consulting and
Information       confidence and             management of
Security (IS)     child safety               security needs


                                            Protection of
Electronic       Protection of what
                                             business assets and
Security (ES)     matters most
                                             end user safety



Mobile                                      Secure mobile
                 Secured mobile
Security (MS)                                device
                  experience
                                             management


                                       3
Sustained growth capturing new categories
                                       Sustain or gain
Telefónica Digital                                             Capture untapped
                            243       share in growing     +
Revenues (€ M)                                                   opportunities
                                         categories
Information Security (IS)                                        Social/ Child
Consumers and SMBs          79
                                                                 protection over our
                                                                 broadband base

IS Enterprise               60
                                             Ride growth
Electronic Security (ES)                                         New telco-based
                             2               trend in
Consumers and SMBs                                               digital opportunities
                                             LATAM of
ES Enterprise               102              +20% yoy

                                 <1
                                                                 High smartphone/
Mobile Security                                                  tablet base growth
                            2011


                                         4
Trusted service provider in the Information Security space

                                                           Managed security services
Available in:
                                                           3 Global Security Operation Centres (SOCs)
                                                           Network & Cloud based services
                                                           Market leader in Spain and Peru
Embracing online security
                                                                EUROPE                    LATAM


                               Digital experience
                               protection
        Device       Network
                               Personal back-up
                               & management
                 Cloud
                               Child safety


Mass Information Security                               IS Enterprise



                                                    5
Compelling propositions in the Electronic Security space

                                              Critical infrastructures
Available in:
                                              City/civilian security, fleets, …
                                              Signal jamming
                                              Emergency services (e.g. 911/112)


                                                   EUROPE                    LATAM


                                ~
                           €30/month
Next in:                     camera
                            included



Mass Electronic Security                   ES Enterprise



                                       6
Significant growth potential in the mobile
security category
Available in:                                     Just launched in:
                                                                      >10k users
                                                                                Device theft
                                                                                  or loss
                                   675,000                          Selective
                                                                                               Compliance
                                                                                                & Network
                                                                      wipe
                                                                                                 Security


                                                                                                        Network
                                                        Content
                                                                                                        Access
                           users                        filtering
                                                                                                        Control
                20,500

                                                               App control &                   Data leak
                June-11               Today                     Antimalware                    prevention
                                                                                 Certificate
                                                                                Management
Next in:                                          Next in:                                             ~
                                                                                                   €4/month


Consumer Mobile Security                          Secure Mobile Device Management



                                              7
In summary…

 Security is a high growth opportunity for us
 We are already leading established categories which will keep on
   growing significantly

 We are very well positioned to capture the new opportunities the
   digital world is creating




                                   8
Get in touch
Explore our Hub: http://www.telefonica.com/digitalhub
Track us on Twitter: http://www.twitter.com/tefdigital
Watch our latest videos: http://www.youtube.com/telefonicadigital
Look us up on LinkedIn: http://www.linkedin.com/company/telef-nica-digital




                                                 9

The global cyber security market

  • 1.
    - The hiddenopportunity in the new connected world Points of difference  Market strength - Consumer  Market strength – Corporate  Service provisioning capability Leading OBs 2015 Revenue target Cloud +Security* €Bn 0.5-0.7 *According to guidance criteria MR. VIVEK DEV 1
  • 2.
    The hidden opportunityfor Telefónica Global Trends Customer’s view • Professionalization & globalization of threats • A „must have‟ – top of mind • Growing complexity – The hidden • Willingness to pay “perimeters” disappearing opportunity in the • Telcos are trusted security • Consumerization and new connected world providers … mobilization • … Best positioned to deliver • Social networking threats, child safety/ privacy risks 2
  • 3.
    Making Security simplefor our customers Consumers & SMBs Enterprises & Public Sector  Digital  Consulting and Information confidence and management of Security (IS) child safety security needs  Protection of Electronic  Protection of what business assets and Security (ES) matters most end user safety Mobile  Secure mobile  Secured mobile Security (MS) device experience management 3
  • 4.
    Sustained growth capturingnew categories Sustain or gain Telefónica Digital Capture untapped 243 share in growing + Revenues (€ M) opportunities categories Information Security (IS) Social/ Child Consumers and SMBs 79 protection over our broadband base IS Enterprise 60 Ride growth Electronic Security (ES) New telco-based 2 trend in Consumers and SMBs digital opportunities LATAM of ES Enterprise 102 +20% yoy <1 High smartphone/ Mobile Security tablet base growth 2011 4
  • 5.
    Trusted service providerin the Information Security space  Managed security services Available in:  3 Global Security Operation Centres (SOCs)  Network & Cloud based services  Market leader in Spain and Peru Embracing online security EUROPE LATAM Digital experience protection Device Network Personal back-up & management Cloud Child safety Mass Information Security IS Enterprise 5
  • 6.
    Compelling propositions inthe Electronic Security space  Critical infrastructures Available in:  City/civilian security, fleets, …  Signal jamming  Emergency services (e.g. 911/112) EUROPE LATAM ~ €30/month Next in: camera included Mass Electronic Security ES Enterprise 6
  • 7.
    Significant growth potentialin the mobile security category Available in: Just launched in: >10k users Device theft or loss 675,000 Selective Compliance & Network wipe Security Network Content Access users filtering Control 20,500 App control & Data leak June-11 Today Antimalware prevention Certificate Management Next in: Next in: ~ €4/month Consumer Mobile Security Secure Mobile Device Management 7
  • 8.
    In summary…  Securityis a high growth opportunity for us  We are already leading established categories which will keep on growing significantly  We are very well positioned to capture the new opportunities the digital world is creating 8
  • 9.
    Get in touch Exploreour Hub: http://www.telefonica.com/digitalhub Track us on Twitter: http://www.twitter.com/tefdigital Watch our latest videos: http://www.youtube.com/telefonicadigital Look us up on LinkedIn: http://www.linkedin.com/company/telef-nica-digital 9