George Filley

VP and General Manager

Internet/Wireless Group
May 2008

Mobile Information Revolution

In December 2007, Nielsen mobile reported over 20 million unique users of mobile mapping, local search, and social networking applications.
Locally Relevant

Dynamic

LOCATION

Community Generated

Deeper and Richer

Consumer Reception To LBS

Application Categories - Share of Downloads / Revenue

Storefront/Shopping

Entertainment

Maps/Directions

No GPS

Wallpaper/Pictures

Weather

Location Based Services App is the most popular download category in Q1 2008 with 43% of all downloads to mobile phones and 62% of total revenue The LBS application share has been growing. Q1 2007 LBS accounted for 21% of downloads and 31% of revenue.

Sports

Music

Personal Organizer/Tools

Chat/Community

Location Based Services

GPS

Share of Downloads: The total number of Applications downloaded for each Title, Category or Type expressed as a percentage of All Applications Downloaded during the reporting period. Share of Revenue: The total revenue from application download for each Title, Category, Type or Carrier expressed as a percentage to all revenue from all Application downloads.
0% 10% 20% 30% 40% 50% 60% 70%

US Mobile Subscriber universe includes post-paid, non-corporate liable subscriber from the top 4wireless providers (Cingular, Sprint Nextel, T-Mobile, Verizon)

Share of Downloads

Revenue Share

Source: Nielsen Mobile Applications Report Q1 2008

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Evolution of Mobile LBS From A User Perspective

Hardware Value High

Services
Turn by turn navigation

Pricing
Premium prices

Availability
Limited to decks of 2 Carriers

-2 years

Now

Turn by turn navigation Local search with location Basic map viewer LBS

Falling prices for navigation Selected subsidized services

5 Top Carriers on deck Off-deck emerging

Near Future

Content Value High

Turn by turn navigation Local search with location Vertically Enabled LBS

Pay to use Subsidized services

Ubiquitous

The Scope Of LBS Services

Mobile Resource Management
Asset/ Salesforce Tracking
Show Location on Map and Track Movement in Real Time

Entertainment

Information Services
Navigation
Turn by Turn Driving/ walking Instructions

Personal Security
Track My Movement
Show Location on Map and Track Movement in Real Time

Find A Friend
Locate Another Person Within a PreDefined Geographic Area (opt-in)

Fleet Management

Location Based Games

Traffic/Weather Alerts
Traffic/weather reports delivered on demand or automatically

Locate My Child
Show Location of My Child (no opt out)

Social Networking

POI Look-up
Points of interest located based on location

Emergency/ Roadside Assistance

Emergency/ Roadside assistance dispatched based on location of wireless voice call

Enterprise

Text Messaging Location Based Advertising Location Based Commerce

Location is key for application to function Location is an enhancement to the application

End User Expectations for Mobile LBS

I want to be able to access it from anywhere I want the information to be delivered to me in real time I want to be able to share the information with my friends at my discretion I dont really want to pay

Consumer experiences/education with content on the Internet has trained them that they dont have to pay full boat for content /services

The Hybrid Business ModelMaybe

Tracking (Enterprise) Willing To Pay

User Willingness To Pay

Games Navigation Willing To Pay If Convinced of Value

Tracking (Consumer)

Subsidization Breakpoint

Search Directory Expect Service To Be Free

Social Networking

Difficult

Very Difficult

Extremely Difficult

Complexity
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Consumer Receptivity to Location Ads

NAVTEQ research shows: Consumers are overwhelmingly willing to accept ads in exchange for valued content and applications Ads are not typically recognized as advertising when embedded within the results page Arbitron research finds that the drive home is a key venue for impulse purchase decisions and ideal venue for delivery of advertising

Source: Arbitron National In-Car Study 2003; and NAVTEQ and IPSOS Understanding UnLtd. 2007
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Emergence of Mobile Subsidization Trend

Connectivity costs are dropping Device capabilities are increasing Processing and displays enable rich (higher value) advertising Audio, touch screens and voice interactivity will eliminate the need for banner ads WAP advertising growing rapidly and 5:1 more valuable per impression than online Mobile advertising on WAP and some on games Strong advertiser demand for new and innovative advertising forms

Innovation Around Location

Junction Views 3D City Models Traffic

Better Here to There Horizontal (Point to Point)

Weather Speed Zones

horizontal enabler = more usage of current service

Mass Transit Lines Pedestrian Paths

Neighborhood Boundaries

Vertical (Context)
Fuel Prices Parking Availability Travel Guides

I Am Here, What is Where?

Events

vertical enabler = new usage of new service

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NAVTEQ Role In Supporting Developers

2008: Launched LBS Challenge for Developers in Asia

2003: Launched LBS Challenge for Developers in North America

2006: Created NAVTEQ Network for Developers Ecosystem

2003

2004

2005

2006

2007

2008

2006: Launched LBS Challenge for Developers in Europe

2007: Executed !st Connections Conference For Developers in North America and Europe

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NN4D: Best In Class Technical Support

Free sample data including beta versions on new content

Developer guides, webinars, whitepapers, proprietary research

Forums, newsletters, blogs

One-on-one technical assistance available

http://www.navteq.com/developer
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The End Game

Its all about location and business model flexibility.

NAVTEQ will continue to innovate around new content to enable developers in the creation of unique / differentiated solutions. Stay tuned for expanded support capabilities in 2008.

www.navteq.com/developer

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