P2 Wireless

Intelligent Connectivity
Investor Presentation
November 2018

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 P2 Wireless
• Founded and headquartered in Hong Kong Science
and Technology Park
• R&D and regional office in San Francisco bay area
and regional office in Guangzhou, China
• Intelligent networking solutions and services for
SmartCity implementations, with immediate focus on
SafeCity applications
• Secure network infrastructure scalable to 19,200
nodes and 300 data gateways
• Unique technology, product market fit confirmed, and
solution proven (deployed in 15 countries) by Tier-1
global channel partners

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 Leadership Team
• Winfred Fan, CEO
‐ CFO, Kookai
‐ Management consultant, GMK Partners
‐ CPA and Chartered Accountant
• Bo Larsson, Executive Chairman and COO
‐ VP/GM Computer Products Group, Sony
‐ Sr. VP/GM, Ericsson
‐ Corporate VP/GM North America, Sony Ericsson
‐ CEO, Firetide – pioneer in public safety wireless
• Henry Choo, Director
‐ Director of Investments, Sanston Securities
‐ COO and Head of Investments, Atlantic Quantum (wholly-owned
VC by Khazanah)
• Mohan Natarajan, CTO
‐ VP of Infrastructure Engineering, Salesforce
‐ VP of Engineering, Brocade
‐ Sr. Director of Engineering, CISCO
‐ CTO, Firetide – Inventor of key Wireless MESH patents

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Market Opportunity 2020 – SmartCity

$342B

10% to equipment for

network connectivity →
$34B opportunity in 2020

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Market Opportunity -- SafeCity Networking

• 500 Urban areas in the world with population over

one million, $12.5B market opportunity

• 4,000 cities with population below one million,

$12.5B market opportunity

• Smart Poles – Connecting it all 315 million

streetlights in the world $475B market opportunity

• Total Market Opportunity for P2 is $500B

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 SafeCity Case Study - San Francisco
• Metro Transport Authority /Police Departments
‐ Vehicles (1,500 Buses) → 2,000 Units
‐ Trams (500 cars) → 500 Units
‐ Subway – (33 Main Locations) → 1,000 units
‐ Neighborhood watch (50 locations) → 1,000 units
‐ Public areas (50 locations) → 1,000 units

• Traffic and Municipal Services

‐ Traffic Management (50 locations) → 3,000 units

• Smart Poles
‐ Street Lights (50K ) → 50,000 units

Potential demand is approximately 60,000 units for

a total value of $100M

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 Market Requirements
• Seamless Integration of video cameras, sensors, WiFi access
points, etc., including mobility
• Manage the entire network with one network management solution

• Ability to start small and organically grow network to a complete

SmartCity implementation
• Highest level of security
• Reliable connectivity anywhere

• Integration with existing infrastructure and extend and scale

existing cabled locations
• Low cost, little disruption, quick implementation

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 P2 Wireless Product and Solutions
• Ethernet Switch architecture – Full Ethernet standard
compliance and complete mobility

• Start with one physical location and seamlessly grow

network to thousands of locations.

• Highest security with encapsulation technology

Distributed Ethernet switch, 19,200
• Mesh topology, QoS, load balancing, low latency key ports and 300 back office connections
to achieve reliable connectivity anywhere

• Intelligent network capability to leverage existing fixed

infrastructure

• Wireless to extend reach and provide redundancy

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 P2 vs. Others – We can do it all
P2 MESH Technology offers more flexibility when it comes to Topology design when
compared to other non-MESH wireless technology providers that offer ONLY “Point-to-
Point” and “Point-to-Multi-Point” solutions. P2 offers all 5 Wireless Topologies for Maximum
SmartCity Scalability.

Evolution of wireless network connectivity

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 Competition
Requirements
SafeCity → SmartCity
PtP/PtMP mobile and network infrastructure $30B
wireless infrastructure → $500B
connectivity - $20B 2022

Low cost PtP/PtMP ISP wireless

infrastructure - $10B 2020

Scalability
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 Business Model
• Sales channels

‐ Distributors

‐ System integrator

‐ Strategic end customers

• Solution partnerships
‐ Quicker channel acquisition, shorter sales cycle, leverage existing footprint and
pipeline

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 Financials
• 2019 – $13.6M revenue 250
‐ 72% gross margin
‐ $1M EBITDA
200
• 2020 – $27.3M revenue
‐ 74% gross margin
‐ $2.4M EBITDA
150
• 2021 - $56.0M revenue Revenue, $M
‐ 72% gross margin GM, $M
‐ $8.3M EBITDA 100 EBITDA, $M

• 2022 - $110.2M revenue

‐ 72% gross margin
50
‐ $24.4M EBITDA
• 2023 - $237.5M revenue
‐ 73% gross margin 0
‐ $77M EBITDA 2019 2020 2021 2022 2023

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 Milestones and Assumptions
• 2019 – Target SafeCity
‐ Sales – 62% APAC, 23% EMEA, 15% Americas
‐ Sales – 94% H/W, 2% S/W, 4% services
‐ Recruit 183 new productive channel partners
‐ Fully implement mesh technology capabilities
‐ Launch mobility solution
• 2020 – Drive SafeCity business and expand to relevant SmartCity opportunities
‐ Sales – 58% APAC, 26% EMEA, 16% Americas
‐ Sales – 86% H/W, 8% S/W, 6% services
‐ Recruit 362 new productive channel partners
• 2021 – Solutions are in place, invest in growth
‐ Sales – 43% APAC, 36% EMEA, 21% Americas
‐ Sales – 79% H/W, 13% S/W, 8% services
‐ Recruit 757 new productive channel partners

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 Financing Opportunity
• First quarter 2019
‐ $25M financing
‐ $5M to acquire technology leadership
‐ $5M in sales and marketing engineering
‐ $5M in working capital
‐ $10M in buffer

‐ $100M pre-money valuation

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 Summary
• Proven product market fit
‐ Installations in 15 countries

• Product roadmap well defined

‐ Technology is in place

• Go-to-market strategy verified and in place

‐ Solution partnerships in place
‐ Channel partners in 15 countries in place

• US and China regional offices are in place

‐ Silicon Valley and Guangzhou

• Raising $25M to secure implementation of product roadmap map, local market

penetration, secure timely geographical expansion, and add key management
resources

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 Thank You
Winfred Fan
winfredfan@p2wireless.com
+852 6588-3705

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Case Studies
 Taiwan: Smart Lamp Pole System
Application: Chunghwa Telecom together with the Taiwan government is deploying Smart
Lamp Poles with IP cameras, Smart lighting system, sensors and digital signage in a 1.02
square km area as the connectivity backbone for their Smart City pilot and a precursor to a
nationwide rollout.

Challenge:
• High throughput is required for live traffic monitoring and digital signage real-time
push announcements
• Street lamps need to be everywhere and cabling and trenching is not an
economically viable option
Solution:
• P2’s wireless mesh solution
• Total of 620 units of X20 with 54 units deployed for the stage 1 of the project
• Mesh network provides connectivity to street lamps without 4G network coverage
Result:
• Impressive throughput and stable performance
• High flexibility for future expansion
• Resilient with redundancy and self-healing

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Hong Kong: Express Rail Link West Kowloon Station Wireless Network
Application: Wireless MESH Network for Express Rail Link West
Kowloon Station public information display

Challenge:
• Cabling is not an option in the railway station
• Unable to find a wireless solution that provides a reliable high
bandwidth and low latency network with multicasting.
• Traditional Wi-Fi and 3G/4G is not an option for a highly
congested traffic terminals
Solution:
• P2’s wireless mesh & multi-casting solution.
Result:
• Wireless MESH network provides multicasting across 3 levels
of the station concourse and the railway platforms
• High flexibility in future expansion location
• Zero cabling effort

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 Australia: SmartCity wireless infrastructure
upgrade for a SafeCity surveillance system
Application:
• Maribyrnong City Council in the metropolitan Melbourne area
has been looking for a solution to upgrade their aging
wireless networks that connects their surveillance cameras.

The Challenge
• More advanced camera required high capacity & low latency
network.
• The common wireless technology that utilizes point-to-point
and point-to-multipoint technology can’t meet the all the
requirements

The Solution
• Two mesh rings of 25 wireless nodes covering the whole
area, supporting 80 high-definition cameras
• Scalable system that can be easily expanded in the future
• Wireless link redundancy and auto-recovery features are
incorporated for highly resilient network structure

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 Hong Kong: MTR, Tsing Lai Bridge
Application: Critical Infrastructure wireless video surveillance preventing vessel accidents and to
monitor bearings along Tsing Lai Bridge in Hong Kong, a major bridge that connects the airport and
the mainland.

Challenge:
• High throughput supporting 25 IP cameras or 800 Mbps data rate
• High interference in the area
• Hardware redundancy and fast auto-recovery
Solution:
• P2’s wireless mesh solution with 2 x 4-hop rings.
• Each site contains 2 units of X20 connected by a data switch for hardware redundancy
• 16 units of X20 are used for the project
• IP cameras are connected to the data switches
Result:
• Impressive throughput and stable performance
• X20 operate smoothly at 20/40 MHz channel supporting 400/800 Mbps data rates
• Very low latency of <10 ms and no packet loss
• Fast failover recovery time.

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 Philippines: Smart City Project for Emerging Markets
Application: Smart City wireless mesh for video surveillance, access
control, flood monitoring, environmental protection, paging system, and
traffic lights control in Cabanatuan City in the Philippines.

Challenge:
• High level of interference at platform area
• Difficult to expand existing surveillance network by laying cable
Solution:
• P2’s wireless mesh solution connecting 300 surveillance cameras,
8 flood monitoring equipment, 20 traffic lights, and 20 paging
system.
Result:
• Replaced entire legacy analog surveillance network
• Robust and resilient network for the critical infrastructure
• No cabling required

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 Saudi Arabia: Wireless Surveillance Infrastructure
Application: Smart Virtual Fiber and Surveillance Solution for Critical Infrastructure in Mecca,
Kingdom Of Saudi Arabia

Product: X20 MeshRanger

Challenge:

• High throughput requirements – up to 28 outdoor locations with more than two IP cameras at each
location. Up to 800 Mbps of throughput required

• High interference environment with more than one microwave system in place

• The entire system requires full hardware redundancy with fast auto-recovery time for critical infrastructure–
less than 10 seconds

Solution:

• Four rings wireless meshes with multiple hops each ring with two single radio offload points for each ring
at the data center for full hardware redundancy and no Single Point of failure

• Each location is installed with various IP cameras like PTZ and Fixed cameras from different vendors.

• All Cameras and Mesh Rangers are powered using Solar Energy.

Result:

• X20 delivers an impressive throughput and stability performance, despite the challenging environment.
The rings support 400 Mbps at 20 MHz channel bandwidth. 800 Mbps data rate is attained when using 40
MHz channel. Negligible latency and packet loss. Fast failover recovery time below 10 seconds.

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Backup Slides
 How we enable our ecosystem partners
Our Partners support our Networking solution as it enables them to sell more of their own products and solutions.

Case Study – from 30 to 300 IP Surveillance Cameras

Opportunity
A residential estate with more than 5,000 houses covering an area of more than 1 million square meters requires
the installation over 300 IP surveillance cameras to improve its security.

Challenges
Due to difficulty in obtaining consent from residents and building owners, and the high costs associated with laying
cables, the project managers were only able to install 30 cameras near the main entry points and commercial
areas using physical fiber within the reasonable time and budget allocated.

P2 to the rescue!
The camera vendor referred us to the project managers and using P2, they designed a MESH networking solution
that would enable the installation of over 300 cameras in all key areas around the estate without costly civil works
and within the timeframe and budget of the 30 camera proposal.

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P2 MESH is 10X cheaper than Fiber to Deploy
Year 2010 2014 2018
USD USD USD

Average Cost of HD Camera (outdoor) 1072 615 120

Cost of Deployment using only Fiber (Average is 300m) 31500 38089 46692

Cost of Deployment using P2 MESH per link (2 devices) 3500

Assumptions

Deployment Costs of a Camera

Civil Works for Fiber per Meter 100 121 147
Labor and Installation Costs per Camera 1500 1789 2592
Cost per P2 Device plus Components 750
Labor and Installation Cost per Camera 1000
Notes:
(1) Project Estimate Costs in Hong Kong - for 2018
(2) Based on 1 x P2 device at USD750 for every 1.5 camera
(3) All Figures in USD
(4) HD Camera’s shipped in 2010 to 2017 went from 200K Units to 29M Units

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Industry Leading Wireless MESH Technologies
Secure
AES 256 bit end-to-end encryption for data traffic
Security Certificate for the management traffic encryption
Encapsulation of all packets makes packet sniffing impossible

Flexible and easy to install

Auto-forming with intelligent channel allocation
Automatic bandwidth metric load balancing

Resilient
Support gateway redundancy and multiple gateway load balancing
Multi-paths redundancy → high availability

Robust
Self-healing - Automatic link re-establishment as the radio physical
environment changes
Adaptive traffic path switching - Fast failover to provide seamless non interrupted
data traffic

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 Intelligent Connectivity Link
The wireless link that established the
communication between two nodes, with the ability
Node Link
to protect the data with AES 128 bit encryption.
A P2 device that will discover and auto-
Node
connect to the other nodes that share Cluster
the same Cluster ID and form a cluster to Cluster
provide a Layer 2 network environment Collection of Nodes (max. 64 nodes) connecting and
Configurator collaborating to each other and sharing the
switching information to get the best path for the
user traffic.
Configurator
Network Management Software that
configures, monitors and manages a
P2 Mesh and Mesh Cluster.

Bonded Link

Management Gateway
Bonded Link
Two nodes formed two links with two different pair of radios
Management Gateway and provide a double radio capacity in between.
The node that acting as the representative of the cluster to
communicate with the configurator / controller, assisting
the collection of data and delivering management message
to the other nodes.

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