AT&T Digital Life A better way to manage life at home from almost anywhere

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1 AT&T Digital Life A better way to manage life at home from almost anywhere Michael Doyle AT&T Product Manager June 1, 2015

2 Digital Life Market Entry Strategy Enter the market with an all IP solution that enables us to: Transform the cost of connecting the customer to smart things & places Break from boundaries with a new set of wireless centric services Create synergy with AT&T core strengths and adjacencies

3 The Challenge Find a growth opportunity that allowed us to: Use our strengths and assets Maximize advancements in technology Respond to consumers ever increasing willingness to use technology in their everyday lives 3

4 Vision The Initial Focus Home Security & Automation 4

5 The Solution It started with building the foundation Bring Buy Build AT&T Assets Brand Customer base Network Distribution Managed IP-based platform Powerfully Simple User-Interface All IP-based Monitoring Center Integrated Controller 5

6 The Promise We are mobilizing how people take care of life at home with a solution that is Seamlessly Connected Protected & In-control Personalized & Flexible Simple & Intuitive 6

7 Ability to grow Growth & Expansion Mobilizing how I take care of life at home Seamlessly Connected Protected & In-control Personalized & Flexible Simple & Intuitive Bring Buy Build 7

8 Innovating a Personalized Experience Digital Life provides customization for life at home or away. 8

9 AT&T Digital Life is a professionally monitored home security and home automation service that provides remote access and management capabilities, enabling homeowners to stay connected to what matters most regardless of where life takes them AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.

10 Digital Life Platform Our open IP-based platform enables a broad range of solutions all easily managed through any web-enabled device 3G Wireless Network BB Wireline Network Broadband Home Router Digital Life Controller 10

11 Premise Platform 24/7 Monitoring 24-Hour Battery Backup Smart Phone Accessible Digital Life Controller Security Automation 433 MHz proprietary 915 MHz proprietary WiFi Z-Wave 3G Keypad Indoor Siren Keychain Remote Contact Sensors Motion Sensor Smoke Sensor Conversion Kit Glass Break Sensor Carbon Monoxide Sensor Indoor Camera Outdoor Camera Indoor Multi-view Camera Garage Door Sensor Door Lock Pushbutton Door Lock Touchscreen Light Control Thermostat Indoor Smart Plug Outdoor Smart Plug Temp & Water Sensor Water Shutoff AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.

12 Method of Control 65% of Consumers Want to Control the Smart Home Through Portable Devices Consumer preference for Smart Home control 71% of users would prefer to use a single application for control In-car Response Share Control Panel Web Portal I would only choose a system controlled by a single app 37% Television I would prefer a system controlled by a single app 34% Tablet Smartphone I m happy with either 26% I prefer having separate apps 3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Source: HCTCA, 2/14

13 Seamlessly Connected Digital Life provides a seamless connection to home from most smartphones, tablets or PC s. 13

14 Protected & In-control 24-7 professionally monitored security helps provide peace of mind. Automation solutions helps make caring for family and home easier than ever. 14

15 Personalized & Flexible Customization can allow the service to run on an individual schedule and tailor to that person Rules can be set based on daily routines, like turning the porch light on at dusk, or locking the doors at bedtime. The service can be self-programed to send alerts when something happens at home. 15

16 Simple & Intuitive The intuitive Digital Life application enables customers to effortlessly manage their homes with a simple touch. 16

17 Extend with Wireless Centric Services Remotely manage from virtually anywhere Uniform Interface Experience Personalized & Custom layouts Remote Status & Controls Video and Images

18 Digital Life Packages Home security, plus a range of automation add-ons Simple Security, plus Smoke Sensor Glass Break Sensor Carbon Monoxide Sensor Motion Sensor Automation capabilities View live video from inside and outside your home Lock and unlock deadbolts or check to see if your garage door is open Control small appliances, lighting, and thermostat for convenience and energy efficiency Detect water leaks before damage occurs Shut off water at the main if a leak is detected AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.

19 Distribution Channels Digital Life s transparent sales model allows customers to experience the product at their own pace in-store or online AT&T Retail Stores Authorized Retail Locations Learn & Experience: Online (att.com) AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.

20 Growth & Expansion Available in 82 Markets

21 Connected Home: Digital Life..caring for others 1 in 3 of U.S. adults will provide care to an aging adult by 2020 Digital Life can help you to stay remotely connected with your loved ones, receiving alerts and notifications about activities in their home throughout the day. Set up programs: Using a sensor on the medicine cabinet you can set up a program to notify you: Each morning when they open the cabinet where the medicine is kept Receive a text message if the medicine cabinet has not been opened by a certain time AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement. Source: Digital Life Health Care Primary Research 2011; AARP 2011; MetLife Report on Aging in Place 2.0, 2010

22 Benefits Know if the care recipient is OK by using cameras to check-in Reduces caregiving burden to help care recipient remain in home Wireless sensors and devices detect activity Intuitive user interface Alerts and notifications are easy to set up Professional monitoring agents provide supplemental 24/7 alert monitoring Discrete wireless sensors Alerts if activities vary beyond thresholds Receive alerts on smartphones/tablet Monitoring agent can receive select alerts and dispatch responders Smart door locks, lighting controls, and home security are available 22

23 The market is moving towards remote solutions Security Alarm updates sent via text Remotely lock doors/windows Remotely view network camera feed Health Behaviour based alerts for elderly care Monitoring longer-care health data Energy Monitoring Remotely monitoring energy at an appliance level Remote residential load control Appliances Remote scheduling of content Enabling/Activating devices prior to entering home

24 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement.

25 Real Life Meets Digital Life 25