™ eVerge Sales Review EVX Digital Series Introduction Current Market Opportunity Digital Voice Only? Benefits to our Users EVX Overview Packing and Price Positioning Recap Q&A Current Market Current Commercial/ Mid Tier annual Analog Sales Current Commercial/ Mid Tier install base There are 0% digital radios represented in these numbers Why Aren’t They Buying Digital Adversity to Change Analog radios will always be around I’ve always used XYZ radio and I will keep purchasing that brand Not Within Reach Previously proposed systems outside of their budget Great radio and features but cannot justify cost difference Don’t Need Digital Analog gets the job done I like the quality and benefits but they are not necessary Migration Path Unknown/ Misunderstood I can’t just replace all of my radios and make the change to digital Digital and analog will not work together Opportunity Need Users are asking for a digital solution Out of reach for our Commercial tier customers Reach New Customers Vertex Standard only manufacturer with this solution Product that allows you to start conversation previously unavailable Post Narrowbanding Environment Concerns over market shrinkage in 2013 Seeking strategy to continue growth despite reduced spend Stand Alone in the Market No such product available in competitive portfolios Clear path for our channel to take market share and grow Market Demands HOW RADIOS CURRENTLY USED TODAY Largest opportunity exists to sell low-cost digital for voice-only use. By 2015, estimates indicate two-way radios will still be used predominantly for — Basic voice by 43%; — Advanced voice by 20%; — Trunking by 20% — Applications by 17%. Apps 12% Trunking 14% Advanced Voice 24% Basic Voice 50% Current Usage Messaging to Create Urgency: Convincing Users To Try Digital Good Enough is No Longer Good Enough BATTERY PRIVACY CALL QUALITY ANALOG CHALLENGES Inconsistent performance Intermittent transmission Missed calls Random chatter Static Interference Background noise Distorted voice DIGITAL CAPABILITIES Optimized voice transmit Digital applies error correction to eliminate noise and static to only deliver the intended voice message to be heard crisp and clear AMBE+2™ vocoder used for best-in-class clarity at various signal strengths. Real privacy -- digital encoding and scrambling makes it harder for others to listen in on a frequency. No control over who hears what is said on a channel. Poor battery life performance Internal Use Only Call management – digital radios each have a unique ID, enabling users to be able to select who they need to call without disturbing others. Operate up to 40% longer because of TDMA protocol CUSTOMER BENEFITS • • • • Reliable communications Hear what is said from farther range Hear and be heard – crisply and clearly Stop repeating messages – increase efficiency • Keep focused – eliminate distractions • Reduce missed calls • • • • Control who hears you Maintain security Only hear what’s intended for you. Place a call to one person instead of entire group • Know who calls you • Radio lasts throughout a long day • Less batteries required on the job • Able to use batteries longer with fewer charges required • Comfortable to wear The Digital Migration Existing Customer Base Operate voice only Limited feature set used Budget conscience Future Customer Base Operate voice only in digital Limited feature set used on digital platform Budget conscience Change Added digital benefits Migration solution or slow and fast movers Increased efficiency Enhanced capability EVX Series Digital Product Line Release 2.0 May 2013 Release 1.0 Jan/Feb 2013 EVX-531 EVX-5300 EVX-534 EVX-539 EVX-5400 EVX Series : What Vertex Standard Delivers •Digital Replacement for the Analog Commercial/Mid Tier •Form Factor and Feature Comparison:VX-450 series Customers buying analog radios now have a Digital solution that fits their budget. •Feature Positioning: (Digital Benefits vs. Analog) – Audio Quality – Inherent Digital Privacy – Clearer Audio over entire Range – Extended Battery Life – Durability/Ruggedness – Call Management Control EVX Series EVX Series Analog Features Emergency Lone Worker ARTS/ARTS II™ Voice Inversion Channel Announce I.S. Rating in Final Development Analog Signaling MDC1200 2 Tone/5 Tone Stun/Kill/Revive Embedded VOX Radio Check Scan Priority Dual Watch Talk Around Follow-me Scan EVX Series Digital Features Emergency With Voice to follow Escalert Tone Lone Worker Basic & Enhanced Privacy Private Call/Group Call Inhibit Companding via CE VOX (Voice operated transmit) Digital Signaling Radio Check Radio Enable/Disable Remote Monitor PTT-ID Encode (Decode – Disp only) Scan Mixed Mode (both Digital/Analog) Priority Dual Watch Talk Around EVX Series 2.0 Release EVX-534/539 and EVX-5400 • 512 Channels / Limited and Full Keypad Models • Display – 8 Character Alphanumeric • Text Message Encode/Decode – Preprogrammed Canned / Direct Entry Messages – Unit-to-Unit or Repeater Mode Transmission • ARTS II in Digital – Group Coordination and Range Management • • • • • Voice Inversion Encryption Unit to Unit Private Calling via Keypad Option Board Enhancements Creating Developers Source Document Intrinsically Safe Option – First Mid-Tier IS Models (EVX-351) EVX Series Package Configurations Portable Standard Configuration Portable Transceiver FNB-V133LI 1380 Li-ion Battery (2300 mAh available) Universal Charger Antenna (VX-450 Series Compatible) Std/Bulk Shipping, Optional Customer Programming Mobile Standard Configuration Mobile Transceiver MH-67A8J Microphone Optional Customer Programming Accessories Common with VX-450 & VX-4500/4600 Series Target Analog Radio Models for Digital Conversion Model Channels IP Rating Max Battery Life Audio Output Ch. Announcement Option Board Exp. Voice Inv. Scrambler Lone Worker Price (Reseller) Kenwood TK-2360/3360 16 IP54/55 13 Hours 500 mW No No Yes Yes $193-241 Kenwood TK-2312/3312 128 IP54/55 10 Hours 500 mW No No Yes Yes $ 210.00 Icom F3011/4011 16 IP54 14 Hours 800 mW No Yes No Yes $ 152.00 Icom F3031/4031 128 IP67 18 Hours 500 mW No Yes No No $210-246 Vertex Standard VX-350 32 IP54 15 Hours 500 mW No Yes No Yes $156-174 Vertex Standard VX-450 512 IP57 18 Hours 700 mW Yes Yes Yes Yes $192-264 Vertex Standard is only radio manufacturer with a Digital radio in this tier Competitive Price Positioning Digital Price Features Motorola XPR-6550 Kenwood NX-210 Hytera PD-78X Motorola XPR-3500 Hytera PD-70X Kenwood NX-200/300 $600+ $500+ $400+ Motorola XPR-4550 Kenwood NX-700/800 Motorola XPR-4350 Hytera MD-78X $350+ Motorola XPR-3300 $300+ Vertex Standard EVX-539 Vertex Standard EVX-534 Vertex Standard EVX-531 Digital Portables Vertex Standard EVX-5400 Vertex Standard EVX-5300 Digital Mobiles Features Price Competitive Price Positioning Analog Motorola PR400 Vertex Standard EVX-539 Motorola CP200 Vertex Standard VX-459 Vertex Standard EVX-534 Vertex Standard VX-454 Vertex Standard EVX-531 Kenwood TK-2360/3360 Icom F3031/F4031 Kenwood TK-2312/3312 $300+ $200+ Hytera TC-780 Vertex Standard VX-451 Motorola CP-185 Vertex Standard VX-354 Icom F011/F021 Kenwood TK-2302/3302 Vertex Standard VX-351 Vertex Standard VX-231 Hytera TC-600 Hytera TC-500 Analog Portables Motorola CM300 Vertex Standard EVX-5400 Motorola CM200 Vertex Standard VX-4600 Vertex Standard EVX-5300 Vertex Standard VX-4500 Kenwood TK-7360/8360 Hytera TM-800 Kenwood TK-7302/8302 Vertex Standard VX-2200 Vertex Standard VX-2100 Kenwood TK-7102/8102 $100+ Analog Mobiles Recap Need Reach New Customers Post Narrowbanding Environment Stand Alone in the Market Adversity to Change Not Within Reach Don’t Need Digital Migration Path Unknown/ Misunderstood Q&A Does EVX talk to TRBO? Are there plans to do SiteConnect? Can EVX Trunk? Will the repeater do Dynamic Mixmode? Is EVX built by VS or MSI? Are there demo units available? Why TDMA vs. FDMA digital?
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