Beekeeper Strategy for Growth

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"Explore Beekeeper's challenges and strategic recommendations for achieving further growth, focusing on vertical integration, geographic streamlining, and restructuring programs. Analyze internal strengths and weaknesses alongside external opportunities and threats to navigate the evolving business landscape."

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N Nanyang Consulting BEEKEEPER From Pivoting Startup to Disrupting Scaleup Presented to: Christian Grossmann and the Board at Beekeeper Presented by: Minghao, Victor, Vishnu, Daniela 20 May 2018

Agenda Agenda Page 2 1 Problem 2 Recommendation 3 Internal & External Analysis 4 Strategic Alternatives 5 Implementation 6 Financial Analysis 7 Contingency Plan 8 Conclusion

Problem: Problem: Beekeeper faces three core issues that need to be overcome going forward Page 3 1 2 3 Lack of Vertical Focus Financial Pressure Scalability Which verticals should you focus on? How can you achieve profitability? How can you prepare for further growth? 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Recommendations: Recommendations: Three strategies will allow Beekeeper to overcome the problems and equip the startup for further growth Page 4 1 2 3 Vertical Integration Strategy Geographic Streamlining Restructuring Program The identified recommendations tie back into the underlying problems Lack of Vertical Focus Financial Pressure Scalability 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Internal Analysis: Internal Analysis: Beekeeper exhibits strong developed skills but faces organizational challenges that hinder growth Page 5 Strengths Weaknesses Poor integration between sales and engineering teams Strong mobile solution Lack of vertical focus Established client base across industries Short runway before next required funding Strong culture and values round Customization skills Lack of infrastructure and high costs in Zurich 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

External Analysis: External Analysis: Beekeeper operates in a promising environment with threats Page 6 Opportunities Threats Increasing mobile adoption globally GDPR in Europe More decentralized workforces with low Increased competition in mobile solutions engagement across verticals Increased focus on security of internal More hacking incidents communications 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Strategic Alternatives: Strategic Alternatives: Six strategies have been considered before determining the optimal path Beekeeper should take Page 7 +Good Bad STRATEGY TOTAL Profitability Scalability Strategic Fit Customer Fit Feasibility Proportional Scaling of Staff + Outsourcing of Engineering + + Acquisition of Competitor + + + + + + + + Vertical Integration Geographic Streamlining + + + + + + + + + + + Restructuring 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Implementation (1/3): Implementation (1/3): Vertical Integration Strategy Page 8 1 What Focus on hospitality, airports, mass rapid transit (MRT), event organizations and NGOs for increased focus 2 Why You play to your strengths in security and customization while focusing on poorly served verticals 3 How Allow current contracts for other verticals to expire and then, transfer customers into standardized options Develop a standard applications for NGOs, e.g. working with EcoFiltro in Guatemala as a testimonial case Make the pricing model of the standard application user-based (e.g. USD10 per month) Continue to offer customized solutions for hospitality and airport clients with focus on security and GDPR compliance Identify launch customers for MRTs (e.g. SMRT in Singapore) Customized-solution pricing model: Hosting/customization fee followed by yearly maintenance fees 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Implementation (2/3): Implementation (2/3): Geographic Streamlining Page 9 1 What Streamline operations geographically with offices in Winterthur, San Francisco and Singapore 2 Why To reduce costs and have sufficient space for expansion plans and cater to all major geographical markets 3 How Identify a suitable location in Winterthur (Switzerland) for establishing a new European HQ and shift the London and Berlin offices for cost reduction reasons Maintain the HQ in Zurich until the Winterthur office is established and up and running Set up an office in Singapore with a core mass rapid transit team for serving test customers Have a sales team for standardized applications in Singapore for event organizations and NGOs 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Implementation (3/3): Implementation (3/3): Restructuring Program Page 10 1 What Restructure the organization into two customer-centric solution providers by focusing on key verticals 2 Why To customize a solution for each vertical, communication between engineers and sales staff is key 3 How Share the restructuring plans transparently and timely with all employees and arrange small meetings with employees to clarify concerns Set-up an incentive program for a team-based performance approach Reduce the amount of HQ generalists and introduce a team of engineers, security and sales staff that specialize in a vertical Organize a team of entry-level sales staff to cater to NGOs and event organizations Organize a team of experienced engineers and sales staff to cater the customized solutions segment, e.g. hospitality and airports Create a communication channel to share customer success stories based on key verticals to educate the teams and for marketing usage 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Key Performance Indicators: Key Performance Indicators: The following key metrics allow Beekeeper to keep track of the success of the suggested strategies Page 11 Key Performance Indicator Target 1. Number of pre-sales meeting with new key verticals 1. 20 per sales person per month 2. Percentage of sales from key verticals 2. Increase from 80% to 92% 3. Number of renewal of client contracts from key 3. 70% in standardized solutions, 95% in customized verticals solutions 4. Cost reduction due to relocation 4. USD1.9 million 5. Retention rate of staff 5. 95% 6. Number of customer success stories per vertical 6. 3 per vertical p.a. 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Timeline: Timeline: The following timeline highlights how the suggested strategies should be implemented time-wise Page 12 Milestones 2018 H2 2019 2020 H1 H2 H1 H2 Vertical Integration Strategy Mass Rapid Transit Events NGO & Social Business Geographic Streamlining Identify Location in Winterthur Shift Zuric Office Shift London & Berlin office Set Up Singapore Office Sales Team in Singapore for Events & NGO Restructuring Program Announce to all employees Setting up incentive program Launch Restructuring program Update Communication Chanel for Customer Success Story 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Financial Analysis: Financial Analysis: The suggested geographic streamlining will decrease the costs by approximately $2 million Page 13 All numbers are in Million US$ Zurich Office Rental Salary Operational Support 10,000 sqft building 50 People Servers etc $ $ $ $ 6.3 6.5 1.2 14.0 Cost Savings: $1.9M Winterthur Office Rental Salary Operational Support 10,000 sqft building 50 People Servers etc $ $ $ $ 4.2 6.5 1.4 12.1 14% Reduction New Investment Outlook: $3.9M Singapore Office Rental Salary Operational Support Grants 10,000 sqft building 50 People Servers etc Government $ $ $ $ $ 1.8 4.0 0.6 (0.6) 5.8 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Financial Analysis: Financial Analysis: We anticipate 60% expected user growth from the suggested strategies, with a 4x return on investment Page 14 Type of Vertical Vertical Integration Strategy Mass Rapid Transit Airports Events NGO & Social Business Restructuring Program Hospitality Measurement Basis 2018 2019 2020 2021 Trend /copmany /company /users /users 1 1 30,000 50,000 3 5 100,000 5 10 20 15 80,000 100,000 200,000 Over 60% Growth /company 6 10 15 20 Total Companies 8 18 35 50 Type of Vertical Vertical Integration Strategy Mass Rapid Transit Airports Events NGO & Social Business Restructuring Program Hospitality Measurement Basis 2018 2019 2020 2021 Trend $1M/copmany $.5M/company $10/users $8/users 1 1 3 3 5 8 10 10 Return of $12M vs. $3.9M Investment 0.30 0.40 0.80 0.80 1.00 1.60 $2M/company 12 20 30 40 26 Net Revenue 14 44 63 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Contingency Plan: T Contingency Plan: The anticipated risks underlying the suggested strategies need to be overcome to manage the risk adequately Page 15 Anticipated Risks Contingency 1. Increase the attractiveness of the standardized application (e.g. price incentives) 1. Loss of clients from old verticals 2. Prepare a strong success story case, e.g. EcoFiltro in 2. Poor take-up rate by NGOs and event organizations Guatemala and Formula1 in Singapore 3. Loss of staff due to relocation 3. Provide relocation packages and support while adopting 4. Lack of test customers for MRTs a phased approach 5. Decrease in motivation of employees due to 4. Approach multiple MRTs simultaneously, e.g. Hong Kong restructuring MTR 5. Use success stories to reduce resistance 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies

Conclusion: Conclusion: The suggested strategies will allow Beekeeper to overcome the identified challenges and equip itself for the future Page 16 1 2 3 Vertical Integration Strategy Geographic Streamlining Restructuring Program The identified recommendations tie back into the underlying problems Lack of Vertical Focus Financial Pressure Scalability 1 2 3 4 5 6 7 8 Problem Recommendation Analysis Alternatives Implementation Financials Conclusion Contingencies