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4 END OF YEAR REPORT 2018 Approved for distribution outside of the LoRa Alliance™ A trend we have seen over the past year is that private deployments have skyrocketed. The business benefits and efficiencies are what lure most organizations to invest in large scale initiatives. We have some of the world's largest players in our ecosystem who enable volume roll-outs. The flexibility of deployment models is driving private network deployments, with the capex/opex structures eliminating the fear of being locked into one type of proprietary network with single vendors. This drives a number of applications, such as: • Factory (smart building) efficiency, driving operational savings and therefore net profit growth • Tracking employees / workers / assets, detecting any abnormal conditions. New monitoring functionality assists with not only enhanced worker safety, but also improved worker productivity, quicker emergency response, reduced operational costs and overall employee satisfaction So what else is driving the uptick in deployments? The declining cost of sensors is a key influencer accelerating growth in the IoT space. More sensors and devices are available for LoRaWAN as compared to other technologies because of our diverse ecosystem backed by a variety of vendors. The value of being in the unlicensed spectrum gives LoRaWAN a cost advantage over cellular deployments. The LoRa Alliance also provides an infrastructure that will enable more OEMs to bring certified products to market more quickly. This is done through our robust and expanding certification program that gives users confidence that devices are built to the specification, offer the requisite lifespan and will be interoperable across networks. The certification program is further supported by test tools to accelerate members' product development and is continuously being strengthened to ensure we're meeting the needs of our members and their customers worldwide. Fundamentally, it is the fact that LoRaWAN is a specification and not a proprietary solution that is its biggest strength. Input from members, such as our new country-based task forces, provide invaluable feedback about each specific market's needs, which the LoRa Alliance leverages to advance the specification. Firmware updates over the air is a key example of this - multiple end markets that are ideal for the IoT, for example, metering, are in locations that are remote or hard to reach. In these locations, deploying a sensor designed to operate over the long term only makes sense if the devices can be updated remotely. In fact, this is why technologies like NB- IoT and cellular simply aren't ideal for many of these types of applications, they can't achieve the same battery life and don't have the range to penetrate indoors or deep underground. For these reasons, we are seeing strong LoRaWAN deployments in metering and other industrial monitoring applications. Further, LoRaWAN's end-to-end security means the high standard required by the industry is embedded in our core specification and is continuously enhanced as the specification evolves. As an alliance, our experts and members have deep understanding of the ever-evolving security landscape and have already devised robust capabilities in risk and compliance, cloud security, data security and privacy, as well as threat management, supported by analytics to predict cyberattacks and ensure network and infrastructure security. We look forward to connecting with the IoT ecosystem in 2019 to continue to realize the many benefits of LoRaWAN.

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