Eduze Main Deck Feb 2014

To provide everyone equal accessto the learning, loving and LOLing that digital content offers.

Wednesday, March 26, 14

The emerging digital world

Across emerging markets the smartphone is heralded as the great leveler - a device that will bring many into the global digital age.

However, the stark reality is the high cost of data and the lack of internet experience means most rarely access digital services.

Cost LanguageReliabilityApprehension

Obstacles to widespread digital service adoption in emerging markets:


Rapid Smartphone AdoptionSub $50 Android smartphones are entering the African market alongside other aggressive device/Telco marketing and pricing strategies; smartphone penetration is predicted to increase rapidly from around 19% in 2013 3.

3 Blycroft Publishing “2012 African Mobile Factbook”

Growing African Middle Class2012 - 313 Million / 34.3% of the population 1 2060 - 1.1 billion / 42% of the population 2

Seven of the ten fastest growing world economies are African 2

1 African Development Bank 20112 Deloitte on Africa - “The Rise and Rise of the African Middle Class”

Data Cost & ConfusionInternet remains prohibitively expensiveExample - South Africa - Cheapest rates require R 1,800 upfront costRemarkable lack of training, education and assistance in digital technology

Why Africa? Why now?


http://www.africantelecomsnews.com/Factbook_form.shtml

http://www.africantelecomsnews.com/Factbook_form.shtml

Imagine you are one of the 18 million people that take

taxis in South Africa for over an hour every day.

Odds are you have asmartphone or will buy

one in the next 12months

Unfortunately the high cost of data and your lack of digital experience means

its unlikely you will use your smartphone to access the internet for your journey. In fact it’s quite unlikely you use the internet at all.

The problem - users


CLOX

A completely autonomous, independent digital content distribution platform that operates off-grid.

Without the need, cost or limitations of 3G, ADSL, or even electricityWednesday, March 26, 14

How We Roll

TAXIS

TOWNSHIPS

SHOPPING MALLS

INTERCITY BUSES

CLOX Junior CLOUD IN A BOX - Our custom 12 volt Wi-Fi content servers quickly and freely deliver a

huge range of content to on-board passengers with smartphones. CLOX Biggie

Our ‘Super’ Wi-fi content servers can be positioned in townships, malls and other

urban hubs to create a high speed and free content network that can stretch across a

20km radius.


Functionality & ImplementationsTaxis & Intercity Buses•Pre-programmed video feed with advertising

•Wi-Fi router & content server•Geo-targeting / contextual local advertising

Retail & Restaurant•Wi-Fi router & content server •Micro and Local Reach - broadcast to local community and customers

•Cheap Data•Digital Jukeboxes•In-Store Screens - content feeds, games, high scores, etc

Live Events•Data capture, content, marketing channel

•Secure back channel for ops communication

•Digital order and purchase drinks

Wireless NetworksEasily add content and advertising layer to Wifi Hot spots and

Super Wifi Networks - reduce backhaul cost and limitation and add more revenue opportunities and customer value


EDUZE

EDUZE is a content platform that primarily operates over CLOX. Located in taxis, buses and trains through to music festivals, sports stadiums or rural villages.

In-flight entertainment, applied anywhere


Marketing communicationsWalled garden internet

Live interactionSecure comms Data captureSocial mediaMap/locaterDownloads

UploadsChat


Revenue

Digital Ads

Sponsored Content

Click for more infoClick to download voucher

Click to fill out survey

Television Ads

Radio Ads

All able to be geo- & demo-targeted and trackedWednesday, March 26, 14

The Market

Africans waking up to the many opportunities and capabilities of the digital world

Keen sense of own identity and power

Middle class or aiming to be

Aspirational

Urban/peri-urban 16-34 year old


Business

Coca-ColaTranslux / Autopax / PRASA

Primedia OutdoorOgilvy Africa

US State DepartmentWikipedia Foundation

State of play:Eduze is a Pty Ltd company, registered in South Africa

In development for 12 monthsReal world iteration trials running in South Africa.

Global founders are two Fins and one South African/Brit. South African co-founder is Shaka Sisulu.Currently bootstrapped but multiple investment & partnership opportunities from overseas and South

Africa (including global billion dollar tech, investment and media companies.)

Africori WabonaNext MusicSovereign MusicEvery 1 MobileEmzingo

Ongoing trials & discussions:


TeamCharlie Beuthin - BA (Hons)- acting CEO - Global co-founder 10+ years in award-winning management and executive roles at Universal Music UK, Warner Music UK, MTV Africa and start-ups Glambox SA (led winning acquisition), Channel U (successful independent music TV Channel). Founded Shuffle TV - acquired by Nation 217.

Arto Pitsinki - CXO - Global co-founderExecutive positions at leading Wi-Fi technology companies including NextMesh (Helsinki). Co-inventor of patent WO20100321213 “Arrangement for wireless communications and travel”. Chief wireless engineer for multiple large-scale Wi-Fi installations including the largest shopping mall and ice hockey rink in Finland.

? - CTO - Global co-founder (full time with Eduze once funded.)Currently CTO at leading wireless technology provider (Helsinki)- Previously CEO of Meshcom Technologies. Chief Engineer on many

large-scale wireless networks globally. Co-inventor on patent WO2001091480 A1 “Information transfer between an end user and a radio network”. Primary inventor on WO2003058915 A1 “Method for supporting mobility in wireless networks”. Founded Radionet and exited

through acquisition by Airspan. Developed routing software that has been adopted by two branches of the US military.

Shaka Sisulu - MBA - African co-founderGrandson of Walter Sisulu. 10+ years executive positions in mid-tier telco and media companies. Currently serves as national task force

leader in the Youth League of the ANC and on the board of LoveLife & The Public Sector Excellence Awards. Shaka is a 2011 Archbishop Tutu Fellow and was a 2012 delegate to the Academy of Achievement’s 50th Anniversary Summit in Washington. In

2012 he joined Mail & Guardian’s 200 Young People alumni. Co-founder of a start-up incubator and founder of mobilization organisation CheeseKids, Shaka is also a talk radio DJ, public speaker and published author.


Value Proposition

Strategic Differentiator

D2C Sales, Content, Marketing & Promotions Channel

Promote Partner Services (eg -Buses, Taxis)

Value Add for Customers

Further monetize existing footfall

Secure communication back channel (support staff, etc)

Highly targeted and easily tracked advertising and data capture


Value Proposition - Users

Highly Compelling and Relevant Range of Content

Easy VOIP Calls and Chat

Lower Internet Data Charges than their mobile bundle.

Uncomplicated and Highly Accessible

FREE! (around 70% of all content is free)

Empowering Brand

Content Translated into Local Languages


Market size - South Africa

Total Available Market Smartphone Penetration 1

2013 - 13 million 25% of population


1 Source: GSMA & Deloitte - Sub-Saharan Africa Mobile Observatory 2012

0

15

30

45

60

2010 2011 2012 2013 2014 2015 2016 2017

South African Smartphone Penetration

% o

f po

pula

tio

n


0-45-9

10-1415-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-7475-7980-8485-89

0 2 3 5 6

South African Population Pyramid

Males & Females / Millions

Serviceable Available Market Smartphones Users 16-34 years old 1

Total 16-34 year old population = 20 million (2013), 21.5 million (2017)

Smartphone penetration = 25% (2013 ), 54% (2017)

2013 - 5 million10% of population

2017 - 11 million20% of population

1 Source: 2013 U.S. Census Bureau, International Data Base



14

15

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16

17

2002 2004 2006 2008 2010

South African Population in urban conglomerates of more than 1 million

Po

pula

tio

n in

Mill

ion

s

Serviceable Obtainable MarketSmartphones Users 16-34 years old

urban and peri-urban areas62% Urbanization with urban smartphone skew





Eduze Main Deck Feb 2014

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