EMEA AV Industry Outlook and Trends Analysis 2019

1. COMM-TEC S14 Solutions DayWednesday 25th September 2019 Sarah Joyce, Chief Global Officer

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4. GDP growth is currently positive across the globe.This provides the driving force for Pro AV but linkage is both blessing and curse. Russian Federation Canada Eurozone growth cooling in response to challenges of Brexit and impact of US/China trade war KZ MZ Xi Jinping’s prolonged tenure ensures policy stability in China US consumer spending is high United States TR JP China DZ LY India • IT business process outsourcing industry set for rapid growth in India, Malaysia, and the Philippines The IMF expects the world economy to grow by 3.9% • India’s economic reforms attracting more foreign investment Brazil Australia Uncertainty on economic policy after upcoming election in Brazil NZ Source: https://connect.ihs.com/insight/economics#

5. 2019 IOTA AV INDUSTRY OUTLOOK AND TRENDS ANALYSIS EMEA Summary

6. Section I: Growth and Trends in EMEA New technologies, displacement effects, and new markets are key contributing factors in the global expansion of pro AV.

7. Four key themes emerge from this year’s forecasts.It starts with GDP but is shaped by product and service developments. Increasing digital signage requires additional backend to feed the hungry displays, hence an increase in servers and storage supported by IP networks for distribution. Overall, Pro AV is influenced by the same things as many industries: gross domestic product, or GDP. The rising GDP across much of the globe in turn drives demand for Pro AV. AV over IP GDP Declining hardware prices and an experience- based economy create opportunities for services such as design, installation, and managed services. All of this equates to revenue and markup for the pro-AV channel. Easier purchasing capabilities (price declines and greater interest) for digital signage have caused a surge in direct-view LED and flat-panel displays. Rise of Services Display Proliferation

8. At the top level, IOTA reveals a growing and diverse industry.Despite concerns over an expected economic slowdown, pro AV in EMEA is expected to show strong growth through the later years of this forecast. The total pro-AV industry in Europe and the Middle East was $64B in 2018. This is expected to swell to $67B in 2019 and increase to more than $85B in 2024, representing an almost 5.0% compound annual growth rate (CAGR) and $18B in additional value. 2024 2018 $85 $64 BILLION BILLION 2019 $67 BILLION *Source: AVIXA 2019 Global IOTA

9. Similar to GDP, growth persists across the regions.The Middle-East and North Africa is expected to see the highest growth. Western Europe dominates the region in revenue. This subregion alone is expected to reach $32.5B in revenue by 2024, accounting for more than a third of all revenue in EMEA. Regions in Africa will see the highest growth. Sub-Saharan Africa is expected to see a 6.3% CAGR, while the Middle-East and North Africa is expected to grow 7.2%. Scandinavia will grow slower than the rest of EMEA. Countries in this region are recovering from a shrinking economy, estimating a CAGR of 3.4% from 2019-2024.

10. Vertical Markets DACH(2015 $9.8B to 2024 $14.7B) (EMEA $57.2B to $85.1B) • 2020 DACH $12.4B (EMEA $69.9B) • Largest growth vertical markets in the DACH region are: • Corporate • Media and Entertainment • Retail • Venues and Events • Transportation

11. Solution Market Segments DACH(2015 $9.8B to 2024 $14.7B) (EMEA $57.2B to $85.1B) • 2020 DACH $12.4B (EMEA $69.9B) • Largest growth solutions markets in the DACH region are: • Video Displays • Control • Environmental

12. EMEACorporate continues to anchor pro AV; Cinema leads growth.Movement of patient records to cloud services will cause large growth in Healthcare. Revenue CAGR $14.5B $11.3B $9.9B $5.2B $5.8B 4.7% 4.9% 5.7% 5.4% 4.9% $3.7B 6.4% Corporate Media & Entertainment Venues & Events Retail Education Government & Military -1.6% 6.7% 6.2% 6.1% 9.9% 7.7% $3.2B $3.1B $3.1B $2.8B $2.0B $1.5B $.8B -1.6% .3% Others Transportation Residential Hospitality Energy & Utility Healthcare Cinema

13. EMEAFollowing global trends, Conferencing remains the largest solution.Live Events will continue to be a key component of growth in this region, though Content Distribution & Media will close the gap in the coming years. Revenue CAGR $10.8B $8.9B $8.3B $8.2B 5.3% 4.4% 2.9% 3.2% Conferencing & Collaboration Digital Signage Learning Live Events $5.8B $3.4B $7.9B $4.1B $3.6B $5.9B 4.9% 4.3% 9.3% 8.6% 5.5% 4.2% Content Distribution & Media Security/Surveillance /Life Safety Performance/ Entertainment Others Command & Control Simulation & Visualization 13

14. EMEAAs companies switch to flat-panel monitors, Video Displays grow rapidly.Projection remains the one area of forecast decline through the period. Revenue CAGR $17.7B $7.2B $11.2B $6.7B 8.4% 6.5% 4.6% .3% Streaming Media, Storage, & Distribution Services Video Displays Capture & Production Equipment $3.6B $5.4B $5.0B $5.8B $3.2B 4.2% 3.1% $1.1B 10.7% 8.2% -7.3% 4.2% Audio Equipment Control Video Projection Infrastructure Environmental Standalone Software

15. Fundamentals for ProAV are strong, bolstered by global GDP and a focus on experience across many verticals. Markets, solutions, growth in digital signage, surveillance, command and control with underlying products all represent ways of diversifying business. Harnessing new opportunities requires knowledge and planning. Fortunately there are events and there is research to help. Where does this leave us? Positivity Rules Revel in diversity Know the customer

16. Hospitality Retail Education Corporate Transportation Sports/Venues 2018-19 The six MOAR verticals Market Opportunity Analysis Reports

17. MOAR clarifies the value of AV to modern business. The studies use surveys across the full value chain to identify the role of AV throughout. • AV Provider Survey • End-User Survey • Consumer Survey Ultimately, the consumers in a market serve as its true end-users. Surveys were sent to consumers of the six vertical markets to determine the role AV solutions play in augmenting or detracting from their experience. End-user/ decision-makers take consumer requirements and translate them into investments in AV solutions. Surveys to decision makers inside the companies identify spending plans and shed light on the procurement process. AV providers give insight and provide solutions and services to end-users. Provider surveys reveal discrepancies between end-user needs and available solutions to highlight challenges faced when serving the market.

18. The drivers of overall satisfaction vary across markets. Exceptional experiences are formed when one or many of the key drivers are impacted. Sports Venues Corporate Retail Education Hospitality Transportation Support from leadership • Being • challenged Opportunities to learn Stadium lighting • Audio • quality Cleanliness of facility Ability to find product Overall product selection Ease of checkout Quality of professors Challenge level of classes Room layout Waiting area comfort Food and beverage options Friendliness of staff Overall room experience Room cleanliness Value for price paid

19. Top three reported technologies reflect consumer focus. From security to music, from signage to lighting, AV solutions are key to providing the right experience for consumers across all verticals. Retail Sports Venues Corporate The most noticed pro-AV technologies are those that directly impact or are sought by the consumer. Security and surveillance solutions are installed in almost all office buildings and hotels, with consumers having to use a card to gain access. Music/announcements is another top noticed solution, especially in verticals where consumers are paying attention to game play, store ambiance, or when the next train will depart. Security and Surveillance Large Group Solutions Small Group Solutions Seasonal Decorations Music/Announcements Security and Surveillance Music/Announcements Digital Signage Videowalls Transportation Hospitality Education Single Video Displays Interactive Displays Environmental Security and Surveillance Environmental Lighting Features Music/Announcements Digital Signage Lighting Features

20. When present, new technologies score high on impact. While AR/VR are not commonplace, where they do occur they are often rated as strongly contributing to the experience. Videowalls also score well. AR/VR AR/VR 76.0% 33.5% Voice assisted control Voice assisted control 32.2% 75.0% Interactive displays Corporate Hospitality Unified communication solutions 31.1% 74.2% Security/surveillance 54.0% Videowalls 42.5% 80.0% Audio Video Projection 48.0% 72.6% 38.0% Sports Venues 37.9% Retail Interactive displays Lighting 71.6% 47.0% 35.0% 81.1% Videowalls 82.3% Videowalls 39.0% 72.0% Interactive displays 75.8% 3D projectors 73.4% 37.8% 69.1% On-demand content 71.6% Transportation AR/VR Education 37.8% 62.9%

21. In summary…

22. Fundamentals for ProAV are strong, bolstered by global GDP and a focus on experience across many verticals. Markets, solutions, growth in digital signage, surveillance, command and control with underlying products all represent ways of diversifying business. Harnessing new opportunities requires knowledge and planning. Fortunately, there are important events in the region to participate in and there is research to help. Where does this leave us? Positivity Rules Revel in diversity Know the customer