Company LOGO RFID and Track & Trace System

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1 Company LOGO RFID and Track & Trace System 16 April 2005

2 RFID Basics

3 Why So Much Interest? Wal*Mart Compliance Top 100 Wal*Mart Suppliers Pallet and Case Level Success stories from Airport, Tesco UK, Target, Metro Germany, US Dept of Defence, International Paper

4 Market trigger: Wal*Mart expands RFID mandate to include all suppliers by 2006 Milestone Date Apr 2004 Jan 2005 Jun 2005 Oct 2005 Jan 2006 Other non- US Region Milestone Description Wal*Mart went live with its initial EPC implementation at distribution centers in Sanger, Texas. Eight suppliers shipped cases and pallets of 21 products to the distribution centers, and Wal*Mart used EPC tags to track the products as they were shipped on to seven local Wal*Mart Supercenters. - Top 100 suppliers began putting RFID tags carrying Electronic Product Codes (EPCs) onto pallets and cases beginning in January Tagging would begin at three Wal*Mart distribution centers in Texas, which serve about 100 Wal*Mart stores percent reads of cases on conveyors moving at 540 feet per minute. RFID systems will be operating in up to six of its distribution centers, as well as in 250 of its stores. Wal*Mart expects to be using EPC technology in up to 13 distribution centers and 600 Wal*Mart and Sam's Club stores. Wal*Mart will require its next 200 top suppliers to begin tagging cases and pallets. currently working with suppliers to determine in which geographical region the expanded EPC implementation will occur. Source: RFID Journal

5 Market Potentials for RFID Big corporations such as Wal*Mart, Boeing, Airbus, Tesco, Metro Group etc. have mandated the use of RFID on goods shipped to them The Yankee Group a research consultant in US estimated that the market for RFID will reach US$4.2 billion by year 2008 (source: Innovation & Technology Commission) Wal*Mart purchases approximately US$10 billion worth of goods from the Mainland China, of which 60% is supplied in the Pearl River Delta Over 65,000 factories in the Pearl River Delta were set up by Hong Kong manufacturers (source: HK Trade Development Council)

6 Progress with RFID at Wal*Mart (Mar 05) No. of suppliers live with RFID > 129 suppliers RFID systems installed No. of readers used By end of Feb 05, Wal*Mart has received Tag reads taken 104 Wal*Mart stores 35 Sam s Club 3 distribution centers 14,000 23,753 tagged pallets 663,912 tagged cases > 5 million Source: IDTechEx Ltd

7 HKSAR Govt s Strategic Plan for RFID Development Strengthen cooperation on RFID development with the Guangdong Province Both Hong Kong & Guangdong Province agreed to support, among others, the R&D projects in RFID and will equally invest ~HK$170 million each for such development Consider speeding up the clearance process in the border between Mainland and Hong Kong by the use of RFID technology to enhance efficiency

8 RFID Introduction to RFID Radio Frequency Identification Using RF signals to identify an unique object Basic Equipment Readers Antennas Tags

9 RFID in Hong Kong Toll Collection Autotoll Microwave: 2.45, 5.8 GHz Smart Cards Octopus HF:13.56MHz Supply Chain Wal*Mart Compliance UHF: 433, 860, MHz

10 RFID Tags Tags: Active Battery-powered. Broadcast Signal Very Long Range Passive No Battery. Semi-active Battery activated by reader Read Only, Read/ Write Carton, paper, glass, windshield

11 Benefits of RFID Efficiency Dependability Barcode/UPC Ability to read one tag at a time (line of sight Required) Labels easily damaged RFID Tag/EPC Ability to read multiple tags simultaneously (no line of sight required) Tags less susceptible to damage Can be used in harsher environments Data Capacity Limited amount of data can be assigned Significantly higher data capacity to capture detailed information about product Accuracy close to 100% Flexibility Static information Potential for read/write capability, making tags reusable

12 EPC is What is EPC Standard? Electronic Product Code A product numbering scheme Managed by EPCglobal EPC vs. UPC barcode? Variable length Supports multiple industries Uniquely identifies every single item (unique serial number) EPC variable length product identification code Header Domain Class Instance Object Type Company Item Reference Serial No.

13 Sample RFID Applications

14 Real-time visibility & control

all read points Benefits Control raw material inventory Increase visibility of

15 Work Process Tracking Our Solution Set up check points at various locations Readers capture tags that passes through Status by matching data collected from all read points Benefits Control raw material inventory Increase visibility of production process Control & monitor production quality and quantity Increase productivity

navigation points Benefits Increase visibility of work process

16 Warehouse / CFS Management Our Solution Install RFID reader and antennas on forklifts Tag the boxes / containers / cages Tag the navigation points Benefits Increase visibility of work process Track locations of goods Monitor inventory level Increase space utilization

existing delivery system Benefits Monitor goods in/out movement

17 Tracking Shipment Our Solution Install RFID readers at dock doors Attach RFID tags to bags / pallets / cartons Integrate with existing delivery system Benefits Monitor goods in/out movement Make sure shipment is correct Reduce human error Dock door RFID dock door

delivery system Benefits Increase visibility of dock bay management

18 Loading / Unloading Bay Management Our Solution Install RFID readers at loading bay Use RFID tags on trucks Integrate with existing booking/ delivery system Benefits Increase visibility of dock bay management Better allocation of dock bays Increase occupancy rate Increase turnover rate

19 E-seal Application on Containers

20 Tracking & Tracing

21 1. Web-based solution 2. Real-time Tracking 3. Vehicle ID / Name 4. Record date & time 5. Speed, direction and engine status 6. E-Map covers HK & Guangdong Province 7. Security alarm system GPS Service

22 Concerns on RFID Implementation

23 Concerns 1. Business vision is important 2. RFID solution should be flexible & modular 3. RFID is not a solution for all problems 4. RFID is not a kind of plug-and-play equipment 5. Tag cost will be going down 6. Close to 100% read rate Working environment System design and installation Choice of readers and tags

of turntables Experienced RFID vendors System design,

24 Pilot project Part of workflow Selected products Lab test / pilot portal Advices Use of re-usable tags Use of turntables Experienced RFID vendors System design, installation & local support Choice of readers & tags

25 Company Background

26 Core Business Autotoll Limited Electronic Toll Collection Services (ETC) Utilizing RFID technology since 1992 New Business Intelligent Transport System (ITS) GPS RFID for supply chain management

27 Core Business Electronic Toll Collection 48 lanes of 11 tolled tunnels / roads in HK Strong local support team (7x24 service) Scrutinized by Government and the public Stable and reliable: Company System Services

29 Autotoll Capabilities Stable & reliable company Over 10 years experience in RF technology Strong and experienced local support team Pilot Portal for SME on lease basis Strategic alliances TransCore & Symbol Successful cases: Wal*Mart, Target, Tesco, International Paper, HK International Airport, Las Vegas McCarren Airport etc Readers & tags with outstanding performance Member of EPCglobal HK

30 RFID Pilot Portal Partnership between Autotoll, IBM and HKPC Entry-level Wal*Mart Compliant Service Package Features: Autotoll Hardware + portal solution One-stop service Low monthly lease rate

31 Lab test Autotoll Solution Center Live solutions for Supply Chain Manufacturer Warehouse Retailer Transportation Systems are integrated With EPC network Visits are welcome

32 Contact Us ~ Let us assist you moving ahead with RFID implementation Phone: (852) bd@autotoll.com.hk

Managing the EPC Generation Gap An overview of EPC standard migration from Generation 1 To Generation 2 RFID tags. APPLICATION WHITE PAPER

Managing the EPC Generation Gap An overview of EPC standard migration from Generation 1 To Generation 2 RFID tags. APPLICATION WHITE PAPER Copyrights 2004 ZIH Corp. All product names and numbers are Zebra