The Digital Revolution in Health –Telefonica perspectiveMWC 2015

Have you noticed?

We are living the deepest technological revolution in history…

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Customer behaviour is changing – it is more mobile, more digital …

Global internet users are growing

Devices are more wireless Digital adoption is higher

Traffic is more mobile

2.75 Bn users 2013 Mar

Source: KPCB – Internet Trends 2014

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We cannot make it anymore without our mobile devices…

All I need is my smartphone…

60%40%

52%

21%

44%

I can buy a coffee with my mobile in 9,000 Starbucks shops

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… and the “wearable revolution” is coming…

(*) Muestra filtrada, poseedores de Smartphone

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The impact of the digital revolution in the telco sector is huge

TO

DIGITAL TELCO

FROM

TRADITIONAL TELCO

SERVICES

CUSTOMER EXPERIENCE

NETWORKS

� Voice

� Accesses

� Standard offers

� Data

� Bundles of digital solutions

� Personalization - convergentoffer

� Call Centers

� Stores

� Digital channels

� Multichannel experience

� Copper, 2G/3G

� Fixed, mobile networks

� Fiber, 4G LTE, Cloud-RAN,LTE-Advanced …

� Convergent infrastructures

US$ 8 Bn CapEx to cover

300 Mill pops by 2014

6-7 Mill HP FTTH in 2015 (50% coverage)

Disruptive convergent offer

Fixed telephony, fixed broadband, TV, mobile

minutes and mobile data

Offers tiered by downlink

speed of data

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In this context, Telefonica is building strong capabilities…

…in order to capture the opportunities of the Digital Revolution:

TELEFONICA DIGITAL SERVICES ECOSYSTEM

FinancialServices M2M

eHealth

Security

Video

Cloud

Digital Revolution sits at the core of Healthcare industry transformation

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Context of the Health sector: the challenge of sustainability

Global trends :� Demographic, social and economic changes that generate a

continuous and rapid growth of health spending:

� Increased longevity

� High prevalence of chronic diseases (+30% of the population;70% - 80% of total health expenditure)

� Need to increase coverage of primary and hospital care incertain regions (case of Latin America)

� Budget constraints that coexist with a growing health demand andinformed patients which are involved in their health care

There is a need to review existing public and private-care models to make them sustainable

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The transformation of traditional Healthcare models

We are moving towards a health model in which:

9EVERYTHING IS CONNECTED

9NEW CARE MODELS FOR MONITORING AND REMOTE PATIENT CARE ARE BEING DEPLOYED

9IT IS THE CITIZENS THEMSELVES WHO ARE DEMANDING AND WILLINGTO PAY "OUT OF POCKET” NEW HEALTH SERVICES

9THE DOCTOR - PATIENT RELATIONSHIP IS ALSO EVOLVING AND ISINCORPORATING NEW DIGITAL TECHNOLOGIES

9ONLINE CONSULTATION IS A REALITY AND IS TRANSFORMING THETRADITIONAL MODEL OF RELATIONSHIP BASED ON FACE TO FACE VISIT

9M-HEALTH, AS A GROWING TECHNOLOGICAL INNOVATION IN THE FORM OF SENSORS ANDAPPLICATIONS, ALLOWS ACCESS TO MEDICAL CARE AT ANYTIME, ANYWHERE

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Telefonica in the Healthcare sector

Telefonica is developing solutions to be present in three of the major areas of transformation of Healthcare industry:

Remote Patient Management andtelemedicine services to optimizehealth care provision adapting it toevery patient needs / level of risk

Health promotion

and self-care

Suite of ICT services to improveefficiency of healthcare providers,empowering professionals andbetter managing patient demand byoffering new digital channels

DigitalHospital

Population HealthManagement

HealthcareProcesses

Automation

New delivery models

Consumer Digital Health Services

1

2

3 Empowering consumers with Self-care Programs and well-beingServices enabling prevention,greater self-control and peace ofmind

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Digital Hospital

IT & Cloud InfrastructureDatacenter Services and managed cloud

Workstation and productivity

Employee Communications

Health workstation

Fixed Mobile

Customized for each profile (HW+SW)

Comms Infrastructure

Managed connectivity

ProcessDigitalization

Electronic Health Record

Security

Information SecurityProfessional environment

Information points and dynamic marketing

Patient environment

Secure and efficient infrastructure

Physical and perimeter security

Energy efficiency

Energetic control

Diagnostics station

Imaging diagnosis station

TelemedicineCustomized based on clinical use

Hospital and departamentalinformation systems

ERP (HR, financial, ...)

Business Intelligence

Room Entertainment and TV

Multichannel Tools (appointment, tele-triage, patient portal, ...)

Improving quality of care and efficiency through innovative ICT services, and empowering professionals with the right information at the right place and at the right time

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Population Health Management

Reduction of hospital admissions & ER

Educationfor behaviouralchange

Prevention and self-care

Level of Risk

Population Distribution

1 - 2%

20-25%

75%

Medium

High

Low - Healthy

Web Portal

Biomedicaldevices

ClinicalHHRR

Validated protocols for multi-pathology

patients

+

+“Apps”

Providing each patient the right solution, tailored for his risk profile and condition

MultichannelPatient CRM

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Consumer Digital Health Services

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Telefonica´s key differentiators in e-Health

Large projects at the global level Evidence on the generated impact

Strategic agreements with eHealth "best-in class" partners

Global Product Capabilities & Innovation

TELEFONICA EHEALTH

*Proyecto iCOR: SOURCE: iCor Project with Parc de Salut Mar, Spain.http://clinicaltrials.gov/ct2/show/NCT01495078?term=iCor&rank=1

(*)

B2B Digital Hospital & Health IT

B2B PopulationHealth Management

B2C ConsumerDigital Health

Services

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Transforming Healthcare is a journey, there are barriers we still find….

Healthcare Regulation: Current legislation of most LATAM countries and the EU itself does notallow remote medical consultation and diagnostics (i.e.videoconference)

Evidence of real impact: Need to prove real health and cost-effective results with large scaleexperiences in terms of number of patients and multiple conditions

Complex Ecosystem: Change is only possible if stakeholders are efficiently aligned (managers,clinicians, patients)

Budget constraints: Clients need to find the investment “for changing”

Lack of interoperability: There is a variety of technologies for Medical Records andtelemonitoring systems implementations which are unable to interconnect due to notcompatible standards

Healthcare Regulation: Current legislation of most LATAM countries and the EU itself does notallow remote medical consultation and diagnostics (i.e.videoconference)

Evidence of real impact: Need to prove real health and cost-effective results with large scaleexperiences in terms of number of patients and multiple conditions

Complex Ecosystem: Change is only possible if stakeholders are efficiently aligned (managers,clinicians, patients)

Budget constraints: Clients need to find the investment “for changing”

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OUR E-HEALTH PROPOSAL

…We are changing people’s lives…

… but Telefónica is ready to make it

DIGITAL ERA

…It´s a magical moment…

BUILDING CAPABILITIES IN NEW DIGITAL SERVICES

…With more than 300M clients trusting in us…