SMaaS Launch | January 2016 | Page 1

Smart Metering as a service

Pierre fitzgeraldGlobal Utility Lead, North America

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Utilities

Public safety

Transport

Industries in transformation

Industry & Society› Focus on industries that are

transforming using information communication technology

› New business line established 2014› Based on existing offerings› Proven customer track record

65% of smart city investments in Utility, Transport and Safety

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CAGR 2015 – 2018: 16 – 18%

Market outlook

This slide contains forward-looking statements. Actual result may be materially different.

Smart metering, Smart grid communication Grid controlAsset & Critical infrastructure managementCustomer and Revenue management

ICT infra for road / railTransport transactionsTraffic managementConnected vehicle, connected vessel

First responder networks (PS-LTE)Disaster and Emergency managementCritical Infrastructure protectionStrategic government networks

Addressable Market

BUSD

20142013

63

39

2015 2018

36%

8%

CAGR’15-’18

I&SPublic Safety

TransportUtilities

7%

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A changing utilities arena

Integration of renewables

Aging infrastructure &

workforce

Sustainability Consumer experiences

Newtechnologies

Deregulated markets,

increased competition

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What utilities need to do

Innovate for better customer

experience

New eco-systems and

business models

2 3Utilize ICT as an

enabler

1

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31,1% will have some level of third-party management by 2023*

Utilities can:› Focus on core business

› Secure continuous improvementin service quality

› Release capacity for innovation

* Navigant Research, “Smart Grid as a Service “, Q4 2014

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Smart Metering As A Service

Specific service functions

IT & data functions

Communication management

E2E Business Process OutsourcingOrder to Service | Case to Resolve | Meter to Cash

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E2E Business Process Outsourcing

DRIVE COST EFFICIENCIES

Operationalefficiency

Reduced complexity

Reduced investments

BENEFITS BEYONDCOST

Improved quality& user experience

Time to market & differentiation

20% operative cost savings 60% reduced fault correction time

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Energy utilities need a reliable way to collect smart meter data: fast, efficient and with small upfront investments. To accomplish this, utilities are more and more outsourcing smart meter operations.

As prime, sub-prime or systems integrator, Ericsson supplies, deploys and manages smart metering systems and operations as a managed service to more than 25 energy utilities in Northern Europe.

MASTERING COMPLEXITY

SYNERGY CIRCLE

LEVERAGINGSCALE

SUPERIOREXPERIENCE

Smart metering as a serviceNorthern Europe, 2 million meters for >25 customers

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smart Metering as a ServiceCustomer operations in Northern Europe

SOLUTION› Reliable meter data collection and

processing

› Metering devices management

› Dispatching, field services and connectivity management

› Transparent governance and change management process

RESULT› Modernization leap

› Optimization of system architecture and processes

› 20% reduced operational cost

› Secured evolution of the solution, competence and regulatory compliance

CHALLENGE› Utilities need efficient smart

metering operations and fast introduction of new services

› Large spread of legacy systems, communication technologies and meter vendors

› Operate multi utility smart meter reading in wide geographical areas

Reliable and efficient metering data operation

Efficient meter reading operations

Outsourced business process

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Our global utilities experience

>42MILLION METERS

World’slargest

First 4G (LTE) NETWORK FOR A UTILITY DEPLOYED

GRID EDGE NODE DEPLOYMENT