Michail Angelov

Marketing and Business Development manager startups@nsn, Machine-to-Machine (M2M) Mobile German: +4915142605110 Mobile Bulgarian: +359878280021 E-Mail: michail.angelov @nsn.com Nokia Siemens Networks 90 Alt-Moabit, D-10559 Berlin Nokia Siemens Networks EOOD 118 Bulgaria, 1618 Sofia
2010 Nokia Siemens Networks

Agenda Goals
Share market insights Present NSN as the
partner in M2M domain Discuss Smart Energy Collect feedback
2010 Nokia Siemens Networks

M2M Marketplace Value Chain & Strategies Horizontal offerings Smart Energy for CSP Smart Energy for Utilities Discussion

Agenda

M2M Marketplace Value Chain & Strategies Horizontal offerings Smart Energy for CSP Smart Energy for Utilities Discussion

2010 Nokia Siemens Networks

A market on the move Development of smart things

Smart Objects Smart Devices Smart Phones

Customer Confidential

Nokia Siemens Networks

The next smart thing Smart objects will enter the stage
Overall 280 Bn smart services market in 2013 with an average growth rate of 33%*

Mass adoption of smart object technologies

Ubiquitous connectivity & global coverage

Regulation is paving the way

* Source Harbor Research Pervasive Internet & Smart Services Market Forecast (2010-2013)

Customer Confidential

Nokia Siemens Networks

Smart Metering: Annual Market Size

Market Value by regions
18 000 16 000

14 000

12 000

10 000

MEUR
8 000 6 000 4 000 2 000

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Russia & CIS India, China & East Asia 2017 2018 2019 2020 2021 2022

USA & Canada Sout America

Europe (Ex. Russia) Africa & Middle East

Mexico & Caribbean Southeast Asia & Oceania

Source: Poyry 2009

Smart Metering grows at CAGR of 9% to reach 7.2Bn in 2015 US & Europe are the main markets
6 Customer Confidential Nokia Siemens Networks

Agenda

M2M Marketplace Value Chain & Strategies Horizontal offerings Smart Energy for CSP Smart Energy for Utilities Discussion

2010 Nokia Siemens Networks

Where is the value?

Enterprise Application Application Enablement

Service Provider 202.9 B

Device Management
Provisioning Services Connectivity

VALUE

Systems Integration

Services Enablement Provider

11.2 B Managed Connectivity & Access Provider

Internet Enablement

39.5 B

Smart Objects
Chipsets Modules

23B
Source: Harbor Research, Pervasive internet & smart services market forecast, 2009

Customer Confidential

Nokia Siemens Networks

CSP Strategies
With the horizontal foundation, introducing new verticals, or reselling within the same vertical (i.e. eEnergy) is easy and cost effective. Consider the mode of delivery and operations and chose the appropriate method: buy/build a solution or use services.

Service Provider

Services Enablement Provider

Build a strong horizontal enablement layer, enhance the standard M2M offering with Telco assets and information, and create a wide variety of verticals on it as the market demands.

Managed Connectivity Provider

Managed connectivity is a MUST. Make sure that it is given as effectively as possible. Reach Operational Excellence combining assets for human and machine subscriptions. Widen the scope of offerings to encompass all that is possible in this layer to get the most value.

Access Provider

Provide M2M specific data plans, become a bitpipe. Some revenue, but not directly in the M2M business.

Customer Confidential

Nokia Siemens Networks

NSN assists service providers successfully realise their M2M business opportunities in three distinct areas

Energy

Logistics

Home

Security

Payment

Health

E2E Vertical Specific Solutions

Smart Objects Services Enablement Smart Objects Managed Connectivity

1 2 3 Hyper efficient managed connectivity for service providers Flexible smart object management, data processing and integration framework Customised fully managed vertical specific solutions and services
Nokia Siemens Networks

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Customer Confidential

Wide Variety of Customers served by NSN

iMetrik Canada Rental car fleet management solution
for an MVNO Solution based on NSN Subscriber Data Mgt

Telenor Connexion Fleet management and remote car

diagnostics for an international MVNO NSN Subscriber Data Management solution integrated into a multivendor environment as well as the highly valued support services

Non public Operator EMEA Location information enabled M2M

platform as well as printer preventive care mgmt solution NSN Subscriber Data Mgmt
Non public Operator EMEA On board unit - emergency call (eCall ) solution NSN Subscriber Data Mgmt and messaging system Solutions Non public Global CSP Lift, elevator and slide door mgmt service for an equipment supplier All IP connectivity solution, consulting and System Integration
11 Customer Confidential Nokia Siemens Networks

China Mobile Generic M2M platform design and

implementation including device and application integration Joint customer development project

Servus Net Value-added Telco-to-Wind application,

extracting data from various turbine vendors providing consolidate data into one unified view NSN Open Element Management Suite

Agenda

M2M Marketplace Value Chain & Strategies Horizontal offerings Smart Energy for CSP Smart Energy for Utilities Discussion

2010 Nokia Siemens Networks

Horizontal M2M Application Platform

Marker Drivers
Limited growth & high churn with existing customer base Smart Objects can provide favorable customer lifetime value Horizontal integration is key to rich M2M applications Regulation and fraud control driving successful uptake Differentiators: Establish one-stop-shop for service providers: integrating devices, networks, services & applications Cloud computing technology for low variable cost, flexibility & scalability Horizontal NSN M2M application platform supporting multi-device, multi-application & multi-tenant capabilities Experience in telco domain and partner with CSP Subscriber data integration, mass data analytics & processing Build partner ecosystem & business consulting

-- Enabling new high value business -13 Customer Confidential Nokia Siemens Networks

Cumulocity Meter Data Management Solution

Utilities O&M End Customer Service/Field Force Rating and Billing

Application Integration SDK

Data Aggregation Fault Management Configuration Management Performance Management

Mass Data Processing Tenant Management Analytics Security

Database

Meter Integration (O&M Agents Connectivity Aggregation

3G/4G Connectivity PCL Fixed

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Customer Confidential

Nokia Siemens Networks

M2M focus market entry

Key Market Entry Points:

Consumer environment M2M

15 Customer Confidential Nokia Siemens Networks

Transportation & Logistics M2M

Smart Object Services Enablement solution USN solution overview

Human Mobility from Mobile Networks USN Solution ITS applications enhanced with real-time road information

Mobile Networks Mobility Data Mediation

Subscribers Mobility Data No. of handsets Anonymous subscriber identities No. of passengers in vehicles Time of arrival

Human subscribers mobility data (e.g. anonymised subscriber ID, handover data)

Vehicle Mobility from OBU

Display Board Arrival Time On time/delayed

Object Mgmt.
(Object monitoring, data collection & processing)

Real-Time Traffic
Conditions

Taxi

Private Car

Traffic Speed on road networks Public Bus Continental Rastrear

OBU in vehicles reports data - OBU ID, GPS location, timestamp, number of passengers, etc

Floating Car Data (FCD) Server

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Customer Confidential

Nokia Siemens Networks

Agenda

M2M Marketplace Value Chain & Strategies Horizontal offerings Smart Energy for CSP Smart Energy for Utilities Discussion

2010 Nokia Siemens Networks

3 reasons why energy efficiency matters

Energy efficiency = OPEX efficiency
In mature markets, up to 10% of network OPEX is used on energy In developing markets, it can be from about 15% up to even 30% of networks OPEX for energy Fossil fuel prices remain volatile with high dependency

Lack of electricity supply

Networks are expanding into rural and suburban areas grid availability and/or quality is challenging 1.6bn people lack access to grid electricity (off-grid) An additional 1bn people have unreliable access (badgrid)
Average temperature is increasing annually Carbon emissions remain the second largest contributor to green house gas emissions after methane Ethical purchasing behavior among consumers becoming mainstream

Climate change

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Customer Confidential

Nokia Siemens Networks

Energy costs represent the 3rd/4th most significant OPEX item for mobile operators. Energy cost increases yearly.

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Customer Confidential

Nokia Siemens Networks

Smart Metering Drivers for CSP own usage

CSP -Huge consumers of energy -

2. Environmental Regulation save energy and resources (Government regulation)

1.

Own information:

3. OPEX Reduction

Problems: Verify green features impact Inflexibility due to NW topology Distribution Energy providers are not flexible

Smart Metering Automated & remote meter reading Statistical report Demand Forecast SLA monitoring

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Customer Confidential

Nokia Siemens Networks

Smart Meter Data Collection

Cumulocity Meter Control and Data Management

GPRS network

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Customer Confidential

Nokia Siemens Networks

Value Propositions

QoS

Traffic

Correlation

Smart energy metering can save a large electricity consumer up to 15% on their energy bill Correlation with FM, PM and planning parameter would allow stricter control of the Green features implemented in the network

Energy Consumption

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Customer Confidential

Nokia Siemens Networks

Nokia Siemens Networks Solution Components

NSN Green Energy Control NetAct with data collection using Cumulocity as Meter Data Management

GPRS / Ethernet / O&M-network

3rd party smart meter

Local data collection: Equipment needs to be installed at the sites to allow collection of data NSN Green Energy Control is used for complex sites, Smart Meters an option for standard sites
23 Customer Confidential Nokia Siemens Networks

DCN: Management system: Green Energy Control NetAct is already uses GPRS to send data installed at customers Smart Meters have Energy data multiple options (incl correlated with telco GPRS) data

Nokia Siemens Networks Green Energy Control

Opportunities for Telekom: reduce OPEX by remotely managing energy sources efficient control and monitoring of multiple energy sources charging & discharging cycles under control Up to 70% of OPEX savings Up to 50% reduction of carbon footprint

Interfaces all power sources and smartly manages performance remotely

24 Customer Confidential Nokia Siemens Networks

Agenda

M2M Marketplace Value Chain & Strategies Horizontal offerings Smart Energy for CSP Smart Energy for Utilities Discussion

2010 Nokia Siemens Networks

Smart Grid
Opportunity Space
Millions of endpoints Reasonable latency and security requirements Fertile vertical and horizontal application market Innovation spawned by deregulation

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Customer Confidential

Nokia Siemens Networks

Smart Metering Drivers for Utility provider

Utility Provider -Electricity

2. Environmental Regulation save energy and resources (Government regulation)

1. Revenue Protection (Fraud control)

3. Competition tariff flexibility (Smart homes/ cost cutting)

Smart Metering
-Automated & remote meter reading - Demand control - Dynamic tariff - Reduced fraud - Remote disconnect
27 Customer Confidential Nokia Siemens Networks

Utilities Business Case Inputs for Smart Metering

REVENUES OPEX SAVINGS 1.Remote comp. to manual 2.Increased reliability

1.Losses
1.Technical: known and measurable 2.Non-technical losses: variable
1.Illegal connections 2.Bypassing the meter 3.Influencing 4.Others

2.Bad Debt:
1.Subscribers not paying their bill

3.Differentiation:
1.Sales increase 2.Tariff flexibility

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Customer Confidential

Nokia Siemens Networks

Smart Object Applications in Smart Grid

Smart Meter Rating & Billing
Invoicing CRM ERP

Smart Grid Management

eMobility Authentication and Roaming

Site & grid management

(generation, distribution & consumption)

User database

Rating and Billing

User authentication

Meter data reading

M2M communication

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Customer Confidential

Nokia Siemens Networks

NSN Smart Meter Rating and Billing solution One-stop-Shop

ERP BSS
tariffing rating & billing prepaid
invoicing reports customer care

Operation

OSS
element, meter data & fraud management

smart metering solution

Care

Connectivity
radio access PLC DSL ...

Implementation Smart Meters

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Customer Confidential

Nokia Siemens Networks

NSN Smart Metering, Rating and Billing solution

CRM
Energy
Customer Care Customer Self Care

ERP system
Business Intelligence
Invoicing Reports

SOA interface server Prepaid or Postpaid billing

Tariff management Bad Debt management

Event history data

Customer data
Rating engine

Tariff data

FCAPS

Pre-processing

Object Management

Multi-Vendor/Industry/Provider Data Collection

Meter data management

Non-Technical Losses

Connectivity / Agregation

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Customer Confidential

Nokia Siemens Networks

Cumulocity FCAPS
Fault management
Object settings

Map display & table

Configuration Management Accounting

Object Connectivity quality
Histograms

Performance Security
Object Activation/Deactivation

Objects

Meters
Electricity/Gas/Water

Sensors Security/Enterprise

Devices Automation/.

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Customer Confidential

Nokia Siemens Networks

Cumulocity: Object Management

Object Interrogation & Control for the Focus Objects Pull more frequent readings & connectivity checks Connect/Disconnect on Payment balance
Rating and billing layer Mediation

Manual reading process

Regular push object readings (Initiated by the object)

Pull reading and object control

Objects

Simple Objects - No connectivity

Smart Objects

Focus Objects Low credit Poor connectivity

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Customer Confidential

Nokia Siemens Networks

Cumulocity: Meter Fraud Application

Non-technical loss location
Balanced Network analysis Tamper alarm forwarding & alarm activation Correlation with collected events from meters Service disconnects/average usage changes Analysis Balanced Network analysis

Alarm

Bad Debt
Hot billing Pre-paid
Connection layer

meters + allowances + non meters sites Comparison to Sub Station meter Meter events correlation Alarm threshold activation

<

Objects

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Customer Confidential

Nokia Siemens Networks

Cumulocity Multi-Vendor/Industry/Provider
Multiple Tenants
Multi-Language XML DLMS Multi-Speak SOAP
Energy Logistics Home Security Payment Health

Object data management Connection layer

Tenant Management Multi-Operator/Service provider Multi Country Multi-Industry

Over various connection methods: Fixed, Mobile, PLC,

Multiple Objects

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Customer Confidential

Nokia Siemens Networks

Payment Fraud control - Prepaid

ERP layer CRM
Please top up your Energy credit

Charge@Once

Creation of Prepaid account Top-up & decrement of credit SMS notification of low credit Disconnect processing Customer portal Prepaid Billing

Energy Service disconnected

Thankyou. Service reconnected

Cumulocity

Mediation, Meter alarm handling, Connect/Disconnect, Meter Portal

Connection layer

KWh

KWh

KWh

KWh

KWh

KWh

Objects
Time

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Customer Confidential

Nokia Siemens Networks

Summary: Smart Metering Delivery Model

Service Provider Market position and brand Existing customer base Channels to market Communications industry expertise Robust network infrastructured Nokia Siemens Networks Communications industry expertise Managed services / Cloud based platform / B-O-T Application & device integration Smart object management Data collection & management Partner & developer management Our Partners independent SW vendors Smart device makers Specific domain knowledge

Enterprise Software as a Service Cost effective solutions Participation in an application ecosystem with revenue diversification
37 Customer Confidential Nokia Siemens Networks

Large scale real life grid demonstration platform: Smart Grid in Kalasatama district of Helsinki
Elements of a carbon neutral power system Distributed renewable generation and market based demand response eMobility Energy efficient buildings and energy systems of the buildings adapting to the needs of the inhabitants Fault tolerant power grids Self-healing concept by a high level of grid automation Island mode operation of the distribution grid and distributed energy storages New end customer services New services for eMobility New market based energy services VPP concepts including solar, wind and demand response Energy storages

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Customer Confidential

Nokia Siemens Networks

DigiEcoCity Ltd Gongqing City

Solution overview
Nokia Siemens Networks will provide DigiEcoCity Ltd with consulting services for the planned digital eco-city in Gongqing in the Jiangxi Province of China. The partnership is aimed at developing Gongqing into a model city based on the principles of sustainable development that uses digital technology to provide a high-quality of life to its residents. The initial consulting project will focus on smart metering, energy management and ICT infrastructure.

The NSN China BSO and BD teams with Heikki Lassila (2nd from the left) at contract signing.

Customer quote
The Gongqing DigiEcoCity project will serve as the benchmark for future DigiEco Cities. The prime difference with other similar projects is incorporation of digital infrastructure design into the early phase of city planning. Nokia Siemens Networks will bring the much-needed knowledge in this area to help us realize our aim faster.
Heikki Lassila, VP of Operations DigiEcoCity Ltd

Benefits
DigiEcoCity is the first smart city developer in the world to incorporate Digital Infrastructure design into the early phase of city planning. NSN provides business model and architecture design input to the Digital part of the Gongqing City Regulatory Plan, which will be used as benchmark for other future DigiEcoCity projects. The consultancy project will also establish a good position for NSN to provide NWS/BSO infrastructure in the upcoming Gongqing City construction phase.

39

Customer Confidential

Nokia Siemens Networks

Customer Logo

NSN actvely driving the Smart Grid- initiatives

Nokia Siemens Networks is participating .the research program aiming at next generation smart grid power networks and management systems.

Fortum and Nokia Siemens Networks are doing a pilot to address key challenges in electric vehicles, especially identifying the easy user interfaces and billing options.

Nokia Siemens Networks is . participating EU program with the local distributed power generation sector, the manufacturers of local renewable sources and the distribution system operators aiming greener society.

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Customer Confidential

Nokia Siemens Networks

NSN eMobility solution Proof of concept projects

NSN in SmartWheels project in Germany NSN / Fortum project in Finland

consortium members (list not complete) :

regional utility e-charging equipment drive technology

Research

telco technology

associated member

smart wheels is a Leuchtturmprojekt funded by

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Customer Confidential

Nokia Siemens Networks

Thank You

Time for Questions and Answers

2010 Nokia Siemens Networks