5G for business: the rise of wireless Hakan Cervell CEO, Ericsson-LG 5G Vertical Summit 2020 5G-enabled revenue potential across 10 industries Global service creator, 5G for business addressable market, 2030 share, 2020-2030 CAGR Source: Ericsson and Arthur D. Little Ericsson Internal | 2018-02-21 The rise of wireless Wireless $1 trillion 4.3 billion 1 yr vs. 2 mo Fixed 4,500 Size of smart Number of wireless Time to reconfigure an 4,000 manufacturing market connections in smart automotive factory – 3,500 by 2030 factories by 2030 wired vs wireless 3,000 2,500 2,000 50% Of top 200 retail 1,500 companies use robotics 1,000 for delivery and order fulfillment 500 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Global Digital Factory connections, 2016 to 2030 Source: ABI Research Ericsson Internal | 2018-02-21 Unlock digital value of wireless communication $1 $ 4 000 000 USD per Annual value for square meter per day 10 000 m² factory 1. Reduced 2. Increased 3. New digital waste flexibility services Reduced waste by digital Savings from limiting OEE increase with more e.g. calibrating a tool just in time. cabling cost with flexible re- uptime, automation efficiency balancing of factory floor and new services Ericsson Internal | 2018-02-21 Why industries invest in cellular dedicated networks Limited bandwidth, lacking Automation to improve support for data/video productivity and quality Communication Industry Worker augmentation with modernization digitalization Improve worker safety AR, real-time remote expertise and environment - - Existing New market market High operating costs Generate new revenues of legacy technologies and new business models Ericsson Internal | 2018-02-21 Local private networks Technical customer needs — High availability and resiliency Manufacturing — Low latency, high throughput 1k Logistics supply (local) — High security for sensitive data Enterprises — Advanced QoS features — Additional coverage and/or capacity 100 Oil & Gas Mining — Additional services, such as PTT Ports Airports Networks Dedicated Utilities Public Safety Solution customer needs 10 Rail Number of networks per country networks of Number Utilities Existing MNO Networks — Pre-packaged and pre-integrated — Manageable at scale — Globally consistent, common SLAs 10 100 1k 10k — Eco system of devices and applications Size of network in # of sites Local Wide area area Ericsson Internal | 2018-02-21 Enterprise needs - why cellular? – Licensed spectrum Reliability and low latency – Quality of Service – Full or partial on-premises system Flexible Deployment – Data connectivity only or plus value added services – Cellular based security Security – Secure device authentication – Various spectrum and bandwidth Capacity & Coverage – Indoors and outdoors coverage Thriving Ecosystem and – Evolving ecosystem Future Proof solution – Evolution to 5G – 3GPP global standards Seamless Mobility – Interoperability with commercial mobile networks Industry 4.0 wireless ecosystem OEMs Independent software vendors Applications ecosystem Application enablement Platforms Manufacturing Execution Systems (MES) Enterprise Resource planning System (ERP) Cellular Network 4G /5G (public, sliced, Private Network, Industry Connect) Modules System Integrators Machinery Cellular Current loop Sensors Gateways Ethernet Actuators RS232 Handhelds Analog I/O Wearables Digital I/O Wired via Gateway or Integrated Module, grid power Integrated with Cellular Module or Chipset, battery Device partners Gateways Sensors Actuators Handhelds Wearables Ericsson Internal | 2018-02-21 ericsson.com/industry4.0 Smart connectivity – top references SKF ABB Scania Ericsson Boliden ÅF 5G Enabled Manufacturing 5G Industry 4.0 Lab Smart Production lab 5G Test Factory Industrial Mining 5G/LTE Industry 4.0 transformation Center Connected Industry Volvo CE & Telia Industry 4.0 Lab Remote control industrial Ambra Sibur Petrochemical & MTS Connected Mine Connected production plant Honeywell & GE Sibur Petrochemical & MTS 5GI2 Connected production plant Ericsson 5G Smart factory Robotec / China Mobile Smart manufacturing US Smart Production lab eGo & Vodafone Ericsson Manufacturing Automotive production Automation/Robotics Telefonica China Mobile Industry 4.0 private Network NB IoT and Predictive Daimler / Mercedes Benz Ericsson Manufacturing Smart Factory with Telefonica 40+ VR / AR tests Volvo Trucks Industry 4.0 Telstra 5GEM 2 References Connected Mine 20+ installations Bosch Comau Osram & DT Audi Coordinated Industry Com. Industry Connect testing 20+proof point Smart Manufacturing Campus Network Connected Production Low latency & high reliability Ericsson Internal | 2018-02-21 Dedicated Networks in a nutshell Stable — Reliable wireless connectivity enables more Secure automation to increase efficiency, productivity, accuracy. Simple — Dedicated cellular connectivity provides greater reliability and device density, predictable latency and robust security. — Ericsson Dedicated Networks brings off-the-shelf or tailormade solutions for industrial environments. — Our unique ecosystem of over 50 hardware, software, strategic and advisory partners shortens the time of piloting, resulting in savings of time and money. Ericsson Internal | 2018-02-21 .