UKTI HostedSmart Energy Seminar

Warsaw

12th November, 2013

Smart metering...Smart people...Smart approach

Introduction

Cathal GriffinVP Global Sales

Smart Metering Systems plc

Glasgow, Scotland

cgriffin@sms-plc.com

+44 (0)7580 425826

Smart metering...Smart people...Smart approach

Agenda

• SMS Business Overview

• Market expectations of Automated Meter

Reading (AMR) solutions

• ADM History

• ADM Automatic Meter Reading Solution

• Service Delivery

• Other AMR Solutions

• Q&A

Smart metering...Smart people...Smart approach

• Established in 1995

• Headquarters in Glasgow, Scotland

• FY 2012 Turnover: £21.0M (103M PLN)• Interim 2013: Revenue increase over same period in 2012 of 42%

• FY 2012 Gross Profit: £13.3M (65.2M PLN), 63% of Turnover• Interim 2013: Gross Profit up 40% over the same period in 2012

• Recurring meter asset rental revenues increased 40% to £9.3M (45.6M PLN)

• FY 2012 adjusted EBIDA of £9.0M (44.1M PLN)• Up from £5.7M (27.9M PLN) in FY11 or 59% increase

SMS Business Overview

Smart metering...Smart people...Smart approach

• SMS market capitalisation: £275M (1,324M PLN) at 31 October, 2013

• Share price bucking market trends; increase from 76p to 329p, increase of >333% in 28 months

• £115M (565M PLN) available for capital MAP investments

SMS Business Overview

Smart metering...Smart people...Smart approach

Market Expectations of AMR solutions

• Device and data requirements• Identify a robust solution to meet governmental, environmental, economical and

commercial pre-requisites• Accelerated deployment of a AMR solution by simple attachment to existing

meter assets reducing disruption to end consumers• Solution to enable organisations to meet compliance regulations & requirements• Proven solution with reference customers

• Business benefits• To maximise sales opportunities, through new customer acquisition ,maximise

customer retention and reduce ‘back office’ costs• Achieve revenue growth and cost reduction targets during current and future

financial years• Improved customer service, improved customer satisfaction & facilitate new

customer acquisition

Smart metering...Smart people...Smart approach

Market Expectations of AMR solutions

AMR solution that is rapid and simple to deploy, robust, achieves immediaterequirements, delivers findings via web portal to utility supplier and to

customers, delivers measurable & tangible business results such as reducedcosts, improved customer acquisition, reduced customer attrition

VS

Solutions based on non-standards,excessive costs, uncertainty in terms

of timescales, effectiveness,indirect costs

Smart metering...Smart people...Smart approach

As a strategic £152B / 745B PLN existing customer engaged SMS to conduct a field test of 3 AMRs shortlisted as part of a detailed procurement process with 200 of their customers

• SMS terminated the field tests after only 20 units deployed due to high commissioning failure rates. The termination report concluded excessive failure rates were caused by:

• Unacceptable number of on-site commissioning steps• One of the three units on-site commissioning depended on a

successful pre-commissioning process undertaken prior to dispatch to site.

• All devices required a pc on site to commission.

• Additional concern of Total Gas & Power was the high unit cost of all 3 units.

ADM – History

Smart metering...Smart people...Smart approach

• Following the failed field tests SMS were asked by the company to work with them to design and develop a suitable device to meet their business and regulatory requirements.

• A selection of design requirements were to:• Meet all regulatory requirements• Meet various additional corporate requirements such as

• Simple single commissioning process, <30 seconds• Robust design• Achieve a competitive and suitable price point• Deliver 48 x ½ hourly reads delivered daily at day +1 via GPRS

• Optional ¼ hourly reads delivered up to 4 x in-day via GPRS• Unit to have a battery life of 10+ years and data storage of 30

days• Develop a web portal such as to allow customers to access

consumption data on a hierarchical basis

ADM – History (cont.)

Smart metering...Smart people...Smart approach

• Customer configurable exception alerts

• 10+ year battery life with standard configuration

• Multi-level, hierarchical customer access to Data Management System via web portal

• ADM transmits data over existing GPRS networks via GSM providers

• ADM water model is IP68 certified. All ADM units are atmospherically certified to zone 0, the highest certification level

• Data also available as a .csv file if required to import into existing internal systems or to a selected managed service provider

ADM Automatic Meter Reading Solution

Smart metering...Smart people...Smart approach

SLA Weekly and Monthly Reporting

Service Delivery

Smart metering...Smart people...Smart approach

Other AMR solutions

Smart metering...Smart people...Smart approach

Elster DL210, DL220 and DL 240 (36 programming steps to commission)

(?)

Other AMR solutions

Smart metering...Smart people...Smart approach

Other AMR solutions

Smart metering...Smart people...Smart approach

Other AMR solutions

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Smart metering...Smart people...Smart approach

Other AMR solutions

Smart metering...Smart people...Smart approach

Conclusion from all SMS ADM customers

ADM AMR from SMS is:• Fast and simple to install and

commission• Robust (ZERO failures to date)• Proven• Very cost effective

Other AMR solutions

Smart metering...Smart people...Smart approach

Smart Metering Systems plc

Questions &

Answers