METERING DEVICES AXIOMA METERING

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1 2018 METERING DEVICES AXIOMA METERING

2 About AXIOMA METERING, UAB Axioma Metering develops and manufactures ultrasonic heat, water accounting and data management devices. The company is one of the founders and leaders of ultrasound technology in the Baltic states. EMPLOYEES 170 EXPERIENCE SINCE 1992 QUALITY MANAGEMENT PRODUCTION INNOVATION AND R&D COMMERCIAL AND ADMINISTRATION

3 EXPERIENCE ULTRASONIC HEAT METERS DEVELOPMENT EXPERIENCE ULTRASONIC FLOW MEASUREMENT EXPERIENCE MEASURING WASTE WATER IN OPEN CHANNELS ULTRASONIC FLOW MEASUREMENT EXPERIENCE - BIG DIAMETER PIPES USING MULTIPATH ULTRASONIC MEASUREMENT ALGORITHMS ULTRASONIC FLOW MEASUREMENT EXPERIENCE MEASURING WASTE WATER IN PRESSURE PIPES ULTRASONIC BATTERY POWERED HEAT METERS DEVELOPMENT EXPERIENCE (GEN III) ULTRASONIC WATER METERS DEVELOPMENT EXPERIENCE (GEN IV) ULTRASONIC WATER METER IP68 SMART ULTRASONIC WATER METER

4 OUR FOCUS ULTRASONIC TECHNOLOGY QUALITY COMMITMENT EFFICIENCY USING TOC TAILOR-MADE SOLUTIONS LONG-TERM COOPERATION

5 REVENUE, MLN. EUR

6 OUR MARKET

7 IN PROGRESS

8 KAUNAS FREE ECONOMIC ZONE (FEZ) LITHUANIA AREA OF 16,000 SQUARE METRES 5,500 SQUARE METRES OF PRODUCTION FACILITIES 170 EMPLOYEES ANNUAL CAPACITY OF 1 MILLION WATER METERS AND 300,000 HEAT METERS MODERN AND ROBOTIZED NEW FACTORY

9 COMPOSITE BODY DN15 / DN20 IP68 INTEGRATED RADIO COMMUNICATION LORA OPTION DYNAMIC RANGE: R400/R800 PULSE OUTPUTS / M-BUS OPTION NEW SMART ULTRASONIC WATER METER - ESTIMATED PRODUCTION Q1/2019 T30/ T90

10 START UP and Milestones of W pcs. new SW and HW With MID, field tests DN20-105mm, 110mm, 130mm T1 series DN20 105mm, 110mm, 130 mm T2 series 500 pcs. Pre-ORDERED quantities; Dn15/Dn20, 110mm/130mm < 200pcs. field tests, and 100pcs. MID approval tests. Tik DN15, 110mm 500 pcs. new SW and HW release. No MID DN15, 110mm DN15, 110mm pcs Test with DN15, 110 mm DN15 and DN mm, DN and 190 mm; Real field tests and series production MID approval (primary modifications) till ; DN15 80, 110 mm; DN20 105, 110, 130 mm MID approval (extra modifications) DN15 165, 170 mm; DN20 165, 170, 190 mm

11 Hygiene certificates - drinking water approvals (documents, tests, approving and ect. ) ACS KIWA WRAS KTW ACS, KIWA ir WRAS verification based on DN15, 80mm, 105mm and 110mm modifications. KTW a bit different and longer process, but tackling certificate as well; Plans to get till

12 MARKETS; REQUIREMENTS MARKET/ REGION DN, LENGTHS CERTIFICATE NEED TO HAVE LAUNCHING TO MARKET DATE UK DN mm, DN mm MID WRAS (with WRAS) France DN15 110, 170 mm DN20 130, 190 mm MID ACS 110 / 130 mm / 190 mm Benelux DN15 110, 165 mm DN20 130, 165 mm MID KIWA 110 / 130 mm / 170 / 190 mm Scandinavia DN15 105, 110 mm DN20 105, 130 mm MID KIWA Germany DN mm, DN mm MID KTW Lithuania, CEE DN15 80, 110 mm DN mm MID DN DN Persian Gulf countries DN mm DN20 130, 165 mm MID OIML DN DN20, 130 mm DN20, 165 mm Far East, India DN mm DN mm MID OIML DN DN USA USA - Lenghts of flow meters and sizes TBD. Firmware modification by RF. 2019

13 High dynamic range (R400/R 800), accuracy and precision of flow measuring. (Counts every drop = Sensitive and accurate in low flows, down to 1l/h ) Long-term measurement stability and reliability. Technical features, functionality and advantages of W1 Ultrasonic measuring technology W1 New generation patented design Size matters Easy to deploy Battery lifetime 16+ years Composite body environmental friendly 9 digits, multi-line LCD Measurement units: m3-m3/h. Gal-GPM. ft3-ft3/h Digital technological evolution Variety of communication possibilities Ready for IoT Proven in pilot projects with Lora technology Alerts and remote reading = real time data incl.: 1-3 days w/standard transmission, low battery alert, manipulation warning, burst-, leakage and low temperature alerts. Ready for OMS (Wmbus) Compatible and friendly with different data loggers and softwares. Meter parametrisation and archive reading via NFC or optical interface

14 Targeting Stage Leakage Burst Freezing Pipes Debts and vulnerable clients Operational costs (service) Digital performance Retail business sector Solution/ Model W1 W1 W1 W1 W1 W1 W1 Function/Type Leakage detection Burst detection Low temperature detection Real time data daily 99% Inline meter IoT solution IoT solution Step 1 Leakage alert Burst alert Freezing alert Data base of clients Deploy inline meters inside of building Lora network Lora network Step 2 Immediate reaction Immediate reaction Immediate reaction Analytics of chosen customers Data cloud and APPs Data cloud and APPs; Analytics and forecasting of consumption Value / Benefit 1 Not wasting drinking water Not wasting drinking water Forecasting of possible issues Debt regulation; Lower costs for service; Analytics and actions based on real time data. Machine learning / Automation Access to data for transparency, API access and operational alerts. Value / Benefit 2 Organizing service; not wasting time Organizing service; not wasting time Saving costs and acting avoid problems Tariffs for the right period or consumption Easier to make connection; Saving time Responding to customers demand of high technology Make billing easier and predictable. Achievements Reduce leakages; customers want us to reduce our level of leakage as a priority; Avoid penalties (123k) Low % of burst; Reduce penalties or complaints Helps maintain your assets in the best possible health Differentiating between customers who can t pay and those who won t pay, from leveraging data Increase number of metered clients up towards 95% Self service level HIGH Invoice clients in short periods; Following best practices in retail business Indicator / result From ~22 to 17% (DEPENDS ON METERED CLIENT N SOFT LEVEL) Health of asset; No complains (DEPENDS ON SOFT LEVEL) Lower service cost for repairing (DEPENDS ON SOFT LEVEL) Reduce bad debts From 22mln. To 19 mln. Reduce cost for first time connection (from ~750 to 350 /unit.) Reducing direct contacts with customers on phone. Predictability for end-customer. Simplified billing and services.

15 Step by Step BUSINESS MODEL with AXIOMA METERING Identify KPIs and target results Finalizing and discussion about One supply chain program Pilot project initiation Validate KPIs and results of pilot project Software development, continuous improvement feedback loop

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