December Investor Presentation

Transcription

1 December 2014 Investor Presentation

2 Forward-Looking Statements This document contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding the momentum in Silver Spring Networks business, future growth and future financial results, including our long term financial model and outlook for the fourth quarter Statements including words such as "anticipate", "believe", "estimate" or "expect" and statements in the future tense or about future events are forward-looking statements. These forward-looking statements are preliminary estimates and expectations based on current information and are subject to business and economic risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Important factors that could cause results to differ materially from the statements herein include: timing around customer decisions and deployment pace; dependence on a limited number of customers and key suppliers; general economic risks; specific economic risks in different geographies and among different industries; failure to maintain or increase renewals and increase business from existing customers; uncertainties around continued success in sales growth and market share gains; lengthy sales cycles with no assurances that a prospective customer will select Silver Spring s products and services; amounts included in backlog may not result in billings or revenue; adverse publicity about, or consumer or political opposition to, the smart grid; security breaches involving smart grid products or services; the ability to integrate technology into third-party devices and Silver Spring s relationship with third-party manufacturers; execution risks related to new product introductions and innovation; the ability to attract and retain personnel, including members of Silver Spring s management team; changes in strategy; technological changes that make Silver Spring s products and services less competitive; competition, particularly from larger companies with more resources than Silver Spring; international business uncertainties; the ability to acquire and integrate other businesses; and other risk factors set forth from time to time in Silver Spring s filings with the SEC, copies of which are available free of charge at the SEC s website at All forward-looking statements in this document reflect Silver Spring s expectations only as of the date hereof. Silver Spring undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking statements in this document in light of new information or future events Silver Spring Networks

3 Our Company We are the platform for the next generation smart grid networks, smart cities and connected infrastructure We are making the internet-of-things a reality for smart infrastructure 3

4 The Leader in Smart Infrastructure A decade of innovation and global success A market leader with over 20M homes and businesses networked Proven multi-application network for smart grid and smart city applications Strong value proposition for our customers Broad ecosystem with 100+ partners 137 granted and pending patents in the US Smart grid product of the year Gen4 Smart grid product of the year SilverLink American Tech award Streetlights 4

5 We Connect and Empower a Multi-App Network Platform Applications App Store ISV Utility SSN Silver Spring Network Environment SilverLink / Data Platform Network Control Software IPv6 Network Bridge Distributed Intelligence Communication modules and Access points 5

6 Device Choice and Applications Breadth Advanced Metering Distribution Automation Demand Side Management Customer Engagement Insights & Analytics Smart Infrastructure Electricity Fault Location, Isolation and Service Restoration Direct Load Control Customer IQ SilverLink Insights Service Street Lights Gas Voltage Optimization Price Response Marketing Services Traffic Control Water Network Monitoring Energy Efficiency Noise Sensors Non-Technical Loss PV & Renewable Integration Environment Sensors Prepay Silver Spring Network Environment SilverLink / Data Platform Network Control Software IPv6 Network 6

7 Net Benefits ($/endpoint/year) Significant Opportunity to Drive Value $60 $50 $40 $10.0 $30 $16.0 $20 $5.1 $47.6 $10 $4.2 $7.6 0 $1.3 $1.5 $3.0 ($10) ($15.0) $7.0 $6.9 ($20) Network Cost Meter Reading Remote Connect Billing Outage Demand Response Dynamic Pricing Energy Efficiency Theft Distribution Detection Automation CVR Net Benefits Source: Silver Spring Networks estimates. Net benefits calculated based on annualized benefits and costs. 7

8 Use Of Our Network Platform Is Expanding Devices Billions Internet of Things 100s of Millions Smart City Infrastructure Networks 10s of Millions Smart Grid Networks Time Open, standards-based, secure, reliable network platform 8

9 Smart City Infrastructure Vision Smart Streets Intelligent Traffic Control More Control, Less Energy, More Security, Less Traffic, More Services, Less Pollution, More Decisions in Less Time EV Charging Infrastructure City Info Panels Advertising Panels City Communication Networks Public Lighting Cabinets Video Surveillance Sensors Pollution, Water Meters, Noise 9

10 Value Proposition for Customers Advanced Metering Infrastructure 61 million meter reads avoided per year at PG&E 1.4 million remote connects and disconnects to date at PG&E 99.9% remote meter reads at FPL Estimated bills reduced over 90% at PG&E Demand Response Avoid building 2 peaker plants (~$363M investment) at OG&E Shed 112MW of load at OG&E in 2013 Enrolled customers saved average of $150/household (98% of saved money) Deployed one of the world s largest networked DR programs Distribution Automation Resolution time of 42k customer-side outages cut from ~2 hours to ~2 minutes 500K outages avoided by ComEd saves $82M 2.9% energy savings with voltage optimization at AEP Smart City Infrastructure Improvement in public safety, energy usage and cost Saves over 50% of cities lighting energy costs Up to 10% crime reduction Sources: Smart Grid Collaborative; PG&E; AEP; FPL; OG&E Smart Study Together, March 2011; Municipal Solid State Lighting Consortium LED Workshop (April 2012); AEP Ohio gridsmart phase 2 filing; Smart Grid Consumer Collaborative Benefits Analysis 10

11 Delivered Endpoints (MM) Proven Success at the Leading Utilities Street Light AMI

12 Customer Engagement / Energy Efficiency Leverage Smart Grid Data to Enhance Customer Experience First Full Deployment: 2.9 million Consumers Energy Residential and Commercial customers CustomerIQ App Suite, Powered by the SilverLink Sensor Network Future Analytics Applications Customer Engagement Load Disaggregation Demand Side Management Customer Care and Outreach Multi-channel, integrated engagement platform Open eco-system for innovation Near-real time information on energy usage and management Operational Network Management Meter Asset Management Grid Analytics 12

13 Strong Fundamentals 20MM Delivered Endpoints 28M Awarded including 2M Awarded in 1H 2014 $0.9 Billion Backlog (1) +$335M R&D Invested and 137 Granted and Pending Patents (2) Cumulative Endpoints Over Time (MM) Non-GAAP Revenue Over Time ($MM) CAGR: 49% CAGR: 15% $196 $261 $236 $304 $ A 2010A 2011A 2012A 2013A (1) Backlog as of Dec. 31, (2) Patents and R&D as of September 30, Non-GAAP financial measures. 2009A 2010A 2011A 2012A 2013A 13

14 Our Business Model Every Home & Business We Network Increases Our Value YTD Q3 14 Results Endpoint Monetization Total Endpoints (M) % $2-$3/ Year (1) 47 $ Pilot +26% Products (2) : ~$ Services: ~$ Backlog (24%) Delivered Time Endpoint is a connected home or business. (1) Based on the current model and delivered cumulative endpoints. (2) Based on the current model and new endpoints delivered within the year. 14

15 Diversifying the Business Non-GAAP Revenue % of Total 2009A YTD Q3 14 By Type: Product 91% Managed & SaaS Services 4% Professional Services 5% 70% 15% 15% By Solution: Network / AMI 100% New Solutions 0% 85% 15% By Geography: U.S. 94% International 6% 89% 11% 15

16 Summary Strategically positioned as a market leader and trusted partner Platform for next generation networks smart grid, smart cities, IoT Leveraging core technology DA, DSM, Street lights and SilverLink Record backlog and robust pipeline Attractive business model 16

17 December 2014 Investor Presentation