Smart Grid Business Exec Summary 2010 Q3 v3 

Joachim Janssen – CEO

David Gosch – Bus Dev

IAPfinds‘sweetspot’inU.S.SmartGridEnterprise s/w company providing Network Management solutions, Telecom focused

$ K

•  Vital platform technology created •  Ready to Configure Solutions •  Deployment experience •  Great customer references

(1,000)

‐

1,000

2,000

3,000

4,000

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09

Revenue($K)

P&L($K)

IAPfinds‘sweetspot’inU.S.SmartGridEnterprise s/w company providing Network Management solutions, Telecom focused

IAPsolutions will leverage existing technology to provide the critical layer of management and real-time intelligence to enable massive scale Smart Grid roll-out and benefits

$900M U.S. TAM

‐$5,000

$0

$5,000

$10,000

$15,000

$20,000

$25,000

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Revenue($K)

P&L($K)

$ K

HighLevelEvidence–UpcomingPriorityforMajorUYliYes

•  “Achieving an Integrated NOC is imperative, and major priority for upcoming year. No known solutions exist, as it requires a truly distributed CEP approach”

Enernex PG&E Cisco Duke CMS SCE SDG&E Enernex

Results of one-on-one discussions Gartner Gartner

•  “IAP Integrated NMS approach is valid, but early.” U.S. TAM estimate of $900M

TheSmartGrid‐“UYlityCommsView”

>100XExisYngTelecomNetworks

AnewInternetof

THINGS,M2M

DistributedmanagementlayerREQUIRED

Reduced mgmt traffic < 1%

Complete visility, faster resolutions

IAP Distributed Network Management 

•  Network size (>100X) 

•  CriJcal availability / security 

•  M2M devices not people 

•  Interoperability ‐ CombinaJon of technologies 

RapidlyMovingSpace–pastweek

With Arch Rock Purchase, Cisco Takes Aim at Silver Spring Networks Cisco is rolling out the wallet to transform its smart grid strategy into tangible product offerings.

Smart Grid AMI Networking: Phase II Cisco, Arch Rock, Itron, Silver Spring Networks, and the next steps for AMI networking.

IAP - NMS

centralized

IAP - IM IAP - IM IAP - IM

distributed

IAP:Highly‐DistributedNMSo  IntelligentMediaYonAgent(IMA)

providesheterogeneousconfiguraYon/monitoring

o  reducedMNtraffico  onlyacYonableinformaYon

transportedupstream

Concentrators,

substations, pole top NE

’s H

eterogeneous Netw

orks

SelltoWhom(U.S. prospects) 

•  OEM and SI Partners –  Cisco - Elster - Accenture - Telvent

•  Utility Customers (3,000 total)

•  Telecom Carriers –  Verizon - AT&T - Sprint

Major  Major, cont.  Medium  Small 

DTEEnergy ConsumersEnergy ? ?

PG&E SouthernCalEdison

Oncor AEP

ProgressEnergy Pepco

DukeEnergy FloridaP&L

SanDiegoG&E

After establishing solutions: •  Canada •  Europe •  Australia •  Japan •  China •  India

Who’sHere?Major   Smart 

Grid CEP*  Distributed* 

IBM X X X

HP X

CA X X

EMC X x x

SolarWinds X

GridNet X X

Ambient X X

IAP  x  X  X 

technology

SellWhat?Major Utility Customer Deal – 10 year outlook

IAP current revenue balance

StatusandOutlook:•  IAP Platform and NMS applications

–  Very complete with major deployments, high-end references

–  Experience for projects and deployment very high •  Solutions for Smart Grid use cases

–  Just engaging now, as most Utilities are still in requirements mode

–  Specific communication adapters need to be developed and tested properly

InvestmenttoPenetrateSGMarket Key coverage and preparation:

–  Solution tailoring for Smart Grid use cases –  Communication adapter development for specific

networks –  Cash flow to engage in POC and Pilots –  Incorporate in U.S. –  General expenses –  Technical support –  Marcom

InternalProfile

•  100% employee owned – 9 shareholders, self financed

•  Mature product and solutions base with major customer references

•  Strong operations, Conservatively run •  30 employees (29 technical) plus

10-30 contractor pool •  Flat organization

cool vendor 2010

ManagementProfilesJoachim Janssen, General Director, is a Telecommunications and Electronics Engineer from the University Arnhem (Holland). Started his professional career at AT&T in Holland. Then hired by Telefónica and came to Spain to lead all management systems efforts.

Mauricio Petidier, Commercial Director, worked for five years in the R&D department of Telefónica as head of products. Afterwards at ONO, the leading cable provider in Spain, he was head of Network Management and contributed to establishing the bases of its current CSP offering. Petidier is a telecommunications engineer from the Polytechnics University in Madrid.

Alvaro Paricio, Technical Director, is an engineer in Telecommunications and a specialist in Strategic TIC Management from the Polytechnics University in Madrid. He actively participated in the development of the aviation systems of the Airbus A-230/340 program, then joined Telefónica Research and Development as a Solutions architect and project manager for various OSS systems. He is also an associate professor at the University in Alcalá, where he currently finishes his doctoral thesis.

David Gosch, Business Development, has been creating solutions in emerging markets areas, utilizing electronics and s/w, for almost 20 years. With an Electrical and Computer Engineering degree from the University of Wisconsin, he specializes in embedded electronics and real-time control. He created almost $50M in new business as VP Sales & Marketing for Tenta Technology, acquired by MKS Instruments.

Background 

SWOT

Strengths  Weaknesses 

•  Onlytrulydistributed,CEParchitecture

•  Mature,scalableplaoorm•  DirectTelecomexperience

•  Verysmall,unknown•  NewtoSGandU.S.A.•  CashflowlimitaYons•  Projectresourcelimited

OpportuniJes  Threats 

•  Cisco partnership –fundingandprospectaccessworldwide

•  Earlyadopter,majorUYliYesengaging

•  SIrelaYonships–prospectaccess

•  Longrunwayrequiresfunds•  Noiselevelarounddecision

makersishigh•  Spanisheconomy–conYnued

crisis•  ComplicatedvendoriniYalizaYon

atUYliYes

CustomerAcquisiYon

OwnershipStructure

CurrentfocusonnewsoluYonsilos

Cisco

CiscoCisco

Cisco

SSN

SSN

SSNSSN

SSN

ReferenceHighlights

Telecommunications

Public Infrastructure

Systems Integrators

SoluYonsStructure

•  Solutions are Management Suites, created from mature General Products, based upon IAPplatform

•  General Products: o  Provision o  Monitoring o  Operation o  Billing

•  IAPplatform, a distributed Complex Event Processing platform

•  Complete Multi-vendor, Multi-technology approach