1. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1 Howard Charney The Internet of Everything SVP, Office of the Chairman and CEO June 11, 2014 Potential for IT Innovation in the Energy Sector

2. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2 ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2 ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2 The Big Picture

3. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3 Internet of Things Electrification of energy Convergence of networks Population growth Global urbanization Widening income gaps Energy independence Increasing cost of electricity Outdated energy regulation Technology Socio- economic Policy Global Megatrends Affecting Energy

4. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4 A Structural Transformation Is Underway COMMUNICATIONSHEALTHCAREGOVERNMENT EDUCATIONFINANCEENERGY RETAIL MANUFACTURING

5. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5 People to Machine (P2M) People to People (P2P) Machine to Machine (M2M) People Things Data Process Business HomeMobile IoE is the networked connection of people, data, process, and things The Internet of Everything

6. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6 Source: Cisco IBSG white paper “The Internet of Things,” April 2011 50 20102015 2020 0 40 30 20 10 Billions (devices) 25 12.5 7.2 6.8 7.6 Inflection Point World Population

7. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7 Market Insights Global M2M Device Connections Utilities is the fastest-growing sector with 67% of overall M2M device connections by 2023 – a 39% CAGR At the end of 2013, there were 0.2B device connections worldwide – this will increase to 2.2B by 2023 – a 29% CAGR over 10 years Global M2M Device Connections by Sector, 2013–2023 (in billions) Source: Analysys Mason, March 2014

8. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8 ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8 ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8 How IoE Changes the Game

9. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9 Smart Grid $757B of Value at Stake Connecting sensing, measurement, and controls in real time improves reliability, cost, and alignment between supply and demandToday Current state 2022 Potential with IoE Vulnerability to faults Automated detection and self-healing improve reliability of the electric network One-way flow of electricity Ability to shape electric flows enables more flexibility, distributed generation Production calibrated for peak demand requires reserves, causes inefficiencies Demand-side management improves generator utilization and grid efficiency Variability in renewable energy sources prevents adoption Enables more sustainable energy sources such as wind and solar Source: Cisco IBSG, 2013

10. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10 Oil Rigs Get Real-Time Data & Remote Experts With Petrobel i-Rigs, decisions can be based on real-time data and remote access to experts Rig personnel use real-time data and remote expert access to make better decisions New information necessitated change in on-rig processes/operations Real-time data analyzed to provide decision makers with actionable information Sensors collect/send data in real time to influence decision making MachinePerson IoE Energy Use Case

11. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11 Smart+Connected Communities Over 20 years, a city of 5M could experience… Source: Connecting Cities: Achieving Sustainability Through Innovation, Nicola Villa and Wolfgang Wagener, Cisco IBSG

12. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12 Cisco and Copenhagen IoE Partnership ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12 Cost Avoidance Productivity Revenue Citizen Experiences Jobs Smart Parking Smart Lighting Smart Water

13. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13 Cities & Public Sector at large benefit from revenue generation, cost savings, employee productivity and citizen experience Delivered Over an Open, Cross-Vertical Architecture

14. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14 Smart Infrastructure The infrastructure of the future collects data moment to moment

15. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15 Connected Healthcare

16. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16 Connected Citizen Services Diverse, multicultural population served by court system Rethinking manual processes using technology to become more efficient Integrated visual/audio technologies support consecutive, simultaneous language interpretation Court interpretation solution saves more than 50% of total interpretation services budget PeopleMachinePeople IoE Public Sector Use Case Remote, centralized interpretation system provides on-demand courtroom language interpretation services for judiciary in Kenya

17. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17 Connected Education for the 21 st Century Cafeteria/Gym Video and WebTV Virtual Classroom Collaborative Tools Outdoor Campus Mobility Campus Entrance Digital Signage Library Bricks & Mortar and Digital Resources Training Classroom Telepresence Cloud

18. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18 ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18 ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18 Changing Our Lives – For the Better

19. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19 City of Palo Alto Goal Is 100% Carbon Neutral for Electricity by 2017

20. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20 The Future: Crowd-Funded Energy Tech Startups ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20

21. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21 During the 21 st Century we may experience 20,000 years of progress Technological Change Is Exponential ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

22. ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22 ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22 ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22 Add some sort of background For visual interest? ©2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22 “ The future is already here – it’s just not evenly distributed.” William Gibson, Author

23. Thank you.