1. 1 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets Smart (Grids + Metering Markets) Ralf Hoffmann CEO GÖRLITZ AG 2014

2. 2 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets WHO WE ARE IDS GROUP People Country subsidiaries Utility references Metering sites Turnover per year 1.000 10 2.000 20.000.000 100 m

3. 3 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets WHAT WE DO Grid Management Grid Automation Energy efficiency GIS asset Mgmt Smart Metering IT Security

4. 4 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets REFERENCE EXAMPLE Meter rollout 391.000 Powerline DC 8.207 MDM IT 38 Servers 0% 25% 50% 75% 100% 99,93% average daily success rate for full data retrieval Peter Iversen (CTO): We have all meters out in the field, they are up and running and we are still able to bill our customers. Daily interval reads 1.955.000 meter values collected daily 376.924.000 eg. monthly 11.684.644.000 Smart Meter full rollout with 400k meters, powerline communication and GÖRLITZ MDM IT. Denmark represents the highest amount of rnewable energy integration in the grid worldwide. Data mining and reliable data processing enables the key beneftis of the project.

5. 5 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets CONCLUSIONS Peter Iversen, CTO of SEAS-NVE: -A smart meter rollout is an IT project, not a meter project. -When we started, we thought it to be a meter project and did it the classic way, we´d never do it that way again. -We are very happy to have the system up and running and we don´t remember how we were able to do metering before. -After completion of the project, we were surprised that ROI will be reached 2.5 years earlier that expected at planning stage. -We detected significantly more saving potential to our operation processes. -We brought the advantages to our customers and they enjoy the reliability of our service. -We had to learn a lot. -We will definitely do it again.

6. 6 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets LESSONS LEARNED Energy Market 1

7. 7 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets INTEGRATION REQUIRED ERP Grid management Billing Portfolio/CR M Gen DSM Energy Market 1

8. 8 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets 400.000 kt 300.000 kt 200.000 kt 100.000 kt Annual funding for renewable energy sources (EEG) in Germany ( in 1.000 Euro ) Annual emission of electricity generation related CO2 ( in 1.000 tons ) UNBUNDLING: INVESTMENTS AND RESULTS Energy Market 1

9. 9 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets Even though wholesale prices have dropped significantly, customers claim constantly rising prices. THE SELFHEALING MARKET FORCES... Energy Market 1

10. 10 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets MARKET DESIGN... Electrical energy is a capacity product consumption MUST always align with production storage has low efficiency Better to control consumption We´ll lack in capacities But handled in the market like stock bulkware We usually talk about energy savings, not capacity savings Most incentives offered on production quantities We´ll get flooded by electrical energy Energy Market 1

11. 11 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets OLDSCHOOL VIEW Base load Peak load Energy Market 1

12. 12 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets FUTURE BASE LOAD PEAK LOAD VIEW Base load Peak load Energy Market 1

13. 13 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets OECONOMICS SMART METERING Effort for Grid operation Grid expansion and maintenance Meter operation (++) DSO invoicing EDI Technical Services Aggregation and Balancing Non-technical losses Income with Grid and transport fees Metering fees (+) Billing fees Balance energy Load Management Demand side management Energy services Consulting Economical effort for metering operation will increase anyhow, just the level of increase is not fixed, Income from metering fees will increase less, Balance of additional cost may lead to Reduction of profitability (shit...) Reduction of other cost (Synergies!) Increase of other income (new businesses!) Value chain 2

14. 14 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets INTEGRATION REQUIRED ERP Grid management Billing Portfolio/CR M Gen DSM Value chain 2

15. 15 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets METERING TECHNOLOGY BRIDGE Smart Office Smart Market Smart Customer Smart Generation IDEX Edifact, Ediel, EBix Smart Grid Generation Management Compensation Management SMGW admin Meter reading Workforce Management Smart Meter Communication Head-End System Aggregator DSO ESCO REN Grid relevant control Load forecast DMS Consumption analysis Smart Home, energy efficiency ERP Backoffice, CRM, CIM, billing and dunning Value chain 2

16. 16 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets A POWERFUL MDM SOFTWARE SYSTEM IDSpecto SMDM System with state-of-the-art software design 400+ different meter drivers for electricity, gas, water and heat Workflow engine for automatic monitoring of all data collection, aggregation and processing functions Unlimited scaling of performance and database storage by physical expansion of basic IT-platform only Open interfacing to ERP and billing IT Solution offer 3

17. 17 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets AN UNRESTRICTED MULTI METER SUPPORT 400+ different meter drivers for electricity, gas, water and heat Powerline, Meshed RF, G3 and wired networks supported Active in international standardisation, supporting ESMIG and driving the EU Mandate M/441 Founding member of the DLMS user association You will not find any meter that we are not able to read automatically Solution offer 3

18. 18 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets A RELIABLE PROJECT EXPERIANCE 900+ utility customers served with 20.000.000 metering sites in total Industrial, commercial, and residential metering Serious Roll-Outs managed with installation monitoring and IT integration 24/7 maintenance service and Europeanwide SLA´s in operation Highly engaged delivery team Enel Solution offer 3

19. 19 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets YOUR WEIGHT ON DIET... Could a diet work out fine without weighing regularly? What if your balance just shows your total summary of all weights in a year only? Compared to the function of a dumb meter, it may answer you a weigh of 73 tons and 675 kilogram an march 16 th. Great stuff! Implementation 4

20. 20 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets YOUR ENERGY ON DIET IS … How could one have the energy demand under control without regular weights? Previous dumb meters are precise and solid devices, but they just display the total weight of a consumer, nothing else. You may try to become energy efficient on such information level … Implementation 4

21. 21 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets 21 MORE INFORMATION REQUIRED? Boilers53,4 kWh Cooking32,8 kWh Washing38,22 kWh Fridges22,9 kWh Heat pump34,3 kWh Illumination12,2 kWh Media 34,6 kWh Other44,9 kWh... plus some more simple statistical information, tachometers, graphs and easy to understand hints.. Implementation 4

22. 22 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets SMART ANALYTICS SYSTEM COMPONENTS IDspecto COMfor Visualization Status information Load information Contract display Tariff option recognition Booking registration Smart Meter Power measurement Metrological device Sensor function Consumer Gets informed through visualization device Act contractual decision through vizualisation device Smart MDM Routing of all information flows Monitoring of component status Home device pattern library Information database on typical home consumation devices and their specific electrical behaviour Implementation 4

23. 23 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets ENVIEW ANALYTICS Implementation 4

24. 24 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets 24 SMART MARKET EXAMPLE: ECO-FLAT Fixed monthly fee of 34,95 Euro for electricity supply Unlimited volume of energy consummation * Free load limit during time of sufficient renewable energy generation Load limit of 4 KW during time of limited renewable energy availability Easy upgrade booking on demand in low load limit times when necessary Implementation 4

25. 25 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets Smart Office Smart Market Smart Customer Smart Generation METERING TECHNOLOGY BRIDGE IDEX Edifact, Ediel, EBix Smart Grid Generation Management Compensation Management SMGW admin Meter reading Workforce Management Smart Meter Communication Head-End System Aggregator DSO ESCO REN Grid relevant control Load forecast DMS Consumption analysis Smart Home, energy efficiency ERP Backoffice, CRM, CIM, billing and dunning

26. 26 GÖRLITZ AG Ralf Hoffmann, CEO A company within the 06.05.2014 Smart Grids + Metering = Markets Let´s make electricity supply more human CONCLUSION You should´t finance what you can´t measure The balance of decentral renewable energy generation requires DSM Capacity tariffs and smart meters give the framework for a proper market design The rest of the story is just about technology; ready to use