Building the platform for 5G

2. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 2 Full Mobility Cloud Technologies Programmable Networks Automation Global access agnostic mobility mm Wave and Adaptive Beamforming Flexible spectrum assignments Management transformation Virtualization, containers and microservices Distributed cloud with edge compute Network abstraction Orchestration cross domains Multi-layer SDN Automated Life Cycle Management Dev opsXaaS Artificial Intelligence Machine Learning Real-time data stream analytics and insight execution Cognitive Technologies Technologies shaping the industry Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |

4. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 4 The operator 5G industry digitalization opportunity by 2026 Source: Ericsson and Arthur D. Little Energy & Utilities Manufacturing Public Safety Financial Services Healthcare Automotive Media & entertainment Public Transport 17% 8% 11% 13%13% 5% 19% 13% $582B OPERATOR ADDRESSABLE 5G DIGITALIZATION REVENUES IN 2026 Adding an addressable market potential of 34%in revenue growth Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |

5. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 5 driving a comprehensive 5g agenda 5G Doors open for new industry verticals • 5G for industries Industry Engagements • Leading industry transformation through partnerships Open Source momentum broadens within the industry • Industry/Customer initiatives • Ericsson engagements Establishing the framework for 5G • Standardization • Spectrum Key driver in the intelligent transport systems space • Infrastructure, vehicle electronics, operators, car manufacturer, chip manufacturer, road regulators etc. Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |

6. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 6 Industry Pilots & engagement Automotive Manufacturing TransportMining Develop end-to-end solutions for future mobility and transportation services, impact regulation and standardization Audi, BMW, Ericsson, Huawei, Intel, Qualcomm, Nokia, Orange, Verizon, AT&T, China Mobile, Vodafone, DT….(30 partners up to date) Evaluate mobile communication for underground mining, incl. safety and increased productivity ABB, Boliden, Ericsson, Luleå University of Technology, PiiA, Telia, Volvo, Vinnova and Wolfit Evaluate 5G and IoT opportunities to improved the production efficiency, enabled by data analytics, cloud and industrial IoT and more Chalmers University of Technology, Ericsson, SKF and Vinnova Explore use of 5G for intelligent transport and investigate as-a-service offerings and reduce fleet operations costs KTH Royal institute of Technology, Ericsson and Scania SMART VEHICLES, TRANSPORT CRITICAL CONTROL OF REMOTE DEVICES INFRASTRUCTURE, MONITOR & CONTROL SMART VEHICLES Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |

7. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 7 Use case evolution Multi-standard network Cat-M1/NB-IoT Cloud optimized functions VNF orchestration Gigabit LTE (TDD, FDD, LAA) Massive MIMO Network Slicing Dynamic service orchestration Predictive analytics 5G NR Virtualized RAN Federated network slicing Distributed Cloud Real time machine learning/AI Screens everywhere Immersive experience8K AR 4K VR On demand information Autonomous control Technologies Connected doctors and patients Remote operations Process automation Cloud robotics and remote control Metering and smart grid Machine intelligence and real-time control Manufacturing Healthcare Energy & Utilities Enhanced Mobile Broadband Automotive AI New toolsVR Real-time information vehicle to vehicle Monitoring and medication e-care Flow management and remote supervision Resource management and automation On the road to 5G 5G experienceCurrent Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |

8. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 8 Distributed cloud Architecture Better media delivery closer to the network edge CN UPF MSP and other acceleration VNF’s Internet Video Application vRAN CN UPF Network Edge Centralized MSP (TDF) Media Processing Policy & Charging 3 ms › AR/VR and 360 Viewport selection › OTT Aggregation/Caching › Split-TCP and ARFM for low latency › Pre population of popular content › Ad insertion, Repackaging › Media Processing (4K, HD, UHD, HDR) › Media Distribution and Storage › cDVR, Timeshift, VoD › CDN: Multicast ABR, UC ABR › TCP Optimization, ABR Shaping Aggregation site 30- 300 ms MSP and other acceleration VNF’s Delivery/acceleration candidates: › AR/VR and 360 Viewport selection › Split TCP and ARFM For APP traffic in Edge, candidates: › Per user access control › TDF enabled user specific policies CN UPF CN CP Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |

9. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 9 5G NG CORE Service Based Architecture Application Session Mgmt User Plane N4 N3 N2 N1 N6 User Plane N9 Authentication Server Unified Data Mgmt Access & Mobility Policy Control Network Repository Network Exposure Nausf Nnef Nnrf Npcf Nudm Namf Nsmf Naf Potential benefits: › NR standalone (SA) mode › Multi-slice UE, single UE simultaneously connecting to multiple services over multiple slices with optimized access and mobility signaling › Improved QoS concept › Simultaneous access to local and centralized networks within the same data connection › Mobility on Demand concept › Preparing for multi-access integration Data Network Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |

10. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 10 NFV – now happening Becoming industrialized Ericsson +100 customers in 75+ countries, 25 live commercial networks Telefonica LGU Plus Telstra Digicel Swisscom NTT DoCoMo NFVI SDN vEPC vIMS vPCRF vUDC vDSC vMSP vBNG vMSC NFV MANO VNFM Tampnet Vodafone Hutchinson Vodafone Wind Panasonic Avionics Telefonica Colombia & Peru Motorola, Austria Spark Tango Softbank TeliaSonera Vodafone Egypt Másmóvil Verizon Millicom Zain RTA AT&T Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |

11. Commercial in confidence | © Ericsson AB 2017 | 2017-10-10 | Page 11 NFV Achievements to date 5gPlatform Container/VM S App Logic DB S Enterprise Massive MTC Critical MTC Mobile Broadband 60G/server vEPG NW slices on Distributed Cloud Cloud Native VNF’s Multi VIM 36h VNF & PNF Multi-vendor DevOps Dynamic Orchestration Technical platform becoming industrialized – business innovation is next Commercial in confidence | © Ericsson AB 2017 | October 10, 2017 |