Ericsson ConsumerLab Research on Connected Home

1. Connected Home
Maria Boura,
Head of Strategy, Marketing & Communications
South East Europe Athens, February 9, 2016

2. Public | © Ericsson AB 2014 | 2014-12-5 | Page 2
MOBILE INFRASTRUCTURE
OPERATIONS & BUSINESS SUPPORT SYSTEMS
TELECOM SERVICES
TV PLATFORMS
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25,700
5 busd 65,000
2.5 Billion
1 Billion
180
33 busd
118,000
Subscribers
managed by us
Subscribers
supported by us
Services
professionals
Net Sales
2014
Employees
Countries with
customers
R&D
Employees
Patents
In R&D
Ericsson at a glance

3. Page 3
Ericsson ConsumerLab annual research
1.1 billion
REPRESENTING
PEOPLE
100,000
RESPONDENTS
15
STUDIED
MEGACITIES
40
MORE THAN
COUNTRIES
Unbiased Consumer insights since 1995

4. Page 4
https://www.youtube.com/watch?v=ESOPEmw609w

5. Page 5
connected home research
5,000
RESPONDENTS
5COUNTRIES
Chile, Russia, Spain, Sweden, USA
1,000 per country

6. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 6
Eight Connected home
solution areas
Organization
Grocery Shopping
Socializing
Health & Wellness
Entertainment
Housekeeping
Energy & Utility
Home Security
Source: Ericsson ConsumerLab, Connected homes, 2015

7. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 7
High interest for connected
home services
Base= all
(n=1000) (n=1000) (n=1000) (n=1000) (n=1000)
39% 45%
31%
55%
64%
(n=5000)
47%
Total USA Spain Sweden Russia Chile
Source: Ericsson ConsumerLab, Connected homes, 2015

8. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 8
Control, peace of mind and
simplicity
Q.B1a Base=Rated overall interest in Connected Home 7 or higher
Helps control (things in) my home/ good for when I am away
Improved safety/ security (peace of mind)
New/ cutting-edge/ state of the art (high tech)
Makes life easier
I would like to learn more about it/ need more information
Convenience
It helps to keep me informed/ provides me with information
It can be used/ accessed through an electronic device
It is good/ I want it
(Improved) time efficiency/ saves time
Provides (improved) comfort
(Improved) energy efficiency/ saves energy
It is helpful/useful
Helps save money/ cost-effective
Efficiency
Easy to use
Improves quality of life
I already have (something similar to) this
Other
None/no reasons
Don't know
24%
19%
19%
12%
11%
9%
8%
8%
7%
6%
6%
5%
5%
5%
3%
2%
2%
1%
3%
1%
3% Source: Ericsson ConsumerLab, Connected homes, 2015

9. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 9
Lack of interest is the main
barrier for adoption
No need/ not interested
Cost/ too expensive
Too difficult/ complicated (hard to use, difficult to learn)
Satisfied with my existing systems/ services
I do not want to be (highly) dependent on devices/ technology
Not trustworthy/ concerned about security/ privacy
I do not know enough about it/ I need more information
This would not work for my house (house is too small, etc.)
House is usually occupied/ someone is at home most of the time
It's not a priority
I do not own my home (live in an apartment, condominium, etc)
Don't want to get lazy
Other
None/no reasons
Don't know
33%
14%
11%
10%
9%
9%
6%
3%
3%
2%
1%
2%
7%
3%
6%
Q.B1b Base=Rated overall interest in Connected Home 6 or lower
Source: Ericsson ConsumerLab, Connected homes, 2015

10. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 10
Profiling
› 18-34 Yrs. Old
› Males
› A detached single family
home
› In a suburb of a major
metropolitan area
› Early adopter
USERS INTERESTED NEEDS
› 25-29 years old
› Male and female
› In the city of a major
metropolitan area
› Reside in 2 to less than 5
years old building
› 21-34 years old
› Females
› Several children
› In the city of a major
metropolitan area
› Reside in less than 20 years
old building
› Care of dependent elders
Source: Ericsson ConsumerLab, Connected homes, 2015
Base= users of all 8 categories Base= highly interested in connected homes Base= high needs in all connected home
categories

11. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 11
Priority areas – connected
homesDegreeofNeed
Interest levels
% Highly interested
* Bubble size denotes current usage
Socializing
Health & Wellness
Home security
Energy & Utility
House keeping
Grocery Shopping
Organization
Low-hanging fruit
Long term opportunities
Look for Unmet needs
Near-term opportunity
Entertainment
Source: Ericsson ConsumerLab, Connected homes, 2015
Base= all

12. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 12
preference for a
single service
provider
34%
66%
Base : Those highly /moderately interested in any of the 8 areas
and interested in integrated home solutions (Rated 7 or above )
Q.C5a Source: Ericsson ConsumerLab, Connected homes, 2015
40%
50%
10%
OVERALL Interest in Integrated
CONNECTED
HOME service

13. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 13
Consumers consider many
potential suppliers of connected home
services
39.0%
Alarm/Home Security
companies Electronics
manufacturers
Electric/Gas/
Heating Utility
companies
Wireless/
mobile/
telecom providers
Internet
Service providers
Home
appliance companies
Technology/
Software companies
(Google, Microsoft)
Consumer electronics
stores
Home improvement
retail stores
Mass
Merchant
stores
Computer companies
(Dell, Toshiba)
Emerging companies
(Nest,
Quirky)
Online
retailers (Amazon)
32.3%
31.0%
26.6% 25.1%
23.8% 22.6%
20.6% 19.9% 17.9%
14.0%
13.1% 12.0% 11.3%
Base : Those highly /moderately interested in any of the 8 areas and interested in
integrated home solutions (Rated 7 or above )
30.8% 30.6%
City/local municipality
(provided as public
service)
Local telephone
companies
Cable
television
Source: Ericsson ConsumerLab, Connected homes, 2015

14. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 14
Integrated service provider
roles
Energy & Utility Home
Security
House
keeping
Grocery Shopping
Socializing Entertainment
Connected Home
Advisor
Integrator
• User-desired benefits of a connected home that is completely
integrated are ease of use and maintenance, simplified
account management and billing, and cost savings.
• Install/ program the solution,
• Make recommendations
• Anticipate future service needs
• Combines each connectivity service into an all-in-one universal
command interface
• Integrate best of breed devices and services
• The solution may or may not have to be delivered by a single
provider but needs to be interoperable and possible to
integrate..
Source: Ericsson ConsumerLab, Connected homes, 2015

15. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 15
Key findings
Consumers demonstrate a
high interest in connected
home services.
Users are calling for
simplification and support.
People currently living in
connected homes are not the
same as those who would
benefit from one.

16. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 16
https://www.youtube.com/watch?v=UFLJmklZnlQ

17. Ericsson_ConsumerLab_10_hot_consumer_trends_2016_Presentation_16_9 | GFSA-15:000313 Uen, Rev A | 2015-12-08 | Page 17
https://www.youtube.com/watch?v=glBOU8XsjZ8