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Salvador, BA November, 2015

Social Innovation to Answer Society’s Challenges

Social Innovation: “the deployment of technology and new business models to bring about real positive change to the lives of individuals and societies, creating shared value.”

Urbanization – City as a Customer

Smart is the New Green

Social Trends

Connectivity and Convergence

Bricks and Clicks

Innovating to Zero

New Business Models: Value for Many

Beyond BRIC: The Next Game Changers

Future Infrastructure Development

Health, Wellness and Well Being

Future of Mobility

Future of Energy

Global Mega Trends Shaping our Future

Source: Frost & Sullivan

The Social Challenge: Top Mega Trends Impacting Society

Urbanization

Smart is the New Green

Health, Wellness and Well Being

Future of Mobility

Future of Energy

Mega Cities to contribute $21 trillion GDP by 2020

$1.5 Trillion needed to make cities smart by 2020

Sustainability, efficiency key in addressing yearly demand growth of 2.2% through 2020

The future of Mobility will be multi-modal. Example: $600 billion+ spent high speed rail projects by 2020 (Global, cumulative)

‘Power Patient Revolution’: Total global healthcare spend on

treatment declines from 70% in 2007 to 56% by 2020

Source: Frost & Sullivan

Continued Industry Convergence Across Markets

Source: Frost & Sullivan

Key Stakeholders for Social Innovation

Government

Increased pressure for sustainable

economic growth

Communities

Communities / users / patients /

citizens: increased ownership,

engagement and interest

Corporations

Looking at long-run corporate performance

metrics

SOCIETY

Source: Frost & Sullivan

Traffic Congestion Fuel Waste

• Rio de Janeiro, Mexico City, Salvador and Recife among the 10 most congested cities

• 80% of the region’s population living in cities

• Transport contributes more than one-third of CO2 emissions in Latin America, and is the fastest-growing CO2-emitting sector in the region

• Sao Paulo's average commute time is the second-world’s highest (43’)

• Other 4 Brazilian capitals include the top 10 ranking

• US$ 40 M wasted annually in São Paulo and Rio de Janeiro by vehicles idling in congested traffic

Pollution Journey time

Social Innovation in Transport & Mobility Technology led innovation in transportation can improve quality of life, by reducing congestion and pollution, fuel savings and journey times; connected vehicles, trains, and services can deliver this Social Innovation

Smart Parking eMobility Fleet Management Traffic Management

Integrated Ticketing & Fare Collection

Train-as-a-service High Speed Rail Regenerative Braking

Connected Mobility, (vehicles, Infrast.)

On-Demand & Shared Transport

Journey Planning Real Time Transport

Information

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Source: Frost & Sullivan

Latin America Key Growth Region for Innovation in Mobility

• The Center helps the city manage resources and improve efficiency of response

Key markets for hybrid vehicles

Electrical Vehicles

• Mexico City has plans to install charging zones across the city.

• Nissan and Mexican State Government are collaborating to create the first electric corridor in Latam for Mexico City to Cuernavaca

Smart City Projects: Center of Operations Rio de Janeiro

Source: Frost & Sullivan

Power Generation Consumption

• Power demand will more than double between 2010-2030

• Power generation contributes 20% of CO2 emissions

• Power losses of 17%

• Renewables CAGR by 2025: 13%

• Over 31 million people - 7% of the regional population - lack access to electricity

• Growth in ‘prosumers’ with 60GW of DG capacity to be added globally by 2020

• Long term trend of increasing energy prices

Transmission Distribution

Social Innovation in Energy Digitization and intelligence from generation to consumption to capture data & drive innovation and efficiency

Reduce Carbon Smart Grids Micro-Generation Smart Buildings

Renewable Energy HVDC Smart Meters Home & Building Energy

Mgmt

New Business Models Grid Stability Distribution Management Electric Vehicles

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Utility scale Storage Power Electronics & Control Microgrids Battery Storage

Source: Frost & Sullivan

Smart meter deployment

• US$ 710 M - World Bank

• Amazonas, Alagoas, Acre, Piaui, Rondonia and Roraima

• First Stage:

improving service quality

control of non-technical losses

operational efficiency

• Second Stage:

surplus energy quota sale

prepaid offers

dynamic pricing

Energia+ Project

• US$ 30.2 million

• Mexico City

Reduce Energy Loss

Ensure Revenue Protection,

Improve Reliability

Latin America Key Growth Region for Innovation in Smart Grids

Source: Frost & Sullivan

Smart City Market

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Smart Energy Highest growth rate (CAGR): 28.7% by 2025 Highest growth in Smart Meter (CAGR): 23.15% by 2025 Highest growth in North America

Smart Technology CAGR: 18.23% by 2025 More projects coming up in North American and European regions

Smart Infrastructure Highest growth in smart utilities market (CAGR): 10.16% by 2025 Highest growth in North America and Asia

Smart Building The market to reach $1 trillion mark by 2030 China and India are the fastest growing market followed by Japan and Korea

Smart Transportation Market value: $423 billion by 2025 Market growth in Latin America, Middle East & Africa, and CIS + Eastern Europe. Latin America will have about 50% growth in smart transportation by 2025

Smart Healthcare North America to dominate the smart healthcare market with more than 50% share by 2025, followed by Europe

Smart City Market by Segments, Global, 2025

Frost & Sullivan Estimates Smart City and Related Markets will be a $1.56 trillion opportunity by 2025

Note: The graph represent the market share of each segment in the smart city market Source: Frost & Sullivan

Source: Frost & Sullivan

Urban

Development

Water Manufacturing &

Construction

Transport & Logistics

High Growth Opportunity Areas for Social Innovation

SOCIETY

• Multi-modal Solutions • Electric Vehicle

Infrastructure • Car sharing & pooling • Insurance Analytics

• Medi Cities, Location based Monitoring

• Self Monitoring • Fitness Apps, Vital

Tracking

• Industry 4.0 • Near-sourcing • Wellness of

Workers • Smart Factory

• Supply Chain Sustainability

• Resource Conservation & Efficiency

• Food Purity & Safety • Waste Recovery

• Smart Water Networks

• Harvesting & Re-use

• Desalination • Distributed Water

Supply

• Renewable Energy • Demand

Management • Energy Storage • Smarter Grids

• Smart & Safe Cities • Carbon-neutral

buildings • High Speed Rail • PPP Business

Models

Healthcare Natural Resources Energy

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