An all communicating world

Bengt WattenströmDirector Business Development

Innovation and SustainabilityIN TIMES OF CRISIS

Seville, May 2009

© Ericsson AB 2009 2009-05-262

Ericsson history - 133 years of leadership

1876 Ericsson founded by Lars Magnus E.

1892 First sales to China

1900 95% of sales outside Sweden

1905 Operator and manufacturing in Mexico

1923 Manual to automatic

1968 Electro mechanics to computer control

1981 Fixed to mobile

1991 GSM/2G introduced

2001 3G introduced

2005 3G/HSPA, Mobile broadband introduced

2008 First 4G/LTE call demonstrated

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The vision

The prime driver in an all communicating world

• Present in more than 175 countries

• Global leader in Telecommunications

• 77,000 employees

• 19,000 in Research and Development

• 30,000 in Global Services

• Sales 27 billion USD

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Sustainability becoming business critical

Business requirementsOur management system and processes work – risks and opportunities are addressed

Sustainability becomes part of core business, not an add onWe can deliver solutions that beat competition, are profitable, and contribute to sustainability

Global policy Public opinionClimate, health

& povertyrealities

Financial crisis

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CO2 must be cut by at least half by 2050 - while economy triples

Change in lifestyle not enough – innovation & technology key

Growth & sustainability can go hand in hand – with smart infrastucture

Consumers SocietyIndustry

TelecommunicationsAn engine in development of society

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Sustainability defined

What we mean by Sustainability = the triple bottom line.– Economic prosperity. Our direct economic contributions to

society, and the indirect contribution that telecommunications makes to social and economic development.

– Social equity. Communications is a basic human right and should be available to all.

– Environmental performance. Our own performance, and how it can help our customers to minimize their impact, and how we can help to create a more carbon lean economy.

© Ericsson AB 2009 2009-05-267

Life-cycle approach (LCA)

EricssonTransports

Office & manufacturing sitesBusiness travel

Supply chainManufacturing & office sites

TransportsRaw materials & chemicals

Use phaseProducts energy consumption

Offices & storesVehicle fleet

End of lifeRecycling of metalsCollection/Treatment

LandfillResource depletion

Scope: Our products life cycle

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Some of our CR and Sustainability partners

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CO2 per subscriber: Ericsson networks

1985 1990 1995 2000 2005 2010

100

50

150

25

200

An

nu

al C

O2 /

su

bsc

rib

er [

kg]

Year

AMPS

GSMWCDMA

Mobile Subscription now 25 kg CO2 per year – Same as driving car for 1h

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Understanding ICT’s carbon footprint

ICT responsible for 2% of global CO2 emissionsICT’s share of world economy is about 7% (Revenues/GDP)Mobile telecom is only about 0.2% of CO2 but 1.6% of GDP

How can we reduce our own sector emissions?

ICT key to reduce the other 98% of CO2 emissionsThe enabling effect How can we help reduce other sector emissions?

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Innovation and technological improvements

address the 0.2%

Ericsson Tower Tube

Village Solar Charger

Green Site Solutions

80% energy efficiency improvement in 3G portfolio 2001-2008

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CO2 emissions:How ICT can help reduce CO2 overall emissions

1800 1850 1900 1950 2000 2050

Target area 2050(~50-80% reduction)

AnnualEmissions

ICT can help reduceemissions 15-35%

If we reduce our emissions

© Ericsson AB 2009 2009-05-2613

Sustainability offerings

Smart Grid ConsultingSmart Grid Consulting helps utility companies cut through the myriad of AMI & AMM (Smart Metering) solutions available

Environment & SustainabilityStrategic advice on impact of environmental & social issues on business developmentEnergy consumption analysis & prioritisation, benefit analysis and business Casing

Product DematerialisationPromotion of travel replacement, Dematerialization, Combined measures

Transport & LogisticsSupply Chain / Logistics Diagnostic, Evaluation and Strategy

Data Centre EfficiencyEvaluate energy of existing facilities, storage environment and utilisation efficiency and thermal conditions

Life Cycle management“Cradle to grave” analysis of network/mobile phone and operator activities

Ecology managementSafe handling of infrastructure waste from operators

Ericsson Efficient Energy SolutionComplete solution of alternate and renewable power including energy optimization and power saving features.

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Waste

Agriculture

Forestry

Travel & transport

Buildings

Industry

Energy supply

14%

3%

17%

19%

8%

13%

26%

• Virtual presence• Smart transport

• Digital society• Smart business

• Facility management• Monitor & control

• Smart metering• Energy “Internet”

15-35 %

ICT contribution potential

Global Carbon Emission 2007

49 billion tonSource: IPCC

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Solutions for the Sustainable City

YOU

The House Hold

The HouseThe Block

The CityTransport SolutionsSolutions For UtilitiesSurveillance systemsHealth Care systemsCare of the elderlyMeetings with many participants

Monitoring of:Water & Energy ConsumptionLightFire AlarmIntrusion detectorDigital Key system

Video conferenceCallcentersHosting of business support systemsE-learningPC-support Datastorage & backupAlert SystemsCar pool system

Remote Control of homeMonitoring of:Energy Cons.LightDigital keysVideo on Demand

M-WalletTravel PlannerCO2 calculatorEco-life guidenceM-Health

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Healthcare, Care of the Elderly

Example of Service:

Hospital relatedPolyclinicsSpecialistsHome CareRelatives

Movement-sensors

Analysis Equipment- Glucose- Pulse- Carbon dioxide

Camera

Voice controlledRemote control

Sensors- EKG- Temperature- Pain Alarm watch

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Mobile broadband closes the digital divide

Mobile communication and Internet to 12 village clusters in 10 countries: Ethiopia, Ghana, Kenya, Malawi, Mali, Nigeria, Rwanda, Senegal, Tanzania, and Uganda.

18 villages and 15 towns provided internet services using HSPA

Over 400,000 people in the Millennium Villages throughout rural Africa

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Challenges and conclusions

Challenges – Lack of cross-industry collaboration– Behavioural changes– Translating hype to facts and figures

Policy areas, innovation and incentives– Intra-sectoral changes will not be enough (i.e., only addresses the

2%)– Need incentives for industry to work cross sectorally – research,

technical innovation, tangible solutions– Governments need to do more to make the ”e’s” and the ”m’s”

happen. Examples could include: Structural funds – shift from railways and roads to ICT Harmonize technologies – economies of scale and

affordability Encourage standardization - key to volume and keeping

prices down

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