Investor Presentation
December 2014
Forward-Looking Statements
This document contains forward-looking statements that involve risks and uncertainties. These forward-looking statements
include statements regarding the momentum in Silver Spring Networks’ business, future growth and future financial results,
including our long term financial model and outlook for the fourth quarter 2014. Statements including words such as "anticipate",
"believe", "estimate" or "expect" and statements in the future tense or about future events are forward-looking statements.
These forward-looking statements are preliminary estimates and expectations based on current information and are subject to
business and economic risks and uncertainties that could cause actual events or actual future results to differ materially from
the expectations set forth in the forward-looking statements. Important factors that could cause results to differ materially from
the statements herein include: timing around customer decisions and deployment pace; dependence on a limited number of
customers and key suppliers; general economic risks; specific economic risks in different geographies and among different
industries; failure to maintain or increase renewals and increase business from existing customers; uncertainties around
continued success in sales growth and market share gains; lengthy sales cycles with no assurances that a prospective
customer will select Silver Spring’s products and services; amounts included in backlog may not result in billings or revenue;
adverse publicity about, or consumer or political opposition to, the smart grid; security breaches involving smart grid products or
services; the ability to integrate technology into third-party devices and Silver Spring’s relationship with third-party
manufacturers; execution risks related to new product introductions and innovation; the ability to attract and retain personnel,
including members of Silver Spring’s management team; changes in strategy; technological changes that make Silver Spring’s
products and services less competitive; competition, particularly from larger companies with more resources than Silver Spring;
international business uncertainties; the ability to acquire and integrate other businesses; and other risk factors set forth from
time to time in Silver Spring’s filings with the SEC, copies of which are available free of charge at the SEC’s website at
www.sec.gov.
All forward-looking statements in this document reflect Silver Spring’s expectations only as of the date hereof. Silver Spring
undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking statements in this document in
light of new information or future events.
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© 2014 Silver Spring Networks
Our Company
We are the platform for the
next generation smart grid networks,
smart cities and connected infrastructure
We are making the internet-of-things
a reality for smart infrastructure
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The Leader in Smart Infrastructure
•
•
•
•
•
•
A decade of innovation and global success
A market leader with over 20M homes and businesses networked
Proven multi-application network for smart grid and smart city applications
Strong value proposition for our customers
Broad ecosystem with 100+ partners
137 granted and pending patents in the US
Smart grid
product of the
year
Gen4
4
Smart grid
product of the
year
SilverLink
American
Tech award
Streetlights
We Connect and Empower
a Multi-App Network Platform
App Store
Applications
ISV
Utility
SSN
Silver Spring Network Environment
SilverLink / Data Platform
Network Control Software
IPv6 Network
5
Bridge
Distributed Intelligence
Communication modules
and Access points
Device Choice and Applications Breadth
Advanced
Metering
Distribution
Automation
Demand Side
Management
Customer
Engagement
Insights &
Analytics
Smart
Infrastructure
Electricity
Fault Location,
Isolation and Service
Restoration
Direct Load Control
Customer IQ
SilverLink
Insights Service
Street Lights
Gas
Voltage
Optimization
Price Response
Marketing Services
Water
Network Monitoring
Energy Efficiency
Non-Technical Loss
PV & Renewable
Integration
Noise Sensors
Environment
Sensors
Prepay
Silver Spring Network Environment
SilverLink / Data Platform
Network Control Software
IPv6 Network
6
Traffic Control
Significant Opportunity to Drive Value
$60
$50
Net Benefits ($/endpoint/year)
$10.0
$40
$16.0
$30
$47.6
$20
$5.1
$7.6
$10
$4.2
$3.0
$1.5
0
$1.3
$6.9
($10)
($15.0)
$7.0
($20)
Network
Cost
Meter
Reading
Remote
Connect
Billing
Outage
Demand Dynamic Energy
Theft Distribution
Response Pricing Efficiency Detection Automation
Source: Silver Spring Networks estimates. Net benefits calculated based on annualized benefits and costs.
7
CVR
Net
Benefits
Use Of Our Network Platform Is Expanding
Devices
Internet
of
Things
Billions
100s of
Millions
10s of
Millions
Smart City
Infrastructure
Networks
Smart
Grid
Networks
Time
Open, standards-based, secure, reliable network
platform
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Smart City Infrastructure Vision
More Control, Less Energy, More Security, Less Traffic,
More Services, Less Pollution, More Decisions in Less Time
Smart Streets
Intelligent Traffic Control
EV Charging
Infrastructure
City Info Panels
Advertising Panels
City Communication
Networks
Public Lighting
Cabinets
Video Surveillance
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Sensors
Pollution,
Water Meters,
Noise
Value Proposition for Customers
Advanced Metering Infrastructure
• 61 million meter reads avoided per year at
PG&E
• 1.4 million remote connects and
disconnects to date at PG&E
• 99.9% remote meter reads at FPL
• Estimated bills reduced over
90% at PG&E
Distribution Automation
• Resolution time of 42k customer-side
outages cut from ~2 hours to ~2 minutes
• 500K outages avoided by ComEd saves
$82M
• 2.9% energy savings with voltage
optimization at AEP
Demand Response
• Avoid building 2 peaker plants (~$363M
investment) at OG&E
• Shed 112MW of load at OG&E in 2013
• Enrolled customers saved average of
$150/household (98% of saved money)
• Deployed one of the world’s largest
networked DR programs
Smart City Infrastructure
• Improvement in public safety, energy
usage and cost
• Saves over 50% of cities’ lighting energy
costs
• Up to 10% crime reduction
Sources: Smart Grid Collaborative; PG&E; AEP; FPL; OG&E Smart Study Together, March 2011; Municipal Solid State Lighting
Consortium – LED Workshop (April 2012); AEP Ohio gridSMART phase 2 filing; Smart Grid Consumer Collaborative Benefits Analysis
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Proven Success at the Leading Utilities
20
Delivered Endpoints (MM)
16
Street Light
12
8
4
AMI
0
2007
11
2008
2009
2010
2011
2012
2013
2014
Customer Engagement / Energy Efficiency
Leverage Smart Grid Data to Enhance Customer Experience
Future Analytics Applications
First Full Deployment:
▪ 2.9 million Consumers Energy
Customer
Engagement
Residential and Commercial customers
▪ CustomerIQ App Suite, Powered by the
• Load
Disaggregation
• Demand Side
Management
• Customer Care
and Outreach
SilverLink Sensor Network
▪ Multi-channel, integrated engagement
platform
▪ Open eco-system for innovation
▪ Near-real time information on energy
usage and management
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Operational
• Network
Management
• Meter Asset
Management
• Grid Analytics
Strong Fundamentals
28M Awarded
including
2M Awarded in
1H 2014
20MM Delivered
Endpoints
Cumulative Endpoints Over Time (MM)
$0.9 Billion
Backlog(1)
+$335M R&D
Invested and 137
Granted and
Pending
Patents(2)
Non-GAAP Revenue Over Time ($MM)
2009 – 2013 CAGR: 49%
2009 – 2013 CAGR: 15%
$344
$304
$261
18
16
$236
$196
12
8
4
2009A
2010A
2011A
(1) Backlog as of Dec. 31, 2013.
(2) Patents and R&D as of September 30, 2014.
Non-GAAP financial measures.
13
2012A
2013A
2009A
2010A
2011A
2012A
2013A
Our Business Model
Every Home & Business We Network Increases Our Value
YTD Q3‘14
Endpoint
Results
Monetization
Total Endpoints (M)
52
47
+13%
$2-$3/
Year(1)
26
$
Pilot
25
+26%
Products(2):
~$80-100
8
Backlog
6
Services:
~$15
(24%)
Time
Endpoint is a connected home or business.
(1) Based on the current model and delivered cumulative endpoints.
(2) Based on the current model and new endpoints delivered within the year.
14
16
18
2012
2013
Delivered
Diversifying the Business
Non-GAAP Revenue – % of Total
2009A
YTD Q3’ 14
Product
91%
70%
Managed & SaaS Services
4%
15%
Professional Services
5%
15%
Network / AMI
100%
85%
New Solutions
0%
15%
U.S.
94%
89%
International
6%
11%
By Type:
By Solution:
By Geography:
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Summary
Strategically positioned as a market leader and trusted partner
Platform for next generation networks – smart grid, smart cities, IoT
Leveraging core technology – DA, DSM, Street lights and SilverLink
Record backlog and robust pipeline
Attractive business model
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Investor Presentation
December 2014