Telefonaktiebolaget LM Ericsson Class A · OMXSTO:ERIC_A

Telefonaktiebolaget LM Ericsson Class A — Ericsson — Merger or Acquisition (February 2014)

22 slides from Telefonaktiebolaget LM Ericsson Class A's merger presentation, February 2014

1. Slide 1: Global Strategic Agreement Between Ericsson and Ciena

   GLOBAL Strategic Agreement Between Ericsson and Ciena Ericsson and Ciena Combine Strengths for IP Optical Convergence and Service Provider SDN Feb 2014 Public | © Ericsson AB 2013 | February 2014

2. Slide 2: Vice President, Head of IP & Broadband, Ericsson

   Vice President, Head of IP & Broadband, Ericsson Public | © Ericsson AB 2013 | February 2014

3. Slide 3: Agenda

   AGENDA Agreement Summary Market Strategy Product Solution Public | © Ericsson AB 2013 | February 2014

4. Slide 4: Operator concerns

   Operator concerns AGILITY “Bring products to market much quicker” INNOVATION “Providing cloud services to enterprise” EFFICIENCY “Radically simplified network” Public | © Ericsson AB 2013 | February 2014

5. Slide 5: Technology disruption

   Technology disruption Flexible Applications “Shared, Efficient, On-Demand” Network Function Virtualization Programmable Network “Flexible, Dynamic, Intelligent” Software Defined Networking Unified transport network IP IP Router Router “Simplified, Efficient” Optical Transport & IP integration Public

6. Slide 6: IP Optical integration

   IP Optical integration Integrated IPoWDM / logical system combination Total Addressable Market, Revenue BUSD IP IP IP & WDM 32% of total affected ~60% CAGR WDM WDM 2014 2020 Source: Ericsson, 2014 Public | © Ericsson AB 2013 | February 2014

7. Slide 7: Network evolution

   Network evolution Applications NFV CLOUD IP Control Plane IP Control Plane SP - SDN Router Optical Control Plane ACCELERATING EVOLUTION TO THE NETWORKED ENABLED CLOUD DWDM Public | © Ericsson AB 2013 | February 2014

8. Slide 8: Network evolution SDN Control

   Network evolution Fragmented Applications NMS IP Services Data plane Network Function Virtualization SDN Control IP Control Plane IP Control Plane IP/MPLS Router/ AN Switch Data plane Router Transport Optical Control Plane Data plane IP Optical DWDM Public | © Ericsson AB 2013 | February 2014

9. Slide 9: Strategic Agreement Overview

   Strategic Agreement Overview › Joint development of IP Optical solution – Leverage Ciena Optical Transport - Ciena WaveLogic coherent optical processors – Build IPoWDM interfaces/boards for Ericsson SSR 8000 platform – Develop multi-layer and multi-vendor open Service Provider SDN Transport Control

10. Slide 10: Benefits

    Benefits › Combined strength of industry leaders – Ericsson’s Service Provider SDN and Information Communication Technology (ICT) – Ciena’s optical expertize and vast installed infrastructure › Complete solution providing lowest TCO – Capitalize on existing Ciena-based optical infrastructure investm

11. Slide 11: Agenda

    AGENDA Agreement Summary Market Strategy Product Solution Public | © Ericsson AB 2013 | February 2014

12. Slide 12: Ericsson Wanted Position

    Ericsson Wanted Position #1 #3 Mobile Backhaul Fixed IP Edge & & Mobile Converged Aggregation Edge Router 4th Generation IP Portfolio #1 #1 Microwave Evolved Packet Core & Networks Policy Control Distributed IP services & Unified Network Management Public | © Ericsson AB 2013 | February 2014

13. Slide 13: Strategy Focus areas

    Strategy Focus areas 4th Gen IP Unified Network Management Application Application Application EPC Application Application Grow Lead Innovate IP & Transport Mobile Backhaul Virtualized Network Networks Evolved Packet Core Applications & SDN smart scalable Simple Superior performance Public | © Erics

14. Slide 14: Ericsson's Current Position

    Ericsson’s Current Position Network Management System #1? Service Provider SDN Controller & Apps #1 #1 Packet Core #4-6 #4-6 IP Edge IP Metro & Backhaul IP Core #1 Microwave Optical Transport #10-12 Ericsson, 2013 Public | © Ericsson AB 2013 | February 2014

15. Slide 15: Strength to Shape the Future

    Strength to Shape the Future Network Management System #1? Service Provider SDN Controller & Apps #1 #1 Packet Core IP Edge IP Metro & Backhaul IP Core #1 Microwave Optical Transport #1-3 Ciena Agreement puts Ericsson together with Ciena in leading position Public | © Ericsson AB 2013 | February 201

16. Slide 16: Agenda

    AGENDA Agreement Summary Market Strategy Product Solution Public | © Ericsson AB 2013 | February 2014

17. Slide 17: Solution mapping

    Solution mapping NMS IP Services Data plane App SDN-Cntl Network Function Virtualization SDN Control IP/MPLS Ericsson Ericsson Data plane SSR SSR Transport SDN-Cntl Ericsson Ericsson SP SSR/ SP Transport Data plane Ciena Ciena Ciena 6500 6500 5400 Access Aggregation Core Public | © Ericsson AB 2013

18. Slide 18: Joint Development

    Joint Development Transport SDN Other Application › IP Optical Interfaces (IPoWDM) Controller Controllers › Ciena WaveLogic coherent optical processors Open SDN Platform › Ericsson SSR multiservice platform › Transport SDN Controller › Application running on open SDN platform SSR SSR IP + Ciena Opti

19. Slide 19: Summary

    Summary Ericsson focuses on Industry change is growing network value and accelerating and Ericsson our customer’s business and Ciena respond with 4GIP and SP-SDN quickly and leverages its respective leadership Ericsson-Ciena solution Operators can realize offers the lowest TCO for benefits of SP-SDN

20. Slide 20: Public | © Ericsson AB 2013 | February 2014

    Public | © Ericsson AB 2013 | February 2014

21. Slide 21: Disclaimer

    disclaimer This presentation has been prepared by, and the information contained herein (unless otherwise indicated) has been provided by, Telefonaktiebolaget LM Ericsson (the “Company”). By attending the meeting or otherwise viewing this presentation you agree to be bound by the following condition

22. Slide 22: Public | © Ericsson AB 2013 | February 2014

    Public | © Ericsson AB 2013 | February 2014

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