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4 Value-Added Services 4
5 Value Added Service Bundles 5
6 Data from Smart Products Unlocks Value for Partners
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8 Developing a Future-Proof IoT Strategy Wendy Toth Vice President Marketing Ayla Networks Nolan Mondrow CEO and Founder Lockstate Ron Bartos Director of Global Electronics and Sensors A.O. Smith
9 Ayla s Panelist Wendy Toth Vice President of Marketing Ayla Networks Ayla Networks, All Rights Reserved. 9
10 Ayla s Agile IoT Platform TM Single layer of software fabric between devices, virtual devices, and applications; with support from world leading chip/module/gateway suppliers to IoT (this is what differentiated ipod, Kindle, Android devices ) Ayla Networks, All Rights Reserved. 10
11 The Power of Agile Virtual Devices TM Interact with outside sources of data Enable data reporting and analytics for marketing, engineering, warranty, etc. Dynamic ability to change features and capabilities at any time Connect to any 3 rd party clouds; integrate API to partner services at any time Dynamic storage of unstructured data; no preset data models Ayla Networks, All Rights Reserved. Ayla s Agile Virtual Devices TM allow massive flexibility to innovate, learn, and adapt 11
12 Developing a Future-Proof IoT Strategy Wendy Toth Vice President Marketing Ayla Networks Nolan Mondrow CEO and Founder Lockstate Ron Bartos Director of Global Electronics and Sensors A.O. Smith
13 LockState s WiFi enabled door locks and peripheral devices allow property owners and managers to remotely monitor and control their properties from anywhere in the world.
14 Connected Solutions for Home and Commercial
15 Developing a Future-Proof IoT Strategy Wendy Toth Vice President Marketing Ayla Networks Nolan Mondrow CEO and Founder Lockstate Ron Bartos Director of Global Electronics and Sensors A.O. Smith
16 Future-Proofing the IoT Webinar Introduction to AO Smith Ron Bartos April 30, 2015
17 A.O. Smith Introduction Ron Bartos - Director of Global Electronics & Sensors AO Smith Corporation, 25 years Barber Colman Co, 5 ½ years MSCS Illinois Institute of Technology BSEE Marquette University AO Smith (NYSE:AOS) a leading world-wide manufacturer of water heating, water treating, and air purifiers Celebrating 141 years in business $2.36B revenue (2014) Introduced & expanding offering of communicating residential and commercial water heaters 17
18 A.O. Smith Timeline: A History of Innovation Charles Smith opens general machine shop Leading automobile frame manufacturer Automated frame assembly line Patents process for fusing glass to steel tanks 1 st glass lined residential water heater 1st dedicated plant for mass production of glasslined water heaters / Exited automotive industry Entered China by opening WH plant in Nanjing Acquired State & American In US and GSW in Canada Entered water treatment business in China Opened residential WH plant in India Acquired Lochinvar to enter high efficiency boiler market 18
19 U.S. Water Heater Residential Market 2014 market share data Residential Market 50% 40% 30% 20% AHRI data + tankless: AOS actual shipments and AOS estimates of competitors shipments 10% 0% Other 19
20 U.S. Residential Water Heater Market Wholesale Retail Wholesale channel is 50% of the market Retail channel is 50% of the market Large Regional Distributors M Units A. O. Smith s customers 20
21 U.S. Water Heater Commercial Market 2014 market share data Commercial Market* TM 60% 50% 40% 30% 20% 10% 0% Other * Commercial water heater segment as defined by AHRI, total 2014 commercial units as reported by AHRI = 167,700 21
22 Thank you! 22
23 Developing a Future-Proof IoT Strategy Ron Bartos Director of Global Electronics and Sensors A.O. Smith
24 Developing a Future-Proof IoT Strategy Nolan Mondrow CEO and Founder Lockstate
25 Developing a Future-Proof IoT Strategy Wendy Toth Vice President Marketing Ayla Networks
26 Developing a Future-Proof IoT Strategy Ron Bartos Director of Global Electronics and Sensors A.O. Smith
27 Developing a Future-Proof IoT Strategy Nolan Mondrow CEO and Founder Lockstate
28 Developing a Future-Proof IoT Strategy Wendy Toth Vice President Marketing Ayla Networks
29 Developing a Future-Proof IoT Strategy Ron Bartos Director of Global Electronics and Sensors A.O. Smith
30 Developing a Future-Proof IoT Strategy Nolan Mondrow CEO and Founder Lockstate
31 Developing a Future-Proof IoT Strategy Wendy Toth Vice President Marketing Ayla Networks
32 Developing a Future-Proof IoT Strategy Wendy Toth Vice President Marketing Ayla Networks
33 Developing a Future-Proof IoT Strategy Nolan Mondrow CEO and Founder Lockstate
34 Developing a Future-Proof IoT Strategy Ron Bartos Director of Global Electronics and Sensors A.O. Smith
35 Developing a Future-Proof IoT Strategy Wendy Toth Vice President Marketing Ayla Networks
36 Developing a Future-Proof IoT Strategy Q&A Wendy Toth Vice President Marketing Ayla Networks Nolan Mondrow CEO and Founder Lockstate Ron Bartos Director of Global Electronics and Sensors A.O. Smith
37 Wendy Toth Vice President, Marketing Ayla Networks Nolan Mondrow CEO and Founder Lockstate Ron Bartos Director of Global Electronics and Sensors A.O. Smith
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