BBM* purchasing Transformation & Partnership Adam Willmott Senior Vice President Mobility Purchasing Quality (M/PQ) * Bosch sector mobility solutions

Why Bosch as a partner?

BOSCH GROUP Highlights of the 2018 business year Sales €77.9bn1 Research and development 69,500 associates worldwide +5,200 EBIT2 from operations €5.3bn1 +37 % 52m web-enabled products sold €47bn1 Mobility Solutions sales revenue Headcount rises to 410,000 +7,800 1 Preliminary, rounded figures from business operations 2 earnings before interest and taxes

30projects €5bn >1m Electromobility: on track for market leadership BOSCH GROUP Electromobility: on track for market leadership 30projects 100m light electric vehicles will be produced by 2020 worth several billions of euros were acquired by Bosch in 2018 €5bn sales with electromobility is the Bosch target for 2025 20% of new vehicles will be partially electrified with 48-volt battery systems by 2030 >1m cars around the world are equipped with Bosch electric or hybrid components From bicycles to trucks, Bosch is electrifying the powertrain

4,000 €4bn 1 3 Automated driving: game changer for individual mobility BOSCH GROUP Automated driving: game changer for individual mobility $60bn market volume for automated driving by 2029 1 4,000 engineers for automated driving €2bn sales with driver assistance systems in 2019 1 3 of accidents in Germany could be prevented by automated driving 3 €4bn spent on accident-free mobility by 2022 More than 30% less fuel consumed by driving automatically 2 >2.5m driverless, on-demand vehicles in China, the U.S., and Europe by 2025 1 Source: Roland Berger Source: KEConsult Source: Bosch accident research

Business Sector Mobility Solutions (BBM) defining roles in future mobility value chain Based on Managed Services Provider (MSP) requirements Maintains & operates the fleet as a service Fleet operator Asset provider According to MSP requirements Provides capital for financing and/or insurance of fleet According to user requirements Manages the mobility eXperience Mob. eXperience P Mob. Service P Designs & offers mobility services Component provider According to OEM specification Applicate & validates component System supplier According to OEM requirements Integrates component & subsystem Vehicle manufacturer According to user requirements Vehicle integration, validation and approval Mobility Service Enabler ID-management, data fusion and data analytics Current BBM scope BBM scope tbd

Bosch Mobility Solutions: The Future of Mobility BBM with components and systems expertise for electrification

Emission free mobility The future of Powertrain Solutions (PS) PS eMobility Becomes mass market in Passenger Cars (PC) / Light commercial Vehicles (LCV) and Commercial Vehicles / Offroad (CV/OR) for specific cases incl. fuel cell CV/OR ICE Growing importance upgraded & electrified Powertrain with high potential PC internal combustion engine (ICE) Remains highly important and grows selectively. Megatrends Market trends Electric Vehicle Hybrid + Fuel cell Electric Vehicle 48V CV/OR ICE PC ICE CO2 free mobility Emission free mobility in cities Shared mobility Highly automated driving New mobility concepts Strategy Powertrain Solutions extend ePowertrain solutions Electrify ICE Upgrade … …combustion engines for future demands Portfolio Powertrain Solutions 9 © Robert Bosch GmbH 2019. Alle Rechte vorbehalten, auch bzgl. jeder Verfügung, Verwertung, Reproduktion, Bearbeitung, Weitergabe sowie für den Fall von Schutzrechtsanmeldungen.

Extended BBM customer landscape Quantity 2018 >2025 MSP MxP Megatrends CO2 free mobility < 50 500 Fleet operator Emission free mobility in cities Customer segment Shared mobility Highly automated driving New mobility concepts Vehicle manufact. ~ 300 ~ 400 BBM Component supplier System partner Mobility enabler

Highly automated driving Bosch Mobility Solutions: The Future of Mobility Stress- and accident-free, thanks to connectivity and automation Megatrends Connectivity Hardware and software for vehicle-to-x communication Automated driving “sense – think – act” CO2 free mobility Emission free mobility in cities Shared mobility Highly automated driving New mobility concepts Electrical and Electronic (E/E) architecture More electronics and software content per vehicle

What does all this transformation mean for you as our supplier? BBM Transformation & Partnership What does all this transformation mean for you as our supplier? If you want a good harvest, you need to sow the seeds! Key messages: BUSINESS EXCELLENCE = being able to fund the future Massive upfront investments needed

What is your USP? (unique selling point) Staying ahead of the rest! You all manufacture commodity products, few of you are already operating within future high tech fields

Value stream Optimization PSD Portfolio – 3 Pillar We drive competitiveness and develop sustainable solutions with our lean expertise Task Force (Quality / Delivery) Cost workshop Value stream Optimization (Cost / Quality / Delivery) Experience Exchange ENABLING - Focus: Mid and long term - Supplier Learning Group Connected Industry STRATEGIC - Focus: Long term - Assessments (LMA / FPA) Pre-SOP (Planning Guideline) OPERATIVE - Focus: Short term -