eBike Market Trends US eBike Market Trends 1 Jonathan Weinert, Sales and Marketing Manager, Bosch eBike Systems, Americas Dec 3rd, 2015 – eBike Summit Hi – my name is Jonathan Weinert, I work for Bosch eBike Systems North America, and I’m here to talk about a recent survey we completed in October which sheds some light on our most important stakeholder: eBike end-consumers. Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US eBike Market Trends Introduction to Bosch Before I delve into these two subjects, I’d like to give a brief introduction to Bosch, for those not familiar with our company. Our founder 129 years commercialized some very important automotive products, like spark plugs and alternators. Back in those days, the bicycle important to his business to get to and from his customers efficiently. Products “invented for Life”, products that bring benefits to individuals, the environment, and society as a whole. The eBike embodies this perfectly. Starting with Robert Bosch 129 years ago, our mission has always been to create products “Invented for life.” Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

Pedal-assist eBike Market in Europe US eBike Market Trends Pedal-assist eBike Market in Europe Sales in thsd. pcs CAGR14-22 +16% As Larry mentioned, this technology is booming in Europe. Last year, 1.2 million eBikes were sold in Europe alone and is expected to triple by 2022. As a comparison, the US bike industry sells about 2.5 million bicycles per year. Pedal-assist eBikes enjoy tremendous success in Europe. Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

End Consumer Online Survey US eBike Market Trends   End Consumer Online Survey Respondents Gender F M Bike owner: 64 323 eBike owner: 299 Non Bicycle owner 18 38 Total per gender 146 660 Total 806 US nationwide Distributed via IBDs and eIBDs Sept-Oct 2015 „Enter for the chance to win an eBike“ Survey covers the who, what, where, when, why, and how of eBike end-consumers Automotive Electronics Internal | AE-EB/RBU-AM_KM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

Who Rides? US eBike Market Trends 59% The third benefit of eBikes is that they seem to be attracting older adults (50-69 especially) to get out and ride. The chart on the left shows the age distribution of people that responded to our survey which was distributed mainly through bike and eBike dealers. The reasons they gave for riding an eBike – most important was for better health and for fun, as shown in the chart on the right. “Baby Boomers” are the strongest eBike consumer group. They ride for better health, fun and to get from A to B. Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

eBike owners in general are well-educated, mainly couples, US eBike Market Trends   Who Rides? Mainly couples eBike owners in general are well-educated, mainly couples, with wide income range. Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

How do they use their eBike? US eBike Market Trends US eBike Market Trends   How do they use their eBike? They use it most often for recreation, exercise, and commuting. Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US eBike Market Trends US eBike Market Trends Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

eBike owners ride more often than regular bicyclists. US eBike Market Trends How often do they ride? Avg. frequency: Bike 1 day per week Avg. frequency: eBike 3.5 days per week Source: Sept 2015 Bosch online survey of bicycle and eBike owners. eBike (n=363) vs. Bike(n=387) Now let’s get into some of the social benefits that eBikes bring – Larry posed this question as well in his presentation. To understand this, we conducted a large nationwide survey of bike owners, eBike owners, and non-bike owners. The first thing we tried to understand was, how often do you ride? What we found is for the people that replied to our survey, eBike owners an average of 10 days per months, whereas bicycle owners rode an average of 3 days per month. eBike owners ride more often than regular bicyclists. Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

Bicyclists ride more often after conversion to eBike US eBike Market Trends How often do they ride? Source: MacArthur (2015) Final Report (Forthcoming): Kaiser E-bike Pilot Project In another study conducted by John MacArthur at Portland State University, they loaned eBikes to people in various parts of Portland. They asked survey participants before the study how often they ride. You see their answers represented by the blue bars. X axis represents frequency of bike use, Y axis is the % of people who rode that frequenty. The overwhelming majority of people rode less than a few days per month. During their participation in the eBike demo program, use increased, as shown by the red bars. Bicyclists ride more often after conversion to eBike Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

Special thanks to: US eBike Market Trends The Light Electric Vehicle Education and Research (LEVER) Initiative, founded in 2014, by University of Tennessee – Knoxville and Portland State University. LEVER is a consortium of academia, industry, government and non-government organizations aimed to address collective research needs surrounding a new class of vehicles, lightweight and low speed electric vehicles, of which e-bikes are the most important sub-class. Four research thrust areas: 1) sustainability and safety impacts 2) behavior and market 3) physical activity and health and 4) opportunities for sustainable urban freight. The LEVER Initiative is a catalyst for more strategic research in these areas, and this proposal is motivated by its activities. http://tesp.engr.utk.edu/lever.php Automotive Electronics Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.