Page 1 EGNOS CS/Galileo regulated tracking & tracing services for freight transport EGNOS/Galileo services benefiting to regulated applications, Brussels Telespazio Antonella Di Fazio

Page 2 Market environment EGNOS tracking & tracing services Market analysis outcomes Roadmap for products & services development Contents

Page 3 Complex and fragmented market (type of transported goods, mode of transport, type of transport/involved actors) Different regulatory/policy regimes depending on the specific transport: Transport of dangerous material regulated by EU and National legislations Logistics Action Plan (eFreight, Green corridors and Urban logistics) Nation policy initiatives to support ICT in Freight Transport Sector key market figures: 78 billion tkm dangerous goods transported via road in 2005 in EU-25 and Norway (source: EUROSTAT) units for the global fleet of maritime containers in 2007 (source: World Container Census 2008) Present best practices using GPS in combination with other technologies for public and commercial benefits Market environment

Page 4 Combined use of EGNOS OS and CS (CS-NAV) in the Service Centre Different receiver technologies (sat/terrestrial telecoms) Door sensors Pre-commercial tracking & tracing services tailored on user needs and/or regulation, and based on use of Protection Level EGNOS tracking & tracing services Demonstrations in live operative conditions Mit Nucleare/ENI Italcontainer Interporto Bologna EDAS Beta test on-going since April 2009

Page 5 Main results Use of EGNOS CS-NAV solution enables EGNOS tracking & tracing in difficult operational conditions Added values are: guaranteed positioning augmentation of availability ENI has considered EGNOS enhanced stability and accuracy an interesting feature for future uses ENI started to use EGNOS in the operative system for hydrocarbon transport in Europe ( 100 new EGNOS receivers in the last year thanks to MENTORE) Interest of users and Institutions is focused on specific transport (dangerous goods, valuable goods, specific goods - ex. tobacco) No general introduction for EGNOS Opportunities in Urban logistics strongly depend on city mobility policies

Page 6 The reference business model B2B, B2Institutions Based on the exchange of data through the VAS SP (regulated business) Two levels of services: Basic - EGNOS guaranteed T&T to Authorities/users Value added - aggregation of data to users Regulated data exchange Compliant to eFreight and open to new actors (ex. insurances) Different actors for Urban logistics Platforms under development in Europe to support similar business models in the next years (role of EGNOS?)

Page 7 Results of the preliminary business plan Case: dangerous goods Potential market in Italy (road) ~ trucks + 2% per year Rapid GNSS market penetration due to regulation Main drivers: Potential Market, Terminal Cost, Telecom Cost, EGNOS fee Break-even point = 2012 Free cash flow = 37M A quite profitable business after only 3 years Free cash flow + 5M/y

Page 8 Potential market in Italy/valuable goods ~ TEU (i.e. 36% of total traffic in Italy) + 7,7 % per year Rapid GNSS market penetration due to regulation Main drivers: Potential Market, Market growth, Terminal Cost, Telecom Cost, EGNOS fee Free cash flow Revenues Break-even point = 2016 Free cash flow = 11 M + 3.5M/y A low profitable business after 7 years Results of the preliminary business plan Case: freight multimodality

Page 9 Potential market in Europe (city > inhabitants) ~ vehicles 50% GNSS market penetration in a commercial scenario Main drivers: EGNOS fee, Service bundling, number of inhabitants Break-even point = mid-2012 Free cash flow = 12,7M A profitable business after only 3.5 years Costs Revenues Free cash flow + 2 M/y Results of the preliminary business plan Case: urban logistics

Page 10 Roadmap for products & services develop. Up to Galileo FOC Private investments needs public early actions and long-term commitments: At service infrastructure level (EDAS?) At policy level to stimulate and regulate the market

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