Ultra light ELAPHE* in-wheel motors www.in-wheel.com

Our purpose is… …to combine performance, economy and ecology in an in-wheel propulsion, that will take over the city car market. www.in-wheel.com Elaphe d.o.o.

City car market Currently populated by ICE cars: Smart Toyota IQ Volkswagen Lupo … Companies announced electric models: Renault-Nissan Mitsubishi Numerous specialized electric car companies www.in-wheel.com Elaphe d.o.o.

Automotive electrification Source: “International futures”; ….. The percentage of the electric city car market occupied by a car model depends on how it addresses key market drivers. 4

Key market drivers Vehicle purchase price Maintenance costs Fuel/energy cost Functionality Comfort Design Most of these drivers can be better addressed with an in-wheel electric drive than with current solutions. www.in-wheel.com 5

Current solution problems – Internal Combustion Engine Vehicle purchase price: Heavy power transmission parts (transmission, gearbox, differential) High number of auxiliary systems Expensive engine subframe Maintenance costs: Hundreds of moving parts Limited lifetime parts (oil and air filters, belts, sparkplugs,… ) Fuel cost: Very low propulsion efficiency Heavy vehicle High and unpredictable oil prices Engine not optimized for the typical driving cycle Other problems: Limited design options Environmental issues Elaphe d.o.o.

Current solution problems - Central electric motor Vehicle purchase price: Heavy power transmission parts (transmission, gearbox, differential) Bigger and heavier electric motor Maintenance costs: Still a number of moving parts Fuel cost: Heavy vehicle Engine not optimized for the typical driving cycle Average overall drive efficiency 60-65% Other problems: Limited design options Elaphe d.o.o.

ELAPHE* in-wheel solution Vehicle purchase price: Engine fitted directly into the wheel - no transmission parts Lower potential production price than competitive electric motors Up to 20% less energy storage needed (compared to central electric drive) Short development cycles Maintenance costs: Only one moving part Fuel cost: High propulsion efficiency Lighter vehicle Motor optimized for the typical driving cycle (average efficiency over 80%!) Other benefits: Design and functionality freedom Low environmental impact Elaphe d.o.o.

ELAPHE* electromagnetic topology Unique customization tool Breakdown of ELAPHE* technology benefits ELAPHE* electromagnetic topology Unique customization tool Drivers addressed ULTRA LOW MOTOR WEIGHT HIGH OVERALL EFFICIENCY FAST CUSTOMIZATION LOWER vehicle PURCHASE PRICE Lower motor production price Less energy storage Shorter development time REDUCED FUEL COST Less energy consumption Typical driving cycle analysis FUNCTIONALITY and COMFORT Low unsprung weight Customized properties www.in-wheel.com 9

Competition Direct advanced in-wheel motor design companies : Protean electric Toyo Denki Evans electric Indirect Stock electric motors: Siemens GE Chinese manufacturers … Stock electric motors are too heavy and big and can only be used as central electric motors. They inherit all the disadvantages of the central drive shown before.

Competitive advantages- Direct competition ELAPHE* patented electomagnetic topology 15 % lighter motor for the same performance 15 % lower production price Unique fast customization tool: Motor design takes days instead of weeks Increase in average energy efficiency Further weight and production price reduction (no over-dimensioning) Elaphe Team: Mixture of experience and ambition

ELAPHE team Gorazd Lampič, CEO Andrej Detela Founders: 7 years of experience in direct drive development Leading national expert in EVs and advanced energy sources Andrej Detela Inventor of the KDU robotic direct drive for HDS 20 years of experience in direct drive development 40 years of research experience Core research and PM: Gorazd Gotovac, Matic Franko, Joško Valentinčič Close cooperation with research institutions: Jozef Stefan Institute University of Ljubljana 12

Track record Elaphe*1 - proof of theory Elaphe*2 - Simplification of construction, cogging torque red. Elaphe*ET - 30 kW cont. power, cooling Elaphe*3 - Driveable scooter Elaphe*kolo - Bike Elaphe*Chebela - city electric car motor Elaphe*IM Elaphe*A1 2003 2005 2007 2008 2009 2010

ELAPHE* Chebela Small electric car project Local industry initiative in-wheel motors First motor prototypes already produced Start of production 2012 www.in-wheel.com 14

ELAPHE* product Customized off the shelf in-wheel electric drive ELAPHE* patented electromagnetic topology Customized with the Unique fast customization tool www.in-wheel.com 15

Key customers Specialized electric car manufacturers: Our market entrance point Flexible development co-design Aptera, Bolloré, Dok-ING, EDAG, Nice, Reva, Tesla, Think,…

TAM, SAM, SOM Total Available Market: Served Available Market: The total electric car market estimate for 2015 is 4.5 million and in 2020 17 million new vehicles At the average royalty of 50€ per motor this is 450 M€ in 2015 and 1.7 billion € in 2020 Served Available Market: For the electric city car niche the totals are 100 M€ in 2015 and 500 M€ in 2020 Share of Market: The expected market share is 10-15 % when working with specialized electric car manufacturers 17

Electric motor manufacturer Business model Position in the value chain: Custom development for the vehicle manufacturer Electric motor manufacturer Motor production EV manufacturer Production licensing Co-design ELAPHE Ltd

Business model Revenue model: Pricing: Average account size: Custom development, royalties Pricing: 250k -500k € for custom development 2-5% royalties (30 - 100€ per motor) Average account size: Typical production plan for a model by an electric car manufacturer: 30 000 vehicles/year Account size 3.5 M€ Sales model: Direct contact with the customers management and R&D department

Development roadmap Product development: Mechanical parts standardization High voltage controller development Team and facilities expansion: Controller development and engineering team expansion Prototyping and testing facilities Business focus: IPR Trademark recognition Development of long term strategic partnerships

www.in-wheel.com

Deal ELAPHE LTD. Technology park, Teslova ulica 30, 1000 Ljubljana, Slovenia-EU Tel: +386 1 477 66 56 Mail: gorazd@elaphe-ev.com Web: www.in-wheel.com