1. SMART SENSING FOR AUTOMOTIVE
Ilario Gerlero | Engineering Manager

2. Sensor Market Forecast
The need of sensors is critical in Industry
Sensor Market Forecast
Global: 11,3% expected growth (source Allied Market Research)
Automotive: 6,7% expected growth (source Strategy Analytics)
Automotive
Industrial needs
Diagnostic/Prognostic
Reliability
Performances
Cost saving
Emission limits & Electrification
Safety improvement & Autonomous driving
Industry 4.0
Predictive Maintenance & Diagnostic
Process Safety & Optimization
Software Sensors are Key Technological Enablers

3. Direct Virtual Sensing
The Virtual Sensors Opportunity
Improvement in getting critical on-board information
Cost Reduction
Laboratory measures available on-board
Information Reliability Industrially Validated
Direct Virtual Sensing
(DVS®)
Autonomous Driving
Electrical Vehicles
Connected Tires
Comfort
Emissions
Fleet Maintenance

4. Focus on the Vehicle Emissions
NOx is our entry segment
Mandatory by rule (EURO 6c – US Tier 3)
No others VS ready
Cost savings €70 per vehicle
e.g. :
~ 518 kU diesel-engine / year in Europe
x €70
~ €36 M / year
(SOURCE: ACEA)

5. Global Automotive Sensor Market
NOx Addressable Market
CAGR 3,5% ( )
$27,6 bn
Global Automotive Sensor Market
Global NOx Sensors Market
~ $893M
Addressable Market ~4% $35,73M of NOx Global Market in 2023
(SOURCE: Strategy Analytics 2017)

6. Direct Virtual Sensing Technology Industrial & Academic Partners
VS Products Based on AI technology
Direct Virtual Sensing Technology
DVS®
Two directions
DVS® as software platform
DVS® as microcontroller hardware device
What are we doing
Strategic partnership with first industrial players
Market presence in USA/Canada, China and Europe
High skilled technical seniorities
Investment in IP assets (3 Patents, 4 Trademarks, Trade Secrets )
Industrial & Academic Partners

7. Customers & References
Automotive
Aerospace
ICT & Factory 4.0
Energy & Environment
Academy

8. Road Map DVS/NOx development plan Years NOx/DVS Industrial Prototype
Market Launch
NOx 4% target market share reached
1st Car Maker Application
Industrialization & Commercialization
1st vehicle commercial exploitation
Industrial Plan Improvement
Market deployment (extension to further vehicles)
Extension to other industrial applications
2018
2019
2020
2021
2022
2023
2024
Years

9. NOx Financial Projection Further Application Available
Business Projection
NOx Financial Projection
Further Application Available

10. Targets for Partnership / Acquisition Exits of Similar Companies
The Strategy
TARGET COMPANY +
Targets for Partnership / Acquisition
Exits of Similar Companies
Spinoff of Linkoping University
Acquired in 2014 by Volkswagen
Spinoff of Leuven University
Acquired in 2012 by Siemens

11. Competitors Effective Experience in Engineering AI Applications for
Virtual Sensors are strategic technology innovation for big players and innovative SMEs
OEM & Tier1
The DVS® has overcome their benchmark in important industrial application (Sideslip, Nox, Temp, etc..)
Modelway’s advantages:
Recognized experience in automotive engineering
Wide portfolio of developed applications
Innovative SMEs operating in AI
Effective Experience in
Engineering AI Applications
for
Critical Industrial System

12. 1 What are we looking for 2 Summary of Modelway needs
Financial funding to support the product development phase and the road map roll-out
Support of experienced professionals in strategy deployment, operations enhancement and networking 1 2

13. SMART SENSING FOR AUTOMOTIVE
Comfort
Autonomous Driving
Emissions
Electrical Vehicles
Fleet Maintenance
Connected Tires
Ilario Gerlero

14. Company Mission Support the Digital Transformation in industry
exploiting the data to improve information on-board the systems
Who we are
Software engineering company experienced in industrial innovation based on Artificial Intelligence
Specialized in developing innovative “Virtual Sensors“ directly from data
DVS® - Direct Virtual Sensor
Breakthrough Technology in the Sensor Market
Reliable solution to get critical information on-board the systems
Improvements in Control, Diagnostic and Maintenance

15. The Team
Professionals with solid experience in Industrial Innovation and Artificial Intelligence
Mario Milanese
Founder and CEO
Full Prof. at POLITO
Stefano Milanese
Ilario Gerlero
Carlo Novara
Business Dev. Manager
Cofounder of 2 Start-Ups
Engineering Manager
Expert Proj. Management
Scientific Coordinator
Ass. Prof. at POLITO
Stefano Mosca
Stefano Mosca
Giorgio Roberto
Mario Bonansone
Administration
Expert in Cofounded Proj.
Industrial SW Engineer
Expert in embedded sw
Machine Learning Engineer
Expert in ML sw design
Mauricio Lotufo
PhD in Control Engineering
Expert in Control sw Design

16. Expected figures in 5 years:
DVS/NOx: Financial Projections
Rev = €18,9M
Break Even
Expected figures in 5 years:
3 car makers
540 kUnits
35€/unit rev.

17. Market Attractiveness Competitive Advantage
Growing Opportunities
NOx is the first product application of our technology !
High
Market Attractiveness
Med
Low
Low
Medium
High
Competitive Advantage
High
Medium
Low
CAAGR :
= 100 M€
(SOURCE: Strategy Analytics 2017)

18. Business Model Strong industrial partnership Revenues:
e.g.
Embedded
SW or HW
Revenues:
Fix :  Product supply and Licensing
Variable:  Revenue sharing on customer savings
 After Sales Services

19. Conventional VS Technique
DVS Competitive Advantage
DVS overcomes conventional Virtual Sensors drawbacks
Conventional VS Technique
DVS Technique
EXPERIMENTAL DATA
EXPERIMENTAL DATA
DVS METHOD
SYSTEM MODEL
FILTERING METHOD
DESIGNED
EDVS
DESIGNED VS
Drawbacks
Benefits
Only approximate estimates achievable
Poor reliability vs. operational condition
System modeling is not required
Provides optimal solution

20. Real-Time data from Engine Control Unit
Appendix: NOx Direct Virtual Sensor
NOx physical sensor is substituted by the DVS/NOx which estimates NOx from data available on-board
NOx Sensor
DVS/NOx
Real-Time data from Engine Control Unit
Bosch
Continental
NGK
Delphi …

21. Barriers to Competition
IP - Proprietary Software Method
3 Patents (Basic methods and SW development)
Trade Secrets (i.e. 8 weeks time to delivery)
4 Trademarks
Preferred supplier chosen by leading electronic and testing companies