1. Applied Market Intelligence Auto Embedded Software: EU Competitiveness European Commission Project: IPTS-2009-J04-17-NC JRC/IPTS EU is currently in strong position Future holds increased risks

2. iSuppli Corporation – 2 Copyright  2000-2009 iSuppli Corporation. All Worldwide Rights Reserved. Confidential – Patents Pending 2010 2015 2020 Autonomous Driving SW V2V & V2I Software Powertrain: Combustion Infotainment Systems Integrated ADAS SW Chassis & Body Safety & Driver Assist EU Software Competitiveness Overview Powertrain: Combustion Infotainment Systems Chassis & Body ADAS & Driver Assist Autosar API MS Auto QNX Genivi Autosar MS & QNX Genivi? QNX & MS Genivi, Autosar, Other API Powertrain: Electric Autosar, Other API? Powertrain: Combustion Chassis & Body Powertrain: Electric Autosar Autosar, Other API Genivi, Autosar, Other API EU Strength EU Good/OK Unknown

3. iSuppli Corporation – 3 Copyright  2000-2009 iSuppli Corporation. All Worldwide Rights Reserved. Confidential – Patents Pending EU Embedded Software Competitiveness CategoryKey InformationOther Information Software Standards Activities  EU AUTOSAR leadership  GENIVI: USA & EU leadership  EU can make GENIVI a standard  GENIVI outside infotainment?  AUTOSAR updates are planned  Led by Intel and BMW  EU luxury OEMs play key role  ADAS, V2X and other apps Operating System Software  EU has led OSEK software  EU has led AUTOSAR specs  AUTOSAR OS product: leader  Infotainment OS: EU not leader  OSEK importance to fade: 2015  AUTOSAR OS updates planned  AUTOSAR OS  commodity  QNX and Microsoft are leaders Driver SW  EU leads AUTOSAR driver SW  Leadership not needed  Driver SW commodity by 2015  Product from many suppliers Software Tools  AUTOSAR tools: EU leadership  Other tools: Strong EU firms  Tools being integrated  USA tool firms are entering  Strong USA PC-related tool firms  EU & USA are main competitors

4. iSuppli Corporation – 4 Copyright  2000-2009 iSuppli Corporation. All Worldwide Rights Reserved. Confidential – Patents Pending EU Application Software Competitiveness CategoryKey InformationComments Core Auto Applications  Powertrain: EU leadership  Chassis: EU leadership  Others: Mostly EU leadership  EU need to lead EV SW  Standards may erode lead  Commoditization is a threat Infotainment  EU need to improve  App stores create more risk Auto Apps Stores  Wide open competition  Potential software upheaval  Much uncertainty  EU need to invest & innovate ADAS Software  EU: ADAS & sensor expertise  Software & sensor systems  Leverage into SW leadership  AUTOSAR or GENIVI platforms? V2X Software  V2X is software intensive  Layered software architecture  Some from PC & CE software  EU/USA/Jp lead standards  V2X deployment lead needed  EU need to lead in V2X software  CVIS is defining architecture  EU need to invest more  Coordination with USA & Japan  Regulation would be leadership Autonomous Driving SW  Mature V2X application  Who will lead these apps?  Emerging post-2020  EU need to invest in this field

5. iSuppli Corporation – 5 Copyright  2000-2009 iSuppli Corporation. All Worldwide Rights Reserved. Confidential – Patents Pending Software Value Application SW Driver OS 201020152020 Software Commoditization Counter: SW Renewal Application SW Driver New Driver Better OS OS Version 2 OS Version 3 Better OS More Drivers Enhanced OS Better Apps Application Better Apps New Apps More Apps New Apps

6. iSuppli Corporation – 6 Copyright  2000-2009 iSuppli Corporation. All Worldwide Rights Reserved. Confidential – Patents Pending EU Software Competitiveness Summary  EU is in a strong competitive position  AUTOSAR standard is providing core auto software lead  AUTOSAR can be a guideline for future great achievements  EU software position has increased future risk  Standards create software commoditization eventually  EU needs to secure EV software leadership  Second to USA in infotainment software  Faster auto and software development cycle  Apps store software trend creates more risk for EU  Software innovation is required, which depends on investment: education, R&D & business climate Can EU retain auto software leadership with paradigm shifts in technology, business models, applications and innovation? What are the keys to retain EU software leadership?