1. Copyright Elektrobit (EB) 2010 / Company confidential EB Automotive Software Overview

2. Agenda EB in a Nutshell How can we make money within EB and Europe with commodity software How to find the right Resources Continuous Innovation How to overcome the limited appetite for Investment within Europe Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16.10.2015, Slide 2

3. Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16. Oktober 2015, Slide 3 EB (Elektrobit) Overview EB’s customers are the leading companies in the automotive and wireless markets EB provides demanding embedded software and hardware solutions EB’s technical core competences are: -Automotive-grade software -Wireless technologies and solutions -System and software architectures Net sales of MEUR 154 in 2009 Listed on OMX Nordic Exchange Helsinki Approximately 1600 employees in 7 countries, 3 continents

4. Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16. Oktober 2015, Slide 4 EB Automotive Software Figures CAGR: 26% Netsales 200420052006200720082009 2003 Software products and services for Electronic Control Units, Infotainment and Driver Assistance Net Sales in 2009: MEUR 61,5 Employees: ~700 (end of 2009)

5. Japan: Tokyo China: Beijing, Shanghai USA: Novi (Detroit), Bothell (Seattle) Germany: Erlangen, Munich, Gaimersheim (Ingolstadt), Böblingen (Stuttgart), Braunschweig (Wolfsburg) France: Paris Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16. Oktober 2015, Slide 5 EB Automotive Software Global Presence Austria: Vienna

6. Copyright EB 2007 www.elektrobit.com, 16 October 2015, Slide 6 Current State in Automotive Industry – Complexity, Cost & Quality Challenges The amount of electronics in cars is increasing steadily Within the car electronics, the amount of software is expanding rapidly The classical software issues have emerged – scalability, performance, re- usability, maintainability and management of software versions constitute a worsening cost and quality problem

7. Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16.10.2015, Slide 7 Middleware, Real-time Operating Systems Hardware Function Software Configuration and Development Tools Human Machine Interface Networking SOP support, service, maintenance EB Automotive Software Offering Driver Assistance and Infotainment  Built-in Systems, Consumer Devices  Electronic Control Units (ECU) Body Control, Chassis, Powertrain █ Customer █ EB Software █ e.solutions █ 3rd Party QNX WinCE HW1HW2HWn … ECU Configuration and Validation (EB tresos ® ) ADAS and Navi Configuration (EB Assist ADTF) … … HMI Model and Framework (EB GUIDE) … Application Module 1 Application Module 1 Application Module 2 Application Module 2 Application Module 3 Application Module 3 Navigation (EB street director) Application Module n Application Module n Linux AUTOSAR, OSEK (EB tresos AutoCore/OsekCore) FlexRay, CAN, LIN Config and Protocols (EB tresos®) Driver Assistance Driver Assistance Infotainment Configuration Map Interface MOST, TCP/IP Framework Infotainment Suite

8. Money is not in commodity software, but in generating commodity software Commodity software vs. commodity hardware (e.g. screws) –expected to simply work –not competitive if manufactured –equipment to produce may be competitive Commodity requires standardization –something not standardized will be too expensive AUTOSAR BSW may become commodity in the future –ability to generate high quality BSW will not be commodity –tools will become more important than BSW –Unification is coming (see illustration on next slide) Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16.10.2015, Slide 8

9. Copyright EB 2007 www.elektrobit.com, 16 October 2015, Slide 9 The industry will move to 100% AUTOSAR in the next five years AUTOSAR 56% AUTOSAR 100% not covered basic functions located above the RTE Compatibility Modules 28% BMW specific 16% AUTOSAR 15% Other Std. 8% BMW specific 77% 2008*2015*2011* Source: BMW, in Hanser Automotive 3-4/2010 *) year of introduction to mass production

10. Currently, AUTOSAR experts are rare. Efficient education is urgently needed. Today, expertise is with those who need the experts –Internal training programs are the main way of education –These trainings are already offered to users as well Market demand for AUTOSAR experts is hardly recognized –Only few colleges have AUTOSAR in their curricula –Automotive suppliers are not fully aware of the demand Joint training activities of all players seem reasonable –Bring OEMs, Tier1s, micro suppliers and experts together Quick AUTOSAR adaptation is a competitive advantage. Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16.10.2015, Slide 10

11. Trend: limited R&D investment and willingness to take risks R&D budgets in the European automotive industry are still limited. Customers move risks to their suppliers. All suppliers throughout the value chain are requested to pre-finance R&D costs to significant. More R&D investments need to allocated to production volumes (payment per shipped car/device). With an average of 3 years development time the ROI will take up to 5 years with significant risks and financing costs for the supplier. Only few financially well equipped companies can bear these investments. Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16.10.2015, Slide 11

12. Trend: Seamless Consumer Device Integration With the growing adaption of Digital Media Players and Smartphones the seamless integration of these devices with the car becoming an increasingly important topic for consumers. While this has been driven previously from European Automotive OEMs and handset manufacturers now the smartphone innovation happens in the US. Ford Sync is a good example for smart approaches to the device interaction with the car. EU car industry needs to drive this topic again. In our opinion CE4A alone is not sufficient. Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 16.10.2015, Slide 12