Copyright Elektrobit (EB) 2010 / Company confidential

EB Automotive Software Overview

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, 20.04.23, Slide 2

Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 20. April 2023, 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

Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 20. April 2023, Slide 4

EB Automotive Software Figures

CAGR: 26%

Netsales

2004 2005 2006 2007 2008 20092003

• Software products and services for Electronic Control Units,Infotainment and Driver Assistance

• Net Sales in 2009: MEUR 61,5

• Employees: ~700 (end of 2009)

Japan: TokyoChina:

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, 20. April 2023, Slide 5 Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 20. April 2023, Slide 5

EB Automotive SoftwareGlobal Presence

Austria:Vienna

Copyright EB 2007 www.elektrobit.com, 20 April 2023, 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

Copyright Elektrobit (EB) 2010, Company confidential www.elektrobit.com, 20.04.23, Slide 7

Middleware, Real-time Operating Systems

Hardware

FunctionSoftware

Configuration andDevelopment Tools

Human Machine Interface

Networking

SOP support, service, maintenanceSOP 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

QNXQNXWinCEWinCE

HW1 HW2 HWn…

ECU Configuration and Validation (EB tresos®) ECU Configuration and Validation (EB tresos®) ADAS and Navi Configuration(EB Assist ADTF)

ADAS and Navi Configuration(EB Assist ADTF)

…

…

HMI Model and Framework (EB GUIDE)HMI Model and Framework (EB GUIDE)

…

ApplicationModule 1

ApplicationModule 1

ApplicationModule 2

ApplicationModule 2

ApplicationModule 3

ApplicationModule 3

Navigation (EB street director)

Navigation (EB street director)

ApplicationModule n

ApplicationModule n

LinuxLinuxAUTOSAR, OSEK (EB tresos AutoCore/OsekCore)AUTOSAR, OSEK (EB tresos AutoCore/OsekCore)

FlexRay, CAN, LIN Config and Protocols (EB tresos®)FlexRay, CAN, LIN Config and Protocols (EB tresos®)

DriverAssistance

DriverAssistance

Infotainment Configuration

Infotainment Configuration

Map InterfaceMap Interface

MOST, TCP/IPMOST, TCP/IP

Infotainment SuiteInfotainment Suite

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, 20.04.23, Slide 8

Copyright EB 2007 www.elektrobit.com, 20 April 2023, Slide 9

The industry will move to 100% AUTOSAR in the next five years

AUTOSAR56%

AUTOSAR

100%

not coveredbasic functionslocated above

the RTE

CompatibilityModules

28%

BMW specific

16%

AUTOSAR15%

Other Std. 8%

BMW specific

77%

2008* 2015*2011*

Source: BMW, in HanserAutomotive 3-4/2010

*) year of introduction to mass production

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, 20.04.23, Slide 10

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, 20.04.23, Slide 11

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, 20.04.23, Slide 12