mod. fmd1402 november 2005 cobra automotive technologies 1 milan, 11 november 2005 presentation...

MOD. FMD1402

November 2005Cobra Automotive Technologies 1

Milan, 11 November 2005

Presentation

Cobra Automotive Technologies

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Aldo Monteforte, board director, Cobra Automotive Technologies SpA

Terra Nova Partners (Milan, San Francisco) Nomura International (London)

Stanford Graduate School of Business (Stanford, California)

Presenter

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Cobra Automotive Technologies (“Cobra”)

Our vision: Global Vehicle Security Designer

Focus on mitigating risks associated with ownership and management of mobile assets

Revenues organically doubled between 2001 and 2005

330 employees, with 80 engineers and software developers

17% CAGR in 01-05

Consolidated Revenues

40.9

48.554.0

66.3

80.5

0

20

40

60

80

2001 PF 2002 PF 2003 PF 2004 PF 2005 E

€m

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Cobra’s value proposition

Owner / User

Leasing co/insurer

Owner

OwnerUser, Vehicle Maker

OwnerThird parties

OwnerInsurer

Main victims

Location Based ServicesFraud

Location Based ServicesBreakdown

Location Based ServicesUnauthorised use

Antitheft SystemsLocation Based Services

Theft

Parking Aid SystemsLow speed-accident

Location Based ServicesHijack

Cobra solutionRisk class

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Cobra’s value proposition

Location-based services

Stolen-vehicle recovery

Fleet management

Security electronics

Antitheft systems & components

Parking aid systems

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Location based services drill down

information and control messages to and from vehicles via an integrated, on-board gps/gprs device

Information and controls are managed through an always available, Internet based centralised server, that store, analyse and presents information in easy-to-use, mapping format to authorised subscribers

Scaling leverage inherent in single platform, recurring revenue model offers opportunity to derive increasingly higher margins from growing subscriber base

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Cobra Platform: telematics and electronics technologies integrated to deploy location based services

Control Room

Call Center

Help Desk

Map Ser

News: 09/2005

Porsche AG has nominate Cobra to serve after theft recovery service

in 27 countries

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Control Room 24h*7d

Vocal menu with only “theft option and Transport and Garage Mode setting”

Vocal menu with “call center option”

Voice, Fax or e-mail for alarms

Value added services in case of theft

Control Room 24h*7d


European Customer Segmentation based on car value to be protected (to be personalised in every country)

Control Room 24h*7d


Vocal menu with “call center option”

Voice, Fax or e-mail for alarms

Value added services in case of theft

Vocal menu with “vocal application option”

Web Application

Value added services in any case

“Proactive theft detection and

tracking”

“Tracking after customer theft

declaration”

15K€-25K€ 25K€-40K€ more than 40K€

‘Always in touch’

‘Alerts & recovery’

‘Track the car’

THACHAM CAT 5 HOMOLOGATED

Private End User Service features

COBRA Location Based Services for Stolen Vehicle Recovery

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The case of car theft in Europe

Sources: Europol 2004

200

400

600

800

1.000

1.200

1.400

2002 2003

# C

ar s

tole

n (

.000

)

67% Recovered

rate

33% Not recovered

rate

57% Not recovered

rate

43% Recovered

rate

1.150

1.000

Growth of vehicle stolen and not

recovered (from 380.000 to 570.000

in one year)

No other type of criminal activity is as

lucrative for such minimal risk

Estimated criminal revenues of €8,5

billion

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Control Room:

Theft management

Customer notification

After theftDuring theft

Diagnostics and Comfort features

• Battery level • ICD battery back up level• Speed alert• Vehicle tracking

Maintenance/Transport

Daily use

• Sabotage

• Theft of the keys or car-jacking

• Unauthorized movement

• Attempt to start engine when system is set

• Shock detection• Sabotage of GPS antenna

Cobra Server

• customer sets the system accordingly (web or voice application)

Theft attempts detection

Arm/Disarm the system• Can be done through

radio key, driver card or the vocal application

Each country offers several differentiated

services of car recovery

Recovered car

Authority intervention

BLU PROFILE supported only by ICD12

contacts the customer tracks the stolen car

each 30 seccan send commands

such as immobilisation when the car is not running and dissuasion (blinker and horn)

COBRA Location Based Services for Theft Risk Management

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COBRA Location Based Services for Fleet Management

ReportsFleet view Settings

Vehicles Information :

Fleet Name:

John smith – Vehicle 2

Login: user1

e-Fleet Application

10 min Location : A8 antibes-nice

mike amer – Vehicle 1

20 min Location : Villeneuve

Robert smith – Vehicle 9

10 min Location : Biot main street

Jeanna bar – Vehicle 5

15 min Location : Cros cagnes

Map filter: Filters list + -

My Fleet 1

Fleet

Monitoring

Vehicle identifier :

Fleet Name:

John smith – Vehicle 2

e-Fleet Application

7h20 – Nice tier station

Mon - 10/09/2005 - Trip1

Vehicle 2

My Fleet 1

7h50 – Antibes motorway toll

8h20 – Roquebrune motorway toll

8h50 – Aix en Provence motorway toll

25 km

Distance

-

45 km

49 km

Duration

-Toll

2

25 min

45 min

49 min

25

15

29Total : 119 km 1h 59 min 69 euros

7h20 – Nice tier station

Wed - 12/09/2005 – Trip 1

7h50 – Antibes motorway toll

8h20 – Roquebrune motorway toll

8h50 – Aix en Provence motorway toll

25 km

Distance

-

45 km

49 km

Duration

-Toll

2

25 min

45 min

49 min

Total : 119 km 1h 59 min 69 euros

Total Report : 238 km 3h 58 min 138 euros

25

15

29

ReportsFleet view Settings Login: user1

Fleet VehicleVehicleVehicle TrackTrackTrack

Monitoring

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RCA: Pay As You Drive

Le compagnie assicurative, a livello europeo, introducono nuove soluzioni commerciali caratterizzate dalla

attivazione di Location Based Services (LBS); le soluzioni sono segmentabili in quattro principali categorie:

Polizza Premium

RCA: Pay Per Use

Incendio/furto

LBS

Tariffazione collegata alla totale tracciabilità del comportamento di guida

Tariffazione legata all’utilizzo effettivo del veicolo

Tariffazione ridotta sull’assicurazione furto totale in caso di abbonamento a

servizio di sorveglianza

Tariffazione unica comprensiva di servizi di localizzazione in caso di

emergenza stradale e furto

Cobra Location Based Services for Insurance Risk Management

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Principali dati di utilizzo veicolo

Il costo per veicolo è stimabile in 100 €

all’anno ipotizzando un periodo di utilizzo tre anni inclusivo di

installazione, manutenzione e

20% di disattivazione anticipata

• Targa del veicolo• Proprietario del veicolo• Modello del device• Chilometraggio per ogni viaggio reale (key on-off)• Velocità massima e media

Cliente assicurato target:

1. Copre pochi chilometri all’anno2. Desidera soluzione tariffaria legata a reale utilizzo del veicolo 3. Può chiedere a centrale di soccorso l’intervento delle forze di polizia in caso di furto (servizio opzionale)

Procedure di diagnostica

• Invio di allerta per eventuali malfunzionamenti • Procedure di ripristino con comunicazione al cliente ed all’assicurazione

After theft tracking

In caso di furto il cliente contatta la Centrale Operativa che localizza il veicolo ed attiva le procedure di recupero; in caso di spostamento non autorizzato del veicolo viene inviata una allerta automatica alla Centrale Operativa che contatta il cliente e, se necessario, localizza il veicolo ed attiva le procedure di recupero

Insurance Risk Management : “Pay Per Use”

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ArgentinaAustraliaBelgium Bosnia Bulgaria Croatia Czech RepublicDenmarkFinlandFrance Germany Greece HungaryIceland

Poland Portugal RumaniaRussia Slovenia SpainSwedenSwitzerland Tunisia Turkey United KingdomUruguayYugoslavia

Global presence and ambition

Exclusive Local Partners

Cobra AT - ItalyCobra FranceCobra DeutschlandCobra China (in formation)Cobra Japan Representative OfficeNexo France Nexo Switzerland

Globally transferable solutions

Export accounted for 90% of revenues in 2004

India Ireland Israel ItalyJapanLatvia LithuaniaMacedoniaMalaysiaMalta Morocco MexicoNetherlandsNorway

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Business partners

Working with the leading vehicle makers and tier 1 players

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Market Overview


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Vehicle Electronics OE Market*

Major drivers: (1) government-imposed environmental and safety standards, (2)

consumers’ demand for affordable safety and convenience.

* Source: Reed Electronics Research

€ 10,7 bn€ 14,4 bn

€ 22,5 bn

€ 29,5 bn

2002 2007

Instrumentation

Body/Chassis Electronics

Powertrain

Safety/Convenience

Includes: security,

climate control, body

controllers, lighting,

wiper systems, power

operated systems,

navigation,….

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Electronics and software are

expected to become the key

technologies in a vehicle

Combined share in overall

value of cars expected to rise

from less than 30% today to

over 50% in 2010*.

Vehicle Electronics Market (cont.)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1975 1985 1995 2005 2010

Mechanical Systems

Electrical Systems

Electronics

Software

Share of value add

* Sources: German Automotive Association (VDA);

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Location Based Services Market

LBS expected to become a standard feature on vehicles and a competitive imperative for

commercial fleets

US LBS market estimated to grow from € 0.8bn in 2005 to over € 7bn in 2010*.

Main drivers:

1. Hardware and software price/performance ratio continuous improvement

2. Global wireless carriers launch and support of advanced data services

3. Increased integration of location functions with vehicle components by OEMs.

4. Public funding and support of positioning infrastructures (NAVISTAR,

GALILEO).

* Sources: Canaccord Capital (2005)

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Financial Overview


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First Half 2005 (€39.5m) above budget 17% CAGR in 01-05

Revenues organically doubled in 4 years (01-05)

€m

40.948.5 51.6

61.067.6

78.083.4

10.612.2

9.1

6.7

4.3

6.0

0.0

20.0

40.0

60.0

80.0

100.0

2001 PF 2002 PF 2003 PF 2004 PF 2005 E 2006 E 2007 E

Security Electronics Location Based Electronics Location Based Services

40,9

48,5

54,0

66,3

77,9

94,6

104,7

Business plan as at March 2005

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Change in revenue mix

2004 PF

92%

8%

2007 E

80%

20%

Security Electronics

Location Based Electronics & Service

2004 revenues: €66 million

2007 expected revenues: €105 million Revenues growing and shifting in favour of scalable service revenues

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LBS new subscribers

New Subscribers

Growth Rate

Italy 234% 36% 27% 11%

Rest of Europe 272% 551% 194% 63%

Rest of World 698% 105% 30% 39%

Total 264% 101% 87% 42%

2.116

7.710

15.505

29.030

41.355

0

10,000

20,000

30,000

40,000

2003 2004 2005 E 2006 E 2007 EItaly RoE RoW

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LBS customer base

Note:Cumulative subscribers are net of cancellations.

Cumulative Subscribers

Growth Rate

Italy 330% 92% 43% 23%

Rest of Europe 357% 507% 239% 104%

Rest of World 798% 170% 68% 45%

Total 360% 145% 98% 62%

76.813

47.290

23.841

9.730

2.116

0

20,000

40,000

60,000

80,000

2003 2004 2005 E 2006 E 2007 E

Italy RoE RoW

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In the last 6 months customer base grew by 60% and new additions grew by 45%

European Subscribers

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1H 03 2H 03 1H 04 2H 04 1H 05

Net Cumulative Users New Users

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Telematics, electronic security and complementary markets are rapidly

growing

Cobra is a market leader in vehicle security and management

Globally transferable solutions, under strong and visible brand

Good economic and financial performance

Scaling revenues from location based services

Proven research and development capabilities

State-of-the art, highly automated manufacturing facilities

M&A opportunities to consolidate market leadership

Investment thesis

mod. fmd1402 november 2005 cobra automotive technologies 1 milan, 11 november 2005 presentation...

Documents

cobra platform

horn cobra location

theft option

case of car theft

electronics technologies

theft risk management

case of theft vocal

services control room