1. The document discusses future trends in advanced driver assistance systems (ADAS) in Europe, including growth opportunities for active safety technologies like collision avoidance and driver monitoring systems. 2. It analyzes key product launches from 2007-2008 that helped establish the ADAS market, and identifies areas like map-based applications and vehicle-to-vehicle communication as promising future growth areas. 3. Supplier market shares are forecasted, with companies like Bosch, Continental, and Valeo expected to lead in technologies like adaptive cruise control and intelligent parking assist through the 2010s.

1. Future Evolution of Advanced Driver Assistance Systems in Europe Nick Ford Senior Consultant FROST & SULLIVAN

2. Agenda for Safety & DAS Overview of the Market for Safety and DAS Technologies Active Safety Technologies – Identifying Growth Opportunities Customer Attitudes and Perceptions towards Safety Technologies Conclusions & Recommendations

3. Agenda for Safety & DAS Overview of the Market for Safety and DAS Technologies Active Safety Technologies – Identifying Growth Opportunities Customer Attitudes and Perceptions towards Safety Technologies Conclusions & Recommendations

7. Nissan ASV-4: Using V2X communication for avoiding accidents at intersections and better traffic management V2V Communication: The Nissan ASV-4 warning system employs vehicle-to-vehicle communications to alert the driver to take defensive actions in situations where an on-coming vehicle is not yet visible, but poses a potential threat to road safety. ITS Project: The system is fed traffic data via links to traffic infrastructure (e.g. using beacons) Another on-going project employs telematics via cellular phones to improve traffic flow and reduce traffic congestion

9. Asia is the Major Contributor to the Global Safety Systems Market Revenues Attributable to Wider Installation in Japan Global Safety Systems Market – Revenue Forecast Year 2012 53.3% 53.0% 56.8% 43.2% 46.7% 47.0% Million US$ $11.6 Billion $10.9 Billion $15.8 Billion CAGR 6.6% Note: All figures are rounded. Source: Frost & Sullivan Year 2012 $38.3 Billion 54.7% 45.3% Year 2006 $26.1 Billion 51.9% 48.1%

10. Global Active Safety Systems Market – Revenue Forecast Global Active Safety Systems Market Revenues to Exceed 20 Billion USD by 2012 Global Active Safety Systems Market : Revenue Forecasts (in Million US$), 2006 and 2012 Note: ABS/ESC – Antilock Braking System / Electronic Stability Control, TPMS – Tyre Pressure Monitoring System, LDW – Lane Departure Warning, BSD – Blind Spot Detection, NVS – Night Vision System, PA – Parking Assistance, ACC – Adaptive Cruise Control Note: All figures are rounded. Source: Frost & Sullivan $21 Billion Year 2012 Year 2006 Year 2012 $12.5 Billion 71.7% 8.6% 61.3% 5.8% 10.5% 84.6% 65.0% 42.7% 5.5% 15.7% 5.7% 22.7% 2.8% Million US$ CAGR 8.9% 9.6% 1.3% 1.2% 1.1% 11.6% 7.0% 1.0% 10.0% $6.2 Billion $9 Billion $5.8 Billion 3.7% 7.3% 3.4% 5.7% 17.3% 13.1% 2.1%

12. Agenda for Safety & DAS Overview of the Market for Safety and DAS Technologies Passive Safety Technologies – Growth Opportunities in a mature market Customer Attitudes and Perceptions towards Safety Technologies Conclusions & Recommendations Active Safety Technologies – Identifying Growth Opportunities

13. Integration of DAS with navigation and post-crash safety systems reaching introduction phase Obstacle sensors to become commodity products – CMOS presents strong growth opportunities Non-chassis suppliers making in-roads into DAS market including low-speed maneuvering Success of DAS features will be significantly influenced by quality of HMI Potential end-user demand for DAS in the aftermarket – new products entering market Key Conclusions – Active Safety Systems Active Safety Systems – The Burning Topics

14. Source: Frost & Sullivan study on European Markets for Advanced Driver Assistance Systems , 2006 2004 2010 2015 Driver Assistance System Sensors Used European Active Safety Technology Roadmap Key Dimensions – Systems, Sensors, HMI Driver Assist Systems Driver Warning and Information Systems Collision Warning (CW) Night Vision System (NVS) Lane Departure Warning (LDW) Adaptive Cruise Control (ACC) Intelligent Park Assist Blind Spot Detection Automatic Audible and Visual Push Button Visual Display Push Button Haptic Push Button Automatic braking and acceleration. Push Button Visual Display Push Button Warning Light and Audible Push Button Visual Display CMOS Radar 24 GHz > 79 GHz CMOS based Near Infrared Sensors Far Infrared Sensors Infrared Sensors (2004) CMOS Radar 76/77 (1998) Lidar Sensors (2003) 24 GHz Sensors > 79 GHz Sensors Fusion of Radar 76/77 & CMOS CMOS CMOS Infrared Sensors Radar 24 GHz > 79 GHz CMOS Sharing ACC, LDW, NVS & CW Input Options Output Options

15. Obstacle Sensing Adoption in 2010 – Radar to Dominate, However CMOS to Register Fastest Growth European Active Safety Technology Trends and Forecasts Adaptive Cruise Control 95-96 % 4-5 % 45-47 % 53-55 % Night Vision System 85-90 % 10-15 % Blind Spot Detection 85-87 % 13-15 % Lane Departure Warning

16. Growing Interest from OEMs in Low Speed Driving Assistance Applications Rear 2005 2010 2015 Side Front Standalone Ultrasonic Park Assist Intelligent Park Assist Parallel Parking / side protection Rear Perpendicular Parking Front Perpendicular Parking / Side View Forward / Garage Parking System Standalone Ultrasonic Park Assist 360 o Monitoring Low Speed Parking and Driving Assistance Systems

19. Vehicle to vehicle communication Vehicle to Infrastructure communication Lane Change Assistance Side Assist Lane Departure Warning Collision Warning Rear collision warning and mitigation Extended Collision Warning Extended rear Collision Warning and blind-spot Communication & sensor based Sensor based Challenges 1.Scalable and reliable communication system 2.Secutity issues 3.Availability (coverage area) 4.Certain market penetration necessary for availability 5.Needs cross industry synergy and government support for deployment Source: Frost & Sullivan Car- Car and Car –Infrastructure communication is the next big thing for vehicle technology with extensive benefits to all stake holders

20. OEM Preferences for HMI – Comfort, High Localisation and Multi-modality for Premium vs Cost for Volume Factors Influencing Design of HMI Volkswagen Audi Toyota Nissan Renault Citroen Peugeot Opel/Vauxhall Ford Fiat Mercedes Benz BMW Multi-modality Level of Localisation Cost Preference Comfort Preference Safety Preference Vehicle Manufacturer Low High

23. AM/FM radio Digital satellite radio Wireless LAN Satellite data Infrared Cellular Local Area communication Coverage and availability Good availability Affordable , Good bandwidth Global availability Affordable and good bandwidth Availability and coverage One way communication One way communication Accident hot spot coverage High cost low speed Line of sight communication High cost and low speed Wide Area communication Bluetooth No license , affordable Limited capacity Technology Trends Infrared No license , affordable Line of sight communication Near end communication Source: Frost & Sullivan High Interest / Involvement Low Interest / Involvement Wireless LAN combines the advantage of affordability and bandwidth for vehicle communication requirement Advantage Shortcomings Trend

25. OEMs Need to educate Consumers of Benefits of Haptic Feedback A udio ideo aptic V H Blind Spot Detection Park Assist System ACC LDW V H A H A V A V H A V H A V H H H A H H H Drowsiness Detection Visual: Above Rear View Mirror, A-Pillar Haptic: Steering Wheel, Seats Haptic: Centre Stack, Steering Wheel Haptic: Steering Wheel, Seats Haptic: Centre Stack, Steering Wheel Visual: Rear View Mirror, Central Display Haptic: Centre Stack, Steering Wheel Visual: Instrument Cluster, Central Display Haptic: Steering Wheel Visual: Instrument Cluster, Central Display Haptic: Steering Wheel Haptic: Centre Stack, Steering Wheel Haptic: Centre Stack Visual: Instrument Cluster, Central Display Haptic: Steering Wheel Input Preferred Location Preferred Location Output Systems Example of HMI Preferences

26. Chassis Suppliers currently dominating Safety market – Expect non-Chassis Suppliers to Impact DAS market Harman Becker Bosch Continental/S VDO Delphi Denso Hella Supplier ADAS Chassis Power train Comfort Sensor Fusion Legend: Low High Source: Frost & Sullivan TRW Valeo Visteon

27. Suppliers using 4 key methods to overcome barriers to market entry for Active Safety New Technology companies use partnership with Tier-1 suppliers to find their way to VMs Joint ventures with non-automotive companies for technology capabilities Co-development of Tier-1 / Tier-2 suppliers with Vehicle Manufacturers Non-electronic suppliers expanding product portfolio to include Active safety + + +

28. Purchase Intention of Accessories in Aftermarket – Anti-collision systems are most preferred accessory Anti-collision systems, blind spot detection, and tire pressure monitoring systems are the most preferred, while tuning handles and drive tones are the least desirable Head-up Display System Radar and Dangerous Area Evaluation Parking Distance Evaluation Blind Spot Detection Anti-collision warning Tyre Pressure Monitoring System Note – Based on sample of 485 respondents across UK, France, Spain, Benelux evaluating 36 aftermarket accessories, Q1 2006

29. Case Study - TomTom GO was launched in a market dominated by complex, expensive, built-in car navigation systems. TomTom GO managed to position itself not just as another technical product, but as an easy, smart and accessible consumer solution, moving to take a 56% market share Significant Aftermarket Potential for DAS – No “Breakthrough” Product Thus Far Source: TomTom Tomorrow for DAS DIY / Aftermarket Installed Warning / Information Systems Want / Incentivised by insurance Indispensable for safe driving Source: Frost & Sullivan HUD TPMS Park Assist LDW Systems Already in Market

30. Agenda for Safety & DAS Overview of the Market for Safety and DAS Technologies Active Safety Technologies – Identifying Growth Opportunities Customer Attitudes and Perceptions towards Safety Technologies Conclusions & Recommendations

32. Q.10 How important are the following to you when you consider a package of safety features for your vehicle? Across Europe, ‘traditional’ occupant protection and braking technologies are preferred over newer active technologies. Voice of Customer Study on Safety – Europe Source : Information from Consumer research study done with 1,635 respondents

33. Features That Aid Driver Vision Q.12e If you are making a decision to buy a new car, which safety features would you include?

34. Relative Importance of Safety Attributes – EUROPE Don’t Want It Nice to Have Likely Purchase as an Option Will Purchase Vehicle if Standard Will Not Buy Vehicle if Absent Providing protection to passengers in a collision, and the enhancement of braking, are the attributes most expected to be standard . Vehicles with these features will be considered for purchase. * These are based on the mean scores of the importance ratings for each attribute. On average, speed correction, keeping distance, and summoning for emergency assistance (SOS) after a collision, are the attributes most considered for purchase as an option , and least expected to be standard. Correct Speed Enhance Braking Warn of Risks Keep Distance Aid Driver Vision Protect : Collision SOS : Collision

36. Agenda for Safety & DAS Overview of the Market for Safety and DAS Technologies Active Safety Technologies – Identifying Growth Opportunities Customer Attitudes and Perceptions towards Safety Technologies Conclusions & Recommendations

37. Pricing remains a key barrier preventing the wider uptake of many DAS features. Requires brave decisions. Upgrading parking sensors to Automatic Parking units offers significant growth opportunities to suppliers Success of DAS features will be significantly influenced by quality of HMI Threat of new dimension to competition – Non-Chassis suppliers and aftermarket potential for DAS! BSD and LDW features present stronger market growth opportunities than ACC Consumers in Europe willing to pay for active safety systems, however not ready for autonomous driving – yet!! Key Conclusions – Global Safety Market