1. Mobileye
Just Business Consulting

2. Agenda
❏ Issues at Hand
❏ Brief History of Mobileye
❏ Growth of Mobileye
❏ SWOT Analysis
❏ Recommendations
❏ Financial Projections

3. Issues at Hand
● Mobileye is being pressured by OEMs to reduce prices and must decide
whether to keep prices constant and risk loss of market share or lower
its prices and reduce margins
● Mobileye must choose a partner to solidify its position in the impending
automated driving revolution, choices include Google and OEMs

4. Brief History of Mobileye
● Founded in 1999 by Amnon Shashua and Ziv
Aviram in Israel
● Aims to develop self autonomous car in their
vision
● Developed cheap camera system that has
sophisticated software to assist drivers

5. Brief History of Mobileye - Cont’
● Developed processing algorithms called EyeQ in 2006
● First adopted by automotive manufacturers such as
BMW, General Motors and Volvo
● Offices in US, Israel, Germany, China and other 7000
new markets
● Seeks to provide technical solutions through ADAS as
well as fusion system

6. Growth of Mobileye

7. Growth of Mobileye - Cont’
Mobileye’s Penetration Rates

9. Strengths
Strong financial support from successful investors and IPO
Company focus on research and development of product technology
Most of the product is in the software, which has no variable costs associated
with it
Positional advantage in the automotive value chain as a tier 2 supplier

10. Weaknesses
Small firm with only 437 employees (as of 2014)
Demand will increase in the future as automated driving becomes more common
Positional disadvantage in the automotive value chain as a tier 2 supplier due to
increased competition

11. Opportunities
Strategic alliances with companies within the automotive industry
Promote Mobileye and establish the Mobileye brand
Expand horizontally though associated products and services and capture
aftermarket sales
Develop technology towards an automated driving system

12. Threats
Government regulation on self-driving cars is in a grey area as regulatory limits
and specifications are yet to be set
Substitutes such as ladar systems and 3d mapping
Larger companies developing in-house solutions for ADAS and self-driving
technology

13. Recommendations - Branding
Mobileye is the leader Advanced Driver Assistance Systems
Mobileye should create awareness to car buyers and establish its name as the
standard of ADAS through marketing: TV commercials partnering with OEM
Creating awareness and value will help Mobileye capture more market share and
keep its prices constant
“Safety is not a luxury”

14. Recommendations - Automated Driving Partnership
Mobileye should keep its prices the same, as it will set the standard for ADAS
safety
Do not partner up with Google. Instead, partner with an Original Equipment
Manufacturer (OEM), ideally BMW or Tesla
Partnering with OEM towards development of automated driving, as automated
driving is the future of Mobileye

15. Recommendations - Aftermarket Incentives
Work with insurance companies to provide discounts for drivers with ADAS
- Example: Progressive Snapshot
Add dash-cam feature to Aftermarket products
- Evidence in event of accident
- Video for sports car enthusiasts

16. Quantitative Analysis
OEM ADAS
Average Revenue Generated per Car Model: $761,240
Gross Margin: 75.1%
Aftermarket ADAS
● Revenue Grew 21.6% in 2014
● Gross Margin: 69.2% in 2014, down to 62% with dash-cam feature
Automated Driving
First Models in 2019
Average Revenue Generated per Car Model: $1.2 M
Gross Margin: 75.1%

17. Revenue by Segment
($U.S. in Thousands)

18. Projected Income Statement (USD K)
($U.S. in Thousands)

19. Roll Out Plan
1. Increase awareness of Mobileye as a brand
a. Scout for potential business partners in large OEMs
b. Organize marketing plan for the long term
2. Establish Mobileye brand as a innovator in automated driving
a. Partner with large OEM to have edge on marketing automated driving systems
b. Develop automated driving system through partnership as brand stabilizes
3. Horizontally integrate new products and services
a. Partner with companies related to the automotive industry

20. Thank you for your attention
Questions?