: transformation & challenges Jornades Mobilitat URV Decembre.2018

1 AGENDA

01 02 03 04 Ficosa The CASE: New Scenario Ficosa Overview Automotive for Consumer adapted to the Industry Electronics challenges Transformation

2 Group Highlights

Automotive Tier 1 Company Headquarters and Established in 1949 in Barcelona R&D center in Barcelona () Global partners with Panasonic

Decades of experience supplying all major OEMs

Global company

7,8% of sales invested in R&D

€ 1.190 M sales 10,500 employees In 19 countries

€ 36m € 195m € 593m € 1,1b

  

2017consolidateddata -

1949 – 1986 1987 – 1995 1996 – 2001 2002 – Today Source:FY Local player European market Global market Global organization

3 A higher technological company

2012 Successful development and 2010 production launch of latest technology Acquisition of the generation 2000 electronics electronics manufacturing and programs 2021 Ficosa sets the engineering assets innovation of Sony Spain The car of division to the future diversify its 2015 traditional business Business alliance 2013 with Pillars: Safety [Vision System], Efficiency and Connectivity

4 Business Units REAR VIEW SYSTEMS UNDERHOOD SYSTEMS ADVANCED COMMUNICATIONS

• Exterior Mirrors • Washer Systems • Communication Modules • Integrated Antennas • Interior Mirrors • Sensor Cleaning System • Smart Connectivity Modules

COMMAND & CONTROL COMMERCIAL VEHICLES eMOBILITY

• Shifter systems • Exterior Mirrors • Battery Management • Interior Mirrors Systems • Parking Brake • Camera Monitoring • On Board Charger Systems Systems • Communication Modules DOOR & SEAT SYSTEMS ADAS • Cameras • Comfort • Camera Monitoring • Light Cables Systems • Surround View System

5 Automotive industry is suffering its biggest transformation…

…since the last 50 years

6 Automotive Industry Transformation

These are the four pillars driving the disruption in the automotive industry:

onnected Mercedes-Benz F015 in C “Back to the future” day Autonomous Shared Mobility Electrified

7 Connected Vehicles

An increasing share of vehicles will be connected globally:

New business models and technologies

1 Safety enhancement (E-Call) 2 Infotainment (entertainment, info, navigation services) 3 Advanced HMI 4 Integration of virtual personal assistants

5 Over the air updates

6 Autonomous driving

Roland Berger

8 Connected Vehicles

Cellular technologies in automotive

From smartphone based to vehicle based! Power Data

Roland Berger

9 Connected Vehicles

Improved internal & external connectivity will make modern vehicles vulnerable to an increasing number of cyber threats: Cybersecurity threat vectors Action items for integral security Secure processing (secure boot, run- time integrity, OTA updates)

Secure network (message authentication, CAN ID killer, distributed intrusion detection)

Secure gateway (domain isolation, firewalls/filters, centralized intrusion detection)

Secure interfaces (secure M2M authentication, secure key storage) Roland Berger

10 Autonomous Driving

The four technologies that make autonomous driving possible are:

CURRENT FUTURE “Talk with others” “Where I am”

V2X GNSS

COMM. ADAS

“Informed” “See around”

11 Autonomous Driving

We do not know when & how much… but it happens! AUTONOMY LEVEL AUTONOMY

Already announced Autonomous driving features by OEM

McKinsey Company

12 Shared Mobility

Ride sharing services are forecasted to continue growing at a fast pace, attracting massive capital:

Autonomous driving capabilities will accelerate blurring the lines between today’s mobility business models and use cases: 21,1 bn$

20 bn$

4,3 bn$

4,1 bn$

13 Shared Mobility

Vehicle sales for new mobility services are expected to exceed 10% of new car sales by 2025 in , the US and the EU: WHY?

• Changes in car ownership patterns

• Growing urbanization

• Enhancements in technology & mobility business models

FUTURE

RoboCabs could drive a significantly larger share of sales to new mobility

Roland Berger

14 Electrified Vehicles

Powertrain electrification adoption will be influenced by push and pull factors that have different levels of influence by region:

Lower battery costs and potentially Electrification in varies China New Energy Vehicles (NEV) rising oil prices may drive depending on CO2 emission targets. market with significant growth electrification penetration in the United Share could reach between 20% and forecasted. Electrified vehicles States around 20% by 2025. 32% for 2025. penetration could reach high levels here, with shares between 29% and Main Drivers 47%.

Economics/ Regulation Technology Availability Cost Ownership

15 Growing importance of electronics in HMI From consumer to auto

Growth of displays and new passenger interface technologies

Personal and auto devices integration

Focus on infotainment

New interiors concept designs

16 IT & consumer moving into auto

LG Electronics bid for Apple has more self-driving Automotive comp. ZKW cars than anyone else. Samsung buys Harmann NVDIA invest. in China self International & Magnetti Marelli driving start up Jing Chi ”Automotive will ultimately be the next Broadcomm try over Panasonic investment in big thing in the Qualcomm (130B$) Ficosa information technology sector” - Kim Do-kyun, Toyota, Panasonic joint Samsung Electronics’ Intel acquisition of Mobileye venture to develop EV memory division (15,3B$) batteries

GM acquisition of Cruise Sony focused on auto Tier2 Automation components

17 Increasing SW complexity

F22 Raptor F-35 Joint Strike Fighter Boeing’s 787 Dreamliner 1.7 MLOC 5.7 MLOC 6,5 MLOC

Modern premium car 100 MLOC, 70-100 ECUs *MLOC = Million lines of code

http://spectrum.ieee.org/green-tech/advanced- cars/this-car-runs-on-code

18 Automotive SW new challenges

• Safety - ASIL requirements • No autonomous driving without connectivity • Cybersecurity • Upgradable • Adaptive, self learning • Requirements mgmt and testing • Decoupling HW-SW. Virtualization • Re-thinking current architecture • 70 ECU´s vs central • High speed Bus architecture • Cloud vs in-vehicle • Managing images vs data • Smart sensors

19 Software is a battleground

BATTLE FOR

20 Facing the challenges of the new automotive industry

Safety / VisionSAFETY / VISION CONNECTIVITY EFFICIENCY

Efficiency

Connectivity 2010 2018

PORTFOLIO

• 3% over sales • 7,8% over sales R&D • 240 Engineers • 1120 Engineers • Mainly MEs • 80% SW & EE

INNOVATION MODEL 100% in house design Partnerships & “open innovation” approach

CAPITAL STRUCTURE Two founder families Alliance with Panasonic

Assembly, Injection, paint + SMT & clean rooms for OPERATIONS shops sensors assy.

21 Product vitality index

100% Remarks 90% • 65% of future sales driven by new projects 80% and technologies not in production 70%

60% • From 1,1billion Sales 2016 to 1,5billion

50% 2020

40%

30% 2016 2020 20%

10%

0% 2015 2016 2017 2018 2019 2020 Production New products

22 Questions for the future auto industry, if fully autonomous (L5) driving becomes reality ….

No traffic lights needed? More racing, replace emotions? People won´t own their cars ? Loss admin revenue on traffic tickets? Driver´s license will go away ? High disappointment if accident happens? Auto insurance will go away ? Easy transportation for handicapped & older Car finance industry will go away ? people? Demand for taxi & truck drivers ? Increased productivity during transportation? Higher usage rate, less cars ? No more police vehicle chases ? Higher usage rate, less parking space? Vehicles filled with advertisement ? More alcohol sold in bars-restaurants? Less lawyers?

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