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Cobra Automotive Technologies
Presentation
Milan, 11 November 2005
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Presenter

• Aldo Monteforte, board director, Cobra Automotive
  Technologies SpA
• Terra Nova Partners (Milan, San Francisco)
• Nomura International (London)
• Stanford Graduate School of Business (Stanford,
  California)

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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

m
17 CAGR in 01-05
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Cobras value proposition
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Cobras 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
News 09/2005 Porsche AG has nominate Cobra to
serve after theft recovery service in 27
countries
Map Ser
Control Room
Call Center
Help Desk
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COBRA Location Based Services for Stolen Vehicle
Recovery
Private End User Service features
Always in touch
THACHAM CAT 5 HOMOLOGATED
Proactive theft detection and tracking

• Vocal menu with vocal application option
• Web Application
• Value added services in any case

Alerts recovery

• Vocal menu with call center option
• Voice, Fax or e-mail for alarms
• Value added services in case of theft

• Vocal menu with call center option
• Voice, Fax or e-mail for alarms
• Value added services in case of theft

Track the car
Tracking after customer theft declaration

• Control Room 24h7d
• Vocal menu with only theft option and Transport
  and Garage Mode setting

• Control Room 24h7d
• Vocal menu with only theft option and Transport
  and Garage Mode setting

• Control Room 24h7d
• Vocal menu with only theft option and Transport
  and Garage Mode setting

15K-25K
25K-40K
more than 40K
European Customer Segmentation based on car value
to be protected (to be
personalised in every country)
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The case of car theft in Europe
1.400

• 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

1.150
1.200
1.000
1.000
43 Recovered rate
67 Recovered rate
Car stolen (.000)
800
600
57 Not recovered rate
400
33 Not recovered rate
200
2003
2002
Sources Europol 2004
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COBRA Location Based Services for Theft Risk
Management
BLU PROFILE supported only by ICD12
Daily use
After theft
During theft
Theft management
Maintenance/Transport

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

• Theft of the keys or car-jacking

Cobra Server
Arm/Disarm the system

• Sabotage

• Can be done through radio key, driver card or the
  vocal application

Recovered car
Authority intervention
Control Room

• contacts the customer
• tracks the stolen car each 30 sec
• can send commands such as immobilisation when
  the car is not running and dissuasion (blinker
  and horn)

• Unauthorized movement

Diagnostics and Comfort features
Each country offers several differentiated
services of car recovery
Theft attempts detection

• Attempt to start engine when system is set
• Shock detection
• Sabotage of GPS antenna

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

Customer notification
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COBRA Location Based Services for Fleet
Management
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Cobra Location Based Services for Insurance Risk
Management

• 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

Tariffazione ridotta sullassicurazione furto
totale in caso di abbonamento a servizio di
sorveglianza
Incendio/furto
Tariffazione collegata alla totale tracciabilità
del comportamento di guida
Tariffazione legata allutilizzo effettivo del
veicolo
LBS
RCA Pay As You Drive
RCA Pay Per Use
Polizza Premium
Tariffazione unica comprensiva di servizi di
localizzazione in caso di emergenza stradale e
furto
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Insurance Risk Management Pay Per Use

• Cliente assicurato target
• Copre pochi chilometri allanno
• Desidera soluzione tariffaria legata a reale
  utilizzo del veicolo
• Può chiedere a centrale di soccorso lintervento
  delle forze di polizia in caso di furto (servizio
  opzionale)

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

Principali dati di utilizzo veicolo
Il costo per veicolo è stimabile in 100
allanno ipotizzando un periodo di utilizzo tre
anni inclusivo di installazione, manutenzione
e 20 di disattivazione anticipata
Procedure di diagnostica

• Invio di allerta per eventuali malfunzionamenti
• Procedure di ripristino con comunicazione al
  cliente ed allassicurazione

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
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Global presence and ambition

• Globally transferable solutions
• Export accounted for 90 of revenues in 2004

Exclusive Local Partners
Argentina Australia Belgium  Bosnia  Bulgaria  Cro
atia  Czech Republic Denmark Finland France  Germa
ny  Greece  Hungary Iceland 
Poland  Portugal  Rumania Russia  Slovenia  Spain
Sweden Switzerland  Tunisia  Turkey  United
Kingdom Uruguay Yugoslavia
India  Ireland  Israel  Italy Japan Latvia  Lithua
nia Macedonia Malaysia Malta  Morocco  Mexico Neth
erlands Norway
Cobra AT - Italy Cobra France Cobra
Deutschland Cobra China (in formation) Cobra
Japan Representative Office Nexo France  Nexo
Switzerland
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Working with the leading vehicle makers and tier
1 players
Business partners
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Cobra Automotive Technologies
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.

29,5 bn
Instrumentation
Body/Chassis Electronics
22,5 bn
Powertrain
Includes security, climate control, body
controllers, lighting, wiper systems, power
operated systems, navigation,.
14,4 bn
10,7 bn
Safety/Convenience
2002
2007
Source Reed Electronics Research
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Vehicle Electronics Market (cont.)
Share of value add

• 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.

100
90
80
70
Mechanical Systems
60
50
Electrical Systems
40
Electronics
30
Software
20
10
0
1975
1985
1995
2005
2010
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
• Hardware and software price/performance ratio
  continuous improvement
• Global wireless carriers launch and support of
  advanced data services
• Increased integration of location functions with
  vehicle components by OEMs.
• Public funding and support of positioning
  infrastructures (NAVISTAR, GALILEO).

Sources Canaccord Capital (2005)
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Cobra Automotive Technologies
Financial Overview
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Revenues organically doubled in 4 years (01-05)

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

Business plan as at March 2005
m
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Change in revenue mix
2007 expected revenues 105 million

• Revenues growing and shifting in favour of
  scalable service revenues

2004 revenues 66 million
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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
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LBS customer base
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
Note Cumulative subscribers are net of
cancellations.
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In the last 6 months customer base grew by 60
and new additions grew by 45
European Subscribers
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Investment thesis

• 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
• MA opportunities to consolidate market leadership