Cobra - Confindustria

Cobra Automotive Technologies
Presentation
Milan, 11 November 2005
MOD. FMD1402
Cobra Automotive Technologies
November 2005
1
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
November 2005
2
Cobra Automotive Technologies (“Cobra”)
 Our vision: Global Vehicle
Security Designer
Consolidated Revenues
€m
17% CAGR in 01-05
80
80.5
 Focus on mitigating risks
associated with ownership and
management of mobile assets
66.3
60
54.0
48.5
 Revenues organically doubled
40
40.9
between 2001 and 2005
20
 330 employees, with 80
engineers and software
developers
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Cobra Automotive Technologies
0
2001 PF
2002 PF
2003 PF
2004 PF
November 2005
2005 E
3
Cobra’s value proposition
Risk class
Main victims
Theft
Owner
Insurer
Low speed-accident
Owner
Third parties
Antitheft Systems
Location Based Services
Parking Aid Systems
Breakdown
Owner
User, Vehicle Maker
Location Based Services
Unauthorised use
Owner
Location Based Services
Fraud
Leasing co/insurer
Location Based Services
Hijack
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Cobra solution
Cobra Automotive Technologies
Owner / User
Location Based Services
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Cobra’s value proposition
Location-based services
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Security electronics
 Stolen-vehicle recovery
 Antitheft systems & components
 Fleet management
 Parking aid systems
Cobra Automotive Technologies
November 2005
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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
Map Ser
Porsche AG has
nominate Cobra to
serve after theft
recovery service
in 27 countries
Control Room
Call Center
Help Desk
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Cobra Automotive Technologies
November 2005
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COBRA Location Based Services for Stolen Vehicle Recovery
Private End User
Service features
‘Always in touch’
“Proactive theft
detection and
tracking”
THACHAM CAT 5
HOMOLOGATED
 Vocal menu with “vocal application
option”
 Web Application
‘Alerts & recovery’
 Vocal menu with “call center option”
 Vocal menu with “call center option”
 Voice, Fax or e-mail for alarms
 Voice, Fax or e-mail for alarms
 Value added services in case of theft
 Value added services in case of theft
 Control Room 24h*7d
 Control Room 24h*7d
 Control Room 24h*7d
 Vocal menu with only “theft option and
Transport and Garage Mode setting”
 Vocal menu with only “theft option and
Transport and Garage Mode setting”
 Vocal menu with only “theft option and
Transport and Garage Mode setting”
‘Track the car’
“Tracking after
customer theft
declaration”
 Value added services in any case
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


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
1.400
# Car stolen (.000)

1.200
1.150
1.000
1.000
800
67%
Recovered
rate
43%
Recovered
rate
600
400
200
33%
Not recovered
rate
2002
57%
Not recovered
rate
2003
Sources: Europol 2004
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COBRA Location Based Services for Theft Risk Management
BLU PROFILE supported only by ICD12
Daily use
During theft
Maintenance/Transport
Theft management
• customer sets the system
accordingly (web or voice
application)
• Theft of the keys
or car-jacking
Arm/Disarm the system
• Can be done through
radio key, driver card or
the vocal application
Diagnostics and
Comfort features
• Battery level
• ICD battery back up level
• Speed alert
• Vehicle tracking
• Sabotage
After theft
Cobra
Server
Control Room:
• Unauthorized
movement
Theft attempts detection
• Attempt to start engine when
system is set
• Shock detection
• Sabotage of GPS antenna
 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)
Authority
intervention
Recovered
car
Each country offers
several differentiated
services of car recovery
Customer notification
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COBRA Location Based Services for Fleet Management
e-Fleet Application
e-Fleet Application
Fleet view
Reports
Settings
Login: user1
Monitoring
Fleet view
Fleet
Fleet
My Fleet 1
Fleet Name:
Vehicles Information :
Vehicle
Vehicle
Reports
Settings
Login: user1
Monitoring
Track
Track
Fleet Name:
My Fleet 1
Vehicle identifier :
Vehicle 2
John smith – Vehicle 2
John smith – Vehicle 2
10 min
Location : A8 antibes-nice
Mon - 10/09/2005 - Trip1
7h20 – Nice tier station
7h50 – Antibes motorway toll
mike amer – Vehicle 1
20 min
Location : Villeneuve
8h20 – Roquebrune motorway toll
8h50 – Aix en Provence motorway toll
Total :
Robert smith – Vehicle 9
10 min
Location : Biot main street
Wed - 12/09/2005 – Trip 1
Jeanna bar – Vehicle 5
15 min
Map filter:
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Filters list
+
Cobra Automotive Technologies
Duration
-
25 km
45 km
49 km
25 min
45 min
49 min
119 km
1h 59 min
Toll
2
25
15
29
69 euros
Distance
-
Duration
-
25 km
45 km
49 km
25 min
45 min
49 min
Total :
119 km
1h 59 min
69 euros
Total Report :
238 km
3h 58 min
138 euros
7h20 – Nice tier station
7h50 – Antibes motorway toll
8h20 – Roquebrune motorway toll
8h50 – Aix en Provence motorway toll
Location : Cros cagnes
Distance
-
Toll
2
25
15
29
-
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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 sull’assicurazione
furto totale in caso di abbonamento a
servizio di sorveglianza
Incendio/furto
Tariffazione collegata alla totale
tracciabilità del comportamento di guida
Tariffazione legata all’utilizzo
effettivo del veicolo
LBS
RCA: Pay Per Use
RCA: Pay As You Drive
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:
1.
2.
3.
Copre pochi chilometri all’anno
Desidera soluzione tariffaria legata a reale utilizzo del veicolo
Può chiedere a centrale di soccorso l’intervento delle forze di polizia in caso di furto (servizio opzionale)
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
Principali dati
di utilizzo
veicolo
• Targa del veicolo
• Proprietario del veicolo
• Modello del device
• Chilometraggio per ogni viaggio reale (key on-off)
• Velocità massima e media
Procedure di
diagnostica
• Invio di allerta per eventuali malfunzionamenti
• Procedure di ripristino con comunicazione al cliente ed all’assicurazione
After theft
tracking
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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
Croatia
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Iceland
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India
Ireland
Israel
Italy
Japan
Latvia
Lithuania
Macedonia
Malaysia
Malta
Morocco
Mexico
Netherlands
Norway
Poland
Portugal
Rumania
Russia
Slovenia
Spain
Sweden
Switzerland
Tunisia
Turkey
United Kingdom
Uruguay
Yugoslavia
Cobra Automotive Technologies
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,
€ 14,4 bn
€ 10,7 bn
Safety/Convenience
wiper systems, power
operated systems,
navigation,….
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
100%
90%
80%
70%
Mechanical Systems
60%

Combined share in overall
value of cars expected to rise
from less than 30% today to
over 50% in 2010*.
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:
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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Cobra Automotive Technologies
Financial Overview
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Revenues organically doubled in 4 years (01-05)
 First Half 2005 (€39.5m) above budget
Business plan as at March 2005
 17% CAGR in 01-05
€m
104,7
100.0
9.1
94,6
6.0
77,9
80.0
66,3
12.2
10.6
6.7
4.3
60.0
54,0
48,5
40,9
40.0
78.0
61.0
20.0
40.9
48.5
51.6
2002 PF
2003 PF
83.4
67.6
0.0
2001 PF
Security Electronics
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Cobra Automotive Technologies
2004 PF
2005 E
Location Based Electronics
2006 E
2007 E
Location Based Services
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Change in revenue mix

Revenues growing and shifting in
favour of scalable service
revenues
2007 expected revenues: €105 million
2004 revenues: €66 million
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LBS new subscribers
New
Subscribers
41.355
40,000
29.030
30,000
20,000
15.505
7.710
10,000
2.116
0
2003
Italy
RoE
2004
RoW
2005 E
2006 E
2007 E
Growth Rate
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Italy
234%
36%
27%
11%
Rest of Europe
272%
551%
194%
63%
Rest of World
698%
105%
30%
39%
Total
264%
101%
87%
42%
Cobra Automotive Technologies
November 2005
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LBS customer base
Cumulative
Subscribers
76.813
80,000
60,000
47.290
40,000
23.841
20,000
9.730
2.116
0
2003
Italy
2004
RoE
2005 E
2006 E
2007 E
RoW
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
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1H 03
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2H 03
Net Cumulative Users
1H 04
2H 04
New Users
1H 05
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Investment thesis

Telematics, electronic security and complementary markets are rapidly
growing
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
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
Cobra Automotive Technologies
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