Q1 2015 Connected Car Market Update - Woodside Capital Partners

Q1 2015 Connected Car Market Update

Woodside Capital Partners April 2015

TABLE OF CONTENTS I. 

II. 

Connected Car Market — 

Connected Car Market Dynamics

— 

Public Company Market Map

Recent Developments — 

Press Releases and News Stories

— 

TransacEons and Financings

III. 

M&A TransacEons

IV. 

Private Equity Placements

V. 

Public Company Overviews

VI. 

Select Company Profiles

VII. 

Woodside Overview

VIII. 

Global Reach

IX. 

WCP Contact InformaEon

CONNECTED CAR MARKET

Connected Car Market Dynamics Connected Cars on the Road

§  Consumers today expect connecEvity wherever they are and the car is no excepEon

250

Number of Cars (M)

§  There will be 220M connected cars on the road by 2020, with 88M acEvely using connected services 1

200 150 100 50 0

2014E 2015E 2016E 2017E 2018E 2019E 2020E §  Vehicles are becoming an increasingly large AcEve Users Built With ConnecEvity part of the burgeoning Internet of Things (IoT) market Revenues from Connected Car Hardware and So[ware —  One in five cars will have some form of wireless network connecEvity by 2020 2 Driver Assistance

§  Sales of connected cars will equal $2.3T in 2020 1

Safety Entertainment Well-Being

§  Connected car hardware and so[ware will bring in $152B in addiEonal revenue by 2020 1

Vehicle Mgmt Mobility Mgmt 0

10

20

30

40

50

60

$B (1) Business Insider, 3/15 (2) eWeek, 1/15

Source: Business Insider

4

Public Company Market Map Auto Manufacturers OEMs Mobile PlaMorms

System Level System-level

Integrators

OSV, Middleware, Hardware and Service Suppliers Tools, Custom Systems Hardware Middleware SoNware Services

Semiconductors Silicon

5

RECENT DEVELOPMENTS

Recent Developments Company Specific: §  “Ford, Mercedes-Benz Set Up Shop in Silicon Valley” Wall Street Journal (3/27/15)

“Alibaba and SAIC Motor to Invest $160M in Connected Car Market” Silicon Angle (3/13/15) § 

“Apple CarPlay coming to over 40 new car models in 2015” c|net (3/9/15) § 

“Verizon CommunicaSons Turning Connected Car Services Popular” Apphil (3/9/15) § 

“AT&T to Hook Up Its Automated Home and Connected Car Services” New York Times (3/2/15) § 

§ 

“Intel Increases Its Auto Industry Focus As Connected Car Technology Grows”

Driving Sales News (3/2/15)

General Market:

“Connected cars could help boost Canada’s auto-industry market share: TD Economics” Financial Post (3/16/15) § 

§ 

“What’s Holding Back the Connected Car?”

App Carousel (3/13/15)

“Connected Car Market $190 Billion By 2020” Radio Ink (3/6/15) § 

7

Recent Developments (conEnued) M&A TransacUons:

§ 

“Integrated Silicon Agrees to $640 Million Takeover”

Wall Street Journal (3/12/15)

§ 

“Teletrac And Navman Wireless Merge To Create Global TelemaScs Leader”

Field Technologies Online (3/3/15)

§ 

“Bosch acquires devices connecSvity specialist ProSyst”

Domain-b (2/16/15)

§ 

“Investcorp acquires telemaScs specialist Arvento”

CPI Financial (2/12/15)

Private Placements:

§ 

“Security InnovaSon Raises $4M to Connect Cars, Fight Hackers”

Xconomy (3/30/15)

§ 

“TTTech Raises 50 Million Euros to Scale its Robust Network SoluSons for the Industrial Internet of Things and Autonomous Driving Cars”

Business Wire (3/25/15)

§ 

“Connected Car Plaborm Mojio Raises $8M Series A Round Led By Telekom Capital”

TechCrunch (3/24/15)

§ 

“Intel And INRIX Collaborate On Smart CiSes Plaborms And ApplicaSons Powered By Big Data: Intel Capital Makes Investment in INRIX”

Yahoo Finance (11/4/14)

8

M&A TRANSACTIONS

Recent M&A TransacEons Transaction Value ($M) $623.4

TV/Revenue Multiple 1.5x

Silicon Image

572.0

1.6

Silicon Image offers mobile HD link and HD multimedia interface transmitters that enable smartphones and tablets to connect to TV's, PC monitors, automobile infotainment systems, projectors, and audio/video receivers.

Harman Becker Automotive Systems

Red Bend Software

200.0

NA

Red Bend Software offers mobile software management solutions for mobile devices and services. The company’s services are used for device management and analytics by device software developers and automotive companies.

11/11/14

Cox Automotive

Xtime

325.0

NA

Xtime provides cloud-based retention solutions for the retail automotive industry. The company offers a solution integrating service marketing, service scheduling, and service check-in for consumers and service personnel.

11/06/14

MiX Telematics

Compass Fleet Management

5.2

NA

Compass Fleet Management provides fleet telematics in South Africa.

10/21/14

Good Technology

Macheen

8.3

NA

Macheen operates a SaaS platform that brings mobile broadband and connected services to tablets, digital cameras, personal gaming devices, connected cars, etc. without WiFi and traditional data plans.

10/15/14

Qualcomm

CSR

2,376.4

2.7

CSR designs and develops semiconductor integrated circuits. The company provides multifunction semiconductor platforms and technologies for automotive infotainment, imaging, voice and music, and Bluetooth smart devices.

09/30/14

Delphi Automotive

Unwired Technology

190.0

NA

Unwired Technology manufactures and sells wireless RF transmitters, USB connector ports and wireless bluetooth headphone systems for onboard automotive entertainment system OEMs.

09/29/14

SH Holdings; Lime and Company

Point-I

3.6

3.6

Point-I provides mobile software and solutions in South Korea. The company also provides mobile ASP services, such as positioning, telematics, MobileSNS, video optional, system integration, Web, and consulting services.

09/02/14

Quindell

Connected Car Solutions

30.5

NA

Connected Car Solutions offers a real time technology which monitors driving habits of motorists.

07/28/14

Stadium Group

United Wireless

23.8

NA

United Wireless specializes in the design and manufacture of machine-to-machine wireless solutions that support wireless connectivity between devices across wireless technology, primarily cellular networks.

07/07/14

Invensense

Trusted Positioning

19.0

NA

Trusted Positioning provides manufacturers with GPS, Wi-Fi and multi-sensor enabled indoor/outdoor location tracking software that is embedded into mobile devices for vehicular and personal navigation.

06/30/14

Luxoft Holding

Mecel (Populus Suite Assets)

1.0

NA

The Populus Suite assets of Mecel provides human-machine interface communications development software for automotive manufacturers globally.

06/16/14

Vodafone Global Enterprise

Cobra Telematics

27.1

NA

Cobra Telematics provides telematics solutions for the automotive industry.

03/12/14

ORBCOMM Netherlands Euroscan Holdings

34.4

NA

Euroscan Holdings provides telematics and logging solutions for data recording and online monitoring in the transport sector.

Date 03/12/15

Acquiror Target Summitview Capital; Hua Integrated Silicon Capital; eTown MemTek Solution

01/27/15

Lattice Semiconductor

01/22/15

Target Business Description Integrated Silicon Solution, a fabless semiconductor company, designs and markets integrated circuits for GPS, telematics, infotainment, backup cameras, lane departure warning systems, and other applications.

10 Source: CapitalIQ, 451 Research and Woodside Capital Partners esSmates

Recent M&A TransacEons (conEnued) Transaction

TV/Revenue

Value ($M) $156.4

Multiple NA

Target Business Description Transics International provides-GPS based fleet management systems for the transportation sector in Europe. Systems consist of in-vehicle computers and administrative software.

546.9

NA

Octo Telematics manufactures Clearbox devices for communication, data collection, car rental and fleet management, and motor manufacturers in Italy and internationally.

ATOP Business

9.1

NA

ATOP Business comprises automotive telematics onboard unit platforms for vehicle manufacturers which enables them to implement telematics services like eCall.

Sierra Wireless

AnyDATA

5.9

0.6x

AnyDATA designs, manufactures, and provides embedded wireless communication modules that enable users to access the Internet and connected smart solutions for location based services, mobile, and automotive areas.

10/08/13

Apax Partners

GlobalLogic

420.0

1.7

GlobalLogic provides full-lifecycle product development services and offers Big Data and analytics, cloud, embedded, mobile, and security technologies to automotive, infotainment and various other industries.

10/08/13

Trakm8 Holdings

BOX Telematics

6.8

0.5

Box Telematics designs, develops, manufactures, and delivers GPS based vehicle tracking solutions to commercial fleets and vehicles.

09/26/13

Ford

Myine Electronics

10.0

NA

Myine Electronics provides software and Bluetooth wireless chipsets that enable applications to connect with hardware and be controlled by hardware for consumers, businesses and automotive manufacturers.

09/09/13

Koch Industries

Molex

7,228.6

1.8

Molex engages in the design, manufacture, and sale of electronic components worldwide. The company offers automotive products for infotainment and navigation, powertrain, safety and chassis, and body electronics.

08/15/13

Sirius XM

Agero

530.0

NA

Agero's services include satellite-based GPS vehicle tracking, on demand information and entertainment content and navigation assistance for drivers.

07/01/13

ZENRIN DataCom

InfoTrack Telematics

4.0

NA

InfoTrack Telematics designs and develops telematics and location intelligence solutions for transportation and logistics companies in the Middle East and the Asia Pacific.

05/30/13

Nuance Communications Tweddle Connect

80.0

12.2

04/10/13

Harman

iOnRoad

8.0

NA

iOnRoad provides a mobile GPS-based driver assistance application for iOS and Android device users. The application uses smart phone cameras to provide real-time safety assistance and collision warnings.

03/19/13

BSM Technologies

AutoVision Wireless

14.0

1.7

Autovision Wireless operates as a telematics company in North America and internationally.

$348.8

2.4x

480.7

2.8

Median

28.8

1.7

25th Percentile

8.2

1.5

Date 02/13/14

Acquiror WABCO Holdings

Target Transics International

02/04/14

Renova Group

Octo Telematics

12/23/13

Telit Wireless Solutions

10/11/13

75th Percentile Mean

Source: CapitalIQ, 451 Research and Woodside Capital Partners esSmates

Tweddle Connect provides hosted in-vehicle entertainment content delivery software for automobile manufacturers. The company delivers content and applications from third-party providers.

11

Recent M&A TransacEons – ValuaEon Not Disclosed Date 03/03/15

Acquiror Teletrac

Target Navman Wireless UK

Target Business Description Navman Wireless UK provides vehicle tracking and telematics solutions to businesses in the United Kingdom.

02/16/15

Bosch Software Innovations

ProSyst Software

ProSyst Software provides software and services that enable the deployment of content and applications in mobile devices, smart home, automotive telematics, enterprise, and industrial applications.

02/11/15

Investcorp Bank

Arvento Mobil Sistemler

Arvento Mobil Sistemler designs, develops, and manufactures mobile tracking technologies, telematics products, and M2M solutions.

12/18/14

ILAG

Dolphin Technologies

Dolphin Technologies provides automotive telematics systems for vehicle insurers globally.

12/18/14

Harman

S1nn

S1nn provides entertainment systems and software for automotive manufacturers globally. Also provides related mobile control applications.

12/18/14

ILAG

Dolphin Technologies

Dolphin Technologies provides consulting, implementation, and fulfillment services to combine insurance telematics technology with marketing automation and CRM for insurers.

12/10/14

Akka Technologies

Auronik

Auronik provides infotainment and navigation technology for the automobile industry.

12/02/14

u-blox

Lesswire (Automotive Assets)

Lesswire provides Wi-Fi and Bluetooth short-range embedded wireless radio components and systems to enable connected cars and other M2M wireless connectivity for automotive and electronics OEMs.

12/02/14

TomTom Telematics

Fleetlogic

Fleetlogic offers fleet management software solutions.

10/29/14

Astrata

Yamei Electronics Technology

Yamei Electronics Technology designs and manufactures automotive remote control solutions.

10/25/14

Velvac

Qualnetics

Qualnetics designs and develops software for automobile and commercial fleet management, tracking and diagnostics.

09/09/14

Pointer Telocation

Thales Telematics

Thales Telematics provides telematics solutions that enable people, businesses, and governments to manage fleets of vehicles, assets, deliveries, and on-the-road employees.

09/01/14

Devoteam

Progis Software

Progis Software develops geographic information system software applications for the rural area-sector.

08/08/14

VINCI Energies

Vars Brno

Vars Brno provides systems for transportation, asset management, and public administration.

06/04/14

Summit Partners / FleetCor

Masternaut

Masternaut provides GPS-based fleet management, vehicle tracking and navigation systems and Web-based software for the transportation, government and logistics sectors in Europe. 12

Source: CapitalIQ, 451 Research and Woodside Capital Partners esSmates

Recent M&A TransacEons – ValuaEon Not Disclosed (cont.) Date 04/29/14

Acquiror TomTom

Target Dams Tracking

Target Business Description Dams Tracking provides GPS fleet management and telematics software for businesses in France.

02/24/14

Morgan Stanley

Luxoft Holding

Luxoft Holding provides software development services, IT solutions, and iviLink/smart device link protocol, an in-car connectivity solution that enables seamless two-way integration between in-vehicle infotainment systems.

02/05/14

Lysanda

Tracker Network

Tracker Network provides vehicle tracking systems for customers and businesses in the United Kingdom.

01/31/14

Mentor Graphics

Mecel

Mecel's Automotive Open System Architecture division provides open standard automotive embedded software systems for car manufacturers.

01/13/14

Astrata

Qualcomm Enterprise Services Qualcomm Enterprise Services Europe provides telematics and fleet management solutions for transport and logistics companies. Europe

12/12/13

Idem Telematics

Funkwerk Eurotelematik

Funkwerk Eurotelematik develops and operates solutions for the monitoring and control of vehicles and vehicle fleets. The company develops software for navigation, tracking, tracing, and communication applications.

11/25/13

Omnitracs

Roadnet Technologies

Roadnet Technologies offers fleet management software tools and GPS tracking solutions.

10/04/13

Maruwa

Sarantel

Sarantel designs, develops, and manufactures miniature filtering antennas for handheld GPS and satellite radios. Its products are used in satellite radio, PDAs/PNDs, telematics/trackers, sports and games, location based services, and GPS modules.

09/10/13

AAMP Florida

Intraphex

Intraphex engages in the development, manufacture, and marketing of automotive technology systems and offers plug and play automotive infotainment navigation systems; and accessories for mirror and navigation systems.

05/07/13

Global Edge Software

Dearborn Electronics India

Dearborn Electronics provides embedded software for use in automotive electronic control units and industrial automation systems for electronics manufacturers globally.

05/02/13

FEV North America

DGE

DGE offers vehicle bus interfaces, automotive network gateways, custom automotive development tools, engine simulators, transmission simulators, telematics vehicle drive simulators, and vehicle gateway modules.

02/21/13

Mentor Graphics

MontaVista Software

MontaVista Software provides embedded Linux-based OS software for use in onboard automotive computer systems for automobile manufacturers.

01/24/13

Trapeze Software

Mentor Engineering

Mentor Engineering provides fleet management and mobile workforce solutions.

01/08/13

T&N Telekom & Netzwerk

Telefonbau Schneider

Telefonbau Schneider develops and markets communication solutions and infotainment systems.


PRIVATE EQUITY PLACEMENTS

Selected Private Placement AcEvity Date

Company

Amount ($M)

Investors

Business Description

03/26/15

Security Innovation

$4.0

Brook Venture Partners

Security Innovation provides security software that connects cars and programs to teach employees how to avoid security breaches

03/25/15

TTTech

54.7

Audi; GE; Infineon Technologies

TTTech provides networked safety controls for automotive, aerospace, off-highway, energy production, railway and industrial markets.

03/24/15

Mojio

8.0

T-Venture Holding; BDC Venture Capital; Relay Ventures

Mojio provides a cloud-connected cellular and GPS device that connects to various cars for insights into what’s happening under the hood and behind the wheel.

12/26/14

Join-Link International Technology

18.8

Wistron

Join-Link International Technology manufactures car infotainment systems for the car industry.

11/04/14

INRIX

10.0

Intel Capital

INRIX is a big data technology company that provides real-time traffic information, transportation analytics, and connected driver services.

10/21/14

Nanjing Sample Technology

67.1

Nanjing Sample Technology Group Nanjing Sample Technology provides visual identification, radio-frequency identification technologies and telematics services, which comprise real-time traffic, parking guidance, and traffic information services.

08/07/14

Zubie

8.0

Magna International; Comporium; Zubie provides a key to track vehicles, check engine light interpretation, detect low battery, monitor and coach driving Nokia Growth Partners score, and compete with friends using leaderboards.

04/02/14

Jasper Technologies

50.0

Temasek Holdings

Jasper Technologies develops cloud platforms that enable enterprises to monetize IoT service businesses and gives automotive OEMs global visibility and control over the activity of their connected vehicles on the wireless network.

03/31/14

Altran Technologies

5.9

Altamir

Altran Technologies provides engineering consulting services. It offers solutions for embedded and real-time systems such as autonomous systems, smart phones, connected cars, advanced air traffic control, and smart sensors.

03/10/14

Rimac Automobili

12.5

China Dynamics; Integrated Asset Rimac Automobili engages in the design, development, and manufacture of electric vehicles, drivetrains, and battery Management systems. Its products include infotainment systems, low voltage electric systems, and auxiliary systems.

03/05/14

INRIX

55.0

Porsche Automobil Holding

INRIX is a big data technology company that provides real-time traffic information, transportation analytics, and connected driver services.

02/28/14

Hakuto

2.2

The Master Trust Bank of Japan

Hakuto distributes electronic and electric equipment, semiconductor devices, and electronic components. Its electronic components comprise EMI, thermal, antenna and reception, and wireless M2M and telematics solutions.

12/11/13

UIEvolution

8.0

Intel Capital; Shaw Ventures

UIEvolution provides software solutions and services that connect brands with their customers. It's products connect drivers and their vehicles, as well as allows automotive OEMs and content providers to drive customer satisfaction.

12/04/13

Zenhavior

0.0

Plug and Play Tech Center

Zenhavior offers a smartphone-based telematics solution for driver behavior monitoring and analytics.

10/09/13

Telepath

0.8

Enterprise Ventures; The North West Fund

Telepath focuses on developing and implementing telematics and business intelligence technology solutions for businesses.


Selected Private Placement AcEvity (conEnued) Date

Company

Amount ($M)

09/23/13

W-locate

1.6

Investors PT RHB OSK Asset Management

W-locate is a location technology company that provides tracking solutions for vehicle fleet and workforce management applications. Its solutions combine tracking and telematics technologies with business analytics.


09/16/13

Zubie

10.0

Comporium; OPENAIR Equity Partners; Castrol InnoVentures

Zubie provides a key to track vehicles, check engine light interpretation, detect low battery, monitor and coach driving score, and compete with friends using leaderboards.

08/05/13

Driveway Software

1.3

Kernel Capital; IMI.VC; Altair Capital Management

Driveway Software provides smartphone-based telematics solutions for the usage-based auto insurance market.

05/29/13

Kerlink

1.9

Sudinnova; CM-CIC Capital Innovation

Kerlink develops and markets M2M communication solutions that connect remote equipment to IT systems. Its products allow for telemetric and telecollection, roaming and embedded telematics applications for managing fleet.

05/16/13

W-locate

0.5

TNF Ventures

W-locate is a location technology company that provides tracking solutions for vehicle fleet and workforce management applications. Its solutions combine tracking and telematics technologies with business analytics.

04/24/13

Ruetz Technologies

NA

S-Partner Kapital

Ruetz Technologies provides specialist engineering services. The company also engages in the design, development, integration, and implementation of infotainment solutions for vehicles.

04/01/13

Airbiquity

NA

NXT Capital Venture Finance

Airbiquity provides connected vehicle services and automotive telematics technology solutions.

02/01/13

Loksys Solutions

0.8

Enterprise Ventures; The North West Fund

Loksys Solutions develops a portfolio of security and tracking devices for the intermodal freight and road transport systems.


PUBLIC COMPANY OVERVIEW

Stock Price Performance of System Level Companies vs. NASDAQ 120%

115%

110%

105%

100%

95%

90%

NASDAQ Composite Index Index: Alpine, Bosch, Clarion, ConEnental, Delphi, Denso, Harman, JVC, LG, Mitsubishi Electric, Mobileye, Pioneer, Siemens, Seeing Machines, Sirius XM, TRW, Verizon, Visteon, Voxx 18 Source: CapitalIQ research as of March 24, 2015

Public Company Overview Semiconductors Company

Market Cap

Cash

Debt

Acquisitions


$27,087

$3,606

$1,593

15

Broadcom provides semiconductor solutions for wired and wireless communications.

148,284

14,401

13,729

51

Intel designs, manufactures, and sells integrated digital technology platforms.

8,032

2,530

0

4

Marvell designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits.

12,905

4,623

1,398

7

Nvidia provides graphics chips for use in smartphones, personal computers, tablets, and professional workstations markets.

25,126

1,185

3,999

8

NXP provides mixed signal solutions and standard products.

115,535

17,788

0

30

12,132

2,808

2,188

2

Renesas engages in the research, development, design, manufacture, sale, and servicing of semiconductor products.

8,501

2,351

1,805

5

STMicroelectronics engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices.

62,075

3,541

4,642

10

Texas Instruments engages in the design and sale of semiconductors to electronics designers and manufacturers.

Qualcomm designs, develops, manufactures, and markets digital telecommunications products and services.

19 Note: Number of acquisiSons since 2008

Source: CapitalIQ and Woodside Capital Partners esSmates

As of March 24, 2015

Public Company Overview (conEnued) Tools, Custom Systems Company

Market Cap

Cash

Debt

Acquisitions


$243

$206

$0

NA

Access provides mobile content delivery and Internet access technologies worldwide.

17,461

1,423

436

27

Dassault Systemes provides various three dimensions software applications and services worldwide.

171

26

0

NA

Enea provides real-time operating systems, and supplementary software and services; and technical consultancy services.

9,493

1,364

0

12

Garmin designs, develops, manufactures, and markets GPS enabled products and other navigation, communication, and information products.

21,836

1,510

99

1

1,154

61

0

11

Huawei is engaged in the research and development, design, manufacture, and marketing of toy series that integrate both educational and entertainment functions in China.

3,532

190

686

NA

iGATE provides outsourced information technology and IT-enabled operations solutions and services.

40,963

5,319

0

3

2,372

72

22

NA

Melexis designs, develops, tests, and markets mixed signal semiconductors, sensor integrated circuits and programmable sensor IC systems for consumer, medical, and industrial markets.

2,838

230

238

20

Mentor Graphics provides electronic design automation software and hardware solutions to automate the design, analysis, and testing of complex electro-mechanical systems.

28,625

9,604

3,301

14

Nokia provides telecommunications infrastructure hardware, software, and services.

87,057

4,078

13,418

25

Sybase provides data management, analytics, mobile messaging, and enterprise mobility solutions [SAP Financials].

HCL provides software-led IT solutions, remote infrastructure management, engineering, research and development and business process outsourcing services.

Infosys provides business consulting, technology, engineering, and outsourcing services.




Public Company Overview (conEnued) Tools, Custom Systems (conUnued) Company

Market Cap

Cash

Debt

Acquisitions


$7,243

$917

$303

20

Synopsys provides core electronic design automation solutions.

82,103

2,478

53

5

Tata provides information technology services, business solutions, and outsourcing services.

331

128

0

4

TeleNav provides personalized navigation and location based services.

1,788

185

59

4

TomTom provides location and navigation products and services.

6,718

148

738

51

Trimble provides technology solutions to increase the work processes of office and mobile field professionals worldwide.

148,284

14,401

13,729

49

Wind River provides embedded and mobile software (Intel Corp financials).

25,385

3,676

1,101

10

Wipro provides information technology products and services, and consumer care and lighting products.

PlaMorm Company

Market Cap

Cash

Debt

Acquisitions


$727,802

$32,664

$36,403

30

Apple designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players.

5,077

2,771

1,657

20

BlackBerry provides wireless communications solutions worldwide.

379,836

62,633

8,015

138

192,536

56,576

10,321

50

Google builds products and provides services to organize the information.

Samsung engages in the manufacture, distribution, and sale of finished electronic products and device solutions. 21

Note: Number of acquisiSons since 2008



Public Company Overview (conEnued) System Level Company

Market Cap

Cash

Debt

Acquisitions


$1,125

$448

$0

1

Alpine develops, manufactures, and sells audio products for automobiles, and information and communication products in Japan and internationally.

48,848

4,389

7,785

NA

827

77

291

1

Clarion manufactures and sells in-vehicle equipment in Japan, the Americas, Europe, China, India, and other ASEAN countries.

23,277

904

2,451

9

Continental provides various products and services primarily for the automotive industry worldwide.

38,849

7,715

3,376

4

Delphi manufacturers vehicle components; and provides electrical and electronic, powertrain and safety solutions to the automotive and commercial vehicle markets worldwide.

9,369

513

415

14

Denso supplies automotive technology, systems, and components for automakers worldwide.

9,257

2,118

8,248

11

Harman develops, manufactures, and markets audio products and electronic systems, as well as digitally integrated audio and infotainment systems for the automotive industry worldwide.

424

402

615

8

26,206

3,778

3,221

12

LG is engaged in the manufacture and sale of consumer electronics under the LG name worldwide.

690

374

644

12

Mitsubishi Electric manufactures and sells electrical and electronic products and systems worldwide.

9,637

373

0

NA

Mobileye designs and develops software and related technologies for camera-based advanced driver assistance systems primarily in Israel.

13,564

404

12

2

Bosch manufactures and trades in automotive products in India and internationally.

JVC engages in the car electronics, professional systems, optical and audio, and entertainment software businesses in Japan, the United States, Europe, Asia, and internationally.

Pioneer is engaged in the development, manufacture, and sale of electronic products primarily in Japan, North America, Europe, China, and internationally. 22

Note: Number of acquisiSons since 2008



Public Company Overview (conEnued) System Level (conUnued) Company

Market Cap

Cash

Debt

Acquisitions


$91,147

$14,483

$28,063

35

74

17

0

0

Seeing Machines, a technology company, provides computer vision based driver monitoring system software worldwide.

1,092

207

1

5

Sierra Wireless provides cellular wireless solutions to the machine-to-machine and connected device markets in North America, Europe, and the Asia Pacific.

22,214

148

4,501

1

Sirius XM provides satellite radio services in the United States.

12,055

1,031

1,578

2

TRW designs, manufactures, and sells automotive systems, modules, and components to automotive OEMs and related aftermarkets.

205,942

11,153

113,487

4

Verizon Telematics provides connected services for automobiles. The company develops and manages vehicle- and driver-centric solutions. [Financials from parent company Verizon]

4,391

822

981

4

Visteon designs, engineers, and manufactures products for original equipment vehicle manufacturers worldwide.

214

12

103

4

Voxx operates as a manufacturer and distributor in the automotive, premium audio, and consumer accessories industries in the United States and internationally.

Siemens operates as an electronics and electrical engineering company worldwide.




Public Company Overview Original Equipment Manufacturers Company

Market Cap

Cash

Debt

Acquisitions


$81,198

$13,665

$93,816

4

103,632

7,737

104,931

23

20,967

27,954

40,884

2

Fiat Chrysler designs, engineers, manufactures, distributes, and sells vehicles and components.

65,550

21,702

119,171

4

Ford manufactures and distributes automobiles worldwide.

62,595

25,176

46,841

8

GM designs, builds, and sells cars, crossovers, trucks, and automobile parts worldwide.

62,260

11,115

57,771

2

Honda manufactures and sells motorcycles, automobiles, and power products.

33,467

23,778

49,718

10

44,734

7,150

57,016

4

Nissan manufactures and sells automotive products, marine products, and related parts in Japan and internationally.

26,189

16,077

44,279

9

Renault designs, manufactures, and sells vehicles worldwide.

24,911

1,906

2,541

2

Tesla designs, develops, manufactures, and sells electric vehicles, electric vehicle powertrain components, and stationary energy storage systems.

229,732

37,900

160,679

14

Toyota designs, manufactures, assembles, and sells passenger cars, minivans, commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, and internationally.

125,507

34,260

131,510

18

Volkswagen manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific.

BMW develops, manufactures, and sells cars and motorcycles worldwide.

Daimler develops, produces, distributes, and sells passenger cars and off-road vehicles, trucks, vans, and buses worldwide.

Hyundai manufactures and distributes motor vehicles and parts worldwide.




SELECTED COMPANY PROFILES

Select Company Profiles Company DescripUon

Financial Snapshot ($M)

OpportuniUes/Challenges

Airbiquity provides connected vehicle services and automoEve telemaEcs technology soluEons. The company offers a car services plaoorm that connects vehicles and processes transacEons, a poroolio of smartphone applicaEons and cloud content that offers drivers with a connected car experience and its plaoorm also provides connecEvity and integraEon for car drivers; lifecycle management services for management of connected car programs; and end user and call center management, and business intelligence services.

TTM Revenue: $7.3 Invested Capital: $35.4M Amount Last Round: $10.4M Date of Last Round: 9-13-12 Notable Investors: IgniUon Partners Acorn Ventures Employees: 114 Headquarters: Seaale, WA Key Customers:

ü Recently secured a mulU-year partnership with AT&T ü Airbiquity Choreo™ is used by Nissan, InfiniU, FCA, Ford and Renault ü Airbiquity plaMorm supports 5 million vehicles in 50+ countries û  LimitaUons with Apple CarPlay

Cruise AutomaEon develops Cruise RP-1, a highway autopilot system for cars. The company’s products feature precision steering, car and lane tracking, adapEve speed control, and collision avoidance.

TTM Revenue: NA Invested Capital: Undisclosed Amount Last Round: Undisclosed Date of Last Round: 1-14 Notable Investors: Y Combinator Employees: 10 Headquarters: San Francisco, CA Key Customers: NA

ü The first company to offer a product to the public with selfdriving capabiliUes û  Small ProducUon: Only available for Audi; only 50 released in the first run û  Only programmed for highways in the San Francisco Bay Area

GEO Semiconductor provides geometric processing, image signal processing, and video compression soluEons to address various camera and projecEon products. It offers a geometric processing engine for correcEng distorEons in ultra-wide angle cameras and projecEon systems, cloud so[ware soluEons that help companies to connect and manage their video products through the cloud to smartphones and tablets.

TTM Revenue: NA Invested Capital: $33.9M Amount Last Round: $5.7M Date of Last Round: 6-12-13 Notable Investors: Panasonic Montage Capital Employees: 72 Headquarters: Santa Clara, CA Key Customers:

ü Currently raising $25-30M to enter the automoUve and IoT camera markets ü Recently partnered with lowpower Wi-Fi “System-on-a-Chip” supplier GainSpan û  AutomoUve industry has a long adopUon period for new technology 26

Select Company Profiles (conEnued) Company DescripUon



Inrix is a big data technology company that provides real-Eme traffic informaEon, transportaEon analyEcs, and connected driver services. The company offers a soluEon that offers real-Eme and predicEve traffic informaEon, INRIX XD Incidents that immediately detects incidents and road closures and connected car services including parking, fuel POI, pricing, local search and geocoding, traffic cameras, rouEng and inter-modal rouEng, drive Emes and drive Eme polygons, EV range finder and charging staEons, and weather alerts.

TTM Revenue: $3.6M Invested Capital: $143.1M Amount Last Round: $10M Date of Last Round: 11-5-14 Notable Investors: Intel Capital KPCB Employees: 278 Headquarters: Kirkland, WA Key Customers:

ü Received $55M from Porsche at a valuaUon of $550M in Q3 2014 ü Expanding past traffic data into connected car services ü Volkswagen, BMW, Ford, BBC, The Weather Channel and dozens of TV and radio staUons use INRIX traffic data û  Very compeUUve market

Mojio provides a cloud-connected cellular and GPS device that connects to various cars for insights into what’s happening under the hood and behind the wheel. The device includes a way to safely connect– or reconnect–with family and friends while a client is on the go through personalized prompts, messages, and geo-locaEon features; and a virtual driving assistant ready to analyze and interpret data from client’s car.

TTM Revenue: NA Invested Capital: $10.3M Amount Last Round: $8M Date of Last Round: 3-24-15 Notable Investors: 500 Startups Deutsche Telekom Employees: 25 Headquarters: Vancouver, BC, Canada Key Partnerships:

ü Recently launched plug-in car module that connects unconnected cars using AT&T and Telus networks ü Raised $8M in Series A funding led by Telekom Capital û  Car module requires $5 monthly fee; consumers pay for constant connecUon, not data plan

OpenCar provides a plaoorm for in-vehicle applicaEon development. The company offers OpenCar SDK that provides templates for a wide variety of applicaEon categories, OpenCar TelemaEcs that allows standardized and secured access to automoEve telemaEcs, OpenCar InsideTrack that provides comprehensive developer support, OpenCar App CerEficaEon that allows for publishers to quickly meet quality and safety standards and OpenCar App Lifecycle AnalyEcs that enables automaker enterprise system integraEon for insights about drivers, cars, diagnosEcs and performance.

TTM Revenue: NA Invested Capital: NA Amount Last Round: NA Date of Last Round: NA Notable Partnerships: Mazda Employees: 15 Headquarters: Seaale, WA Key Partnership:

ü Recently became strategic partners with Mazda ü New VP helped deliver infotainment soluUons for Toyota, Lexus, Chrysler, Ford and more ü ParUcipates in the AutomoUve and Web PlaMorm Business Group û  Open-source represents a smaller porUon of the market

27




Sygic provides navigaEon so[ware to customers worldwide. The company offers an offline navigaEon applicaEon for Android OS and iOS, professional navigaEon soluEons and a job management tool that allows users to create and assign jobs to their mobile workforce, track their drivers, and see job progress in real-Eme; and specific automoEve soluEons.

TTM Revenue: NA Invested Capital: Undisclosed Amount Last Round: Undisclosed Date of Last Round: NA Notable Investors: NA Employees: 115 Headquarters: BraUslava, Slovakia Key Customers:

ü The world’s most downloaded offline navigaUon app ~ 60M+ downloads ü Acquired turn-by-turn GPS navigaUon applicaUon Be-OnRoad

Telogis provides a cloud-based locaEon intelligence so[ware plaoorm. The company’s plaoorm soluEons include Telogis Fleet that provides realEme locaEon and status for various assets on one dashboard, a So[ware-as-a-Service work order management soluEon, Telogis Mobile that enables companies to stay connected to their workers and Telogis Route that reduces miles and travel Emes with opEmized planned routes and instant reroutes, as well as actual vs. planned reporEng.

TTM Revenue: NA Invested Capital: $95M Amount Last Round: Undisclosed Date of Last Round: 10-27-14 Notable Investors: GM Ventures KPCB Employees: 551 Headquarters: Aliso Viejo, CA Key Customers:

ü Co-Developed, with Ford, an OEM telemaUcs soluUon for law enforcement vehicles ü Received a strategic investment from GM Ventures ü Recently partnered with Volvo Trucks û  Investment from auto vendors may restrict exit opportuniUes

Seeing Machines provides computer vision based driver monitoring system so[ware worldwide. The company’s so[ware and engineering services are used in products and applicaEons that range from devices that improve driver safety and save lives to assessing trainees in simulators and simplifying the relaEonships between people and technology. Its products include DSS product suite to detect and manage driver faEgue and distracEon, including conEnued market development to secure channels to market for the product; and FOVIO research plaoorm for eye gaze tracking.

TTM Revenue: $13M Invested Capital: $9.5M Amount Last Round: $8.7M Date of Last Round: 12-05 (IPO) Notable Investors: Volvo Employees: 90 Headquarters: Canberra, Australia Key Partnerships:

ü Signed a deal with Caterpillar to provide 24/7 monitoring and analyUcs to their customers using Seeing Machines ü Recently signed partnerships with Takata and Samsung MicroElectronics ü Currently has a quarter of it’s market cap – $22.2M – in liquid cash

û  Market currently dominated by major players Apple and Google

û  Early-stage technology company; long adopUon period

28




TTTech provides networked safety controls for automoEve, aerospace, off-highway, energy producEon, railway and industrial markets. It offers electronic control units, tesEng tools, automoEve Ethernet, and service and support, as well as safety so[ware for the automoEve industry; visualizaEon/HMI interfaces, determinisEc Ethernet switches, rugged boards and endpoints, and development and test equipment; and flight and rugged hardware, including switches, end systems, and components.

TTM Revenue: $38.1M Invested Capital: $54.7M Amount Last Round: $54.7M Date of Last Round: 3-25-15 Notable Investors: Audi GE Employees: 400 Headquarters: Vienna, Austria Key Customers:

ü MulU-Disciplinary Partnership with Audi to push autonomous technology ü Partnered with Wind River to develop autonomous driving and automoUve applicaUons ü Recently raised €50M from GE and Infineon Technologies û  All modules must obtain AutomoUve Safety Integrity Level (ASIL) cerUficaUon; slowing R&D

29

WOODSIDE OVERVIEW

Woodside Capital Partners – Who We Are §  A global, independent investment bank that delivers world-class strategic and financial advice to emerging growth companies in the So[ware, Hardware and Internet sectors §  Founded in 2001; over $8 billion in transacEon value §  M&A, strategic partnership and corporate finance advisory in: ̶   ̶  ̶  ̶  ̶

Telecom and Networking So[ware and Internet Technologies Digital Media and AdverEsing Semiconductors, Electronics and Components Cross-border TransacEons

§  Silicon Valley-based, with offices in London §  WCP Research – offers technology research serving buy-side insEtuEonal investors and technology industry execuEves §  25 professionals: backgrounds as entrepreneurs/CEOs and from top investment banks §  Silicon Valley headquarters of M&A InternaEonal 31

WCP’s MASiV & TM&A Europe RepresentaUve 2014 Aaendees: Consumer Internet and Mobile: Andreessen Horowitz – Jamie McGurk, Partner Deloiwe – Garrew Herbert, Partner, M&A Google – Dave Sobota, Sr Dir, Corp Dev Intuit – Kevin Jacques, Director, Corp Dev Opera So[ware – Erik Harrell, CFO Square – Rishi Garg, Head, Corp Dev Telefonica Digital – Jennifer Vancini, Sr Dir, Bus Dev VISA – Lester Liu, Global M&A and Corp Dev Yahoo! – Steven Fan, Mobile Corp Dev

Cloud and Enterprise:

Autodesk – David Hindley, Sr Dir, Corp Dev Box – Niall Wall, SVP, Business and Corp Dev BMC So[ware – Clarence Hinton, VP, Corp Dev Citrix – Mike CrisEnziano, Corp VP EMC – Maw Olton, SVP, Corp Dev IBM – Claudia Munce, VP, Strategy and Venture Salesforce – John Somorjai, SVP, Corp Dev Samsung – Kevin Morrow, VP, Partnership & Bus Dev SAP – Monty Gray, Corp Dev SAP Cloud – Roy Ng, SVP and COO Storm Ventures – Jason Lemkin, Managing Director

32

WCP Forging Close Industry RelaEonships WCP hosts GSA Global Semiconductor Alliance conference

Featured Speakers : Best Buy – Robert Stephens, former CTO CEA – Gary Shapiro, President & CEO Oracle – Sridhar Vajapey, VP, Hardware Engineering OUYA – Julie Uhrman, CEO Roku – Jim Funk, VP, Product Management Samsung Electronics N.A. – Dr. David Steel, EVP, Strategy Synopsys – Dr. Aart de Geus, Chairman & CEO

33

GLOBAL REACH

WCP: A Global PerspecEve

Minneapolis

Minnesota Minnesota

Colorado (2) Illinois Calgary Illinois (2) Salt Lake City (2) Ohio Ohio Redmond (2) Portland SF Bay Area (45) SF Bay Area (27) Los Angeles (4) Los Angeles San Diego San Diego (2)

Denmark Vermont

UK (14) UK (4)

Pennsylvania Pennsylvania (4) Boston (4) Ireland (3) Boston New York (2) Ireland New York (3) France Maryland (2) France (2) New Jersey (3) Virginia (2) AusEn Washington D.C. AusEn (3) Georgia (4) Missouri (2) Georgia Florida Houston (2)

Selected Woodside Capital Partners Engagements Selected Woodside Capital Partners Acquiror / Strategic Partners

Sweden Germany Germany

Kyoto Shanghai

Switzerland (2)

Saudi Arabia

Tokyo Tokyo (3) Osaka Shenzhen Shenzhen

Hong Kong Taiwan (2)

Bangalore Singapore Malaysia Singapore (2)

35

M&A InternaEonal Global Coverage Woodside Capital is a member of M&A InternaUonal, the world’s leading M&A alliance since 2001 § 

M&A InternaEonal has 45 members in 39 countries in America, Europe, Asia, South Africa and Australia

§ 

The members M&A InternaEonal advised on 336 transacEons in 2013, including 70 cross-border deals, for a total value of US$ 18.2 billion

§ 

M&A InternaEonal is the leading M&A alliance by volume for transacEons between US$ 5-250 million

Chart Title

Global Mid-Market – 2014 by Volume (value in US$) PwC KPMG

KPMG

MAI International

Goldman Sachs

Morgan Stanley

Morgan Stanley

Lazard

(23.3B)

62

(20.0B)

56

(15.4B)

53

JP Morgan

0

(11.3B)

66

Lazard

PWC

(23.1B)

95

Ernst & Young

Goldman Sachs

(14.6B)

97

Rothschild

Ernst & Young

(6.3B)

150

Deloitte

Rothschild

(19.9B)

165

M&A International

Deloitte

(16.6B)

175

PwC

20

(17.3B)

50

40

60

80

100

120

140

160

180

200

No. of TransacSons Deals completed from US$5-250 million. Source: www.mergermarket.com M&A InternaEonal Inc. 36

Advantages of M&A InternaEonal § 

M&A InternaEonal is composed of 45 member firms throughout the world

§ 

Members are leading M&A advisory firms in their countries and regions

§ 

Each M&A InternaEonal firm has ample experience, industry knowledge and deep access to the corporate segment of their markets

§ 

This network provides each member firm with unique coverage and resources to idenEfy and contact potenEal buyers or investors for companies being sold by Woodside Capital

Local Knowledge and Execu;on

Woodside Capital offers extensive knowledge of the local and regional markets coupled with high quality execuSon capabiliSes.

Global Coverage

Through M&A InternaSonal we are posiSoned to provide our clients with global coverage and an unparalleled access to global strategic players.

Industry Exper;se

M&A InternaSonal member firms industry experts and local relaSonships permit our firm to idenSfy and contact potenSal investors in your industry.

37

WCP CONTACT INFORMATION

WCP Contact InformaEon ― Main Contacts

Rudy Burger

Greg Mischou

Tricia Salinero

[email protected]

Partner, Managing Director +1 650 513 2757

Partner, Managing Director +1 650 513 2758

[email protected]

[email protected]

Managing Partner +1 650 513 2755

Kirk Bloede

Amar Senan

Shusaku Sumida

Managing Director +1 650 513 2761



[email protected]

[email protected]

[email protected]

39

WCP Contact InformaEon ― AddiEonal Team

Kelly Porter Mike Powell Partner, Managing Director Partner, Managing Director +1 650 513 2756 +011 44 207 488 2772

Ron Heller Managing Director +1 650 513 2762

Indu Navar Managing Director +1 650 513 2774

Jon Thomas Managing Director +1 650 513 2763

Per Selbekk Managing Director +011 44 778 232 5319 [email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

Monica Mariani Vice President +1 650 513 2773

Reza Helali Associate +1 650 513 2772

Rohan Jain Analyst +1 650 513 2767

Qasim Mirza Analyst +44 207 861 4055

Evan Pope Analyst +1 650 513 2766

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

40

Silicon Valley and UK Presence

Silicon Valley Offices 1530 Page Mill Road, Suite 200 Palo Alto, California 94304 Tel: +1 650 513 2775 UK Offices Riverbank House 2 Swan Lane, 7th Floor London, EC4R 3TT Tel: +44 207 929 0248

41

DISCLAIMER

42

Disclaimer: The InformaEon and opinions in this report have been prepared by Woodside Capital SecuriEes, LLC. This report is for our clients only. This report is intended only for the personal and confidenEal use of the designated recipient(s). If you are not the intended recipient of this report you are hereby noEfied that any review, disseminaEon, distribuEon or copying of this report is strictly prohibited. Further informaEon on any of the above securiEes may be obtained from our offices. This report is published solely for informaEon purposes, and is not to be construed as an offer to sell or the solicitaEon of an offer to buy any security in any state where such an offer or solicitaEon would be illegal. Other than disclosures relaEng to Woodside Capital SecuriEes, LLC the informaEon herein is based on sources we believe to be reliable but is not guaranteed by us and does not purport to be a complete statement or summary of the available data. Any opinions expressed herein are statements of our judgment on this date and are subject to change without noEce. Periodic updates may be provided on companies/industries based on company specific developments or announcements, market condiEons or any other publicly available informaEon. Important Disclosures: Woodside Capital SecuriEes, LLC is not a market maker in any securiEes menEoned in this report. Woodside Capital SecuriEes, LLC its officers and employees may from Eme to Eme acquire, hold, or sell a posiEon in the securiEes menEoned in this report. Woodside Capital SecuriEes, LLC compensates individuals for acEviEes and services intended to benefit the firm's investor clients. CompensaEon determinaEons for individuals, including the author(s) of this report, are based on a variety of factors, and may include the overall profitability of the firm and the revenues derived from all sources, including revenues from investment banking. Woodside Capital SecuriEes, LLC is a registered broker-dealer and member of FINRA (www.finra.org) and SIPC (www.sipc.org). Woodside Capital SecuriEes, LLC is an affiliate of Woodside Capital Partners InternaEonal, LLC and Woodside Capital Partners UK, LLP. One or more of the companies menEoned in this report may be clients of Woodside Capital SecuriEes, LLC, Woodside Capital Partners InternaEonal, LLC or Woodside Capital Partners UK, LLP

Third Party Disclosures: Any analyst opinions, raEngs, and public company reports included in this report are provided by third-parEes unaffiliated with Woodside Capital SecuriEes, LLC, Woodside Capital Partners InternaEonal, LLC and Woodside Capital Partners UK, LLP. All informaEon supplied or obtained from these reports is for informaEonal purposes only and should not be considered investment advice or guidance, an offer of or a solicitaEon of an offer to buy or sell a security, or a recommendaEon or an endorsement by Woodside Capital SecuriEes, LLC, Woodside Capital Partners InternaEonal, LLC and Woodside Capital Partners UK, LLP of any security. Woodside Capital SecuriEes, LLC, Woodside Capital Partners InternaEonal, LLC and Woodside Capital Partners UK, LLP makes no guarantees that informaEon supplied is accurate, complete, updated or Emely, and does not provide any warranEes regarding results obtained from its use.

43

Q1 2015 Connected Car Market Update - Woodside Capital Partners

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