CARS ON DEMAND

Why internet is (slowly) killing car makers

June 2013 @ The Family 1

Who wants a car anyway ?

▲ Less cars

▲ Less kms driven

▲ Less driver licences

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       Between  1992  and  2007,  the  number  of  17-­‐  to  20-­‐year-­‐olds  who  held   licences   fell   from  48%   to   38%,   and   for   21-­‐to   29-­‐year-­‐olds,  the  number  fell  from  75%  to  66%.    

▲ More congestion in cities

▲ More taxes

▲ More tolls (urban or roads)

▲ More parkings and fines price augmentation

June 2013 @ The Family

Who wants a car anyway ?

▲ Service vs Ownership general move

▲ Some traditionnal services have been here for decades –  Long term leases for corporate fleets

–  Rent a car

▲ The Sharing Economy is coming – Collective optimisation of existing assets

–  Internet enabler

–  Some technologies converging : GPS, contactless Id, 3G…

▲ WORSE : the car as a status is dead ! – b€ spent in car advertising totally out of scope

– Ask your friends or kids friends !

3 June 2013 @ The Family

New mobility offers are appearing

▲ Long distance carpooling –  Today, 5 million French are using carpooling* – #1 French carpooling service (Blablacar) was launched in 2004 now has 2

million registered users and recorded 150% of growth during the last 4 years –  European wide service now

▲ Urban mobility v1.0 : car sharing – Car-sharing services have spread throughout France since 1999 •  Paris (1999), Strasbourg (2000), Bordeaux (2001), Marseille, Avignon (2002), Lyon (2003), Grenoble,

Chambéry, Annecy, Saint-Etienne (2005), Montpelier, Nîmes, Narbonne (2006), Lille (2007), Poitiers (2008), Toulouse (2009), Besançon (2010), Angers (2011), Tours (2011), Paris (2011), Metz and Nancy (2012)

– Many trials all over Europe and USA – Most successfull : Zipcar, bought out for 500M$ by Avis early 2013

▲ Urban mobility v2.0 : cars on demand – Autolib launched in December 2011 : already 15,000 members, with more

than 1 million trips completed – Car2Go by Daimler/Europcar in Germany, Austria, Netherlands, US and

Canada

– DriveNow by BMW/Sixt –  Peer 2 peer services started : Buzzcar, Local motion

4 *  source:  BIPE  

June 2013 @ The Family

June 2013 @ The Family 5

Cars on demand

June 2013 @ The Family 6 6

§  Cars available 24/7 §  Always close to you §  No stations : park anywhere ! §  Everything automated for user

§  Cars geolocalized in real time §  Reservation of cars online or

via Mobile App §  Check-In and -Out of Cars

through Smartcard or Smartphone (24/7)

§  Membership/Community based §  Usage corresponding to urban

inhabitants aspirations

§  Accessibility is key §  Using parking spaces over-

and under-ground §  No dedicated parking lots §  Choice of spots: tbd

June 2013 @ The Family 7

Different mobility solutions for different usages

Example use case §  Trip down-town §  Opera visit §  Visit a friend down-town §  Shopping groceries for single-person

household

Solution

One-way: Possible city-wide

Example use case §  Trip to recreation area §  Visit a friend in suburbs §  Shopping trip for family §  Away game for amateur athletes

Solution

One-way: Not possible

Example use case §  Holiday trip §  Business trip for several days §  Car replacement

Solution

One-way: Possible nation-wide

Duration: Half hours Duration: Hours / Days Duration: Days

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June 2013 @ The Family 8

URBAN SEMI-URBAN RENT A CAR

Booking channels Rental kiosks, call center, online Smartphone App, online Station, call centre, online, smartphone

Price structure Based on hourly rate + subscription fee Based on km Based on days

One-Way-Ability One-way availability within city between stations No one-way ability or high price One-way nationwide

Density Very dense => 1000 cars / city

Starting with specific amount of hot spots Objective to cover living districts in 5 min radius

>400 Stations nationwide

Minimum renting time 0,5 hour 1 hour 1 day

Cars 1 urban model only Economy/Compact station wagon Low Carbon Footprint All

Cars branded Yes Small branding No

Range Short distance / Electric vehicle Limited to the center of Paris and 46 communes within the Paris area

Nationwide unlimited Unlimited

Different business models

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June 2013 @ The Family 9 9

§  Implement a truly holistic “urban mobility concept”: Full continuum §  Citizens of City would enjoy -  Freedom: Wheels when they are needed -  Flexibility: Choice of vehicle brand, type and size based on use occasion -  Convenience: Vehicles on demand within walking distance

§  Further improvement of City image: Reduction of the carbon footprint and marketing of a “Greener Lifestyle”

§  Further benefits for the city : Reduced fuel consumption and traffic jams

Advantages for the City

?  

Urban  Mobilty  Concept  

A necessary continuum for a life without car ownership

Who’s playing ?

▲ Old guys are starting – Daimler and BMW in urban concepts

–  Europcar (Car2go) , Avis (Zipcar), Hertz (Hertz on Demand) , Enterprise (Wecar)

– Daimler has started a more comprehensive approach (MyTaxi…)

–  Failure of Renault/Better Place model

▲ New entrants…are not really here for cars ! –  Bolloré : battery play !

–  Tesla : still selling a car…but building its infrastructure

⇒ become Chevron instead of Ford ?

– Many « sharing economy » startups with Peer2peer models

June 2013 @ The Family 10

What’s next ?

▲ New technology –  NFC, CAN bus readers, 4G… –  Real time big data

▲ Sharing economy needs volumes –  Availability –  Profitability !

▲ On demand needs ability to « guarantee » availability –  Challenging for pure peer2peer models , contrary to AirBnB

▲  Industrial models are expensive ! –  2€ of capital for 1€ of revenue when owning assets –  ROCE low

▲ Need to integrate all public transport solution

June 2013 @ The Family 11

What’s next ?

▲ LET’S MIX TO BE USER CENTRIC –  Real time availability

– Networked cars (and self-driving ?)

– All services encapsulation (cf ridescout in Austin, TX or Toowup in Montbeliard)

– Who cares who owns the car ?!

▲ BUT…

▲ Who will lead ? –  Listening to users

–  Inventive

–  Fast to adapt

–  Rich

June 2013 @ The Family 12

THANK YOU !

June 2013 @ The Family 13

June 2013 @ The Family 14

▲ Eurazeo Croissance supports high growth potential companies with a proven business model in their ambition to achieve the transformations they need to become established global players –  International expansion, industrial/commercial investments, external growth,

etc.

▲ Focus on growth stories based on product or market disruptions, with a strong operational leverage

▲  Investment across selected industry categories driven by favorable trends –  E.g. renewable energy, green chemistry, data sharing, e-commerce, etc.

▲ Acting as a reference shareholder in partnership with management

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June 2013 @ The Family 15

Eurazeo at a glance

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A LONG TERM INVESTOR

▲ Strong family and institutional structure

▲ Listed on Euronext Paris

▲ €4bn assets under management

▲ A pluridisciplinary team of investment professionals

▲ Deep network and strong track record

▲ Investment philosophy: accelerating and enhancing the transformation potential of companies

▲ Active support to portfolio companies

▲ Flexible investment horizon

3 OTHER INVESTMENT STRATEGIES ALONGSIDE EURAZEO CROISSANCE

 for mid to large buyout

for SMEs buyout

for real estate