Gian Gherardo Calini GSA Market development

26 January 2012

Connecting Czech industry with the European GNSS community

GNSS market to reach €165 bln wordwiderevenues in 2020

Global GNSS market size (€ bln)

165

+11% p.a.

20202018

148

2016

125

2014

104

2012

87

2010

58

32

Rest of the WorldNorth AmericaEuropean Union

• 10% annual average growth rate in terms of shipments of devices

• 11% annual average growth rate in terms of revenues

• 1 billion devices shipped worldwide in 2020

• 200mln devices shipped in EU in 2020

• 165 billion revenues in core GNSS market in 2020

GNSS applications exist in both mass and niche professional markets

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Galileo OS /EGNOS OSGalileo CS AuthenticationGalileo CS High Precision

EGNOS SOL

PRS

Galileo SAR

Identified potential for given Galileo/EGNOS service

Three segments have been identified as priority for EGNOS adoption

Rail

Logistics

Road Advanced Appl.(Mainly RUC)Mass Market

Maritime

High Precision

Aviation

Low

High

Medium

Public Benefits

High

Timing for results

LowAbility to market

Quick

Slow

Priority segments

• Concentration of decision makers• Regulation• Advantage vs. competing technologies• Technology maturity

• Market size• EGNOS Value

added• Awareness• Safety• Environment

Source: GSA analysis, 2009

Copyright Triangle Venture Capital Group Management GmbH, January 2012

Connecting Czech Industry with the European Satellite Navigation

GALILEO Application Congress Prague 2012

Dr. Bernd Geiger, January 26, 2012

Member of:

| January 2012 OSTF – Open Sky Technologies Fund Page 2

OSTF – Open Sky Technologies Fund

Where is our Experience Coming From?

Proprietary and exclusive access to the European Space Agency (ESA)

providing a one-of-a-kind deal source and technology access

ESA – managing one of the richest and largest technology pools in the world –

currently ~7,000 technology projects under management handled by ~2,000

engineers and researchers!

Early market success strategy through parallel customer and product

development

Active at the crossroads of high-end technologies and commercialization, over

the past 15 years Triangle has developed best practices and processes to

effectively scout, identify technologies and shape and grow new companies

based on them in the most dynamic industry sectors on earth.

Fund size: €100 million, European Space Agency as anchor investor

Page 3

OSTF – Open Sky Technologies Fund

| January 2012 OSTF – Open Sky Technologies Fund

Uli W. Fricke Managing General Partner

Wiebke Langhans Senior Investment Manager –

Partner

Investors in Early Stage: Passion and >150 Years of Accumulated Experience

Dr. Bernd Geiger Managing General Partner

Dr. Joachim Redmer Venture Partner

Sumanta Pal Junior Investment Manager

Gabriele Egger

CFO - Partner

Dr. Xin Chen

Investment Manager China

Joerg Kreisel

Venture Partner

Dr. Anthony Park

Venture Partner

Vitalijs Stafejevs

Financial Analyst

John Rosati

Venture Partner

Dr. Michael Rossbach Venture Partner

| January 2012 OSTF – Open Sky Technologies Fund Page 4

OSTF – Open Sky Technologies Fund

Testimonial 1: Adaptive Laser Vision Correction

Nano-scale array of movable mirrors to compensate

light wavefronts for patient customized laser vision

correction.

Value Proposition: Perfect Vision’s WaveScan

diagnostic device develops enhanced Hartmann-

Shack technology to be utilized in laser vision

correction for improving vision by 100%.

Date of Initial Investment: May 2000

Story: Perfect Vision’s product WaveScan is used

to perform pre-operative mapping of refractive

errors of the eye. The company’s femtosecond

laser is for non-invasive refractive surgery

(intraCOR) of the cornea.

Achievements: In 2003 the WaveScan product was

acquired by the company VISX. In 2009 Perfect

Vision merged with Bausch & Lomb Refractive

Business leading to a $100 million company with

260 employees. In September 2011, Bausch &

Lomb has purchased an option to acquire the

merged company for up to €450 million. München, Germany – www.technolaspv.com

| January 2012 OSTF – Open Sky Technologies Fund Page 5

OSTF – Open Sky Technologies Fund

Testimonial 2: Virtualization of Motor Sports

Transition of real-world races into the virtual world

of online computer games.

Value Proposition: The combination of the real

world with the virtual world in real time using

satellite navigation technology.

Date of Initial Investment: December 2007

Story: Live racing against the professionals –

enabling gamers to join races and compete in real

time directly against the professional drivers.

Achievements: iOpener has equipped first race

tracks and cars to transfer data from the real race

cars to their proprietary online gaming platform.

Race series and F1 tracks have been attracted,

contributing content to the iOpener Enabled

online gaming platform.

Aachen, Germany – www.iopenermedia.com

| January 2012 OSTF – Open Sky Technologies Fund Page 6

OSTF – Open Sky Technologies Fund

Testimonial 3: Outdoor Group Navigation

A three-in-one group navigation and

communication device for outdoor enthusiasts.

Value Proposition: The device integrates

functionalities of a rugged smart phone, a GPS

navigation device and walkie-talkie style

communication.

Date of Initial Investment: December 2009

Story: Today’s outdoor enthusiast has to carry a

rugged GPS device for navigation, a mobile

phone for voice and emergency communication,

and possibly a walkie-talkie allowing

communication within a group. TakWak’s tw700

combines GPS, PMR (walkie-talkie) and GSM

modules, with the advantage of having unlimited

access to communication networks.

Achievements: After setting up the core team,

TakWak is developing the device in corporation

with an experienced design house and OEM.

Market introduction is planned for April 2012. München, Germany – www.takwak.com

Page 7

OSTF – Open Sky Technologies Fund

| January 2012 OSTF – Open Sky Technologies Fund

Triangle Venture Capital Group Management GmbH

Marktstrasse 65

68789 St. Leon-Rot

Germany

Tel: +49 700 874 26 453 / +49 6251 800830

Fax: +49 700 874 26 329 / +49 6251 800839

www.triangle-venture.com

Head of Technology Practice:

Dr. Bernd Geiger, Managing General Partner

b.geiger@triangle-venture.com

We build successful companies by unleashing innovation,

growing people and creating jobs for the benefit of our

investors and a better world.

Member of:

0

Prague26 January 2011

PANEL 3

Connecting CZECH INDUSTRY with EU SatNav Community

1

SpaceTec Partners – We work where Space meets IT

Offices in Munich and Brussels, active Europe-wide

2

Google ... Techhub ... GSA ...

... Who is next coming to CZ ???

3

We also develop support instrumentsfor Mobility & Mobile Services for the EU

Early Stage Venture Fund for Mobility / Mobile Services

Structured Models for Co-Investment,Coaching and in-kind support

Matchmaking Roadshows between Entrepreneurs and Investors

• The largest growing sector is road transport while 20% of Czech GPD is car manufacturing;

• The Czech citizens will benefit from safer landings with EGNOS as soon as the procedures for Ostrava and Brno are finalized;

• Being the leader in Eastern Europe in adopting GNSS in agriculture, Czech farmers are already profiting from tangible benefits: reducing expenses on fertilizers, seeds etc. ;

• Czech population has the highest penetration of mobile phones in Central and Eastern Europe (ITU). GNSS penetration is the next step.

Czech industry and users can participate in the growing GNSS market in all main application areas

Czech industry takes already an active part in the EU R&D programme: example of Golden Ice

EGNOS-guided system for safer, more economical and more ecologically responsible salt distribution on winter roads

Tests prove a reduction of 30% of salt quantify consumed.

Recognised by Microsoft in its Green Microsoft Applications campaign

Successful demonstration in Prague on 12th Dec 2011 to 80 customers from different EU countries.

HANES, Prague based company, commercialises the product to Easter Europe.

GOLDEN-ICE: Salt-spreading (de-icing) using EGNOS

Maps view

Spreading Parameters

Spreader Functionalities

Snowplough Controls

NavCOM module

Dedicated CAN Bus

Power Pack

Software application for precise positioning based on an E5 targeting scientific users.

It exploits the increased range precision of the Galileo E5 signal by combining ‘code-and-carrier positioning’ in a single-frequency Galileo receiver.

Target applications: atmosphere monitoring, precise positioning change, precise orbit determination.

Institute of Atmospheric Physics of the Academy of Sciences (IAP) in Prague is responsible for Ionosphere monitoring

SX5: Scientific Service Support based on GALILEO E5 Receiver

NavX-NTR Receiver adapted to process

Galileo E5

Ionosphere monitor SX5 A1RS/A5RS: Autonomous reference

stations

Software suite for precise potitioning

Czech industry takes already an active part in the EU R&D programme: example of SX5

GSA market development activities accelerate the adoption of European GNSS and enable innovation

Market monitoring

• Market analysis & forecast• Analysis of public benefits• Tracking Action Plan KPIs

Application development

• FP7 R&D project management• Leveraging FP7 R&D results

User segments development

• Aviation• Agriculture

• Road ITS• Road RUC

• Mapping• LBS• Maritime • Rail

Segments:Services

• Galielo OS• Galileo CS• Galileo PRS• EGNOS OS• EGNOS SOL

Focused actions targeting selected user segments provide tangible results

Market monitoring

• GNSS market report• KPIs tracking for EC• Ad hoc analyses for GSA

stakeholders

Application development• 20 proof of concepts• 20 prototypes• 30 trials and demonstrations• 17 pre-commercial products

User segment development

• Aviation: landing procedures written via ACCEPTA project, relations with Receiver manufacturers

• Agriculture: ca 58% of EGNOS market share of GNSS users

• Road: EGNOS adoption in tolling schemes and OBUs• Mapping: EGNOS adoption interest by Receiver

manufacturers

4

Some Recommendations for CZ Industry & Start-ups

Think beyond the home market from the start

Learn soon if you have a scalable, defendable business

Use the opportunities of new accessible distribution channels (App Stores)

Don’t waste time in an incubator that only offers cheap offices

Don’t become a “subsidy junkie”, it is not a sustainable business

5

Some Recommendations for CZ Institutions

1. Build Networks for REAL Entrepreneurs

Assess CZ innovation potential and develop national priorities

Explain differences between Grant / Subsidy and Venture Capital

2. Apply EU instruments for CZ innovators

Use EU Funds smartly (“cohesion for innovation”/JEREMIE etc.)

Exploit CZ involvement in the EU’s Mobility / Mobile Services Alliance

3. Develop local instruments for innovation support

Provide GNSS Training / Coaching / Networking – e.g. upgrade incubators

Identify and train local investors who attract international capital