EMOBILITY1

1. P3-Group
Success factors for European Companies in the USA
for the xEV industry
Prepared for:
HMI 2011, GACCoM - eMobility in the USA
Presented by:
Rainer Aits,
CEO P3 Automotive & P3 North America
6th April 2011, Hannover

2. eMobility in the US, 06th April 2011 HMI, P3 Aits
Agenda
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS
P3 Company Overview 
ENABLERS FOR
SUCCESS
SUMMARY
CONTACT
xEV market & trends
Enablers for Success
Summary
2

3. eMobility in the US, 06th April 2011 HMI, P3 Aits
P3 Group - Your partner
P3 GROUP The P3 Group offers professional management services with core
OVERVIEW
competencies in process optimization for both Product Development
xEV MARKET & and Manufacturing.
TRENDS
ENABLERS FOR Beyond processes, the P3 Group offers engineering services ranging
SUCCESS from test strategy development, virtual prototyping, test planning
SUMMARY and execution to CAD and simulation projects for E/E, Infotainment,
Aviation and Telecommunications.
CONTACT
P3 was founded in 1996 as a spin-off company out of the
Fraunhofer-Institut für Produktionstechnologie (IPT) of the Technical
University in Aachen, Germany and mainly serves the automotive,
aviation and telecommunications industries.
P3 is a privately held company with 1200 experts and engineers
world wide with an approximate revenue of 170 million USD in 2008.
We don’t solely define strategies, methods and concepts but also
implement them with a pragmatic approach. Our guiding principles
are Flexibility, Quality Results and Customer Interests.
3

4. P3 Growth History – international success since 1996
japan energy & storage
Engineering & Infotainment Engineering Consulting Battery Experts
Testing Testing
1996 2000 2001 2002 2005 2006 2007 2008 2009 2010
south africa
Offshore & Consulting & Consulting Consulting
Engineering Engineering
Services
Offshore
marketing
Montréal,
Detroit, & Engineering
Canada Toulouse,
USA
France Aachen,
Vancouver, Hamburg,
Germany
Germany Wolfsburg,
Canada
Reading, Germany
UK
Windsor Locks,
USA
Seville,
Spain
Shanghai,
San Francisco,
Raleigh, China, Tokyo,
USA Morristown,
USA Japan
USA
Ingolstadt,
Stuttgart, Germany
Germany
Ulm, Germany Bangalore,
Cape Town, RSA Mumbai, India
India
1) P3 is Partner of the Eurogroup Alliance in Germany for the Branches Manufacturing and Utilities
4

5. eMobility in the US, 06th April 2011 HMI, P3 Aits
Our services encompass 3 core competencies allowing us to serve
clients from concept to implementation along the whole value
chain
P3 GROUP
OVERVIEW Strategy Professional Engineering
Consulting Management Services Solutions
xEV MARKET &
TRENDS At the corporate level, P3 helps For business, P3 helps clients Technically, P3 helps clients
clients meet their goals in the balance cost, quality, and develop and validate new
ENABLERS FOR most efficient method possible processes for new products products for the market
SUCCESS
COMPANY GOAL
SUMMARY VISION COST SYSTEM
CONTACT
SUB-SYSTEM
Balancing
STRATEGY
QUALITY TIMING COMPONENT
List of services (select): List of services (select): List of services (select):
• Business plan • Organization and process • Proof of concept
• Market entry strategy definition • Specification development
• Acquisition strategy • Cooperation management • Test strategies
• Sales strategy • Program management including • Software feature validation
• Product portfolio alignment prototypes • System integration
with the market • Supply chain management
• Cost and quality management
5

6. eMobility in the US, 06th April 2011 HMI, P3 Aits
Core Area`s within the P3 automotive Sector
R&D passenger car`s/ Trucks Alternative Actuations /EVs Strategy/M&A
 Process analysis/reorganization  Validation / Testing  Business development
P3 GROUP
 Testing & Validation Know-How
 Multi-Project management  Cooperation management  Strategy development
OVERVIEW  Experimental efficiency (e.g.CO2)  Business-/product planning & Wireless expertise
 Software  Portfolio management
 Risk management   System integration & specification
Requirements -Management  Turnaround management
xEV MARKET &
TRENDS  Prototype management   Telecommunication expertise
Technology assessment  Growth strategies
 Module-/Functional strategy   Diagnostics  Market entry strategies
Safety- und Quality concepts
ENABLERS FOR  Function development process  Pricing / Branding
SUCCESS
 Grid infrastructure
 Etc.
SUMMARY
Electric/ Electronic Supply Management Operations / Logistics
CONTACT  Strategy development E/E  Redesign global Supplier  Production strategy
 Validation concepts footprint  Lean management
 Architecture and concept  Make or Buy Strategies  Best practice/Benchmarking
development  Reorganization Prototype supply  Assembly optimization
 Project management  Optimization SCM  Production planning
Infotainment  Optimization In- / Outbound  Ramp-UP management
 Electrified drive chain Logistics
 Requirement documents E/E
Cost Management Quality management After Sales/Warranty
 Investment/Cost planning  Six-Sigma  Reengineering and corrective
 Bottom-up Budget planning  Supplier management action process
 Target Costing Hybrid-Vehicle  Quality organization  Diagnostic analysis team
 Target Costing product costs  QM-Systems  Defect analysis & optimization
 Cost Cutting  QM Process optimization  Defect rapid alert system
 Product cost analysis  Quality orientated project  Rent a Belt (Six Sigma)
 Value analysis control  Warranty cost optimization
6

7. eMobility in the US, 06th April 2011 HMI, P3 Aits
Our Customers – Automotive, Aviation, Telecom & Energy
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS
ENABLERS FOR
SUCCESS
SUMMARY
CONTACT
7

8. eMobility in the US, 06th April 2011 HMI, P3 Aits
Agenda
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS
P3 Company Overview 
ENABLERS FOR
SUCCESS
SUMMARY

CONTACT
xEV market & trends
Enablers for Success
Summary
8

9. eMobility in the US, 06th April 2011 HMI, P3 Aits
There are 3 challenging areas in the electric mobility industry
P3 GROUP
OVERVIEW
What technologies are
required in the vehicle?
xEV MARKET &
TRENDS
ENABLERS FOR Inside the vehicle
SUCCESS
SUMMARY
What kind of storage
CONTACT infrastructure is required, and
what is the business case?
Outside the vehicle
What are the requirements
of the billing-process?
Source: P3, 9

10. eMobility in the US, 06th April 2011 HMI, P3 Aits
The array of xEVs is continuously increasing among every
category of vehicle
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS
ENABLERS FOR
SUCCESS
SUMMARY
CONTACT
Source: P3, CSM 2011 10

11. eMobility in the US, 06th April 2011 HMI, P3 Aits
The global EV/HEV market is driven by several major trends
P3 GROUP Major Market Trends
OVERVIEW
xEV MARKET &
TRENDS • Li-Ion battery technology advances are allowing
Vehicle electrification technology
Technology and manufacturing capabilities
longer range electric vehicles
ENABLERS FOR • Automotive companies and governments are heavily
are growing
SUCCESS investing in EV/HEV technology
SUMMARY
• Major governments are raising fuel economy standards
& gasoline taxes in order to curb oil usage and reduce
CONTACT Fuel economy standards are
Fuel Economy dependence on foreign sources
increasing fast • OEMs are preparing for large increases in CAFÉ and EU
Major standards
EV/HEV
market • Emission regulations and eventual GHG requirements
Emissions and greenhouse gas are expected
industry Environmental requirements are increasing • Consumers are demanding “greener” vehicles
trends
Grid Smart metering infrastructure is • Regulators and utility companies are encouraging smart
being deployed metering in order to allow for vehicle recharging
Infrastructure • Charging infrastructure readiness is improving
Fuel prices are rising and • Oil prices are rising and growing in volatility
Fuel Prices becoming more volatile • Consumers are demanding more and more fuel
economy in order to reduce their fuel expenses
11

12. eMobility in the US, 06th April 2011 HMI, P3 Aits
In both NA & EU, the EV/HEV market is dominated by the
Top 10 OEMs
P3 GROUP NA EV/HEV market landscape – 2015 EU EV/HEV market landscape – 2015
OVERVIEW
xEV MARKET & • Market size in N.A. in 2015 – 1.64 Mill units • Market size in E.U. in 2015 – 0.92 Mill units
TRENDS
• These Top 10 OEMs hold 92% of the market in • These Top10 OEMs hold 92% of the market
ENABLERS FOR N. America in Europe
SUCCESS
SUMMARY
CONTACT
2% Others Others
2%
3%
8% 8%
3%
20%
32% 4%
4%
7%
5%
7%
8% 15%
8%
9%
15% 8% 12%
12% 10%
Source: Frost & Sullivan 2009, RB 2010, P3 12

13. eMobility in the US, 06th April 2011 HMI, P3 Aits
Globally, the xEV market is expected to have steady and strong
growth in both hybrid and electric vehicles
P3 GROUP
OVERVIEW 2010 – 2016 xEV global production (‘000 units) 2015 xEV production by type (%)
xEV MARKET &
TRENDS 24% CAGR Total EV/HEV vehicles produced = 3.4 m
ENABLERS FOR
3,475
SUCCESS 3,392 Electric
Electric
SUMMARY 3,111
20%
Hybrid -
CONTACT 2,676 Mild
2,135 Hybrid -
Mild 8%
1,660 Hybrid - 72%
1,153 Full
Hybrid -
Full
2010 2011 2012 2013 2014 2015 2016
NOTE: EV includes REX; Excludes micro-hybrids
Source: P3, Oct 2010 CSM 13

14. eMobility in the US, 06th April 2011 HMI, P3 Aits
Many xEVs will be manufactured in Japan/Korea, but production
in N. America and Europe are ramping up fast
P3 GROUP
OVERVIEW
2010 – 2016 xEV global production (‘000 units) 2015 xEV production by region (%)
xEV MARKET &
TRENDS Total EV/HEV vehicles produced = 3.4 m
ENABLERS FOR 3,475 S. Asia
3,392 China
SUCCESS
China
3,111 N.
SUMMARY N. America 5%
America
2,676 15%
CONTACT
2,135 Europe
1,660 56%
24% Japan/
1,153 Korea
Europe
Japan/
Korea
2010 2011 2012 2013 2014 2015 2016
NOTE: S. Asia is less than 0.1% in 2015
Source: P3, Oct 2010 CSM
14

15. eMobility in the US, 06th April 2011 HMI, P3 Aits
Each region of the world expects to have a different mix of xEVs
P3 GROUP TOTAL xEVs
OVERVIEW ELECTRIC VEHICLES HYBRID VEHICLES produced in 2015
(‘000)
xEV MARKET &
TRENDS Japan/ 88%
Korea 1,751
ENABLERS FOR 12%
SUCCESS
SUMMARY 57%
Europe 765
43%
CONTACT
N. 91%
457
America 9%
37%
China 155
63%
NOTE: EV includes REX; Excludes micro- and mild-hybrids TOTAL 3,128
Source: P3, Oct 2010 CSM
16

16. eMobility in the US, 06th April 2011 HMI, P3 Aits
xEVs are made possible by 3 enabling technology areas –
each area has a global supply base which are evolving fast
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS Enabler #1:
ENERGY STORAGE
ENABLERS FOR
SUCCESS
Battery pack
SUMMARY Battery cells
CONTACT Charger Enabler #3:
Enabler #2: ELECTRIC DRIVEN
ELECTRIC POWER ACCESSORIES
Motor Compressor
Inverter ED Water pump
EV gearbox ED Steering pump
DC/DC Converter Brake boost
Controller
Source: P3 17

17. eMobility in the US, 06th April 2011 HMI, P3 Aits
An important trend includes OEM in-sourcing of xEV components –
an important trend to consider when entering into the xEV market
P3 GROUP
OVERVIEW
xEV MARKET & Design and manufacturing responsibilities
TRENDS
MAJOR PRODUCT AREAS SUPPLIERS OEMs
ENABLERS FOR
SUCCESS Battery packs • At a high level, OEMs are
SUMMARY Energy storage Battery cells attempting to take design
and manufacturing
CONTACT Charger responsibilities of
important xEV product
Systems areas.
Motor
• These trends differ by
Inverter OEMs and by region.
Electric power Gearbox • Most xEV component
suppliers are cautious of
DC/DC Converter these trends, influencing
Controller (VCU) their corporate strategy.
Compressor
Electric driven Water pump
accessories
Steering pump
Brake boost
Source: P3 18

18. eMobility in the US, 06th April 2011 HMI, P3 Aits
Agenda
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS
P3 Company Overview 
ENABLERS FOR
SUCCESS
SUMMARY

CONTACT
xEV market & trends
Enablers for Success 
Summary
19

19. eMobility in the US, 06th April 2011 HMI, P3 Aits
Our challenge within P3 was to combine 2 different cultures –
this was one Enabler to establish P3NA in the US auto market
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS
ENABLERS FOR
SUCCESS
SUMMARY Target Target
B
CONTACT B
3 hr. 2 min.
A
A
Plan 2min. Plan 3 hr.
Conclusion: The best way to get from A to B takes 3hr. and 2min. -
20

20. eMobility in the US, 06th April 2011 HMI, P3 Aits
9 Major Evaluation Criteria's (EC) for companies to be successful in
xEV market
P3 GROUP ECS FOR OEMS/SUPPLIER (-) CURRENT CUSTOMER FOCUS (+)
OVERVIEW
xEV MARKET & Market analysis +
TRENDS 1
ENABLERS FOR
SUCCESS 2 Strategic position
SUMMARY
CONTACT
3 Product portfolio -
New business models
4
5 Vertical Integration +
6 Cooperation's/M&A
-
R&D Expertise
7
8 Production strategy +
9 Supplier business
(*) Source rough estimation at 50 P3 xEV Projects
- - not enough focus
+ enough focus 21

21. eMobility in the US, 06th April 2011 HMI, P3 Aits
Our P3 Key Success Factors (KSF) to enter the US xEV market
P3 GROUP KSF WITHIN P3 MAIN ENABLER
OVERVIEW
 Set-up a Management “Bridge” on CEO Level
xEV MARKET &
 Ensure a good employee mixture of American's and German's
TRENDS
PEOPLE e.g. 80% US employees, 20% German/EU consultants/engineers
ENABLERS FOR  Hire the right people
SUCCESS (electronics, mechatronics, SW Engineers etc. )
SUMMARY
CONTACT  All competence areas are alive and kicking, but continued
development of expertise and products
COMPETENCIES  Ensure global competence transfer
 Combine Strategy Cons and Engineering Service
 Develop new creative products
 Establish contacts to the universities
PRODUCTS
 Business development and Flexibility is important
 OVERALL: … Listen to the customer…..
 Investigation in networking
 Boost the Speeches & Publications
BRANDING  Tell everybody we are the #1 in xEV Business
 Our Mission: Growth is the only way
22

22. eMobility in the US, 06th April 2011 HMI, P3 Aits
P3 has built its xEV and alternative Powertrain expertise through 4
primary types of projects
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS
ENABLERS FOR Battery Expertise Hybrid E-Vehicle Diagnostics
SUCCESS
 Li-Ion & NiMH  Cooperation & Program  Specification  Definition and
SUMMARY Technologies Management Development : development of Battery
Customer Req - > Tech. Management System
CONTACT  Technology  E-Motor, Software & spec (House of Quality) BMS requirements
Benchmarking High Voltage
Technologies  Project Setup  Test Case definition
 Safety Concept
and validation of BMS
 Cost Management  Supplier Selection,
 Logistics Requirements, Qualification,  Monitoring/ Diagnosing
Concepts & Planning  Technology Optimization of battery usage and
Benchmarking
 Validation Test Planning event flagging
 Program Management
& Test data  Prototype Management
 Communication and
Management  Outsourcing of
 Root Cause Assessments visualization of state of
Engineering Services
 Specification charge and energy
Development (SOR)  Supplier Quality  Equipment Supplier usage through the
 Process Re-Engineering Management infotainment system
 Electronics & BMS
 Requirements Definition  Timing Synchronization  Potential for
 Production Audits (OEM and Supplier) communication through
and Management
 Prototype Planning and integrated telematics
 Risk Assessment  Cooperation
Build Management Management
 Master Plan
Development
23

23. eMobility in the US, 06th April 2011 HMI, P3 Aits
Agenda
P3 GROUP
OVERVIEW
xEV MARKET &
TRENDS
P3 Company Overview 
ENABLERS FOR
SUCCESS
SUMMARY

CONTACT
xEV market & trends
Enablers for Success 
Summary 
24

24. eMobility in the US, 06th April 2011 HMI, P3 Aits
Summary for successful xEV Business in the USA
P3 GROUP FOCUS ON KEY CONCLUSIONS
OVERVIEW
xEV MARKET &
 Strategic company positioning
TRENDS  OEM/Supplier long term strategic
ENABLERS FOR partnerships
CUSTOMER
SUCCESS  Strategic relationships with utility
SUMMARY companies
 Enough technical talent especially
CONTACT PEOPLE
automotive electrical and software
engineers
PRODUCT
 Use global expertise network
 Vehicle system integration capabilities
 Li-Ion battery-design for vehicle
range, long life, and serviceability
(After market)
 Standardization of core component
designs (especially in
motors/inverters)
25

25. eMobility in the US, 06th April 2011 HMI, P3 Aits
Thank you for your attention!
P3 GROUP listen consult
OVERVIEW Dr. Samit Ghosh
CEO P3 North America, Inc.
xEV MARKET &
TRENDS +1 248 818 0531
Samit.Ghosh@p3-group.com
ENABLERS FOR
SUCCESS
SUMMARY
CONTACT
implement Rainer Aits
CEO P3 automotive
+ 49 163 75 33 770
rainer.aits@p3-group.com
Dieses Dokument enthält vertrauliche Informationen der P3 — Group und darf ohne die ausdrückliche schriftliche Genehmigung nicht
vervielfältigt oder einem Dritten gegenüber enthüllt werden. Dieses Dokument und sein Inhalt dürfen nur zu bestimmungsgemäßen Zwecken
verwendet werden.
This document contains P3 — Group proprietary information and shall at all times remain the property of P3 — Group. It shall be
distributed and used only by the subcontractor staff registered on the distribution list of this document. The subcontractor is not allowed
to copy this document without P3 — Group prior written consent. It shall not be used, distributed or copied by any other third part without
P3 — Group prior written consent. 26

26. eMobility in the US, 06th April 2011 HMI, P3 Aits
Global car sales
Source: GBI March 2010 27