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Business Model Interactive Briefing With Gm. Think And Psa V2

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Business Model Interactive Briefing With Gm. Think And Psa V2

  1. 1. New Business Models for Electric Vehicles: Perspective from Frost & Sullivan, GM, Peugeot Citroën and Think’s Senior Executives December 17, 2009 3:00 P.M. GMT / 10:00 A.M. EST
  2. 2. Today’s Presenters Tobias Reich, Marketing Director Electric Vehicles PSA Peugeot Citroën Anthony L. Posawatz, P.E. (Tony) Vehicle Line Director, Chevrolet Volt Global Electric Vehicle Development GM Sarwant Singh, Global Partner Automotive & Transportation Practice Director Frost & Sullivan Benny Daniel, Consultant Frost & Sullivan Richard Canny, CEO Think
  3. 3. Current Electric Vehicle Industry Structure: Provides opportunity for a new entity called Integrator to bring the EV services and value proposition together Could work to improve charging time and safety Infrastructure supplier Key Responsibility: Development of Charging Infrastructure Key Responsibility: Promotion of EV use Integrators to create partnerships with Utilities, OEMs and Government Subsidies for EV purchase and investment in R&D to reduce emissions Lower fuel dependency by expanding the use of renewable energy sources Supplies infrastructure to distribute their energy Cooperation to simultaneously promote EV use and electricity as a fuel Development of performing batteries Utilities Integrator OEMs System/Battery Manufacturers Government Charging Station Manufacturers
  4. 4. <ul><li>OEMs develop own / source charge stations </li></ul><ul><li>Utilities – through renewable energy sources </li></ul><ul><li>Consumers – through the excess energy generated from solar / turbine installations </li></ul>Source: Frost & Sullivan Integrators may own and operate certain EV services provided to consumers, while sourcing others from strategic partners. <ul><li>Utilities develop their own / sources charge stations </li></ul><ul><li>Integrators develop their own stations </li></ul><ul><li>Integrators source stations from third-party manufacturers </li></ul><ul><li>OEMs selling through distributor networks </li></ul><ul><li>OEMs using Internet-based sales channels </li></ul><ul><li>OEMs selling through integrator networks </li></ul><ul><li>Utilities emerging as OEM partners </li></ul><ul><li>OEMs from distributor networks </li></ul><ul><li>Battery swap specialists </li></ul><ul><li>Utilities – showcasing engineering expertise </li></ul><ul><li>IT industry or extension arm of OEMs for fleet mgmt. </li></ul><ul><li>Integrators – through central control centres </li></ul><ul><li>Mobile and network service providers </li></ul><ul><li>Transportation industry (rail, trams, buses and so on) </li></ul><ul><li>Charging station manufacturers </li></ul><ul><li>Telematic/ navigation services </li></ul><ul><li>OEMs through distributor networks </li></ul><ul><li>Battery suppliers </li></ul><ul><li>Utilities – showcasing green credentials </li></ul><ul><li>Recycling companies </li></ul>Possible Service Ownership / Partnership Scenarios Charging / Battery Stations Power / Energy EV Charge Payment Options EV Sales Maintenance/ After-sales Service Recycling / Battery Recovery Services Definition of an Integrator - Innovative enterprise that forms the single business interface managing diverse services delivered to the EV consumer <ul><li>Integrators’ battery swapping divisions </li></ul>6 * 2 * 5 * 4 * 4 * 5 = 4,800 Theoretical Ownership / Partnership Combinations
  5. 5. Business Models Analysis: EVs will be sold through new channels such as subscription-based energy packages to offset the initial high cost of lithium-ion batteries The customer opts for the number of years and a flexible mileage-customised lease Other Possible Leasing Models Source: Frost & Sullivan ~ €900-€1,500 € 500- €800 Up to €350 Up to €150 MONTHLY LEASE Free car 40% car price NA NA SUBSIDY 7 years 4 years NA NA CONTRACT (Illustration Only) Flat: 30,000 kms/year Flat: 25,000 kms/year Flat: Maximum 2,000 kms/month Monthly Bill ENERGY (Illustration Only) Maintenance Package+ Insurance+100% Discount Maintenance Package+ Discount Energy Package+ Maintenance Partial Battery Lease + Electricity COVER Full Subsidy Part Subsidy Maintenance Package Energy Package TYPE Business Model 4 Business Model 3 Business Model 2 Business Model 1 Flexible Contract Pay as you go Maximum number of miles Unlimited Miles Flexible Mileage
  6. 6. Breakdown of Energy Packages - Innovation lies in offsetting the high initial EV cost by clubbing after-sales services as a subscription energy package ENERGY PACKAGE 1  € 150 / month  40% Battery Recovery ENERGY PACKAGE 2  € 350 / month  40% Battery Recovery ENERGY PACKAGE 3  € 800 / month  60% subsidy  0% Battery Recovery ENERGY PACKAGE 4  € 1,500 / month  100% subsidy  0% Battery Recovery PART 40% 40% € 150 € 350 € 800 € 1500 60% price difference between EVs and IC engine vehicles € 3,000 € 3,000 AFTER-SALES SERVICES COSTS Source: Frost & Sullivan Subscription per Month Rebates Car Price Battery Cost Public Charging Battery Swapping Insurance Maint. Battery Recovery Car Recovery Ass. (65%) (70%) (80%) (100%) (60%) (75%) (100%) (100%)
  7. 7. Fleet Customer Total Cost of Ownership Analysis : A service Offering around €550 to €650 Will Resonate Well with the Fleet Customer Question: Please estimate how much you spend on the following per month (Euros) – based on 100 Fleet Manager Interviews in France, UK and Germany <ul><li>Interestingly, fuel amounts for up to 2/3 of fleet running costs across businesses interviewed with Business Delivery and Public sector seeing it take up the largest share of their Cost of Ownership </li></ul><ul><li>EV’s should aim to address the Fuel and Road Taxing costs for businesses </li></ul>* Based on 93 Interviews with Fleet Drivers who are involved in the choice and running costs of their vehicle
  8. 8. Utilities Business Model – Revenue Generating Opportunities Are Mainly Outside Selling Energy Capital Investment (1 st yr) Fixed & Operating Cost TOTAL: €1.9Bn - €2Bn € 640Mn - €650Mn € 48Mn - €50Mn Includes:  New Energy Capacity  Network Recurring Cost  Charging Station Purchase Cost  Installation and Maintenance cost  Logistics, Admin, Selling, general , rental, Marketing and Labour Cost CAGR = 161% (Over 5 years) CAGR = 127% (Revenue Opportunity to start from 3rd year) CAGR = 242% (Over 5 years) CAGR = 153% (Revenue Opportunity to start from 3rd year) CAGR = 158% (Over 5 years) CAGR = 153% (Over 5 years) CAGR = 242% (Over 5 years) CAGR € 150K - €165K 6. Revenues from Music Download € 340Mn - € 345Mn 7. Revenues from Others € 25K - €27K 5. Revenues from Garage Referrals € 600K - €625K 4. Revenues from Diagnostics € 490Mn - €500Mn 3. Revenues from Installation & Maintenance of Charging Stations € 650Mn - €700Mn 2. Revenues from selling Charging Stations € 390Mn - €400Mn 1. Revenues from Selling Electricity Calculated over 5 years Source Of Revenue Generation
  9. 9. Q&A
  10. 10. Next Steps <ul><li>Request a strategic approach document for EV Growth Partnership Service or Growth Consulting Service to support you and your team to accelerate the growth of your company. ( [email_address] ) +44 (0)20 7343 8383 </li></ul><ul><li>Frost & Sullivan Workshop: Growth Opportunities and New Business Models in the Electric Vehicles Market </li></ul><ul><ul><li>Dates : Tuesday 26 th (1:00pm – 3:00pm) January 2010 </li></ul></ul><ul><ul><li>Venues : EDTA Conference and Annual Meeting at the Washington Auto Show http://electricdrive.org/index.php?ht=d/sp/i/13273/pid/13273 </li></ul></ul><ul><li>3. Join us at our annual Growth, Innovation and Leadership 2010: A Frost & Sullivan Global Congress on Corporate Growth London, United Kingdom, 17 th to 19 th May 2010 </li></ul><ul><li> ( www.gil-global.com ) </li></ul><ul><li>4. Register for Frost & Sullivan Annual Electric Vehicle Workshop Titled “ ELECTRIC VEHICLES UNPLUGGED: New Business Models and Infrastructure Development Trends” </li></ul><ul><ul><li>Dates: Tuesday 22nd (afternoon) and Wednesday 23rd June (all day) 2010 </li></ul></ul><ul><ul><li>Venues: The Lords Terrace in the House of Lords and the SMMT </li></ul></ul><ul><li>5. Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities ( www.frost.com/news ) </li></ul>
  11. 11. Your Feedback is Important to Us <ul><li>Growth Forecasts? </li></ul><ul><li>Competitive Structure? </li></ul><ul><li>Emerging Mobility Trends? </li></ul><ul><li>Strategic Recommendations? </li></ul><ul><li>Other? </li></ul>Please inform us by taking our survey. What would you like to see from Frost & Sullivan’s Automotive Group?
  12. 12. For Additional Information Monika Kwiecinska Corporate Communications +48 223904127 [email_address] Cyril Cromier Sales Director Automotive & Transportation +33 (1) 42 81 22 44 [email_address] Brian Drake Business Development Director (+1) 248-836-8260 brian.drake@frost.com Sarwant Singh Partner & Practice Director Automotive & Transportation Practice +44 207 915 7843 [email_address]

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