The document discusses the connected car ecosystem and opportunities. It begins with an introduction and agenda that separates autonomous from connected cars and outlines connected car applications and the ecosystem. It then discusses rules and regulations governing the space. The document provides an overview of key players in the connected car industry, including automakers investing heavily in telematics and embedding these systems in most new vehicles by 2018. It also discusses the strategies of telecom companies to become end-to-end providers in the connected car value chain.

1. CONNECTED CAR
Myths and Opportunities
Prepared for the SIP Association
Paris, Sept 25th 2015

2. TODAY’S AGENDA
• Introduction
• Autonomous vs. Connected
• Connected Car applications
• The ecosystem
• Rules of the game

3. ADVERTISING

4. 4 25/09/2015
Digital Business Empowerment in financial services
Through processes and technology, across four core domains
▶ Digital is much more than just technology and software. For any organization, becoming
truly digital requires a different mindset and increased flexibility.
▶ It requires a redefinition of corporate structures, bodies and roles and use of new technologies
▶ We drive digital innovation for our clients, across four core domains.
How to ensure
satisfaction across the
entire journey, predict
desires and directly
respond to them with
a personalized
relationship, making
every customer a
social advocate for
your organization?
CUSTOMER
EXPERIENCE
How do you build
trust, achieve
transparency and
smooth regulatory
compliance in this
new digital financial
services landscape?
TRUST &
COMPLIANCE
How can digital
transformation
support business
transformation
through the creation
of new business
models and the
monetization
opportunities for
financial institutions?
BUSINESS
REINVENTION
How to ensure agile,
flexible and scalable
operations, to
compete successfully
in the
digital age?
OPERATIONAL
EXCELLENCE

5. 5 25/09/2015
Atos at a glance
Powering digital business transformation
Clients
Key
solutions
Facts
We are an Integrated
Digital Services Leader –
#5 in the World
#3 in Europe
We are powering
progress, and
empowering
Digital business
transformation
We deliver a
complete value
chain of offers and
services based on
deep industry
expertise
Very significant presence in
the Financial Services
Industry
Enabled by our world class partners
► Annual revenue circa €11 billion (incl. Bull and Xerox acquisitions)
► Circa 95,000 employees in 72 countries (incl. Bull and Xerox
acquisitions)
► Your Business Technologists. Powering progress
Delivering
Digital
Transformation
CUSTOMER
EXPERIENCE
TRUST &
COMPLIANCE
BUSINESS
REINVENTION
OPERATIONAL
EXCELLENCE
► Consulting & Systems Integration
► Big Data & Cyber Security
► Managed Services
► Cloud Computing services
through Canopy
► Transaction & connected
services through Worldline
Renewing EnablingProviding Ensuring

6. 6 25/09/2015
We are enabling our clients’ digital
transformation end to end
c. €1.1bn
10%
IT
Services
€10,3bn
90%
Merchant Services
and Terminals
Financial Processing
and Software Licensing
Mobility and
e-Transactional Services
▶ Data analytics
▶ High Performance
Computing
▶ Cyber-security
▶ Securization of the
command systems
Big Data &
Cyber-security
Consulting &
Systems Integration
▶ Consulting & Technology
Services
▶ ERP Implementation &
Integration
▶ Solutions design,
development, testing &
deployment
▶ Application Management
Managed Services
▶ Workplace Services
▶ Application Operations
▶ Project Services
▶ Managed Infrastructure
Solutions
▶ Network and
Communications
Cloud & Enterprise software
▶ e-Consumer & Mobility
▶ e-Ticketing
▶ e-Government Collection
▶ Issuing Processing
▶ Acquiring Processing
▶ Online Banking
▶ Software Licensing
▶ Commercial Acquiring
▶ Online Services
▶ Private Label Cards & Loyalty
services
▶ Terminals

7. 7 25/09/2015
Atos driving innovation
Constantly discovering new solutions to confront your digital challenges
Scientific Community / Ascent
A key thought leadership center
▶ >100+ “creators of change”
Ascent – Journey 2016, Journey
2018
Emerging
Technology Tours
Atos Research and
Innovation Institute
▶ Global R&D hub Patents >1900+
▶ R&D > 2% revenue per annum
ZeroEmail & Enterprise Social
Network
▶ BlueKiwi, Sharepoint and Lync
▶ Achievements: 60% mail reduction and
collaboration ratio of 20 against 2011!
Business Technology Innovation
Centers (> 7 globally)
▶ Experts demonstrating key solutions,
leveraging partnerships and alliances
▶ Innovation workshops
▶ Technology showcase- demos- POCs
Co-Innovation for new
solutions
▶ Open technology and
Ecosystems management
▶ e.g.: Connected Car; R-
Link tablets

8. 8 25/09/2015
Atos historical footprint in the connected world
1980
Payment
Terminal
2009
Smart Metering
ErDF Linky
2011
Connected Car
R-link
2013
Connected Appliance
B/S/H/
2015
Connected
Everything
Connected City
Connected Patient
Connected Building
Connected Home
Initially only focused on data push and collection,
Connected Living is now growing towards new business models
Initially only focused on data push and collection,
Connected Living is now growing towards new business models
2004
Speed Cams
2007
Bike
Sharing
Effia
2012
Connected
Truck
Michelin
Solutions

9. AUTONOMOUS &
CONNECTED CAR

10. 10 25/09/2015
Foreword - Definitions
Autonomous Vehicle Connected Car

11. 11 25/09/2015
Autonomous Vehicle
Dramatic fall of accidents
A strong « societal » case
Time gain (traffic optimisation)
Electrification enabler
Less vehicles – sharing &
mass transportation
Emission reduction

12. 12 25/09/2015
Autonomous Vehicle
No more accidents?
Car Insurance - A « legal » business?
Consumer readiness
Responsibility
& legal implications
Regulators’ reactions
Individual cars or individual
mobility services ?

13. 13 25/09/2015
Atos view
A gradual process based on a learning curve towards intelligent cars
13
Connected car Connected Driver Connected Consumer
• Clearly not an end to
itself, but the starting
point of profound industry
revolution
• IVI served as test-bed for
cooperation between
OEM and technology
providers
• Capture valuable insight
into client behavior
paving the way to future
product development
• Increased car autonomy to
improve road safety and
user experience
• Addition of sensors & Safety
generating more Data & Safety
needs
• From IVI apps to car and
customer-specific services
including provisioning &
payments
• Vehicle Relationship
maintenance services
• The autonomous car,
the Internet of cars, the
digital retail, the
ecosystem built around
the car maker, will shape
a new digital living
relationship
• Integrated set of
convenience services, in &
out of the car
• Business Reinvention
for car industry and
those related– services
incl. insurance

14. 14 25/09/2015
Connected Car Evolution
in Digital “Connected” World
2010 2015 2020
"Demotorization" trend
Mobility anywhere
everywhere – high tech
emotional appeal
New regulations are
coming (UE eCall, SVT,
Russian ERA-Glonass)
Electric vehicle
system requires
advanced connected
services
Massive communication
between cars (Car2x)
Content data available
in the cloud
Telco Mgt mass market
TCU & Head-Unit are
affordable and become a
new sales channel
Car Data are
valuable
Connected services a
high % of the car
manufacturers growth
margin
2006 2007 2008 2009 2011 2012 2013 2014 2016 2017 2018 2019
Telematics
1.0
< 1M units
Telematics
2.0
1-6M units
Telematics
3.0
2M-10M units
Telematics
4.0
10M-100M
Nissan US first fully
autonomous car
(no 3D map) for showrooms
JLR , Daimler,
Conti target for
fully autonomous
2021 2022 2023 2024

15. 15 25/09/2015
The societal case for connected car : safety

16. 16 25/09/2015
The societal case for connected car : insurance
value chain
Impact of vehicle connectivity on U.S. Insurance value chain
Usage &Usage &Usage &Usage &
BehaviourBehaviourBehaviourBehaviour
10 -30% of
premiums
CrashCrashCrashCrash
PreventionPreventionPreventionPrevention
20 - 35%
of crashes
FastFastFastFast &&&&
CorrectCorrectCorrectCorrect
ResponseResponseResponseResponse
5 - 15%
of savings
Claims &Claims &Claims &Claims &
CostCostCostCost
ReductionReductionReductionReduction
30 - 80%
of savings
LawLawLawLaw
EnforcementEnforcementEnforcementEnforcement
20 - 30%
of savings

17. 17 25/09/2015
Customers’ readiness…. and expectations
WouldWouldWouldWould switch toswitch toswitch toswitch to anotheranotheranotheranother
manufacturermanufacturermanufacturermanufacturer if only one to offer
full access to apps, data & media
WWWWillingillingillingilling totototo paypaypaypay for servicesfor servicesfor servicesfor services in
my car on a subscription
model basis
21%
32%
0%
5%
10%
15%
20%
25%
30%
35%
2014 2015
20%
37%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2014 2015
Source : McKinsey , 3000 recent car consumers

18. CONNECTED CAR
APPLICATIONS

19. 19 25/09/2015
The connected consumer
Megane Movie

20. 20 25/09/2015
A wealth of applications

21. 21 25/09/2015
A wealth of applications.... for insurance
Customer Relationship
Connection with Agent
Thief and Fraud
prevention
Accident
prevention –
weather & traffic
Accident prevention – phone & texting reduction
Mileage
reduction /
Safer traveling
UBI &
Temporary
insurance
Collaborative
insurance & car
sharing
Telematics :
- UBI
- Fleet Mgt
- Ecall, driver & car assistance,
- Car diagnosis….

22. ECOSYSTEM
Lined up co-opetition

23. Ecosystem : Revenue flows
Source: Atos, Envisioning automotive futures connected cars for smart mobility

24. 24 25/09/2015
All car manufacturers with no exception
are working hard on telematics
▶ ABSOLUTELY CRITICAL
▶ Loosing money on car
manufacturing & Making
money on car parts
▶ Feed dealerships and create
customer loyalty
▶ Respond to car sharing, new
usages and « mobility »
barbarians
▶ FOCUSED & AMBITIOUS
▶ 80% to 100% vehicles
equiped by 2018
▶ Acquisitions & Partnerships :
▶ Toyota – Insure the Box acquisition
▶ BMW – Here mapping capabilities &
co-developments with Mercedes&Audi
▶ Renault – The Floow insurance
analytics & Atos technologies
▶ All spending 100Ms in user
interfaces & telematics

25. 25 25/09/2015
Embedded telematics vehicle coverage
0
10
20
30
40
50
60
70
80
90
100
2010 2012 2014 2016 2018 2020
Europe US China
Annual Fitment Rate of
Embedded Telematics (%)
Source: Morgan Stanley & BCG

26. 26 25/09/2015
Telco strategy
… being an end to end provider
26
▶ B2C Sales> SIM > Box > Install
> Network > Services > Payments >
▶ Barriers:
– Need clarification in terms of economic
model – BtoB, BtoC?
– Car manufacturers’ and Gafas value
propositions and conflicting interests
▶ Examples :
– OBS Fleet avec PSA
– ByTel with PSA (Connect Apps)
– Sprint withChrysler
– Vodafone –rachat de Cobra
– Telefonica – UBI in Germany
– …

27. 27 25/09/2015
The role of Google & Apple
▶ Google Auto, Apple Car Play & Mirrorlink are used to get
accessible smartphone apps into the vehicle (“mirroring”)
▶ The Primary value added is a better integration with the vehicle
& improve driver safety:
- Car speakers
- Steering wheel control
- Apps “white-list”’
- Better GPS (“dead rekoning”)
▶ Most of the IVI apps will be supplied into the vehicle by this
mean
▶ Clearly a more ambitious agenda at hand :
– Google car, services and venues in Health and Insurance
– Apple car

28. A WORLD OF OPPORTUNITIES
How to Play

29. 29 25/09/2015
Atos first hand insights into Key Success factors, thanks to
20+ years experience in connected objects
Trust
Ease of Use
IT
Modernisation
Applied
Analytics
Open
Ecosystem

30. 30 25/09/2015
Trust & Risk Management
Managing Cyber-risk
• Datacenter
physical protection
• On premise « phygital »
protection (car and data
centers intrusion detection)
• Cloud architecture
&protection
• Machine to Machine « big
data » protection
Trust

31. 31 25/09/2015
R-Link elected number one on usability test!
Ease of Use
Renault R-Link B2C, elected number one on usability test
Ease of Use

32. 32 25/09/2015
IT - Connected Vehicle Playing Field IT Modern

33. 33 25/09/2015
Connecting the dots
Atos Connected Living Solutions
Connected Vehicles
for Automotive & Transport, Insurances
& Services
Connected Building
Indoor Location of persons & assets,
remote diag of buildings & infrastructures
Connected City and
Infrastructure
Part of Worldline Smart City, electric
charging stations, Veh. sharing , smart
sensing
Connected Home
Connected appliances’ services, energy
monitoring and connected
Entertainment
EasyConnect
To connect your products
Contextual Mobility
To create your Audience
Big Data Analytics
To optimise your profitability
Consumer support services
To monetize the services
IT Modernization

34. 34 25/09/2015
eCar
▶ Onboard-units
▶ Dashboard / Driver interfaces
▶ PDA & Mobile phone interfaces
▶ Telecommunication links
▶ Content display
▶ Car2X-communication
Charger
▶ Authentication
▶ Billing
▶ Communication
▶ Content display
▶ Fraud prevention
▶ Billing
▶ CRM
▶ Reservation
▶ Managed driving
(navigation & routing)
▶ Inventory Management
▶ Content distribution
▶ B2B-portals
▶ Security
Back Office
Customer Care
▶ Call Center
▶ Breakdown & Emergency
handling
User
▶ Self-care portal
▶ Booking & Reservation
▶ Content ordering
▶ Charging Interaction
Communication
networks
The full technology & operations picture :
example Atos e-car platform
IT Modern
Open
Ecosystem

35. 35 25/09/2015
Applied Analytics
From traditional View To Connected, customer centric user cases
« My son takes the car »
« I happen to drive near my agency »
« I infringe the law »
« I just had an accident »
« My car is broken, a part is to break »
« I am falling asleep »
Applied
Analytics

36. Atos, the Atos logo, Atos Consulting, Atos Sphere, Atos Cloud and
Atos Worldgrid, Worldline, blueKiwi are registered trademarks of
Atos Group.
© 2014 Atos. Confidential information owned by Atos, to be used by
the recipient only. This document, or any part of it,
may not be reproduced, copied, circulated and/or distributed nor
quoted without prior written approval from Atos.
© For internal use
25/09/2015
Thank You !
laurent.gibert@atos.net

37. APPENDIX