Acquisition of Novero
Investor presentation
18th December 2015
What Novero brings to Laird
The acquisition of Novero and LSR rebalances our business, Wireless
Systems will now be of a similar scale to Performance Materials
Currently we own the leading technology for connectivity INTO the
vehicle
Novero gives us telematics control WITHIN the vehicle
This means we possess the technology to manage everything between
the external system and the infotainment front-end in the vehicle
2
Novero and Laird’s Combined Technologies
Service Centre
GPS and
Sat Radio
Cellular
Infotainment
Includes WiFi,
BT and BLE radios
Telematics
Control
Smart Antenna
Integrated Radios
and Antennas
Ethernet and/or CAN Data Bus
Wireless
Charging
Connection for
Hands Free
Calling and
Internet
Connectivity
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USB
Charging
Antenna
Coupling
Laird
Novero
eCall Hardware
•
Immediate alert of rescue services about the
accident (number of vehicles, vehicle types, etc.)
•
Precise knowledge of the location of the accident,
significantly reduced travel time
•
•
Software updates
over the air
Faster clearance of the accident site, less
secondary accidents, shorter traffic jams, lower
fuel consumption and lower CO2 emissions
Reduced costs for the insurance
companies, the health care
system and drivers
Up to 8 Wi-Fi devices in
the car can go online at the
same time with up to 100
MBit/s downstream
Safety-related errors
•
Comfort and infotainmentrelated errors
•
Additions, updates, new features
Track & Trace
Wi-Fi Hotspot
•
•
•
The position of a vehicle can be
displayed on a map so drivers can
be guided to the location
•
Carriers and logistics operators
can deliver more efficiently and
provide information about the
delivery automatically to their
customers
Telematics
Control
Remote Control
Remote Diagnostics
•
Data such as mileage, oil level and tyre
pressure can be queried via a smartphone app
•
Owners of electric cars can determine when the battery
needs to be recharged in order to cover a certain distance
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•
Turning the smartphone into a
smart and convenient remote
control for the car to control
temperature, lights and parking
Seamless connection
between mobile phone
and car antenna
Calls can be received in
high quality and position
detection is optimized
Antenna
Coupling
NO MORE DEAD SPOTS
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Reduces transmission power
to conserve battery life and
reduces radiation load
Ensures permanent optimal charging
capacity, no matter which position
the phone is placed in the tray
Functions as well
as on a PC
Data transfer
and charging
operate perfectly
in parallel
Device-specific cable
works just like at home
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USB
Charging
Wireless
Charging
Quick charging of
mobile devices in
cars without cables
Managing the Connectivity Space in Automotive
USB charging
Over the air software updates
Integrated DSRC shark
fin antenna
Smart antennas
provide optimal
RF performance
Full telematics control
DSRC (V2V / V2I)
antenna + receiver
Enhanced signal quality
Cellular, GNSS
Antenna + transceiver
Data pipe
Ability to integrate
consumer electronics
Emergency responders
Wireless charging
Connected devices
optimize fleet productivity
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WiFi
Bluetooth
LTE / MiMo antennas enable
in vehicle data streaming
Laird
Novero
Both
Technologies
Manufacturing in Europe that complements our Telematics global footprint
Advanced automotive reliability testing and certified in-house
electro-magnetic compatibility (EMC) testing
Integration of consumer electronic devices within the vehicle via:
• Wireless charging modules
• USB hubs
• Wireless signal enhancement
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Customers & Markets
Global automotive infotainment and connectivity market - €20bn
New customers - Mercedes-Benz, DAF and MAN (our first heavy
truck OEM)
Increase our fully contented wireless system solutions in a typical family
car from below $30 to more than $125
A key supplier to the largest auto manufacturers in Europe
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Customers
Companies and brands, trusting in our abilities
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Integration & synergies
REVENUE
• Bringing Novero’s products to a much wider audience with Tier 1 accreditation
• Gives Laird greater access to European OEMs – including in heavy vehicle
• Owning the technology INTO and WITHIN the car gives us a unique offering
• Financial strength to support revenue growth in the business
S U P P LY C H A I N
• We bring a manufacturing footprint with accredited facilities in Mexico,
Brazil and China - essential to sell into North America, Latin America and Asia
• General cost savings through shared systems, governance and rationalisation
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Connectivity
Three High Potential Future Scenarios
B U I LT I N
SOLUTIONS
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BEAMED IN
SOLUTIONS
BROUGHT IN
SOLUTIONS
Embedded TCUs
Vehicle-Centric Services:
Automotive HMI Solutions
Driver-Centric Services:
Smart Device Integration
User-Centric Services:
•
•
•
•
•
•
•
• Transform brought in apps
•
•
•
•
Safety / Security
Diagnosis
Vehicle Tracking
Efficient Driving
Autonomous Driving
Updates over the Air
V2V & V2I
–
–
to driver specific user interfaces
on the head unit
Social Networking
Personal Data Services
Messaging
Internet Access
Financial information
Total cost €65m
Cash €51m Shares €14m
31/12/14
Revenue
EBITDA
PBT
€m
83.7
8.4
1.3
• No net debt impact at
year end due to timing
of completion
• €7m (£5m) benefit on
Group underlying PBT in
2016 and industry standard
margins from 2017
We are confident this will deliver good value for our shareholders
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Summary
• LSR and Novero acquisitions strengthen our capabilities in Wireless
Systems, creating a better balance with Performance Materials
• Acquired technologies make us a leading player in management of
end-to-end vehicle connectivity; a strong position to be in as the
number of vehicle processors reduces from the current level of
30 – 40 to 6 – 7 in the future
• LSR added new technologies and a range of new EIoT markets,
Novero takes us to a leadership position in automotive connectivity,
a key market for the EIoT
• Gives us access to new customers and deeper penetration with
some of our existing customers
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Additional information
Technology Favourites
Global sales forecast of OEM connectivity solutions for passenger cars
Units in Million
Embedded solutions
Tethered Connectivity
Source: SBD/GSMA
100
90
80
70
60
50
40
30
20
10
0
2010
16
Device Integration
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Embedded Solutions
Smart Device Integration
Tethering Solutions
Both the connectivity and the
intelligence are built directly
into the vehicle.
The bring-your-own-device (BYOD) option:
driver has smartphone, smartphone has
apps, apps show up on connected car’s
dashboard monitor.
The intelligence and applications reside
in the car, but connectivity is delivered
through an external source such as a
smartphone.
The Future of Built in Solutions
Strong Market Growth: Embedded Telematics Control Unit Shipments
North America
Europe
Japan
China
India
Russia
Brazil
Source: Strategy Analytics
45000
40000
Units 000’s
35000
30000
China
25000
20000
15000
Europe
10000
North
America
5000
0
2010
17
2011
2012
2013
2014
2015
2016
2017
2018
2019
Drivers for Market Growth
Strong Growth Rates
• Regulatory requirements (e.g. Europe: e-call)
• OEM strategies for Safety / Security (Vehicle centric services)
• OEM strategies for new customer services (Driver based Services)
• TCU Shipments in 2020: 42 Million units
• TCU Revenues in 2020: $ 3.8 Billion
2020
Transforming Cellular Technology
Embedded Telematics Control Unit Shipments
2G
2,5G
3G
4G
Source: Strategy Analytics
45000
40000
Units 000’s
35000
30000
25000
20000
15000
10000
5000
0
2010
2011
2012
2013
2014
2015
Demanding scalable data rates
• Transforming cellular technology to 4G (LTE) for high end services
• Cost-driven solutions continue using 2.5G/ 3G
• Modules vs. chipset developments
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2016
2017
2018
2019
2020