MobileyeJust Business Consulting

Agenda

❏ Issues at Hand❏ Brief History of Mobileye❏ Growth of Mobileye❏ SWOT Analysis ❏ Recommendations❏ Financial Projections❏ Summary

Issues at Hand●Mobileye is being pressured by OEMs to reduce prices

and must decide whether to keep prices constant and risk loss of market share or lower its prices and reduce margins

●Mobileye must choose a partner to solidify its position in the impending automated driving revolution, choices include Google and OEMs

Brief History of Mobileye●Founded in 1999 by Amnon Shashua and

Ziv Aviram in Israel

● Aims to develop self autonomous car in their vision

● Developed cheap camera system that has sophisticated software to assist drivers

Brief History of Mobileye - Cont’●Developed processing algorithms called EyeQ

in 2006

●First adopted by automotive manufacturers such as BMW, General Motors and Volvo

●Offices in US, Israel, Germany, China and other 7000 new markets

●Seeks to provide technical solutions through ADAS as well as fusion system

Growth of Mobileye

Growth of Mobileye - Cont’Mobileye’s Penetration Rates

StrengthsStrong financial support from successful investors and IPO

Company focus on research and development of product technology

Most of the product is in the software, which has no variable costs associated with it

Positional advantage in the automotive value chain as a tier 2 supplier

WeaknessesSmall firm with only 437 employees (as of 2014)

Demand will increase in the future as automated driving becomes more common

Positional disadvantage in the automotive value chain as a tier 2 supplier due to increased competition

OpportunitiesStrategic alliances with companies within the automotive industry

Promote Mobileye and establish the Mobileye brand

Expand horizontally though associated products and services and capture aftermarket sales

Develop technology towards an automated driving system

ThreatsGovernment regulation on self-driving cars is in a grey area as

regulatory limits and specifications are yet to be set

Substitutes such as ladar systems and 3d mapping

Larger companies developing in-house solutions for ADAS and self-driving technology

Recommendations - BrandingMobileye is the leader Advanced Driver Assistance Systems

Mobileye should create awareness to car buyers and establish its name as the standard of ADAS through marketing: TV commercials partnering with OEM

Creating awareness and value will help Mobileye capture more market share and keep its prices constant

“Safety is not a luxury”

Recommendations - Automated Driving Partnership

Mobileye should keep its prices the same, as it will set the standard for ADAS safety

Do not partner up with Google. Instead, partner with an Original Equipment Manufacturer (OEM), ideally BMW or Tesla

Partnering with OEM towards development of automated driving, as automated driving is the future of Mobileye

Recommendations - Aftermarket IncentivesWork with insurance companies to provide discounts for drivers with

ADAS

- Example: Progressive Snapshot

Add dash-cam feature to Aftermarket products

- Evidence in event of accident

- Video for sports car enthusiasts

Quantitative AnalysisOEM ADAS

Average Revenue Generated per Car Model: $761,240

Gross Margin: 75.1%

Aftermarket ADAS

● Revenue Grew 21.6% in 2014

● Gross Margin: 69.2% in 2014, down to 62% with dash-cam feature

Automated Driving

First Models in 2019

Average Revenue Generated per Car Model: $1.2 M

Gross Margin: 75.1%

Revenue by Segment($U.S. in Thousands)

Projected Income Statement (USD K)($U.S. in Thousands)

Roll Out Plan1.Increase awareness of Mobileye as a brand

a. Scout for potential business partners in large OEMs

b. Organize marketing plan for the long term

2.Establish Mobileye brand as a innovator in automated drivinga. Partner with large OEM to have edge on marketing automated driving systems

b. Develop automated driving system through partnership as brand stabilizes

3.Horizontally integrate new products and servicesa. Partner with companies related to the automotive industry

b. Expand usage of the camera system by introducing security system, and features such as dash-cams

Thank you for your attention

Questions?