The Connected Services OpportunityTimothy J. Yerdon

Visteon Electronics

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#1 DISPLAYS

#2 DRIVERINFORMATION

#3 COCKPITELECTRONICS

New Visteon Electronics Product Portfolio

AudioBezel audio

Silver box audioAudio components

Climate ControlsClimate control

head

Body & Security

Key fobImmobilizer

Tire pressure monitoring Body control module

Information & Controls

Decorative control panelClock

ParktronicCompass

DisplaysMulti-function display

Display assembly(bonding)

InfotainmentInfotainment head unit

Rear seat entertainment

Driver InformationReconfigurable cluster

Hybrid clusterHead-up display

Motorcycle cluster

Connectivity & TelematicsTelematics control unit

Bluetooth moduleWireless charging

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The world is becoming exponentially connected…

50+ billion connected devices

World population will hit 7.3B

~183B apps downloaded

2.8B 3G & 734M4G connections

WORLD IN 2015

WORLD IN 2022+…and connected vehicles are becoming integration hubs

Connected infrastructureConnected lifestyle

Connected vehiclesConnected Vehicles

Connected industry Connected home

Why the Internet of Things (IoT) ?

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Family of 4 will have

50 connected devices in 2020

By 2016, there will be 2.5 wireless connections

PER PERSON on earth

31BILLION

IoT devices by

2020

IoT will be a

$14.4 Trillionmarket by

2020

$800MIoT fund created in

Asia

What does the Internet of Things (IoT) enable?

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SAFETYEXPERIENCE

CONVENIENCE

ECONOMICS

EFFICIENCY

The Digital Life

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100

2.5

529

2.9

MINUTESper dayONLINE

HOURSper day in a car

MB/month10 hours connected

DEVICES

MobileCommerceIn 2016

CONSUMES

Wireless Data

$31B

GROWING 50% YOY

29%Would rather leave the house WITHOUT MONEYthan their SMARTPHONE

CARRIES

SPENDS

Consumers want the same user experience extended in to the car

Why the vehicle matters…

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Sources: Visteon infotainment & connectivity forecast Feb 2014, Cisco IBSG practice Connected Vehicle Report, Frost and Sullivan Connected Car Big data Webinar Jan 2014, Microsoft Security Intelligence Report, Panda Security, Consumer Reports, GSMA/SBD telematics forecast Feb 2014, Strategy Analytics Metrix forecast Feb 2014

$30Bby2018

$20B by 2018

Revenue from services drives rapid growth

$5Bhardware in 2018

Vehicle network security becomes a critical success factor for any connected solution

60% of warranty cost

are SW, > $1M per

major event

FOTA

Big Data worth

$150+per year

Embedded and Smartphonesolutions win

Total Revenue

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By Age Group

21 to 25 17

26 to 30 51

31 to 35 38

36 to 40 14

Over 40 13

By Gender

Male 99

Female 34

By Segment

B Segment 19

C Segment 42

D Segment 47

E Segment 25

Visteon Advanced Product Clinics Research – 133 Tota l Respondents

• Principal drivers of new vehicles (purchased within the last 18 months)

• No technology rejecters , spend more than 45 min a day in their car

• All smartphone owners

Respondent Profile

Advanced Product Clinics 2014 - China

Telematics

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49%

40%Previously Owned Never Owned

Although over 40% of global respondents indicated they have a telematics system, the frequency of use is limited.

Frequency of Using Telematics System

Never26%

Very Seldom

9%

Sometimes22%

Regularly26%

Often17%

Never60%Very

Seldom15%

Regularly15%

Often10%

Ownership of Telematics System

49%

19%

4%

28%

Telematics

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With a combined production in the U.S. and China, t here is a tremendous opportunity available to bundle a one time cost package with any new veh icle sold

Willingness to Pay

Appealing Payment Structure- By Percent Desired -

How Respondents prefer to Pay 52%

23%

2%

23%

One Time Fee Monthly Quarterly Annually

If Monthly: Optimal Price is $20/ 200 RBM

70%

90%

Big Data

The Future: The Connected Opportunity

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Legislation

Emergency CallV2X

Standards

Electronic Data

Recorder

Demonstrated ValuePay As You Drive

Insurance

Business Models

Over The Air

Apps

4G/LTE Deployment

Ease of Use

Data Security

Data protection

Social

Electric Vehicle

Adoption

Location-Based Advertising

Sustainable Transportation

EE ArchitecturesSplit Billing /

Multi-carrier SIM

Extend the Consumer

Relationship

Start

Autonomous Driving

We need to pick the right opportunities that drive value… We need to pick the right opportunities that drive value…

Please see important disclosures regarding “Forward Looking Information“

Digital Wallet

Vehicle Life Cycle

CES - January 6-9, 2015 in Las Vegas

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Unlocking the value of connectivityUnlocking the value of connectivity

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