Indoor Reality Mapping the indoors, one step at a time

Prof. Avideh Zakhor Qualcomm Chair of EECS at Cal Sold technology to Google in 2006 that creates exterior 3D modeling of buildings via aerial and terrestrial data Prof. Avideh Zakhor Google has licensed the 3D city modeling software resulting from the Visualization MURI program for which Prof. Avideh Zakhor acted as lead principal investigator from 2000 to 2006. Zakhor's research team at the video and image processing lab at UC Berkeley has created the first fully automated, fast, scalable data acquisition system and post-processing software which use collected data to build photo-realistic 3-D models of urban environments suitable for walk-throughs as well as fly-throughs. This software is closely related to the Google Earth product and can potentially enable Google to provide 3D maps to its users.

Google has mapped over 5 million unique roads From the earth to the moon and back…. …10 times

So why not map indoors? Alex: Nothing needs to change

Slow Manual Technology Why not map the indoors? Missing Floorplans No GPS Indoors Slow Manual Technology 5

Indoor Streetview Floorplans 3D Models With a quick walk through, Indoor Reality generates… Indoor Streetview Floorplans 3D Models Alex: Nothing needs to change 6

Development to date $4MM+ from Department of Defense and ARPA-E Solved the “indoor GPS” problem 2008 Today Logos to liven it up Does the 4 MM include the other 2 MM of DOE $1.75MM ARPA-E funding over 18 months to commercialize hardware and software 50+ student years of research 50+ technical papers 7

Mapping the indoors means mapping buildings Architecture, Engineering and Construction (AEC) Commercial Real Estate (CRE) 3D Models (planning) 3D Models (floor plans) Project Management Facilities Management Indoor Positioning Indoor Positioning Documentation Energy Audits 8

Global Construction Market Corresponds to 10 % of U.S. GDP Why AEC? Global Construction Market Over 90% of large projects go over budget $7.2 trillion In large projects over 30% cost overruns are common http://www.mckinsey.com/insights/infrastructure/megaprojects_the_good_the_bad_and_the_better http://www.3ds.com/industries/architecture-engineering-construction/optimized-construction/ https://www.pwc.com/gx/en/capital-projects-infrastructure/pdf/pwc-correcting-the-course-of-capital-projects-v3-pdf.pdf 25-30% Wasted for inefficiencies Corresponds to 10 % of U.S. GDP 9 Source: McKinsey, Dassault Systems, PWC

25-30% Why AEC? Wasted for inefficiencies Source: McKinsey 10 http://www.mckinsey.com/insights/infrastructure/the_construction_productivity_imperative This chart is over used in the AEC conference circuit, but this audience wouldn’t have seen it. May consider this as another slide to substantiate the WHY. 25-30% Wasted for inefficiencies 10 Source: McKinsey

Why projects go over budget? Lack of thorough measurements Extra work needed on-site because of flawed drawings Poor Planning Lack of understanding what is going on in the project Inability to find mistakes quickly Poor Execution Organizational Design Poor communication, information is lost Conflicting interests between stakeholders 11

Current solutions are slow and laborous What is being done today? Better Planning Static scanning for better measurements BIM modeling for better drawings Current solutions are slow and laborous Better Execution Software for better project management Organizational Design Better communication

Legacy solution: Using static scanners for 3D models c = 3.0 x 108 m/s2 Distance = c x time 13

Legacy solution: Using static scanners for 3D models Hang targets Scan, scan and scan again! Obtain point clouds Add time somehow – make it add up as you go in the bottom left next to the last thing to pop up – could just have a clock adding up and maybe a calendar with days coming off? Scan to BIM Revit modeling Stitch together point clouds from scans 14

Using Indoor Reality to generate 3D models Simultaneous localization and mapping Automated loop closure and stitching Automated surface reconstruction Automated floor plan generation Automated scan to BIM RAPID & AUTOMATED A single, continuous walk through 3d model and other data products 15

~15 minutes 2.5 minutes to scan! 2.5 hours to scan ~15 seconds

Indoor Reality generates a range of data products 3d point clouds Simplified/Complex 3d meshes Floor plans and room extraction Virtual walkthroughs Indoor streetview –like visuals Automated scan to BIM Make each image come in big and then recede to its position Maybe put floor plans/room extraction and indoor positioning together? Or just make it come out again. Whole building energy models Object identification and inventory Indoor positioning and real time occupancy tracking 17

First and Only Automated Indoor Mapping Solution Results First and Only Automated Indoor Mapping Solution Largest Catalog of Data Products Automated Workflow Data Acquisition 100x faster! 30x faster! 18

Remodeling/Renovation AEC: Applications Documentation Error Detection Boyan: We are looking to apply our technology to three elements of the AEC market: Documentation: Keeping up-to-date repository of information on project for later reference and more importantly on real time updates on project tracking Error Detection: Finding deviations from previous models or revit models before it’s too late Remodeling/Renovation: Create new as builts for existing buildings to make engineering drawings quickly and more accurately Remodeling/Renovation 19

Object Identification AEC: Market Fit Assessment Indoor Reality Tripod Scanner Drones Clipboard Object Identification Automation Indoor Capabilities ~ Accuracy Speed of Capture Ease of Use Boyan: Key notes: All from the customers’ perspective In this market we have several advantages over conventional methods like tripods and clipboards or new technology like drones Indoor Capabilities: Drones can only do open sites, just fly overhead. Need small one to get through doors, but then battery power and capacity of drone is weaker. Also need to avoid hitting people and other objects. Current drones for sale do not have lidar. Accuracy: Down to inch (end-to-end), Tripod Scanner is about 1/16th of an inch, Drones are 1-3 inch; Clipboard is dependent on individual measurement technique but generally does not include exact measurement Speed of Capture: Tripod is 20 sec/scan (day). Backpack is just walking around. Clipboard. On-site Ease of Use: Drones require someone from the drone company to operate. Tripod scanners have lots of training, stich it together. Much easier Object Identification: Specific value ad. The algorithms to identify objects Automation: Fully automated Cost-effective approach while being much faster, generally more accurate, and less cumbersome than the clipboard Object Identification Automation ~ Cost Effective 20

AEC: ROI for $50 million Renovation Project 21

Addressable with additional investment AEC: Market Opportunity ($ in millions) Boyan: Market Size for Project Documentation: Total construction market = $7T ~5% on PM costs = $350B Global Market: 0.5% of budget to documenting with 3D map = TAM = $1.75B Market size for Asbuilt and Planning Cost per sqft to renovate: $100 As-built cost ($/sqft): 10 cents or 0.1% Sqft (billion) remodeled each year: 29.14 billion sqft =(total global commercial space (583 billion sqft) / frequency of renovation (20 years)) As-built drawings cost (billion): $2.9 billion Market Size for Project Follow up: Construction market in US $1T Project Management inefficiencies cost $120 billion annually in the United States alone because of out-of- control delays, cost overruns, and other inefficiencies Global Construction= $7T ~10% Project cost in inefficiencies = $0.7T Question: How much can we fix and how much do we save them? Global market: 1% less inefficiencies -> $7B And they will pay ⅓ for service to fix ⅔ $2.1 B Near term addressable Addressable with additional investment

Who is the Customer? Owner Architect/Engineer Needs more accurate project drawings for renovations Wants more oversight and accountability on projects Needs to know what is happening and where mistakes are Wants better documentation to settle disputes Project Controls Most immediate pain, highest willingness to pay Project Manager 23

Where do we enter? Commercial Real Estate $2B Late Majority Small and Medium Construction Firms Long term opportunity in building operation Market entry point with early adopters $6.8B Early Majority Expansion to rest of AEC $400M Early Adopters Large construction firms Immediate 2-3 years 5+ years

How do we enter? Software as a Service Backpack production High Differentiation Backpack production Outsourced to 3rd party manufacturing partners Scanning Services Outsourced to 3rd party scanning service providers Low Differentiation Immediate 2-3 years 5+ years Indoor Reality Partners Uses Fast Integration Revit Integration Scan to BIM ¼’’ accuracy Automated stiching Project Tracking Clash Detection Remodels and Renovation Not required Indoor Reality Capabilities

Growth timeline Build sales force Seed funding Pilot customer Today 2020 Product development for AEC Manufacture backpacks Expand to CRE

Questions? Michelle Leuenberger Alex Caffey Tero Jannes Boyan Kovacic Jon Prowse Questions?

Addressable with additional investment $1.7 billion market opportunity with CRE ($ in millions) Market size for Asbuilt and Planning (needs 1/16’’) Total Lidar Market = $600M in 2020 Total growth =  16.3% CAGR ⅓ is civil Global Market: SAM = $200M in services and equipment for buildings Potential market: 1,161,000 Number of new building permits annually in the US 1 run per project $1000 per run -> $1B market costs: (5 runs / day per backpack) -> 1000 backpacks needed, lifetime 3 years = $25M + operating costs Market Size for Project Documentation: Total construction market = $7T ~5% on PM costs = $350B 0.5% of budget to documenting with 3D map = TAM = $1.57B Market Size for Project Follow up: Construction market in US $1T Project Management inefficiencies cost $120 billion annually in the United States alone because of out-of- control delays, cost overruns, and other inefficiencies Global Construction= $7T ~10% Project cost in inefficiencies = $0.7T Question: How much can we fix and how much do we save them? Global market: 1% less inefficiencies -> $7B And they will pay ⅓ for service to fix ⅔ $2.1 B Addressable with additional investment Near term addressable