1. Australia’s Emerging Telematics Industry - Integrating Globally in a Digital World 13 th World Electronics Forum Israel Angus M Robinson Chief Executive, AEEMA November 2007

2. Today’s Agenda   The Digital Revolution – CES 2007 perspective   Australia’s Electronics Industry Action Agenda   Integrating globally   Australia’s Emerging Telematics Industry   Industry Consolidation

3. The Networked Consumer CES, Las Vegas, January 2007 The Networked Consumer CES, Las Vegas, January 2007 the convergence of content, services and products “What defined the 2007 International CES is that it is all about the ‘new convergence’: the convergence of content, services and products” Gary Shapiro, the President and Chief Executive of the Consumer Electronics Association networked consumer ‘It’s the networked consumer’ John Chambers, CEO, CISCO Systems

4. More From John Chambers, CISCO CES, Las Vegas, January 2007 More From John Chambers, CISCO CES, Las Vegas, January 2007 the human network‘people subscribing to people’. ‘The networked consumer” heralded the evolution of a new operating paradigm – ‘the human network’ with ‘people subscribing to people’. Once video is married to voice, data and mobility “Once video is married to voice, data and mobility, the way we work, live and communicate will change”. new revenue streams for content providers and device manufacturers to innovate and add value on top of the network “Such an environment would provide new revenue streams for content providers and device manufacturers to innovate and add value on top of the network”.

5. Main Office 1 Main Office 2 Remote Office Home IP-PBX PBX PSTN IPMobile IP Centrex Mobile Worker Connected Delivered Services, “Networked Consumer” Source: Telstra Corporation Automobile

6. Automotive telematics - consumer applications “Always on-line, real time information anytime, anywhere” Infotainment STB Digital TV Digital Radio DVD Movies CD MP3 Games Music downloads World Wide web Portal E-mail SMS Bluetooth WiFi Voice Control Voice Portal Digital Pictures Picture Messaging Navigation Concierge services Restaurants locations Parking locations Hotel locations Weather and Traffic Tourist Info Auto Assist Location based services Mobile Commerce Book and Purchase Movie tickets Theatre tickets Gaming Toll payments Tracking Remote Door unlock Stolen car disable Diagnostic monitoring Crash detection Other Services Safety Security Revenue Sources HardwareHardware SoftwareSoftware SubscriptionSubscription

7. Australian electronics industry development Electronics Industry Action Agenda is focusing on  a unified industry  a shared vision  commercialisation of R&D  industry clustering  an export focus  Branding under ‘Branding Australia’

8. Efforts made/making to enhance value Higher Added-value and Lower Replacement PRODUCT REALISATION CENTRE Marketing Brand Innovation Design R&D R&D/Innovation Centre Value Creation Standardization AddedValue Value-added Chain Global Logistic Centre Logistic Assembly Manufacture

9. Electronics Industry Action Agenda - key realisations  Electronics & other ICTs are pervasive, enabling, transforming – ‘horizontal’  These technologies enable a whole suite of vertical industry sectors such as defence, automotive, mining, telecommunications etc  Several of these sectors offered substantial opportunities for domestic industry development as well as serving new overseas markets, particularly in the and the USA  Several of these sectors offered substantial opportunities for domestic industry development as well as serving new overseas markets, particularly in the Greater China Region and the USA

10. Australia - ‘Greater China’ Engagement Focus Taiwan China Australia Hong Kong USA Japan Korea ThailandASEAN Underpinned by Government support e.g. linked to mechanisms such as the Australia-Taiwan Strategic Framework Agreement (ATSFA) and the Australia Thailand FTA for the mutual development of the electronics/ICT industries Underpinned by Government support e.g. Electronics Industry Action Agenda linked to mechanisms such as the Australia-Taiwan Strategic Framework Agreement (ATSFA) and the Australia Thailand FTA for the mutual development of the electronics/ICT industries

11. Australia’s electronics industry game plan? Commercialise & Distribute MassManufacture Commercialise IdentifyMarket Source Comp. Capabilities Design, develop & integrate & integrate

12. AEEMA International linkages ‘Greater China/North Asia Region’  MOU with TEEMA, strategic framework agreement with III (Taiwan)  MOU with HKEIA and Hong Kong Auto Parts Industry Association  MOU with CECC, China  MOU with KOTEF, Korea, joint projects with KOBTA  MOU with CIAJ, Japan  MOU with ATiS, Singapore  MOU with FTI, Thailand  Active member of the World Electronics Forum, and the Global Telematics Forum (Australia, Korea, US and Sweden)  Active member of Asian Electronics Forum and Asia Telecom & Information Exchange (ATIE).

13.  AEEMA participated in the inaugural conference of the Global Telematics Forum, 30 October 3007  Founding partners – Australia, Korea, Sweden and the USA  Members to be invited – China, Taiwan  Forum will promote the sound development of the global industry through mutual cooperation, understanding and benefit of the Forum’s members

14. Automotive Telematics – the Six Cs  Computing  Communications  Consumer Electronics  Car  Content  Channel

15. Automotive Electronics Suppliers in Taiwan Antiglare Rear View Mirror Navigation Adaptive Headlight E/E Suspension Automatic AC HUD OBU Infortainment Short Range Radar Brake by Wire Smart Air Bag Keyless Entry Control Adaptive Fuel Injection Tyre Pressure Monitor Adaptive Cruise Control Parking Assist Side Air Bag Door Sun Roof Digitalized Display Automatic Transmission ABS Dynamic Balance Control Source ： IEK/ITRI （ 2005/08 ） 徽昌電子

16. From Traditional Car to Smart Car and ITS System 1980 1990 2000 2005 2010 2020 Computer Control Substitution Control of mechanical/electrical systems: Engine, power-train, chassis, interior and other functions First basic functions Then improved performance And then new functionality Telematics Applications using 2-way communication & location detection Safety/security, real-time navig’n, content access, entertainment X-by-Wire System Replace mechanical-hydraulics with electronic systems Steer-by-wire, brake-by-wire, throttle-by-wire Smart Car Advanced functions using sensors & computer power Driver assist and active safety functions ITS IT communication Traffic Management, advanced highways Source ： TRG,IEK/ITRI, Taiwan （ 2005/08)

17. Vehicle Maintenance Service bookings Remote diagnosis Online software update Safety Crash notification Crash data Medical record link Security Remote lock / unlock Low battery alert Emergency call Theft alert Remote immobilisation Vehicle tracking Driver Assist Vehicle locate Traffic camera view Real time traffic Navigation Car park vacancies and prices Nearest fuel and prices Tollway account balance Information News Weather / Rain map Finance / Shares Internet search Email Concierge Personal calling Restaurants Theatre / Cinema Fleet Fuel level Speed Geo fence Automated FBT reporting Entertainment Car to car gaming Networked video Digital TV Music download Movie download Personal photo display Rear seat access Home Automation Alarm systems Lights Garage door Gates Front door camera Heating / Air conditioning Sprinkler system Appliances Combined automation Identified Australian Industry Capabilities

18. Telematics Cluster

19. LOW VOLUME MEDIUM VOLUME HIGH VOLUME LOW VALUE MEDIUM VALUE HIGH VALUE Consumer Electronics Cos e.g. Sony, LG, Samsung, BenQ, HP, etc Electronics Standards (EMC, CE), Product Stewardship, Environmental, Quality and Technical Standards, OH&S, Geography Specific Business regulation, etc. Auto Manufacturers Location Service Providers Digital Content, Media SUPPLY NETWORK CLIENTS & CUSTOMERS World Markets North America, Europe, Greater China, North Asia Australian Markets REGULATORS & REGULATIONS COLLECTIVE SUPPORT INFRASTRUCTURE Technology precincts (ATP), Technology Networks and Clusters (AEEMA, ITS and FAPM), Telcos, Wireless operators, Testing Facilities, NICTA, CSIRO, Universities/TAFE, Government agencies eg RTA, Vic Road, toll way operators OEM FINAL CUSTOMER OEM FINAL CUSTOMER TECHNOLOGY INTEGRATION TELEMATICS ECOSYSTEM (Defined by Technology/Solution) Define the core technologies -- VALUE -- -- VOLUME -- OEM FINAL CUS`TOMER OEM FINAL CUSTOMER COMMERCIALISATIONMARKETING ICT/Electronics SMEs ICT MNCs e.g. Google, Microsoft, Yahoo, Intel, IBM Auto Component Manufacturers

20. ‘ Telematics Ecosystem Australia’s automotive manufacturers ‘ Telematics Ecosystem’ Australia’s automotive manufacturers  General Motors (Holden)  Toyota  Ford  Mitsubishi  Holden and Toyota have global design centres  Well developed ‘after market’ industry

21. Telematics Ecosystem’ Major ‘electronics’ automotive component manufacturers based in Australia ‘ Telematics Ecosystem’ Major ‘electronics’ automotive component manufacturers based in Australia   Air International Futuris Automotive   Autoliv Australia   Australian Arrow   Bosch   Denso International   PBR International   Redarc Electronics   Schefenacker   Siemens VDO Automotive   Startronics   Tyco Electronics

22. Telematics Ecosystem’ Communications Providers in Australia ‘ Telematics Ecosystem’ Communications Providers in Australia  Four 3G operators  Four 3G operators – Telstra, Optus, Vodafone, Hutchinson  Wireless operators  Various Wireless operators – iBurst, Unwired etc  WIMAX operators  Emerging WIMAX operators  mobile digital TV  Emerging mobile digital TV operators

23. Telematics Ecosystem/Cluster’ Other Providers in Australia ‘Telematics Ecosystem/Cluster’ Other Providers in Australia  National Telematics Cluster  National Telematics Cluster – over 150 electronics/ICT companies  Vibrant digital contentnew media  Vibrant digital content and new media industries  Intelematics  ‘Home Grown’ Integrators e.g. Intelematics www.intelematics.com  New opportunities  New opportunities for Location Service providers  ITS Australia, toll way operators and government road managers  ITS Australia, toll way operators and government road managers are working closely together in major capital cities

24. Vehicle R&D Plant Dealer/ Service Center NISSAN DB CRM VRM DSRC for ITS Data Broadcast Cellular Phone & Wireless LAN Services provided by Telematics  Telematics combines Computing and Communication technologies and conveys business and consumer services over networks Intranet Better way of customer care and marketing -Fleet Management - Second Hand Market Social Responsibility Main Office Remote Office Home PBX PSTN IP IP Centrex Mobile Worker & Consumer Mobile Existing Connected World Telematics Front-end Internet Source: Telstra (amended) IP-PBX Safety & Security PSAP

25. Services provided by Car Infotainment Vehicle Infotainment provides Connectivity to Multimedia and Network Vehicle Infotainment provides Connectivity to Multimedia and Network All the Consumer Electronics devices are transformed to “Digital” and connected as “Digital Home”, so is the Vehicle All the Consumer Electronics devices are transformed to “Digital” and connected as “Digital Home”, so is the Vehicle BROADBANDEntertainment, E-Business, Services MEDIA Pre-Recorded Content Personal Media Personal Media BROADCASTServices,Entertainment Any Content, Any Place, Any Device, Any Time Source: Intel Existing Digital Home Vehicle

26. Iconic “Demonstrator”

27. ‘ ATS Signature’ Project  ‘Turn by turn’  ‘Turn by turn’ directions to a required destination  traffic congestion  Real-time monitoring of traffic congestion  roadside camera  Real-time roadside camera images  car park locations  Nearby car park locations, availability and prices  Emergency features  Emergency features e.g. SOS assistance, vehicle alarm monitoring and crash detection  toll way balance  Ability to check toll way balance  High-value alerts  High-value alerts e.g. traffic alerts, car service reminders, fuel pricing and weather alerts  Home control systems

28. ‘ ATS Signature’ Project Connected companies through wireless! ‘ ATS Signature’ Project Connected companies through wireless!  Intelematics  20 companies include Holden (GMH), Sensis (Telstra), Intelematics, 3M, Australian Arrow & Clipsal   Project completed in just eight (8) weeks!  installed and operating in a GM vehicle  Now installed and operating in a GM vehicle with multi information services  Connecting the Home with the Car – a world first!

29. ‘AT Signature’ Vehicle – mark 2  Brand positioning: “AT Signature – Safe, Smart, Connected” “AT Signature – Safe, Smart, Connected”  Embedded system and aftermarket models considered  Other projects under consideration include fleet performance systems, traffic congestion probes, optimised emergency vehicle telematics

30. Automotive telematics - What are the opportunities for doing business with Australia?  Australia is an innovative economy  Partnerships are easier than in most other countries  Design/systems integration  Underlying R&D – develop new solutions for offshore transport & auto manufacturers & their suppliers  International development test-bed (similar to Sweden)  Product Realisation Centre potential  Australian Govt is now funding Global Opportunities projects!

31. Australian ICT industry competitive advantage “ Innovative engineering skills which can integrate and adapt technologies sourced locally/globally with field knowledge to QUICKLY meet niche market opportunities initially locally and then overseas” Angus M Robinson

32. The Big Australian – Industrialising Australia!  The proposed Consolidation will create Australia’s largest grouping of high technology companies (+1,000 companies)  Providing higher level of support to AEEMA’s industry development model  New ICT Australia ® division  National Telematics Cluster will be part of a large national industry group with state-based bases  Allowing enhanced access to allied auto industry groupings  Strengthening of international presence based on AEEMA’s established relationships

33. FURTHER INFORMATION AEEMA Ltd and ICT Australia ® www.aeema.asn.au And useful links http://www.fapm.com.au http://directory.fapm.com.au http://www.its-australia.com.au http://www.aaaa.com.au arobinson@aeema.asn.au + 61 2 6204 1301