Technology driven M&A in the automotive industry - From automobile to autonomous EY Study | October 2018

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Technology driven M&A in the automotive industry - From automobile to autonomous EY Study | October 2018
Technology driven
M&A in the automotive
industry
From automobile to autonomous

EY Study | October 2018
Technology driven M&A in the automotive industry - From automobile to autonomous EY Study | October 2018
Contents

1.   Key messages........................................................................................       3
2.   Context for this study......................................................................               4
3.   Deal development at a glance...................................................                            6
4.   Technology deals in automotive..............................................                               8
5.   OEMs and supplier compared..............................................                                  12
6.   International M&A..........................................................................               14
7.   Appendix...............................................................................................   16
     Methodology & Authors.............................................................................. 22
Technology driven M&A in the automotive industry - From automobile to autonomous EY Study | October 2018
1                                                                                                                                                         Key messages

                         1                                     2                                  3                                      4                                            5
  Technology                            Core                               Automotive                          Automotive                                   M&A
  M&A                                   technologies                       OEMs                                suppliers                                    in Germany
The rapid technological changes       Core technologies that drive       Automotive OEMs shift their          Automotive suppliers remain                 German companies show a
bring the automotive industry         tech-deals evolve around the       attention to revenue creation and    focused on product innovation               particular appetite for technologies
at the verge of a strategic crisis,   electrification of Powertrain,     use M&A to reinvent themselves       and move up the value chain to              for Mobility as a Service,
despite record sales. Companies       Autonomous Driving capabilities,   as Mobility as a Service providers   challenge the space typically               Connectivity and Autonomous
move to M&A to rapidly adapt their    and Connectivity. In particular,   with shared vehicle capabilities.    occupied by OEMs. The fight                 Driving capabilities, while
portfolios and proactively react      Software Applications play an                                           over the supremacy of core                  acquisitions for Powertrain
to the changing environment.          increasing role in M&A deal                                             technologies in Powertrain and              technologies decrease.
                                      activity. Hardware deals revolve                                        Autonomous Driving technologies
As a result, technology driven        around Power Electronics                                                intensifies.                                As a leader in the global
M&A plays an increasing role in       and sensors.                                                                                                        automotive industry, Germany
the automotive industry, and                                                                                                                              has more outbound M&A activity
increased by 60% since 2015.          Innovative processing and                                                                                           than inbound.
                                      manufacturing technologies
                                      such as 3D Printing play no role
                                      in automotive M&A deals.

                                                                                                              Technology driven M&A in the automotive industry From automobile to autonomous |   3
Technology driven M&A in the automotive industry - From automobile to autonomous EY Study | October 2018
2                                                                                                                                                           Context for this study

         As industries are converging, automotive firms turn to M&A to keep pace with
         technological change
The automotive industry at the verge of a revolution                                                                                                  Technological trends in the automotive industry

The automotive industry is undergoing unprecedented                           Despite record sales, the automotive industry is at the                 Digitalization is transforming entire businesses, from
changes on multiple fronts, from socio-political                              verge of a strategic crisis, with new technologies being                internal processes over product capabilities to unexploited
pressure for a low-carbon footprint, over changing                            introduced every year, and incumbent firms lose                         value streams. EY has identified three key areas impacted
customer demands from multi-purpose vehicles to                               ground in core competencies of the future. For the first                by technological advances in the automotive industry:
diverse mobility offerings, to radical product                                time, technological core competencies were not
innovations enabled by breakthroughs in basic                                 developed in-house, but brought in by new entrants                      1. Technologies related to processes
technologies previously not available.                                        that lead the way to the digitalization of core                            (‘Process technologies’):
                                                                              components. In this environment, M&A becomes a key                         • New technologies can drive efficiency in the processes
To succeed in this environment, players at every level                        vehicle to defend the market position in the future.                          of the company, such as manufacturing processes
of the value chain — from component suppliers to                                                                                                         • Key processing technologies in the automotive industry
commercial or light vehicle manufacturers to retailers                        This study looks at technological driven M&A activity in                      include Industry 4.0, 3D Printing, Smart Supply Chain
— have to review their product portfolio and adapt to                         the automotive industry from 2015 to 2017.                                    Management, and Clean Production
the changing needs in the automotive value chain.
                                                                                                                                                      2. Technologies impacting the final product
        Current situation in the business life cycle                                                                                                     (‘Product technologies’):
                1                    2                        3                                                  4                                       • Technologies that are applicable and planned for the final
          Introduction            Growth                 Maturity                                            Decline                                        product of the company, i.e. technologies that are applied
                                                                                                                                                            to the vehicles. Such technologies can revolve around
         Indicators         Indicators
                                                                        Status Quo2017
         • From idea to     • Growing market                                                                                                                hardware, but are increasingly driven by software
                                                                                   Strategic Crisis
           business           success
                                                                                                                 3                                       • Key product innovations include new Powertrain
         • Searching for    • Increasing sales
           product market   • Reducing costs                                                                                                                technologies, Connectivity, and Autonomous Driving
           fit              • Some profits
         • Low sales                             Indicators                     Indicators               Operational Crisis
         • High costs                            • Product offerings            • Misaligned strategy                                                 3. Technologies aimed at revenue improvements
                                                                                                                                  3
         • No profits                              fit demand                   • Introduction of new
                                                                                                                                                         (‘Revenue stream technologies’):
                                                 • Stable sales                   technologies
                                                 • Cost efficiency              • Loss of core                                                           • New technologies that are used to generate additional
                                                 • Increasing profits             competences in the
                                                                                                                                                            revenue, in particular by exploiting new sales channels
                                                                                  industry and entry    Indicators
                                                                                  of new competitors    • Decline in                                     • Revenue improving technologies include E-Commerce
                                                                                                          revenueand profits   Financial Crisis
                                                                                • Changing customer                                               3         for the sale of vehicles and parts, focused dealership
                                                                                  demands/              • Operating loss
                                                                                  introduction of new                                                       strategies for electronic vehicles, and new offerings
Sales

                                                                                  customer segments
                                                                                                                                                            for Mobility as a Service (MaaS)
         Time

4       | Technology driven M&A in the automotive industry From automobile to autonomous
Technology driven M&A in the automotive industry - From automobile to autonomous EY Study | October 2018
“
The battle for disruptive technologies is red hot.
Established automotive players are fighting for the
lead in key future technologies, worrying that new
entrants from the digital space will inject themselves
between today’s players and their customers.
Upcoming technology leaders will leverage their
capabilities to gain a footing in the industry. M&A is
mission critical for the incumbent players to conquer
and retain that space, protecting current revenues
and opening up new business models.

Dr. Marc Förstemann
EY Partner, GSA Transportation Transaction Advisory Leader

                                                                            ”
                                                             Technology driven M&A in the automotive industry From automobile to autonomous |   5
Technology driven M&A in the automotive industry - From automobile to autonomous EY Study | October 2018
3                                                                                                                                                                                            Deal development at a glance

                                Number of technology investments increased by 60% since 2015 —
                                deal values declined by 38% in the same period
     Evolution of Technology Automotive Investments                                                                                                Degree of Investment

                                                                                                                                                                                                                                    Degree of Investment    2015     2016   2017
                                  1,400                                                                   100%     93%                                                           100%
                                                                      ∑ 1,238                                                    91%
                                              ∑ 1,231   ∑ 1,212                                                                            89%
                                  1,200         82                      131                                                                                                                                                         Majority
                                                          104                                                                                                                                                                                                33       36    47
                                                                                                                                                                                                                                    Investment

                                                                                                                                                    Share of Investment Degree
                                                                                                          80%                                                                    80%
                                                                                                                                                                                                                       72%
    Number of Investments

                                                                                                                                                                                        69%
                                                                                   Share of Investments
                                  1,000

                                                                                                                                                                                                        59%
                                                                                                          60%                                                                    60%                                                Minority
                                   800                                                                                                                                                                                                                       15       25    18
                                                                                                                                                                                                                                    Investment
                                                                                                                                                                                                        41%
                                   600         1,149     1,108          1,107                             40%                                                                    40%
                                                                                                                                                                                         31%
                                                                                                                                                                                                                       28%          Undisclosed/Unknown
                                   400                                                                                                                                                                                                                       34       43    66
                                                                                                                                                                                                                                    Deal Value
                                                                                                          20%                                                                    20%
                                   200                                                                                                     11%
                                                                                                                   7%            9%
                                                                                                                                                                                                                                    Total                    82      104    131
                                     0                                                                     0%                                                                     0%
                                               2015      2016           2017                                       2015         2016       2017                                         2015           2016           2017
                                                              Non-tech investments                           Tech investments                                                              Majority Investment (>50% of Shares)     Majority Investment (
3                                                                                                                                    Deal development at a glance

     In 2017, technology driven deals are centered around powertrain, autonomous
     driving and connectivity
                                                                                                     Type of Technology
                                                                  Powertrain
 36 (28%)                                   21 (16%)                                                                  140                                                            ∑ 131
                                                                  Autonomous Driving
                                                                                                                                                                                    16 (12%)
                                                                  Connectivity                                        120
                                                                                                                                                           ∑ 104

                                                                  Others
                                                                                                                      100                                   14

                                                                                                    Number of deals
                                                                                                                                ∑ 82

             Technology
                                                                    Mobility as a Service/9 (7%)                      80         13
                                                                    Industry 4.0/8 (6%)                                                                                                107

          driven M&A deals                                                                                                                                                            (82%)
                                                                                                                      60

                                                                    Sales/4 (3%)                                                                            81
                                                       32 (24%)
               in 2017                                                                                                           67
                                                                                                                      40
                                                                    Product Architecture/4 (3%)

                                                                    Vehicles/3 (2%)                                   20

                                                                    After Sales/3 (2%)                                                  2                    9                       8 (6%)
                                                                                                                       0
                                                                                                                                2015                       2016                       2017
                                                                    Flying Vehicles/1 (1%)
                                                                                                                                      Process      Product         Revenue Stream

          42 (32%)

∑ 131 Technology driven M&A deals in 2017                                                          Commentary

                                                                                                   • In 2017, key technologies targeted via M&A included:
                                                                                                     • Powertrain, with 42 deals (32%)
                                                                                                     • Autonomous Driving, with 36 deals (28%)
                                                                                                     • Connectivity, with 21 deals (16%)
                                                                                                     • Other, with 32 deals, including Mobility as a Service technologies for revenue improvement
                                                                                                        and Industry 4.0 to increase manufacturing process efficiency
                                                                                                   • Product-related technologies are again in the focus of automotive firms:
                                                                                                     With 82% of all deals being centered around technologies to optimize the automobile as the
                                                                                                     core ‘product’, process-focused technologies as well as technologies to explore and develop
                                                                                                     additional revenue streams (e.g. car sharing concepts and applications) account for the
                                                                                                     minority of deals with 6% and 12% respectively

                                                                                                                            Technology driven M&A in the automotive industry From automobile to autonomous |   7
4                                                                                                                                               Technology deals in automotive

      The number of deals made for product technologies is steadily increasing —
      driven by autonomous driving, powertrain and connectivity
    Number of deals in Product technologies                                              1. Powertrain
                                                                                              ∑ 27       ∑ 38       ∑ 42
             ∑ 67                  ∑ 81                  ∑ 107
      120
                                                                                         50                                                               • The steep increase of deals aimed at acquiring
                                                                                         40                                3                                technologies for electric vehicles in 2016 was followed
                                                                                                                2    5          Hybrid technologies
                                                                                                          5                3
                                                                 3                       30                     2               Fuel economy/emissions      by another strong year with 31 deals in 2017
                                                                 4
                                                                                               8                                                          • Alternative technologies for zero emission powertrains,
                                            2%

      100
                                                                                                                                Fuel cell
                                          +3

                                                                                         20          1
                                                                                                         29         31
                                                                                                                                Electric vehicles           like fuel cell technology, is overall small but shows steady
                                                                                         10    18
                                                                                                                                                            growth, as companies keep options open
      80                     1%     5                     42
                           +2                                                             0
                                                                                              2015       2016       2017
               5
                       2
      60
                                   38                            1

              27                                                                         2. Connectivity
                                                          21
      40                                                                                      ∑ 21       ∑ 14       ∑ 21
                       1            14
                                                                                                                                Telecommunications        • After a weak year in 2016, deal activity for technologies
                                                                                         25                                    	Software (apps, OS and     in relation to Connectivity of vehicles rebounds in 2017
              21                          4
       20                                                 36                             20
                                                                                               5                     3          cyber sec.)               • In particular deals for software applications have
                       1           20                                                                                           Smart city                  increased from just 2 in 2016 to 7 in 2018
                                                                                         15                          7
              10                                                                               6
                                                                                                          6                     Entertainment             • For the first time, technologies connecting vehicles to
       0                                                                                 10                          3
             2015                  2016                  2017                                  6                2               Electrification             the Smart City play a role, with a total of 3 deals
                                                                                          5
                                                                                                                     5
                                                                                               3          5             2       Control systems
            Vehicles                      Connectivity
                                                                                                  1          1          1
            Product Architecture          Big Data
                                                                                          0
                                                                                              2015       2016       2017        Augmented reality

            Powertrain                    Autonomous Driving
            Flying Vehicles
                                                                                         3. Autonomous Driving
    • Most deals are made for Powertrain related technologies,                                ∑ 10       ∑ 20       ∑ 36
      with Autonomous Driving in the heals, and Connectivity                             40                                     Steering systems          • Autonomous Driving has sparked the interest of investors
      catching up to 2015 numbers after a drop in 2016                                   32                                    	Sensors and cameras        in 2017, with a staggering total of 36 deals made for
                                                                                                                    12
                                                                                         24
                                                                                                                                Semiconductors              technologies related to Autonomous Driving, up from
                                                                                                                     6          Navigation                  only 10 deals in 2015 and 20 in 2016
                                                                                         16          1    8
                                                                                                                     6
                                                                                                     1          2               Lights                    • Sensors and cameras lead the way in M&A activity for
                                                                                          8          1          3    5
                                                                                                     2    4                2    Control systems             Autonomous Driving technology, with 12 deals in 2017
                                                                                               5             3       4
                                                                                          0
                                                                                              2015       2016       2017        Artificial intelligence

8     | Technology driven M&A in the automotive industry From automobile to autonomous
4                                                                                                                  Technology deals in automotive

  Investments targeting revenue improvements are focused on new retail channels
  like Mobility as a Service
Number of deals related to Revenue                           1. Mobility as a Service

   18
                                                             12
                                                                           ∑ 10                                             • The technological portfolio for moving to mobility service
                                                                                      ∑9        Vehicles rental
                                                             9              2                                                 provider is diverse, with acquisitions made to advance
                                              ∑ 16                                     2
   16                                                                                      1    Taxi service provider         rental services, taxi services, shared vehicle services and
                                          %
                                       +14                   6
                                                                  ∑4                            Shared vehicles
                                ∑ 14                                   1
                                                                            7                                                 customer apps
   14                 +8%                       4            3         1               6        Apps
         ∑ 13
                                                                   2
                                                                                                                            • Overall, deals still concentrated on shared vehicle
                                                                               1
                                 3                           0                                                                providers in 2017, with a minor decrease from 7 to 6 deals
   12                                                             2015     2016       2017
           4                                                                                                                • Somewhat surprisingly, stand-alone deals made for apps
   10                                                                                                                         aimed at mobility services do not play a significant role in
                                                                                                                              the move of the automotive industry from manufacturing
   8
                                                9                                                                             to service providers
           4
   6                             10

   4                                                         2. Sales
           5
   2
                                                3            12                                                             • Investments were made to advance technologies for
                                 1                           9
                                                                                                Used vehicles                 classic distribution channels via retailers, to open new
   0
         2015                   2016          2017                                             	
                                                                                                Focused on electric           channels in E-Commerce, and in particular to move into
                                                             6
                                                                  ∑4                  ∑4        vehicles
        After Sales                                                    1   ∑3                                                 providing Mobility as a Service
                                                             3         1          1    3        E-commerce
        Mobility as a Service                                      2        2
                                                                                                                            • In 2017, the focus on E-Commerce channels shifted to
                                                                                          1
        Sales
                                                             0
                                                                  2015     2016       2017                                    the sale of used vehicles, with a total of 3 deals

• Investments made into technologies to improve sales        3. After Sales
  are steadily increasing
• While 2015 saw an equal distribution between               12                                                             • For After Sales, deals to acquire technologies focus
  technologies aimed at vehicle sales, parts sales and the   9                                  Parts ordering                on remote diagnostics for users and technicians.
  new channel of mobility services, the focus shifted to     6    ∑5                            E-commerce                    This technology can help in the development of
                                                                       1              ∑3
  deals aimed at providing Mobility as a Service as a new              1                   1    Diagnostics                   autonomous vehicles, for which remote diagnostics
                                                             3
  channel for sales                                                        ∑1                                                 plays a key role for efficient maintenance
                                                                   3                   2
                                                                               1
                                                             0
                                                                  2015     2016       2017

                                                                                                              Technology driven M&A in the automotive industry From automobile to autonomous |   9
4                                                                                                               Technology deals in automotive

     Industry 4.0 dominates the technology driven deals in advancement of
     manufacturing and processing techniques
 Number of deals in Processing Technologies                                              Main technologies within the Industry 4.0 deals

     10                                                                                     10

                                          ∑9
                                                       −33%
                                           1                           ∑8                                                                               ∑8
      8                                                                                      8
                                           1                                                                                                3%           1
                                                                                                                                          +3

                                                                                                                             ∑6                                       Robotics
                              %

      6                                                                                      6
                            50

                                                                                                                              1                                       Electronics
                          +3

                                                                                                                                                         4            Software
                                                                                                                                                                      IoIT

                                                                                                                %
                                                                                                               00
      4                                    6                            8                    4

                                                                                                             +2
                                                                                                                              3                                       Big Data

            ∑2                                                                                     ∑2
      2                                                                                      2                                                           2
                                                                                                    1                         1
             2
                                           1                                                        1                         1                          1
      0                                                                                      0
            2015                         2016                         2017                        2015                       2016                      2017

           Clean production
           Smart Supply Chain
           Industry 4.0
           3D Printing
                                                                                        Commentary
 • Overall, investments made to advance processing technologies are still
   high with 8 deals, down from 9 in 2016 but up from only 2 in 2015                    • The technologies driving the Industry 4.0 related deals are diverse, from Electronics
 • The deals are driven by an interest in Industry 4.0 technologies, which                hardware, over Software, to Internet of Industrial Things (IoIT), Robotics and Big Data
   shows a steady increase since 2015 and is up two deals since 2016                    • In 2017, Electronics Hardware played a larger role for Industry 4.0 related deals
 • While in 2016 three deals aimed at reducing emissions, smart supply chain              for the first time
   management and 3D Printing, all deals in 2017 focused on Industry 4.0                • Big Data storage, handling and mining still plays only a minor role, with only 1 deal in
 • New manufacturing techniques such as 3D Printing play no role in the                   2016 and 0 deals made in 2015 and 2017
   technology driven M&A deals in 2017                                                  • Overall, the number of investments made for Industry 4.0 software, in particular
                                                                                          smart control software, decreased from 3 deals to 2 from 2016 to 2017

10   | Technology driven M&A in the automotive industry From automobile to autonomous
“
With rapid technological changes in the market,
firms need to review their portfolios and rethink
their business models. While OEMs reinvent
themselves as service providers, suppliers attack
to fight for a leading position as providers of
core future technologies.

Constantin M. Gall
EY Partner, GSA Automotive and Transportation Transaction Advisory Leader

                                                                            ”   Technology driven M&A in the automotive industry From automobile to autonomous | 11
5                                                                                                                                                                OEMs and supplier compared

                         Automotive suppliers remain focused on product innovation, while OEMs
                         increasingly shift attention to technologies for revenue creation
 Type of Acquirer

                                100%
                                                                                                                                            • In 2017, automotive suppliers closed 110 technology deals — 5x more investments than
                                                                                                                                              made by OEMs (21 deals)
                                                                                                 +31%
                                                                                                                 110                        • After a strong year of 2016 for OEMs, suppliers came back and increased their share of
                                    80%                  +14%
                                                                                                                                              technology driven M&A activities from 81% to 84% in 2017
 Number of Investments

                                                                                84
                                           74                                                                                               • Despite the decrease in percentage, OEMs’ deal level remained stable and actually
                                                                                81%                              84%
                                    60%
                                          90%                                                                                    Supplier     increased in absolute terms, with 5% growth in number of deals
                                                                                                                                 OEM
                                    40%                                                          +5%
                                                        +150%
                                                                                20                                21
                                    20%
                                           8
                                                                                19%                              16%
                                          10%
                                      0
                                          2015                                  2016                             2017

 Technology Investments per Type of Acquirer
                                                                                                                                ∑           • The majority of deals done by OEMs still reverts around product related technologies,
                                                                   6%                                                            7
                                            Revenue Stream         7%                                                            6            with 57% in 2017
                                                                         14%                                                    10          • However, the focus of technology M&A activities steadily shifts towards revenue stream:
                         Supplier

                                                                                                                   86%          95
                                                   Product                                                       82%            69            Nearly every second deal in 2017 (43%) is linked to future revenue streams (e.g. ‘Mobility as
                                                                                                                  83%           62            a Service’ or sales technologies). At the same time, product-related investments are
                                                                       8%                                                        8
                                                   Process              11%                                                      9            gradually decreasing from 62% in 2015 to 57% in 2017
                                                                  3%                                                             2          • Automotive suppliers have an even stronger focus on investments to product-related
                                                                                           43%                                   9
                                            Revenue Stream                                40%                                    8            technologies, as deals account for 83%, 82% and 86% in years 2015–17
                                                                                         38%                                     3          • In contrast to OEMs, suppliers invest in process-related technologies: In 2017, 8% of all deals
                         OEM

                                                                                                   57%                          12
                                                   Product                                          60%                         12            were related to process technologies. In addition, suppliers constantly invest less in revenue
                                                                                                     62%                         5            stream technologies with a declining share of 14% to 6% of all investments in 2015–17
                                                             0%           20%           40%       60%      80%           100%

                                                                         2017          2016      2015

12                       | Technology driven M&A in the automotive industry From automobile to autonomous
5                                                                                                                                        OEMs and supplier compared

    OEMs invest in mobility as a service and sales technologies whereas suppliers
    lead in investments in powertrain and autonomous driving
 Invested Technologies per Acquirer (in % of total OEM/supplier deals, 2017)

      50%   1                 2                                                                                                                  3

      40%
                                        35%

                                                         29%                                                                                         29%
      30%

                                                   19%               19%
      20%
                                  14%                                      15%                                                                                          14%

      10%            7%
                                                                                                    4%                           5%
                                                                                                                   3%                                        3%                                    3%
                0%                                                                            0%             0%                         0%                                    1%             0%
        0
             Industry 4.0         Powertrain      Autonomous        Connectivity               Product        Vehicle          Flying Vehicles       Mobility as a        Sales             After Sales
                                                    Driving                                  Architecture                                              Service

                Process                                                            Product                                                                           Revenue Stream
                                                                                                            Supplier     OEM

Commentary
                                                                                                                         EY Point of View
• In 2017 technology driven M&A activities, a strong shift in investment and development
  focus by both OEMs and suppliers became apparent:                                                                      • OEMs center their technology driven M&A efforts on exploring new
   1 OEMs do not invest in Industry 4.0 technologies, but leave the field to automotive                                    revenue streams by investing in Mobility as a Service and sales-related
      suppliers with investments accounting for 7% of total deals                                                          technologies instead of focusing on product development, which is at
   2 In addition, suppliers attack OEMs in their core fields of product development and                                    the core of their traditional DNA
      innovation: Investments in Powertrain and Autonomous Driving technologies represent                                • Suppliers react quickly and shift their attention to Powertrain and
      35% and 29% of all deals                                                                                             Autonomous Driving technologies, filling the investment
   3 At the same time, OEMs focus to unlock new revenue streams with 29% and 14% of all                                    gap and thereby attacking OEMs in
      investments made in Mobility as a Service and sales-related technologies respectively.                               their core competencies
      However, no M&A activities by OEMs in relation to after-sales technologies were recorded
• Besides, one notable technology investment in flying vehicles by OEMs was made
  in 2017 (5%)

                                                                                                                           Technology driven M&A in the automotive industry From automobile to autonomous | 13
6                                                                                                                                                                                                              International M&A

     In Europe 2017, the most active countries France, United Kingdom and Germany
     are net acquirers — South Korea, Israel and USA are net sellers

Top 10 most overall M&A in 2017
(# of deals)
                                                                                                                               Sold ∑ 5        Bought ∑ 8          Sold ∑ 6       Bought ∑ 10       Sold ∑ 11        Bought ∑ 16      Sold ∑ 31       Bought ∑ 35
                                                                                                                             Product archit.   Auto Driving       Connectivity       Powertrain      Powertrain          MaaS         Powertrain       Powertrain
1      China................................................................... 694                                           2 deals (40%)    3 deals (38%)      2 deals (33%)     3 deals (30%)   3 deals (27%)    6 deals (38%)   16 deals (52%)   20 deals (57%)
2      United States................................................. 690                                                     Powertrain       Connectivity           Sales         Connectivity        MaaS         Connectivity    Connectivity     Connectivity
                                                                                                                              1 deal (20%)     2 deals (25%)       1 deal (17%)     3 deals (30%)   2 deals (18%)    3 deals (19%)   6 deals (19%)    6 deals (17%)
3      Japan................................................................. 254
                                                                                                                              After Sales       Powertrain         Powertrain       Auto Driving    Connectivity     Auto Driving    Auto Driving     Auto Driving
4      South Korea................................................... 220                                                     1 deal (20%)      1 deal (13%)       1 deal (17%)     2 deals (20%)   2 deals (18%)    3 deals (19%)   4 deals (13%)    4 deals (11%)
5      France................................................................ 202                                             Auto Driving     Product archit.     Auto Driving        Sales            Sales         Powertrain        Vehicle          Vehicle
                                                                                                                              1 deal (20%)      1 deal (13%)       1 deal (17%)     1 deal (10%)    2 deals (18%)    2 deals (13%)    2 deals (6%)     2 deals (6%)
6      Germany........................................................... 193
                                                                                                                                                   MaaS               MaaS          Industry 4.0    Auto Driving         Sales        Industry 4.0     Industry 4.0
7      Russian Fed.................................................... 138                                                                      1 deal (13%)       1 deal (17%)     1 deal (10%)     1 deal (9%)      1 deal (6%)     2 deals (6%)      1 deal (3%)
8      United Kingdom........................................... 133                                                            Buyer in 62% of deals                Buyer in 63% of deals            Buyer in 59% of deals             Buyer in 53% of deals
9      Unknown........................................................... 129
10     India.................................................................... 102
                                                                                            Sold ∑ 29       Bought ∑ 23

Top 10 technology investments in                                                            Auto Driving
                                                                                            9 deals (31%)
                                                                                                             Auto Driving
                                                                                                            11 deals (48%)
2017 (# of deals)                                                                            Powertrain      Powertrain
                                                                                            8 deals (28%)   6 deals (26%)                                                    Sold ∑ 4                Sold ∑ 9        Bought ∑ 8        Sold ∑ 5       Bought ∑ 7
                                                                                            Connectivity     Connectivity                                                  Auto Driving             Auto Driving     Auto Driving    Auto Driving     Auto Driving
1      China...................................................................... 35       4 deals (14%)    2 deals (9%)                                                  3 deals (75%)            5 deals (56%)    5 deals (63%)   2 deals (40%)    4 deals (57%)
2      United States.................................................... 23                     MaaS         After Sales                                               Seller in all deals           Powertrain       Powertrain     Connectivity     Connectivity
                                                                                            3 deals (10%)    2 deals (9%)                                                                           3 deals (33%)    2 deals (25%)   2 deals (40%)    2 deals (29%)
3      Germany.............................................................. 16
                                                                                            After Sales        Vehicle                                                                              Connectivity      Connectivity    Powertrain       Powertrain
4      France................................................................... 10         2 deals (7%)     1 deal (4%)                                                                            1 deal (11%)      1 deal (13%)    1 deal (27%)     1 deal (14%)
5–6    South Korea......................................................... 8                 Seller in 56% of deals                                                                                  Buyer in 53% of deals             Buyer in 58% of deals
5–6    United Kingdom................................................. 8
7      Japan....................................................................... 7
8      Sweden.................................................................... 3                                                                              Commentary
9–10   Hong Kong............................................................. 2
9–10   South Africa......................................................... 2                                                                                   • 5 of the top 7 most active nations were net buyers in 2017
9–10   Switzerland........................................................... 2                                                                                  • German companies sold primarily Powertrain businesses and invested in
9–10   Canada.................................................................... 2                                                                                service-oriented and software-based products and solutions
9–10   Unknown................................................................. 2                                                                                • As a country, Israel was the most significant net seller, with a distinct
9–10   Italy........................................................................... 2                                                                          emphasis on companies related to Autonomous Driving
9–10   Luxembourg......................................................... 2

14   | Technology driven M&A in the automotive industry From automobile to autonomous
6                                                                                                                                                    International M&A

    In international M&A, Germany is a net acquirer with a strong focus on mobility
    as a service providers
                                                                                                                                   # deals         Target technology
                                                                                                                                          1              Powertrain
Outbound M&A from Germany to target country in 2017

                                                                                 # deals      Target technology
                                                                                     1           Autonomous Driving

                                                                  # deals   Target technology
                                                                    1       Autonomous Driving

                                                                                                                         # deals   Target technology
                                                                                                                            1          Mobility as a Service

            # deals       Target technology
                2          Mobility as a Service

                                                                  # deals   Target technology
                                                                    1          Connectivity

                                                                                                                                # deals       Target technology
                                                                                                                                   1           Mobility as a Service

                                                                                                                                                                       # deals   Target technology
                                                                                                                                                                         1           Powertrain

                                                                                                   Commentary
            #          Bought ∑ 9            #      Sold ∑ 4
                                                                                                   • In 2017, Germany was a net acquirer with a total of 9 outbound international
            4       Mobility as a Service    2     Powertrain
                                                                                                     deals vis-à-vis 4 inbound deals
            2          Connectivity          1     Connectivity
            2       Autonomous Driving       1     Industry 4.0
                                                                                                   • No particular focus region has been identified, as the target countries
            1           Powertrain                                                                   show a wide spread
                                                                                                   • The majority of deals target Mobility as a Service technologies, followed
                                                                                                     by Connectivity and Autonomous Driving

                                                                                                           Technology driven M&A in the automotive industry From automobile to autonomous | 15
Appendix

16   | Technology driven M&A in the automotive industry From automobile to autonomous
7                                                                                                                    Appendix/Automotive M&A in 2017

    A search for Autonomous Driving technology is driving M&A activities in 2017,
    as deals for Connectivity technologies rebounds
 Number of deals related to Autonomous Driving technologies                                     Number of deals related to Connectivity technologies

                               50                                                                                                   25

                                                                                                                                                 ∑ 21                                      ∑ 21
                                                                                                     Telecommunications
     Steering systems          40                                                                                                   20                                                    3 (14%)
                                                                             ∑ 36                                                                 5
                                                                                                    	Software

                                                                                                                                                            −3
                                                                                      1 (3%)

                                                                                                                                                                                 %
     Sensors and cameras

                                                                                                                                                              3%

                                                                                                                                                                                 0
                                                                                                                                                                              +5
                                                                                                     (Apps, OS, cyber sec.)
     Semiconductors            30                                                                                                   15                                ∑ 14                7 (33%)

                                                                    %
                                                                           12 (33%)

                                                                     0
                                                                                                     Smart city

                                                                  +8
                                                                                                                                                  6
     Navigation
                                                                                                     Entertainment
                                                           ∑ 20                                                                                                        6
     Lights                    20                                           6 (17%)                                                 10                                                    3 (14%)
                                                                                                     Electrification
                                                            8
                                                    %

     Control systems
                                                  00

                                                                            6 (17%)                  Control systems                              6                    2
                                                +1

                                         ∑ 10               2                                                                                                                             5 (24%)
     Artificial intelligence   10
                                                1                                                                                   5
                                                1           3               5 (14%)                  Augemented reality
                                                1                                                                                                                      5
                                          2
                                                            4               2 (6%)                                                                3
                                                                                                                                                                                          2 (10%)
                                          5                                 4 (11%)
                                                            3                                                                                     1                    1                  1 (5%)
                                0                                                                                                   0
                                        2015              2016               2017                                                                2015                 2016                2017

Commentary                                                                                     Commentary

• Several technologies drove the increase in M&A activities for Autonomous Driving:            • After a weak year in 2016, deal activity for technologies in relation to Connectivity of Vehicles
  • Sensors and cameras lead the way in M&A activity for Autonomous Driving technology,          rebounds in 2017
    with 12 deals in 2017                                                                      • In particular deals for software applications have increased from just 2 in 2016 to 7 in 2017
  • A new interest in smart lighting systems arose in 2017, as lighting systems develop        • New technologies that appeared for the first time in 2017 are:
    to become a key technology in support of sensors                                             • Technologies connecting vehicles to the smart city, with a total of 3 deals
  • The strongest increase in deals involved semiconductors, from 2 deals recorded               • Augmented reality technologies, with 1 deal in 2017
    in 2016 to 6 deals in 2017                                                                 • Entertainment systems, which were robust through the year 2016, appear stable for 2017
  • Navigation systems increased from 3 to 6 deals                                             • General telecommunications technologies decreased from 6 deals in 2016 to just 3 in 2017
  • Deals for Artificial Intelligence (A.I.) technology remains stable and robust,
    with 4 deals in 2017

                                                                                                                          Technology driven M&A in the automotive industry From automobile to autonomous | 17
7                                                                                                      Appendix/Automotive M&A in 2017

     Deals aimed at acquiring technologies for electric vehicles surge, as fuel economy
     and efficiency of contemporary engines fade out
 Number of deals related to Powertrain technologies                                      Number of deals for key Powertrain technologies

                                   50                                                    50

                                                                           ∑ 42
                                                                    1%       3
                                   40                      ∑ 38   +1                     40

                                                            2                                                                                                 Transmissions
                                                                             5
                                                   1%

                                                            5                                                                                                 Power electronics
                                                                             3                                                          ∑ 31
                                                 +4

       Hybrid technologies
                                                                                                                       ∑ 29    +7%
                                   30                       2                            30                                                                   Electrification
                                          ∑ 27
       Fuel economy/emissions
                                                                                                                        8                12                   Cooling

                                                                                                              1%
                                                                                                            +6
       Fuel cell                            8
                                                                                                                                                              Control systems
                                   20                                                    20          ∑ 18               4
       Electric Vehicles                         1                                                          1                             3
                                                                            31                                          2                      1              Battery charging
                                                            29                                        6                                        1
                                                                                                                        5                 2
                                                                                                                                                              Battery
                                    10                                                   10
                                           18                                                         5
                                                                                                                                         12
                                                                                                                       10
                                                                                                      5
                                    0                                                     0
                                          2015             2016            2017                      2015             2016              2017

Commentary                                                                              Commentary

• The steep increase of deals aimed at acquiring technologies for Electric              • Within the Electronic Vehicle technology sector, two core technologies play a particular role:
  Vehicles in 2016 was followed by another strong year with 31 deals in 2017              • Battery technologies are still highly sought after, with 12 deals in 2017
• Alternative technologies for zero emission Powertrains, like Fuel Cell                  • Power electronics, including Electronic Engines, caught up with Battery technology with
  technology, is overall small but shows steady growth, as companies keep                    equally 12 deals in 2017
  options open                                                                          • Interestingly, acquisitions for Battery Charging infrastructure decreased from 5 in 2016 to
• Deals aimed at Hybrid technologies are still increasing from 2 in 2016                  only 2 deals in 2017, despite the move from Hybrid to Electric Vehicles
  to 3 in 2017, despite the strong deal-flow associated with Electric Vehicles
  technologies

18   | Technology driven M&A in the automotive industry From automobile to autonomous
7                                                                                                                                                                                                                                                                                                                                                                                                           Appendix/OEMs and suppliers compared

      Automotive suppliers dominate acquisitions of key technologies for powertrain
      and autonomous driving and lead in industry 4.0
 Invested Technologies — Details (Number of deals, 2017)
      ∑ 31
 30

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Automotive Supplier

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         OEM
 20

      28
                                                                                                                                                                               ∑ 12

 10
                                                                                                                                                                                                                                                                                                     ∑7
                                                                                                                                             ∑6               ∑6                                                                                                                                                                                               ∑6
                                      ∑5                                                                                            ∑5                                         12                                                                                   ∑5
                                                                                     ∑4                                                                                                                                                                                                                                                                        2                                                             ∑4
                          ∑3                                   ∑3                                                                                                 4                                                                                                                     ∑3                      5                         ∑3                                                                                                                                                    ∑3                                                                                                                           ∑3
                                                                                                                  ∑2                            5                                                                                                 ∑2                    4                                                                                                                                     ∑2                                                   ∑2                                                                                                                                                                             ∑2
                                             5                                              3                                        5                                                               ∑1                     ∑1                                                          2                                                                                        ∑1                                      1      4          ∑1         ∑1                      ∑1                                   1 ∑1                 ∑1                           ∑1                ∑1                                                                       ∑1                    ∑1
           3                3                                        3                                                                                                                                                                                                                                                                         3                   4                                                                                                                                                                                                                                                               3
                                                                                                              1       2                                   1       2                                                     1                     1       2                             1                           2                                                                                         1              1                        1            1     2                      1          2                            1                            1                 1                                    1                            2                           1             1
  0
      Electric vehicles

                          Fuel cell

                                      Fuel economy/emissions

                                                               Hybrid technologies

                                                                                                                  Control systems

                                                                                                                                    Lights

                                                                                                                                             Navigation

                                                                                                                                                                               Sensors and cameras
                                                                                     Artifical intelligence

                                                                                                                                                                                                     Steering systems

                                                                                                                                                                                                                            Control systems

                                                                                                                                                                                                                                                                    Entertainment

                                                                                                                                                                                                                                                                                                     Software (apps, OS and cyber sec.)

                                                                                                                                                                                                                                                                                                                                                               Shared vehicles

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Parts ordering
                                                                                                                                                                                                                                                                                                                                                                                 Taxi services provider

                                                                                                                                                                                                                                                                                                                                                                                                              Vehicles

                                                                                                                                                                                                                                                                                                                                                                                                                                           IoIT

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Other
                                                                                                                                                              Semiconductors

                                                                                                                                                                                                                                                  Electrification

                                                                                                                                                                                                                                                                                        Smart city

                                                                                                                                                                                                                                                                                                                                          Telecommunications

                                                                                                                                                                                                                                                                                                                                                                                                                             Electronics

                                                                                                                                                                                                                                                                                                                                                                                                                                                      Robots

                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Software

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Used vehicles

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Fuel economy/emissions

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Integration of body production
                                                                                                                                                                                                                                                                                                                                                                                                                                                                              E-commerce

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Fuel economy

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Integration

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Electric vehicles

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Diagnostics
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Flying
                             Powertrain                                                                                               Autonomous Driving                                                                                                             Connectivity                                                                                     Mobility as a Service                                                Industry 4.0                                    Sales                                    Product Architecture                                                                    Vehicles                  After Sales                    Vehicles

Commentary

• Investments in Powertrain technologies show a reverse trend: While OEMs have historically                                                                                                                                                                                                                                                                    • With six out of a total of nine deals centered around Mobility as a Service technologies,
  been strong in Powertrain development and production, Automotive Suppliers push ahead                                                                                                                                                                                                                                                                          OEMs aim to explore new secures of revenue to complement their traditional business:
  with 28 (90%) technology investments in 2017                                                                                                                                                                                                                                                                                                                   Investments in technologies enabling Shared Vehicles (4 investments, 66%), Taxi Service
• In the race to secure technologies to enable Autonomous Driving, suppliers dominate                                                                                                                                                                                                                                                                            Providers (1 investment, 100%) or Vehicle Rental (1 investment, 50%) clearly indicate a
  across all technologies, most notably in Sensors and Cameras (12 investments, 100%) and                                                                                                                                                                                                                                                                        changing focus of OEMs moving from product towards service
  Control Systems (2 investments, 100%)
• In addition, suppliers strongly lead in the area of Industry 4.0 (8 investments, 100%) and
  automotive After Sales (3 investments, 100%) in attempts to secure additional revenue streams

                                                                                                                                                                                                                                                                                                                                                                                                                                           Technology driven M&A in the automotive industry From automobile to autonomous | 19
7                                                                                                                                                    Appendix/International M&A

      European companies lead the way in acquisitions in 2017, followed by Asian
      companies. US companies lagging behind
 Most overall M&A from OEMs                                    Most technology investments from OEMs               Most overall M&A from suppliers                              Most technology investments from
 in 2017                                                       in 2017                                             in 2017                                                      suppliers in 2017

Rank 2017   Company                      # Deals in 2017       Rank 2017   Company               # Deals in 2017   Rank 2017   Company                    # Deals in 2017       Rank 2017   Company              # Deals in 2017

      1     Daimler                            8                    1      Daimler                     6              1        AMA Group                       11                           Aptiv
                                                                                                                                                                                     1                                 5
                                                                                                                                                                                            (formerly Delphi)
      2     Renault                            7                    2      Volkswagen Group            3              2        Wuxi Coml Mansion                8
                                                                                                                                                                                     2      Continental                4
      3     Volkswagen Group                   5                    3      Jaguar Landrover            2              3        Sumitomo                         7
                                                                                                                                                                                     3      Denso                      3
      4     Isuzu Motors                       4                    4      Toyota                      2              4        Genuine Parts Co                 7
                                                                                                                                                                                            Dongxu Optoel.
      5     Hyundai                            3                    5      Geely (incl. Volvo)         2              5        Michelin                         6                    4                                 2
                                                                                                                                                                                            Tech Co
      6     Toyota                             3                    6      BorgWarner                  1              6        Continental                      6                    5      Stoneridge Inc.            2
      7     Great Wall                         3                    7      Nissan                      1                       Apollo Tourism &                                             Tianjin Motor Dies
                                                                                                                      7                                         6                    6                                 2
                                                                                                                               Leisure                                                      Co Ltd
      8     Peugeot                            3                    8      Renault                     1
                                                                                                                               Aptiv (formerly Delphi),                              7      Lear                       1
            Honda, Sanyang, Geely,                                  9      General Motors              1                       Denso, USC, UralATI,
     9–10   Jaguar, Landrover,                 2                                                                    8–10       Zhejiang VIE Science &           5                    8      Michelin                   1
            Nissan, General Motors                                  10     Peugeot                     1
                                                                                                                               Tech, Micheldever Tyre,
                                                                                                                               Services                                              9      Valeo SA                   1
                                                                                                                                                                                     10     Webasto                    1

 Top 5 largest overall transactions in 2017                                                                        Top 5 largest technology transactions in 2017

Rank 2017   Acquirer                                       Target                                 Value ($mil)     Rank 2017   Acquirer                                     Target                                Value ($mil)

      1     LKQ Corp                                       Stahlgruber Gmbh                          2,089            1        Dongxu Optoelectronic Tech Co                Shanghai Sunlong Bus Co Ltd                 490
      2     Genuine Parts Co                               Alliance Automotive Group SAS             2,000            2        Delphi Automotive PLC                        nuTonomy Inc                                450
      3     Key Safety Systems Inc                         Takata Corp-Business                      1,573            3        Shenzhen Fenda Tech Co Ltd                   Shenzhen Furtunta Tech Co Ltd               419
      4     Peugeot SA                                     Adam Opel AG                              1,210            4        Porsche Zweite Beteiligung                   PVT AG                                      338
      5     Pon Holdings BV                                Accell Group NV                              950           5        Aotecar New Energy Tech Co Ltd               Jiangsu Highstar Battery                    333

20    | Technology driven M&A in the automotive industry From automobile to autonomous
7                                                                                                                                   Appendix/International M&A

        The majority of targets for German deals is domestic, with a focus on mobility
        as a service technologies
 Major target countries for German acquisitions               Major investors into Germany                                            Commentary
Target country                 2015    2016          2017     Investor country                      2015    2016          2017
                                                                                                                                      • Germany is a net buyer, acquiring more foreign companies
Germany                         8        6            7       Germany                                8        6             7
                                                                                                                                      • The leading target country for German investors is United
USA                             2        2            2       France                                 —        1             2
                                                                                                                                        States, only overtaken by the sum of European countries
France                          1        1            1       USA                                    1        2             —
Netherlands                     2        —            1       China                                  1        —             1
                                                                                                                                      • The leading investor in Germany for 2017 is France, while US
UK                              —        1            1       Switzerland                            1        —             —           companies did not acquire any German targets since 2016
Israel                          —        —            1       South Africa                           —        —             1         • For the first time since 2015, a Chinese company acquired a
Denmark                         1        —            —       Total                                 11        9            11           German automotive tech-company
Italy                           —        1            —
Taiwan                          1        —            —
China                           —        1            —
U.A.E.                          —        —            1
Norway                          —        —            1
Singapore                       —        —            1
Total                          16       12            16

 Technologies acquired by German firms                        Technologies sold by German firms                                       Commentary

                                                                                                                                      • New technologies for Mobility as a Service, Connectivity and
20                                    Product Architecture    20                                           Product Architecture
                                                                                                                                        Autonomous Driving are high in demand for German
                        ∑ 16                                                                               Smart Supply Chain           companies, while acquisitions for traditional technologies like
         ∑ 15                         Sales
                         1
15        1                                                   15                                           Vehicle                      Powertrain or Industry 4.0 are declining
                         2
                 ∑ 12                 Powertrain                                                                                      • Targeted technologies in Germany are still traditional
                                                                                                           Sales
          6                                                            ∑ 11                  ∑ 11                                       technologies like Powertrain or Industry 4.0, but increasingly
                  4      6            Mobility as a Service                   1                      1     Powertrain
10                                                            10
                                                                              1   ∑9                                                    new technologies like Mobility as a Service or Connectivity
                                                                                         1    3
          1                                                             3                                  Mobility as a Service
                  3      1            Industry 4.0
                                                                                   4          2
          4                                                                                                Industry 4.0
 5                1      3                                     5
                  1                   Connectivity                      4                1    2
                                                                                         1                 Connectivity
          3       3      3                                                               1    2
                                                                        2                1           1
 0
                                      Autonomous Driving       0
                                                                                                           Autonomous Driving
         2015    2016   2017                                           2015       2016       2017

                                                                                                                          Technology driven M&A in the automotive industry From automobile to autonomous | 21
7                                                                                                                                                 Methodology & Authors

Methodology                                                                Disclaimer                                                        Authors

The source used for the data and charts in the study is                    This study has been prepared by Ernst & Young GmbH                              Dr. Peter Hertenstein
Thomson ONE and the date range considered was January                      Wirtschaftsprüfungsgesellschaft (EY) for the purpose of                         Manager
2015 to December 2017. We have considered all acquisitions in              providing the public with information about developments in                     Transaction Advisory Services
which an automotive firm was either the target or acquirer. The            the automotive market. EY points out that the study does not
deals were divided into three broad areas, namely technologies             represent an adequate basis for a final decision about the                      Phone +49 30 25471 23480
related to process improvements, technologies targeting new                information shown in the study. The study is not to be seen as                  Mobile +49 160 939 23480
revenue streams and technologies for the final product. In                 comprehensive or complete in the sense of containing all the                    peter.hertenstein@de.ey.com
total, 3,681 transactions were considered, of which 317 were               facts that might be of interest in connection with the
determined to be technology driven and relevant for the study.             information described. The study has been prepared with the
We have used the rates from Thomson ONE, and no                            usual care and diligence required for such studies. Unless
adjustments were done for the purpose of this study.                       referring to EY itself, the information presented has not been
                                                                           reviewed by EY with regard to its accuracy or completeness.                     Christopher Grüne
                                                                           The information has been gathered by desktop research                           Manager
                                                                           (including public sources, disclosed information and                            Transaction Advisory Services
                                                                           acknowledged databases), complemented by our own market
                                                                           knowledge, but includes no confidential information in any                      Phone +49 30 25471 16131
                                                                           sense – neither qualitative nor quantitative. EY is not                         Mobile +49 160 939 16131
                                                                           responsible for incomplete or false information. Thus, readers                  christopher.gruene@de.ey.com
                                                                           are recommended to examine all information prior to any
                                                                           decision making. EY is not liable for any missing or false
                                                                           information and statements in this study, or other oral or
                                                                           written remarks made in connection with the study. The
                                                                           information in the study has been prepared for a certain target
                                                                           date, prior to its presentation. The main cut-off point for the
                                                                           research was 31 December 2017, with some exceptions relating
                                                                           to research and deals mentioned. Thus, the accuracy at the
                                                                           date of presentation cannot be guaranteed. Any statement
                                                                           regarding future developments is not binding and merely
                                                                           represents an expectation.

22   | Technology driven M&A in the automotive industry From automobile to autonomous
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