Keynotes

1. Venture cases have global disruptive potential to it

2. Europe: covering smart charging, example AMPECO

3. DD: scenario analysis

• I believe most successful venture cases have a global disruptive potential to it

• To get to an outlier that drives returns and ultimately moves the needle for us as an investor, true global scale is required

• With that, we are almost always taking a global view

• => So not a lot has changed for us as a CVC unit

• This means for the long term. Of course, the path there can differ.

• To give you an example, I spend several years as an investor in Europe, covering smart charging

• We invested in a company called AMPECO, providing EV charge point management software

• The product is globally applicable, and the company had a global footprint since we invested

• But I believe resource allocation is important:

  • EV charging infrastructure in Nordics, Western Europe is very mature, having enough growth avenues

  • Other regions are catching up quickly

  • => what’s the right time and scale to access those?

• What has changed during due diligence:

• we spend more time on running different scenarios for local impacts

• We use scenario analyses: on things such as roll out timelines and local capacity planning

• Not something new to us, but just more emphasis to it.

• Breakthroughs will be coming from Foundational Models for the Physical world and not those for Language

• Production world or driving experience

• Big problem: a) Data need b) Low procurement maturity

• Data: real world production data, vehicle data required

Production world:

• Robotics and Digital twin technology

• Increase efficiency, shorten time to market, cut costs and get to more sustainable production

Vehicle data:

• Understanding conditions around it; enhance safety based on that

• Or be context aware for in-car interactions; adjust comfort settings or help make decisions based on driver behavior

• Defensibility will be coming from domain specific data, vertical applications and specific solutions

• Engineering Workflow example

• Supply Chain example

• Past cycles

• Looking into an automotive company: tool chain is very complex (several different teams and engineering and design tools)

• Access to the right data? Integration to Design and Engineering Tool Chain ? Access to existing Know-how?

• => Ultimately about automating and streamlining processes (With engineers focusing on value-driven tasks)

1. Supply chain management

   • Automotive industry has complex supplier networks

   • Predicting demand and spotting disruptions

• First value was accruing in the infrastructure layer

• Then application ecosystem grew over time

• =>so it inverts over time

1. Our job is to look for technologies that are guiding the industry and will be a key disruption in 5-10 years

2. We invest at the venture stage

3. business units look into business case

• Look into technologies that will be a key disruption in 5-10 years

• We are less reactive to the current ups and downs as we are looking more into the future

• We invest in Series A / B round

• We are a bit removed

• anticipate future trends into what public markets demand

• Developments trickle down in private markets

• What I mean by it:

  • Public market volatility first

  • Impacts private markets, first Pre-IPO then growth stage

  • Also important for us to see what happens in growth stage => become investors in our PortCos

  • Hence, also impacts venture stage for us

• So what has changed: moving away from "growth at all costs" towards a focus on efficient growth

• More capital efficient business models are favored

• => Ultimately looking for best of both worlds: needs to meet our financial targets and strategic narrative

• Developments on corporate level play a role in startup investment strategy

• BU looking for business impact

• Impact = value created either in a) lowered cost, b) increased revenue

• Organization has always been very ROI riven:

  • We look at it from a perspective of: a) how fast can the change be and b) how disruptive is its potential

• Be modest on your runway and cashflow projections:

• times of 18 months to your next rounds are over – will take much longer and milestones higher

• Be clear about your vision, why it’s disruptive and don’t worry about current market conditions

• Not a single technological disruption but rather an interplay and orchestra of different technologies:

• Change the way we buy and finance a car; make the workflows much more efficient; give you more data; make better decisions; more tailored to you

• Engage with customers early on

• Run PoCs; sign LOIs and MOUs

• If the pain point is there; corporates will engage in those conversations since the pain point is really there

• Less important if it’s just layer

• Importance: does it create real business impact? If yes, there is real enterprise value here

• Question then is if the business model is defensible but that’s another topic

• Ultimate goal: make different organizational processes more efficient