Towards Autonomous Driving Frank Melzer

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Towards Autonomous Driving Frank Melzer October 2

Global Trends - Changing World Biggest change in 130 years Automobile Trend for Urbanization Less and less possibilities for Fun to Drive Technology trend big data and automation IT and semiconductor industry discovered the car Increased security needs Safety standards are driven towards Real Life Safety 2

Impact on Driver Increasing situations with need for Real Life Safety Under challenged Boring situations distracted driver Fun to drive Enjoyable situations focused driver Stressed Critical situations - paralyzed driver Need for active safety 3

Industry Roadmap towards Automated Driving From driver only to full automation Driver SAFE OPERATION Change of responsibility System TODAY SAFE OPERATION EVEN UNDER FAILURE Driver without assistance Feet off Hands off Eyes off Mind off Driver off Longitudinal guiding Longitudinal and lateral guiding System monitors & transfers to driver when reaching limits System copes with all tasks within the defined use cases, eg. highway System copes with all tasks in all situations 0 driver only 1 assisted 2 partial automated 3 conditional automation 4 high automation 5 driver less DriveMe 4

Five Key Technologies pave the Way Development driven by Semiconductor and Software Technology Autoliv Scope Complete System Integration on Vehicle Level Sensors Control Software Actuators Backend Range of different technologies Centralized high performance computing power Environment and decision model Highly reliable, fail-operational systems Highly accurate maps and big data 5

Three pillars of Autoliv Electronics M&A is strengthening our way to $3B Autoliv Electronics Passive Safety Electronics Passive Safety Electronics 2014 approx. $1B 2019 > $1B ADAS 2014 approx. $500M 2019 > $1B Active Safety Brake Control Systems 2016 approx. $600M* 2019 < $1B M&A MACOM SW IP - Volvo JV with Nissin Kogyo (*) closing expected early 2016 6

Customer Portfolio Strong position with key customers Passive Safety Electronics Customer base 9 out of TOP 20 OEM* Autoliv has largest share at all 9 customers Active Safety Customer base 6 out of TOP 20 OEM* Autoliv has largest share at 4 customers (*) Basis: TOP 20 Safety Electronics Customers globally 7

New Requirements drive the Market From standard situations to Real Life Safety Standardized Test Scenarios Real Life Situations and Benefit 8

Base Solution State of the art Active Safety System 2015 Range of Sensing Technologies and System Segmentation Sensing System Segmentation Radar Vision Infrared Lidar Ultrasonic Rear radar Mono or Stereo Vision system ADAS control unit ECU fusion solution Corner radar Front radar Mono or Stereo Vision system Single sensor solution No single Technology able to cover all Requirements Front radar 9

AEB Euro NCAP 5-star Solutions 2015 Fusion Systems dominate the market Lidar 4.) Mono Camera Radar Stereo Camera Fusion OEMs 1.) 5 3 6 2 12 Exclusive solution at OEM 2.) 1 0 1 2 5 Best Euro NCAP Rating 3.) 6% 84% 87% 91% 100% 1.) Number of OEMs out of Top20 using the solution (multiple counts possible) 2.) Autoliv Analysis 3.) Source: www.euroncap.com, EURO-NCAP Data 4.) Used for AEB-City Testing Only, not elligible for AEB-Interurban; Potential fulfillment rate calculated for comparison 10

Evolving 5-Star NCAP Requirements Real Life Safety will rely on more complex Sensor Fusion Solutions 2013 2014 2016 2018 2020 Central ADAS ECU Market Intro Autoliv 1 st Preferred Front Corner Radar Market Intro Autoliv 1 st Preferred Front Sensor AEB Mono AEB Radar Autoliv 1 st 1 sensor required Fusion preferred Fusion required City Interurban Pedestrians Cyclists Intersections 2013 2014 2016 2018 2020 11

Sensors - Radar Technology Broadest portfolio in the market Front and Rear Radar Systems in production on >80 different vehicles Market leader with Radar Only NCAP 5 star solutions New technology platform 77 GHz launching 2015 Portfolio of all Radar Sensor Technologies 12

Sensors - Vision Technology Broadest technology platform Mono Stereo Night vision 2013 First to market with Vision based AEB 2015 Mono Camera with Autoliv owned algorithm Autoliv Stereo Camera with own AEB 2017 Mono Camera with Autoliv Vision based AEB AEB Autonomous Emergency Braking Mono and Stereo 13

Computer Vision Technology Broad capabilities for growth Scalable Hardware Solutions for 1 to 6+ function cameras Stereovision with the advantage of a 3D view of the world - real-life safety solution In-depth knowledge of sensor algorithms enables optimized Fusion solutions Driveable Road Surface 14

Controls - ADAS ECU The brain of an active safety system World First Central ADAS ECU Launching 2015 Autoliv is Industry Leader in integration of Safety Features Scalable Hardware Solution World first central ADAS ECU 15

Controls - Passive Safety ECU Breakthrough Innovation paved the way to leadership % Market Share* 25 20 Competitor 1 Competitor 2 15 Competitor 3 10 5 0 Integration of Rollover Sensing IMU Sensor Integration '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Integrated Brake Control 2001: 2 RDE & 2 MFG Sites Global Footprint Expansion 10 RDE & 3 MFG Sites (*) based on units IMU Inertial Measurement Unit 16

Software - Autoliv Feature and System Software Broad capabilities for growth Joint development on Autonomous driving features with 2 OEMs Licensing Volvo ADAS software feature package and IP In-house development of system integration, algorithms and features 17

Actuators - Brake Control Systems Market drivers - changing towards electric actuated brake control systems Powertrain / CO 2 reduction Active Safety Total Cost Comfort Hybrid / EV Evolution of ICE Brake Feel or Regenerative braking Low / no vacuum High response AEB Reduction of complexity Variable characteristic ICE Internal Combustion Engine EV Electric Vehicle 18

Actuators - New Braking Control Systems Architecture Hardware Integration Current System Servo assisted brake Integrated Power Brake Power Source or Apply Brake Control More than 15 years experience with electrically actuated brake systems Market Leader Power Braking System 1 Million Systems 2018 19

Towards Automated Driving Saving Lives through Real Life Safety Our Mission guides our Growth Levers Customer Technology People 20

Every year, Autoliv s products save over 30,000 lives and prevent ten times as many severe injuries 21