Opportunities for investment

Future of mobility

Opportunities for investment

May 2019 uk/mobility2030

The mobility disruption is changing how we travel, purchase, and consume

Public health/ environmental policy

2019

deployment of the Ultra Low Emission Zone in central London through to 2021

Changing data infrastructure for smarter vehicles

4TB amount of data generated by an autonomous vehicle per second

Decline in aftermarket

~60% lower repair and maintenance costs over an EV's lifetime compared to ICE

`Aggregator' business models will impact downstream value

15x increase in downstream value pools due to services such as entertainment and retail

New supply chains emerge to support EV, AV and MaaS

50+%

decline in battery costs expected from now until 2030

Fleet operating costs will be optimised

29%

of heavy goods vehicles are currently running empty

Sources: Intel, Waymo, Bloomberg New Energy Finance, KPMG Mobility 2030 analysis, UBS electric car teardown

? 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

On-demand mobility driving the rise of fleets

30-40%

decline in per-mile cost for MaaS vehicles

Future of mobility | 2

Acceleration of EV, AV and MaaS adoption expected from the mid-2020s

2017-2040 passenger vehicles in UK

EV penetration

2% 0%

2017

% of new car sales

% of parc

8% 27%

1% 2%

2020

2025

69% 20% 2030

94% 60%

2040

AV penetration

0% 0%

2017

% of new car sales

% of parc

0% 0%

8% 1%

2020

2025

26% 5% 2030

94% 40% 2040

MaaS penetration

% of new car sales % of parc

3%

3%

1%

1%

2017

2020

Source: KPMG Mobility 2030 analysis

11% 2% 2025

25% 6% 2030

? 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

42% 17% 2040 Future of mobility | 3

The mobility disruption is connecting historicaly disparate value chains

Experience

Smart Home

Media

Retail Experience aggregator

Electric vehicle

Raw material manufacture

Tier II

Autonomous vehicle

Logistics

Strategic planning

Inventory management

Carrier service

Last mile delivery

Battery

Material mining

Battery manufacture

Battery management

systems

Reverse logistics

Customer or Fleet

Tier I

Security

Connectivity

Sensors

Hardware provider

Data platforms / processing

AV Solutions

OEM

Energy as a service Distributed generation

Retail

Wholesale & trading

Distributed storage

SmartGrid

Transmission

Centralised Generation

Energy

CP data services

Fuel Payment

Charge Point Operators

Installation services

Design & build

Electric vehicle infrastructure

Fleet refuelling services

Remarketing

SMR

Fleet management as a service

Account management and payments

Finance and insurance

Fleet services

MaaS Provider

Data services

Insurance Government and regulation

Vehicle management Public transport integration Infra-structure

Mobility as a service

Source: KPMG Mobility 2030 analysis

? 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

Future of mobility | 4

Indeed, OEMs are starting to gather the key ingredients

Uber

Cruise

Maven

General Motors

Lyft Strobe

Autoliv

Luminar

Volvo

Uber

FBryeMewilierse

Autonomous Intelligence

Driving

NVIDIA

Moia

Volkswagen Group

Mobileye

Aurora

Velodyne

Ford Smart Mobility

Autonomic

Civilmaps

Ford

Argo AI

Transloc

Lyft

Motivate

Spin

Revv

Aurora

Grab

Hyundai

OEM MaaS

Migo

Waivecar

EV

AV tech

Supply chain Alliance

Careem

Turo

Via

NVIDIA

Bosch

Daimler

mytaxi

Uber

Drover Drivenow

Source: KPMG Mobility 2030 analysis

Uber

Yuko Grab

Getaround

Toyota

Triad

NVIDIA

May Mobility

Parkmobile Continental

Moovit

Intel

BMW

Reachnow

Delphi



Moovel Car2go

? 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

Future of mobility | 5

The scale of the investment opportunity has increased exponentialy

Historic

A new $10 trillion industry is attracting significant investment

Smart mobility has attached investment of

$111 billion

since 2010

The top five ride hailing firms

are worth

$150 billion

$90 billion

carmakers in Electric Vehicles according

to Reuters

The investment opportunity and benefits are significant:

$9 trillion ?

potential global marketfor mobility and related services

$900 billion?

10% annual global market share of mobility market that Britain could secure within a decade by leading the way...

$50-100 billion

per year of additional estimated social and economic benefits

in UK by 2030...

Future (2030)

Source: KPMG Mobility 2030 analysis

? 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

Future of mobility | 6

Investment opportunities exist across the mobility ecosystem

The future mobility ecosystem will consist of...

Example mobility investment types

Businesses

e.g. Mobility as a Service platforms

e.g. Commercial logistics businesses

&

Emerging business models

Fleet hubs and depos

Assets

Vehicle fleets `Cars'

EV charging stations `Plugs'

... supported by ...

Batteries and alternative fuels

Autonomy

Infrastructure

Road infrastructure

`Tarmac'

Real estate, parking and

servicing

Electricity grid

`Wires'

Telecoms Manufacturing

infrastructure infrastructure

`Pipes'

`Tools'

... all underpinned by ...

Data &

EV/AF

Physical

Connectivity infrastructure infrastructure

Financial ecosystem

Payments `enabling transactions'

Data sharing platforms `insight aggregation'

Cybersecurity

Key

Companies and technology

Infrastructure and assets

Source: KPMG Mobility 2030 analysis

? 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

Future of mobility | 7

Investments vary by risk and reward appealing to different investor types

Illustrative investment opportunities

High

Potential investment requirements

Fleet 5G financing

Upgrade of roads

Smart AV grid Lanes

AV software

Repair/garages for AV/EV

MaaS platforms

EV charging infrastructure

Smart road infrastructure Distributed

Cloud/data centres Fleet

generation

financing

and storage

V2V/ V2I

Sensors

Integrated mobility platforms Traffic coordination technologies

Cyber/Security systems

EV/AV parking/ servicing

High resolution

maps

Battery manufacturing

Low Low

EV/ AF Infrastructure Physical Infrastructure

Likelihood of obsolescence

Data and connectivity New business models

High

Vehicle & manufacturing

Source: KPMG Mobility 2030 analysis

? 2019 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

Future of mobility | 8

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