CEVT – China Euro Vehicle Technology Innovation in vehicle development

CEVT today, and needed partnerships for continued growth and success

Jerker Andersson,

Vice President Electrical CEVT

9/9/2016

Innovation Bazaar, Sept 8th 2016

1. This is CEVT

Started 2013 as a joint R&D center between Geely and Volvo Cars

Now an innovation center for Geely Group that

keeps some 2000 people in several countries busy.

A Swedish registered company, owned by Geely,

located at Lindholmen Science Park in Gothenburg.

Locations:

Gothenburg: Over 600 full-time and 800

consultants and recruiting.

Hangzhou: Over 500 full-time and recruiting.

Trollhattan: satellite office with 30 working

seats

Version 2 Official Corporate

Presentation

CEVT China

CEVT China is located at the fourth floor of

Building D inside the Geely Research Institute.

There are over 500 full-time employees and

recruiting. From September 2016,the office will

move to Cixi, Ningbo City.

Hangzhou address

No. 3366, Weiwu Road, Linjiang Industrial Park,

Xiaoshan District, Hangzhou City, China.

Version 2 Official Corporate

Presentation

CEVT Geely Design

CEVT Board of Directors

Håkan

Samuelsson

CEO Volvo Cars

Conghui An

(Chairman)

CEO Geely Group

Frank Li

Vice President &

CFO Geely

Group

Carl-Peter Forster

Advisor to

Chairman Li

Mats Fägerhag

CEO CEVT

Mr. An has served as the President of Zhejiang Geely Holding Group Company

Limited (Geely Group) since December 29th 2011, and is now in charge of the

Group’s overall operations. Mr. An joined Geely Group in 1996. Since then, he has

held various key positions in the Group, including Chief Engineering Officer and

General Manager.

CEVT first line organization structure

Version 2 Official Corporate

Presentation

CEO CEVT

Mats Fägerhag

R&D

Jens

Schönenberg

PS/PPL & VLM

Didier Schreiber

Finance

Jon Johnsson

Quality

Fredrik Hedfors

HR

Bengt Enbom

Business Office

Gang Wei

Purchasing

Guan Yu

Geely Design

Peter Horbury

Geely Sales,

Marketing &

AS

Alain Visser

And the Electrical team ?????

> Today….. But changing rapidly:

> 55 employees in Sweden

> 49 employees in China

> 105 consultants in Sweden

> 10 consultants in China

> 50 supplier engineers onsite in Sweden

> 10 ISE from CEVT China in Sweden

> 20 persons at Volvo Cars in Sweden working for us

> 3 persons at Volvo Cars in China working for us

> And bought capacity…… Altran, Infotiv, QR tech, Diadrom and others

> TOTAL: 302 persons (when I wrote this….)

2. This is what we do

R&D Portfolio

> Architecture Development

Creating new modular architectures and key components for C-segments cars.

> Top Hat Development

Creating complete, customer focused vehicles based on the new architectures.

> Shared Component Development

Creating technical solutions applicable to both brands and customer profiles.

> Complete Vehicle Design

Creating beautifully designed vehicles that expands the customer segment.

> Advanced Engineering and New Technologies

Deliverables to

Architecture and components

Shared Component Development

Architecture and components

Shared Component Development

Top Hat Development

Complete Vehicle Design

Advanced Engineering and

Technologies

3. Partnership now and in the future

Working in two locations

>1. There is a dedicate organization in China (CEVT China)

>2. There is only one electrical unit (but two location)

>3. A clear worksplit is decided. A single decision road.

>4. The decisions are most made in Sweden.

>5. In electrical, CEVT China focus on testing and launch support

meanwhile CEVT Sweden focus on architecture, subsystem and

components.

>Yes, there are language barriers, but now, after two years it runs well

! Very exiting ! We work together, operating 16 hours/day and we

know both Chinese and European/Global market needs. It is fun!

Partnership-background

>We are growing rapidly. We need partners to add competence, support rapid growth and overbridge implications of two locations.

>Volvo Cars have limitations of how many “external” projects they can support.

>Infotiv helped us to develop test strategy and build up HIL riggs and get started in BOTH locations.

>Altran has build up and and hosted (only GOT) HIL riggs in both locations. They have developed DVM for us.

>Diadrom have made turn key projects.

>QRTech has delived SW for the climate ECU.

Partnership- future

>We need to have to strong partners to execute subsystem

development, modelling and SW development.

>Turn key responsablity for top hat implementation into “special

vehicle programs”.

>Service development for connected car echo system.

>Mobile network mgt

>Simultaneous support for integration and testing at both

locations.

>……………………

4. The future of CEVT

Where we are heading as a company

Mr. An met with media 4th March to disclose some of the future for us.

> Investment plan until 2020 is maintained at

+3BSEK/year

> Recruitment of approx. 300 people more.

> Satellite office in Trollhättan

> Geely European HQ including an additional

investment plan +3BSEK/year

>Continuous growth

>Increased scope

>Consolidation phase

Combining two cultures

Creating products for a global market

….. and what does that mean for Electrical ???

>1. We are already on the way to develop a new EE platform

>2. We rely less on Volvo Cars and more on ourself and partners

>3. More top-HATS are added to the existing CMA platform

>4. Other programs in Geely will re-use a modified CMA EE system.

>… and “soon”… You will see the first product of CEVT

Thank you