TECHNOLOGY DISRUPTION

in Oil Market

CoalFirewood

1781 1908

Oil Gas

ENERGY REVOLUTION

Renewables

1960 Present

Climate Change

Energy resources have changed throughout the history.

Before Christ

(B.C.)

2

ENERGY TECHNOLOGY TRENDS

KEY CHALLENGES

AGENDA

CHAPTER 1 CHAPTER 2 CHAPTER 3

NEW ERA OF TRANSPORTATION

ENERGY TECHNOLOGY TRENDS

KEY CHALLENGESNEW ERA OF TRANSPORTATION

AGENDA

CHAPTER 1 CHAPTER 2 CHAPTER 3

ENERGY TRENDSCHAPTER 1: ENERGY TECHNOLOGY TRENDS

Accelerated energy technology development for better living

Electric MobilityRenewable EnergyDigital Technology

5

ENERGY TRENDS

Electric MobilityRenewable Energy

CHAPTER 1: ENERGY TECHNOLOGY TRENDS

Digital Technology

Accelerated energy technology development for better living

6

Source: Bloomberg New Energy Finance, IEA, Wood Mackenzie

Solar and wind are now cost-

competitive for power sector

Wind costs

50%by 2035

Solar costs

60%2025

and by a further

20% by 2035

by

RENEWABLE ENERGY TO BE MAJOR SOURCE OF POWER GENERATIONCHAPTER 1: ENERGY TECHNOLOGY TRENDS

Solar and wind continuously grow and replace fossil fuels in power sector

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1970 1980 1990 2000 2010 2020 2030 2040 2050

Gas

Oil

Nuclear

Hydro

Solar

Wind

Other

CoalFossil Fuels

Renewables

48%Solar &Wind

Percentage of power generation by source

7

TECHNOLOGY TRENDS IN AUTOMOTIVE SECTORCHAPTER 1: ENERGY TECHNOLOGY TRENDS

2 wheels 3 wheels Passenger Cars

8

Car Sharing Autonomous

TechnologyImproved PHEV/BEV

System

Technology advancement supports EV adoption in the future

Electric Mobility in Other Segments

Mobility Development

ENERGY TECHNOLOGY TRENDS

KEY CHALLENGESNEW ERA OF TRANSPORTATION

AGENDA

CHAPTER 1 CHAPTER 2 CHAPTER 3

Source: A guide to electric vehicles, consumer NZ, 2017.

TECHNOLOGY DRIVES ELECTRIC VEHICLECHAPTER 2: NEW ERA OF TRANSPORTATION

PETROL

(ICE)HEV

(Hybrid)

PHEV

(Plug in Hybrid)

BEV

(Battery)FCEV

(Fuel Cell)

10

Source: A guide to electric vehicles, consumer NZ, 2017.

TECHNOLOGY DRIVES ELECTRIC VEHICLECHAPTER 2: NEW ERA OF TRANSPORTATION

PHEV and BEV can be charged by electricity from an external source.

PETROL

(ICE)HEV

(Hybrid)

PHEV

(Plug in Hybrid)

BEV

(Battery)FCEV

(Fuel Cell)

11

Sources : IEA Global EV Outlook 2019

CONTINUATION OF EV GROWTH vs TECHNOLOGY AND COUNTRY POLICY

CHAPTER 2: NEW ERA OF TRANSPORTATION

2018 EV Car Sales

2 M

in 87 M of Total

Car Sales

EV Car Sale

2013 2018

China

1,062

2013 2018

EU356

U.S.

2013 2018

294

Unit: Thousands

* EV : PHEV and BEV

12

POLICY

CONSUMER

TECHNOLOGY

KEY SUCCESS FACTORS FOR EVCHAPTER 2: NEW ERA OF TRANSPORTATION

13

POLICY

CONSUMER

TECHNOLOGY

KEY SUCCESS FACTORS FOR EVCHAPTER 2: NEW ERA OF TRANSPORTATION

14

Source : Questionnaire From Autolist (20 Aug. 2019)

Driving Range

Automotive Price42%

Charging Station38%

Charging Time28%

43%

CONSUMER IS THE MAIN INFLUENCER FOR PUSHING EV CHAPTER 2: NEW ERA OF TRANSPORTATION

What are the main concerns to buy or not to buy EV?

15

POLICY

CONSUMER

TECHNOLOGY

KEY SUCCESS FACTORS FOR EVCHAPTER 2: NEW ERA OF TRANSPORTATION

16

0

10

20

30

40

50

2016 2020 2024 2028

(USD)

Battery Powertrain

Vehicle ICE (Medium)

48% 42% 36% 31% 27% 24% 21% 18%

U.S. Medium-Sized BEV Price Breakdown,

ICE Price & Share of Battery Costs

Sources : Bloomberg New Energy Finance

2018 Costs of EV car

42% Battery≈ 54% Vehicle≈ 4% Powertrain

2018

TECHNOLOGY REDUCES BATTERY COSTSCHAPTER 2: NEW ERA OF TRANSPORTATION

Battery costs make up of almost 50% of EV production costs.

17

Sources : Bloomberg New Energy Finance

Developing in battery efficiency led to 4 times increase in driving range in the

past 10 years

TECHNOLOGY INCREASES DRIVING RANGECHAPTER 2: NEW ERA OF TRANSPORTATION

18

Source : Charging the Future: Challenges and Opportunities for Electric Vehicle Adoption, Harvard Kennedy School, 2018

LEVEL 1: ORDINARY CHARGERS MINIMALSlow

Charger

FastCharger

CHARGING TIME AND SPEEDCHAPTER 2: NEW ERA OF TRANSPORTATION

Fast Charge development in progress, cost remains the key challenge.

Charger Classifications

LEVEL 2: CHARGERS BASIC

• Charging time 27 hrs for 1.4 KW• Residential

• Charging time 6 hrs for 6.6 KW• Residential and public

LEVEL 3: FAST CHARGERS FAST• Charging time 45 mins for 50 KW• Public

LEVEL 4: SUPERCHARGERS • Charging time 15 mins for 150 KW• Public

LEVEL 5: ULTRA-FAST • Charging time 6 mins for 350 KW• Public

ADVANCED

ULTRA-FAST

19

*Time taken to charge 100 miles

POLICY

CONSUMER

TECHNOLOGY

KEY SUCCESS FACTORS FOR EVCHAPTER 2: NEW ERA OF TRANSPORTATION

20

2025 no new gasoline or diesel car sales 2030 all

vehicles emission free

no new gasoline or diesel car sales

2040 No sales of gasoline/ diesel vehicle

2030 ban import ICE

ban fossil fuel cars

phase out ICE

2050 ban

Policy on vehicle

National commitment is a major influencer to push EV forward

COUNTRY POLICY CHAPTER 2: NEW ERA OF TRANSPORTATION

21

0

500

1000

1500

2000

2500

3000

3500

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Forecast

New EV Cars Sales

Sources : Bloomberg New Energy Finance, MIIT

Thousands

TARGET: New-energy vehiclesPHEV, BEV and FCEV sale 3M units in 2025 Tax Reduction

/ Exemption

InfrastructureR&D

Subsidy

COUNTRY POLICY

CHINA POLICY SHIFTING EV INDUSTRYCHAPTER 2: NEW ERA OF TRANSPORTATION

Environmental concerns in China stimulate Chinese government to raise EV car

22

ENERGY TECHNOLOGY TRENDS

KEY CHALLENGESNEW ERA OF TRANSPORTATION

AGENDA

CHAPTER 1 CHAPTER 2 CHAPTER 3

KEY SUCCESS FACTORS FOR EVCHAPTER 3: KEY CHALLENGES

24

STRONG CONSUMER ACCEPTANCE

FURTHER TECHNOLOGY DEVELOPMENT TO MAKE EV AFFORDABLE FOR MASS MARKET

CONSISTENT & FIRMGOVERNMENT

POLICY