2

Automotive Martin Öman

Trends reshaping Automotive

Connectivity

Autonomous

Electrification

3

The new market landscape

4

Established suppliers

Established OEMs

Past: OEM competition Future: Complex market landscape

Emerging OEMs Technology giants

? ? ??

Cities & others

?

??

Mobility providers

??

?

Established OEMs

?

? ?

The Automotive R&D market is increasing

5

Sources: Estimates based on Roland Berger, Oliver Wyman, ADL, Riio

The Automotive R&D market by discipline

Global ESO Volume,[€ bn]

0,6 0,7 0,7 1,00,9 1,1 1,1 1,01,3 1,6 1,7 2,0

2010 2015 2020

Outsourced R&D

29,5

11,7

16,0

20,5Battery & auxiliaries

Electrical, electronic

Propulsion system

Body & Exterior

Interior

Complete Vehicle

Chassis

+43%

+46%

+15%

Disruption Scenario 2020

10,0

7,0

4,5

4,0

7,2

5,4

4,3

3,7

5,0

3,7

3,2

2,6

3,0

Sources: Estimates based on Roland Berger, Oliver Wyman, ADL, Riio

ÅF - Automotive

• +1 500 engineers in the international automotive industry

(>300 has +12 years automotive experience)

• +40 different automotive clients, mainly in Sweden, Brazil, UK, and China

• Extensive experience in executing on-site and outsourced assignments

• Runs 15 automotive clients satellites

• Offers all engineering services within the automotive industry

7

8

Competencies in Automotive R&D

Competencies in Automotive M&R

• Staying #1 at Swedish OEMs with increased share of projects

• Focus on growth within E/E and Embedded systems, and develop software solutions to leverage on

• Follow the home market clients internationally

• Strong focus on winning and conducting projects for new clients in China

• Continue to develop the India local and offshore business

Our Automotive Road Map

12

Energy

Linda Pålsson,BA President

Changing energy landscape

13

Environmentalchallenges

Mega cities and urbanisation

Electrificationof transportation

Technology advances

Energystorage

Aged T&Dgrids

Global policies

Small scale production

Energy challenges& possibilities

Our offer

14

RENEWABLES HEAT & POWER

TRANSMISSION & DISTRIBUTION

ENERGY MARKETS

NUCLEAR

HYDRO

• Work together: owners engineering, collaboration projects (EPCM)

• ÅF adds: expertise and professional resources

• We take responsibility: turn key projects, packages

<

<<<<<<<<<<<Ready to affect and adapt to trends and changes

Goals:

• Leading position in all core markets

• Rapid growth with stable profitability

• Full service scope

• Develop new solutions, business models and global offerings

from our core markets - experience, references and expertise

Growth:

• Decommissioning & Waste Management

• T&D systems, refurbishment and smart grid investments

• 4th generation district heating system

• Energy storage

• Offshore wind power

• Asset Management services

15

Highlights 2017

Q1 Q2 Q3 Q4

Key-role in Vattenfall nuclear decommissioning program

Radioactive waste investigation

Site management grid & construction

Complex high-voltage cable moving project during operation

Frame agreement project management

Högbytorp thermal power plants civil and construction management

400 kV tunnel cablePre study for large scale energy storage

Design – deep dive

Ann Granberg Business Area President, Experience Design

Allan RubergBusiness Area President, Architecture & Design

ÅF Lighting ÅF Sound & Vibration

ÅF Landscape

Growing our design offering

Global offering, 600 specialists

ÅF Industrial design

”One of the things our grandchildren will find quaintest about us is that we somehow distinguish the virtual from the real”

– William Gibson, 2007

Today you do not only design the hardware, you design the experience of products and services.

In mature economies,

70-80% of the economy

is comprised of services

24

FOCUS AREAS• Integrated digitalization• Education• Smart Cities/Human Spaces

25

The merge of digital and physical and organic

Today ÅF knows HOW to do almost anything. Tomorrow ÅF will support society and industries in WHAT to do for a sustainable future…

The teapot mystery…

Why?

Why ÅF Architecture & Design?

The world is

changing!

Mega cities &Urbanization

Environmentalchallenges

4th Industrialrevolution

Globalized market

Growing and ageing

population

E - society

FoodGlobal

policies

The futurePromise of a Smart Society – Strong technological focus!

Liveable cities - Quality of life!

Creating places where people thrive!

The Future of Consulting

Engineering & Design – Hand in Hand

Architecture & Design

The why behind the business model

“The world needs Architecture & Design everywhere”

Our ambition

To be among the few preferred Architecture & Design consultants globally

To become a truly international Architecture & Design brand

To create international brand awareness for ÅF as a whole

ÅF Architecture & Design

Architecture & Design

ÅF Lighting ÅF Sound & Vibration

ÅF Landscape

ÅF Architecture & DesignCreating an anchor-brand ecosystem

High-EndBrands with

Global Impact

High Performance Operations

Tomorrow we are even better

Grow high performance teams driven by enthusiasm and headed by true drivers

Business Development

The future of consulting

Ensure that ÅF is on the cutting edge of consulting constantly increasing our diversity

CommunicationCommunity

Make sure we are heard

CustomerPlatform

Serving a higher degree of customer needs

We want to challenge our clients and create a low effort path to a higher degree of customer needs with great satisfaction on the way

Digitization &Future

Technologies

Digitize ourselves

We will make sure that digitization is an integral part of all our services

Make a difference

Building a cluster of brands and competence centers ready to work around the globe

Architecture & Design

We use design thinking

We will build a communication community from where we will disperse an abundance of good stories and beautiful tableaux

Use high-end niches, profiles and references as spearheads!

Controlling a niche is a golden position!

ÅF Lighting is a lighting design practice working around the globe - designing and realizing a diverse array of projects

ÅF Lighting

Engineering + Design in the field of lighting

The worlds biggest lighting design practice

+100 dedicated lighting specialists

London Copenhagen Stockholm Oslo Gothenburg Malmö Lugano

Worlds largest underwater restaurant, Norway

CNNFox NewsLonely PlanetThe TelegraphDaily MailNew York PostTime Magazine AftenpostenDagbladetThe IndependentLe FigaroBerlingske…

+700 articles in more than 65 countries!

Discovery Channel is already planning to make a documentary about the restaurant!

Working on prestigious projects around the globe ensure great brand and employer value -as well as being good business!

Worlds largest underwater restaurant, Norway

Grand Hotel Chateu De Versailles, Paris

Nine Elms Bridge, London

Volvo Studio, Milan

- thank you!

Opera quarters, Oslo

What is Smart?

▪ Everyone wants to be Smart!

▪ No one knows how to do it!

▪ But the future is definitely interdisciplinary!

Technologicalpossibilities

THE SMART PARADOX

Needs

The gap between the technological possibilities and the lack of understanding of what problems they have to solve is very wide!

Introducing new technologyA new reality means ……fundamental changes!

Implementing technologies in transition is a new paradigm!

Smart market development and status!

56

Existingsolutions

Simple solutions

Smart solutions

Advanced solutions

From technological to value-driven solutions!

What will the future bringSmart Buildings – Building Automation Systems

Ask a hammer - and the answer is ”nails”!

Advanced technologyEndless possibilities – but have we lost control?

What will the future bring?What happens to the user interfaces?

Smart City Technologies

Optimization Added Value

Savings

Pollution reduction

Process optimization

Earnings

Commercial platforms

Recycling

Crowd sourcing

Business development

Sharing Economy

Quality of life

Citizens value

Tourist service

Municipal Intranet

Mobility

Entertainment

Social interaction

Urban development

Involvement

The Smart imperative - Creating value

1+1>2

Make a difference !

Why not go to work in a forest – New King office!

It’s smart when:

BEST

PRACTICE

INSTALLATIONS

SMART

PLATFORM

CONNECTING

SYSTEMS

SMART

GOUVERNANCE

IN NEW

ORGANISATION

The Pincher approach

Design thinking – Strategic approach – Task framing – Need driven

Engineering – knowledge – Experience – Practical approach

Value

ÅF Smart City Service – Danish ITS system

Danish State Roads - ITS systemÅF Smart City Service - Danish National RailSurveillance of electrical and mechanical installations on

railway stations

Pilot project ensuring safety and inspiring green behavior

Safe biking to school

Bus Line B 5 min.Bus 273 3 min.Bus 106 12 min.

Cyclists today 5691

DOKDOS

Smart Cityplatform

5691

30P

Already today we deliver

Smart City Platform Smart City Strategies

Smart Governance and After services

Smart City Workshops

A value stream

ÅF Smart City Service – An iterative value chain

New brief

ÅF`s broad offering is the true asset

Digital services Automotive

Architecture & Design

Infrastructure

Energy Industry

72

Summary – Strategic directionÅF will develop from being a local engineering consultant to being an international engineering and design company. ÅF creates increased value through conceptual solutions that meets needs in societal and technical disruptive trends

FROM:

Traditional consultant company

Sell mainly hours

Service offering

No own “IP”

Single approach

Local

Low scale and leverage

Single brand

To:

Engineering and design company

Sell projects and solutions

Service and “products”

Building up “IP”

Partnering and cooperation

International

Scaling and leverage

Multi-brand