© 2004 tele atlas – all rights reserved. the location enabled future george fink, president &...

© 2004 TELE ATLAS – All rights reserved.

The Location Enabled Future

George Fink,President & COO, Tele Atlas


About Tele Atlas

Worldwide digital map provider to various growth markets: In-car navigation Portable navigation Internet Consumer wireless/cellular Fleet/Logistics Geospatial

Founded in 1985 Quoted on the Prime Standard Index of Frankfurt exchange. Current revenue run rate with GDT acquisition: $170 million. Approximately 2000 world wide employees.


Digital Map Market

Two world wide competitors: Tele Atlas Navteq

Estimated 2004 market size (NA and Europe only): $550 million growing 20% per year.

In-vehicle navigation growing 25% a year. Portable navigation 1H 2004 units exceed full year 2003. Consumer wireless still in infancy.

Market characterized by high entry barriers. $250 million cost to enter North American market. Long market entry lead time.

High fixed costs, low marginal costs. High degree (80%+) flow through of incremental revenue to bottom line.


Maps Today

Maps are static. Updated only once a quarter at best. Often

less than once a year. Delivery via CD/DVD. Most content built into map at time of

creation. Costly to maintain

Large field data collection Hundreds of thousands of map sources

Limited dynamic content Mostly traffic and some weather. Limited delivery mechanism to mobile

devices.

Yet these “limited” maps drive a half a billion dollar global marketplace


Geometry

• Geometry • Street names • Traffic flow • Complex features

• Prerequisite for spatial applications

• Intelligence throughtopology and spatial objects

Enabling :• GIS• Low-end Pc applications• Low-end internet applications

• Routing applications / geomarketing• Advanced speech enabled PC

applications • Advanced Internet applications

Basic Attributes Advanced AttributesTurn by Turn Enabling Features

and Attributes

Turn by turn navigation :• In-car• Through WAP / PDA• Telematic service

Attributes of the Tele Atlas Database

• Features• Basic topology

• Land cover types• Road classification

• House numbers• Phonemes

• Maneuver relations• Signpost information

Zwijnaardse SteenwegPhonemesKortijkAntwerpen Gent

E17


In Vehicle Navigation Trends

Current: Integration with car entertainment

systems reduce cost of system while increasing consumer perceived value.

Example – Pioneer AVIC-1

Near term: Improved user interface with system operation via voice. Improved routing with dynamic traffic and speed information One way delivery of updates and dynamic content via satellite radio

or FM sub-carrier.


In Vehicle Navigation Trends – Advanced Drive Assistance SystemsIntroduction of Advanced Driver Assistance Systems (ADAS) will create demand for ultra-precise maps with new safety-related features and attributes"

Near-term (2004-2006): Speed limit advisor Curve speed warning Stop sign warning

Mid-term (2007-2011): Curve speed control Stop sign control Forward collision warning Lane departure warning Traffic signal warning


Market Trends – Portable Navigation Current:

Historical market is PDA based. Dedicated devices becoming dominant

segment. Medium term:

Integrated with other portable consumer devices – Digital Media Players.

Improved storage capabilities to handle more geography.

Integration with wireless networks to update content.

TomTom for PDA

TomTomGo


Consumer Wireless Market Trends Frost and Sullivan expects

2008 market size of $2.3B (approximately 5-10% of this will be for maps).

Growth will be driven by: Carriers need to get a return on

mandated investment in location technology due to E911 initiative.

Improved network connectivity. Better user interfaces including

use of voice recognition. Wider availability of dynamic

content.


Consumer Wireless Applications

According to Frost and Sullivan there is unlikely to be a single killer application. Important applications are expected to include:

Navigation Where is the nearest Mobile yellow pages Point of Interest Traffic Weather Mobile coupons Find-a-friend Emergency notification Road side assistance


Commercially AvailableWireless Services – North America

Tele Atlas/GDTTele Atlas/GDT NavteqNavteq Tele Atlas/GDT and NavteqTele Atlas/GDT and Navteq

KiveraFriendfinder

$0.20Portable Internet/Telcontar

Tracking$0.30AVIS/Motorola/TelcontarTraffic/Nav.$0.40Kivera/MobileGatesTraffic

$0.08TelevigationFuel Prices13M Total/4M DataNextelRand/TelcontarRand McNally

$0.02InfoNXXDA$0.15Handmark/GeoMicroFinder$0.45Embience/GeoMicroTraffic

$0.40KiveraTraffic15M Total/4M DataSprint

$0.30KiveraTraffic WAP18M Total/6M DataATTWSVindigo/MapQuestMapQuest Maps

$0.90KiveraTraffic JAVA

$0.90KiveraTraffic WAP23M Total/ 5M DataCingularNetworks in Motion/Telcontar

Finder BREWVindigo/MapQuestMapQuest Mobile

GDTSuperpagesDA$0.002AutodeskTraffic SMS$0.40KiveraTraffic BREW$0.45Embience/GeoMicroTraffic BREW$0.40Pharos/TelcontarTraffic BREW

$0.15Navitime/MitsuiFinder BREW35M Total/12M DataVerizon

TA Revenue/Subscriber

SolutionProvidersApplications

Wireless DataSubscribersOperator

KiveraFriendfinder

$0.20Portable Internet/Telcontar

Tracking$0.30AVIS/Motorola/TelcontarTraffic/Nav.$0.40Kivera/MobileGatesTraffic

$0.08TelevigationFuel Prices13M Total/4M DataNextelRand/TelcontarRand McNally

$0.02InfoNXXDA$0.15Handmark/GeoMicroFinder$0.45Embience/GeoMicroTraffic

$0.40KiveraTraffic15M Total/4M DataSprint

$0.30KiveraTraffic WAP18M Total/6M DataATTWSVindigo/MapQuestMapQuest Maps

$0.90KiveraTraffic JAVA

$0.90KiveraTraffic WAP23M Total/ 5M DataCingularNetworks in Motion/Telcontar

Finder BREWVindigo/MapQuestMapQuest Mobile

GDTSuperpagesDA$0.002AutodeskTraffic SMS$0.40KiveraTraffic BREW$0.45Embience/GeoMicroTraffic BREW$0.40Pharos/TelcontarTraffic BREW

$0.15Navitime/MitsuiFinder BREW35M Total/12M DataVerizon

TA Revenue/Subscriber

SolutionProvidersApplications

Wireless DataSubscribersOperator


How Well is Tele Atlas Positioned for this Future? Low-cost, short cycle time change detection capability. Mobile mapping enabling cost-efficient, high-quality data

gathering. Development of a content partner network providing access

to dynamic easy-to-use, relevant information at every location.

Points of interests with drill down to detail information such as menus.

Traffic Joint development and prototyping with partners.

Trials underway with every major US carrier. European relationship with Nokia, Vodaphone, Hutchinson 3G.


Summary

Large growing market with two major competitors. High barriers to entry.

Expansion of penetration of in-car navigation will drive growth of that market.

Become more embedded in the car – ADAS features. Near term growth 20% a year.

Personal navigation penetration will be driven by wireless devices.

Market still in infancy. Inflection point is unknown but market will be very large.

Very little additional investment required for consumer wireless space beyond that required for in-car and personal navigation market.

© 2004 tele atlas – all rights reserved. the location enabled future george fink, president &...

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