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EGNOS CS/Galileo regulated tracking & tracing services for freight transport

“EGNOS/Galileo services benefiting to regulated applications”,Brussels 10.06.2009

Telespazio

Antonella Di Fazio

antonella.difazio@telespazio.com

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Market environment

EGNOS tracking & tracing services

Market analysis outcomes

Roadmap for products & services development

Contents

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Complex and fragmented market (type of transported goods, mode of transport, type of transport/involved actors)

Different regulatory/policy regimes depending on the specific transport:

Transport of dangerous material regulated by EU and National legislations

Logistics Action Plan (eFreight, “Green” corridors and Urban logistics)

Nation policy initiatives to support ICT in Freight Transport

Sector key market figures:

78 billion tkm dangerous goods transported via road in 2005 in EU-25 and Norway (source: EUROSTAT)

15.557.745 units for the global fleet of maritime containers in 2007 (source: World Container Census 2008)

Present best practices using GPS in combination with other technologies for public and commercial benefits

Market environment

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Combined use of EGNOS OS and CS (CS-NAV) in the Service Centre

Different receiver technologies (sat/terrestrial telecoms)

Door sensors

Pre-commercial tracking & tracing services tailored on user needs and/or regulation, and based on use of Protection Level

EGNOS tracking & tracing services

Demonstrations in live operative conditions

Mit Nucleare/ENI

Italcontainer

Interporto Bologna

Interporto Bologna

EDAS Beta test on-going since April 2009

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Main results Use of EGNOS CS-NAV solution enables EGNOS tracking & tracing in difficult operational conditions

Added values are:

“guaranteed positioning”

augmentation of availabilityENI has considered EGNOS enhanced stability and accuracy an interesting feature for future uses

ENI started to use EGNOS in the operative system for hydrocarbon transport in Europe (100 new EGNOS receivers in the last year thanks to MENTORE)Interest of users and Institutions is focused on specific transport (dangerous goods, valuable goods, specific goods - ex. tobacco)

No general introduction for EGNOS

Opportunities in Urban logistics strongly depend on city mobility policies

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The reference business modelB2B, B2Institutions

Based on the exchange of data through the VAS SP (regulated business)

Two levels of services:

Basic - EGNOS “guaranteed” T&T to Authorities/users

Value added - aggregation of data to users

Regulated data exchange

Compliant to eFreight and open to new actors (ex. insurances)

Different actors for Urban logistics

Platforms under development in Europe to support similar business models in the next years (role of EGNOS?)

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Results of the preliminary business plan Case: dangerous goodsPotential market in Italy (road) ~ 53.000 trucks +

2% per yearRapid GNSS market penetration due to regulation

Main drivers: Potential Market, Terminal Cost, Telecom Cost, EGNOS fee

Revenues

Costs

-10 000k€

-5 000k€

0k€

5 000k€

10 000k€

15 000k€

20 000k€

25 000k€

30 000k€

35 000k€

40 000k€

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Break-even point = 2012

Free cash flow = 37M€

A quite profitable business after only 3 years

Free cash flow

+ 5M€/y

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Potential market in Italy/valuable goods ~ 69.000 TEU (i.e. 36% of total traffic in Italy) + 7,7 % per year

Rapid GNSS market penetration due to regulation

Main drivers: Potential Market, Market growth, Terminal Cost , Telecom Cost, EGNOS fee

Costs

-20 000k€

-10 000k€

0k€

10 000k€

20 000k€

30 000k€

40 000k€

50 000k€

60 000k€

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Free cash flow

Revenues

Break-even point = 2016

Free cash flow = 11 M€

+ 3.5M€/y

A low profitable business after 7 years

Results of the preliminary business plan Case: freight multimodality

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Potential market in Europe (city > 250.000 inhabitants) ~ 59.945 vehicles50% GNSS market penetration in a commercial scenario

Main drivers: EGNOS fee, Service bundling, number of inhabitants

-4.000k€

-2.000k€

0k€

2.000k€

4.000k€

6.000k€

8.000k€

10.000k€

12.000k€

14.000k€

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Break-even point = mid-2012

Free cash flow = 12,7M€

A profitable business after only 3.5 years

Costs

Revenues

Free cash flow

+ 2 M€/y

Results of the preliminary business plan Case: urban logistics

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Roadmap for products & services develop.

Up to Galileo FOC

Private investments needs public early actions and long-term commitments:

At service infrastructure level (EDAS?)At policy level to stimulate and regulate the market

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