Development of the Automotive Business Segment in 2013

The demand for automotive software products and services developed well during the whole year.

Net sales of the Automotive Business Segment grew to EUR 138.3 million in 2013 (restated net sales of EUR 110.6 million, in 2012), representing 25.0 per cent growth year-on-year. A significant proportion of the growth in the net sales came from the rapid growth of e.solutions GmbH, the jointly owned company with AUDI.
Operating profit was EUR 8.5 million (restated operating profit of EUR 3.3 million, in 2012). Operating
profit improved year-on-year due to the growth of the service and software sales, and improved management of projects and measures to improve the cost structure.

During 2013, EB was selected as the supplier for several long-term product development and product customization projects for leading car makers. A pricing model, where a part of the product development fee is moved to license fee based on the actual delivery volumes of new cars, was increasingly often taken into use
in the largest projects. When using this pricing model, which is common in the automotive industry, the project specific positive operating result and cash flow will be typically reached first during the car production years.

EB continued significant R&D investments into the automotive software and tools. In 2013, EB announced a new version of its HMI development platform, EB GUIDE 5.5, which includes a wide-range of consumer-inspired features including 3D content import, compelling graphical animations and effects, speech recognition
for dynamic data, as well as multi-touch and touch gesture recognition for smartphone-like user interaction. EB GUIDE 5.5 also enables carmakers and suppliers to create multi-modal HMIs enriched with HTML5 application-like content.

EB also announced that the runtime solution of its development platform for human machine interfaces (HMIs), EB GUIDE Graphic Target Framework (GTF), has been ported to the Renesas´ R-Car H1. The collaboration will enable car manufacturers to use the high-end Renesas chip in combination with the EB GUIDE GTF to utilize the advanced graphical capabilities of the SoC (systems-on-chip).

EB integrated its EB street director navigation software into the QNX CAR™ application platform 2.0, a set of pre-integrated and optimized technologies used to develop advanced infotainment systems for connected car. The system has been demonstrated at QNX´s booth during CES 2013 in Las Vegas.

In the Driver Assistance domain, EB and Daimler strengthened their long-term successful partnership for developing Daimler´s embedded driver assistance software. Through this partnership, a new collaboration model
was introduced, with EB assuming the role of direct software supplier for Driver Assistance to Daimler. The support from EB comprises function and implementation models, software implementation, module tests and integration tests for more than 200 software modules and more than 25 car series, including the newly
launched S-class. By separating hardware and software development, EB and Daimler are able to manage the growing complexity of software in the Driver Assistance domain. It also enablesboth parties to focus on their core competencies.

In 2013, EB was able to announce to be among the first suppliers to deliver an ASIL D certified AUTOSAR operating system and the only one certified for two safety standards. ASIL D and SIL 3 rank among the highest security levels for functional safety according to the ISO 26262 / IEC 61508 specifications for electric and electronic components. Functional safety is getting more and more important for automotive ECUs and these certificates received strengthen EB´s position in these markets.

In 2013, e.solutions GmbH, the jointly owned company of EB and AUDI, progressed well and according to its targets in developing the highend infotainment systems for the Volkswagen Group car models. EB´s navigation and speech products are used in e.solutions products. At the end of 2013, e.solutions had 321 employees
in Germany.