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1. l-commerce m-commerce e-commerce www.theaa.com motoring & travelling answers, from:

2. Telematics:eCommerce in the Driving Seat David Viney 12 March 2002

3. David Viney, BSc ACA 32. Qualified with PWC London before joining British Airways. Moved into Technology / Business interface, with programme management experience on Year 2000 and eBusiness. Joined Centrica in December 2000 as a “mini-CTO” for theAA.com. Also manage the business/IS Interface for the corporate website & the Centrica Intranet. Introductions

4. 3 4 • Centrica…. Who? • Who we are • What we do • Why we are special • Focus on theAA.com • What we have to offer • Channels to market • Our Strategy • eCommerce objectives • Focus on Telematics • The market, as is & to be • Winning products & services 1 18 Outline Agenda The final question: “How will L-commerce in general, and telematics, in particular change the way companies reach their customers and the products and services that they sell to them?”

5. BG International • Demerged in 1997 • Lattice - Infrastructure • BG plc – Exploration etc. Centrica Who we are • British Gas • Privatised in 1986 • Demerged in 1997 • Company split into 2 parts • Centrica • British Gas brand in UK • Morecombe Gas Field • Billing & Collecting • Oh, and 20m customers • Verdict in 1997? • Take or pay contracts • Market opening to competition • Tight pricing regulation • Centrica will fade and die 1/26

6. Centrica What we do • Core business • Own the home • Own the car • Own the customer • Road Services • Breakdown services • Motor & Travel Insurance • Warranties, Inspections, Checks • Home services • Gas supply • Repairs & servicing • Electricity suppy • Telecommunications • Financial Services • Goldfish Credit Card • JV with Lloyds Bank :evolve • Personal Loans etc. • AA IFA recently launched 2/26

7. Centrica Why we are special > 42.5p in ‘97 - over 200p today > 100% growth over 4 yrs > Against a falling FTSE 100 > Rated strong buy by brokers 3/26

8. theaa.com • the leading motoring & travel portal • Getaway • Travelwatch • All About Cars • Goldfish.com • Full online bank • Launch imminent • house.co.uk • Find & buy a home • Manage the move • Arrange essential services • Launch in November 2001 • Longer term: home automation Strategy eCommerce Objectives 4/26

9. 1. We are a huge site 3. Now a significant sales channel 1.4m monthly users Autotrader British Airways Direct Line M&S RAC AA Source: Neilsen January 2002 2. We are growing fast 4. Achieved at a competitive cost Cost per page served 77% Growth in audience for AA.com since re-launch 35.5p McDonalds 49% Growth in active UK Internet audience over the same period 13.6p Lastminute.com 6.5p theAA.com Source: Neilsen January 2002 theAA.com Where is theAA.com today? 5/26

10. Insurance Warranties Bookshop Breakdown Hotel Bookings Car Data Checks Riders Reports Vehicle Inspections Glasses Guide Data Traffic Master Data Driving School Personal Loans Patrol Reports Products & Services Traffic Info Navtech Data Events Info Travel Guides Cheapest Petrol Motoring Policy Unit Road Atlas POIs AA Hotel Ratings Directions Data NCAAP Car Tests Ordnance Survey Data Motoring Info Travel Info theAA.com What we have to offer Information Assets, Products & Services 6/26

11. 93 Local Authorities 8 Motorway Control Rooms Mobile Phone Users “Jambusters” 4100 Traffic Master Sensors 30 Ferry Companies National up-to-date database 7000 AA Patrols & British Gas Engineers 52 Regional Police Forces Traffic Speeds 80,000 miles of roads 1,500,000 traffic incidents pa European Road Information Centre 30 CCTV Control Rooms 63 Regional Public Transport Companies Bridge opening information 40 Roadwatch Motorcycles theAA.com Over 8,500 Sources of T&T Information: 7/26

12. Web B2B Data Sales DiTV CD Sales WAP SMS In Car Telematics RDS/TMC Mobile Fixed Line/ Call Centre Radio / Broadcast Hard Copy theAA.com Channels to market Information Assets, Products & Services 8/26

13. Is all about people going places…. Telekommunikation (telecommunication) Convergent consumer mobility needs, being created by: Infrastructure Congestion • Increasing number of vehicles per roadmile • Increasingly inadequate road networks • Real possibility of pan-European gridlock Informatik (information) ..in the automotive industry, telematics refers to the provision of two-way voice and data communication between the vehicle and information service providers Our definition includes “SatNav” systems and more traditional “in-car telematics” Need for Dynamic Routing & Information Services Changing Society & Lifestyles • Employment mobility • Widening gap between rich & poor • Increasing perception of hostile unfriendly society Need for Personal Safety & Security Services telematics Telematics 9/26

14. 2000 $5bn telematics Three Distinct Regions Japan • Sizeable lead in market size & technology • Lead by Electronics Manufacturers • Charge for hardware; free services bundled End user revenues • United States • Lead by Separate companies est. by OEMs • Hardware as an optional extra • Recurring charge for services • (Western) Europe • Lead by OEMs as a core activity • Mixed approach – hardware & services 10/26

15. 2010 $49bn telematics The ten year view 2000 $5bn 11/26

16. telematics A growing market • Dominated by Hardware today • Longer term, Services the key to growth > 12/26

17. telematics The two biggies • Onstar appears in the US at end of 1997 • Reached 1m subscribers in April 2001 • Ford in catch-up mode with Wingcast > 13/26

18. telematics Considerations for the future • Safe & secure or Wireless Portal? • Vehicle console or wireless device? • Windows vs. Java • The role of floating car data • GPS vs. wireless location technology > 14/26

19. Step 3 In car Voice portal access to multiple services, incl. email, music, news and entertainment offerings. Step 2 VR technology enhances the user interface. In car turn-by-turn navigation & POI. Real-time traffic info Step 1 Connection to emergency services, breakdown services, call centre navigation assistance telematics Likely future developments Floating Car Data Time 15/26

20. Likely future developments 16/26

21. telematics Our own experiences • A long gestation period & some aborted projects • Have finally given birth • Exciting partnership with a major OEM - Ford • Now working with many others 17/26

22.  sos An “E-Call” connects the driver to the emergency services with a hands-free cellular voice call. At the same time, an in-car GPS takes a location, which is combined with vehicle make & model data in an SMS, which is transmitted to the Emergency Call centre operator   telephone Connects driver to a hands-free voice recognition system, from which he can call a UK number from his own address book. In this way, there is less driver distraction in making the call   traffic Connects driver to the 401100 AA traffic IVR service. The service picks up the cell ID of the cellular connection to give local traffic information.  operator services Connects driver to an AA Call Centre operator with a hands-free cellular voice connection. As for e-call, location & vehicle data is sent to the agent by SMS. From here, services available include (a) Dispatch a Breakdown unit to drivers location, (b) Provide routing directions to driver, (c) Direct driver to Places of Interest (e.g. cash point) & (d) Give driver local traffic info telematics The Ford Platform 18/26

23.  sos: vehicle position 19/26

24.  sos: vehicle direction & speed 20/26

25. operator services: strategic routing 21/26

26. operator services: street level routing 22/26

27. operator services: direct to POIs 23/26

28. operator services: more info on POIs 24/26

29. telematics The final question • Initially, mid-range and high-end marques • OEMs take telematics to the mass market • Telematics as a core CRM tool for OEMs • Guaranteed captive market • Stimulates more impulse purchasing The final question: “How will L-commerce in general, and telematics, in particular change the way companies reach their customers and the products and services that they sell to them?” 25/26

30. Credits: Worldwide Telematics Industry: Eyes on the Road and Hands on the Wheel[Aug 2000] Global Autos Team +1.212.821.2317 Download at: http://www.eye4auto.com/content/ubs_warburg.pdf Download the presentation at: Viney website: http://www.viney.com/DV/Filespace/filespace.html Other resources: Visit Ford Wingcast at http://www.wingcastmobility.com Visit OnStar at http://www.onstar.com Contact Details David Viney BISM, E-Commerce Centrica IS Mobile 07979 567690 david.viney@theaa.com 1F Millstream East Maidenhead Road Windsor SL4 5GD Telephone 01753 492 286 Facsimile 01753 493 422 www.centrica.co.uk motoring & travelling answers, from: www.theaa.com 26/26