BE PART OF THE AUTOMOTIVE JOURNEY ESTABLISH A SOFTWARE DEVELOPMENT CENTER FOR INFOTAINMENT IN SKÅNE

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1 BE PART OF THE AUTOMOTIVE JOURNEY ESTABLISH A SOFTWARE DEVELOPMENT CENTER FOR INFOTAINMENT IN SKÅNE

2 SKÅNE SWEDEN S SOUTHERNMOST PROVINCE MAIN CITIES: LUND & MALMÖ THE LARGEST CONCENTRATION OF HIGHLY EDUCATED PEOPLE IN NORTHERN EUROPE EXCELLENT INFRASTRUCTURE

3 SKÅNE IS BORN MOBILE SKÅNE HAS A LONG HISTORY OF MOBILE PHONE R&D WITH SONY AND ERICSSON ERICSSON ESTABLISHED THEIR MOBILE PHONE HQ HERE IN 1984 THE BIRTHPLACE OF BLUETOOTH THIS COMPETENCE, AMOUNTING TO AROUND , IS TODAY SHAPING CONNECTED PRODUCTS AND SERVICES FOR TOMORROW S MARKET

4 SKÅNE COMPRISES THE WHOLE AUTOMOTIVE VALUE CHAIN INCLUDING LOGISTICS & DISTRIBUTION + HAS A STRONG FOCUS ON AUTOMOTIVE R&D

5 WHAT SKÅNE OFFERS (1) HIGHLY EDUCATED PEOPLE CLOSE TO MAJOR RESEARCH INSTITUTIONS 15 UNIVERSITIES WITH STUDENTS STRONG FOCUS ON ENGINEERING, COMPUTER SCIENCE, PRODUCT DEVELOPMENT AND DESIGN & MEDIA TECHNOLOGY (2) VERY INNOVATIVE IT-CLIMATE SKÅNE = ONE OF THE WORLD S TEN MOST INNOVATIVE REGIONS HOME OF VOLVO, ELECTROLUX AND ERICSSON + TECH STARTUPS LIKE SKYPE (SWEDISH CO-FOUNDATION), SPOTIFY, SOUNDCLOUD AND BLUETOOTH (3) LOW OPERATING COSTS AND EXCELLENT INFRASTRUCTURE COMPETITVE CORPORATE TAX RATE 22%, NO REGIONAL OR LOCAL CORPORATE TAX RATE, R&D DISCOUNT, INTERESTS FULLY DEDUCTIBLE FOR TAX PURPOSES EASY ACCESS WITH COPENHAGEN AIRPORT, THE LARGEST AIRPORT IN THE NORDICS

6 OPERATING COSTS - A BENCHMARK (60 PEOPLE & 1,200 SQM OFFICE SPACE) 60 employees; 1 BU manager 3 R&D Team Leaders 6 Project Team Leaders 3 Senior Systems Development Managers 3 Senior Systems Designers 4 System Analysts 4 Technology Engineering Specialists 4 Senior Software Development Engineers 8 Software Development Engineers 4 Senior Programmers 20 programmers. All costs shown in USD Source: fdi Benchmark from the Financial Times Ltd 2017

7 COMPETITIVE CORPORATE TAX RATE * Corporate tax rate 22 percent, the effective tax rate is even lower No regional or local corporate tax rate Interests fully deductible for tax purposes Tax allocation reserves No thin-capitalization rules No withholding taxes on interests No stamp tax or capital duties on share capital *Germany s corporate tax varies between 30 33% depending on the location R&D discount, directly lowers the total labor cost with appr. 7.7% Tax relief scheme for foreign key employees Source: Deloitte Corporate tax rates 2017

8 OVERVIEW OF SELECTED IT- COMPETENCIES IN SKÅNE LINUX KERNEL DEVELOPMENT POWER, CLOCK & THERMAL MODERN AND CONNECTIVITY SW OS INTEGRATORS DISPLAY, AUDIO SW 2D/3D GRAPHICS SW HW/SW INTERACTION EMBEDDED SW EXPERTISE SW INTEGRATION USER INTERACTION & EXPERIENCE OPEN SOURCE EXPERIENCE IN MANAGING MULTIPLE HW PLATFORMS AND OS VERSIONS IN PARALLEL

9 THE STAGE IS SET MINC.SE (MALMÖ) THEGROUND.SE (MALMÖ) a hub for creatives, nerds and digital producers the hotspot for entrepreneurs in Southern Sweden IDEON.SE (LUND) Science park with a diverse set of competencies within e.g. connectivity, ICT and smart materials an innovation platform for development of sustainable and attractive cities FUTUREBYLUND.SE (LUND)

10 REFERENCE CASE 1(3) LARGEST SUPPLIER TO THE AUTOMOTIVE INDUSTRY IN THE WORLD ESTABLISHED A SOFTWARE DEVELOPMENT CENTER IN DIFFERENT DIVISIONS OF BOSCH CAME TOGETHER AND MADE THIS INVESTMENT JOINTLY AIM OF BEING 30 EMPLOYEES BUT ALREADY APPROACHING 100 WITH PLAN FOR 150 MAKING USE OF THE MOBILE SOFTWARE AND CLOUD COMPETENCE FROM SONY MOBILE

11 Lund was not chosen by chance Dr. Dirk Hoheisel, a member of the board of management of Robert Bosch GmbH. Sweden is on the global vanguard when it comes to fields of research including information and communications technology. This is exactly the kind of environment we want for our new engineering center, Lund is also the birthplace of several major technological advancements for the connected world, including Bluetooth technology and biometric fingerprint scanners See more here

12 REFERENCE CASE 2(3) ESTABLISHED A SOFTWARE DEVELOPMENT CENTER IN PEOPLE FOCUS ON LINUX KERNEL DEVELOPMENT MAKING USE OF EXPERTISE FROM INTEL AND ERICSSON

13 REFERENCE CASE 3(3) THIRD LARGEST SUPPLIER TO THE AUTOMOTIVE INDUSTRY IN THE WORLD ESTABLISHED A SOFTWARE DEVELOPMENT CENTER IN THE FALL OF 2016 FOCUS ON AUTOMATED DRIVING, ELECTRIC MOBILITY, DIGITALIZATION, INFOTAINMENT STARTING WITH 40 EMPLOYEES MAKING USE OF THE MOBILE SOFTWARE COMPETENCE FROM SONY MOBILE AND OTHERS

14 TECH SHOWCASE USING CROWDSOURCED PHOTOS TO CREATE AN OPEN AND MORE INTELLIGENT VERSION OF GOOGLE S STREET VIEW FOCUSING ON ADAS SOLUTIONS RECENTLY RELEASED 25K STREET-LEVEL IMAGES TO TRAIN AUTOMOTIVE AI SYSTEMS SIGNIFICANT INVESTMENT FROM ATOMICO, SEQUIOA AND OTHERS TECHNOLOGY PIONEER 2016 BY WORLD ECONOMIC FORUM

15 TECH SHOWCASE DEVELOPING DEDICATED SHORT RANGE COMMUNICATION (DSRC) BASED VEHICLE-TO-VEHICLE (V2V) COMMUNICATIONS SYSTEM TERRANET IS A QUALIFIED DESIGN HOUSE FOR QUALCOMM, FOCUSING ON WI-FI AWARE

16 TECH PARTNER YOUR INNOVATION PARTNER OFFERS WORLD CLASS COMPETENCE FOR DESIGNING AND DEVELOPING COMMUNICATION ENABLED DEVICES. THE TECHNOLOGY CAN BE USED TO TRANSFORM FUNCTIONALITY, SERVICES, AND BUSINESS MODELS IN ANYTHING UNIQUE INDEPENDENT LAB, COMARABLE ONLY TO WHAT YOU NORMALLY FIND IN- HOUSE AT MOBILE PHONE MANUFACTURERS AND THE LIKES

17 DIGITAL DESIGN DIGITAL DESIGN STUDIOS WORKING WITH AUTOMOTIVE COMPANIES SUCH AS BMW, JAGUAR LANDROVER, FORD, SAAB & OTHERS FOCUS ON RAPID PROTOTYPING, UX IN THE MOBILITY SPACE ETC.

18 WE ARE HERE TO HELPfree of charge CHRISTER MÅRTENSSON INVESTMENT ADVISOR DIGITAL TRANSFORMATION