US e Bike Market Trends 1 e Bike

US e. Bike Market Trends 1 e. Bike Market Trends Jonathan Weinert, Sales and Marketing Manager, Bosch e. Bike Systems, Americas Dec 3 rd, 2015 – e. Bike Summit Automotive Electronics 1 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends Introduction to Bosch Starting with Robert Bosch 129 years ago, our mission has always been to create products “Invented for life. ” Automotive Electronics 2 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends Pedal-assist e. Bike Market in Europe Sales in thsd. pcs CAGR 14 -22 +16% Pedal-assist e. Bikes enjoy tremendous success in Europe. Automotive Electronics 3 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends End Consumer Online Survey Respondents US nationwide Distributed via IBDs and e. IBDs Sept-Oct 2015 „Enter for the chance to win an e. Bike“ Gender F M Bike owner: 64 323 e. Bike owner: 64 299 Non Bicycle owner 18 38 Total per gender 146 660 Total 806 Survey covers the who, what, where, when, why, and how of e. Bike end-consumers Automotive Electronics 4 Internal | AE-EB/RBU-AM_KM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends Who Rides? Age distribution of survey participants (e. Bike owners only) 59% 120 Number of participants What are the most important reason(s) you 3% ride your e. Bike? Other 100 To save time 80 60 101 To save money 114 40 To save the environment 52 20 1 1 4 13 19 U nd er 18 18 to 24 23 to 31 30 to 35 34 to 40 39 to 45 44 to 50 49 to 60 59 to O 69 ve r 6 9 0 23 32 To get from one place to another For fun 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 8% 11% 13% 15% 25% "Baby boomers" (50 to 69) e. Bike owner “Baby Boomers” are the strongest e. Bike consumer group. They ride for better health, fun and to get from A to B. Automotive Electronics 5 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends Who Rides? In what range does your annual household income fall: Number of people in household, including you: Mainly couples 49% 60% 40% 20% 0% 18% 16% 14% 13% 14% 15% 14% 3 4 5% 11%11% 10% 12% 10% 2 5 or more What is the highest level of education you have completed? 32% 26% . . e. . va el ch Ba nc or . . . C So m ad e Tr e /T h. Sc ig h H 4% 4% 2% e. Bike owners in general are well-educated, mainly couples, with wide income range. Automotive Electronics 6 6% 5% 5% 2% 2% 0% . . . a. . . th s Le s 30% 6% 5% 1% 6% Ad 40% 30% 20% 10% 0% 8% Be l $2 ow 0 k $2 $4 to 0 k 1 k $4 $6 to 0 k 1 $ $8 k t 60 1 o k $1 k t $8 01 o $ 0 k $1 k t 10 21 o $ 0 k $1 k t 12 41 o $ 0 k $1 k t 14 61 o $ 0 k $1 k t 16 81 o $ 0 k k 18 Ab to $ 0 k ov 20 e 0 k $2 00 k 1 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends How do they use their e. Bike? Which of the following best describes how you use your e. Bike? (Select all that apply) 40% 34% 35% 30% 25% 20% 18% 20% 15% 9% 10% 9% 7% 3% 5% 1% er tio n O th . . . e. (i. ki s/ od te d C tra ar ns ry po in g rta go ai nt ou l/M ai Tr la m re y W or k ar Pr im ds ng ki n ar ng tti ge of ns ea bi ou n. ar s nd rra le ra ne ge ng ni un R ou ho sc k, or w e. (i. g in ut m om C nd ) ol se ci ex er d an n io at re ec rr Fo . . 0% They use it most often for recreation, exercise, and commuting. Automotive Electronics 7 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends Automotive Electronics 8 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends How often do they ride? During the time(s) of year you ride your e. Bike, how often do you ride? 50% Avg. frequency: Bike 1 day per week 40% 27% 30% 40% 0% 16% 3% 36% 24% 20% 10% Avg. frequency: e. Bike 3. 5 days per week 13% 14% 7% 8% 7% 1% Less than About Once a About 2 -3 Almost Daily Once a Month Times a Month Week Times a Week or Everyday e. Bike owner Source: Sept 2015 Bosch online survey of bicycle and e. Bike owners. e. Bike (n=363) vs. Bike(n=387) e. Bike owners ride more often than regular bicyclists. Automotive Electronics 9 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends How often do they ride? All Trips 70 60 % 50 40 30 20 10 0 <1 day/month 1 -3 days/week 4 -7 days/week Bicycle e. Bike Source: Mac. Arthur (2015) Final Report (Forthcoming): Kaiser E-bike Pilot Project Bicyclists ride more often after conversion to e. Bike Automotive Electronics 10 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.

US e. Bike Market Trends Special thanks to: The Light Electric Vehicle Education and Research (LEVER) Initiative, founded in 2014, by University of Tennessee – Knoxville and Portland State University. LEVER is a consortium of academia, industry, government and non-government organizations aimed to address collective research needs surrounding a new class of vehicles, lightweight and low speed electric vehicles, of which e-bikes are the most important sub-class. Four research thrust areas: 1) sustainability and safety impacts 2) behavior and market 3) physical activity and health and 4) opportunities for sustainable urban freight. The LEVER Initiative is a catalyst for more strategic research in these areas, and this proposal is motivated by its activities. http: //tesp. engr. utk. edu/lever. php Automotive Electronics 11 Internal | AE-EB/RBU-AM | 12/03/2015 | © 2015 Robert Bosch LLC and affiliates. All rights reserved.