TeleNav 2015 Annual Report Download - page 9

Table of Contents
Automobile manufacturers procure the various elements of each car that they manufacture from a number of suppliers directly and through
OEMs. We work directly with automobile manufacturers such as Ford, GM and Toyota, as well as through OEMs, such as Delphi Automotive
Systems LLC, or Delphi. Our strong track record as a connected and personalized navigation services provider to mobile phones and our history
of working with large wireless carriers have provided us with skills and technology that are well suited to meet the demands faced by today's
automobile manufacturers. The sales cycle related to automobile manufacturers is long and consultative and requires direct and continuous
management of the automobile manufacturer and OEM providers to succeed in securing business. Often the automobile manufacturer uses the
sales process to help it to define the ultimate product that it chooses to deliver to its end users in a way that not only enhances customer
experience but also allows the automobile manufacturer to differentiate itself from the competition. Our success with brought-in and on-board
navigation at Ford and GM, and the continuing shift in emphasis to connected services has demonstrated the strength of our offerings to other
automobile manufacturers and OEMs. It is our ability to bring innovative in-car user experiences that are optimized for the driving experience
that sets us apart from other providers of phone based offerings, such as Apple's CarPlay and Google's auto initiatives, including Open
Automotive Alliance.
Our automotive services and products
We entered the automotive navigation services business in fiscal 2008, initially with Ford, and our first brought-in navigation product was
launched in Ford's 2010 model year vehicles. Since that time we have been working with automobile manufacturers and OEMs to provide our
mobile navigation services and products worldwide through on-board and brought-in systems. Our technology powers automotive navigation
services and products that provide accurate, easy to use and connected navigation services to drivers at a low cost. We currently provide our on-
board GPS navigation software for Ford's second and third generation SYNC™ system under an agreement with Ford that expires in December
2017. This product is enhanced by Ford with the delivery of real-time traffic and historical information to help drivers search, find and drive to
places more reliably and efficiently. In January 2014, we announced that we entered into a contract with GM to provide worldwide embedded
and connected navigation services beginning with select model year 2017 vehicles. The agreement covers an initial three-year production cycle,
which we expect to commence with select model year 2017 vehicles. Our relationship with GM also includes brought-
in services for vehicles. In
January 2015, GM launched the new version of its OnStar RemoteLink® mobile application powered by our location-based services platform,
which includes mapping and one-box search. Under the terms of the GM agreement, we expect our embedded and connected services to support
navigation in more than 100 countries. In July 2015, we and Toyota announced a partnership for brought-in navigation services where our Scout
GPS Link will be available first in the model year 2016 Toyota Tacoma, and subsequently in other Entune™ Audio Plus equipped model year
2016 Toyota vehicles in the United States. In addition, we work with Delphi on white label versions of our on-board automotive platform for
three vehicles in North America. In January 2015, Delphi launched our product in China with Great Wall Motors, a major Chinese automobile
manufacturer.
Our services and products allow our automobile manufacturers and OEMs the flexibility to use the full range of technologies to deliver on-
board or brought-in services, as well as to enhance our on-board navigation services with live data such as traffic, fuel prices, fresh maps and
POIs for enhanced user experiences by drivers. In addition, as the market transitions to cars that are “always connected,” we expect our service
offerings to become more personalized.
Platform and architecture
Our offerings for on-board or brought-in automotive navigation services are tailored to meet the requirements of the automobile
manufacturers and OEMs while leveraging our expertise with respect to client design and functionality. Our automotive navigation products also
offer the capability to connect to our auto and mobile navigation platform for updated data and services. We have created an automotive
reference product, or ARP, which allows us to show manufacturers and OEMs our entire product portfolio. The ARP incorporates our auto and
mobile navigation platform capabilities as well as connected services. Auto manufacturers or OEMs may then elect to configure the ARP to meet
their needs as an on-board system or an on-board system with connectivity to live data services. In addition, we have designed custom versions
of our navigation products to be exclusively cloud-based solutions for those manufacturers or OEMs seeking connected solution only services.
Advertising Network Services
Industry background
The convergence of several factors is fundamentally changing the way mobile users consume content on their mobile devices and has
created a significant opportunity for mobile advertising. It has become possible to deliver innovative, interactive and engaging consumer media
experiences on a wide variety of mobile devices. Consumers are increasingly using their mobile devices instead of their personal computers and
other traditional media to access content, particularly while they
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