This document discusses eBikes and the eBike market. It provides information about Currie Technologies, the largest eBike company in the US, including that it was founded in 1997 and is now owned by Accell Group, the largest bicycle company in Europe. It also discusses eBike technology trends driving growth, the large and growing European eBike market, targeting aging baby boomers and urban dwellers as key customer segments, and the need for more cycling infrastructure and to address objections to traditional cycling to further increase eBike participation.

1. eBike Update
Drive Oregon-April 16, 2014

2. Agenda
• Company
• Market
• Technology
• Customer

3. Demographic
Trends
Re-
Urbanization
Changing
Personal
Mobility
Advanced
Product
Technology
Huge Growth Potential
Why is now the time?

4. • Founded 1997 by Dr. Malcolm R. Currie,
– Chairman Emeritus Hughes Aircraft
• Sold in the mass and specialty markets
– Now focused exclusively on specialty
• Sells both eBikes and E-Scooters
• Largest E-Bike company in the U.S. market
• Approximately 42 employees
• Purchased in January 2012 by Accell Group NV
Company-Profile

5. Ownership-Accell Group NV
• Largest Bicycle Company in Europe
• Largest eBike company in western world
• 4th largest Bicycle Company in North America
• Brands include:
• Haibike
• Lapierre
• Redline
• Raleigh
• Diamond Back
• Hercules
• Ghost
• Winora
• Sparta
• Koga

6. Brand Story
• IZIP
– IZIP™ is Currie Technologies® premium line of electric
bikes. Complete range of eBikes for varied uses.
• eFlow
– Top-of-the-line technology, ride, and performance in an
ultra cool package. The E-Bike for the Urban bike
enthusiast.
• Haibike
- German Engineered, Top-of-the-line performance, Bosch
Center Drive, truly off road worthy.

7. Company Capabilities
• US Market leader - More than 16 years exclusive experience
• Advanced internal technical resources for development & support
• eBike Testing & development: Industrial design, mechanical and electrical
engineering
• eBike drive systems software coding and development
• After sale service – Dealer tech support and service center, spare part distribution
• Lithium battery testing, repair and after sale service
• Extensive quality control
• Retail consumer experience center
• Accell North America Support
• eBike Competence Center
• eBike Service Center

8. Company Capabilities
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Accell!North!America!Announces!Formation!of!Electric!Bike!
Competence!and!Service!Center!
FACT%SHEET%
!
ABOUT THE Electric Bike Competence and Service Center North America (EBCC-NA)
EBCC$NA'is'a'truly'unique'resource'that'leverages'Currie'Tech’s'16'years'of'proven'experience'within'the'
U.S.'electric'bike'(eBike)'space'with'the'leadership'of'global'eBike'powerhouse'Accell'Group'(AG),'
combined'to'benefit'AG’s'North'American'arm,'Accell'North'America'(ANA).!Currie'Tech’s'experience'will'
provide'ANA'brands'and'customers'a'true'marketplace'advantage'in'obtaining'success'in'the'fast$growing'
eBike'market.'Resources'provided'include:'
• R&D!Center:'Assuring'safe'and'reliable'leading$edge'technologies'that'have'been'thoroughly'
vetted,'while'maintaining'the'highest'levels'of'performance'and'satisfying'ride$ability.'
• Industrial!design,!mechanical!and!electrical!engineering!capabilities:'Assuring'optimum'
integration'of'electronic'systems'into'a'range'of'function$specific'electric'bicycles'that'are'
uniquely'built'to'perform'to'the'pinnacle'of'U.S.'and'Canadian'standards'for'electric'assist'
bicycles.'
• Drive!systems!software!coding!and!development!capabilities:'Creating'the'“magic$carpet”'ride'
feel'through'proprietary'system'firmware'development.''
• Dealer!Technical!Support!and!Service!Center:'Vast'on$line'technical'resources,'a'highly'trained'
call'center'and'operation'specialists'will'provide'North'America'ANA'customers'with'the'highest'
level'of'support'to'assure'speedy'diagnosis'and'issue'resolution.'
• Spare!Part!Distribution!Center:'Supporting'the'product'in'the'market'with'speed'and'efficiency'
to'assure'replacements'as'needed.'
• Lithium!Battery!Pack!Support!and!Service:'Capabilities'include'testing,'repair'and'after'sale'
service'assuring'safety'and'long'life.'
Technology supplier for additional
Accell North America Brands
• Systems integration
• Technical Support
• Customer service
• Marketing coordination

9. We are the Complete eBike Solution
• Widest Range of Products and Price Points
• Merchandising Support
• Comprehensive Marketing Support
• National Print Advertising
• Public Relations / National Media
• Social Media
• National Road Show – Demo Sell Through Events
• Field Sales and Tech Training
What we do

10. US Market Overview – Current Status
• Where are they being sold today?
• eIBD’s, Online, and some small qty of IBD
• What is the market size?
• Pike Research and EBWR report 65-90,000 in
2012
• Currie Tech believes market is 80,000 units (+/-)
in 2013
• $90,000,000 business in the US today
• Retail ASP <$1600 (‘12) - >$2500+ (’13
YTD)
• Currie Tech – 2013 – Dealer sales up 46%
• Currie Tech YTD-up 286%
The Market
European (EU 27) Market Status (2013)
• Total Market
• >1MM Units in 2013
• Value at $2.5B USD
• ASP (dealer channel) $2,540 USD
• Germany became largest market in 2012
(Surpassing Holland)
• Germany >400K units (2013)
• Higher ASP’s ~ €2000
• Fastest growth rate at ~15% per year
• Last 3 years – New younger
consumers enter market due to
improved technology and product
innovation
• Aging Boomers with discretionary
income
• Distribution has shifted from eIBD to IBD as
category has gone mainstream.

11. European Market Development
• eBikes began in mid ‘90’s with underwhelming products
• In Holland, Accell Group’s Sparta brand took the category
mainstream in 2004 - 2005 with the innovative Sparta ION
How it Started

12. Game Changers
In the beginning, they can difficult to see….

13. Unless you are totally tuned in

14. Please allow us to enlighten you…

15. What technologies are driving the growth?
• Battery and BMS technologies
• 18650 Cylindrical cells
• 3.2 Volts per cell currently
• Was 2.5 2 years ago
• Testing 3.6 currently
• Tesla uses 7000/vehicle
• Center drive motors
• Better due to weight, torque, efficiency, power use
• Been around forever
• Bosch Entered in 2010-Performance
• 50% Market share in EU
• Now others entering
• Yamaha, Shimano, and Asian Manufacturers
Emerging Technology

16. The Mainstreaming of the e-Vehicle
Emerging Technology

17. What do we need to do to bring more participation?
Retooling our bicycles for Aging Baby Boomers
Boomers are seeking the aura of
the outdoor cycling experience
without the arduous exertion and
discomfort.
eBikes are a perfect fit!
• They are willing and able to spend the
money -- they just want to have
some fun.
• The by-product is often neighborhood
trips to the post office, bank and
grocery store, but transportation is NOT
the primary intent for most boomers.
• Motorized, but no red-tape: No
licensing, insurance, tags, etc.
Customers

18. What does the future look like?
Aging Demographics
•In the United States, the baby
boom generation represents 76
million people.
•On January 1, 2011, as the baby
boomers begin to celebrate their
65th birthdays, 10,000 people will
turn 65 every day—this will
continue for 20 years.
•By 2030 in the United States, about
one in five persons will be over
65.
Customers

19. What do we need to do to bring more participation?
Changing the Urban Mobility Paradigm
Bicycles, Ebikes and other two-wheel electric
vehicles answer the call
•We must continue to do the great work we have been
doing on cycling advocacy and infrastructure but we
need much more then to simply provide safe places
to ride bikes.
•Counter objections (inner human resistance) to bike
riding:
Too many hills, too uncomfortable, too far, too slow, too
much work, too sweaty, too tired, too lazy, too many
injuries, too old, too lazy, and yes, too dangerous.
•Start using electric bikes to directly answer these
objections In Europe – eBikes have literally become the
bike industries shining star!
• Yes, there exists a more cycling centric culture,
BUT the majority of eBike sales are coming from
new customers to the bike shops, people that
have “rediscovered” the joy of cycling.
Customers

20. Primary Customer Trends
Demographic-Aging Baby Boomers
• Just want to have fun
• Recreation
• Activity
Psychographic-Urban Dwellers
• Financial
• Efficiency
• Often-Millennial
• The most exciting trend for the bike industry
Customers

21. What do we need to do to bring more participation?
Get some of the “Used to be fun, now it hurts” group riding by using an eBike
to overcome their objections for reason of topography and inability.
Counter the negative consumer
perceptions about bike riding
•I’ll get way too sweaty. Yuck.
•I’m just not physically able to ride a bike.
•You need to be an athlete to ride a bike.
•I can’t ride up these hills, or ride that distance.
This is what is happening in Europe
today!
•Biggest Growth Category
•Higher Average sale price
•Higher “Lifetime Value of Customer”
•Less Competition
Customers

22. Product
• The widest range of products and price points from complementary
brands ensuring the perfect eBike for every rider

23. One opinion
To grow cycling participation we need our cities and
towns to become more bike-friendly and to achieve
that, we need to get more Americans on bicycles,
and any bicycle will do
eBikes are part of the solution!
More people on bikes = fewer people in cars
More people on bikes = more advocates for cycling

24. Thank you!