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PUBLIC INTERNAL CONFIDENTIAL SECRET

MOBILITY RESEARCH CENTER

& VEHICLE PROVING GROUNDS

DEVELOPMENT STUDY


Development Study – After Completion

> August 2019

- Analyze / Digest Deliverables- TnECD Review

- Develop Governance - Ownership Model / Partnerships

> September / October / Nov / Dec 2019

- Governor / Lt Gov / Legislative Leadership Review- TDOT Review

> January / May 2020- Legislative Review Process

> July 2020

- Funding Available- Bid Pack Development etc


Scope of Works

1. Market Study

• 1.1 Benchmarking

• 1.2 Location Analysis

• 1.3 Test Requirements in USA

• 1.4 Market Research (Identify potential users)

2. Design

• 2.1 Master Plans

• 2.2 Concept Design (partially done)

2. Design

• 2.2 Concept Design

3. Financial Analysis

• 3.1 Cost Estimations

• 3.2 Business Plan

• 3.3 Economic Impact in the region

4. Business models

5. Risk Analysis

6. Implementation Plan

Done Done


Project Activities – Proving Grounds Benchmarking

IDIADA is BoD member of International Committee for Proving

Ground Safety (ICPGS) based in US.

Direct Access to PGs in US ( Facilities status & condition / users )


Project Activities – Proving Grounds Benchmarking

Continent Company Country/Estate Owner Type

AMERICA

Transportation Research Center TRC USA, OHIO Honda MULTI-USER

Nevada Automotive Test Centre USA, NEVADA MULTI-USER

FT Techno of America USA, MICHIGAN FT Techno, Toyota MULTI-USER

PMG CANADA PMG Technologies MULTI-USER

Aberdeen Proving Ground USA, MAINE Public MULT-USER

Larson Transportation Institute

USA, PENNSYLVANIA

Larson Transportation

Institute MULTI-USER

Keweenaw Research Center USA, Michigan Michigan Tech MULTI-USER

Michigan Technical Resource Park USA, Michigan

Smith Winter Test USA, Michigan Smithers Rapra COMPONENT

Dearborn Development Center USA, Michigan Ford VEHICLE MANUFACTURER

Ford Proving Ground Romeo USA, Michigan Ford VEHICLE MANUFACTURER

Florida Evaluation Center USA, Florida Ford VEHICLE MANUFACTURER

Navistar PG USA, Indiana Navistar VEHICLE MANUFACTURER

TAPG USA, Arizona Toyota VEHICLE MANUFACTURER

GM MESA USA, Arizona GM closed

VW Arizona PG USA, Arizona VW VEHICLE MANUFACTURER

Ford Arizona PG USA, Arizona Ford VEHICLE MANUFACTURER

GM Mildford USA, Michigan GM VEHICLE MANUFACTURER

GM Yuma USA, Arizona GM VEHICLE MANUFACTURER

Chrysler Chelsea USA, Michigan FCA VEHICLE MANUFACTURER

Nissan Arizona USA, Arizona Nissan VEHICLE MANUFACTURER

Honda PG Center of California USA, California Honda America VEHICLE MANUFACTURER

Chrysler Yucca USA, Arizona FCA VEHICLE MANUFACTURER

Hyundai California PG USA, California Hyundai VEHICLE MANUFACTURER

Continental Uvalde USA, Texas Continental COMPONENT

Brimley Continental Center USA, Michigan Continental COMPONENT

Bosch Flat Rock USA, Michigan Bosch COMPONENT

Goodyear PG San Angelo USA, Texas Goodyear COMPONENT

Goodyear PG Akron USA, Ohio Goodyear COMPONENT

Bridgetone/Firestone PG USA, Texas Bridgestone COMPONENT

Eaton PG USA, Michigan Eaton COMPONENT

Michelin Laurens PG USA, South

Caroline Michelin COMPONENT


Project Activities – Market Research

Customer Discovery

Meetings / Interviews / Questionaires

IDIADA Customers

OEMs, Tier Suppliers & Stakeholders

Over 100 Entities ( w/NDA )

SAE Congress 2019 ( April ) in Detroit

TennSMART 2019 ( April ) in Nashville


Project Activities - Concept Design

Customer Discovery … Facilities Required

T1. HIGHWAY / HIGH SPEED OVAL

T2. EXTERNALNOISE TESTTRACKT3. DYNAMIC PLATFORMT4. BRAKING TRACK

T5. DRY HANDLING TRACKT6. WET HANDLING TRACK

T7. WET SKID PADT8. FATIGUE AND DURABILITYTRACKT9. CAV PERFORMANCE TRACK

T10. CAV PLATFORMT11. CAV URBAN AREA

T12. TEST HILLST13. FOREST TRACKT14. PERFORMANCE DOWNTRACK

F1. WELCOME CENTER

F2. PARKING AREAF3. MAIN BUILDINGF4. CONTROLTOWER / CENTER

F5. WORKSHOPS/ GARAGESF6. FUELING STATION

F7. MAINTENANCE SERVICESF8. TECHNO PARK ( LABS, OFFICES )F9. LOGISTICS / RECEIVING

11. ACCESS ROAD

12. BELTWAYROAD


Project Activities – Site Analysis

(8) Site Options Analysed

(6) Site Visits ( April 2019 )

Data Collection of existing

infrastructure, facilities,

utilities, enviromental,

constraints, soil and

topograghy conditions .



LOCATION

Dimensions & Shape

Land Aquisition ….. Timing & Cost

Land Topography

Utilities & Communications / Access / Environmental

Optimization / Rearrangement of Existing Facilities


Conclusions

Market Reseach – Site Analysis:

Most Suitable sites :

Lawrenceburg North Loop

Main Strength: Site Dimensions and Shape,

To be considered: Utilities / 5G / Road Access

Arnold Air Force Base – UT Space Institute - Tullahoma

Main Strength: Proximity to Nashville / Interstate 24 / GIG City

Culture of Academics, Testing, Evaluation & Certification

To be considered: Land Transfer / Extended Use Lease / Road Access


Project Activities - Concept Design- Master Plan

1. Lawrenceburg North Loop


Project Activities - Concept Design - Master Plan

4. UT Space Institute - Tullahoma


Conclusions

Based on Customer Discovery …

Market Reseach – Threats and Risks

Other PG initiatives progress ( California, Indiana, etc ) ….

Existing PGs remodelled both physically and management structure

The 10 designated sites from US DOT Grant could present develop projects

The TN RC&PG Project REQUIRES ‘Quick to Market’ implementation

‘ If TN does not …. Someone else will ‘


Conclusions

Market Reseach – Strengths and Opportunities:

Many Proving Grounds in the USA, but Private / Government

TRC (Ohio), NHTSA base, is considered one of the most independent …

but currently has major maintenance issues.

NO Comprehensive, State of the Art & Independent PG facilities in the US.

Important OEM without PG has immediate need for “something similar to

IDIADA in the USA” .


Conclusions


TN Weather is FAVORABLE for Year Round Operation

Nashville is considered ‘COOL’ for Business Travel

Tire Testing and CAV State-of-the-Art Facilities

MOST Requested & Required NOW

CAV REQUIRES New Testing Protocols / Facilities


Conclusions


Academic Leadership is an ABSOLUTE Requirement

Time Difference allows continued work day

Tire Manufacturing Industry Location

Domestic, Asian & European OEMs Location


Financial Analysis

Construction cost estimation: Lawrenceburg – North Loop


Financial Analysis

Construction cost estimation: UT Space Institute - Tullahoma


Financial Analysis - Conservative

➢ Operational Breakeven + 8 yrs

➢ Cashflow + 5 yrs

➢ EBITDA + 5 yrs

➢ DCF + 5 yrs

-$5.000.000

$0

$5.000.000

$10.000.000

$15.000.000

$20.000.000

$25.000.000

$30.000.000

$35.000.000

$40.000.000

$45.000.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

OPERATIONAL BREAK EVEN

EX`PENSES EBITDA

-$50.000.000

-$40.000.000

-$30.000.000

-$20.000.000

-$10.000.000

$0

$10.000.000

$20.000.000

$30.000.000

$40.000.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

CASH FLOW

-$1

-$1

-$1

-$1

-$1

$0

$0

$0

$0

$0

$1

$1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

EBITDA

-$45.000.000

-$40.000.000

-$35.000.000

-$30.000.000

-$25.000.000

-$20.000.000

-$15.000.000

-$10.000.000

-$5.000.000

$0

$5.000.000

$10.000.000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

DISCOUNTED CASH FLOW


Financial Analysis

Economic Impact :

Operating Expenditures

PURCHASES USD $

2010 2018

Purchases ALBORNAR HQ 7,479,657 27,897,412

External Services ALBORNAR HQ 14,781,419 40,393,941

Percentage in the the same county 39.8% 33%

Purchases acquired in the same county 3,363,901 9,206,146

External services acquired in the same county 6,647,796 13,330,000

Total budget within the same county 10,011,696 22,536,146

Sales tax purchases 9.50% 9.50%

Sales tax purchases 319,571 874,584

$68 Mill


Financial Analysis

Economic Impact :

Proving Ground – Hotel Nights

HOTEL NIGHTS DIRECT IMPACT

YEAR

HOTEL NIGHTS MANAGED BY

OPERATOR

EXPENSES $/DAY SALES TAX TN

TOTAL

AMOUNT/YEAR 110 9.5%

2005 25200 $ 2,772,000 $ 263,340 $ 3,035,340

2010 36700 $ 4,037,000 $ 383,515 $ 4,420,515

2015 53400 $ 5,874,000 $ 558,030 $ 6,432,030

2018 59000 $ 6,490,000 $ 616,550 $ 7,106,550

2019 Forecast = 64,000


Financial Analysis

Economic Impact :

Summary of Jobs

ESTIMATION SUMMARY JOBS YEAR

1 5 10 15 20 25

Proving Ground Operation 5 58 78 85 94 104

Construction works 200 25 25 25 25 25

PG Customer permanent teams 0 50 100 200 400 500

Engineering and testing 0 250 500 1000 2000 2500

External services 1 35 70 125 249 350

Indirects 21 42 77 144 277 348

TOTAL 226 460 850 1579 3045 3827


Implementation Planning - Timeline

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Feasibility study

Site selection

Secure funds

Geotechnical and topographical surveys

Engineering Project

Due diligence

Option Execution process

Land preparation

Construction phase 1

T1 Highway track

T2 External noise

T3 Dynamic platform

T4 Braking

T5 Dry handling

T6 Wet handling

T9 CAV Perfromance track

I12 Access road

WS Workshops

F1 Welcome Center

F2 Parking Area

F3 Main Building

F4 Control Tower

F6 Energy Station

F7 Maintenance Services

F8.1 Techno park offices

F8.2 Techno park warehouse

F10 Goods Reception & Logistics

F11 General Urbanization & Services


T10 CAV Platform

T13 Forest Track

T14 Performance down track

T8 Fatigue and durability track

I13 Belt road

WS Workshops




T11 CAV Urban area

T12 Test Hills

WS Workshops



F8.3 Techno park laboratory

Laboratories

Testing Equipment

New Services

4

2020 2021 2022 2023 2024

2

3

2 51 3 4

0

PHASE ID DESCRIPTION

1

0

2019


TO CONCLUDE :

✓ Checks ALL the Boxes

✓ RURAL Economic Development

✓ Workforce Development / Academic Growth

✓ Elevates the Tennessee Automotive / Intelligent Mobility Landscape


Thank you for your kind attention


Take Aways – Quick Summary – ‘Rural Economic Development’

Financial Ask - $167,500,00 over (10) Year Period

Project $125M/ Project Contingency $12.5M/ Years 5-10 $30M ( 6yr x $5M)

By Year 1-10 ( $44 / $44 / $33 / $17.5 / $5 / $5 / $5 / $5 / $5 / $5 )( $Millions )

Jobs Created

Yr 5 - 460 / Yr 10 – 850 / Yr 15 – 1579 / Yr 20 – 3045

Payroll

Yr 5 - $28M / Yr 10 - $64M / Yr 15 - $126M / Yr 20 - $260M

Average Annual Sales Tax - Regional Economic Impact

Goods / Services / Hotel Nights

Annual Avg Expenditure Amount $50M x .095 = $4,750,000 SalesTax Revenue

Financials

EBITDA + Yr5 / EBIT + Yr8 / Cash Flow + Yr5 / Disc Cash Flow + Yr5



Lawrence County

2. Airport South1. North Loop 3. West



5. Nashville Super Speedway4. UT Space Institute - Tullahoma 6. Rutherford County


Risk Analysis

THREATS

Competitors

Estimated Revenues

Making the Required Decisions

Talent Availability - Engineers

OPPORTUNITIES

Existing Infrastructures in TN

Fed/State/Local Government Support

Rapid Technological Changes

mobility research center & vehicle proving …...mobility research center & vehicle proving...

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