1. ESA UNCLASSIFIED For Official Use ARTES Applications An Overview of Commercial Opportunities BELSPO, Space Applications WS June 19th 2014, Brussels A. Ginati (Head of TIA-A Department) F. Feliciani (Head of TIA-APC Section) ESA-TIAA-HO-2014-0260 ESA UNCLASSIFIED For Official Use

2. ESA UNCLASSIFIED For Official Use Commercial products, services & applications drive the sustainability of our space industry SatComs = 50% of the number of satellites, 67% of the value of satellites (owing to high complexity) Source: SIA State of the Satellite Industry Report October 2013

3. ESA UNCLASSIFIED For Official Use The Three Value Chains in Commercial Satellite Applications Global Space Market Revenue in US$Bn 1. Sat communications are dominant with >75% of the downstream services revenue 2. Navigation is emerging 21% 3. EO is currently 2% Source: Euroconsult & GSA, 2010 + HSF

4. ESA UNCLASSIFIED For Official Use Service revenues are dominated by applications based on SatComs Source: SIA State of the Satellite Industry Report October 2013

5. ESA UNCLASSIFIED For Official Use Data source: Euroconsult Data source: Euroconsult 2009-2019: Revenues shifting downstream in the value chain Avanti, SES Astra Inmarsat, Eutelsat

6. ESA UNCLASSIFIED For Official Use Foster (new) utilization of existing space capacity and capability, in close partnership with users, through the development of integrated (different space and non space technologies) applications projects which demonstrate a potential for sustainable operational services. ARTES Applications Objective - Existing space infrastructure - Partnerships - Customers - Sustainable services - Attract Investors attention

7. ESA UNCLASSIFIED For Official Use ARTES Applications Elements providing a steady stream of opportunities 300 projects

8. ESA UNCLASSIFIED For Official Use Achievement examples (either operational, commercial or profitable) NAME DESCRIPTION SATForM Online platform combining space and ground assets for forest monitoring SATMODO Real-time monitoring of timber harvesting eLeaf Water management and crop monitoring DeSIRE Remotely piloted aircrafts for maritime surveillance Blue-Belt Ship tracking for European waters SatFinAfrica Financial services for remote African villages ISIDE Satellite-distributed digital cinema FlySafe * Tracking and forecast of bird movements to reduce bird strikes in aviation VECMAP Mapping disease-carrying mosquitos in Europe AMAZON Portable telemedicine units for diagnostic support in the field iHST Internet services for high speed trains Talkingfields Satellite technology supporting precision farming SASS@Sea Flexible satellite broadband for ships S2BAS Satnav support for small airports INTOGENER Water flow monitoring and prediction Planet2 Meteo. services for general aviation * Inkef Capital (ABP) and MIF (KLM, Schiphol Airport a.o.) became shareholders by providing significant funds to support international roll-out and ambitious Innovation Agenda

9. ESA UNCLASSIFIED For Official Use GAF (1997-2004): 360 collisions strikes/year FAF (1998-2005): 320 collisions strikes/year RAF(6 h) due to medical reasons Each day 1- 1.5 planes are landing in emergency conditions for medical reasons the statistic data on these landings showed that 45% can be avoided if a single electrocardiogram could be transmitted from the plane to an emergency medical department in an hospital; The cost of such re-routings is about 80K. Increase flights duration, A380, 15 hours non stop Increase number of passengers will increase with the new capacities of the planes AMAZON, Management of Medical Emergency for commercial aviation => the issues

12. ESA UNCLASSIFIED For Official Use Deployed and operated by airlines (Virgin Atlantic, bmi, Etihad, Emirates, Virgin Australia), commercial shipping companies, luxury yachts and military health services CE marked and cleared to market by US FDA AMAZON, Management of Medical Emergency for commercial aviation => the service

13. ESA UNCLASSIFIED For Official Use Express Union remote branch in Cameroon EMI Money remote branch in Cameroon SatFinAfrica Money Transfer Service

14. ESA UNCLASSIFIED For Official Use Market roll-out for TF Base Map and TF Zone Map already achieved during demonstration phase. More than 45 000 ha service area for TF Base Map and TF Zone Map already processed. Many of the TF customers are already paying. Orders have been processed from 8 countries (Germany, Russia, Denmark, Czech Republic, Poland, Latvia, Hungary and Kazakhstan). Strong market position in Germany due to PC Agrar customer base and combined offer with soil probing service of PC Agrar. Return of Investment expected 4 years after demo phase. Talking Fields Strength of the Business Case & Commercial Success

15. ESA UNCLASSIFIED For Official Use Profitable 15 9% Commercial 44 27% Operational 29 18% Seed 30 19% No Follow-on 44 27% Qualifier Definition 5 Profitable Led to a business that has reached break-even point 4 Commercial A commercial offer generating revenues has been put in place 3 Operational Operations continue after the end of the ESA contract 2 Seed Have generated other pilot projects inside or outside ESA 1 No Follow-up No Follow-up after the conclusion of the contract 162 projects assessed, 93 projects (57%) from SMEs ARTES Applications Evaluation of projects success in the marketplace

16. ESA UNCLASSIFIED For Official Use ESA Project Execution Time 5 KPIs and timing for measure 1. Customer willingness to pay (evidence via formal written statement in the proposal) 2. Product/Service quality: technical aspect of the product/service, working as expected (measured via monitoring of technical status) 3. User acceptance: users were actually using the product/service during the pilot (measured via utilisation profile) 4. Stakeholders confirmed their needs were satisfied during the pilot (measured via feedback) 5. Products/services have generated revenues before end of the pilot stage (measured via sales) Proposal Development/Integration Pilot Service Evaluation 54321

17. ESA UNCLASSIFIED For Official Use Applications Broker in Belgium (BELSPO )

18. ESA UNCLASSIFIED For Official Use Applications Broker in Belgium (BELSPO ) Spread and increase awareness of Space Applications to Users to federate User demand (generate critical mass). Local Presence and Domain expertise. Act as an honest broker between ESA, industry and user community. Motivate stakeholders to submit viable proposals. Organize and run workshops (with ESA support). Role

19. ESA UNCLASSIFIED For Official UseSources: Law Offices of Countryman & McDaniel/CargoLaw.com, International Salvage Union, 2003 European Satellite AIS Mission Users Driven in partnership with EMSA

20. ESA UNCLASSIFIED For Official Use Applications & Services Maritime Security : support of security operation, Law enforcement services: anti- piracy, illegal fishing, Search and Rescue (SAR) Maritime surveillance services: monitoring of vessel in sensitive areas Environmental services: pollution response Maritime Safety services: vessel traffic management, Fleet management services for commercial users: for shipping companies

21. ESA UNCLASSIFIED For Official Use Cocaine Trafficking M/V Winner, Bolivian flag Interception by French warships Loading point COURTESY OF EUROPOL

22. 30/06/2014 22 FEMIP Facility for Euro Mediterranean Investment and Partnership through which the European Investment Bank supports the economic development in the Mediterranean partner countries

23. ESA UNCLASSIFIED For Official Use SMAP

24. ESA UNCLASSIFIED For Official UseESA UNCLASSIFIED For Official Use Annual ARTES Applications Workshops The 1st WS in ESTEC in 2011 The 2nd (2012) hosted by UKSA/TSB in Harwell The 3rd Workshop (2013) with ASI at CASD in Rome, More than 250 attended The 4th Annual ARTES Applications & Services Workshop is hosted by Luxinnovation. Among other elements of the programme, a session dedicated to financing, matching and partnership and dedicated session with EIB for Space 4 Med with Guests from the Med region are attending during this Event. The 5th Annual Workshop will be hosted by SSO in Switzerland (Feb 2015) Lift 4 Space

25. ESA UNCLASSIFIED For Official Use 4th Annual Apps WS, April 29/30 Luxembourg Did the workshop meet your expectations? Yes 54 Partly 2 No 0

26. ESA UNCLASSIFIED For Official Use Concept Development Feasibility Study Demonstration Project Seed Capital Start-up Capital Development Capital Company Creation Service Incubation Investment & rollout readiness Funding Stream (ESA up to Demo) Business Support Stream Funding/ Resource Cliff No ongoing support for Project/companies! New ways of supporting project/companies! 26 We need to increase support for SMEs at all stages in the process

27. ESA UNCLASSIFIED For Official Use TTP Brokers ESA BICs ARTES AP Network Horizon 2020, national programmes and ESA directorates activities are coordinated through intensive collaboration with DG-ENTR, ESA Inter- directorate Application Group and national/regional entities contacts Pilot Cases: - Portugal - Belgium - Switzerland - UK ESA Space Solutions Convergence Towards One ESA Innovation Funds

28. ESA UNCLASSIFIED For Official Use ESA Investment Readiness Programme (IRP) and the ARTES Applications programmes 1. The ESA Investment Readiness Programme helps companies to make successful pitches to potential investors. 2. IRP training courses lead to the ESA Investment Forum (this year in Toulouse on 2/7/14 to coincide with the Space Show). 3. One course took place during the ARTES Applications Workshop, with ARTES companies also joining a training webinar in June. 4. Topics included What investors want, Top ten mistakes to avoid, How to improve your pitch and Crowdfunding. 5. Coaching was conducted by Business Angels, Venture Capitalist and Business Coaches from UK, USA and Switzerland. 6. A session on partnership brokering was run with Enterprise Europe Network, the worlds largest B2B network.

29. ESA UNCLASSIFIED For Official Use One size does not fit all 1. Different companies need different types of investment and investors also have varying interests. 2. SMEs in ARTES programmes typically benefit more from early stage equity investment by Business Angels, rather than from Venture Capitalists. So ESA is building contacts with Business Angel Networks. 3. SMEs seeking to scale up their business are more likely to benefit from VCs or Bank Loans/Debt. So ESA is building contacts with Banks, including EIB.

30. ESA UNCLASSIFIED For Official Use Space / Non Space company Funds () In kind Equity partner e.g. Gov (Bavaria) or Business Angels Funds () ESA / ARTES App. & Services =