Automotive Testing International Distributor Training September 10 & 11, 2008.

Automotive TestingInternational Distributor Training

September 10 & 11, 2008

Agenda - Thurs. Sept. 11, 2008

8:30-9:30Sales and Product Review

9:30-12:00Distributor Lead Presentations4 Specific cases to be presented

12:00-13:00Lunch

13:00-15:00Distributors to Present/Discuss Sales Efforts

• What is working in your regions• How do position against competition

15:00-17:00Next Steps

• Sales assistance/Marketing support/Sales support• Process improvements• Product Development ideas

XSENSOR Overview

XSENSOR Technology Corporation designs, manufactures and sells advanced pressure imaging systems for use in

patient safety, automotive testing, and sleep.

XSENSOR Overview

Based in Calgary, Alberta, Canada

Founded in 1995

34 employees

Distributors and customers in over 40 countries

Emphasis on innovation and continuous product improvement

Corporate Profile

Sales Regions

XSENSOR Overview

XSENSOR pressure imaging systems are used by automotive, aerospace and military product designers and test engineers throughout their design, testing and process control cycle to measure pressure related issues in seats and tiresNatural product line extension from the medical seating system to the industrial version in late 90sOther higher pressure and higher spatial resolution sensors followed (i.e. tire tread analysis)Most major automotive companies and Tier 1 & 2 suppliers are current customers

Automotive Testing – Market Profile

XSENSOR Overview

XSENSOR pressure imaging systems are used by clinicians to help clients select the best support surface and positioning to reduce or prevent the likelihood pressure ulcersApplication that the company was founded on in 1995 with our strategic partnership with The ROHO GroupOver 1000 customers worldwideCurrent focus is providing the most effective and efficient pressure imaging tool for the clinician

Patient Safety – Market Profile

XSENSOR Overview

Sleep – Market Profile

Initiated in 2003, Sleep is our newest and now largest vertical marketNatural product line extension from medical bed systemMajor clients include Select Comfort, Mattress Firm, and IntelliBed

XSENSOR Overview

FocusFY 2009 Sales Focus 1.Automotive/aerospace Seating – account for majority of our product sales2.Tire Design – growing segment with added sensor offering3.Windshield wiper blade manufacturers – new market potential4.Door Seals/Other automotive focused applications – limited but has possibilities

PD Development projects for FY 2009 - CompletedLX100 sensorLX200 sensorWiper blade sensor – PX100:1.64.02 & PX100:1.160.05PRO v6.0 SoftwareAlterations to X3 PRO Electronics

• USB 2.0• X3 PRO Electronics Platform

Development projects planned for FY 2009 – Yet to beginCapacitive compensation – coming this FallCompensation algorithms – hysteresis/other for LX sensorsData acquisition – speed improvementsWireless for AT applications

Product Offering – Sensors

LX100Seating (LX100:36.36.02, LX100:40.40.02 & LX100:48.48.02) no 40.64??

• Designed for accuracy at low pressures 0.2-4psiLX200

Seating (LX200:36.36.02, LX200:40.40.02, & LX200:48.48.02)• Designed for higher pressures. Not the best option for customers most interested

in low pressure readings• 0.2-15psi• LX100 & LX200 sensors use similar dielectrics

PX100Seating (PX100:36.36.02, PX100:40.40.02, PX100:48.48.02, & PX100:40.64.02)High resolution seating options (PX100:100.100.05 & PX100:100.160.05) Wiper blade (PX100:1.64.02 & PX100:1.160.05)Large low pressure (PX100:48.144.02 & PX100:64.160.02)Other high resolution (PX100:25.100.10, PX100:50.100.10, PX100:100.100.10, & PX100:15.25.05)

PX200PX200 seat sensors have been discontinuedPX200 sensors are available in different resolutions

• PX200 sensors are made with similar dielectrics to PX100 sensors

IX500 SensorsTire Sensors (IX500:256.256.22, IX500:256.256.16, & IX500:128.128.10)

• First two sensors are high resolution and designed for mostly static testing. Made with rigid design

• Third option requires only 2 X3 PRO Sensor Packs and provides a more dynamic image. More flexible

• X3 PRO Software will now interpolate data from 200psi to 250psi

Other IX500 (IX500:40.40.10, IX500:60.60.10, IX500:12.12.05, IX500:15.30.05, & IX500:65.65.04)

• Designed with similar properties to PX100 and PX200 sensors

• Same cover, similar dielectric properties


PRO v6.0Latest version of software

• Since release of PRO v6.0 in May 2008, all new customers receive 1 year maintenance program

• Entitles the customer to free upgrades for 1 year from purchase date• They can purchase additional years of maintenance

Upgrade program• Starting Sept. 1, 2008 customers who purchased an X3 PRO System

with PRO v5.0 will be required to pay retail price for PRO v6.0• With the purchase of PRO v6.0 they will be entitled to a 1 year

software maintenance program. • They could also purchase additional years of the maintenance

program


Calibration Chambers

3 options available to customers

Sell calibration chambers for lower pressure applications (0.1-4 & 0.2-15psi)

Primarily for seating applications

• Calibration Chamber A – low pressure PX100:36.36.02 chamber

• Calibration Chamber B – discontinued – higher pressure PX100:36.36.02 chamber

• Calibration Chamber C – changed (will not fit sensors 50.8x81.2cm) low pressure chamber

• Calibration Chamber D – changed (will not fit sensors 50.8x81.2cm) higher pressure chamber

Sensors in excess of 15psi will need to be returned to XSENSOR for recalibration.

Product Offering – Calibration Chambers

LX100 Product SheetCompleted

PRO v6.0 Product SheetCompleted

X3 Wiper Blade Sensor – Specification SheetIn progress

Quarterly Summaries - web based - partner updatesIn progress

Automotive Testing: USA http://www.xsensor.com/leads/index.php?link=u3012

Automotive Testing: Germany http://www.xsensor.com/leads/index.php?link=u3004

Communications • Database of 120 customers and 300 leads

• E-communications• Press Releases

Advertising• In progress

SAE International – August, October, December

Marketing Initiatives

http://www.xsensor.com/leads/index.php?link=u3012

http://www.xsensor.com/leads/index.php?link=u3004

AdvertisingIn progress

SAE International – August, October, December

Marketing Initiatives

Distributor Lead Presentations

September 11

Distributor Presentations

30 minute sessions on the following topics:(Questions and discussion encouraged for each session)

–Rene Storms – Automotive seating sales and successes in Germany

interfaceforce Germany

–Takashi Kobayashi – Toyota Japan – switching from Tekscan to XSENSOR

Ken Automation Japan

–Ferdinando Cavallero – Tire sensor sales in Italy

Danetech Italy

–Jean-Luc Barette – Wiper Blade sensor process in France

PMI France

Distributor Lead Presentations and Discussion - 9:30 –12:00



–Rene Storms – Automotive seating sales and successes in Germany

interfaceforce Germany


Automotive Seating

Good start to sell in the market is to convince the OEM customer of the seat manufacturer, means the car manufacturer.

They simply multiply your customers. Car manufacturers usually understand the weak points of this kind measurement and regardless of our specifications, if everyone does the same they think that they at least have a kind of standard. And here is our strongest argument. XSENSOR has a very good repeatability.

Do not hesitate to contact big guys !

This kind of measurement is BOARD-SUITABLE

Don‘t forget: mazing amount of different departments work on the same thing

Automotive Seating

the automotive seat has the biggest contact to a customer, so it is a very important part of a car !

it is an expensive part of the car, option list is very long. Easily you can spend 10-15.000 € for special seats.

lot of components in the seat have influence regarding the comfort

Heating, cooling, massage, adjusting, material….all these units have to be tested (W.E.T, Brose, L&P, Fehrer……)

Automotive Seating

A seat has a big volume and is usually ordered a few hours before the car is produced, so production and quality tests need to be close to the car manufacturer (means just more customers)

These customers offices usually get their budget from sales and their requirements are not so high

………

Automotive Seating

Testing:

comfort +

quality & durability + safety

XSENSOR Advantages:

stability,

creep,

repeatability

80 % is sensing area

flexibility of the sensor

durability of the sensor

Aircraft + Automotive Seating

Do not hesitate to contact customers already using competitors.

These customers will understand our strong points way better than new customers!

In the future all seats may be tested before they are built in the car…..

Seating Misc.

Don‘t Forget :

aerospace market

Railway

Bus and coach

Office chair

(here you see a lot small manufacturers)



–Ferdinando Cavallero – Tire sensor sales in Italy

Danetech Italy


Advantage / Disadvantage

Advantages against TekscanOur Tire Sensor System was less expensive We do not need calibration every day (like Tekscan)Our sensor seems to be more rugged (especially to twist and sheer forces)Our SW X3Pro was more PowerfulWe have standard 294 x 294 mm and 399 x 399 mm sensors at 200/250 psi

XSENSOR Tire Sensor was selected to replace Tekscan because we were considered superior on most of the characteristics:

Disadvantages against TekscanOur Tire Sensor was more expensive

We have only a pressure range of 200 psi (250 psi not calibrated)

We can not provide a “transportable” calibration system for Tire sensors

Agriculture and Off Road

Tekscan has two sensors that are published for large Truck and Agriculture tires:

model 8000Q (69 psi - 618 x 558 mm - 3 mm resolution)model 7100Q (25 psi - 1004 x 914 mm - 5 x 5 mm resolution)

The problem with such sensors is Price (extremely expensive)

Pressure range too low

Sensors are too fragile to twist and sheer forces (that are much bigger in a Agriculture - Truck and Off road tire then in a Passenger tire)

FOR THESE REASONS NO ONE USED TEKSCAN FOR AGRICULTURE & LARGE TRUCK TIRES IN ITALY. MOST OF THE

REASERCH ACTIVITY ON TRUCK AND AGRICULTURE TREAD WAS DONE WITH CARBON PAPER !!!!

Pressure Range

We were quite successful having started selling 3 Tire Sensors Systems for Large Truck and Agriculture applications with custom Sensors 975 x 975 mm sensors, 5.08 mm resolution, pressure range 200 psi (250 not calibrated). Other orders are on the way.

We still have a problem that we hope will be solved by XSENSOR in future, the pressure range is still too low.

Here is an example of a test done on Truck Tire loaded at less then 50% of the capacity.

It is still interesting to use the XSENSOR for Contact Area only but not for the other analysis, and what about reliability of the sensor being overloaded often?

Subsoil Tests

The manufacturers of Agriculture Tires start to consider performing subsoil tests with Pressure Plotting Systems. A methodology is currently under development and could became a standard test required on Agriculture Tires.

It is extremely important to promote our product to the Agriculture Tires manufacturer worldwide because the subsoil test could become a standard test (with a big potential market) and we have the “state of the art” product in this field. Below is an example of sub soil test done at Trelleborg at different depth of soil (demo done with a passenger tire sensor).

Tire Companies in Italy

PIRELLI TYRE

BRIDGESTONE

TRELLEBORG

MARANGONI TYRE

Passengers And TBR Tire

Pirelli and Bridgestone European Technical Centers use Tekscan tire sensors for passenger tires extensively.

Both companies also used Tekscan for TBR (Truck & Bus Radial) tire tread tests

Most common Tekscan sensor used was: model 8050

300 psi - 292 x 968 mm - 192 x 176 sensing - 1 mm resolution



–Jean-Luc Barette – Wiper Blade sensor process in France

PMI France


Wiper Measurement

PM Instrumentation, France , J.L. Barette

The units and the wiper worldNever talk about PRESSURE

The contact area of the wiper to the windshield is about 800 mm by less than 2 mm.

Wiper Measurement

Because of this, we cannot talk about pressure (no surface measured) but we talk about force to the length – N / meter

The wiper people are used to measure the force under the wiper arm, this force could be about 15 N over 800 mm so we have 18.8 N/m

The XSENSOR wiper sensor is calibrated to 32 N/m = 30 mmHg or 0.4N/cm²

Wiper Measurement

What are we looking at ?

Measurement of a very low pressure

Typical wiper profile


Very good repeatability

XSENSOR sensing elements give the same signal for the same pressure.The measurement is the same no matter where the wiper is placed on the sensor.


Why we are better? ( maybe the best …)

Low pressure sensibility, low noise

XSENSOR : from 5 mmHg .Tekscan use a high pressure range ink and amplify the signal. Result - noisy output

NO calibration NO. equilibration

Tekscan users spend 1/4 of their time on this. Result -calibration varies (human error & environmental conditions).

Repeatability of the measurement with low noise

Tekscan – noisy measurements and poor repeatability.

Why we are better? ( maybe the best …)

Time Stability

Tekscan needs to be calibrated every day . Without calibration it is almost impossible to reproduce measurements for more than 2 days

Pad Durability

The Tekscan pad do not last long, needs to be replaced after a number of measurements.

Where are the applications?

Wipers manufacturer for R & D purpose.

Wipers manufacturer for quality control at production level

The car industry for R&D - wiper testing

They control the product and improve the wiping systems of the cars

Car industry for research material on rubber

They test the rubber and the finished product (wiper or door seal)

The Competitor

The Competitor : Tekscan

How many system in France and BelguimValeo : 5 Tekscan systems in FranceBosch : 1 in BelgiumFederal Mogul : 1 in Belguim

Today : 2 XSENSOR systems sold in France and Belgium. 1 to FM, one to PSA

Total need :for R & D (wiper manufacturer) : 8 systems for production (wiper manufacturer) : Important request



–Takashi Kobayashi – Toyota Japan – switching from Tekscan to XSENSOR

Ken Automation Japan


Business Review/Ken Automation

About Ken Automation –Established in 1990, and has been distributer of

XSENSOR since 2006.

Primarily specialized in none destructive testing

equipment in automotive sector in Japan.

Global business partners –Infrared Cameras, Infrared Stress Analysis System (France)

Eddy Current Inspection Equipment (Germany)

Non Contact Ultrasound Inspection System (USA)

Pressure Mapping Imaging System (Canada)

Others


Japanese industrial market history – Tekscan’s resistive sensor dominated.

Limited recognition of XSENSOR’s capacitive sensor

and its excellence in performance.

Ken Automation put top priority to introduce XSENSOR

which has become one of the core product lines handled.

Sales breakdown by sensors/components – Year

(Jan - Dec)Seat Sensor Tire Sensor X3 Display

Calibration Chamber

2006 6 0 1 12007 16 5 1 1

2008 YTD 17 2 1 1


Strengths we offer – Trade show participation

National advertisement

Local web site promotion (More than 200 inquiries)

Demo and reporting

Trade show(Automotive Engineering

Exposition 2008,Car testing 2008, others)

Advertisement(Journal of Society of

Automotive Engineers of Japan,

others)

Top page Tire sensorSeat sensor

http://www.xsensor.jp(Updating the trade show information)

Demonstration and its report for each potential customers

http://www.xsensor.jp/


Business history with Toyota Group Companies –

Toyota Group

JtektToyota Industries

Toyota MotorAichi Steel

Toyota Auto BodyKanto Auto Works

Toyota TsushoAisin

Toyota GoseiDenso

Toyota BoshokuTowa Fudousan

Toyota Central R&DDaihatsu

Hino

*1 Two projects (Nos.6 and 12) above have already been budgeted for purchase this year.*2 Those blue colored companies in the group show “shipment made”.

No. Date Group Company Initial Contact Status Application Remark

1 2006/11 Aisin Trade show Shipped Bed 　

2 2007/6 Denso Web site Lost OEM seat sensor 　

3 2007/7 Toyota Motor Trade show Shipped Automotive seat 　

4 2007/8 Toyota MotorRecommended by

No.1Lost Power window

Required more than 200 PSI -> Maybe PPS

5 2007/10 Toyota Motor Trade show Lost Polishing car body -> Maybe Tekscan

6 2007/10 Denso Web site Under study Rubber bushing Competitor is Tekscan

7 2007/12 Toyota Central R&D Advertisement Shipped Automotive seat 　

8 2008/1 Denso Web site Shipped Automotive seat 　

9 2008/1 Toyota Boshoku Trading company Shipped Automotive seat 　

10 2008/3 Daihatsu Web site Shipping Automotive seat Deliver in this month

11 2008/3 Toyota Boshoku Trading company Shipped Automotive seat 　

12 2008/8 Toyota MotorRecommended by

No.3Under study Seat belt Pressure level is very low.


Tips for business success in Japan –Web site product introduction is one of the strongest tool.

To provide customer satisfaction, below are take for granted.• Quick demonstration report

• Quick response to customer’s inquiries

• Quick reaction to resolve issue, to lead new business generation

Business forecast for XSENSOR –Nissan group is under study for 2009 purchase budget.

Knowledge/recognition of XSENSOR’s performance for tire sensor has already been made by Bridgestone, Toyo Rubber, Sumitomo Rubber, and Yokohama Rubber.

Increased business is expected for 2009 vs. 2008.

Sales Efforts/Focus

September 11

Sales Efforts/Focus

Want to discuss what approach you are using.

Sales Efforts / Focus

What has been effective

• What type of customer do you target

• How are you positioning the product to customers

• How do you compare XSENSOR to the competition

• How does Tekscan pricing/approach compare?

• How do you explain the benefits of our product

• What do you use to convey the benefits method (demo/literature/website/etc)

How are you closing the sale?

What would help you be more successful?

Open Forum 1:00 – 3:00

Next Steps

September 11

Sales Efforts/Focus

Where do we go from here?

Focusing sales efforts

Marketing approaches/assistance

Exposure

Competitors

Product Development/product enhancements

Other topics

Automotive Testing International Distributor Training September 10 & 11, 2008.

Documents

px100 sensors

ix500 sensors

sensors ix500

ix500 ix500

high resolution px100

wiper blade px100

large low pressure px100

product sales