Opportunities from Electric Vehicles, Future Mobility ...

1 KARS9/30/2018 Opportunities from Electric Vehicles, Future Mobility & New Transportation TechnologyAn Overview of the KraneSharesElectric Vehicles & Future Mobility ETF (Ticker: to KraneSharesAbout KraneSharesKraneFunds Advisors, LLC is the investment manager for KraneSharesETFs. Our suite of China focused ETFs provides investors with solutions to capture China s importance as an essential element of a well-designed investment portfolio. We strive to provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. KraneFunds Advisors, LLC is majority owned by China International Capital Corporation (CICC).)

2 2 Investment Strategy: KARS seeks to measure the performance of SolactiveElectric Vehicles and Future Mobility Index. The Index is designed to track the performance of companies engaged in the production of Electric vehicles and/or their components, or engaged in other initiativesthat may change the Future of Mobility . The Index includes issuers engaged in the Electric vehicle production, autonomous driving, sharedmobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing and/or Electric infrastructure features: Access to global companies that operate in all areas of new transportation methods, passenger and freight, including electricvehicles, autonomous vehicles and shared Mobility .

3 Exposure to companies that lead the development of vehicle connectivity like Internet of Vehicles (IoV) and Intelligent Mobility . Exposure to the growth brought on by increased demand for lithium-ion battery and non-ferrous metals like lithium due to Electric vehicle adoption. Access equities listed in Mainland China, currently the world s largest Electric vehicle Mobility Sector Highlights 55% of new car sales and 33% of the global car fleet are projected to be Electric by The global Electric vehicle market is projected to command $ trillion of total investment before Autonomous vehicles and the resulting passenger economy are projected to generate a cumulative $8 trillion in global service revenues by Electric Vehicles & Future Mobility from Bloomberg New Energy Finance as of 05/21 Stanley Research.

4 The EV Infrastructure 55: A Diversified Way to Play a Critical Enabler in the EV Theme. Morgan Stanley. 17 October , Roger. Accelerating The Future : The Economic Impact of the Emerging Passenger Economy. Strategy Analytics. June Mobility We are entering an electrified, connected, autonomous, and shared Future . DefinitionElectric VehiclesElectric vehicles (EV) are vehicles which use one or more Electric motors for and Non-Ferrous MetalsAdoption of Electric vehicles dramatically increases demand for lithium-ion battery and non-ferrous metals such as lithium and ConnectivityVehicle connectivity has three main characteristics: the presence of sensors, vehicle connectivity to networks, and the ability to rapidly compute incoming data.

5 Autonomous DrivingAutonomous vehicles, also called driverless cars or self-driving cars, are vehicles that are capable of sensing the environment and navigating without human MobilityShared Mobility allows passengers to share transportation includes carsharing, e-hailing, ridesharing and DrivingShared MobilityVehicle ConnectivityElectric VehiclesBatteries and Non-Ferrous MetalsFuture Mobility Ecosystem5 Electric vehicles (EV) are becoming increasingly widespread and economical. 55% of new car sales and 33% of the global car fleet are projected to be Electric by Total cost of ownership of an Electric vehicle may reach parity with internal combustion vehicles in certain regions before the end of Rising average mileage per vehicle brought on by ride sharing platforms may result in Electric vehicles becoming more cost competitive than vehicles with traditional internal combustion engines (ICE).

6 The low environmental impact of Electric vehicles means that governments may be more motivated to promote their manufacture and many have already introduced subsidies for Electric from Bloomberg New Energy Finance as of 05/21/2018, retrieved 9/30 Limited. Q-Series: UBS Evidence Lab Electrified Car Teardown Disruption Ahead? UBS. 18 May , Trefor. China, With Methodical Discipline, Conjures a Market for Electric Cars. Wall Street Journal. 2 October Vehicles61%3%9%20%33%02004006008001,0001 ,2001,4001,6001,800201520202025203020352 040 Global light duty vehicle fleet1EV FleetICE Fleetmillion cars on the road3%11%28%43%55%0204060801001202015202 02025203020352040 Annual global light duty vehicle sales1EV SalesICE Salesmillion vehiclesBatteries and Non-Ferrous Metals are an ideal avenue for capturing the potential value of Electric vehicle from Bloomberg New Energy Finance as of 05/21/2018, retrieved 9/30 , Jeff.

7 The Massive Impact of EVs on Commodities in One Chart. Visual Capitalist. 15 September 2017. Copper demand for Electric cars to rise nine-fold by 2027: ICA Reuters. 13 June Creagh, Galaxy raises $61 million for development of lithium projects , Feb 8 from Bloomberg New Energy Finance as of 07/06/2017, retrieved 9/30/2018. Widespread adoption of Electric vehicles may dramatically increase demand for lithium-ion battery and non-ferrous metals such as lithium and copper. Global lithium-ion battery demand is projected to grow 3750% by The revenue pool for lithium, an indispensable component of Electric vehicle batteries, is expected to grow 450% by Copper demand for Electric cars may rise nine-fold by Mining companies have already begun to increase production capacity to meet the impending demand.

8 Galaxy Resources recently purchased a mining area in South America s Lithium Triangle home to around 60 percent of the world s 123 409 1,294 02004006008001,0001,2001,400201520202025 2030 Projected global EV lithium-ion battery demand5 ChinaUSRest of EuropeRest of WorldJapanGermanyUKFranceGigawatt hoursBatteries and Non-Ferrous Metals705001,0001,5002,0002,500201820192 0202021202220232024202520262027202820292 030 Thousand metric tonsProjected global metals and materials demand from EV lithium-ion batteries1 CopperLithiumConnectivity technology like Internet of Vehicles (IoV) connects cars to each other and outside world. Nearly all new vehicles sold in China, European Union, and United States are projected to be internet connected by The growth of Internet of Vehicles (IoV) may potentially produce $273 billion in revenue by 2026, according to a report by Companies like NVIDIA and NXP Semiconductor provide connectivity solutions including Artificial Intelligence (AI), Vehicle-to-Vehicle (V2V) and Vehicle-to-Everything (V2X).

9 Connectivity in personal vehicles and all types of transport is projected to increase, creating a larger role for data services companies like Alphabet and Baidu in the Mobility space. , The 2017 Strategy& Digital Auto Report", September , GSMA Highlights US$ Trillion IoTRevenue Opportunity for Mobile Network Operators , September 7, 2017 Connectivity35%98%100%0%25%50%75%100%201 520202025 Share of new cars sold that are connected to the Internet worldwide from 2015 to 20251 IoVis designed to improve traffic management and enhance safety by connecting cars and signals to each vehicles could dramatically change the Nature of the transportation market. By 2035, cars with autonomous vehicle features are projected to capture 25% of the new car market and more than 30 million autonomous vehicles are projected to be sold per year The assisted driving market, a precursor to full autonomy, may potentially double by Alphabet s Waymo has developed autonomous vehicles that are already being regularly used in California, Wyoming, Arizona and Texas, achieving 4 million self-driven Baidu s Apollo Program is the first open source simulator for autonomous vehicle developers and has already partnered with around 90 partners including Nvidia and Consulting Group, Autonomous Vehicle Adoption Study , APRIL 10, , Seunghkyuk.

10 Advanced Driver-Assistance Systems: Challenges and Opportunities Ahead. McKinsey & Company. February team, Waymo s fleet reaches 4 million self-driven miles , Nov 27, Hyatt, Baidulaunches version of its Apollo self-driving moonshot , Jan 8 from Bloomberg New Energy Finance as of 07/06/2017, retrieved 9/30 DrivingAutonomous vehicle launch timelines based on public announcements59 Shared Mobility is revolutionizing transport systems. The rapid rises of ride sharing platforms such as Uber laid the foundation for the major paradigm shift in transportation to a passenger economy, which is projected to add $8 trillion to the global economy by Ride sharing companies are capturing market share at an extremely fast pace.