Hein van der Zeeuw Executive Vice President Philips Components CEO Business Group Optical Storage

Transcription

1 Optical Storage Hein van der Zeeuw Executive Vice President Philips Components CEO Business Group Optical Storage

2 Contents Profile Optical Storage Market outlook and Philips Optical Storage ambition Optical Storage strategy product roadmap customer orientation business model Summary

3 Philips Track Record in Optical Storage Long history in R&D, resulting in strong patent portfolio Leader in standards setting from CD to DVD ReWritable Instrumental in opening up Data- and Consumer Recordable and ReWritable markets

4 O p t i c a l S t o r a g e Profile Activities CD and DVD components and modules Focus Recordable and ReWritable applications Revenues 2000 (projected) 1.4 b Design /Development 600 persons

5 Optical Storage Application Market Segments Consumer Data Automotive Optical Sub-Systems

6 Optical Storage Product Portfolio Applications Data A u t o m o t i v e Consumer O p t i c a l sub-systems Optical Sub-Systems Mechanism Loader Engine Drive Value Chain

7 Optical Storage - largest customer accounts 2001

8 Philips Optical Storage Main Production and Development Centers E i n d h o v e n S u n n y v a l e Juarez H a s s e l t W e t z l a r G y o r Main Production Main Development Centers Centers S h a n g h a i S i n C g a l p a o m r e b a

9 Contents Profile Optical Storage Market outlook and Philips Optical Storage ambition Optical Storage strategy p r o d u c t r o a d m a p c u s t o m e r o r i e n t a t i o n b u s i n e s s m o d e l Summary

10 Total PC related CD/DVD markets in units Mln. units C A G R f o r C o m b i d e s k t o p i s % f o r C A G R f o r t o t a l r e w r i t a b l e m a r k e t i s 3 8 % f o r ReWritable DVD Combi- Desktop CD-R/RW Combi/Dual - Notebooks CD ReWritable - Notebooks DVD-ROM - Notebooks CD-ROM - Notebooks DVD-ROM - Desktop/Tower CD-ROM - Desktop/Tower PCs (for reference) ROM line (C o m b i = CD-RW with DVD-ROM read) (Sources: BI estimates based on IDC, BL RW, BL ROM)

11 Optical Storage Data and Consumer Market Trends Shift from Read Only (RO) to R e W r i t a b l e (RW) 15 Shift from CD to DVD DVD-RO 10 CD-RO DVD+RW Billion $ 5 CD-RW /COMBI C o m b i = C D - R W w i t h D V D - R O M r e a d

12 Philips Turnover in Data and Consumer Market Optical Storage will leverage leading position in CD-RW... by focusing on new rewritable applications and standards CD-RO DVD-RO D V D + R W C D - R W / C O M B I to outperform average market growth

13 Market Share Development By gradual increase of market share in the ReWritable (RW) market, we aim to double overall market share from 12% to 25% in % 15% R W m a r k e t s h a r e O v e r a l l m a r k e t s h a r e 0 %

14 O p t i c a l S t o r a g e i n A u t o m o t i v e Strong Growth in Automotive Playback Modules : 17% CAGR of turnover in Automotive Playback Modules w h i l e D V D CD T A P E 53% CAGR of optical storage applications in Automotive Playback Modules

15 Contents Profile Optical Storage Market outlook and Philips Optical Storage ambition Optical Storage strategy product roadmap customer orientation business model Summary

16 Characteristics of the Optical Storage industry High innovation rate Rapid volume ramp up New Technology Standards settings by partnering

17 Optical Storage Strategic Direction Key Building Blocks Focus on developing leading products for the Data segment (CD-RW) and Automotive segment (CD and DVD) to retain our market leadership Concerted approach with selected partners to establish R/RW standards for Audio/Video consumer applications. Increase volume flexibility by outsourcing through selective partnerships Ongoing development of core technologies Optical Pickup Units, Modules, Drives and provide System integration. Take full advantage of relationship with Philips Semiconductors. A m b i t i o n i s s t r o n g p r o f i t a b l e g r o w t h

18 Six company group initiative for DVD+RW

19 Manufacturing and Supply Chain Expansion Strategy High growth issues: R e p e t i t i v e i n s t a l l a t i o n o f n e w p r o d u c t i o n l i n e s Ongoing optimization of outsourcing versus in-house p r o d u c t i o n Suppliers base Web-based Logistics and IT Tools Strategy to expand in Asia/Pacific using experienced contract manufacturers to maximize capital turnover and volume flexibility. Example : Ionics in the Philippines.

20 Optical Storage product roadmap Continuous upgrading CD Recordable for Audio Market D V D V i d e o u p g r a d i n g f o r V i d e o m a r k e t X- game (performance and volume) CD R/W for Data Market Combi product (CD-RW/DVD-ROM) for Data Market D V D R e c o r d e r D V D + R / W f o r D a t a / V i d e o m a r k e t Future Video recorder market: DVR (Blue laser technology) Product portfolio focus on high growth, high value added market segments

21 Optical Storage customer focus strategy Top 10 PC-OEM manufacturers; Top 5 in After-market P C O E M l i n e - f i t g r o w i n g f a s t! Top 10 C o m p a q D e l l IBM H e w l e t t - P a c k a r d P a c k a r d B e l l / N E C G a t e w a y F u j i t s u - S i e m e n s T o s h i b a A p p l e A c e r A m b i t i o n i s 3 5 % t o t a l M a r k e t s h a r e T o p 5 HP P h i l i p s A c e r I o m e g a Creative A f t e r - m a r k e t r e t a i l s t a b l e A m b i t i o n i s 2 5 % t o t a l m a r k e t s h a r e

22 Customer portfolio Consumer Growth / New market segments S t r u c t u r a l s h i f t i n v a l u e c h a i n t o w a r d s e n g i n e s u p p l y a n d h i g h e r value-added product portfolio CD-RO loaders DVD loaders CD-RW loaders DVD games D V D - V e n g i n e C D - R W A u d i o DVD+RW

23 Key Customer Strategy Consumer Focus on high growth, high value add products using recordable- and rewritable technology: CD-R, CD-RW. Build Leading position in digital video recording: DVD+RW. Maintain position of high volume supplier and cost leader in high volume Read-only market of CD, VCD and DVD. Further broadening of customer base. Expand into Active Entertainment market.

24 Customer Portfolio Automotive Our customers include Visteon Robert B o s c h / B l a u p u n k t Delphi Automotive Systems VDO / Mannesmann Daimler Chrysler Huntsville Electronics Johnson Controls Inc. S i e m e n s A T M a g n e t i M a r e l l i B e c k e r A u t o m o t i v e S y s t e m s G r u n d i g Our customer base represents more than 80% of the total OEM automotive world market for telematics and infotainment

25 Key Customer Strategy Automotive High level of Customer intimacy and long term relationship outstanding product quality and delivery performance technology leadership and design-in support Continue long term business relationships with the main automotive OEM customers, by alignment of product / technology roadmaps and co-development.

26 Contents Profile Optical Storage Market outlook and Philips Optical Storage ambition Optical Storage strategy product roadmap customer orientation business model Summary

27 In Summary... The Rewritable and Recordable market will see a CAGR of over 30% over the coming years - and capture by far the most value Philips Optical Storage is currently well positioned in both the Data-, Consumer-R/RW,and Automotive market Based on present leadership position and ambitious product roadmap, we aim to double our overall market share in the next coming years

28 Optical Storage Hein van der Zeeuw Executive Vice President Philips Components CEO Business Group Optical Storage