Subodh Kulkarni Executive Director, R&D
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1 Subodh Kulkarni Executive Director, R&D Imation Magnetic and Optical Technologies November 15, 2005
2 Imation Participates in All Four Pillars of Storage Magnetic Tape Cartridges Recordable CD/DVD Advanced Optical - Blue Magnetic Optical Solid State Flash Hard Disk
3 Imation Participates in All Four Pillars of Storage Magnetic Tape Cartridges Recordable CD/DVD Advanced Optical - Blue Magnetic Optical
4 Magnetic Tape and Disk are Complementary with Tape Providing Economical Advantage for Archival & Back-up Applications Tape Technology Disk Technology 10 TB - 3 Years Total Cost of Ownership Long Term Archival & Back-up Cost ($/GB) 700,000 Removability/Portability Off-site/Non-Powered Storage Cost ($) 600, , , ,000 Technology Roadmap 200,000 Random Access Capability 100,000 Power & Cooling Floor Space Adm inis tration Software Maintenance Hardware Maintenance Media Software Cost Hardware Cost Speed 0 LTO Capacity RAID Source: Imation
5 Magnetic Tape Technology is Aggressively Increasing Areal Density 1.00E+10 1 TB 1.00E+09 Servowriting technology 1.00E+08 Bits/in2 1.00E E E E+04 40% CAGR 1.00E+03 30% CAGR 1.00E Year IBM LTO STK DLT Source: Imation
6 Key Drivers for Magnetic Tape Capacity & Transfer Rate are Track Density, Bit Density and Length of Tape Driver % Increase from Imation s Projection Track Density ~ % Precision in servo writing/slitting processes Track following: tape path design N-Pattern Servo Technology Bit Density ~50-150% Media Output, SNR, low errors Data channel Encoding/De-coding efficiency TeraÅngstrom Technology Thinner Substrate ~25% Length of tape per cartridge TeraÅngstrom Technology
7 Magnetic Servo is Needed for Tracking Current LTO Magnetic Tape with Inverted V Servo Pattern Magnetic Tape with No Servo Pattern
8 N-Pattern Servo for higher track density A novel servo pattern to enable precision tracking for 1 TB and beyond
9 Imation Patented N-Pattern Servo is Key to Enable 1 TB and Beyond Capacity N Pattern Servo Frames LTO Servo Frames B A LTO Cartridge Sample B A PES Std Dev (um) LTO Actual N Pattern Model N Pattern Actual Servo Band Position (um) N-Pattern Servo provides a step changing in tracking accuracy Will be used in all Sun T GB/1 TB systems, and in other high capacity formats in future
10 TeraÅngstrom Technology for higher bit density and length of tape in cartridge. A novel magnetic media process enabling Ångstrom level surface smoothness to store Terabyte and beyond capacity using thin substrate
11 Imation Proprietary TeraÅngstrom Magnetic Tape Technology Enables Superior Performance Dispersion preparation smaller and more uniform magnetic particles Quiescent (gentle) drying smoother surface In-line calendering thin substrate handling
12 Imation TeraÅngstrom Magnetic Tape Technology Enables Terabyte and Higher Capacity Tape Cartridges TeraÅngstrom Technology Conventional Technology Ångstrom Smoothness Nano Smoothness
13 Magnetic Tape Technology Continues to Stay Competitive, and Imation is Well Positioned to Lead MegaBytes GigaBytes TeraBytes Multi TeraBytes Imation Patented Imation Patented TeraÅngstrom & N-Pattern Servo Thin Film Sputter Technology
14 Imation Participates in All Four Pillars of Storage Magnetic Tape Cartridges Recordable CD/DVD Advanced Optical - Blue Magnetic Optical
15
16 Imation Technology Efforts in Optical Disc are in Differentiated Recordable CD/DVD, and Advanced Optical Differentiated recordable CD/DVD We have launched ForceField TM scratch resistant, finger-print resistant and anti-static recordable CD/DVDs ForceField TM disc Standard disc Standard discs 8X DVD ForceField discs 8x DVD ForceField Disc 8X DVD Standard Disc 8X DVD Discs subjected to similar abrasion test Discs subjected to water drops
17 Printable Optical Demand Continues to Increase in Near Future Units ( Billions ) HD DVD / Blu-ray Printable DVD Printable CD Printable A 2003A 2004A 2005E Source: U&S, Santa Clara and Imation
18 Water-fast Inkjet Printable Recordable CD/DVDs to be Launched Soon Project Crystal: Break-through proprietary technology Water-fast Superior whiteness Uniform opacity High saturation density and image quality Enhanced abrasion resistance Other differentiation opportunities being investigated Archive Disc Hard-coat Unique dye Longer lasting
19 Market Development Comparison Global Media Demand Estimation 10,000 9,000 Source: JRIA, Cambridge Associates, Imation Est. 8,000 7,000 Recordable CD Millions of Units 6,000 5,000 4,000 3,000 Recordable DVD 2,000 Blue Media 1, Recordable CD Total Recordable DVD Total Blue Media Total
20 Blue Laser is Driving Future Optical CD DVD HD DVD Blu-ray 1 st generation 75 min Audio 0.7 GB 1X: 1.2 Mb/s 0.5 Gb/in 2 2 nd generation 2 Hr SD Video 4.7 GB / 8.5 GB 1X: 11 Mb/s 4 Gb/in 2 3 nd generation 2 Hr HD-Video 15-20/30-40 GB 1X: 36 Mb/s 11 Gb/in 2 3 rd generation 2 Hr HD-Video 25 GB / 50 GB 1X: 36 Mb/s 19 Gb/in 2
21 Modular Technology Building Block Investment Enables Flexibility Precision Mastering Initializing Injection Molding Spinstand Testing Vacuum Coating Vacuum Bonding
22 Imation Plans to Introduce Recordable Blue Disc When Drives are Available Next Year US based technology development IP Close proximity to key customers like US Government is beneficial Stream-lined supply chain Time to market Flexible modular investments enabling launch of product, whichever specific format wins Blu-ray or HD DVD Single or Dual layer Dye (Recordable once) or Thin Film (Rewritable)
23 Optical Disc Technology Has Significant Growth Potential, and Imation is Well Positioned to Compete Effectively We are focused on launching new, differentiated CD/DVD products In Advanced Optical, we are well positioned to grow with whichever format wins
24 Thank you!
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