Frank Russomanno Executive Vice President and Chief Operating Officer

Transcription

1 November 2005 Frank Russomanno Executive Vice President and Chief Operating Officer 2005 Operations Review and Highlights November 15, 2005

2 Agenda Product Strategy Four Pillars of Storage Regional Market Overview Market Landscape Channel Participation November 2005

3 Four Traits That Define Imation 1. Broad Product Portfolio 2. Global Footprint 3. Focused on Removable Storage Media 4. Channel Expertise November 2005

4 Petabytes of Storage Magnetic, Optical and Flash Magnetic Optical Flash % CAGR % 21% 42% November 2005

5 Agenda Product Strategy Four Pillars of Storage Regional Market Overview Market Landscape Channel Participation November 2005

6 November 2005 Product Strategy Offer a Broad Variety of Removable Data Storage Solutions for Multiple Applications from the Data Center to the Home and Personal Use

7 November 2005 Four Pillars of Storage Magnetic Optical Solid State Hard Disk Flash Tape Cartridges & Diskettes CD-R/CD-RW DVD USB Flash Drive Micro Hard Drive Ulysses

8 Magnetic Tape Market $ Billions E 2006E $1.75 $1.70 $1.75 Sources: Gartner, IDC, U&S and Imation Estimates November 2005

9 November 2005 Market Segmentation Magnetic tape market has three broad segments driven by the computing platform and customer requirements Enterprise Customer Segments Entry Level Midrange Data Center Characteristics # Employees Drive Price Library Slots 0 to < $1500 $1000 to $10, to > $10,000 > 500 Computing Platforms Mid-range Server (UNIX) Entry-level Server (Wintel / Linux) Workstations, PC s & Notebooks Data Center (MVS)

10 November 2005 Imation has a Strong Data Center Business Magnetic Tape Libraries

11 November 2005 Imation Magnetic Tape Strategy Maintain #1 Global Position Invest in Advanced Tape Technology Achieve 1 TB cartridge Continue development of Multiterabyte tape (25 + TB) Maintain solid OEM relationships Lean Enterprise Speed, Quality, Competitive Cost Leverage Global Footprint

12 November 2005 Imation Optical Strategy Leverage Purchasing Volumes Continue to Gain Retail Shelf Space Introduce Differentiated Technologies e.g., Scratch resistant coating Printable Surfaces Archive CD/DVD Complete Blu-ray and HD DVD Development

13 Optical Market $ Billions E 2006E $3.0 $3.1 $3.3 Sources: SCCG, Cambridge Associates, U&S and Imation Estimates November 2005

14 November 2005 Imation Optical History 1 GB 12 Write Once 650 MB 5.25 Rewritable 650 GB 1.3 GB CD-R (DVD-R) Future Products: Blu-ray HD DVD CDROM CD-RW 12 Video Disc Future Technologies: Hard-coats Printable Surfaces

15 USB Flash Drives $ Billions E 2006E $2.2 $3.4 $4.0 Sources: Gartner and Imation Estimates November 2005

16 November 2005 Imation Solid State Flash Strategy Personal and Business Storage USB Flash Drives 32 MB 2GB Capacities Higher Capacities in Development

17 November 2005 USB Flash Product Life Cycle MB Future Products: 16 GB USB Flash (2006) 32 GB USB Flash (2007) 64 GB USB Flash (2009) 128 GB USB Flash (2010) Wireless USB (2007) 512 MB 1 GB 128 MB 64 MB 2 GB 32 MB 8 GB 4 GB Application USB 16 MB <16 MB Development Growth Peak Decline Obsolete

18 November 2005 USB Flash Product Life Cycle MB Future Products: 32 GB USB Flash (2007) 64 GB USB Flash (2009) 128 GB USB Flash (2010) Wireless USB (2007) 2 GB 1 GB 256 MB 128 MB 4 GB 64 MB 16 GB 8 GB Application USB 32 MB <32 MB Development Growth Peak Decline Obsolete

19 November 2005 Imation s Removable Hard Disk Products Personal Storage and Server Storage Imation Micro Hard Drive 2GB Capacity, 4 GB in Development Ulysses Hard Disk in a Cartridge

20 Agenda Product Strategy Four Pillars of Storage Regional Market Overview Market Landscape Channel Participation November 2005

21 November 2005 Regional Market Overview Revenue Mix Asia 19% Americas 44% Europe 37%

22 Regional Market Overview Worldwide Business Structure Americas Europe/Middle East Asia Pacific Balanced Global Business Efficient Product Introduction Capability Global Organization that is Lean, Effective and Flexible November 2005

23 November 2005 Regional Market Overview Americas Region Leader: Ron Zinke, Vice President Experience: 30+ Years Location: Oakdale, Minnesota Major Sales Operations: Canada, North America, Central and Latin America Characteristics: Largest Region, Strong Data Center and Mid- Range Business, Large SMB Market, Competitive Optical and Flash Markets and Broadest Variety of Channels

24 Regional Market Overview Europe/Middle East Leader: Brian Plummer, Vice President Experience: 20+ Years Location: Amsterdam, Netherlands Major Sales Operations: U.K., France, Germany/Central Italy, Benelux, Iberia, East and Middle East (Dubai) Characteristics: Balanced Mix Business, Strong Data Center and Mid-Range Business, Smaller SMB Market, Competitive Optical and Flash Markets, Pan-European Channel Consolidation, Experienced Local Leadership and Regional Creativity November 2005

25 November 2005 Regional Market Overview APAC Leader: Nobuyoshi Kawasaki, Vice President Experience: 30+ Years Location: Tokyo, Japan Major Sales Operations: ANZ, China Region, Korea, Japan and SEA Characteristics: Smaller Data Center and Mid-Range Business, Little SMB Market, Competitive Optical and Flash Markets, Move to More Sophisticated Channels, Strong Local Management, Regional Creativity and Greatest Growth Potential (China and India)

26 Agenda Product Strategy Four Pillars of Storage Regional Market Overview Market Landscape Channel Participation November 2005

27 Market Landscape Market Data Reference Sources November 2005 Purchased Reports Gartner Dataquest - Understanding & Solutions SCCG - Cambridge Associates IDC - GFK Primary Research End-User Councils OEMs Storage Industry Analysts Financial Analysts Japan Recording Industry Association (JRIA) Regional Inputs Suppliers

28 Market Landscape Name Scope Products Fuji Worldwide Tape Maxell Worldwide Tape & Optical Memorex U.S. Optical Sony Worldwide Tape & Optical TDK U.S. & Europe, Japan Optical Verbatim Europe Optical November 2005

29 November 2005 Market Landscape 2004 Global Magnetic Tape Market Share Estimate Sony 14% TDK 3% Other 12% Imation 35% Maxell 18% Fuji 18% Sources: SCCG Consulting Services, Gartner, IDN, Company Reports, Imation Estimates

30 Market Landscape 2004 Global Optical Brand Share Estimates TDK 12.7% TY 3.5% CD Others 42.6% TW 1.4% TDK 13.6% DVD Others 47.3% Verbatim 13.9% Verbatim 16% Memorex 15.5% Imation 12% Memorex 15.5% Imation 6.2% Sources: SCCG Consulting Services, Cambridge, U&S, Imation Estimates November 2005

31 Agenda Product Strategy Four Pillars of Storage Regional Market Overview Market Landscape Channel Participation November 2005

32 November 2005 Channel Participation Imation s Channel Sales = 85% Primary Channels B2B Data Specialty Wholesale Direct Response Office (Contract) Government Catalog Retail Mass Merchant Office (Retail) Military Exchanges Consumer Electronics

33 Channel Participation All Channels Have Different Terms and Conditions Require Customized Programs to Satisfy Clientele Retail Channels are Consolidating Brands B2B Channels Have Some Consolidation International Channels Require Regional Programs and Leaders Successful Channel Management Requires Experience, Market Knowledge and Creative Approaches November 2005

34 Summary Removable Storage is a Growing Industry Optical and Flash are the Faster Growing Segments Tape has a Long Life Imation has Experienced Leadership Globally Imation is Well Positioned to Remain a Market Leader November 2005

35 Thank you!