xyz, Inc. Investor Presentation 11/22/04 Opportunity Overview - - PowerPoint PPT Presentation

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xyz, Inc. Investor Presentation 11/22/04 Opportunity Overview - - PowerPoint PPT Presentation

xyz, Inc. Investor Presentation 11/22/04 Opportunity Overview Consumers need a better digital imaging solution On-camera user experience is poor, and digital cameras dont take full advantage of the digital medium It remains


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xyz, Inc. Investor Presentation

11/22/04

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Confidential and proprietary information of xxx, Inc.

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Opportunity Overview

  • Consumers need a better digital imaging solution

– On-camera user experience is poor, and digital cameras don’t take full advantage of the digital medium – It remains difficult for average users to upload, share, print, and organize digital images – Just like phones, cameras can (and must) become smarter

  • OEMs/ODMs need help

– Camera technology has become commoditized – can’t continue to differentiate based on mega-pixels and form-factor – Must answer the threat of camera phones – need to simplify consumer workflow and create new business models – Features = differentiation – Must speed time to market, reduce time to develop new features

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Xyz, inc. Strategy

  • Build a compelling Smart Camera platform

platform, GUI, and applications for DSC and DVC

  • Develop a complete end-to-end imaging solution

support the complete consumer imaging process from camera to PC to Web

  • Enable new OEM business models

enable third party developers, facilitate differentiation, and create revenue opportunities

  • utside OEM’s traditional reach
  • Become pacesetter for new digital imaging applications

dramatically reduce development time and create new innovative features

  • License IP to growing market

first to market and first to volume, then beyond cameras

Integrated “Smart Camera” Platform and Service

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Team

  • Joe Random, founder & CEO

Blah, Blah, Words, Words

  • Super Genius, founder & CTO

Blah, Blah, Words, Words

  • Important Guy, in discussion, role

TBD Blah, Blah, Words, Words

  • Mr. Expert, Java OS lead

Blah, Blah, Words, Words

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Market Drivers

  • Lower prices, new features, and widening distribution are driving mass

market penetration – prices have fallen from $795 per megapixel in 1998 to as low as

$50 today

  • Digital cameras have universal appeal, but key segments (women,

parents with children, and teens) are driving the market – women take

pictures an average of 48 times per year

  • Continued price declines, as well as shift from “megapixel war” selling to

lifestyle/ease-of use marketing, will sustain growth – 26% of those who

currently own a digital camera expect to buy another within the next 12 months

  • Penetration of PCs and broadband access a contributing driver – 71% of

users send pictures via e-mail and rank photo sharing a top reason for taking digital pictures

  • Improved availability and quality of photofinishing services completes the

picture – professional photofinishers will make 6.4 billion digital prints in the U.S. in 2006

(60% of all digital prints made)

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Market Size

1 2 3 4 5 6 7 8 9 10 1998 1999 2000 2001 2002 2003 2004* 2005* 2006* 2007* 2008*

U.S. Sales of Still and Video Digital Cameras ($ billions)

*Projected

Initial target market in United States only approaching $10 Billion, not including camera-phone

  • pportunity (50M

units globally in 2003) or other secondary target markets

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Digital Camera Product Chain

Opportunity: ODM and mid-end OEM, where the compression is felt most

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OEM Market Share

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The Solution

Wired

  • or-

wireless

Internet

Datacenter

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Example Features

Applications

  • Photo games, maps, travel guides
  • Portable webcam
  • Vertical applications – law enforcement, real

estate, insurance, etc

Photography Tutoring

  • Presets offer canned expertise
  • Tutorials, PhotoTutor assistant
  • Snap Judgement grading system

Gallery Browsing

  • Rich high-def slideshow export
  • Image sharing
  • Metadata based sort & search

Imaging Enhancements

  • Focus assist (face ID)
  • Blink braketing (facial feature tracking)
  • Image processing & enhancement
  • Special effects
  • On-camera watermarking

First Java™ Enabled Digital imaging Platform

  • JVM, toolkit and UI to support on-camera features

and applications

  • World-class User Experience
  • Built-in connectivity
  • Platform enables convergence of Still and Video
  • Services Integration - on camera tagging (e-mail,

share, print)

Product Overview - Client

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Product Overview – Reference Design

True Reference Design to Showcase Platform

  • Industrial Design forcefully illustrates usability
  • Includes sensors for automated metadata creation
  • Highlights connectivity
  • Perfect solution for ODMs
  • Large (>3” diagonal) vivid LCD

display

  • Innovative navigation control
  • Built-in compass, GPS, and tilt-

sensor

  • Optional WLAN, iPod style hard

disk

Example Features

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Product Overview - Service

End-to-End Solution

  • OEM branded & rev-share
  • pportunity
  • Workflow-optimized connectivity
  • World-class user experience

Rich metadata utilization

  • Sort and search by metadata tags
  • Mapping of location, supplemental

web content, etc. Web services interfaces

  • Photo finishing services
  • Web serving, blogging, etc.
  • Billing/auditing engine

Photo applications

  • Sharing with friends, family, and

broader community

  • Organization and album creation

Highly Interactive Browser-Based Client

  • Flash and HTML access
  • Single access point for PC based and internet hosted photos
  • Unique “idle time” solution makes upload transparent
  • Integrated with on-camera applications, tagging, etc (2-way)

Example Features

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Demo

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Demo (client)

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Demo (service)

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Go to market strategy

  • Create Smart Camera reference design

Based on NuCore and/or Zoran chipsets

  • Target their existing customers

Leverage silicon partnerships to reach new customers Samsung, Olympus, Kyocera, Fuji

  • Target Tier 3 ODMs (Taiwan)

Aipec, Concord, Logitech, HP, Dell, etc.

  • Target Tier 2 OEMs

Pentax, Konica/Minolta, Ricoh, Sanyo, Casio

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How and How Much

  • Sell client software to manufactures

Collect per-unit royalties (Est. $3-5 per camera)

  • Provide services

Provide an OEM-brandable service that enables seamless printing, sharing and backup. Rev-share

  • n transactions or subscription fee.
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Revenue Projections

1 1 2 2 3 3 4 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May- 06 Jun-06 Jul-06 Aug- 06 Sep-06 Oct-06 Nov-06 Dec-06 . SW License Services

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Acceleration strategy

  • License JVM

Acquire rights for a state-of-the-art multitasking JVM

  • Face Detection/Recognition IP

Acquire Intellectual Property for robust Face Recognition

  • Partner with camera IP vendors

Modify an existing camera product to reduce design risk

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Status

  • Important Status one
  • Important Status two

Blah, Blah, Words, Words

  • Important Status three

Blah, Blah, Words, Words

  • Important Status four

Blah, Blah, Words, Words

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End.

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Client Architecture

Tomorrow Today

xyz Technology Camera OEM/ODM 3rd party technology Camera OEM/ODM 3rd party technology