Post on 28-Mar-2018
Corporate Presentation
CES – Las VegasJanuary 2005
Page 1
Key Highlights:• TTE corporation was established in Aug
2004– 2003 revenues >$3 billion
– ~29,000 employees in 9 countries
• TTE is a joint venture between TCL and Thomson with TCL owning 67% shareand Thomson with 33% share
• TTE is the leading global television enterprise with annual production capacity of 20 million units +
Key Highlights:• TTE corporation was established in Aug
2004– 2003 revenues >$3 billion
– ~29,000 employees in 9 countries
• TTE is a joint venture between TCL and Thomson with TCL owning 67% shareand Thomson with 33% share
• TTE is the leading global television enterprise with annual production capacity of 20 million units +
Company Profile
Page 2
Europe Asia
NorthAmerica
Poland
Huizhou
Wuxi
Inner Mongolia
VietnamThailand
MexicoNanchang
Xixiang
9 manufacturing centers with presencein each key consumer market
Villingen / Angers
Singapore
Shenzhen
Strong capabilities in R&D and product developmentwith full coverage from analog to digital technology
Worldwide Manufacturing and R&D
Page 3
Indianapolis
CORE INNOVATION CORE INNOVATION TECHNOLOGYTECHNOLOGY
ANALOG DIGITAL ANALOG DIGITAL MICRODISPLAYMICRODISPLAY
Research & Development
Supply Chain
WW Brands
GlobalManufacturing
& Logistics
Advanced Display
Signal Processing
DigitalTechnology
RCA
Thomson
TCL
N.A.
Europe
Asia andROW
Tubes, OpticsLight engines
IC’s, Electronics
Materials
Core Competencies
Page 4
Uniquely Positioned to Compete EffectivelyUniquely Positioned to Compete Effectively
TTE Global StrategyFocus on television products (all categories)
Leverage scale, size, and reach
Increase Share/VolumeLeverage CRT strength… drive volume
Leverage Large Display strengths…Micro-display skills
Improve Flat-Panel position… seek Panel Partnerships
Leverage Brands/Distribution capabilities – RCA and RCA Scenium (NA), Thomson (Europe), TCL (China & rest-of-world)
OEM and private label business… confirms competitiveness
Take leadership position in advanced display technologies & digital transition
R&D effort tied to DLP, Digital solutions
Leverage China cost structure… Manufacturing, Technical Base, Procurement Advantages
Emphasis on total TTE-wide Quality (Consumer Focus, Products, People, Ethics Governance)
Page 5
TTE North America Market Expectations
Market Expectations:
2004-2005 is a year of transition – emerging technologies, emerging product categories, analog to digital transition
Significant market turmoil – price reduction in flat panel categories… supply chain management critical
CRT is a lower cost digital option… SDTV and HDTV provides cost effective digital solution for consumers
Critical mass will be reached for HD in 2005-06
Mainstream consumers are reached – content, delivery, products
Multiple market changes create an ideal opportunity for TTEMultiple market changes create an ideal opportunity for TTE
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Microdisplay3%Digital PTV CRT
7%
Analog CRT 25" and >31%
Plasma2%
LCD6%
Digital DV CRT4%
Analog CRT < 25"47%
2004 2005 2006
Sources: CEA, NPD, and TTE
Microdisplay6%Digital PTV CRT
6%
Analog CRT 25" and >23%
Plasma4%
LCD10%
Digital DV CRT10%
Analog CRT < 25"41% Analog CRT < 25"
35%
Digital DV CRT21%
LCD14%
Plasma6%
Analog CRT 25" and >13%
Digital PTV CRT3%
Microdisplay8%
Analog CRT still represents a healthy share of the industry (in unit volume)
Digital categories emerging rapidly and digital direct view poised to replace analog direct view
Analog CRT still represents a healthy share of the industry (in unit volume)
Digital categories emerging rapidly and digital direct view poised to replace analog direct view
US TV Industry Outlook (Units)
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2004 2005 2006
Sources: CEA, NPD, and TTE
Microdisplay17%
Digital PTV CRT19%
Analog CRT 25" and >19%
Plasma17%
LCD10%
Digital DV CRT7%
Analog CRT < 25"11%
Microdisplay21%
Digital PTV CRT10%
Analog CRT 25" and >12%
Plasma23%
LCD14%
Digital DV CRT12%
Analog CRT < 25"8%
Microdisplay23%
Digital PTV CRT4%
Analog CRT 25" and >6% Plasma
25%
LCD17%
Digital DV CRT19%
Analog CRT < 25"6%
TTE is well positioned to take advantage of the digital transition with SDTV and HDTV based on digital direct view and micro-display
TTE is well positioned to take advantage of the digital transition with SDTV and HDTV based on digital direct view and micro-display
US TV Industry Outlook (value)
Page 8
$5.5 $6.6
$4.2
$10.3
$3.4
$13.2
$2.3
$16.4
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
2003 2004 2005 2006
Analog Digital
25.2
4.1
23.8
6.9
20.1
10.9
14.8 16.3
-
5.0
10.0
15.0
20.0
25.0
30.0
2003 2004 2005 2006
Analog Digital
Analog Vs. Digital Sales Projection - Units Analog Vs. Digital Sales Projection - Dollars
Analog Vs. Digital Sales Projection - ASP
Units Value
+ =Good growth opportunitiesfor Retailers & Manufacturers
Source: CEA, June 2004 Forecast and TTE.
$220 $168$178 $156
$1,001
$1,217
$1,477$1,608
$600$536$471$416
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2003 2004 2005 2006
Total Analog Total Digital Total
Digital TV Transition Outlook
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99%
78%
22%13% 14%
70%80%
65%
71%
20%8% 7%
9%
7%
12%22%
0%
20%
40%
60%
80%
100%
< $500 $500 - $999 $1000 - $1499 $1500 - $1999 $2000 - $2499 $2500 and >
Plasma
LCD
Rear Projection
Direct View CRT
% of Industry Volume in this Price Segment
71% 11% 5% 5% 2% 6%
Source: NPD, YTD July 2004 Does NOT INCLUDE Mass Merchant Channels
Total TV Industry by Price Segment
TCL-Thomson Electronics (TTE) Confidential
Volume Zone
TTE product portfolio well positioned to play across the spectrumTTE product portfolio well positioned to play across the spectrum
Page 10
CRT DLP LCD
Good
Better
Best
2005 Product/Market Strategy
Analog: Great Value
+ Low Cost ATSC
=
• Seamless solution• Meets mandate• Cost effective: ~$100 premium
Great Value
Great Designs, Rich Features
The Ultimate
Great Value
174 Series 167 Series
263 Series
10 Series
Great Design
11 Series
31 Series
The Ultimate
62 Series
W59 SeriesAffordable HD
Page 11
2005 Marketing Revitalization Programs
New PlatformRefreshed “youthful” look
Synergistic LinksContent
Education1Q05
PromotionPrint Media
POSSports Marketing
In-Store Retail SupportTrainingDetailing
Demo DaysExpanded program:1Q05
CompetitivenessFeature/Benefit
Design DifferentiationRCA Brand Common “Look”
1Q05
2005 Integrated Marketingand
Communications Plan
Web
Advertising/PR
Retail Support
Packaging
Page 12
North American Turn-Around Perspective
Page 13
TTE’s already showing impact of TCL relationship (1/3 of CRT product sold in Q4 were TCL based)
TTE, a company focused on success in TV
TTE’s size/positioning brings attractive partnership opportunitiesfor large and growing retailers
TTE offers “full tool box” to play
Product Categories Multiplying
Market is Growing