Obigo, Inc. · KRX:352910
Obigo — Teleca — Investor Day (September 2003)
28 slides from Obigo's investor day presentation, Sep 24, 2003
Slide 1: Teleca's Mobile Device Business in Asia
Teleca´s Mobile Device Business in Asia Stockholm 2003-09-24 Christer Björk +46 70 638 1601
Slide 2: Content
Content 1 Case Study on China as an introduction 2 Teleca´s mobile device business in Asia 3 Continued market overview 4 Why is Asia so important? 5 What are we typically doing in Asia? 6 Why do we need local subsidiaries? 7 Our go to market strategy 8 Competition 9 Challenges 10 TMD Asian Strategy
Slide 3: Case Study: China 1(7)
Case Study: China 1(7) That is… - Domestic mobile users 264 millions in 2003 325 in 2004 1992 0,2 386 in 2005 0,6 442 in 2006 1994 1,6 3,5 496 in 2007 4-5 millions 1996 6,9 Source : Technology Application new users added 13,6 every month Group 1998 24,9 43,5 2000 77,5 145 2002 204 0 50 100 150 200 M
Slide 4: Case Study: China 2(7)
Case Study: China 2(7) - Mobile handset shipments to China market 1997 8 1998 14,5 1999 25,5 2000 51,4 2001 81,0 2002 94,0 2003 120,0 2004 145 2005 175 2006 210 2007 255 0 50 100 150 200 250 Millions of handsets Source : Technology Application Group
Slide 5: Case Study: China 3(7)
Case Study: China 3(7) - Distribution between new users and replacements 120 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 New User 79% 74% 65% 51% 44% 35% Replacement 21% 26% 35% 49% 56% 65% Source : Technology Application Group
Slide 6: Case Study: China 4(7)
Case Study: China 4(7) - GSM market shares per handset vendor in 2002 Market Market Sales Brands Share in Share in Vol (Ku) 2002 2001 Others Motorola 13766 29.69% 30.60% Ericsson 11,6% 2,3% Nokia 11602 25.03% 26.20% Motorola Siemens 3283 7.08% 9.90% Kejian 29,7% 3081 6.65% 2.30% 2,4% TCL Philips Sam
Slide 7: Case Study: China 5(7)
Case Study: China 5(7) - But more interesting might be to study the local GSM handset vendors…. Domestic Sales Vol Market Share Market Share Brand (Ku) in 2002 in 2001 Panda 3 081 6,65% 2,31% Legend 1,8% Others TCL 2,0% 5,7% Bird 1 780 3,84% 3,58% DBTel TCL 1 102 2,38% 1,41% Kejian 29,2% 3,7% Amoiso
Slide 8: Case Study: China 6(7)
Case Study: China 6(7) - In addition we have all the local CDMA handset vendors…. Local CDMA handset vendors: Hisense Nanjing ZhenHua CEC Telecom Konka Tianjin Sanyo Telecom Ningbo Bird Soutec Capitel Kejian … and ZTE, Eastcom, TCL, Haier, Datang, Daxian, Langchao, Xoceco, GDT, Huawei, Huanyu
Slide 9: Case Study: China 7(7)
Case Study: China 7(7) - Conclusion Huge market and potential – still very low penetration – 15 percent mobile phone penetration in 2002 40 mobile handset vendors today and more to come – Up to 60 mobile phone vendors expected in end of 2003 Local handset vendors are rapidly gaining market shares –
Slide 10: The success story 1(3)
Teleca´s Mobile Device Business in Asia - The success story 1(3) In mid 1999 Teleca took two important decisions – To challenge Openwave´s dominant position as the leading WAP browser supplier – To use products as spearheads to pave the way for consulting services on the international market Aggress
Slide 11: The success story 2(3)
Teleca´s Mobile Device Business in Asia - The success story 2(3) In April 2001 Teleca started collaboration with leading chipset vendors – Pre-integration of Obigo into the chipsets (reference designs) – Teleca to perform system integration and customization – Infineon and Philips Semiconducters fir
Slide 12: The success story 3(3)
Teleca´s Mobile Device Business in Asia - The success story 3(3) Obigo continues to develop fine – 19 contracts in end of 2000, 35 in end of 2001 and close to 60 in end of 2002 Opening of Teleca Korea (Seoul) in March 2003 – Rapid growth, 47 employees already and profitable Opening of Teleca Japan (
Slide 13: Cont'd Market Overview - Korea 1(3)
Cont´d Market Overview GSM Local 27% Export 40% - Korea 1(3) CDMA Export 33% Strong mobile phone exports – Korea accounted for 26.8 percent of worldwide production in 2002 – 73% of all mobile phones produced in Korea were exported in 2002 representing a value of 9,6 billion USD – In the first 8 mont
Slide 14: Cont'd Market Overview - Taiwan 2(3)
Cont´d Market Overview 2(3) - Taiwan Taiwan is very different to China – Mature market, good IPR protection, people are used to doing business with Western companies – 5-6 years ahead of China with regards to understanding software and R&D Strong mobile handset exports – Very few OEMs but several of
Slide 15: Taiwanese ODM handset manufacturers
Name ODM PC ODM Handset Manufacturing handsets for: Arima Communication Corp. Sony Ericsson X X Asus Computer Inc. TBD X X BenQ Mobile System Inc. BenQ/Motorola X X Chi Mei Communications System Inc TBD X Compal Communications Panasonic/ Motorola X X DbTel Motorola/DbTel/ X Siemens Drats TBD X
Slide 16: Taiwanese ODM handset manufacturers (continued)
Name ODM PC ODM Handset Manufacturing handsets for: Name ODM PC ODM Handset Manufacturing handsets for: Arima Communication Corp. Sony Ericsson X X Foxconn Electronics Nokia Asus Computer Inc. X X X TBD HTC Corporation T-Mobile / AT&T BenQ Mobile System Inc. X X X BenQ/Motorola Inventec OKWAP Chi Me
Slide 17: Cont'd Market Overview - Japan 3(3)
Cont´d Market Overview 3(3) - Japan Japanese handset vendors have been struggling for quite a while – Big deficits – All mobile phones manufacturers have reduced the numbers of engineers to the indispensable level to survive in the mobile business – Financial damages from recalls due to failures in
Slide 18: So why is Asia important?
So why is Asia important? The domestic markets – Domestic markets in Asia show amazing growth and a huge number of local handset vendors pop up – Mobile phone life cycles are shorter than in Europe and the market is strongly segmented – Operators in Korea and Japan are early adopters and important f
Slide 19: What Are We Typically Doing in Asia?
What Are We Typically Doing in Asia? Licensing & support of Obigo and PC connectivity SW UI & customization Test services and certification Base port & system integration on target platform PCB & mechanical design Industrial design Support in development of platforms Support in selection of producti
Slide 20: Why do we need local subsidiaries? 1(2)
Why do we need local subsidiaries? 1(2) - Case Study: Teleca Korea Needs – We need closer customer interaction to bridge cultural and time differences, language and misunderstandings – We need enhanced account and market intelligence – We need local customer support – We need a better market strateg
Slide 21: Why do we need local subsidiaries? 2(2)
Why do we need local subsidiaries? 2(2) - Case Study: Teleca Korea Risks – Very different market compared to Europe and US: • Cultural differences • Different views and expectations • Difficulties in satisfying the customers and thereby get paid – Difficult to find skilled local people that are able
Slide 22: Our Go To Market Strategy
Our Go To Market Strategy Operators Operators Teleca Customer Customer Teleca Partners Partners UIQ Ericsson Mobile Platform
Slide 23: Business Outlook As Today 3(3) - Korea and Taiwan
Business Outlook As Today 3(3) - Korea and Taiwan Korea looks promising – From 6 employees this spring to 25 this summer to 47 today…. – …and new assignments from major customers more or less every week – Several Symbian based projects for decision Several opportunities in Taiwan – Several important
Slide 24: Competition
Competition Global competition – ElektroBit, Digia, Tropian, PurpleLabs – Some platform companies such as Wavecom – Some CEMs such as Flextronics, Formosa Electronics Corp – Some of the ODMs Teleca´s product offerings have several competitors – Openwave, Nokia, Microsoft, Access, Magic4 etc – BVRP,
Slide 25: Local Competition - Japan
Local Competition - Japan Com pany Nam e Location No.ofStaff Area ofExpertise KanriKougaku Kenkyusyo(K3) Tokyo 125 Japanization Om ron Software Kyoto 743 Em bedded System ISB Tokyo 679 W ireless protocol Sky Think System Osaka 501 Browser,M ultim edia CRESCO Tokyo 687 Em bedded W ireless Nippon Syst
Slide 26: Asian Challenges 1(2)
Asian Challenges 1(2) - Business Combining “the Asian style of operation” with European culture – Handling change requests within fixed price projects – Handling customer expectations – Getting contracts signed Chinese immaturity – Software business not fully understood – Traditional consulting hard
Slide 27: Asian Challenges 2(2)
Asian Challenges 2(2) - Internal Building local competence without major investments – Setting a high quality delivery process according to Teleca standard – Methods, quality, maturity all differ significantly from Europe – Offer good local support to customers – Problem to keep competent staff (pri
Slide 28: TMD Asian Strategy
TMD Asian Strategy - Global reach, local presence Seoul Tokyo Sweden Taipei? UK Shanghai? Germany San Diego France Dallas? Our strategy is to establish market channels, support and development facilities in Asia in order to grow and maximize business across the group. Asia unsupported would be a maj