Anal99 0 - Philips - United States€¢ Nr. 1 in TV • Nr. 3 in PC monitor • Vertical benefits...
Transcript of Anal99 0 - Philips - United States€¢ Nr. 1 in TV • Nr. 3 in PC monitor • Vertical benefits...
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Components
G. KleisterleeG. KleisterleeChairman & CEO Philips Components and memberChairman & CEO Philips Components and member
of the GMCof the GMC
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PD Components
•• ScopeScope
•• Portfolio DevelopmentPortfolio Development
•• Display BusinessesDisplay Businesses
•• SummarySummary
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System RequirementsSystem Requirements
HH Base MaterialsBase MaterialsHH Process TechnologiesProcess TechnologiesHH Integration CapabilitiesIntegration CapabilitiesHH Mass CustomizationMass Customization
HH End user FeaturesEnd user FeaturesHH Mass CustomizationMass CustomizationHH Short LifecyclesShort LifecyclesHH Click-On FunctionsClick-On Functions
Value Shift Drivers
Functional IntegrationsFunctional Integrations
Technology PotentialTechnology Potential
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Mission Statement
Philips Components aims to be:
• A technology partner of choice for leadingglobal players in :– Consumer electronics (Digital)– EDP– Telecommunications (Mobile)– Automotive electronics (Infotainment)
• Top 3 player in each of the selected segments
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Global Product RangeGlobal Product Range
DisplayDisplayComponentsComponents
•Color TelevisionTubes
•Color MonitorTubes
•Large FlatDisplays
•Key Components
AdvancedAdvancedCeramics &Ceramics &
ModulesModules
•DiscreteCeramics
•Yoke Rings•Soft Ferrites•Integration
GeneralGeneralSystemSystem
ComponentsComponents
•AutomotivePlaybackModules (APM)
•Inpact (WWC)•Electronic Power
Modules (EPM)•Micro Electronic
Modules (MiMo)•Imaging & Optical
Modules (IOM)
Flat DisplayFlat DisplaySystemsSystems
•Active MatrixLCDs
•LCDs Cells &Modules
•Poly-LEDs•Reflective LCDs•Software &
Electronics
OpticalOpticalStorageStorage
•CD Audio/Video•CD ROM•CD Read /
ReWritable•Optical Pick-up
units
Philips Components
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Turnover per Business Group1998
Display Components 51%Advanced Ceramics 15%and ModulesGeneral System 7%ComponentsFlat Display Systems 10%Optical Storage 17%
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Key Financials
EUR mlnEUR mln19941994 19951995 19961996 19971997 19981998
SalesSales 3,3853,385 3,8643,864 4,3494,349 5,0995,099 5,2615,261 Intern Intern 36%36% 36%36% 34%34% 28%28% 27%27%
IFOIFO 162162 300300 316316 267267 4444
CapexCapex 342342 378378 466466 381381 275275
EmployeesEmployees 39,19339,193 39,69639,696 41,99541,995 46,13146,131 42,61342,613
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Sales
Philips ComponentsDevelopments per Region
Market
0
20
40
60
80
1995 1996 1997 1998
Divestm.Asia PacificS. AmericaN. AmericaEurope
EUR bln
0
1
2
3
4
5
6
1995 1996 1997 1998
Divestm.Asia PacificS. AmericaN. AmericaEurope
EUR bln
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PD ComponentsTotal Sales
0
1
2
3
4
5
6
1995 1996 1997 1998
Others
Storage
Display
EUR bln
Total Employees
0
10
20
30
40
50
1995 1996 1997 1998
Others
Storage
Display
Thds
Total Factories
0
10
20
30
40
50
60
70
80
90
1995 1996 1997 1998
OthersStorage
Display
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Divestments 1997 and 1998
• Prof. Syst. Klagenfurt• Motors Dordrecht• Dry reed switches• Rare earth• FSM• Photonics• OF-Dordrecht• HDD• MH&M
• Hard Ferrites• Powder Uden• Film capacitors• Electrolytic caps• Leaded ceramic caps• Fixed linear resistors• Variable reistors• Non-linear resistors
Sales : EUR 623 mlnEmployees : 7,033Business lines : 17Factories : 25
Display Portfolio
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Philips CRT Business
0
5
10
15
20
25
30
1989 1991 1993 1995 1997 1999 2001 2003 2005
USD bln
Market
Market share15%15% 14%
16%
PHILIPS
• USD 3.5 bln revenue
• Nr. 1 in TV
• Nr. 3 in PC monitor
• Vertical benefits
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CRT Issues
A.A. Extra-ordinary price pressure fromExtra-ordinary price pressure fromimbalance supply/demandimbalance supply/demand
75
100
125
150
1995 1996 1997 1998 1999 2000 2001 2002 2003
Supply/Demand parameters CMT and TVT
TVT
CMT
if supply equals demand : ratio = 100
normative balance
0
50
100
150
200
250
300
350
1995 1996 1997 1998 1999 2000
Price Development 15"-CMT
NLG
65%decrease
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Responses
•Capacity control•Philips response
–New product offering–Consolidate manufacturing base in low
cost areas–Reduce vertical integration
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Philips Display Business
0
10
20
30
40
50
60
70
1989 1992 1995 1998 2001 2004
LCD
CRT
USD bln
• USD 3.5 bln revenue• Nr. 1 in TV• Nr. 3 in PC monitor• Vertical benefits
• CRT successor• Even larger vertical
benefits• Critical for PD-future value
portfolio• "Philips" brand• Need to build top position
New
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Philips LCD Business
0
200
400
600
800
1000
1200
1400
1995 1996 1997 19980%
6%
12%
18%
24%
30%
36%
42%
C&M
FPD
C&M
FPD
Sales NLG mln Market share
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AM-LCD Applications
0
5000
10000
15000
20000
25000
30000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Mil.
US
$ (p
anel
)
TV-APPLicationsHandheld PC
DigCamera
Port.video
Automotive
FPM
Notebooks
Total TFT-LCD
- From 1 to multiple applicationsHistory :- 15 years notebook = 6 Bil$ valueFuture :- 7 years multiple applications = 15 Bil$ value- Total growth 93-97 = 7.5% year- Total growth 98-05 = 15% year- Total growth 98-05 new.appl. = 25% year
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Vertical Impact of AM-LCD in Philips
CE
AM-LCD
Semicon
Basic ResearchBasic Research
•• Technology platformsTechnology platforms•• IPRIPR•• Product innovationProduct innovation
potentialpotential
• Brand value - PC monitors- Handheld- TV
• Integrated product roadmapfor leading/differentiatedproducts
• Volume availability for marketposition
• AM-LCD product value 50%ofCE product value
• Integrated product roadmapsfor leading/differentiatedproducts
• Semicon product value 25/30%of AM-LCD product value
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AM-LCD sales 1998
Breakthrough ?Breakthrough ?
0 250 500 750 1000 1250
Hyundai
Casio
Seiko Epson
HAPD
Tottori/Sanyo
Mitsubishi/ADI
Fujitsu
Matsushita
LG
Hitachi
IBM/DTI
Toshiba/DTI
Samsung
NEC
Sharp
USD mln
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Philips & LG Joint Venture
•• Nr. 1 playerNr. 1 player
•• Global reachGlobal reach
•• 2 x Brand support2 x Brand support
•• Excellence & low cost manufacturingExcellence & low cost manufacturing
•• Complementary to HAPDComplementary to HAPD
•• Profitable & fast growingProfitable & fast growing
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Competitive Overview
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Prime ViewHyundai
Toshiba (p-Si )ST-LCDTorisanFujitsu
MatsushitaADI
UnipacCPT
HannStarTottori Sanyo
ADT (Acer )Chi Mei
NECDTI
HitachiSamsung
SharpLG-LCD/HAPD
2003
Sha
re o
f Gen
-2+
Gla
ss In
put i
n S
quar
e-m
eter
s
Assumes that only Fabsin construction 1999-2000
will be ready for 2003 output
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Summary Philips Components
•• We are well positioned to be a leadingWe are well positioned to be a leading
player in a number of fast growingplayer in a number of fast growing
HHigh igh VVolume olume EElectronics Applicationslectronics Applications
•• We will build value by accelerating ourWe will build value by accelerating our
focus programs:focus programs:
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Summary Philips ComponentsFocus Dimensions
•• Few key technologiesFew key technologies
•• Selected functions in fast growingSelected functions in fast growing
applicationsapplications
•• Providing integral solutionsProviding integral solutions
•• Partnering with leading customersPartnering with leading customers
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