Investor Relations 2008
This presentation is the property of its rightful owner.
Sponsored Links
1 / 31

Embedded Solution Company - MDS Technology Co., Ltd. PowerPoint PPT Presentation


  • 118 Views
  • Uploaded on
  • Presentation posted in: General

Investor Relations 2008. Embedded Solution Company - MDS Technology Co., Ltd. Contents. I. Trend of Embedded Industry. I I. Company Overview. I II. Business Domain & Products. I V. Competitive Edges. Ⅴ. Investment Proposal. 2. Ⅰ . Trend of Embedded Industry Ⅰ-1. Embedded system.

Download Presentation

Embedded Solution Company - MDS Technology Co., Ltd.

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Embedded solution company mds technology co ltd

Investor Relations 2008

Embedded Solution Company -MDS Technology Co., Ltd.


Embedded solution company mds technology co ltd

Contents

I

Trend of Embedded Industry

II

Company Overview

III

Business Domain & Products

IV

Competitive Edges

Investment Proposal

2


Embedded solution company mds technology co ltd

Ⅰ. Trend of Embedded Industry Ⅰ-1. Embedded system

● Embedded SW includes all electrical control SW embedded into the products, such as Mobile phones, Car Navigation, Digital TV, Automobile and Aerospace, etc.

D-STB 성장성과 과도한

경쟁가능성에 대한 오해

Embedded System

Application

Development solution

Middleware

Embedded

SW

OS

LCD

Display

Mobile phone, Car Navigation, PMP, Automobile, Aerospace, Digital TV, IP set-top box …

HW

Platform

Memory

CPU

Network

Peripheral

3


Embedded solution company mds technology co ltd

Ⅰ. Trend of Embedded Industry Ⅰ-2. Market Size

● Application of embedded SW is diversified that expects the market size around 10billion.

Korea

Global Market

DevelopmentTool

OS Bundle

EICS

DevelopmentTool

EICS

SW

OS Bundle

Application

Mobile PhoneDigital device

InfrawareNeomtelMDS

MS

Windriver

Greenhills

MDS

WindRiver

Adventech

Mathworks

Lauterbach

IBM

MDS

Mathworks

IBM

ElectronicAppliance

Automotive

Defense/Aerospace

Kontron

Radisys

Kontron

( MDS )

Advantech

IndustrialComputer

Market size

US$5B

US$1.5B

US$0.8B

US$80M

US$50M

US$300M

US$100M

4

EICS = Electronic Integrated Computing System


Embedded solution company mds technology co ltd

Ⅰ. Trend of Embedded Industry Ⅰ-3. Market trend

● Contains very high growth potential

● The demands from each market are vary, however, each industry cooperates and integrates very closely

  • Systems tends to equip more electronics

  • High profitable industry/increase in SW proportion

  • (ex) mobile phone / Automobile

  • Over 95% of embedded system manufactured in-house

Very high in growth potential

The trend of embedded industry reflects on our business structure & model

  • Unlike PC market, each application requires different SW & solution

  • US$10M~200M sized segment markets are played by a few companies

Huge market / Limited competition

  • Requires close relationship with chipset vendors

  • Requires development tools for design and bug detection

Characteristic of embedded market

5


Embedded solution company mds technology co ltd

Contents

I

Trend of Embedded Industry

II

Company Overview

III

Business Domain & Products

IV

Competitive Edges

Investment Proposal

6


Embedded solution company mds technology co ltd

Ⅱ. Company Overview Ⅱ-1. Overview

Overview

Financial Statement (FY 08(E), Unit : KRW billion)

Sales Revenue

CEO

Sangheon Lee

55.8

Operating Income

5.24

Foundation

1994. 3 (Incorporated in 1998)

Net Income

4.17

15Fl. Kolon Bilant 222-7 Guro3-dong Guro-gu, Seoul, Korea 152-77

Address

Total Assets

45.3

Homepage

www.mdstec.com

33.0

Total Capital

Overseas Subsidiaries

Stockholder Status (As of October, 2008)

Others

Controlling shareholder, etc

Korea

Venture Capital

India

Singapore

Malaysia

Australia

Institutional Investor

Treasury stock

<Remark> ▲ Par Value : \500

▲ No. of Listed Stock : 9,501,280

7


Embedded solution company mds technology co ltd

Ⅱ. Company Overview Ⅱ-2. History

● MDS has led the history of Korean Embedded SW Industry

Expanding Years▶

(2005 ~ )

Growth Years▶

(1998 ~ 2004)

  • KONTRON (EICS) business launched

‘08

  • dSPACE (Design Automation tool) launched

  • Founded a branch in India

‘04

  • Merged DST Corp.

‘07

  • Founded Singapore branch

  • Awarded Digital prize by Ministry of Information & Communication

‘03

  • Selected for SW Flagship Government Project – Developing aircraft Real-time OS

  • - NEOS RTOS, Awarded ‘New SW’ by Ministry of Information & Communication

Founding Years▶

(1994 ~ 1997)

  • Selected for Digital Appliance PostPC Government Project Supervisor by MOCIE

‘01

  • R&D Center established

‘00

  • - Listed in KOSDAQ(086960)

  • - MDS Networks, a subsidiary founded

‘06

‘97

- Selected for the ‘MDS’ Project by the Government

- Selected for Embedded Development System Project Supervisor by MOCIE

‘99

‘94

- MDS Technology established

  • Founded a branch in Australia

  • -IT Venture Award by IT KOIVA

‘05

- Partnered with Microsoft for Windows Embedded Business

‘98

Embedded Development ToolProvider

No.1 Total Embedded Solution Provider in Korea

The Leader of Embedded Development Tool Business

8


Embedded solution company mds technology co ltd

Ⅱ. Company Overview Ⅱ-3. Executives

CEO / Sangheon Lee

CEO / Charles Na

Sociology, Seoul National Univ.

Overseas Sales in Kolon

Corporative Planning in Kolon Group Certificated CEO Course in KAIST

US UCSD MBA

English, Hankuk Univ. of Foreign Studies

Overseas Sales in Samsung Electronics

Sales/Planning in Doo-in Electronics

CEO /DST Corp.

CTO / Myung-sub Chang

CFO / Moon-kyu Song

Computer Engineering, Seoul National Univ.

Computer Engineering in KAIST (Master)

SK C&C S/W Development

Cyberbank S/W Development

Management, Seoul National Univ.

Planning in Kolon Group

Corporative Planning In Kolon Group

9


Embedded solution company mds technology co ltd

Contents

I

Trend of Embedded Industry

II

Company Overview

III

Business Domain & Products

IV

Competitive Edges

Investment Proposal

10


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-1. Products

● No.1 Embedded Solution Company in Korea Providing One-stop Solution & Services

Embedded SW

Others

Embedded SW Development Tool

Device solution (MID, PMP)

Debugger, Compiler

Windows Embedded OS

Windows CE & Mobile Solution

Automotive Solution

UWB, Multimedia chip

DMB Solution

EICS

SW Testing Solution

Embedded Solution Training

Firmware / Embedded OS / Development Tool / Engineering Course

11


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-1. Products

Windows Embedded OS

Major Products

Windows CE, Windows XP Embedded, Embedded Server OS, Classic Desktop OS

Overview

Microsoft Windows Operating system for embedded devices

Target Market & Customers

- Car Navigation, PMP, ATM, DVR, IP set-top box

- Samsung Techwin, LG Nsys, Nautilus Hyosung, Geotel, Reigncom…

  • A comprehensive operating system platform with proven performance and reliability

  • Providing highly customized device designs on a flexible platform with easy-to-use

  • development tools that enables to reduce development time and cost

  • Ecosystem partner network with world leading silicon vendors (IHVs, ISVs)- No.1 partner of Microsoft in Asia

Features & Advantages

12


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-1. Products

Debugging Tool

Major Products

TRACE32-PowerDebug/PowerTrace/PowerProbe

Overview

- ‘De facto standard’ debugger in worldwide

Target Market & Customers

- Mobile, Digital devices, Consumer Electronics, Automotive, SoC, etc

- Samsung Electronics, LG Electronics, Pantech, Hyundai Motor, etc

- A set of modular microprocessor development tools which major chip vendors recommend (support more than 350 different CPUs)

- Support the latest various development environment

- Maximize the efficiency of customer’s development by providing optimal embedded systems development solutions

Features & Advantages

13


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-1. Products

Automotive Solution

  • Design automation tool for automotive and aerospace

  • - Supports all development phases from block diagram function prototyping, automatic production code generation to ECU testing and calibration.

dSPACE

  • Modular and static RTOS for automotive

  • Support all common microcontrollers in the automotive sector

  • - SiemensVDO, BMW, Audi, Volkswagen, DaimlerChrysler

EB tresOS

  • Development Solution for FlexRay Network communication protocol for automotive

  • Total solution covering design, modeling, prototyping and analyzing the FlexRay Network

EB FlexRay Solution

Graphical Modeling and offline simulation

Calibration

Hardware-in-the-loop simulation

Rapid control prototyping

Automatic production code generation

14


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-1. Products

SW Testing & Service

Major Products

QAC, CodeSonar, VectorCAST, TestQuest Pro, Unicorn, Polaris

Solution & services for software testing to ensure the safety and quality assurance

Overview

- Mobile/Telecom, Consumer Electronics, Automotive, Military, etc

- Samsung Electronics, LG Electronics, SKT, Hyundai Motor, etc

Target Market & Customers

  • Automated quality & functional testing

  • Memory leak detection solution

  • Source code analysis solution

  • Static/Dynamic testing solution

Features & Advantages

15


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-1. Products

Device Solution

- Providing ODM (Original Design Manufacturing) service- Helping customers to design, engineering and build products from original idea

Overview

- Navigation + Mobile TV- PMP, PND- IP Set-top Box, Home controller

Major Products

- Car Navigation, DMB, Home Network, IPTV

- Xroad, Reigncom, Neochips, Reneco, Icontrols

- Japan, Europe, South America

Target Market & Customers

  • On-demand one-stop service

  • Selective customization from design to manufacturing

  • Proven and distinguished quality management system

Features & Advantages

Benefits

Better time-to-market providing outstanding rerun-on-investment for the customers

16


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-1. Products

Windows CE & Mobile Solution

- Multimedia solution for smart phone and PDA, PIMS & Utility Applications

- Microsoft Windows Embedded SI Partner (Gold Partner)

- Messaging solution (MMS, SMS, SMIL), Camera & Camcorder solution

- Platform : Windows Mobile 6.0, Windows CE

Windows CE & Mobile Solution

- BIFS

· Binary Format for Scenes is the MPEG-4’s scene description language, designed for representing, delivering and rendering interactive and streamable rich-media services

- TPEG

· Transport Protocol Experts Group

· Providing the TPEG decoder for delivering traffic and travel information contents through DMB

DMB Data

Broadcasting Solution

<MMS>

<BIFS>

<TPEG>

17


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-1. Products

Other Products & Services

  • - Real-time OS (RTOS) for embedded system

  • Developing the core technology for air-craft(T-50)

  • Assigned by SW Flagship Project – under the consortium of Korea Aerospace Industries

NEOS RTOS

- Agilent Technologies (Universal instruments)

- Digital Broadcasting / Electronic Power Test & Measurement

- USB Protocol Analyzer /Noise Analysis

Test & Measurements

- Standard-based and custom embedded and communications solutions for OEMs, Systems, integrators and application providers such as industrial automation, telecommunications, medical, infotainment, defense and aerospace.

EICS (Industrial Computer)

- RMI Alchemy chip : Power-optimized and high-performance SoC for digital consumer products including PMP, Navigation, etc.

- ZigBee chip : ZigBee ready solution which covers chip, module, software

SoC Solution

  • Electronic Design Automation

  • Acceleration and Emulation for design verification

  • Altera FPGA solution distribution

  • Impulse C : C-to-FPGA solution distribution

EDA Solution

  • MDS Academy : The biggest embedded solution training center in Korea

  • The most up-to-date industry technology curriculum with hands-on training

  • Produced the largest number of trainees in Korea : more than 10,000 each year

Embedded Solution Training

18


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-2. Business Domains

● MDS is No.1 Embedded Solution Provider covering every Embedded SW industry in Korea.

Boards

/SoC

SWSolution

Development Tool

Debugger

SW Testing

Design Automation

Mobile

Debugger

Mobile

Phone

SW

Mobile

Phone

Testing

MS

Windows

Embedded OS

Device

SW

Device

HW

Digital Device/CE

SW

Testing

Automotive

Electronic Control Solution

Defense/Aerospace

Embedded

OS

Stagnation

EICS

Growing

Industrial Computer

Develop

<Remark> The size of circle stands for gross profit.

19


Embedded solution company mds technology co ltd

Ⅲ. Business Domain & Products Ⅲ-3. Projection

● High feature digital devices such as smart phone and MID will be required more and more embedded solution.

● Many markets, especially automotive, are expected high in growth.

Revenue

FY08

FY12

CAGR

Market Analysis

EmbeddedDevelopment tool

  • SW upgrade would be a major issue for smart phone market

42.1

26.0

14.9

87.9

13%

12%

3%

12%

  • Demands for ECU development solutions and test automation expect

  • to be increased in defense and aerospace industry, especially automotive

  • industry

25.6

16.8

13.4

55.8

EmbeddedSW

  • Demands for commercial OS and its pricing are expected to increase

  • Development of new market such as MID and IPTV

  • Mobile solution market expects to be increased due to the growth of

  • smart phone market

  • Needs for communication module for digital device such as MID

Others

(EmbeddedBoard)

  • Special purpose chip such as UWB chip expects to be increased

  • We expect to be a major player in industrial computing market

Total

20

(Unit : KRW billion)


Embedded solution company mds technology co ltd

Contents

I

Trend of Embedded Industry

II

Company Overview

III

Business Domain & Products

IV

Competitive Edges

Investment Proposal

21


Embedded solution company mds technology co ltd

Ⅳ. Competitive Edges Ⅳ-1. Customer values

● Improving the effectiveness & productivity of our customers by providing a total solution

Improving the effectiveness & productivity of our customers

Goal

Cost Competitiveness

Time-to-market

Quality Assurance

Benefit

Providing Total Embedded Solution

Proven Embedded technology & Experiences

Know-how for SW Debugging & Testing

Fact

  • <Remark>

  • (ex) Samsung : MDS is providing specialized solutions to all divisions of Samsung

  • (Mobile, Electronic Appliance, SoC, Multimedia, etc division)

22


Embedded solution company mds technology co ltd

Ⅳ. Competitive Edges Ⅳ-2. Core technology

● Maintain the Highest Level of Technology and Quality by Embedded Engineers

Embedded SW Core Technology

Technology in Employment

SW testing

& quality assurance

Technical Support

(22%)

R&D (28%)

Platform development for digital devices

Window Embedded OS & Solution

172

persons

Automotive ECU

Control Logic

Mobile phone development solution

Technical Sales

(27%)

Others

(23%)

77% of employees having technology background

23


Embedded solution company mds technology co ltd

SW

(16%)

Ⅳ. Competitive Edges Ⅳ-3. Portfolio

● Stable revenue proportion from various customers in each industry

Revenue by industry (2008(E))

Revenue by industry (2006)

Industrial Computer (36%)

Mobile

(45%)

Mobile(24%)

Industrial Computer (38%)

Digital Device

(19%)

Digital Device

(38%)

Revenue by customer (2006)

Revenue by customer (2008(E))

Others-over 800companies (63%)

Other 1,000 Customers (45%)

Major 10 customers including Samsung ( 55%)

Samsung (26%)

LG

(11%)

Revenue by solution (2008(E))

Revenue by solution (2006)

Others (6%)

Others(6%)

Device Solution

(18%)

Device Solution (14%)

Development tool (46%)

Development tool (64%)

SW (30%)

24


Embedded solution company mds technology co ltd

Ⅳ. Competitive Edges Ⅳ-4. Global network

● Broad Customer network with more than 1,000 Customers

Mobile/Telecom

Digital Devices/

CE

SoC

Automotive

Government/R&D Center

University

Seoul National University

Yonsei University

Hanyang University

Korea University

25


Embedded solution company mds technology co ltd

Ⅳ. Competitive Edges Ⅳ-4. Global network

● Relationship with Worldwide Leading Embedded SW Vendors

OS /

SW Solution

Development Solution

SoC

DMB

26


Embedded solution company mds technology co ltd

Contents

I

Trend of Embedded Industry

II

Company Overview

III

Business Domain & Products

IV

Competitive Edges

Investment Proposal

27


Embedded solution company mds technology co ltd

Ⅴ. Investment Proposal Ⅴ-1. Market Dominance

● MDS is No.1 embedded solution company in Korean embedded industry which has a huge ripple effect

and growth potential

Since our competitors have been weaken or disappeared,

we expect to maintain the stronger leadership and market dominance.

High profitability

Growth potential

Stability

Fundamental

Maintains Operating Profit rate over 10%

Expands to various applications of embedded systems

Customers & Products

in various industries

Turnaround

Expects high growth of Operating Profit in 2008

(FY07 KRW 2.5 Bn  FY08 KRW 5.2 Bn)

  • Developing of embedded software for Defense & Aerospace industries

  • Rigid relationship with worldwide leading embedded solution partners including Microsoft

  • Developing Micro Projector

Issue

28


Embedded solution company mds technology co ltd

Ⅴ. Investment Proposal Ⅴ-2. Turnaround

● Financial achievement has been improved, but stock price is still staying low

(Stock price/KRW)

(Operating profit/KRW Billion)

Operating profit

Stock price

<Remark>

Black line means sum of 4 quarterly operating profit

29


Embedded solution company mds technology co ltd

Ⅴ. Investment proposal Ⅴ-3. Transaction overview

We are seeking financial investors who will purchase our stock from our corporation own stock fund.

Proposal

Stock purchase from our corporation own stock

The proposed investment is flexible and open for negotiation.

Our stock price has been devalued compared to net asset value per share.

Net asset value per share = \4,200, and the current stock price = \2,300 (as of Nov. 13)

Devaluation of stock price

Our stockholders have faced a lack of liquidity because the stock price has dropped sharply and the total asset turnover ratio is too low.

Lack of liquidity

The corporation own stock fund has 18% proportion of total outstanding shares. Thus, the number of floating stock has been extremely decreased.

High proportion of corporation own stock

30


Embedded solution company mds technology co ltd

Income Statement & Investment Index

Balance Sheet

※ Financial Statements

● EV/EBITDA is equal to 3 based on FY08(E) Sales Revenue and current stock price

(Unit : KRW Million)

(Unit : KRW Million)


  • Login