TechFaith - A Leader in Handset Software Design & ODM May, 2007

Transcription

1 TechFaith - A Leader in Handset Software Design & ODM May, 2007 Page 1

2 Disclaimer This presentation contains forward-looking statements. These statements are made under the ''safe harbor'' provisions of the U.S. Private Securities Litigation Reform Act of These forward-looking statements can be identified by terminology such as ''will,'' ''expects,'' ''anticipates,'' ''future,'' ''intends,'' ''plans,'' ''believes,'' ''estimates'' and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as TechFaith's strategic and operational plans, contain forwardlooking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forwardlooking statement. Potential risks and uncertainties include, but are not limited to, TechFaith's limited operating history, mobile handset brand owners' discontinuation or reduction of the use of independent design houses, TechFaith's ability to retain existing or attract additional international customers, TechFaith's earnings or margin declines, failure of competing against new and existing competitors, and other risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1, as amended. TechFaith does not undertake any obligation to update any forwardlooking statement, except as required under applicable law. Page 2

3 Table of Contents Company Profile Industry Evolution Market Opportunities Core Competence Products Development Page 3

4 China TechFaith: A Leader in Handset Software & Design Company History Overview Application Software Co. Jointly Invested by Qualcomm May 06 Business: Independent handset software and design Launch First 3G WCDMA/UMTS Handset Oct 05 solution provider NASDAQ IPO Launch First CDMA1X Handset May 05 Apr 05 Private Equity Funding Apr 04 Headquarters: Beijing, China Facilities: Beijing, Shanghai, Hangzhou Oversea Off.: US, Europe, Japan & Korea Employees: Approx. 1,400 Launched First 2.5G GSM Handset Sep 03 Engineers: Approx. 1,246 Founded Jul 02 NASDAQ Ticker: CNTF Page 4

5 Independent Design House: provides total handset software & design solutions Application Software Chipset Drivers on Different OS Frame work API MMI: Common Features MMI: Specific Features for Different Operators Hardware Design UI TechFaith owns customer relationship EMS is available for production if brand owner outsources manufacturing4 Customer Brand Owner EMS Production Line Industrial Design/Mechanical Design Page 5

7 Various Standards have been Evident in the Industry 2G 2.5G to 2.75G 3G 3.5G GSM GSM/GPRS EDGE WCDMA / UMTS Support all Cutting Edge Technologies Multi platforms CDMA1X CDMA 2000 EVDO HSDPA TD-SCDMA T3G Market Characteristic Open Market Open Market Operator Tailored Market Operator Tailored Market Operator Tailored Market Operator Tailored Market Page 7

8 Software Development Becomes the Key Value Driver 2G GSM Phone Features 2.5G GPRS Phone Features 3G UMTS&EVDO Phone Features Voice SMS Phone Book CSD PIM CSD/GPRS Camera MMS MP3/AAC U-Disk WAP MPEG4 Java H.264 PC Sync Sync-ML TTS Video Telephony A-GPS Mobile TV VOD On line game OCR 3G services require more complex software in handsets; Hardware components has decreased from 400 to 150; Trend will continue driven by the increased complexity of technology and features Software workload in Handset R&D 50% in 2G GSM 75% in 2.5G GPRS 85% in 3G UMTS&EVDO Page 8

9 Software Has Become the Most Valuable Part of Value Chain Application Software Drivers on Different OS Frame work API MMI: Common Features MMI: Specific Features for Different Operators U I Increasingly complex handset features and data services require more sophisticated software. Operators requiring more customization for each local market increases the burden of software development on brand owners. TechFaith is focused on software development. 55% of R&D staff are software engineers. Page 9

10 Operators Set Software Requirements Putting New Demands on Brand Owners Open Market Operator Tailored Market Global Market Operator A Operator N Software features set by brand owner for global market Market Shifts toward Operator Tailored Market Software features set by Operator A Software features set by Operator N Chipset Platform Chipset Platform Software set by brand owner can serve different operators Common features and OEM s unique look and feel can be reused across markets Operators require customized software, features, and look & feel Increase in development costs Page 10

11 ODMs and Brand Owners Need to Lower Costs increasingly complex technology platforms; Increasingly complex application software requirements; Operators requiring more customization for each local market increases the burden of software development on brand owners; shorter product life cycles. TechFaith s 1,400 engineers address these challenges for customers, allowing them: To reduce costs To support more advanced products including 3G and Smartphones To get products to market faster giving them a valuable competitive advantage in a fast-changing market Page 11

13 More Advanced Technologies after Transition Before Transition After Transition Full Spectrum of Advanced Technologies Simple Technology 2.5G: GSM, CDMA1X 2.5G GSM CDMA1X LINUX 3G: UMTS, HSDPA, EVDO, TD-SCDMA Smartphone: LINUX, WINDOWS Technology Combination: GSM+GSM GSM+CDMA1X WCDMA+GSM WCDMA+CDMA1X TD-SCDMA+GSM Mobile TV, VoIP Page 13

14 Diversified Business Models MultiMedia Solutions International Market ODM Material Sourcing Manufacture Support Feature Phones Global Market Windows Enablers: 3C Synergy over Windows Data Cards Global Market Global Market EMS Enterprise Solutions: Linux GPS/WiFi Application Software International Market Page 14

15 Fast Growing Customers Base Multinational Clients ( Design ) Multinational Brand Owners Chinese Brand Owners Page 15

16 Fast Growing Customers Base Multinational Clients (ODM) Oversea Operators Oversea Brands Chinese Brand Owners Page 16

18 Mutual Support of Four Divisions Handset R & D Reuse baseband HW/SW experiences Reuse external components like multimedia chip, Bluetooth, GPS, WiFi, high resolution camera etc. R&D experiences Feature Phones Smartphones Provide abundant applications to feature phone/smartphone products Application Software Page 18 Provide different HW platforms, OS and field tests to verify and validate SW applications

20 New Technology Development Timeline Launched To be Launched Roadmap HSUPA GSM/GPRS Philips TI FreeScale EDGE UMTS Phone HSDPA Phone Phone CDMA2000 1X EVDO CDMA1X Phone TD-SCDMA Phone Q1/05 Q2 Q3 Q4 Q1/06 Q2 Q3 Q4 07 Mass production date Page 20

21 TD-SCDMA Product Road Map Engineering Sample Build One with Auto Roaming Mass Production with Auto Roaming Engineering Sample Build One with VT Mass Production with VT Engineering Sample Build One Feature Phone Mass Production First TD Call TF Platform Ready Q3/05 Q4 Q1/06 Q2 Q3 Q4 Q1/07 Q2 Q3 Page 21

22 TechFaith Operator Experience Major Operators Network Standards Operators GSM/GPRS/EDGE CDMA1X EVDO WCDMA HSDPA China Mobile China Unicom VIVO Hutchison NTT DoCoMo APBW MOBILE-8 TIM SFERIA SKT KDDI TATA Telefonica NZ-TELECOM Page 22

23 PC Card, USB and Express Card Roadmap 3.5G Flying GOGO-PC Card USB-GOGO Express GOGO HSDPA Flying DO/DO+RORO USB RORO Express RORO Launched Developing Planned 3G Flying POPO CDMA 2000 EVDO WCDMA / UMTS 2.5G to 2.75G Flying VT Flying TP Flying 1810 USB Express TP CDMA1X Q1/07 Q2/07 Q3/07 Q4/07 Page 23

24 Modules Roadmap Launched 3.5G Flying HM Flying EO/EA HSDPA Developing Planned CDMA 2000 EVDO 3G Flying WM WCDMA / UMTS 2.5G to 2.75G Flying FT Flying DR Flying 800 Flying CM 450Mhz CDMA1X Q1/07 Q2/07 Q3/07 Q4/07 Page 24

25 CDMA1X Feature Phone Product Presentation MSM6800 EDO MSM6550 Eglet Lark MSM6020 CK C-Echo C-G Bravia MSM6025 C-161C C-162 GC-162 MSM6010 C-163 Ready 07Q1 07Q2 07Q3 07Q4 Page 25

26 Smartphone and PPC Phone Roadmap Smartphone Puma-T Puma-A Puma-A+ Vista Vanda Wafer Classic Pocket PC Paladin A P15 Paladin B Peak Lite Perai-E Perai-H Snake Touch Lens Pocket PC Perai Perai-850 Glider-T PAX Python Moffett Taco Dual Modes Or Cards Vertical Enterprise Cynthia Puffin WVGA Display Launched Orange Pluto Lampson Glider-H 2007 Q Q Q3 Page 26 Glider-Pana

27 Examples of Application Software Messaging SMS/EMS, MMS, , Instant Messaging Multimedia Camera, Camcorder, Media Player, Streaming Video/Audio, Mobile TV Information Browser, Location Based Service, Content Management, Security/DRM Personal Information Management Calendar, Notebook, Task List, PC Sync Tool, Connectivity IP Multimedia Subsystem VoIP, PoC, Presence, Content Sharing Page 27

28 TechFaith s New Office Building Total Area: 3.25 Acres Floor Area: 4,000 sq m (40,000 sq ft) Floors: 6 Page 28