ADB Group Investor Day 2007

Transcription

1 ADB Group Investor Day 2007 Brussels, November 13, 2007

2 This presentation contains forward-looking statements. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Advanced Digital Broadcast Holdings SA undertakes no obligation to publicly update or revise any forward-looking statements. Advanced Digital Broadcast Holdings SA reserves the right to amend the information at any time without prior notice. The information contained in this presentation may not be considered as being a substitute for economic, legal, tax or other advice and you are cautioned to base investment decisions or other decisions on the content of this presentation. You are recommended to consult your investment advisers or other advisers prior to making any decision. This presentation is not an offer of securities for sale nor a solicitation to invest in Advanced Digital Broadcast Holdings SA securities. In particular, it is not an offer of securities for sale in the United States of America, its territories and possessions. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Advanced Digital Broadcast Holdings S.A. does not intend to register its securities in the United States of America. 2

3 What you will hear about today Strategy Markets Innovation Solutions Enhanced Digital TV experience 3

4 Agenda 08:30 Introduction: ADB Group strategy F. Pogodalla 09:00 STB: market opportunities and K. Tempest-Mitchell competitive advantage 10:00 From MW licensing to systems D. McElhatten 11:00 Break 11:15 Technology and content A. Caltabiano 12:00 Lunch and demonstrations 13:15 Bus departure 14:00 Visit to customer 15:45 Bus return 16:30 Conclusion A. Rybicki 17:00 End 4

5 ADB Group strategy

6 We are not in the set-top box business 6

7 The digital multimedia industry revolution Equipment driven Analog TV Little content Content driven Analog TV New content Equipment driven Digital gadgets Little new content Content driven Digital gadgets New content Content & media Drive eachother ANALOG ERA DIGITAL ERA 7

8 At the beginning life was simple 8

9 The premium TV age 9

10 The digital age 10

11 The internet age 11

12 The age of connectivity 12

13 The rise of internet as content provider Time spent on internet rises to the expense of other media 13

14 The consumer s perspective What I want When I want Where I want 14

15 How to achieve What I want When I want When I want Interactive IP, Hybrid Open-standard MW User, new content On demand PVR VoD, PushVoD Aggregation Where I want Ubiquitous Where I want Connectivity Home Networking Multi-platform 15

16 ADB Group offer Convergence New contents New content Multiplatform content New Initiatives Home NW Peer-to-Peer MHP SW & Services EGG PushVOD Enhanced services IP Digital TV equipment MPEG4 HD Hybrid Reception and display technology 16

17 ADB Group s strategic positioning Content Content production production Content Content aggregation aggregation + + Services Services Channel Channel aggregation aggregation Distribution Distribution Platforms Platforms HW HW + + SW SW Shows Channels Operators Infrastructure carrier Supplier ADB Group involvement 17

18 Delivering on fundamental strategy Progress since FY2004 (last before IPO) Deliver growth through customer acquisition 15 new customers Focus on high-end products Focus on high-growth, high-value segments Reduce customer dependency 49% of revenue from HD, 43% of shipments in High-End ASP ~30% higher IPTV: from 0% to 22% of revenue Cable: from 31% to 38% of revenue Terrestrial: from 49% to 10% of revenue Top 10 from 81% 73%-78% of revenue (FY06-H107) No customer/market represent 20% of revenue Develop Americas business From 0% to 11% of revenue Increase share of non-stb revenue From 2% to 8% of revenue Execution & profitability 2006: HD introduction delays, Italian DTT collapse 2007: European manufacturing, supply-chain 18

19 We are in the business of enhanced digital TV experience 19

20 Set-top boxes solutions: market opportunities and competitive advantage Karl Tempest-Mitchell Senior Vice President, Sales and Marketing November 2007

21 Where we are today

22 Revenue Split as ADB Group Revenue split by region Total H Revenue: $122m Revenue split by category Total H Revenue: $122m Asia 3% ANZ 2% Americas 11% N. I. ** 1% SW&S * 7% SW&S * 7% IPTV 23% IPTV 22% Satellite 27% Satellite 22% MEA 17% Cable 38% Cable 38% Europe 67% Terrestrial 5% 2006 * SW & S: Software and Services ** N. I.: New Initiatives Terrestrial 10% H ADB Group Member

23 Focus on mid-range/high-end 2007 Units shipment split Market CAGR High-end 43% High-end 21% Mid-range 36% High-end: 15-20% Mid-range: 0-5% HD and/or PVR MPEG4 SD, interactive, MW Mid-range 57% Low-end 43% Low-end: 5-10% Zappers ADB Group H1-2007A WW Market 2007E Source: IMS Research, ADB Group estimates ADB Group Member

24 Established Global Market Multimedia ITI Neovision Grundig Hansenet/Alice Telenet INDI Teleclub Cablecom Telefonica O2 Czech Republic TP5 Italian Retail Island Media Telefonica Border States OCAP Dev DVB-C DVB-S DVB-T IPTV Auna/ONO Digital Cable Group TeleGeneve Fastweb DBS (Yes) HOT Starhub TrueVisions Austar Telefonica Chile Austar Hills TelstraClear ADB Group Member

25 Spread of technology DVB-T DVB-S2 H.264 SD H.264 HD H.264, IPTV DOCSIS 2.0+, 3.0 DVB-C DVB-T Low Cost H.264 SD H.264, IPTV IPTV Hybrid IPTV DVB-S2 DOCSIS 2.0 DVB-S ADB Group Member

26 Customer Base & Market Position Diverse Customer Portfolio Consistent spread across global markets Balanced technology mix across all platforms/markets Not reliant on one major customer or technology Substantial scope & scale Operators have not reached market penetration = opportunity Customers have not reached technical/product maturity = opportunity New markets are opening e.g. CEE, digital switch over = opportunity Full range of solutions to meet market opportunities Expertise across all digital platforms - Cable, DTT, IPTV, Satellite IP expertise presents opportunity in convergence IP+DTT/H, cable Focus on applications and solutions provides enhanced revenue opportunities for ADB and Group PushVoD systems, home networking, OTTTV ADB Group Member

27 Mission and Vision

28 Strategic Vision and Mission To be the leading innovator and preferred partner for enabling the delivery of high value, digital television services into and throughout the home. To provide operators of digital television-based services with innovative, relevant, high quality, reliable, technology solutions that meet their specific business requirements and timescales through proactive, yet responsive consultation. ADB Group Member

29 What do we mean by solution? Broadcast & on-demand services hybrid, content, interactivity Revenue generating products Connected device Two-way service provisioning Application development and integration Middleware integration Driver and operating system development Hardware design and integration ADB Group Member

30 Connected World for content delivery/sharing Broadcast The Internet IP ADB Group Member

31 Value Proposition Dedicated to the enhancement of our customers revenues through the timely introduction of reliable, value for money, state-of-the-art technology, delivered by a proactive and responsive team. ADB Group Member

32 Differentiating ADB Fully integrated PayTV systems Closed specification PayTV Systems Traditional competition ADB sweet spot Free specification PayTV Systems Far-East competition Basic PayTV systems ADB Group Member

33 Competitive advantage brand values Customer driven Innovative specialist Committed Trustworthy Solutions relevant and appropriate to unique customer needs Meet bespoke requirements through flexible product platforms Value for money: reliable, high quality technology, delivered on-time Superior pre- and after-sales service and support Expert in digital television technology only Superior, leading-edge technology Excellence in software integration, unique end-to-end expertise Experienced in real world deployments across all platforms Fast to market to ensure that we optimize customer revenues React to market & customer needs in an efficient & timely manner Push the boundaries to deliver mutual goals Clarity in communication internally and externally Open and honest culture, behaving with integrity Listening and responding appropriately to get the right results Can do & flexible attitude - always strive for an appropriate solution ADB Group Member

34 Competitive advantage key messages Dedicated specialist and trusted advisor Innovation and technical excellence Speed to market Expert i.e. numerous technology deployments in mass market Experienced i.e. diverse customer base, multiple markets Multiplatform i.e. deployments across all major platforms Complex integration/stabilization capability i.e. new technology Series of market firsts for new technology i.e. MHP, hybrid, IPTV End-to-end software understanding i.e. fast integration, optimized Quality and reliability i.e. dedicated local support & issue resolution First to market i.e. AVC, HD, hybrid, IPTV, IPTV-DVR Multiple industry awards for technology i.e. CSI, IPTVWF Flexibility Superior customer support Core platforms, bespoke products to customer requirements Technology agnostic i.e. Multiple products launched to multiple networks globally i.e. working with multiple partners to deliver best-of-breed solution Local customer care centres i.e. service centre located in close vicinity of customer operation i.e. strong service network for in-warranty and out-of-warranty support ADB Group Member

35 Technology strength IPTV World Series Awards, IPTV World Forum 2007 WINNER Best Consumer Premise Technology, 3800TW IP Cable & Satellite International, Product of the Year Awards 2006 WINNER Best Customer Premise Technology, 3800TW IP Cable & Satellite International, Product of the Year Awards 2005 RUNNER-UP Best Customer Premise Technology, 7800TW IP Cable & Satellite International, Product of the Year Awards 2004 WINNER Best Customer Premise Technology 3100TW IP RUNNER-UP: Best Interactive TV Technology 3100TW IP Cable & Satellite International, Product of the Year Awards 2003 WINNER Best Interactive TV Technology, i-can3000t DTT ADB Group Member

36 Market Opportunity and Strategy

37 Digital TV penetration growing everywhere Eastern Europe USA & Canada CAGR: 8% Western Europe CAGR: 12% CAGR: 22% Asia CAGR: 19% Middle East & Africa Latin America CAGR: 23% Source: IMS Research, ADB Group estimates CAGR: 17% Non Digital TV Households (million) Digital TV Households (million) ADB Group Member Pacific CAGR: 9%

38 Market Growth Drivers & Dynamics Digitalization of content, equipment and distribution Analogue to digital conversion Increased demand for new revenue generating services and higher quality HDTV, VOD, DVR, Interactivity Intensive competition creates demand for technology and applications to capture customer, enhance revenue reduce churn Regulators mandating analogue switch-off Multiple STBs per home for home networking/content sharing Convergence of content and technology into single platform for delivery of content from multiple channels hybrid focus Bidding alliances ADB Group Member

39 Regional Strategy Summary EMEA Established customer relationships 10+ years strong account development Product migration SD/MPEG-2 to SD/MPEG-4 to HD/MPEG-4 to DVR New market opportunities through digital switch over/analogue conversion The Americas New legislation opens door to open standard cable market Strong foundation supporting software developers/msos with OCAP Strong distribution network/customer support for IOC IPTV market Asia Pacific Dual STB strategy mass market STB and premium STB Value add through system sell hardware, software, advanced applications ADB Group Member

40 EMEA Strategy IPTV Strong partnerships pioneering Tier 1 telcos and broadband operators Consolidation of networks positions ADB strongly due to early market entry Standardised product allows sell through to tier 2/3 and emerging markets Cable Consolidation of networks positions ADB strongly Customers migrating to dual product platforms interactive & PVR Migration from analogue to digital and SD to HD/MPEG-4 Satellite Migration towards IP enriched services and hybrid platforms ITI and Yes Strong positioning due to previous experience 100% Ethernet support Migrating customer base from MPEG-2/SD MPEG-4/HD STB-DVR Terrestrial Analogue to digital migration is being driven at government level Emergence of 2 x platforms zapper, interactive Addressing market through strong distribution partners ADB Group Member

41 Americas Strategy IPTV Actively selling to Tier 2/3 through ecosystem 75 IOCs to date Launched a complete IPTV product line STB, DVR, SD/AVC bedroom box DLNA/HCNA/UPnP compliance for content sharing throughout the home Ahead of the competition with IPTV HD DVR Strong distribution throughout the US via Border States Electric Cable Focused on Tier1 with OpenCable HD MPEG-4 product Fully compliant OpenCable product in CableLabs certification Tier3 cable ops same product as Europe when they have CableCard waivers Business Satellite HD MPEG4 & DVB-S2, we have the MHP product in production today ADB Group Member

42 Capitalise on strong, multiple B2B channels Operator Systems - Direct Digital set-top boxes (STBs) cable, satellite, terrestrial and telco operators System and software integration Technical support Consumer Products - Distribution i-can & ADB branded STBs to distributors who sell to retail stores STBs to third party consumer brands who have their own retail distribution channel e.g. TLF-3800TW Telefonica, ADB-6820C, US cable e.g. ican-5100tx, Italy ADB-3800W BSE, USA ADB Group Member

43 Positioned for success Strong Customer Base Established accounts Strong account development potential Excellent Spread across markets and platforms Strong Technology portfolio Multi-platform Products positioned to capitalise on market potential AVC, hybrid, home networking, HD, DVR Strong Brand Image Strong positioning in media and analyst community ADB ranked global leader in hybrid by Infonetics Brand exposure growing in new markets and segments Dedicated Team Experienced sales force Strong, established distribution partnerships CCD division to support customer requirements ADB Group Member

44 Thank you ADB Group Member

45 Osmosys Company Confidential

46 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Growth through Innovation & Core Technology Expansion Today s Agenda: Company Snapshot Industry Snapshot Review of our Core Products Way Forward in 2008

47 9-Nov-07 Osmosys - The Company Snapshot Osmosys is a leading provider of JAVA based middleware, applications, systems and services to the interactive television market. Our principle products are deployed in over 15 counties worldwide. Osmosys is the undisputed leader in the development & deployment of MHP across cable, satellite, terrestrial and IP networks with approx. 4 millions of homes currently served

48 9-Nov-07 Osmosys - The Company Snapshot Osmosys licenses a full portfolio of software products, applications, systems and services for the interactive TV market Headquartered in Geneva Switzerland, with engineering resources in Poland & the US, Osmosys also partners their technology with their sister company in the US, Vidiom Systems who is the leading provider of OCAP solutions to the US cable market.

49 9-Nov-07 Osmosys Company Snapshot (Historical) Historical Positioning / Perception: Osmosys was viewed solely as a Middleware vendor in a crowded market and solely as a non independent extension to ADB hardware group. Key Objective: Grow the business and re-position Osmosys by extending the business proposition beyond the core Middleware foundation to a wide variety of new products, platforms, markets, and territories Solution: Implement the MASS strategy

50 9-Nov-07 Osmosys New Positioning - The MASS Proposition Objective: Extend the business proposition beyond the core Middleware foundation to a variety of new variety of new products, platforms, markets, and territories Solution: Implement a MASS strategy, where MASS = M = middleware A = applications S = systems S = services

51 9-Nov-07 Osmosys Integration of MASS = Solutions Systems Services Middleware Applications Therefore, we are in the Interactive TV Solutions Business

52 9-Nov-07 Osmosys Growth for the Future Within each business segment: Middleware, Applications, Systems and Services We are capitalizing on our core Intellectual Property and experiencing new growth: Growth in New Products Growth in New Platforms Growth in New Markets We architect our future by an innovative software design that allows for new opportunities, with only an incremental investment

53 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Industry Snapshot The State of Interactivity

54 9-Nov-07 Osmosys European MHP Market Present > 8 million 2m Green = Pre-launch work 0m 8m Blue = MHP versions in market Black = Market Launches Orange = MHP deployments MHP MHP DVR MHP HD and Hybrid IPTV MHP IPTV Push VOD PVR MHP m MHP 1.0 MHP MHP m 2m Pre-launch phase Korea Launch MHP 0.8 Proof of concept MHP 1.0 Specification MHP 1.1 Specification Finland Launch Italy Launch Italy Takeoff Belgium Launch Austria Launch Poland Launch

55 9-Nov-07 GEM Market > 15 million Add ~7M Blu-ray devices (inc PS3) Add 500k OCAP devices 2m Green = Pre-launch work 0m 8m Blue = MHP versions in market Black = Market Launches Orange = MHP deployments MHP MHP MHP DVR MHP HD and Hybrid IPTV MHP IPTV Push VOD PVR Present > 8 million 6m MHP 1.0 MHP MHP m 2m Pre-launch phase Korea Launch MHP 0.8 Proof of concept MHP 1.0 Specification MHP 1.1 Specification Finland Launch Italy Launch Italy Takeoff Belgium Launch Austria Launch Poland Launch

56 9-Nov-07 Industry Snapshot - Interactive TV Puzzle Pieces 2007 Extra revenue opportunities + Storage local/external/remote + H.264 / HD + Broadband + Smart card reader + Return channel + Middleware Zapper STBs and IDTVs

57 9-Nov-07 Industry Snapshot - First Tier of Services Basic Interactivity

58 9-Nov-07 Industry Snapshot - Basic Interactivity Main Features Low cost DVB-MHP 1.0 interactive digital terrestrial TV decoder 5 million STBs sold in Italy since 2004 Conditional Access support Retail price ~ System DVB-Terrestrial STM s STi5107 CPU & MPEG2 decoder 40 MB SDRAM & 8 MB Flash Smart Card reader Módem v.92

59 9-Nov-07 Industry Snapshot Standard STB Main Features MHP Following Austrian DTT specifications Conditional Access support Retail price ~ System DVB-Terrestrial STM s STi5100 CPU & MPEG2 decoder 64 MB SDRAM & 8-16 MB Flash Smart Card reader Ethernet

60 9-Nov-07 Industry Snapshot /2008 standard HD STB Main Features MHP Following Norwegian DTT specifications Conditional Access support HDTV / H264 Retail price < System DVB-Terrestrial STM s STi7100 CPU & MPEG2/4 decoder 192 MB SDRAM & 32 MB Flash Smart Card reader Ethernet

61 9-Nov-07 Industry Snapshot - Interactive HDTV PVR Main Features MHP Conditional Access support HDTV / H264 System DVB-Terrestrial STM s STi7109 CPU & MPEG2/4 decoder 192 MB SDRAM & 32 MB Flash HDD (180GB-250GB) 2xSmart Card reader // 2xUSB 2.0 Ethernet

62 9-Nov-07 Industry Snapshot - Interactive Content Interactivity = Incremental Revenue for Operator Source: BBC

63 9-Nov-07 Industry Snapshot - Interactive TV Puzzle Pieces [2007 edition] Extra revenue opportunities + Storage local/external/remote + H.264 / HD + Broadband + Smart card reader + Return channel + Middleware Zapper STBs and IDTVs

64 9-Nov-07 Industry Snapshot Top Level Summary Here s the Good News! Trends in the industry are working in the favor of Osmosys as the demand for interactive solutions is on the rise at all basic tiers of service: At the Basic Tier, as operators move from analog to digital with a set of simple interactive services On the High End, with Hybrid, HD, PVR solutions that call for Home Networking and Targeted Content being Pushed and Pulled to Households. For each Level of Service Osmosys has new and existing Products. Interactivity is all about Access to more and more content from a wide array of sources. At Osmosys we are part of this evolution and revolution!

65 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Product Review: Middleware The First Domino and Key to Growth

66 9-Nov-07 Osmosys Middleware The First Domino Middleware is the brains of the box, but ultimately needs interactive applications and service side delivery systems and solutions, to really delivery on the promise. A non Proprietary, Open Standard Middleware is key for future expansion and cross compatibility and provides the foundation for future interactive services to be deployed. While this Licensing business appears strong in the years ahead, Osmosys needs to delivery Middleware plus a suite of applications and server side solutions to provide a way to generate recurring revenue and fuel growth

67 9-Nov-07 Osmosys Middleware Source Code Pool Over 4 million lines of code: but with flexible, and open architecture it can adapt to many markets

68 9-Nov-07 Osmosys Covering The Global GEM Ecosystem GEM applications OCAP

69 9-Nov-07 Osmosys Examples of Ported Middleware Chipsets Broadcom 97110, 97111, Conexant (ARM 920) IBM ST-551x, 510x, 5528, 710x x86 (PC, SDK) Operating Systems Proprietary OS (Adb Artos) OS20 (ST) Linux Nucleus Windows

70 9-Nov-07 Osmosys - Middleware It Began with an Open Standard MHP

71 9-Nov-07 Now Expanding to new products First for middleware MHP OCAP GEM BD-J Blu-ray

72 9-Nov-07 Expanding to new Products (Applications) then for applications MHP OCAP GEM BD-J Blu-ray

73 9-Nov-07 Reaching new Devices MHP OCAP GEM BD-J Blu-ray

74 9-Nov-07 Now stretching into new Platforms: IPTV MHP & MHP-IPTV OCAP GEM & GEM-IPTV BD-J Blu-ray

75 9-Nov-07 Reaching to new markets

76 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Product Review: Systems Solutions The Way Forward

77 9-Nov-07 Now Expanding into System Solutions (ISM) ism Interactive Service Manager works with STB client to provide TV services

78 9-Nov-07 Now Expanding into System Solutions (PushVOD) PushVOD PushVOD system delivers content to STB client application

79 9-Nov-07 Now Expanding into Internet Protocol Based Applications Access IP Apps Portal IP Apps Portal delivers new or updated applications to the STB client via Internet (IP)

80 9-Nov-07 Building a portfolio of Spot Solutions Head End pvod ism EPGgen IP Apps portal Devices Covering the end-to-end chain: Building where we can Partnering where it is advantageous To build a capability for a complete one-stop-shop

81 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Product Review: Applications Content Access, Acquisition & Management

82 9-Nov-07 Osmosys - On Demand

83 9-Nov-07 Osmosys PVR

84 9-Nov-07 Osmosys Access - Internet Protocol Portal

85 9-Nov-07 Osmosys - Internet Radio on STB Internet Radio: Over 7000 radio stations now on your TV

86 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Product Review: EGG EGG - Enhanced Graphics engine 3D Graphics for a 2D World

87 9-Nov-07 Osmosys EGG = Enhanced Graphics engine EGG is a small footprint, platform independent, library that transforms 2D Display Devices to 3D EGG provides faster, smoother graphics EGG can create revolutionary user interfaces EGG can deliver a 3D experience on low cost hardware EGG is a transformational technology for Graphical User Interfaces from TV s, STB s, DVD / Blu-Ray & Mobile Devices

88 9-Nov-07 Osmosys EGG Highlights Unprecedented Interest and Press Coverage 3 Patents Filed, More in Development.. Osmosys agreed to license STMicroelectronics their EGG technology for incorporation into future microprocessors. EGG to be submitted to Cable labs, as an OCAP extension

89 9-Nov-07 OSMOSYS Sample Press Coverage EGG Inspires a 3D Graphics Revolution Broadband TV News Cable & Satellite Cable & Satellite International Hatching a plot, Scramble to see EGG at Osmosys Osmosys gives birth to EGG for 3D graphics The STB may become gaming platform as Osmosys unveils 3D graphics engine New Video Technology IBC: Osmosys highlights STB graphics advances and push-vod Asia Corporate News Euroinvestor.co.uk Osmosys Brings Revolutionary Digital TV Solutions To IBC Osmosys EGG Solution Selected By STMicroelectronics

90 9-Nov-07 Osmosys - Why there is Demand for EGG Look at PC/game appliances!

91 9-Nov-07 Osmosys The world before EGG Examples of existing user interfaces

92 9-Nov-07 Osmosys E.G.G. Example of EGG enabled user interface

93 9-Nov-07 Osmosys E.G.G. Examples of Eggified user interfaces

94 9-Nov-07 Osmosys EGG Video Seeing is Believing (Play the Video )

95 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Product Review: Blu-ray Blu-ray Disc Java (BD-J) Extending our IP into new markets

96 9-Nov-07 Osmosys Overview of Blu-ray Technology Blu-ray the Next generation of optical storage solutions for consumer Electronics /PC products/ game consoles. It offers : Rich Interactivity Graphics: High-Definition, true-color graphics with effects Navigation: Highly flexible, supports wide variety of content Connectivity: Supports many new use cases, i.e., content updates Best Possible Quality Audio and Video Video: High Def video up to 40Mbps, including 1920x1080@24p Audio: Lossless multi-channel audio up to 24Mbps Subtitles: High Definition with true-color

97 9-Nov-07 Osmosys BD-Java stack architecture The same for MHP, OCAP and BD-J

98 9-Nov-07 Osmosys Blu-Ray Partners Osmosys has a partnership announced with HitachiSoft in Japan New dialogue with a range of Silicon Manufacturers, CE Manufactures, and Content Providers are on-going

99 9-Nov-07 Osmosys Blu-Ray Ray Seeing is Believing (Play the Video )

100 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Product Review: PushVOD System Affordable Revenue Generating Solutions for Network Operators

101 9-Nov-07 Osmosys PushVOD System Playout Center pvod Movies pvod Descriptions pvod Trailers Content pvod Server Local DB MUX & CAS DVB-S2 ADB PVR STB MPEG2, H.264, HDTV Schedule Bitrate Data pvod Manager Movie Preview Screen

102 Osmosys PushVOD System Key Attributes PushVOD System: Cost effective and easy to deploy system Conditional Access independent solution Distribution of any digital content Adjustable bitrate enables speed change of the content delivery Customer Example ITI Group Poland s leading media and entertainment group active in television and production. End of 2006 launched satelite platform N Additional information: First operating solution which delivers H.264 HDTV AC3 content. In some scenarios this is the only known method to deliver HD content.

103 9-Nov-07 Osmosys PushVOD System Operator DVR module PushVOD system sends content to subscribers hard drive enabled Set Top Box (DVR/ PVR) Operators can evaluate every STB in the network and push selected content to individual users. DVR module calculates HDD disc space usage, enabling operator with predictive usage tools.

104 9-Nov-07 Osmosys - PushVOD Client ITI s N Service (Poland)

105 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Product Review Interactive System Manager Advanced Content Provisioning

106 Osmosys ISM - Interactive Systems Manager ISM enables operators and service providers to provide quality TV, interactive media and enhanced services to their subscribers As a middleware server it can fulfill and interface to any operator s business model. Customer Multimedia Polska one of the biggest cable operators in Poland, with 600k subscribers, Nov 06 IPO on Warsaw Stock Exchange. Multimedia Polska owns networks in 150 towns throughout the country Additional information First cable operator who deliver H.264 HDTV AC3 content in Poland First cable operator who deliver VOD in Poland

107 9-Nov-07 Osmosys ISM Cable Environment CAS CRM / Biling system VOD Manager Ext. Systems Interfaces ism Presets Module STB Provisioning VOD Assets VOD Authorisation/ Transaction Packets / Rights Subscribers / Accounts STB sn / #net node DVB IP IP network DVB-C network RTSP RJ45 DVB-C STB RF in ism DB IP QAM Elements delivered by Osmosys VOD server Multicast server

108 Osmosys / MMP Architecture Elements delivered by Osmosys

109 9-Nov-07 World Leader in Open Standards for Digital Television Solutions Osmosys Summary Looking Ahead to

110 9-Nov-07 Osmosys - Summary The Future looks very bright as Osmosys is very well positioned to capitalize on the following market trends: Rapid Adoption of HD and DVR s Rapid Growth of Blu-Ray Rapid Growth in the IPTV Market Adoption & Proliferation of OCAP by US Cable Market Integration of Broadcast and Broadband Networks The Government Mandated Conversions of Analog to Digital Growth of New Interactive TV Markets Eastern Europe, Asia Need for 3D solutions on Consumer Devices and Platforms Demand for Operator End to End System Solutions

111 9-Nov-07 Osmosys - Summary Looking Forward to 2008: We at Osmosys look for double digit growth to continue as we expand our core IP to new opportunities products, platforms, markets and territories while capitalizing on our new technical innovations, inclusive of EGG. In order to grow this business even more rapidly we are evaluating some key re-seller relationships that can extend our products even further, without a dramatic increase in headcount or overhead. Osmosys: Growth through Innovation & Core Technology Expansion

112 Company Confidential Simple

113 Simple in Brief Technology and Media company for creation and production of 360 Tv formats for the Italian and international markets Creation of new content distribution and management technologies Strong in broadcasting & media technology which enables: New Platform deployment New way of distributing & accessing content link Platform to content & service to add value to the hardware Simple s Target - Strong Presence in Italy: -Broadcast: Mediaset, Rai, Telecom Italia -Communications: Barilla, Puntoshop Now promoting outside Italy Company Confidential

114 Value chain: from contents to platforms Content Production Content Aggregator & SERVICE Channel Aggregator DISTRIBUTION PLATFORMS (HW+SW) Shows Channels Operators Infrastructure Carrier (NET) Manufacturer HW (es. decoder, ) SW Simple completes the soft side of the Group s global offer: content creation and production, analog and digital contents management, provider of interactive services, high standard media and technology strategies for broadband, mobile and tv. Company Confidential

115 Value Proposition: one-stop shop for value-adding technocontent! Technology Innovation: revolutionary Video On Demand System based on Peer2Peer protocols multiplatform portal: provides access to contents on any platform, any time, anywhere near Live Video Clips and MMS for mobile phone All technologies are developed and owned by Simple Mobile Content creation: tv formats aiming to a business model at 360 several tv formats already have video pilots Sat Advertising Service: Delivery live, Near live multiplatform IP portal creation & management DTT Syndication Web Cinema Company Confidential

116 Peer-to-Peer VoD Service & Technology Customers/ Targets: National Broadcaster Content Management Server aggregates P2PVoD content in a Portal that provides: - P2PTV Guide - Thematic channels - RSS Aggregation The portal is accessible via a specific Browser resident on the STB. Italian Telco Content download is delegated to a P2PClient application that transparently runs in background 24x7 Status: Argentinian Telco Clean-room BitTorrent protocol implementation terminated. Now introducing: - EGG-based user interface - Progressive download and play - Remote control via web and mobile Downloaded content is stored in a dedicated HDD partition that is secured by means of: - Unique association to the STB - 3DES-based encryption - Custom filesystem Content itself can be protected by means of a DRM or CAS solution to be evaluated Company Confidential

117 Broadcasting Content, management & Delivery Customer: Status: National Broadcaster Delivered Video Management Description: Design and development of a DVR engine that allows different Mediaset BUs to: Perform legal (90 days) compliance recording Visually access and compare compare audience data Certificate advertising blocks audience Create new content from the recorded library Search the whole archive with 10+ different browsing schemes Video Access Multiplatform Description: Design and development of a multi-platform rich-media portal running on: ADB 3800TX Hybrid box Windows PC Windows Mobile PDA Symbian Series 60 The portal allows the user to access and use his personalized contents using different devices that share a single family feeling to make him comfortable with his TV consumption wherever and whenever. Company Confidential

118 Live + Near-live football Customer: Status: Prospects: National Broadcaster Architecture fully implemented: waiting for TI to deliver fiber for contribution Many Features: Full Digital: no recompression or analog conversion no noise introduction best output quality HD Ready: high quality sources best output quality 1 workstation per stream: no delays due to transfer and conversion time Fully remotable: no manual operation on receivers, switches and servers fast switchover Fast: less then 5 minutes per clip (including voiceover, graphics rendering and final encoding) Scalable: Easy to add any number of additional sources Multi-platform: Easy to add and remote new encoders Fully redundant: Every component of the architecture can be redundant in order to guarantee 24x7 operations Possibility to push clips to a user s PVR STB: potential synergy with ADB STB Company Confidential

119 PuntoShop (Happyisland) Dating portal Customer: Television home shopping. Second major Adv spender in Italy Status: Project started in mid-september Dating portal features: Matchmaking (auto search based on user-specified criteria) Cupid mail (matchmaking results auto-sending) Speed Dating Chat Audio/Video Instant Messaging Search: * Quick search * Advanced search * Sorting and search narrowing Presence ("Online/Offline" user status) Forum, News, Friends List, Guestbook Gmail Like Mailbox Personal Media Gallery (audio, video and pictures albums and categories) Personal Blog Invite / tell a friend CMS for Home Page Billing via PayPal altri sistemi di billing integrabili Smart shopping cart con history Company Confidential

120 RAI Application Launcher Customer: Status: National Broadcaster Delivered New MHP application launcher to be deployed on RAI muxes. Lightweight MHP Full conformance Application listing priority Application logos Advertising spaces Integrated user-click-tracking subsystem Fully managed thru web-based backend application interfaced to the DSM-CC Carousel Generator. Company Confidential

121 SIMPLE Production: the circle of content and technology Production house developing new formats aiming to a business model at 360 (beyond TV: mobile phone, web, radio, etc.). Original Formats are defined to maximize the revenues generated by any platform and new media that is used. Targets Increase Transactions The Format Creation is driven by 3 main ingredients: FUN, COMMUNITY, REVENUE generation. The TARGET is to evolve spectators into user/spectators involving them up to create a strong brand community in which they recognize. The content generates new technology and enable the actual market maximizing the profit. Increase Stickiness Increase Subscribers Worldwide: the international dimension of SIMPLE allows the maximum re-use of its products still in the full respect of the different local languages and cultures. Company Confidential

122 Sesonality - Productions Pilots planning phases Vs Market 4 months January February March April Phases: 4 moths June July August September October New pilots planning New pilots production Finishing and brochures Present to Broadcasters, at Exhibitions (MIPCOM in April) New pilots planning New pilots production Finishing and brochure Present to Broadcasters, at Exhibitions (MIPCOM in October) Scheduling September onwards Scheduling January onwards Company Confidential

123 TV Production and Formats Simple owns a portfolio of more than 100 formats, the majority of which unique and innovative. Several have already video pilots and the majority are defined for multi-platform use. Simple is ready to start production at any time in Italy, USA, Canada, Latin America, Poland, France, Spain, Portugal, Turkey. Format (Gino s food tour, Sport Index Decamper, All in the family) Film Multimedia Interactive Kids show (E.g. Gino s Food Tour) Game show (E.g. Tilt, Taxxxi, All in the family) Fiction (Saints-Men-Heroes, Black Stories with G. Giannini) Sitcom (Guest 3+1) Company Confidential

124 WA$TED Tv Format WA$TED! Genre: Reality edutainment show Duration: 48 WA$TED! is an exciting new series that proves you don t have to be extreme to be green. From solar power to heat pumps, the WA$TED! team take your average household of eco horrors and turn it into a clean green haven, saving families serious cash in the process. WA$TED! Tv Program Spr coni Interactive Application Company Confidential

125 Barilla Alixir Temporary Stores Description: Designing interactive experiences for temporary stores. Simple provides full technology platform. Alixir temporary stores is a special place where people are invited to explore the world of wellness and Alixir products. Company Confidential

126 Interactive Poker - Viewer/Player Customer: Television network (syndacation) The viewer can play virtually with the competitors by simply buying his cards. When he wins, he receives a prize. He can choose whether to continue playing and buying new cards. In every round there is a price. SEI PRONTO PER GIOCARE? Status: On going Participation: - viewing SMS from audience - viewing the number of players - viewing the number of the winners in every match Game: - via Sms - via MMS (with images of the cards bought by the viewer) - via itv - on website (personal page, charts, statistics) ADDED VALUE TO ADB TERMINALS TV, itv (DTT/IPtv) Mobile Web Company Confidential

127 Seeking synergies with sister companies a few examples Video Access Multiplatform on ADB STB ADB STB is part of the user s homogenous content access platforms Interactive Poker viewer/player Value-adding, differentiating feature for ADB STB Peer-to-Peer VoD platform Value-adding, differentiating service for operators, available on ADB STB Improved user interface with Osmosys EGG Company Confidential

128 Media but a lot more Company Confidential

129 Company Confidential Thanks!