BC Supply Chain Council Meeting April 19 th Agenda. TIR Company Overview Product Demo Destiny Off-shore Transition Lexel Off-shore Transition

Transcription

1 BC Supply Chain Council Meeting April 19 th Agenda TIR Company Overview Product Demo Destiny Off-shore Transition Lexel Off-shore Transition 1

2 TIR Systems Ltd. Building the Foundations of Tomorrow s Lighting Presented by: Martin Lusk Director of Global Sourcing and Procurement 2

3 TIR Systems Ltd Our Business TIR provides energy efficient, long life Solid State Lighting (SSL) solutions which are replacing conventional lighting and helping to save the environment through energy conservation. 3

4 TIR Systems Building the Foundation of Tomorrow s Lighting TIR is a world leader in the development and commercialization of Solid State Lighting (SSL) technology for illumination markets. Founded in 1982, TIR has 24 years of experience in developing and marketing specialty lighting technology TIR is a publicly traded company (TSX symbol TIR). The company employs ~75FTE s. TIR is a recognized leader in Solid State Lighting (SSL) Awarded $6.6M from Canadian government for SSL research (2001) Destiny CW named Best product at Lightfair (2003) Destiny CV named Best in Category at Lightfair (2004) Winner of The Awards for Design Excellence (ADEX) sponsored by Design Journal (2003) Named Emerging Company of the Year by British Columbia Technology Industries Association (2004) Introduced LEXEL (2005) the first fully integrated SSL light source for mainstream illumination applications 4

5 TIR Platforms in SSL, with High Profile Clients around the World Architectural The Destiny line of products and ColorTrace provide specialty lighting to accentuate architectural structures 6 SSL-based products, 2 based on conventional lighting Corporate Identity SSL-based products LightScript and LightMark provide illumination for channel lettering and building delineation to enhance visibility of a location Area signage in development for release in 2005 Strawberry Mansion Bridge, Philadelphia, PA BP 3-year Global Re-imaging Agreement (5000+ Sites Installed) A&W LightMark is Design Standard for All New Sites Kuo Hua Commercial Insurance Building Taipei, Taiwan Commercial Building Vancouver, BC Petro-Canada $1.8M 3-year Commitment Federated Co-op Neon Replacement Program 5

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15 What Is Important About Lighting? Attributes of Light Uniformity the consistency of the light Distribution refers to the pattern or beam of light emitted from a lamp or fixture Color can refer to red, purple, yellow etc. but more often is viewed as cool white or warm white which is called the color temperature and is measured in degrees Kelvin (eg. 3000K) Quantity the amount of light actually used for lighting - measured in lumens 15

16 How Solid State Lighting Will be Adopted Units Commercial Specification Markets Retail & Display Hospitality Architectural Commercial Spec & Wholesale Markets Office Institutional Outdoor Residential Market TIR is perfectly positioned: 7 Partners in NA, Europe and Japan Early adoption markets identified estimated at $4 billion world wide Lexel technology is a fully integrated SSL light source for white light 6 SSL patents 113 patent filings Invention Commercialization = 2006 Rapid Adoption Stable Growth Time TIR s Lexel technology has the unique opportunity to bridge the gap between LEDs and SSL and capture a disproportionate share of the Market 16

17 What Is Lighting? Lighting is something most people don t notice until there isn t any Artificial lighting ranks alongside the wheel, the printing press, and the computer as one of the most significant inventions of humanity Components of Conventional Lighting Lamps + Lighting System Ballasts + Fixtures + Controls 17

18 The Lighting Industry: Today s Value Chain Conventional Suppliers Lighting Fixture Manufacturers (OEMs) Lighting Market (Users) Lamps Ballasts Sockets Accessories Function + Design Housing Reflectors Lens/Diffusers Integration Certification Sales & Marketing Luminaire Accessories Technical Support Warranty How Light Fixtures are manufactured today 18

19 TIR s Strategy Replace Conventional Lighting Lamp & Ballast Light Source System Suppliers Lighting Fixture Manufacturers (OEMs) Lighting Market (Users) lexel Solid State Lighting Function + Design Housing Certification Sales & Marketing Application Expertise LumiLEX (photo courtesy of Lighting Services Inc) Tempura (photo courtesy of Zumtobel AG) KV 27/65 (photo courtesy of Spectral GmbH) 19

20 The Lexel TM is the First Fully Integrated and Seamless SSL Solution Provides the longest performance lifespan in the industry LEDs can render any color or color temperature desired Advanced optical system allows superior light density, light mixing and directionality System can be precisely controlled for top performance and excellent color rendering from any smart device or a simple dimmer Will be useable in any fixture form you have today Industry leading 95+% energy efficient drive Efficient conversion from wall plug to safe, low voltage DC Truly intelligent light: closed circuit feedback system ensures precise light output and color 20

21 OEM Business: A Complete Set of SSL Solutions LEXEL Platform Optimizes size vs output to compete with conventional light sources Optimizes CCT control, long life, and energy efficiency as an advantage over conventional light sources Optimizes light distribution for standard applications Standard Products Pre-Packaged LED Platforms Available for situations where LEXEL is not best solution Optimizes application-specific performance Optimizes either color or CCT to compete with other SSL light engines Optimizes light distribution for specific applications Standard Methodologies Common External Interface Architecture Ensures compatibility with industry standard controls and protocols: dimming, power, CCT control, color change, etc. Common to all OEM products = plug & play interoperability OEM Customer 21

22 TIR s Basic SSL Architecture: The Outside World TIR s World ON/OFF Dimming (0 10V; phase cut, etc) CCT Control (TBD) DMX (Show Control) RS232 (PC Control) Ethernet (Wireless, etc) DALI (ACN?) External Command ECC Devices TIR Signal (RS485) TIR SSL Light Sources LEXEL Pre-Packaged LEDs *** All light sources include DD capability 120V VDC 220V 277V 100V External Power PC Devices OR 240V 347V 22

23 TIR Has Identified Markets Ready to Adopt LEXEL Today Relative Barriers to Adoption Lower Office Lobbies/Atriums $62M Relative Attractiveness of High Priority LEXEL Subsegments Healthcare Accent $48M Education Accent $175M Hotel Lobbies/ Atriums $10M Market Sizes are for North America only Office Accent $258M Casino Accent $13M Residential Landscape $159M Hotel Accent $74M Museum Display $17M 2 Restaurant/ Bar Accent $90M Office Task $121M 3 Residential Illumination $246M 1 Retail Display $264M = $75M Wholesale Revenue Key Accent Display Task lighting General illumination Landscape Note : Source : Higher Lower Relative Fit with LEXEL Attributes Higher Axes are on a relative scale because this matrix only represents the most attractive subsegments identified from interviews L.E.K. Interviews and Analysis 23

24 Illumination Markets : The Channel is Open Dominant Size Leaders Application Leaders Revenue: 1.13B Employees: 7000 Region: Global Revenue: US$1.4B Employees: 5500 Region: North America PUSH Lighting Industry Specifiers Users Manufacturers Suppliers PULL Application Leadership: Museums & Retail Revenue: 27.6B Employees: 720 Region: Japan Adoption of SSL for Illumination Key industry leaders are developing products based on Lexel technology 24

25 Employees:5,500 Revenue: Sales for year ending December 31, 2004 were US$1.179 Billion Position & Markets Market Share Vision The only major North American conglomerate focused entirely on lighting and lighting controls products. Sales overwhelmingly in or specified out of North America Approx 70% of business being specification grade. Major Markets: 74% Commercial; 13% Industrial; 13% Residential Has 14% market share in US Has 31% market share in Canada To remain the premiere lighting company that is increasingly more profitable. Realize our future through commitment to product innovation, customer satisfaction, manufacturing excellence and people management. Perception Perceived as the most progressive of the dominant four North American conglomerates. 25

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27 Position & Products LSI is the leading independent manufacturer of track, accent, display, fiber optic, and now, LED lighting systems. Market Share LSI has a large share in North America of the museum, gallery and high-end retail lighting markets, with 90% of business being specification grade. Vision LSI s mission is to be the premier specialty lighting company by creating products that will not only fulfill their customers' needs but will also enrich and beautify their everyday lives. Perceptio n Specifiers see LSI as leaders in their market segments with high quality products, accessories and services that meet the specific needs of their applications and command premium pricing. 27

28 Epcot Space Centre - Florida Clinton Presidential Center Arkansas Bloomingdales New York Other Major Customers: Metropolitan Museum of Art, NYC Museum of Fine Arts, Boston National Air and Space Museum Country Music Hall of Fame Basketball Hall of Fame Sony BMW Salvatore Ferragamo Cole Hahn Disneyland's California Adventure 28

29 Employees:7,000 Revenue: 1.13 Billion Position & Markets Market Share Vision Perception Zumtobel AG is one of the world s largest manufacturers of lighting fixture products and the largest in Europe, developing products for the specification retail, restaurant, commercial and residential markets,.the Zumtobel Group is one of the few global players in the lighting industry. With production facilities in Europe, North America, Australia and Asia, and sales and consultancy centers in almost 100 countries. We consider our strong and prestigious brands as one of our main assets. Building on our market leading position in professional lighting in Europe, we strive to further strengthen our market position in those regions we chose to serve. We aim to secure ourselves a place among the top 3 in all our core markets worldwide. To be the world authority on lighting Established leaders in professional lighting in Europe with Zumtobel Staff brand. 29

30 Hotel - Dubai Retail - Germany Office - England 30 College - Baltimore University - Poland Bank - Lima Hotel - Italy Stadium - Wales Hospital - Australia Divisions & Brands

31 Illumination Markets : LEXEL-Based Products Launched Light + Building (Frankfurt, Germany) ARC 06 (London, UK) Zumtobel & Ledon introduce Tempura Lighting Services Inc (LSI) introduces LumeLEX Spectral introduces KV 27/65 31

32 TIR s Product Strategy for Lexel Conventional Light Sources A-Lamp Par Halogen MR-16 Incandescent Technology Lexel = Flexible Architecture Many attributes are required from a light source to meet application requirements - resulting in many product options Lexel s technology architecture will allow many versions of products to be sold Like conventional technologies, Lexel will address many application requirements T12-T8 T5 CFL Fluorescent Technology Lexel A Lexel B Lexel C HPS Metal Halide CMH High Intensity Discharge (HID) Technology * Lexel technology will be able to address more applications with fewer models than conventional light sources 32

33 The LEXEL offers an unparalleled range of precise white light output 7000 K 5500 K 4100 K 3500 K 3000 K 2700 K 2200 K 1000 Lumens Full Range of Control 0 Lumens Full White Light Range and Dimming With Repeatability and Precision That Exceeds ANSI C (Specification for Chromaticity Tolerance for Lamps) 33

34 LEXELTM delivers higher quality white light than competitive offerings, making it ideal for applications where precise Color and Color Temperature are required. Acceptable color range standards as set by ANSI C78 for conventional light sources (e.g., an acceptable 3200K CCT source can vary within specific boundaries) Acceptable Range for Conventional Light Source 3200K TIR feedback delivers precise color temperature for all applications Colors and color temperatures are maintained precisely within the center of the range with minimal variance LEXELTM produces the same degree of color accuracy with all LEDs in a bin, despite LED variances. This efficient use of all LEDs in a bin gives TIR a significant cost advantage Color variances among LED bins can lead to low yield of usable LEDs. TIR s feedback system allows it to use virtually all LEDs in a bin a significant advantage over competitors and very attractive to LED Manufacturers. 34

35 The LEXEL Will Not Fade or Shift Color Temperature LEXEL provides precise light output and color temperature control over the life of the system. Indexed Light Output 120% 100% 80% 60% 40% 20% 0% LEXEL Incandescent Halogen CFL 1,000 hrs 3,000 hrs 6,000 hrs ~50,000 hrs 100 1,000 10, ,000 Hours Optical and thermal closed feedback loop maintain accuracy and stability of output and color temperature for life of the product Superior light mixing and density Light is directed only where needed -- no light is wasted Source: Conventional Light Source Performance Courtesy of IESNA Handbook 35

36 TIR s Intellectual Property Portfolio Overview TIR has a powerful and diverse SSL IP portfolio with 6 granted patents and 113 patents pending (August 2006) across a wide range of enabling technologies and an accelerating rate of filing from current R&D activities. LEXEL TM Architectur e & Packaging SSL Drive SSL Thermal SSL Enabling Technologies SSL Optics SSL Color Control SSL Feedback SSL System Control SSL Design SSL Application SSL Process SSL Tools System Architecture & Packaging SSL Drive Methods SSL Thermal Management SSL Feedback Control SSL Optics SSL System Control SSL Design Patents SSL Applications SSL Processes SSL Tools The LEXEL TM is well represented within this portfolio with a large fraction of pending patent applications dedicated to the breakthrough technologies within the LEXEL TM. 36

37 Destiny PSU and Controller Transfer 37

38 Destiny PSU and Controller Transfer Vendor Selection o Capacity Capabilities o IP Issues o Ethical Issues 38

39 Flextronics Nanjing, China 39

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46 Communication Language (write it down) Transfer of Information (ftp detailed checklist) Approved Manufacturers Manufacturing Process and Procedures (IPC) Testing Process and Procedures ECO Process (you get what you ask for-no grey area) 46

47 Travel On site presence Quality Audit SPR Board Build & Box build Test Fixture Commissioning Assembly Jig Commissioning Multi discipline Team 47

48 Cost and pay back Domestic Off-Shore Savings $516 $245 $ units/month X $271 =$135,500 NPI Team Support (4 months) On site Trip (5 x $6,000) Total Expense $80,000 $30,000 $110,000 Pay back less than a Month!! 48

49 Lexel Off-Shore Transfer 49

50 Lexel - Physical Characteristics LED Package 50

51 Lexel Sub-assemblies LED Assembly Thermal Assembly Optical Parts Plastics parts 51

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53 Lexel Manufacturing Process LED Board Assembly Thermal Assembly attachment Optical Assembly Final Assembly and Test 53

54 Lessons Learned Be prepared (don t wing-it) Document everything! Talk to the Documentation not the people On site presence Constant communication (don t assume anything) 54

55 Thank-You 55

56 Questions? 56