Intermec — Baird's 2007 Growth Stock Conference
27 slides from Intermec's conference presentation, May 9, 2007
Slide 1: Baird's 2007 Growth Stock Conference
Steve Winter President & COO Baird’s 2007 Growth Stock Conference: May 9, 2007
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation that express our intentions, hopes, beliefs, indications, expectations, forecasts or predictions of the future constitute forward-looking statements. They include, without limitation, statements about: maintaining or improving our revenues, gross
Slide 3: The Technology Leader in Transition
The Technology Leader in Transition
Slide 4: Data Capture Core Technologies
Data Capture Core Technologies Conventional AIDC: Laser Scanning Linear Imaging Area Imaging Emerging Technology: RFID
Slide 5: Major Performance Improvement in Laser Scanning
Major Performance Improvement in Laser Scanning Enabled Transition from Competitor Supplied Product Advantages of MEMS: Speed Maintainability Ease of Use Micro-Electromechanical Systems (“MEMS”)
Slide 6: Long-time Leader in Technology
Long-time Leader in Technology Fastest Growing Intermec AIDC Technology Linear Imaging Intermec Laser Scanning Units vs. Imaging Units Laser Scanning Units Imaging Units 0% 25% 50% 75% 100% 2004 2005 2006
Slide 7: Area Imaging Accommodates Rising Popularity of 2D
Area Imaging Accommodates Rising Popularity of 2D & Increasing Data Content Image Capture Capability feeds need for Contextual Information Can Read and Decode Bar Codes in any Orientation Reduces worker fatigue and increases productivity Auto-Focus dramatically expands Read Ranges
Slide 8: Transferring Technology Leadership: CN3 Rugged Mobile Computer
Transferring Technology Leadership Product Innovation Most Integrated Radio Options Available GPRS & CDMA WWAN WiFi WLAN Bluetooth GPS 2D Imager & Color Camera CN3 Rugged Mobile Computer
Slide 9: Transferring Technology Leadership: CV30 Rugged Fixed Mount Computer
Best in class flexibility, delivers real-time wireless supply chain management Smallest full-screen footprint Improves forklift safety by increasing driver visibility CV30 – Rugged Fixed Mount Computer Transferring Technology Leadership Product Innovation
Slide 10: Transferring Technology Leadership: EX25 Area Imaging Technology
Transferring Technology Leadership Product Innovation First near-far scan engine to read 1D, 2D, composite and postal codes, eliminating need for multiple scanners Imaging capabilities capture photos of damaged, expired or unsealed goods and proof-of-delivery documents EX25 - Area Imaging Technology
Slide 11: Transferring Technology Leadership: IF61 RFID Enterprise Reader
Transferring Technology Leadership Product Innovation “Store & Forward” Capabilities Ensure Data Won’t Be Lost Intel Celeron Processor – Ample Storage to Run Complex RFID Applications Host Applications Written in Java, Java Script or C# . Net Based on EPCglobal Certified Radio IF61 - RFID Enterprise
Slide 12: RFID Achievements: Adjacent Portals Benchmark
RFID Achievements Intermec RFID Reader Benchmark Results: Adjacent Portals November 2006 Superior dense reader capability – The IF5UD dense reader mode implementation is second to none in the industry. Ideal for use in adjacent dock doors – Intermec ’ s engineering investment in addressing the more
Slide 13: RFID Achievements: Conveyors Benchmark
RFID Achievements Intermec RFID Reader Benchmark Results: Conveyors November 2006 High speed performance – The IF5UD matched the read rate (number of tags read per unit time) of the fastest competitor. Well-suited for conveyor applications - The IF5UD read rate is ideal for conveyor applications. Si
Slide 14: RFID Market Observations
RFID Market Observations Compliance mandates remain in place Standards progress Vendors supporting EPC Gen 2 8 Reader companies & 5 Silicon companies with EPC Gen2 certified products to date Retailers committing to EPC Gen 2
Slide 15: RFID Market Observations (cont.)
RFID Market Observations (cont.) Product prices are dropping Product performance and quality improving Standards beginning on item, sensors, and active tags ROI’s Developing with compliance projects Rapidly developing with closed loop applications
Slide 16: Highlight on Recent Wins
Highlight on Recent Wins Hong Kong Airport Authority (CL Systems – Intermec partner) RFID bag tag application Intermec selected in a competitive performance evaluation for project roll out Canadian RFID Centre (Intermec & IBM) Loblaw’s sponsoring retailer Food track and trace pilot involving Maple L
Slide 17: Highlight on Recent Wins (cont.)
Highlight on Recent Wins (cont.) Grupo Familia Wal-Mart compliance supplier South America’s largest Consumer Goods company 6 Major distribution centers 6 million pallets & 15 million cartons annually DaimlerChrysler (Quanta, Inc. / System Concepts – Intermec partners) Intermec readers and tags selec
Slide 18: Highlight on ROI
Highlight on ROI Data Partners: Quanta Inc. / System Concepts Customer: Daimler Chrysler Application: Tracking conveyor carriers to reduce body shop process bottlenecks, overtime labor and downtime Summary: Utilized Intermec RFID equipment to implement a conveyor carrier PM system to plan downtime a
Slide 19: Intermec – Gen2 Supply Chain
Intermec – Gen2 Supply Chain METRO Group Sole source award for case level trials Selected IF5 and Intermec enclosure portal systems Achieving 100% read rates on pure pallets & >98% on mixed mode “We have a clear commitment to be the technology leader. We need technology vendors with the same strateg
Slide 20: Highlight on Gen2 Products
Highlight on Gen 2 Products Intermec Gen 2 Rigid Tag Released Gen 2 compliant and interoperability certified Excellent solution for asset tagging and reusable container tracking projects Intermec IM5 Release 2 Released Gen 2 compliant and interoperability certified Integrated with IF5 reader, IV7 mo
Slide 21: Barcode & RFID Printers, Tags & Media
Barcode & RFID Printers, Tags & Media Wide range of printers and media Intermec Smart Printing capability Intermec RFID printers RFID tags, labels and inlays RFID deploy integration services Barcode Printers RFID and Media
Slide 22: Wireless Network: Intermec partners with Cisco
Wireless Network Intermec partners with Cisco Cisco AP Features Best-In-Class partner Service and Support Intermec Solutions
Slide 23: Superior Customer Service
According to analyst firm VDC, Intermec is #1 for: customer service and support technical expertise market expertise September 2006, Mobile Enterprise Magazine graphic Ranking is based on more than 1,000 end user responses to a global survey in 2005 and Q1 2006. The distinction is a second year in a
Slide 24: Cost Reduction Restructuring Plan
Cost Reduction Restructuring Plan Includes: Personnel Reduction 200+ Lowest Level Since 2003 Plant Consolidation Media Plant Closure Service Facility Consolidation 10 facilities in Europe merged into 3 European Admin. Restructuring Regional Focused
Slide 25: Cost Reduction: Operating Expense Profile
Cost Reduction Operating Expense Profile $69M-$71M Q4’07 $7M–$8M Total Q3’07 $2M Pension Expense Reduction Q2’07 $5M–$6M Restructuring Reduction $69.6M Q1’07 Objective: FY’07 - New Range $78M 1H’06 (Per Quarter)
Slide 26: Conclusion
Conclusion Technology Leader to Product Leadership Enterprise Traction will Pace Recovery 1st Half of FY’07 Revenue will Lag Prior-Year 2nd Half of FY’07 Revenue will Exceed Prior-Year by Market Growth Plus With Sales Rebound Lower Cost Base will Provide Earnings Acceleration
Slide 27: Thank you
Thank you