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Global Business Unit HDD Carsten Lentz Director Product Development Global BU HDD Head of R&D / Quality Managem

Global Business Unit HDD Carsten Lentz Director Product Development Global BU HDD Head of R&D / Quality Management / Project Management. Agenda. GBU HDD overview A view on Quality & Design, Technology and Innovation 2 Brands – 1 Idea Do not leave something to chance .

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Global Business Unit HDD Carsten Lentz Director Product Development Global BU HDD Head of R&D / Quality Managem

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  1. Global Business Unit HDD Carsten Lentz DirectorProduct Development Global BU HDD Head of R&D / Quality Management / Project Management

  2. Agenda • GBU HDD overview • A view on Quality & Design, • Technology and Innovation • 2 Brands – 1 Idea • Do not leavesomethingtochance ... Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 2

  3. Ownership Structure MCHC Group consistsoffourcorebusinesscompanies: Mitsubishi Chemical Corporation, Mitsubishi TanabePharma Corporation, Mitsubishi Plastics, Inc., and Mitsubishi Rayon, Co., Ltd., andtheirgroupcompanies. Net sales: US$ 27.0 Bn. (March 31, 2010).* Employees: 53,907 (Consolidated). 100% subsidiarycompanyof Mitsubishi Chemical Corporation. 100% subsidiary of Mitsubishi Kagaku Media Co., Ltd 100% subsidiary of Mitsubishi Kagaku Media Co., Ltd *US Dollar amounts are converted from Yen at the rate of Y93 = US$1.00, the approximate exchange rate prevailing on March 31, 2010 Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 3

  4. Our Global Reach • Global company & brands • Subsidiaries in all continents “we speak 29 languages just to mention one..” • Production & warehousing around the globe Company Confidential Verbatim and Freecom are Mitsubishi Kagaku Media Companies

  5. Global Business Unit HDD • Global Product Development : 2 Brands – 1 Team • Eachbrandkeepsit’s ownuniqueanddistinguishingcharacteristics. • Global dedicated HDD Team: • Managing Director • DirectorProduct Development • Head ofProductTesting & Release • Head of Support & RMA • Head of PM, QM & RD • Engineers (SW & HW) • Project & QA Manager • Technical Coordinator • Global Source Inspection Team • Global Support and RMA Team Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 5

  6. Are You Aware ? Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 6

  7. If You are 1 in a Million... Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 7

  8. ...there are 1 Million like You. Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 8

  9. Sometimes You need to be different. Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 9

  10. Freecom strengthen - the Differentiator Quality Engineering „Made in Germany“ Innovative European Design Company Confidential

  11. Quality Engineering „Made in Germany“ Company Confidential

  12. „Quality is never an accident, it is always the result of intelligent effort.“ Company Confidential

  13. What is Quality ? „The quality of a product or service is a customer‘s perception of the degree to which the product or service meets or exceeds her or his expectations.“ Company Confidential

  14. ... have a look... authorized Freecom Business Partner in Europe Company Confidential

  15. Company Confidential

  16. Wemanufacturedfor... ... just tomention a couple Company Confidential

  17. Innovative European Design Company Confidential

  18. What is Design ? „Design is not just the color of a shirt or the shape of a dress. Design is much more, it‘s a combination of different qualities.“ Company Confidential

  19. What is a good Design ? Company Confidential

  20. „TenPrinciplesforgood design“ Dieter Rams – early 1980s – „The german Designer whoinspires Apple“ Innovative & Useful Aesthetic & Understandable Unobstrusive & Honest Long-Lasting & Environmental Friendly Thoroughfull & Minimalistic Great Designs withcarefullychoosenmaterials, like Magnesium, Stainless Steel, Silicon Rubber, Aluminium... Company Confidential

  21. Innovative European Design • Magnesium Material • Hightech Manufacturing Process • Super leightweight • EnvironmetalFriendly • Greenbutton Power Saving Software Freecom Mobile Drive Mg • Durable and Strong • Designedtowithstand • Shock Absorbing • Encryption Function AES 256 • Highest Data Security Freecom Toughdrive Company Confidential 27

  22. ...thisis Freecom... Company Confidential

  23. Verbatim Features - theStrenghten Trustworthy Technology IngeniousDesign Company Confidential

  24. Trustworthy Technology Company Confidential

  25. What is Trustworthy Technology ? „Trustworthy Technology is determined to provide honest, mature and reliable solutions for an affordable cost. Design for customers to rely on and to trust in the technology.“ Company Confidential

  26. The Verbatim „Chronik“ Company Confidential

  27. Over 42 Years in Storage… World Market Leader Optical Storage – No.1 A Brand An incredible trustworthy CV 2007 Verbatim globalises corporate identity. Acquisition of SmartDisk and launch of External HDD Business 2009 Mitsubishi Kagaku Media Co. Ltd announces acquisition of Freecom B.V – extending global presence and position in external storage market 1987 Independent EUMEA Sales & Marketing established. EUMEA head office moved from Geneva to Egham. 1993 Introduction of CD-ROM and CD-R disks, CD-R AZO Technology and SRAM cards. 2001 DVD+RW production started (first in the market). Memory Cards launched. 1999 Restructuring & establishment of the MKM/Verbatim Group. DVD-R & DVD-RW launched. 1969 Verbatim incorporated as Information Terminals Corp. (ITC) – April 28, 1969. 1978 ITC officially renamed Verbatim. 2004 DVD 16x and DVD+R Double Layer 8.5GB launched (first in the market). 1991 Production of 3.5” Magneto Optical media begins (first in the market). 1981 First monthly production of 1 million floppy disks. 1969 1974 1978 1979 1981 1985 1987 1990 1991 1992 1993 1995 1999 2000 2001 2002 2004 2005 2007 2008 2009 20102011 2002 DVD+R and CD-RW Ultra Speed 24x products launched (first in the market). Start of sales of USB Drives. 1992 Acquisition of Carlisle Tape. 1985 Acquired by Eastman Kodak. 2000 CD-RW High Speed product with SERL technology launched. 1974 First 8” diskettes produced. 2005 CD-R 52x LightScribe & DVD-R Dual Layer 8.5GB launched (first in the market). Blu-Ray BD-R/RE launched. 2010 Launch of LED and OLED Lighting business utilising technology from Mitsubishi Chemical Corp. 1995 Acquisitions of Laser Technologies (US) and Ecotone (Europe). CD-R production started at MCI in Singapore. 2008 Blu-ray Dual Layer (50GB), SDHC & MicroSDHC, Multimedia HDD, RAID HDD 2TB & Colour HDD launched. 1979 Limerick, Ireland plant begins floppy disk production. 1990 Mitsubishi Chemical acquired Verbatim and invested in the business. Company Confidential

  28. Ingenious Design Company Confidential

  29. WhatisIngenious Design? „A stunning design thatappearslike a high valueitem, but thatisbasedandrealized in a veryeffectivewayandforabsolutelyaffordablecost. A technologythatisoutstandingandcompatibletoeverything in themarket, but worked out for a veryreasonablecosttobemostachievableforthecustomer. Thatiswhatwecallingenious design.“ Company Confidential

  30. Ingenious Design • Outstanding, modern Design • HighestAchievable Quality • LowestcostLevel • Super Low Power Consumption • Oneofthelowest power consumingdrives in themarket Verbatim Store‘n Go • Superior Design • Extraordinary Technology • OptimizedCost • Customizable Touch Sensor toegenableGreenbuttonFunctionor Encryption Verbatim Store‘n Go Executive Company Confidential 27

  31. ...this is Verbatim... Company Confidential

  32. Technology & Innovation Company Confidential

  33. USB The Common Interface Company Confidential

  34. Technology • USB 3.0 Superspeed vs USB 2.0 Highspeed • September 2007 demonstratedatthe Intel Developer Forum • SuperSpeedcommunicationspipebetweenhostandeachdevice, in a host-directedprotocol. (In contrast, USB 2.0 broadcasts packet trafficto all devices.) • The bus power spechasbeenincreasedto 900 mA, an 80% increaseover USB 2.0 at a registered maximumof 500 mA • USB 3.0 runsat 5.000 Mbit/s (maxspeed 640 MB/s) while USB 2.0 at 480 Mbit/s (max Speed 60 MB/s) => effective Speed Increaseof 3-4 times (HDD SATA II) • USB isthemostcompatibleinterface • DidYouknowthat: "Verbatim / Freecom launchendthefirstexternal USB 3.0 Hard Disk Drive in Europe 2009 asthefirsteuropeanbrand !!!" Company Confidential 29

  35. Thunderbolt The Active innovative Interface Company Confidential

  36. Technology • Thunderboltvs USB 3.0 • Thunderboltspeedsupto 10 Gigabit per second • Intel Development - codename "light peak" • startedasopticalactivecable, nowswitchedtocopperwired • Fastest BidirectionalData transferthroughsinglechannel • Daisy Chain upto 8 Devices • useablefordataandvideodatatransfer • Thunderboltis 12 timesfasterthanFireWire 800 andupto 20 timesfasterthan USB 2.0. • Itcouldachieve 2x thespeedof USB 3.0 • cantransfer a full-length, high-definition movie in lessthan 30 seconds OurfirstThunderboltenabled Device isunderTestingand will bereleasedsoon !!! Company Confidential 29

  37. NAS - DLNA The Intelligent Protocol Company Confidential

  38. Technology • NAS – uPnP (DLNA) • DLNA is a collaborationofthe • world‘sleading CE companies • Guideline fornew Generation of • productsthatcanworktogether • - no matter whatbrand. • Network Attached Storage asyourPersonal Cloud Storage Data Center • Store Content atonecentralplace on your NAS andplayit back anywereyouwant • uPnPprotocolforconvenient „just plugit in“ and „itsimplyworks“! • Easy communicationbetweenstorage, TV, PC, handhelddevices, printer etc. • „itcould not beeasier“ .... • Freecom Silverstore NAS 2.0 in final steps – tobelaunchedverysoon !!! Company Confidential 29

  39. Research & Development • Global BU HDD • „Who areWe ?“ • German R&D Engineering Team • Over 22 Years Experience in External Storage • Location: Berlin, Germany (actingglobally) • Technical heartoftheGlobal Group • Hardware & Software Development • App Development (iOS, Android, Windows Mobile) • Collaborationwithcarefullychoosen ODM on jointproductdevelopment. Company Confidential 29

  40. German Engineering Manufacturing Standards on worldwideassembly Lines • Over 22 Years Manufacturing Experience • assemblyin controlledenvironments • Global Quality Source Inspection Team • 100 % producttestingtoensure high quality • „Every singleunitisfullytestedtoensureour high quality • Strong R&D teamembeddedinto Quality Management System • „Everything on Purpose, • nothingbyaccident“ Quality manufacturing Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 30

  41. InhouseTestlab • IntegrityTesting • Fullrangeof Operating System Testings (Windows, Mac, Linus, iOS, Android) • DatabasedcontrolledTestingProcess • On-site producttestingatassemblyline • Source Inspectiontesting in theline • Fully Environmental andSafetyTesting • eHDD /eSSDreleasetesting • TestingTeam with Tier 1 Partner (eg. Apple) ProductTesting Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 30

  42. Service Centresthroughout Europe • Free lifetimee-mailandtelephonesupport • No expensive telephonehotline. Customers onlypaystandardtelephonetariffs • The Service engineersaretrainedtofind malfunctionsandoftencanhelpyou in resolvingtheproblemevenbyphoneore-mail • The Service Repair Center will alwaystryto save thedatastored on thedevice • Issuing a creditnoteorreplacing a faultydevicefor a newone, is not alwaysthebestsolutionforthe end customer. Especially not iftheproductis a datastoragedevicewithpreciousdatastored on it Service & Support Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 30

  43. Reselleror end customercontactsthelocal Freecom helpdesk • The helpdeskactivates a RMA account • Customer receives a returnlabel (for FREE shipping) via e-mail • Bring the box tothenearestpostoffice (withthereturnlabel) • Nowtheproduct will beshippedto Freecom forrepairfor FREE! • Automatically RMA packagestatusupdates will be send bye-mail • Finally, theproduct will return –fullyscannedandrepaired – FREE ofchargetothecustomer • „Wemakeyourlifeandyourcustomerslife easy!“ ReversedLogistics Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 31

  44. „Keep life simple, knowyourstrenghtenandbeawarewhatyou do, serveyourcustomerwiththebestserviceandquality, do not rest but improveyourself.“ 2 Brands - 1 Idea Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 30

  45. Q&A Thankyou! Company Confidential 2/7/12 Verbatim and Freecom are Mitsubishi Kagaku Media Companies 32

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