Fueling the Digital Lifestyle: Main Street is Hungry for Storage

Maciek BrzeskiVice President, MarketingToshiba Storage Device Division

Storage Device DivisionStorage Device Division

““HDDs have revolutionized digital entertainmentHDDs have revolutionized digital entertainment”” -- IDC IDC

Transition from analog to digital 2 decade transition almost complete

Increased connectivityBroadband accessibility to reach 100M Americans by end-2007

Proliferation of content capture devices

Portable media players Digital video recordersDigital still cameras, camcordersMobile phonesNotebook and desktop PCs

Digital entertainmentOn demandOn-linePersonalized Distributed across a wide variety of devicesHigh definition

Storage Device DivisionStorage Device Division

““Video is coming from everywhereVideo is coming from everywhere”” -- San Jose MercurySan Jose Mercury

Analog shut-off as of February 17, 2009Incentives in place to hasten US digital TV transition

Digital services delivery build-out continues

Broadband, high-quality video formats, decreased cost of storage and bandwidth, Web 2.0, WiMax, “triple play communications”Google acquisition of YouTube- YouTube localization launch in 9 countries

(Brazil, France, Ireland, Italy, Japan, Netherlands, Poland, Spain, UK)

News Corp and NBC online video alliance

Various content acquisition solutionsInternet-content streaming devices- $300 option on new Sony high-definition TVsInternet TV race- New players emerging

Increased demand for rotating media storage

11% CAGR of HDDs into CE devices through 2010- 100GB = 1,650 hours of music in MP3 format, 7

hours of DV video, 48 high-resolution video games, 75,000 photos in JPEG format

Storage Device DivisionStorage Device Division

Automotive Consumer NeedsAutomotive Consumer Needs

Enhancing the Driver & Passenger ExperienceEnhancing the Driver & Passenger Experience

Integrated digital audio

Hands-free cell phone usage

GPS navigation, traffic & POI

Safety and security

Theft deterrence

Rear-seat entertainment & gaming options

Storage Device DivisionStorage Device Division

WirelessWirelessGPS

CellSat.

Radio

Bluetooth

AMRadio

FMRadio

Wide-band

MediaMediaCD DVDMP3Cassette

Tape8 Track

ServicesServicesConcierge

RT TrafficRT Weather

Time-ShiftRadio

Sat.TV

Web-connect

On-demandcontent

HD-DVD

RT News VoIP

Technology ComponentsTechnology Components

Convergence Meets the CarConvergence Meets the Car

1956 2007DigitalAudio

“Infotainment”AudioTelematics

Storage Device DivisionStorage Device Division

Under the Hood Under the Hood

““InfotainmentInfotainment”” Drives CapacityDrives Capacity

Application requirements• GPS / Navigation = 4-15 GB • Digital Music 1-5k songs = 4-20 GB• Digital Video* (std def) = 1 GB • Digital Video* (hi def) = 10 GB• Gaming = 1-20 GB• Audio Books = 1 GB

Storage solution = Hard Disk Drive* Note: Capacity per hour

Content transfer Content transfer –– the next hurdle

Storage Device DivisionStorage Device Division

the next hurdle

2 hour High2 hour High--Definition movie transfer timeDefinition movie transfer time

CONNECTION TYPE Mbps*

56K Modem 0.056

0.768

1.0

1.9

70

110

480

1,000

2,400

DSL

Satellite

Cable

WiMax

Localized Content

Ultra-WideBand

USB 2.0

Ethernet

eSATA

Low Bit Rate High Bit Rate**

~ 12 days 28 days

~ 1day 2 days

16 hours 1.5 days

9 hours ~ 1 day

1 hour < 1 hour

9 minutes 21 minutes

2 minutes 5 minutes

1 minute 2 minutes

<1 minute 1 minute

* Theoretical best case with no overhead** High Bit Rate = 19 Mbits/second

Source: IDC

CE Technology RequirementsCE Technology Requirements

Storage Device DivisionStorage Device Division

Handheld

Devices

Primary Features• High capacity • Small form factor• Low power consumption• Small cache• Low power interface (PATA/CE-ATA)

Primary Features• “Low” capacity• “Long” life• Greater robustness

− Wide temperature range− High altitude

Automotive

Proliferation of technologies Proliferation of technologies –– and marketsand markets

Storage Device DivisionStorage Device Division

New features enable new markets

New markets – new customer requirements

Increased options

“The future will offer more choices”

1.8”

7200 RPMFDE

Robson

Hybrid HDD

SATA

CE-ATA

4KPATA

4200 RPM

3600 RPM

FFS

Storage Device DivisionStorage Device Division

Gbi

ts p

er s

quar

e in

ch

0.1

1.0

10

100

2.5-inch

88

CDR

60%/Year60%/Year

30%/Year30%/Year

TF HeadGlass Media

MIG Head Sputtered Media

40GB/Disk40GB/Disk

100%/Year

100%/Year

1000

89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

60GB/Disk60GB/Disk

MR HeadID less

Lamp load

PRML

GMR

FDB SPMAFC Media

Orientation Media

30GB/Disk30GB/Disk

30%/Year30%/Year

125GB/Disk125GB/Disk320GB/Disk320GB/Disk

80GB/Disk80GB/Disk1.8-inch

Perpendicular Recording, TMR

10

2010 Projections2.5-inch 320 GB/disk

1.8-inch 160 GB/disk

Areal Density Growth Trajectory Areal Density Growth Trajectory –– we can get there! we can get there!

DTR

Increasing demand for higher capacity mobile drivesIncreasing demand for higher capacity mobile drives

Storage Device DivisionStorage Device Division

2.5-inch mobile HDD

- 34.4M shipped in Q207↑ 29.5% Y-o-Y

Avg. mobile 2.5in HDD capacity shipped was 102GB, up from 89GB in 1Q07 - up 15% sequentially

Unit shipments of mobile 2.5in HDDs >80GB was 49% of total, up from 39% in 1Q07

0

5

10

15

20

25

30

35

40

45

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

e

Millions

20

40

60

80

120

160100

200 / 250

Source: IDC, Hard Disk Drive Quarterly 2Q07Summary

Main Street is Hungry for Storage

• High capacity• Cost effective• Manageable• Reliable

Fueling the Digital Lifestyle: Main Street is Hungry for Storagewww.toshibastorage.com