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| © 2006 Lenovo Lenovo Confidential Fiber Optics

Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

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Page 1: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 LenovoLenovo Confidential

Fiber Optics

Page 2: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

Page 2 of 19

•  The Opportunity •  Our Product Mix •  Todays Buyers •  Valdor Focus •  The Valdor Strategy

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Page 3: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 3 of 19 Lenovo: Building the New PC Company June, 2006

“Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide

Global market for Fiber Optic Components is projected to reach US$42 billion by the year 2017“

According To New Report By Global Industry Analysts, Inc.

Canadian Government C$200 million to help smaller businesses adopt digital technologies C$300 million for venture capital to be invested in digital startups. C$305 million will be spent to ensure rural and remote areas get Internet that is

capable of streaming video.

Page 3 of 19

Page 4: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

Global Penetration of Fiber to the Home

Page 4 of 19 Lenovo: Building the New PC Company June, 2006

Page 4 of 19

Page 5: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

A Massive Global Market Opportunity

Lenovo: Building the New PC Company June, 2006 Page 5 of 19 Page 5 of 19

Page 6: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

FTTH and FTTP

Page 6 of 19 Lenovo: Building the New PC Company June, 2006

Page 6 of 19

Page 7: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 7 of 19 Lenovo: Building the New PC Company June, 2006

Page 7 of 19

Timing is Everything

•  Quality Products •  Great People •  Excellent Market

Page 8: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 8 of 19 Lenovo: Building the New PC Company June, 2006

•  Telecommunications

•  Aerospace and Medical

•  Government

•  Data Storage & Cloud

•  Enterprise

•  Commercial and Industrial

Attenuators Splitters Cable Assemblies Jumpers Enclosures WDM DWDM

Our Product Mix PON Networks Triple Play Focus

Page 8 of 19

Page 9: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 9 of 19 Lenovo: Building the New PC Company June, 2006

PSTN

PON

Headend/CO Homes/Businesses Outside Plant

Telecom

Page 9 of 19

Page 10: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

Where Valdor can sell devices for FTTH

Page 10 of 19 Lenovo: Building the New PC Company June, 2006

Fibre Distribution Hub

Fusion Splice

Connector Mechanical Splice

Up to 28 dB and 20km

OLT FMDF Vault Case

6-7 Splices

Access Terminal

Feeder Cable

NID ONT

Drop Cable

Distribution Cable

3-5 Splices

C.O. side

Splitter

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Page 11: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

Fiber Deployment FTTH

Page 11 of 19 Lenovo: Building the New PC Company June, 2006

Splice Cases

Fiber Distribution Hub

Fiber Distribution Hub

Fiber Access Terminal

Fiber Access Terminal

Drop Cable

Drop Cable

Drop Cable Splice Case

Splice Case

Fiber Access Terminal

Central Office / Head End

Page 11 of 19

Page 12: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

Product Margins

• Passive Market Provides a Margin of 62%

Page 12 of 19 Lenovo: Building the New PC Company June, 2006

Page 12 of 19 Page 12 of 19

Margin Cost of Goods Advertising Overhead

Page 13: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 13 of 19 Lenovo: Building the New PC Company June, 2006

Our Prospects are Shopping Without Us

Buyer Valdor

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Todays Buyer

Page 14: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 14 of 19 Lenovo: Building the New PC Company June, 2006

Valdor

Valdor Focus

Valdor’s Clients

Clients of Valdor’s Clients

Valdor  is  focused  on  understanding  every  aspect  of  their  clients’  business  so  that  Valdor  can  maximize  and  drive  value  for  their  clients’  operations  and  logistical  needs  

Valdor  wants  to  supply  the  parts  and  services  to  reliably  meet  their  clients’  needs  in  the  most  cost-­‐effective  manner  possible  

Page 14 of 19

Valdor Focus

Page 15: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

Page 15 of 19

•  Direct  Sales  •  Internet  Initiatives,  E-­‐Commerce,                    Search  Engine  Optimization  •  Email  Blasts  ,  News  Letters,  Call  Center                    Initiatives  •  Trade  Shows  •  Blogs,  Associations,  Social  Media,  Public  Media  •  Distributors,  Partnerships  and  White  Label  •  Acquisitions      

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How Valdor will Grow our Business Strategy

Page 16: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 16 of 19 Lenovo: Building the New PC Company June, 2006

PowerPoint  Webinars  Press  Releases  

eNewsle1ers  

Brochures  

Video Transcription Podcast .pdf

Video Shoot

Repurposed Content

Newsletters Webinars

Awareness Campaigns

Buyer Persona Campaigns Blogging

SEO Activities PPC

Valdor’s On-Line Activity

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Page 17: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential

Sample Customers

Page 17 of 19 Lenovo: Building the New PC Company June, 2006

•  Altus Air Force Base

•  Amphenol UK Ltd. •  B&W Tek •  Downstream

Services •  FOCI •  General Atomics •  Graybar •  Honeywell JDSU •  Kaiser Optical

•  Lockheed Martin •  LumeRx, Inc. •  Luna Technologies •  MTS •  NASA •  OCC •  Ocean Design •  PD-LD •  Sandia National

Labs •  Schindler Elevator

•  Schlumberger •  Scientific Atlanta •  Timbercon •  U.S ARMY •  U.S Marines •  Verathon Medical

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Page 18: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 18 of 19 Lenovo: Building the New PC Company June, 2006

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Page 19: Fiber Optics · “Growing Optical Fiber Deployments To Drive Demand For Fiber Optic Components Worldwide Global market for Fiber Optic Components is projected to reach US$42 billion

| © 2006 Lenovo Lenovo Confidential Page 19 of 19 Lenovo: Building the New PC Company June, 2006

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