Gary Shapiro and Karen Chupka CES NY Press Conference November 8, New York, NY Slide 1 &2 (slide 3) **CES Video to Play; Gary and Karen to enter stage at close of video** (Gary) About CEA (Slide 4): Welcome to annual CES press conference. Exciting time of year - the 2012 International CES just weeks away Several announcements today with guest speakers to talk about CEA and 2012 CES developments CEA - owner and producer of the International CES. Mission - to expand the global consumer electronics industry through: o Policy o Industry standards o Market research o Events, such as CES One of 15 largest U.S. trade associations; more than 2,000 members. Page 1 of 20 CEA Executive Board (Slide 5): Recently elected Executive Board members include: o Jim Bazet, chairman and CEO, Cobra Electronics; o Robert Fields, vice president, sales and marketing, Aridian Technologies; o Phil Molyneux, president and COO, Sony Electronics Inc.; o George Stepancich, CEO, Invisionate; o Mike Vitelli, president, Americas and executive vice president, enterprise, Best Buy. (Slide 6) Randy Fry, president, Fry's Electronics, and Jay McLellan, president and CEO, Home Automation Inc., continue as CEA's Executive Board chair and vice chair. Gary Yacoubian, president, CEO and managing partner, Specialty Technologies, LLC, will serve as past chair. Economy (Slide 7): CEA Index: Consumer confidence in technology reached highest level of the year in October. CEA Index showed consumer confidence in economy increased in October. Page 2 of 20 October CEA Index rose nearly eight points, reaching 89.6 highest level since December 2010. Index up more than 10 points from this time last year. Bright Spots to Notes (Slide 8): CE Industry = $190 billion in overall shipment in 2011. o Growth rate of 5.6 percent (higher than the January projection) Industry shipments in 2012 will reach $197 billion. o Growth categories: smartphones, mobile PCs, digital cameras and LCD TVs. Consumer holiday spending on CE gifts this year will reach alltime high. o Consumers to spend $246 on electronics gifts (six percent increase over 2010) o CE gifts on adult wishlists = tablets; notebooks/laptops; TVs; eReaders; video game consoles. Innovation Movement (Slide 9): We need to continue to foster an Innovation Agenda. Great progress was made in 2011. Need a strong global economy to ensure our industry has continued success. Page 3 of 20 CE industry is defined by innovation, however we face challenges that threaten to stifle the innovative spirit that makes our industry and America great. Innovation Will Drive Economic Success in the 21st Century Innovation is America’s true economic advantage over competitor nations. CEA’s Innovation Movement has more than 130,000 members who believe innovation will bring America into economic prosperity. There is a need for a grassroots, bipartisan effort to return innovation to the center of U.S. economic policy and to hold politicians accountable. Platform is broad-based, encompassing multiple areas: Immigration, Free Trade, Broadband, and Fiscal Policy We also fight for regulatory reform and issues that protect upstanding American businesses against copyright infringement and counterfeiting. When the government goes too far -- as the US House of Representatives has recently done with a bill called SOPA, or the Stop Online Piracy Act -- we will oppose it to ensure that the Internet, on which so many of our Page 4 of 20 companies and products are based, remains free and unregulated. Policy #1: Wireless Broadband: Building a 21st Century Infrastructure (Slide 10) U.S. must invest in a 21st Century broadband future – broadcasters not supportive of voluntarily auctioning their underutilized wireless spectrum. Upgrading and expanding U.S. broadband infrastructure critical to maintain nation’s competitive edge. There are now more wireless devices in the U.S. than the population of the U.S, and those smartphones and tablets are using more spectrum than ever. Incentive auctions are a win-win-win. Broadcasters get money for spectrum they never paid for. Consumers get more wireless spectrum to fuel the broadband needs of their connected devices. And the U.S. treasury gets tens of billions of dollars in badly needed deficit reduction from spectrum auction proceeds. We think there is a high likelihood that the supercommittee understands this and will recommend spectrum auctions as Page 5 of 20 part of their deficit reduction strategy when they report back later this month. Policy #2: Passing Pending and New Free Trade Agreements (Slide 11) CEA has been at the forefront of advocacy in support of free trade agreements. Thrilled to finally see passage of Colombia, Panama and South Korea FTAs. Past 15 years, free trade has helped foster a high-tech boom, created more than 25 million jobs and increased real wages FTAs keep U.S. competitive with emerging economic powers: China. Policy #3: Immigration Reform: Attracting the World’s Best and Brightest (Slide 12) The U.S. is losing the world’s best and brightest to competitor nations because of our immigration policy. We kick out foreign students after they earn their math and science degrees. Need to reform H1B visa system. Encourage immigrant entrepreneurs, like Canada does. Page 6 of 20 Inaction on immigration will only lead to U.S. losing its competitive edge as the world’s best and brightest choose to live elsewhere. From 1995 to 2005, immigrants helped create a quarter of all high-tech companies in America, creating 450,000 jobs, according to Partnership for a New American Economy. Imagine how much more we could bring to the economy if we let more foreign-born, American-educated entrepreneurs set up shop right here in America? Policy #4: Debt/Deficit – Getting Spending Under Control (Slide 13) Right now, we are saddling our children with unsustainable debt. To get out of debt, we have three choices: o Raise Taxes o Cut Spending o Grow the economy Government spending o removes capital from the private sector o distorts the market o Favors Big Business over Start-ups o Favors Big Labor over Owners Page 7 of 20 Any other action we take to boost growth and create jobs won’t matter unless we significantly reduce the deficit and debt. Growth comes from INNOVATION -- and we are pushing the supercommittee to acknowledge that and respond accordingly You Can Help: Join the Innovation Movement, Help Save the American Dream (Slide 14) Many of you already have joined CEA's Innovation Movement. I encourage the rest of you to do so today. (DeclareInnovation.com and on Facebook and Twitter) Hold politicians accountable. From our website, you can contact your member of Congress via email, Facebook or Twitter. Grassroots Activism: Sign the Declaration of Innovation. 2012 International CES (Slide 15): CEA’s largest innovation event and the world’s largest consumer technology tradeshow, the 2012 International CES. Page 8 of 20 Exciting plans in store for the 2012 International CES. Don’t forget, this year’s show runs on a Tuesday – Friday schedule. (Slide 16) The International CES is the largest consumer technology tradeshow in the world. The 2012 show will feature 1.7 million net square feet of exhibit space – more than 25 football fields of CE products and services. The show floor in 2012 will be larger than the 2011 CES. CES exhibitors generate more than half a billion dollars in business as a direct result of attending the International CES. Each attendee holds an average of 12 business meetings while at CES. More technology business deals are made during the International CES than anywhere else in the world. CES attracts more than 140,000 industry professionals from 140 countries. This year’s show is shaping up to be stronger than ever with more than 2,700 technology companies exhibiting. And now I’d like to turn the podium over to CEA’s senior vice president of events and conferences, Karen Chupka, the person who makes it all happen. Page 9 of 20 (Karen) CES Social Media (Slide 17): Keep up-to-date on the latest CES news and announcements through our social media tools. Visit us on Facebook, follow us on Twitter at #CES and download the CES app Follow Me. This interactive app, available for smartphones, provides exhibit maps, exhibitor information and real-time show alerts. Pre-CES Press Events (Slide 18): Media events kick off two days before the show opens. CES Unveiled: The Official Press Event of the International CES is scheduled from 4-7 p.m., Sunday, January 8 in the Venetian Ballroom. The CES Press Day is scheduled for Monday, January 9, with 23 exhibitor press conferences. This is our largest Press Day in CES history. New for this upcoming CES, we will have Press Day Power Sessions – 30 minute press conferences running throughout the day. Press Day at CES is designed with the convenience of the media in mind, and we encourage you to take full advantage of our full press day line-up. The complete schedule is available online at CESweb.org. Page 10 of 20 Press Rooms at CES (Slide 19): Two official CES press rooms for 2012, one in the South Hall Connector of the LVCC, room S229, and in Zeno 4601, level 4 of The Venetian. New for 2012 is a Digital Media Center in the LVCC, South Hall, S221. Press room hours can be found online at CESweb.org. Transportation (Slide 20): We are working to ensure a smooth travel experience between the LVCC and the Venetian. Pedestrian walkways at the LVCC have been improved for safer travel. Additionally, we are working with the city of Las Vegas to adjust the traffic light schedules to streamline travel between venues. TechZones (Slide 21): We have more than 25 TechZones planned for the 2012 CES, which you can see on the slide. TechZones will highlight the latest in 3D technologies, electric vehicles, fitness tech, digital health and more. The iLounge Pavilion, featuring all things i-related, continues to grow. The area currently has 300 exhibitors and covers more than 80,000 nsf. We’re excited that this TechZone featuring products and Page 11 of 20 accessories for the Apple ecosystem has expanded to three times its original size. (Slide 22) A few new TechZones include: o PMA@CES: This new area at The Venetian will feature the most-concentrated exhibits of photo and imaging products and technologies. PMA@CES will span more than 30,000 nsf. o Eureka Park: is an area showcasing starts-up and entrepreneurs looking to break into the CE market. To date, we have more than 70 companies in this space. Entertainment Matters (Slide 23): The Entertainment Matters program at CES was launched in 2011 and we’ve expanded the program for 2012. Entertainment Matters is designed by and for Hollywood’s film, television and digital communities. The program illustrates the ever-important relationship between content and technology. We have several programs as part of the Entertainment Matters program at the 2012 CES. These include (Slide 24): o The International Academy of Web Television (IAWTV) Awards: Those successfully creating entertainment for digital platforms will be celebrated across 33 categories. o Technology & Engineering Emmy® Awards: For the sixth consecutive year at CES, the National Academy of Television Page 12 of 20 Arts and Sciences (NATAS) will present the Emmy® Awards for Outstanding Achievement in Engineering /Technical Development. o Next Generation Program: CES has created an invitation-only, custom experience for Hollywood’s next generation of leaders. o Red Carpet Program: The Red Carpet Program is an exclusive, invitation-only VIP program open to a select list of executives, directors, producers and talent. The program is designed to maximize the experience at CES. o (Slide 25) Celebrity Ambassador: We recently announced the first-ever Entertainment Matters Celebrity Ambassador, Eliza Dushku. Eliza is known for her roles in Buffy the Vampire Slayer and its spinoff series, Angel, as well as Tru Calling and Dollhouse. o Eliza will be on-site at the show talking about the cool product announcements and technology buzz. o There will be an Entertainment Matters exhibit area at CES with major companies including Blockbuster, Neustar and ESPN 3D. Page 13 of 20 Keynotes (Slide 26): We have a dynamic keynote lineup for the 2012 CES. These slides list our 2012 CES keynoters. We have two locations for our keynotes this year, The Venetian and Las Vegas Hilton Theater. I’d like to turn the podium back to Gary for more CES updates. (Gary takes podium) LIT Keynote Announcement (Slide 27): Thanks, Karen. We’ll have a few more speaker announcements before January. One announcement I’m thrilled to make today is that John Donahoe, president and CEO of eBay Inc., will deliver a keynote address at the Leaders in Technology Dinner at CES. The LIT dinner, honoring technologists and policymakers who support innovation, will take place at 6:30 p.m., Wednesday, January 11. Past LIT speakers included Reed Hastings of Netflix and Cisco’s John Chambers, and it is always a highlight of CES. ESPN Announcement (Slide 28-35) We have a special guest today. ESPN’s Bryan Burns is with us to talk about ESPN 3D’s plans for the 2012 CES. (Bryan Burns to take stage) Page 14 of 20 (Following Bryan’s Announcement, Gary Takes Podium) Thank you, Bryan, for sharing ESPN 3D’s exciting plans for the 2012 CES. SuperSessions (Slide 36): FCC Exciting conference session at CES is the one-on-one SuperSession discussion I will be having with FCC Chairman Julius Genachowski. Gives attendees a unique opportunity to hear the FCC Chairman’s views on issues such as broadband, spectrum reform and competition policy. The FCC Chairman always makes news at CES, and media that cover the FCC and the industries it regulates will want to be there. Event details are on this slide. Global Perspective on Retail (Slide 37): Another important session will be the Global Perspective on Retail. Panelists include Best Buy’s CEO Brain Dunn. Session to focus on challenges and advantages in the global retail market. Page 15 of 20 Innovations I’d now like to turn the podium over to Jason Oxman, CEA’s senior vice president of Industry Affairs, who will announce our industry’s most innovative products as selected by panels of expert judges – the 2012 International CES Best of Innovations Design and Engineering Award Honorees. (Slide 38) (Jason enters stage) Jason Thank you, Gary. For the past 35 years, the Innovations awards program has provided a forum to showcase the industry’s next generation of technology products. We had a 10 percent increase in entries this year, with nearly 1,000 entries. These innovative products, which are judged by engineers, independent designers and journalists for each product category, reflect the advancement of the consumer technology industry. The Best of Innovations awards are given to the most honored products across 32 innovations categories. The Best of Innovations designation is awarded to products that earn the highest honors from a panel of judges, which include engineers, independent designers and journalists. Page 16 of 20 And now, I am pleased to announce that the products listed on this slide … (Slide 39) received the 2012 Best of Innovations award (PAUSE). They will be featured on CESweb.org. And a variety of these products also will be demoed at a tabletop display downstairs at CES Unveiled. I have a few of these innovative new products to share with you now. Basis Belt: The first product we have is the Basis Belt. This is the world's first connected health and heart rate monitor that is wearable on the wrist. A multi-sensor band collects data like your heart rate, calories burned, physical activity and sleep patterns and links wirelessly to a personal dashboard. Nest Learning Thermostat: Next, we have the Nest Learning Thermostat. This thermostat learns your preferences, programs itself to keep you comfortable, and guides you to energy savings. It saves energy when you’re away and adjusts itself to your schedule. Page 17 of 20 Devialet D-Premier: Finally, we have the Devialet D-Premier. The Devialet D-Premier forms the hub of a high-performance audio system by combining a preamplifier, a patented Analog Digital Hybrid stereo power amplifier and a digital-to-analogue converter in a single elegant slim case. You can see these Best of Innovations products, and more, downstairs after this press conference. And now I’ll turn the presentation back to Gary for more announcements and guest speakers. Gary: Thank you, Jason, for showcasing these award-winning products. Information on the Innovations honorees can be found on CESweb.org. Monster Announcement/Noel Lee Introduction (Slide 40): The Monster Cable concert, in conjunction with its Monster Cable Awards Program, is an exciting event at CES. Please join me in welcoming Noel Lee, Head Monster, to announce the company’s musical act for the 2012 International CES. Page 18 of 20 (After Noel’s announcement) Thank you for being here today, Noel. The Monster Cable Awards and Concert is always a phenomenal event. Let’s review why the 2012 CES will be the most exciting in our history (Slide 41): o Bigger than last year with more than 1.7 million net square feet of exhibits. o Six of the world’s top ten auto manufacturers. o 70 new technology startups in Eureka Park. o Entertainment Matters featuring Eliza Dushku, the first CES celebrity ambassador for the Hollywood community. o Events from live boxing to exciting concerts and parties. o More Press Day press conferences than ever before. o iLounge TechZone that has expanded three fold. o The 2012 CES sets the stage for an exciting year in technology, and we can’t wait to see you there. Karen and I now have time to answer a few questions. Who would like to ask the first question? Gary and Karen answer questions for 5 minutes. Page 19 of 20 (At the conclusion) Gary (Slide 42): Thank you for joining us and we look forward to seeing you in January at the 2012 International CES. Please join us downstairs on the first floor for product demonstrations at CES Unveiled and for the networking reception. Thank you. Page 20 of 20