New Challenge in CAE from AsiaNew Challenge in CAE from Asia

FunctionBay, Inc.

Company History

- 1997 : Recursive Dynamics Inc. was founded in Korea.- 2000. 2 : RecurDyn V2 was released and marketing was started. - 2000. 9 : FunctionBay U.S.A was founded- 2000. 9 : The company name was shifted to FunctionBay Inc.- 2000. 9 : RecurDyn V3 was released.- 2000.10 : KUSCO-Japan invested and is selected as a Japanese

Business Partner - 2001. 6 : RecurDyn V4 Release seminar in Tokyo- 2001. 8 : RecurDyn is introduced and distributed in Taiwan- 2001. 9 : RecurDyn V4 Release seminar in Shanghai, Beijing- 2001.10 : RecurDyn is introduced and distributed in China- 2001.10 : RecurDyn is introduced and distributed in South-Asia- 2001.11 : RecurDyn V.4.1 is Released - 2002.02 : First FunctionBay User Conference- 2002.04 : FunctionBay China will be established

Company Symbols

Name : FunctionBay, Inc.Logo :

Slogan : It just works betterRecurDyn Logo

Color : Blue

Products

RecurDyn/Solid : CAD & Modeler, Animation, Post-Processor RecurDyn/Solver : Rigid & Flexible MBD RecurDyn/Toolkits : Flex, Linear, Auto, Train, HM-Track, LM-Track, Chain, Pulley, Control, Manager, Electro, Hydraulics, 2DMTT, 3DMTT, Cable, etcCFDyn/Professional : PlannedEngineering Solver business (OEM Business)Game solver and other applications

Current Key Customers

Komatsu Ltd., Alpine Japan, HitachiKomatsu Ltd., Alpine Japan, Hitachi--Construction, HitachiConstruction, Hitachi--Machine Machine lab, Toyota, Seikolab, Toyota, Seiko--Instrument, FujiInstrument, Fuji--Film, ToshibaFilm, ToshibaTokyo Metropolitan Tokyo Metropolitan EduEdu. Center . Center Keenaw Keenaw Research Center (U.S. Army winter proving ground)Research Center (U.S. Army winter proving ground)Xerox, JohnXerox, John--DeereDeereSamsung electronics, HyundaiSamsung electronics, Hyundai--Heavy Industry,Heavy Industry,LGLG--Cable, HyundaiCable, Hyundai--Motors, HyundaiMotors, Hyundai--MobisMobis, Hyundai, Hyundai--Heavy electricHeavy electricAgency for Defense Development, POSCO Agency for Defense Development, POSCO Agricultural Machine R&D Center in KoreaAgricultural Machine R&D Center in KoreaKorea Machine R&D CenterKorea Machine R&D CenterKORAIL, Korea Institute of Science & TechnologyKORAIL, Korea Institute of Science & TechnologyTransportation Research Center, Korea Electric R&D CenterTransportation Research Center, Korea Electric R&D CenterMany Universities (More than 30 universities in worldwide) Many Universities (More than 30 universities in worldwide)

Company Structure

Function Bay HQ (Management Team)

International & Planning Marketing & Sales Finance & Accounting R & D Center

- Business Development - International Affairs- Legal Affairs- Foreign Function Bay

Subsidiary - Foreign Distributor- Foreign Partnership- Strategic Planning

- Domestic Marketing &Sales

- Domestic Partnership- Domestic Advertisement - Training & Education - Consulting- Manual Development - Quality Control

- Finance & Accounting- Tax- Material Procurement- Human Recourses

- Development- Consulting- Test

Interface 1

Interface 2U.S. operation, FBUS

JP operation, KUSCO

KR operation, FBK RD Solver

CFD CN, AP operation, FBC

Worldwide Sales Channel ExpansionKorea (Since 2000. 3)

FunctionBay Inc, SeoulJapan (Since 2000. 11)

KUSCO-Japan, Tokyo, OsakaUSA (Since 2000.10)

FunctionBay Inc. USA, Ann Arbor, MichiganChina (Since 2001.11),

FunctionBay China (2002. 4), BeijingSub-Distributor in Beijing, Shanghai, Chendu

South-Asia (Since 2001. 9)Distributors in Taiwan, Singapore, Malaysia

Europe (Since 2003) : Planned

CAD/CAE Market Consolidation

Test

OtherAuto/AeroAuto/AeroIndustries

Pro/DesktopMid-Range

ACIS?Solids

VericutUnigraphicsDenebCAM

Mech-anicaMechanical System

Simulation

MechanicaFEA

DivisionNavigatorDMU

WindchillENOVIAPDM

Partners?EDSIBMServices

PTCUnigraphicsCAD/CAM

SolidWorks Solid Edge

Elfini, GPS, SRAC

Kinematics

Solid EdgeSolid EdgeSolid EdgeSolid EdgeSolid Edge

Ideas

What is the best combination of software?

Market Situation in Mechanical Simulation

MBDFEA

Buyer’s MarketSlow Revenue IncreaseLess New Rooms in MarketMany Strong CompetitorsTechnically Well EstablishedSeveral SolutionsGeneral UI is good for Designer

Seller’s MarketFast Revenue IncreaseLarge New Rooms in MarketOnly One Big PlayerTechnically in Early Stage Only One Best SolutionGeneral UI is not enough for Designer

Market AssessmentTarget Revenue in 2004 : $ 10M Driving Force : Best product, Best service, Best pricePenetrate weak areas of competitors (High speed, High stiff, andDiscontinuity problems)

Automotive (cars, light trucks, heavy trucks and off-road vehicles, train)Aerospace (planes, spacecraft, defense, satellite)Machinery (manufacturing and assembly equipment, printing presses, etc.)Electro-mechanical products (photocopy machines, magnetic and optical storage devices, laser and inkjet printers, etc.)

The total Mechanical CAE market is approximately $1 billion, buthuge rooms for Design area.

However, this market deals today primarily with engineering analysts. It is very important to realize that the development of custom product simulation modules can greatly expand the user base and usage related to product simulation.Robust and fast solver is absolutely necessaryToolkits, Macro and Customization

RecurDyn RecurDyn / Professional ComponentsComponents

Solid Modeler(CAD Interface)

Toolkits

RecurDyn / Professional

Solver

Post Processor(Animation +

Plotter)

RecurDynRecurDyn / Architecture DesignArchitecture Design

RecurDyn V4Modeler

CAD EmbeddedModeler

CAE OrientedModeler

CAD Like Modeler For CAE Good For Modeling

but Bad for Engineering

Analysis

Mechanica Motion,

DDM, etc

Good For Engineering

Analysis but Bad for

Modeling

ADAMS, DADS,

NATRAN/PATRAN

Etc.,

Good For Modeling

And Also Good for Engineering Analysis

RecurDyn

RD/Toolkits

RecurDyn

CAD Embedded CAE Oriented

Modeling Perform

ance zone

Engineering Performance zone

ＸAdvantages of CAE oriented Advantages of CAD embedded

+ Toolkit (Extension of engineering performance)

RecurDynRecurDyn=

Competition : Strengths and Weaknesses

CompetitionsHigh-Range : ADAMS, DADS, Mechnica, SimpackMid-Range : DDM, Working ModelCFD/Professional : Star-CD, Fluent, CFX, ICEPAK, FIDAP, etc

Product StrengthsRobustness and Simulation SpeedSuperior User InterfaceCustomizability (Macro) and ToolkitsLow Development Cost

Product Weaknesses NewnessNot Much Business ExperiencesSales Channels are developingLimited Financial Recourses

Mechanical System Simulation Market (2000)

$ 100 Million with 10% - 20% increase every year

Etc.15%

DADS10%

Pro-M15% WM

5%

ADAMS55%

Expected Mechanical System Simulation Market of FunctionBay (2005)

$ 150 Million with 5% - 10% increase every year

DADS10%

Etc.10%

RecurDyn15% Pro-M

10%

ADAMS55%

Revenue of RecurDyn

0

5

10

15

20

25

30

1 2 3 4 5

Year

Million D

ollar