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Industrial & Emerging IndustriesEC SykesMay 31, 2012
Industrial & Emerging Industries (IEI) Key Facts
Key Facts about IEIKey Facts about IEI
Integrated Network Solutions
~45%
Integrated Network Solutions
~45%
Industrial & EmergingIndustries
~15%
Industrial & EmergingIndustries
~15%
High Velocity
Solutions
~30%
High Velocity
Solutions
~30%
High ReliabilitySolutions
~10%
High ReliabilitySolutions
~10%
Flextronics Business Group
FY13E
• Fiscal 2012 Revenue: $4B• Scale: 60 sites• Fiscal 2012 Revenue: $4B• Scale: 60 sites
IEI Markets - FY13EIEI Markets - FY13E
• Scale: 60 sites• Capabilities: 3 design centers, 50+
active programs with increasing scope• Depth: Largest footprint in North
America and Europe with path to low cost
• Customer Base: 300+ customers with 80% with revenue $30M or less
• Industry Ranking: #1
• Scale: 60 sites• Capabilities: 3 design centers, 50+
active programs with increasing scope• Depth: Largest footprint in North
America and Europe with path to low cost
• Customer Base: 300+ customers with 80% with revenue $30M or less
• Industry Ranking: #1
20 Diversified Markets
Highlights FY12
Solid operating margins
$1.2B in new bookings
3 new markets
Solid operating margins
$1.2B in new bookings
3 new markets
Revenue Outlook ($M)Revenue Outlook ($M) Highlights FY12Highlights FY12
$3,107
$3,883 $4,003
10-15%
3 new markets
28 new customers
Expanded design team
New capability investment
3 new markets
28 new customers
Expanded design team
New capability investment
$3,107
FY10 FY11 FY12 FY13E
Consistent Bookings
Historical BookingsHistorical Bookings
$1,400
19%19%
20%20%
FY12 BookingsFY12 Bookings
Appliances & Lifestyle
23%
Equipment & Automation
23%
$500
FY09 FY10 FY11 FY12
14%14% Renewable Energy
17%
SBS
11%
Energy Management
26%
Structural Growth is Strong
Outsourced
Growth
2-3%*
Outsourced
Growth
2-3%*
$250B TAM
6-9% CAGR
5% Outsourced*
$250B TAM
6-9% CAGR
5% Outsourced*
7-10% CAGR7-10% CAGR
Source: IDC, NVR, Inforum, Gfk Group, Pike Research, Dahlman Rose & Co, Freedonia Group ,Frost & Sullivan, *RBC, Flextronics Research
The base business will grow at this rate
How We Will Grow 50% Faster Than Market
Market FocusOrganization and
solutions
Reduce RiskWe are the safe
choice
TAM Expansion
Adjacent Markets LeversWe are the safe
choice
ScaleCreates compelling value propositions
Engineering & Technology
Advanced services
Adjacent Markets Levers
Focused Solutions Drive Higher Growth
Experienced Leaders Delivering Specialized SolutionsExperienced Leaders Delivering Specialized Solutions
Energy Management
Solutions
Appliance & Lifestyle Solutions
SBSRenewable
Energy
Equipment & Automation Solutions
Growing Markets Served
FY09FY09
FY10FY10 11
7
8
FY11FY11
FY12FY12 20
17
Innovation and Penetration into New Markets
2010
1 GW solar site in Malaysia
2011Precision Machining
Extended in Singapore
Kiosk
Software
DevelopmentPainting for
High Gloss
Applications
Large Plate
Machining
Capital
Equipment to
Singapore
Precision
Machining
2007 2008
2009
2010
Scale Creates a Compelling Value Proposition
Materials – Better pricing and flexibility by leveraging Flextronics supplier relationships
Global Footprint - Largest footprint in NA and Europe with a path to low cost
We go to market with the power of a $30B company that
We go to market with the power of a $30B company that
Processes and Tools- Simplifying managing the global business
Top Talent - Access to top supply chain and operational teams at a variable cost
$30B company that enables us to win.$30B company that enables us to win.
Flex is Rewarded for Reducing Risk
Stability
Strong balance sheet
Experienced and proven management teams
Best in Class performance
Proven Product Launch
Launch in any geographical area with optimized operational solutions
Advanced manufacturing services to assist with design, manufacturability, and operational challenges
Global Scale
Architect best in class supply chain solutions to minimize disruptions
Regional to Global footprint managed by mature operational teams
Advanced Engineering and Technology Support
Demonstrated Design Expertise
Projects are increasing in scope
Customer participation is increasing
Expands margins while improving customer competiveness
Demonstrated Design Expertise
Projects are increasing in scope
Customer participation is increasing
Expands margins while improving customer competiveness
Assisting In Mechanical Technologies
Strong precision machining capability in North America
Expanding presence in China, Singapore, and Malaysia
Technology leader in plastics
Launching projects in multiple regions
Introducing new technologies to create differentiated solution
Assisting In Mechanical Technologies
Strong precision machining capability in North America
Expanding presence in China, Singapore, and Malaysia
Technology leader in plastics
Launching projects in multiple regions
Introducing new technologies to create differentiated solution
Moving Forward
10 – 15% IEI Growth
7-10% Market Growth
Diversified customer base grows at market rate
10 – 15% IEI Growth
7-10% Market Growth
Diversified customer base grows at market rate
3-5% Incremental Growth
Expanding TAM
Leveraging the scale of a $30B company
Specialized solutions
Reducing risk
Advanced manufacturing services
3-5% Incremental Growth
Expanding TAM
Leveraging the scale of a $30B company
Specialized solutions
Reducing risk
Advanced manufacturing services
INVESTOR & ANALYST DAY 2012
10 MINUTE BREAK