design. build. ship. service.€¦ · partnership award . supplier award - excellent operation...

1Design. Build. Ship. Service.

Design. Build. Ship. Service.


Mike McNamaraChief Executive Officer

Flextronics Mid-Year Business UpdateNovember 17, 2009


Flextronics: A Global Services Provider

120,000 Asia (90,000 in China)

~$24B Revenue

200,000 Employees Globally; 20,000 Logistics/Services

30 Countries; 27M Square Feet


Flextronics – Our Service Model

Design.

• Industrial Design• System Architecture• Mechanical Design• Embedded

System Design• Software Systems• Product Launch/NPI• DFx Services

Build.

• PCB/Flex Circuits• Optomechatronics• LCD Displays• Cables• Machining• Plastics• Metal Fabrication• SMT Assembly• System Integration

and Final Test

Ship.

• Build-to-Order• Configure-to-Order• Distribution and

Direct Fulfillment• Outbound Logistics

and Hubbing

Service.

• Repair/ Refurbishment and Warranty Support

• Service Parts Logistics• Remarketing• Retail Technical

Services• Asset Recovery• Reverse Logistics


Mechanical Assembly

Bonded WarehouseCentral Warehouse

PCB Fab

Rigid Flex & Flex CircuitPCB Assembly

PCB Assembly

Plastics, Metal and Assembly

Plastics and Metal

PCB Fab

Cafeteria Expansion

North Campus

PCB Fab


Industrial Park Example – Zhuhai, China


Revenue Growth FY94 – FY10E

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Revenue 131 237 448 1,498 2,578 3,953 6,959 12,110 13,105 13,379 14,530 15,731 15,288 18,854 27,558 30,949 23,740

FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 *FY10

US$ (Mil)

*FY10 Source First call consensus estimates


1Broadest Penetration of ODM and EMS Market Segments

5

234

INFRASTRUCTURE

INDUSTRIAL

MEDICAL

COMPUTING (ODM)

MOBILE & CONSUMER

Electronic and

Mechanical Technologies


1Broadest Penetration of ODM and EMS Markets

5

234

Ethernet switches & routers

Broadband access equipment

Servers and storage

Customer premise equipment

Set-top boxesOptical transport equip.

Telephone switching & PBX equipment

INFRASTRUCTURE

Capital equipment

Appliances

Smart grid meters/controls

Automotive

Aerospace

Defense

Energy/Solar

Self service –kiosks

Consumer diagnostic devices

Diabetes products

Drug delivery devices

Lab/Life science equipment

Imaging & Patient monitoring

Diagnostic equipment

Disposable devices for wound management

Catheters

Instrumentation

PC Desktop All-In-One

Desktop All-In-One

Notebooks

Servers

StorageNetbooks

Smart phones

Cellular handsets

Data cards

Embedded modules

Digital cameras

Gaming consoles

Print & Copy

Security tags

Audio & Video equipment

Including flat panel TVs, DMPs and audio accessories

INDUSTRIAL

MEDICAL

COMPUTING (ODM)

MOBILE & CONSUMER


1Components and Services

5

234

MULTEK

OPTOMECHATRONICS

POWER

SERVICES

(PCB, Flexible Circuits, Touch Technologies, Materials, LCD Displays)


Component Solutions

Multek-PCB -Flexible circuit -Touch panels- Materials- LCD Displays

1OptomechatronicsIndustry leader in design, manufacturing and delivery of optomechatronics systems

2FlexPower1 to 3000 Watt Chargers, Adapters, Power Supplies120 Patents Highest efficiency power supplies

3


Reverse Logistics & Repair• Return Logistics• Repair• Remanufacturing• Exchange Fulfillment• Recycle/E-waste

Service Parts Logistics• Centralized Mat’l Planning• Procurement Execution• ASP Management• IT Systems Design

Distribution & SMI• Channel Fulfillment• Hub Operations• Kitting• Kanban Replenishment• FG Merge

Product Transformation• Built-to-Order• Configure-to-Order• Product Postponement• Supply Chain Design

1 2

3 4

Service Solutions – Over 20,000 People Worldwide

Field Services• In-Home In-Office Services•Technical Installation

Services• Home Theatre Set Up• Home Wireless Network• Full SMB Technology

Support

In Store Technical Services and Sales• In Store Repair • Technical Services• Post Sale Support• Diagnostic Analysis• Memory upgrades • Email Set up & Support

5 6


How it all Comes Together – Complex Product

Complex Backplane Interconnect

PCB & PCBA:

Optical Circuit Packs

Digital Circuit Packs

Electrical/Optical:

Power Systems:

Core Telecom Switch:

Enclosure, Rack, Chassis, Thermal Management

Mechanicals:


Evolution of Our Business Portfolio

FY 07 FY 10E

Source: FlextronicsMarket revenue segment percentages have been reclassified to reflect components and mechanicals and services revenue percentages


EMS and ODM Revenue Growth Forecast

$191

$229

$267$280

$233$249

$274

$301

$329

$150

$190

$230

$270

$310

$350

2005 2006 2007 2008 2009 2010 2011 2012 2013

EMS

+ O

DM

Rev

enue

s

2010 - 2013E CAGR: 9.7%

Source: IDC, Nov 2009

US$B


Continuously Expand the Total Available Market (TAM)

Traditional EMS

PCB

Power

LCD Displays

Opto-mechatronics

Services

Computing ODM

TOTAL

100 200 300 400

Total Available Market ($B)

500


We Remain Excited about the Remaining Growth Potential

FLEX PortfolioTOTAL

MARKETFLEX RANK

FLEX MARKET SHARE

TOP CUSTOMERS

INFRASTRUCTURE$34B No. 1 31% Cisco, Huawei, Ericsson

INDUSTRIAL$25B+ No. 1 14% App Materials, Siemens, Philips

MEDICAL$8B No. 2 10%

Boston Scientific, Medtronic, Agilent, Johnson & Johnson, Smith & Nephew

ODM COMPUTING$101B No. 7 1% HP, Lenovo, Dell

MOBILE & CONSUMER$44B No. 2 19%

RIM, LG, Microsoft, Sony, Philips, Kyocera, Motorola, Sharp, Toshiba

COMPONENTS $109B N.A 2%

Apple, RIM, Motorola, Honeywell, Cisco, Huawei

SERVICES (Excluding Freight) $22B N.A 7%

Apple, Dell, Verizon, Avaya, HP, Cisco, Juniper, Toshiba, Huawei

Source: IDC, Prismark, Micro-Tech Consultants, Display Search, TSR, Blumberg Advisory, FLEX estimates


Major Revenue Impacts in FY10

US$ (Bil)

$ 0

$ 5

$10

$15

$20

$25$30

FY09 FY10*

Rev

enue

s

Nortel~3%

Economy~11%

SE-9%

$30.9

$23.7~23%

*FY10 Source First call consensus estimates


Q4 FY09 Q4 FY10ECisco 1 Hewlett-Packard (HP)

Hewlett-Packard (HP) 2 Research In Motion (RIM)SEMC 3 Cisco

Research In Motion (RIM) 4 EricssonEricsson 5 Huawei Technologies

Nortel 6 Alcatel and LucentSun Micro 7 LenovoMotorola 8 Dell

Xerox 9 NortelAlcatel and Lucent 10 Sun Micro

Hewlett-Packard (HP)Research In Motion (RIM)

EricssonHuawei Technologies

Alcatel and LucentLenovo

Dell

Improved Customer Diversification

• We are now much less dependent on any one customer with a more diversified base • Beginning of FY09 SEMC and Nortel were ~25% of total revenue declining to approximately one-half that

amount (~13%) by Q4 FY09 below.• Q4 FY10 projected revenue for SEMC and Nortel are ~4%• No customer is >10% of total revenue


Revenue Growth Expectations FY10 – FY11

5 – 10 % 10 – 20 % > 20 % Key Customers

Infrastructure

Industrial

Medical

Computing

Mobile & Consumer

Multek

Optomechatronics

Power

Services

Segments

• Very balanced growth across all the operations

• Very high expectations for several of the divisions

• Breadth of the expected performance demonstrates the effectiveness of our model


Customer Awards 2009 — Probably the Most We Have Ever Received

Recognition for Guidance and Support of a Successful Completion of a Breakthrough Lean Project

Excellent Cooperation and Results for Box Build Outsourcing Award andExcellence Award in Auto Sampler New Product Launch

Quality Award (Flextronics Malu)

EMS Partner Operational Excellence Award and B2B Collaboration Award

2009 Outstanding Supplier Partnership Award

Supplier Award - Excellent Operation Performance and Best Customer Support

Recognition for Continuing Five-Year Manufacturing Partnership

Awarded Strategic Partner Status

Medical Design Excellence Award (MDEA)

Recognized for Timely Delivery of 10,000 Units of Alliance HPLC (High Performance Liquid Chromatograph)Excellent Core Partner Status

(Gold Award) for CY2009

http://www.cstl.nist.gov/div831/UniversalRNAStds/Affymetrix_color_logo_jpg.jpg

http://www.arubanetworks.com/index.php


Continuous Evolution and Diversification of End Markets

EMS

Mobile Phones and Printers Infrastructure ProductsSolar Panels &

Industrial Equipment

ODM

Notebooks All in One Net Books

Components

PCB Display, Touch PanelFPCA ITO Power supplies


Key Takeaways

Extremely broad and diversified business

We have invested in and will continue to expand the available market

Our competitive position in most markets is exceptional

Scale of our company is a major differentiator

Very experienced management team that executes

design. build. ship. service.€¦ · partnership award . supplier award - excellent operation...

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