Connecting the Dots
Jeannine SargentPresident, Innovation & New Ventures
May 6, 2015
2015 INVESTOR & ANALYST DAY
Flextronics InnovationVideo
The Intelligence of Things™ is an evolving ecosystem of smart, connected devices, machines and
systems that interact to deliver greater capabilities, efficiencies, and
experiences – changing the way we live, work and play.
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Transportation
25%vehicle
damage cost reduction
$200Billion
Energy
2.5-5%operating cost
savings
$500Billion
Healthcare
10-20%chronic disease cost reduction
$2Trillion
Consumer
100% connected
device growth
$1Trillion
Agriculture
10-20%yield increase in application
$100Billion
*Potential Economic Impact in 2025Source: McKinsey Global Institute, Machina Research 3
Access to new & tested technology
building blocksDevelopment partner
ecosystem
Experienced design & engineering teamsEntry into new &
adjacent marketsEarly stage
engagement
Sustainable Innovation
Improved product reliability
Accelerate time to market
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Flextronics Intelligence of Things™ Ecosystem
…from sketch to scale
Develop IdentifyCultivate Commercialize
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Cultivateand accelerate
Collectiveinnovation
Consortia
Investments
Suppliers
OEMs
Employees
Centers of Excellence
Startups
Research Institutions
Universities
Collective Innovation™
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Security & Computing
Developthe smart
components thatenable intelligence
Sensors & Actuators
Flexible Technologies & Miniaturization
Battery & Power
Human Machine Interface
Connectivity
Smart Software
Technology Centers of Excellence
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Identifyand leveragetechnology
across industries
Aerospace & Defense
Communication Healthcare
Consumer Electronics
Energy
Automotive
Fitness/Wellness Machine to
Machine
Connected Living
Market Applications
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Commercializerelevant product
solutions
Reverse Logistics
New Product Introduction
Distribution
Certification
Prototyping
Manufacturing
DesignTax & Trade
Go To Market
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*Source: Park Associates, GSMA Research
Digital Health Example 33%CAGR
$5.7Bin 2015
$97Bin 2025
Digital Health market growth*
Cultivate
Medical grade technology sources
Identify
Cross-segment integration (smart patch to smartphone)
Develop
Technology blocks to smart wearable patch
Commercialize
Regulatory and regionally certified solutions
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Investing in Sustainable Innovation
• 2500+ engineers
• 6 product innovation centers
• Lab IX / ICE / Strategic partnerships
• Interconnect Technology Center
• Real-time information solutions (e.g. Elementum)
Innovation Investments Flextronics Impact
• 7 technology centers of excellence (CoE)
• 130 technology building blocks
• 270+ patent applications filed in FY15
• 330+ Design customers in FY15
• 1000 Design wins in FY15
• >$3B FY15 revenue attached to new design wins with multi-year tail of on-going revenue
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Sustainable Innovation Drives Value For Flextronics
New customerengagement model
From “Build to Print” to “Sketch to Scale”
Growth in engagements
Engagements with Design & Engineering attached
2013 2015 2018
< 5%
> 15%
> 30%
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