design. build. ship. service....a high-tech dvd vending machine with the ability to hold thousands...
TRANSCRIPT
Design. Build. Ship. Service.
Design. Build. Ship. Service.
Design. Build. Ship. Service.
E.C. SykesPresident, Industrial
Flextronics Mid-Year Business UpdateNovember 17, 2009
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Agenda
Financials
Green Energy Activities
Competitive Position
Segment Overview
Strategy to Win
Product Examples
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As compared to traditional EMS, Industrial services are
• More focused on high complexity & mechanical assembly
• Lower product volumes
• Higher skilled
• Strong use of Flextronic’s vertical capabilities
TechnologyTechnology
• Intense focus on each market’s uniqueness
• Dedicated and aligned team• Dedicated market teams
• Know their market, leaders, trends, competitive strategies, service models
• Leverage Flextronics competitive advantage in purchasing power and global management system
Focus
Flextronics Industrial: Positioning
• More High Mix then any other EMS
• 150+ Customers
• 94% of the customers have Flextronics revenue less than $75M/year
• Wide variety of markets
Customers
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Location is Key
Europe22%
Americas41%
Asia37%
•Regional Solutions: Focused Footprint to Address Customer Needs•Low Cost Solutions: For Global Requirements
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0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
3,600
4,000
4,400
Flextronics
Jabil
Celestica
Benchmark
Sanmina
Venture
Plexus
Foxconn
$M
2005 2006 2007 2008
Source: IDC WW Electronic Manufacturing Services Forecaster 2009
Industrial - EMS Revenue 2005-2009
4 years of continuous strong growth
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Diverse Customers and Markets
High Value Printing
Meters & Controls
Capital Equipment
HomeAppliances
Self Service Solutions
Security& Safety
EmergingMarkets
Aerospace& Defense Automotive Solar
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3Create flexible operational solutions
catered to customer’s needs
4
Organize and market ourselves to address
customer concerns•Focus of a small company, Resources of a large company•Flexible and creative business solutions
5 Aggressively penetrate new markets
2Use small acquisitions to break down barriers
and enter new markets
Strategy to Win
1Focused strategy for each Division•Grow current relationships•Adjacent markets
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Strategies Enabling the Growth
StrategiesAppliances Move from Sub-assembly to Full Product Assembly
Automotive Motion Control, Interior Lighting, Energy Management
Aero/Defense Dedicated Military Operation
CleanTech Enable Green Technologies
Capital Equipment Packaging and LED Equipment
Meters/Controls Smart Grid, Home Automation
Self-Service Vending, Gaming
Oil/Gas Dedicated site (Houston), expanding services
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AutomotiveCapital Equipment
Lighting
Flextronics Announces CleanTech InitiativeSmart Grid
Solar Energy
Smart Appliances
Off Grid Lighting
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Flextronics Announces CleanTech Initiative
CleanTech
Position• #1 - Water Meters• Top 2 - Power Meters
• Engaged in Next Generation Designs
Products
Smart Grid
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Flextronics Announces CleanTech Initiative
CleanTech
Position• Dedicated Team
TechnologyOperations Sales
• Leading provider of micro-inverters
Products
Solar Energy
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Flextronics Announces CleanTech Initiative
CleanTech
Position• Largest Provider of Appliance Sub- Assemblies
• Strongest Position to Deliver Smart Home & Grid Solutions
Products
Smart Appliances
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Flextronics Announces CleanTech Initiative
CleanTech
Position• Major Provider in Developing Automotive Energy Management
Products
Automotive
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Flextronics Announces CleanTech Initiative
CleanTech
Position• Largest Provider in Solar Equipment Manufacturing
Products
Capital Equipment
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Flextronics Announces CleanTech Initiative
CleanTech
Position• Provider in Developing the LED Lighting Market
• Relocating Jobs back to US
Products
Lighting
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Flextronics Announces CleanTech Initiative
CleanTech
Position• Largest Provider of Off- Grid Lighting
Products
Off Grid Lighting
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15-18%
17-20%17-21%
($ In Billions)
2009 2010 2011E 2012E 2013E
$5B
$4B
$3B
$2B
$1B
$0
Source: IDC Worldwide Electronics Manufacturing Services Industry Forecast 2009
Industrial Market Segment Size and Growth Rates
EMS Industry Average 9.8% CAGR
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Cool Stuff Beyond PCBA
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Solar Energy
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Solar Micro-Inverter
Microinverter Systems are making solar power systems more productive, more reliable, and smarter
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Solar Power Optimizer
As little as 10% shade on an array can result in as much as 50% lost energy. Power optimizers maximize the energy potential of each individual panel so as much as 50% of the lost energy can
be reclaimed.
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Centralized Inverter
A highly reliable centralized inverter. MPPT and voltage management are handled separately for each module, the inverter
is only responsible for DC to AC inversion. Consequently, the inverter is less complex and more reliable than traditional
inverters.
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Solar Powered Off Grid Lighting
Best-in-class solar LED lighting and solar power systems for industrial applications worldwide
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Downhole Explosive Electronic Device
Used to change the transmission power setting and the frequency and speed of transmission. It also allows turning the
downhole tool on and off to take surveys when needed and optimize battery life.
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Wireless Blasting systems
Detonators are fully programmable and have on board digital timing circuits, energy storage enabling them to function
independently once the fire signal has been sent
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Capital Equipment
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Semiconductor Capital Equipment
The leading supplier of capital equipment for fabricating, testing and packaging Semiconductors
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Solar Panel Fabrication
The leading supplier of capital equipment for fabricating crystalline silicon, thin film, and flexible PV solar.
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Solar Panel Fabrication
The leading supplier of capital equipment for fabricating crystalline silicon, thin film, and flexible PV solar.
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Personal Portable Lifts
Portable aerial work platform combines the portability of a ladder with the freedom and functionality of a work platform.
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Automotive
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Electric Vehicle Charging Station
Electric Vehicle driver services, systems and infrastructure. Subscribers and guests will have access to a network of charge spots, switch stations and systems which optimize the driving
experience and minimize environmental impact and cost.
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Energy Management System, Ultracapacitor Energy Storage Systems
Ultracapacitor based system are designed to, Start engines, Provide high peak power for transient loads, Stabilize grid
voltage, Recuperate energy, Extend battery life time, Enable additional electrification, and Electrical drive. Fuel save potential
on light vehicles of up to 0.2 ltr. per 100 km.
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Field Guidance products
The agriculture family of laser products provides accurate grade control to ensure adequate crop irrigation or drainage for
maximum yields, while reducing water and installation costs. These guidance products help you complete field application
faster and more productively, accurately,
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Aerospace and Defense
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Rugged Tablet PC’s
Flextronics partners with the vendor who has been leading the ruggized mobile market for over 13 years
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PCBAs for Naval Strike Missile
PCBA for the Naval Strike Missile (NSM), an anti-ship and land- attack missile. Already chosen by the Royal Norwegian Navy for its
new frigates and new coastal corvettes, The NSM is also contracted by the Polish Navy for use on its new coastal artillery
installations
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Rescue Beacon
A survival-type salt-water activated beacon. Our customer is the leading supplier of emergency locator transmitters for more than 25 years. More than 30,000 ELTs have been delivered to airlines
worldwide.
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In-ear Ancillaries
The worlds most advanced in-ear digital hearing protector and communication headset for use with military tactical radios and
intercom systems, has generated sales of 50,000 units in 13 countries on 4 continents.
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Entertainment and Gaming
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DVD Rental Machine
A high-tech DVD vending machine with the ability to hold thousands of discs, convert used discs into cash or credit at the
retailer and a playability check on every disc dispensed.
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Digital Media Rental Machine
The solution includes a high-capacity kiosk that enables rentals, sales of shrink-wrapped media or a combination – with a capacity
of nearly twice that of competing units on the market today. In addition to transactions at the kiosk, consumers are able to
interact with the Kiosk via the Internet or their mobile devices.
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DVD Rental Machine
This DVD rental machine is located in 12,000 retail locations, including McDonald’s outlets, *Wal-Mart* and Walgreens stores,
and rents movies for $1 per night.
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Photo Printer Kiosk
With almost 100,000 Picture Kiosks worldwide, the clear market leader in providing quality prints and gifts to consumers
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'Tune-Up at the Gas Pump'
Engine cleaners are mixed into your fuel as you pump and clean your engine while you drive. The customer is the leading provider of
specialty fuel additives and fuel system maintenance at the gas pump island.
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Slot Machine
Recognized as the industry systems leader with more than 345,000 machines and 625 casino, bingo, Class II, central
determination and lottery locations worldwide
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Gaming Ticket Redemption & Bill Payment
Casinos are converting their traditional coin or token operations into cashless ticket-in ticket-out transactions (TITO) for winnings.
With the recent advent of member guest cards, customers can add and subtract value from their cards and when they are ready to "cash out" , they insert their cash-out tickets into a kiosk and
this unit dispenses their cash
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Flex KioskFrame Self-Service Software Development Kit
With over 10 years experience and 200 successful self-service deployments, the Flextronics VendiSoft™ software platform has
become an industry standard for self-service kiosk systems.
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Security & Safety
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Remote Network Security Solution
Allows you to remotely monitor your doors and grant entry to your home. From any computer or cell phone with an internet connection, you can unlock your door, monitor who's coming
and going, and even receive text message alerts from the system.
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Fire Alarm
The world leader in electronic security and fire protection to more than 7 million customers worldwide.Among their customers are
over 5 million homes and 2 million commercial businesses in over 50 nations
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Loss prevention system
A loss prevention system and shrink management platform They enable the antennas to communicate with retail IT systems and
system peripherals, such as people counters and retail management software tools to protect products against theft and
other forms of loss
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Appliances
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Washing Machines End to End
The world's leading manufacturer and marketer of major home appliances, with annual sales of approximately $19 billion, 70,000
employees, and 69 manufacturing and technology research centers around the world.
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Automated Hose Reels
The touch of a single button on the top of the unit retrieves a hose quickly. Automatically feeds out and reels up without
kinks. Programmable up to 30 days for timed watering and puts itself away when done
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Meters and Controls
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LED Lighting System
A breakthrough in light: the first and only general illumination LED system that provides beautiful color, high efficiency and
eco-friendly technology
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Network Gas & Power Meter
Smart Meter employs a secure, licensed radio frequency to transmit and receive data at regular intervals for numerous utility
customers across North America. Compatible with gas, water, and electric meters, this Smart Meter Network offers a proven-at- scale, redundant system architecture that ensures data security
and reliability.
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Smart meter
The integrated display in this Advanced residential meter is one of the most efficient and reliable
AMI-ready electric meters available. The meter combines AMI communications and meter display on one board,
making the meter much more reliable and efficient than AMR meters with expansion boards.
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Machining , Fabrication, and Metal Stamping
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5 Axis Machining and Precision Metal Fabrication
Common equipment used in US and Singapore allowing easy transition to Asia region
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Flex Global Machining and Electromechanical Assemblies
Heaters
Temperature Control Units Vacuum Chambers
Process Chamber
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3Growing faster than the
market
4
2
Market leadership
Take Aways
1
Diverse set of technologies and markets
Creating a competitive advantage for our customers