2015 INVESTOR & ANALYST DAY

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2015 INVESTOR & ANALYST DAY Paul Humphries President, High Reliability Solutions May 6, 2015

Transcript of 2015 INVESTOR & ANALYST DAY

2015 INVESTOR & ANALYST DAY

Paul HumphriesPresident, High Reliability Solutions

May 6, 2015

High Reliability SolutionsBuild long term value creation for Flextronics and our shareholders by focusing on strong revenue and margin growth, longer product life cycles

and increased predictability.

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*Compared to traditional competitors

Automotive Medical Aero & Defense

#1Industry(Technology and

Revenue)

#1*Industry(Technology and

Revenue)

79%(Bookings increase

over FY14)

HRS Business Groups

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205021% >60

AgingPopulation

20258bn

Connected

202050bn

Economic shifts

2050US #3

Natural resources

20301bn

Global Megatrends

Impact of Megatrends on HRS’s Markets

Zero Accidents Seamless Connectivity Zero Emissions

Improved Compliance Patient Centric, Outcome Based

Smart and Connected Solutions

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Our Approach to the HRS Megatrends

Deep industry expertise

Innovation Disruption Collaboration

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HRS Revenues and Bookings

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

~21%

10%+

Revenue Bookings

FY16 FY17 FY18

95%Booked

92%Booked

85%Booked

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AUTOMOTIVE

Our Path to Continued Automotive Growth

Over $1.8B in lifetime revenue from FY15 bookings

Leverage Flextronics

Scalefor emerging

markets

Design Innovations

in Clean Technologies

StrategicCollaborationand M&A in ADAS

Technologies

LeverageFlextronics Segments in connectivity

Disruptionwith Open Innovation

Lifetime revenue for FY15 awards

in APAC:

$600M

Lifetime revenue for

FY15 awards:

$275M

Threenew software partnerships

Lifetime revenue for FY15 awards in

connected car:

$750M

10new projects with global

OEM’s

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Example of Key Automotive Customer Relationship

D = In Design

ConnectedHead Unit

LightingSolutions

SmartMotion Controls

SmartMirror Actuators

Clean TechWiring

Clean TechSolenoids

ConnectedSlim Display Module D D D D

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“Flextronics’ scale, significant buying power, world wide footprint, vertical integration and innovation platform allow for greater efficiencies and ultimately, better products and margins for our company.”

Stuart Salter - Ford Engineering

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Leveraging Platforms for AutomotiveOverhead console withupgradable hardware

• Front, inside, & rear cameras

• External antennas

• Upgradable hardware PCB

Natural Language Voice Recognition

Context based voice recognition

Noise cancelation software

Ultra-high brightness micro LED

Fibrance

Flexible optical fiber

New lighting solution

Medical DeviceConnection

Biometrics

Iris scanning Fingerprint sensors

Flextronics camera

platform + algorithms

Gesture, face recognition

Wearable Device Integration

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Growth Through Innovation, Disruption and CollaborationInfotainment Connected car

Disruptors

Next Generation Connectivity Head Unit

Rear Seat Entertainment in China

Slim Display Module Vehicle to Infrastructure Vehicle to Cloud Partnerships with Global Software Developers

Multi-functional Control Modules

Smart Bolt –MEMS Sensor

48V Energy Recuperation Module

Smart components

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Need to insert MCI videoMCi

Video

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Extends Flextronics’ market leadership in automotiveCustomer and Global Expansion

Growth Through Strategic Accretive Acquisitions

• #1 - Global market share leader in exterior mirror motion controls– Extends existing $100M motion control

business

• “Smart” mirror embedded with electronics – Complements Flextronics smart

camera activity– Actuators are the single most value-add

of all smart components in the mirror

• Accelerates our position with strategic OEM’s (VW, Audi, Toyota, Fiat and several OEM’s in China)

• #1 market share leader in China • Specified by the OEM’s

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Growth in the core market • Gaining exterior mirror market share due to

unique design features & increased take rate• Expansion into other auto spaces: active grille

shutters & active headlights

Growth in non-auto adjacencies • Smart home actuation (doors, blinds,

heating/cooling vents, etc.)• Industrials (heavy duty, building HVAC,

commercial vehicles, etc.)• Smart security camera object tracking• Robotics & vending machines• Medical (bed automation, delivery devices)

MCi Brings Strong IP for Growth in Automotive & Adjacent Markets

Control

Sensor Actuator

Sensors and Actuators

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MEDICAL

Our Path to Continued Medical Growth

Over $2.0B in lifetime revenue from FY15 incremental bookings

Developed a

$500M pipeline of

Transformational Deals

with current and new customers

Over

40new product launches initiated

in 2015

Added Orthopedics as a new vertical and closed over

$50M of new wins

Design Innovationsin Drug Delivery

yielded

28 new project wins

Completed

6 additional precision

tooling/plastics acquisitions.

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Example of Key Medical Customer Relationship

Design

Industrialization

Manufacturing

Logistics

Diabetes Care Cardiology Lab Equipment Surgical Drug Delivery Orthopedics

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“Flextronics’ qualified design and medical manufacturing expertise will enable us to become more competitive by bringing our highly innovative system to the market faster and at lower cost.”

Eric Beard - Executive Chairman

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Leveraging the FLEX Platform for Medical

Sensors to detect biometric information

SpO2 sensor: pulse oximetry with flexible

and stretchable sensor

Pressure sensor

Skin presence sensor

Biosensor interface platform

Accelerometer, gyrometer

Miniaturized RFID

Flexible PCB and display, biocompatible material,

and LED lighting

Multi-layers Flexible PCB

Rigid & Flexible PCB

Printed rewritable

memory via NFC

Flexible battery and battery management

Wireless Connectivity

Zigbee to WiFi

gateway

Wireless charging for devices

User authentication

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Our Global Quality System is a Key Differentiator

• 20 ISO certified 13485 sites• 16 FDA registered sites

Experience

• Electronic signature 21 CFR Part 11 Compliant

• All data and documents accessed electronically

• Customer protected via secure access

Secure Access

• Global QMS Platform• Global Shop Floor

Control & Traceability • Electronic Device History Record

(eDHR)

Advanced Tools

Global compliance and repeatable execution

Q

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Our Strategy Keeps Us Well Positioned

• Focus efforts on high growth, high margin areas

• Build the technology portfolio via strategic M&A investments and partnerships

• Leverage open innovation platform to create differentiation

• Capitalize on emergence of disruptive customers and business models

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