2015 INVESTOR & ANALYST DAY
Transcript of 2015 INVESTOR & ANALYST DAY
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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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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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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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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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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Growth Through Innovation, Disruption and Collaboration
Metal Injection Molding Wearable drug delivery Wireless biometric monitoring
Advanced pulmonary drug delivery
Wearable Adhesive Monitoring Systems Drug Delivery Communication
Implantable Device Systems Digital drug delivery & monitoring Low cost infusion delivery
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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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