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Connecting Amphenol Connecting People and Technology April 2010

Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

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Page 1: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

Connecting Amphenol

Connecting

People and Technology

April 2010

Page 2: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

A Global Leader in Interconnect Technology

• 77 year history, listed on NYSE: APH

• Second largest interconnect company in the world

• Industry leading growth and operating profit margins in all business cycles

• 10 year track record of greater than 20% EPS growth

Amphenol2

• Technology, diversity, low cost and global focus

• Highly decentralized organizational model is key differentiator

• 70 business units with strong entrepreneurial General Managers drive the company

• Complementary acquisition strategy

Page 3: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

Competitive Strength Through Market Diversification

% Sales by Market

Military/Aerospace

Broadband

Automotive

Industrial

Amphenol3

2009 Sales$2,820 Million

Broadband

MobileNetworks

IT & Data Com

MobileDevices

Page 4: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

Business Diversity

Value added assemblies

Precision high speed stamping

In line metal plating

Amphenol

Connectors and components10,000,000’s of parts<$0.01 selling price

Value added assemblies100’s of assemblies>$40,000 selling price Plastic

injection and insert molding

High speed automated assembly

Page 5: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

Global Presence

CANADA (5)

NL

UK (4)

JAPAN (3)

GERMANY (3)

FRANCE (5)

KOREA (4)

HQUSA (29)

MEXICO (5)

SPAIN

TAIWAN (4)

CHINA (24)

SWEDEN (2)AUSTRIA

ESTONIA (2)

CZECHREPUBLIC (3)

TUNISIA (2)

TURKEY

RUSSIA

IRELAND

% Sales By Region

SLOVAKIA

DUBAI

19%

Amphenol

ROW

32,000 Employees

Operations

Sales Locations

AUSTRALIA

INDIA (3)ISRAEL

HONG KONG

ARGENTINA (2)

BRAZIL (3)

MEXICO (5)

ITALY

SINGAPORE

CHINA (24)

MALAYSIA (3)

SOUTHAFRICA (3)

2009 Sales$2,820 Million

VIETNAM

5

19%

Europe

37%

Asia

39%

N. America

5%

Page 6: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

Ongoing Development of

Global Capabilities

Changzhou, ChinaEl Fahs, Tunisia

Dubai

AmphenolZhuhai, China

Chennai, India Penang, Malaysia

Changzhou, China

Johannesburg,South Africa

6

Page 7: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

Amphenol in China

● Starting in 1985 from a small business based in Hong Kong, now 24 businesses driven by Chinese General Managers

— Focused on local market and export opportunities

— Sales, engineering, manufacturing, marketing

— Businesses are run like local Chinese companies

Amphenol

— Businesses are run like local Chinese companies

● Well over 15,000 employees, including over 500 engineers in R&D functions

— Sales have increased more than 20X since 2000

● Many successful acquisition experiences

— Entrepreneur owners stay with Amphenol

Page 8: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

China Market Evolution

Rapid Process Innovation

Global Chinese CompaniesMost efficient processesLatest technologyShort product development cyclesEconomies of scaleUnmatched ecosystem

Amphenol

Low CostManual processes‘Good enough’ productsExport focus

Volume LeverageEcosystem developmentLocal market applicationsRapid experimentation

Rapid Process InnovationProduct derivativesEntrepreneurshipDepth & Breadth

Page 9: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

Doing Business in China

● The old real estate saying is especially true in China: “All business is local”

● Given’s: culture differences, cost differences, government relations, …

● Don’t’s— Recreate western operations in China— Use ex-Pat’s to manage— Joint venture— Acquire questionable companies (dating is key)

Amphenol

● Do’s— Bring your latest technology and support innovation— Be prepared to support your Chinese customers locally and globally— Spend the money on top technical and management talent — Manage your businesses locally— Leverage your Chinese businesses with your global opportunities — Build relationships with universities to find engineering talent— Be prepared for aggressive, mobile employees— Create cross-geo projects — Look beyond the coastal areas

Page 10: Amphenol - Worcester Polytechnic Institute · A Global Leader in Interconnect Technology • 77 year history, listed on NYSE: APH • Second largest interconnect company in the world

AmphenolConnecting

People and Technology

Amphenol