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8/2/2019 Asia Plant Comparison April 2012
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Confidential Jabil Proprietary Information
Asia Plant Comparison
April 2012
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Confidential Jabil Proprietary Information
China Cost Increase As you know, Chinas labor rates are increasing and new levies have been added for foreign
businesses
For labor wages, in early CY2012 our China plants see DL wages increasing at 15% andIL salary increasing at 8%
Inflation in China RMB may appreciate at a slower pace With CPI inflation falling and commodity
prices easing, the incentive for appreciation has weakened
We think fundamentals still support appreciation when the market stabilizes, howeverthe pace of CNYUSD appreciation could slow to 2-3% in 2012
Contributions will now have to be made by employers and employees to Social Security
Funds If you need additional information, please contact the Pricing Intelligence Team
Due to these changes, we wanted to provide you with China labor rate trend, Asia ratecomparison, tax considerations and Asia sites capability overview
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China DL Rates Recent History
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
GMS China Average DL Rate/Hr
GMS China Average DL rater fully loaded
SE Asia Average DL Rate/Hr
SE Asia Average DL rater fully loaded
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Confidential Jabil Proprietary Information
DL Rate Trend Comparison with China Average
0%
50%
100%
150%
200%
250%
300%
350%
400%
Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13
VietnamPenang
Pune
Singapore
Huangpu
Shanghai
Wuxi
GMS China Average
SE Asia Average
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Confidential Jabil Proprietary Information
Capabilities OverviewHuangpu Wuxi Shanghai Penang India Vietnam Singapore
Strengths
ofs
ite
High mfgCompetencysite
High Mix/ Lowvolume
High Volume &Velocitycapability
Infrastructureto supportUSD2B
SMT, BoxBuild
Perfectlocation forcost-sensitive
complex andverticallyintegratedproducts
SMT, BoxBuild
Electronics,Plastics &MetalsAssembly
OpticalAssembly
Center ofExcellenceforHealthcare
Highcomplexityproducts
Design
SMT, Box
Build
Aftermarket
SystemIntegration
HightechnicalCompetencysite for AsiaRegion
Ultra Highmix/ Lowvolume
SystemIntegrations
SMT, BoxBuild
OpticalAssembly
ConformalCoating
High Mix/ LowVolume
Low Mix/ HighVolume
Aftermarket
MechanicalDesign andPlastics
RF Experience
EnclosureIntegration
SMT, Box Build
Solar ModuleMfg
HighMix/High
Volume
Sub-Assembly
Plastics
SMT
Sole EMSexistencein southpart ofVietnam.
Asias
BTO/CTOCenter
Optical and
Calibration
PowerSuppliesAssembly
PrecisionMechanical
PlasticAssembly
ConformalCoating
SMT
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Confidential Jabil Proprietary Information
Tax & Treasury Considerations
Huangpu Wuxi Shanghai Penang India Vietnam Singapore
Expected TaxRate 25% 25% 25% 0% 33%
0% for next 3yrs.5% for next
9years10% for rest of
life
0%
Tax changesexpected NA NA NA NA NA NA NA
Ease of cashrepatriation Challenging Challenging Challenging Easy Medium Medium Easy
FX risks Highlyregulated.Liquid markets
Highlyregulated.
Liquid markets
Highlyregulated
Liquid markets
Mediumregulation.
Liquid markets
Highlyregulated.
Liquid markets
Highly regulated.Not Liquid markets
Low regulationLiquid markets
For information on DUTIES for these sites, please contactFrancis Loh Regional Logistics Director
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Thinking about moving your business?
Contact Logistics
Works with you to determine best location for products and total landedcost analysis
Contact Tax & Treasury Department
Provides you with local tax information (e.g. tax holidays, surcharges,duties, etc.), potential FX issues and risk assessment
Contact DBM and Plant Controller at potential site
For site options and financial impact
Site DBM ControllerPenang VY Lai Chin Kuang Kim
Singapore VY Lai Franklin Song
Shanghai & Wuxi Leon Xu Peter Shen
Huangpu LH Quah Dave Leung
India VY Lai Samit Moye
Vietnam VY Lai Huu Binh
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For more information, please contact
the Pricing Intelligence Team (PIT) oraccess the website at
Pricing Intelligence Team Website
Note: Slide must be indisplay mode for hyperlinkto website to work
http://jepprd.corp.jabil.org/myteam/misc/PIT/Pages/PricingIntelligenceTeam.aspxhttp://jepprd.corp.jabil.org/myteam/misc/PIT/Pages/PricingIntelligenceTeam.aspx