High Reliability Solutions OverviewPaul Humphries

May 31, 2012

High Reliability Solutions (HRS) Markets We Serve

Medical SolutionsConsumer Diagnostics & Drug Delivery

Disposable DevicesLab Diagnostics, Imaging and Monitoring

Automotive SolutionsVehicle Electronics

ConnectivityEnergy Management

Aerospace & DefenseDefense

Civil AviationHomeland Security

#1 in Medical and AutomotiveQuickly emerging in A & D

CAGR 20%+Leveraging $30B Flextronics

Leading design services capabilitiesLeading quality & management systems

#1 in Medical and AutomotiveQuickly emerging in A & D

CAGR 20%+Leveraging $30B Flextronics

Leading design services capabilitiesLeading quality & management systems

High Reliability Solutions Key Facts

Key Facts about HRSKey Facts about HRS

Industrial & Emerging Industries

~15%

Industrial & Emerging Industries

~15%

High Velocity

Solutions~30%

High Velocity

Solutions~30%

High Reliability Solutions

~10%

High Reliability Solutions

~10%

Flextronics Business Group

FY13E

Fiscal 2012 Revenue : $2.4BScale : 15 dedicated sites on 3 continentsCapabilities: 2000+ Flex engineers,5 dedicated design centers – 560 HRS engineersDepth: Support all industry sectorsCustomer Base: 145 CustomersIndustry Ranking: No. 1 in Medical andAutomotive

Fiscal 2012 Revenue : $2.4BScale : 15 dedicated sites on 3 continentsCapabilities: 2000+ Flex engineers,5 dedicated design centers – 560 HRS engineersDepth: Support all industry sectorsCustomer Base: 145 CustomersIndustry Ranking: No. 1 in Medical andAutomotive

HRS Segments - FY13EHRS Segments - FY13E

Integrated Network Solutions~45%

Integrated Network Solutions~45%

~19%

~34% ~24%

~19%

~4%

AutoElectronics

Aero / Defense

DisposableMedical Devices

Car Connectivity

Medical Equipment

High Reliability Solutions Highlights FY12

$1,443

$1,902

$2,363

FY10 FY11 FY12 FY13E

10 % - 15%

24% growth

Solid operating margins

$600m+ in new bookings

16 new customers

New talent in Automotive and A&D

Stellar acquisition

Key medical equipment start up in Mexico

24% growth

Solid operating margins

$600m+ in new bookings

16 new customers

New talent in Automotive and A&D

Stellar acquisition

Key medical equipment start up in Mexico

Revenue Outlook ($M)Revenue Outlook ($M) Highlights FY12Highlights FY12

High Reliability Solutions Revenue Growth Potential

Segment 2012 Revenue

Industry CAGR

FlexCAGR

Automotive Electronics $105B 11% 37%

Medical Devices, Disposables & Equipment $100B+ 5% 21%

Aerospace and Defense Electronics $61B 6% 17%

Market is substantial and growingOpportunity for Flextronics remains strong

Market is substantial and growingOpportunity for Flextronics remains strong

Medical Markets We Serve and the Opportunity

Medical Device EMS Market Opportunity 2010 – 2021 Global Outsourced Medical Device Grows $30B - $96B

Global Outsourced Medical Device Grows Europe - $6.8B - $21B

Medical Device EMS Market Opportunity 2010 – 2021 Global Outsourced Medical Device Grows $30B - $96B

Global Outsourced Medical Device Grows Europe - $6.8B - $21B

Consumer Health & Drug Delivery Disposables Medical Equipment

Blood glucose metersBlood coagulation testElectro-mechanical drug delivery devices

•Insulin•HGH•Pain

Aesthetic skin careHair removal

CathetersWound managementEndoscopic InstrumentsSkin growth platformsDisposable dental drillsSurgical/stitching kits

Mass spectrometryHigh pressure liquid chromatographyUltrasoundCTMRIHospital BedsX-rayPatient monitoring

Strength and breadth of product portfolio unmatched

Total Medical Revenue Growth

-6%

32%

26%6.5%

Stellar Acquisition Provides New Capabilities in Microelectronics

Sensors & Monitors

Deep Brain StimulationNuero Modulation

Cochlear Implant System

Our Growth Strategy for Medical

Leverage new capabilities from acquisitionsLeverage new capabilities from acquisitions

Leverage vertical integration offerings• Precision plastics• Automation

Leverage vertical integration offerings• Precision plastics• Automation

Increase focus on European customer baseIncrease focus on European customer base

Expand existing customer base – capitalize on existing relationships and outsourcing trendExpand existing customer base – capitalize on existing relationships and outsourcing trend

Automotive Markets We Serve and the OpportunityElectronics Market EMS Market Opportunity 2010 – 2017

10%-11% CAGR$100B

Electronics Market EMS Market Opportunity 2010 – 201710%-11% CAGR

$100BVehicle Electronics

Control Modules•Powertrain•EngineElectric power steeringPower controls•Lift gates•Sliding doors/SunroofsRemote antennaAmbient Lighting

ConnectivityFord SYNCHead units - EuropeUSB/iPod connectivityBluetooth/WiFie-callAudio/Sound systemsGPSHMI/ Voice controlInterface Boxes

Energy ManagementBattery managementElectric bikesRecuperation modulesStart/stop modulesInvertersDC/DC convertersSuper capacitorsExhaust managementTransmission modules

Industry leading and broadest product portfolioIndustry leading and broadest product portfolio

Total Automotive Revenue Growth

‐12%

48%

38%

18%

Robust EMS Growth Opportunity

Electronics usage in automotive market growing faster than the industry itselfElectronics usage in automotive market growing faster than the industry itself

High

Low

Projected Impact on

the Automotive Electronics

Market Growth

CAGR 8.7%Instrumentation

Electronics

Other Electronics

CAGR 9.7% CAGR 10.6%Powertrain Electronics

Safety Electronics CAGR 11.2%

CAGR 11.9%Infotainment Electronics

2010 2017Note: The CAGRs listed above represent growth of the automotive electronics market in the specified time period. Other electronics include navigation systems, body/chassis electronics and instrumentation/display electronics. Source: Frost & Sullivan analysis

Automotive Market by Region

Asia = 50% of Total MarketAsia = 50% of Total Market

49%

26%

17%

5%3%

AsiaEuropeN.A.S.A.ROW

FY12 - FY16 from 78M to 92M Units

1Source: IHS Vehicle Production Forecast, April‐2012

Our Growth Strategy for Automotive

Increase focus on high growth geographies – China, India and BrazilIncrease focus on high growth geographies – China, India and Brazil

Expand existing outsourced base utilizing global capabilitiesExpand existing outsourced base utilizing global capabilities

Focus on products and technologies with highest growth potentialFocus on products and technologies with highest growth potential

A&D Markets We Serve and the Growth Opportunity

Aerospace and Defense Market EMS Market Opportunity 2010 – 20176%-7% CAGR

$70B

Aerospace and Defense Market EMS Market Opportunity 2010 – 20176%-7% CAGR

$70B

Defense Civil Aviation Homeland SecurityAvionicsUAV’sUGV’sCommunicationsEngine controlsGround vehiclesRuggedized computingSpace SystemsData Management

Avionics•Navigation•Flight Mgmt•Flight Info

Infotainment systemsSatellite radiosUAV’s

Perimeter intrusionBaggage handlersHand-held scannersAccess control kiosksSurveillance

Capitalize on vertical integration capabilitiesCapitalize on vertical integration capabilities

Leverage acquisitions to broaden customer portfolioLeverage acquisitions to broaden customer portfolio

Leverage Flextronics global capabilitiesLeverage Flextronics global capabilities

Secure “one” anchor customer in each marketSecure “one” anchor customer in each market

Our Growth Strategy for Aerospace and Defense

Market Outsourcing Drivers

Key trends driving MEDICAL growth

Medical device tax

Aging population

Healthcare cost

Emerging markets

Connected care

Market Trends driving AUTOMOTIVE  growth 

Personalization

Energy Management

Car Connectivity

Emerging markets

Driver safety /assistance

Market Trends driving A&D growth

Global air traffic

Defense budget cuts

Need to transform cost structures

New market expansion

Offset requirements

Flextronics’ SolutionHIGH RELIABILITY SEGMENT

World class quality & regulatory systems

Global supply chain expertise

Extensive design offerings

Significant vertical integration capabilities

Broad global reach

Market Outsourcing Drivers

1

2

3

4

Strategy to Drive Growth

Drive “high reliability” performance with standardized global management systems

Use targeted acquisitions to build competence and credibility

Exploit Flextronics overall capabilities and vertical offerings

“Win with the winners”

Thank You