High Reliability Solutions Overview Paul Humphries May 31, 2012

Transcription

1 High Reliability Solutions Overview Paul Humphries May 31, 2012

2 High Reliability Solutions (HRS) Markets We Serve Medical Solutions Consumer Diagnostics & Drug Delivery Disposable Devices Lab Diagnostics, Imaging and Monitoring #1 in Medical and Automotive Quickly emerging in A & D CAGR 20%+ Leveraging $30B Flextronics Leading design services capabilities Leading quality & management systems Automotive Solutions Vehicle Electronics Connectivity Energy Management Aerospace & Defense Defense Civil Aviation Homeland Security

3 High Reliability Solutions Key Facts Flextronics Business Group FY13E Integrated Network Solutions ~45% Industrial & Emerging Industries ~15% High Reliability Solutions ~10% High Velocity Solutions ~30% Key Facts about HRS Fiscal 2012 Revenue : $2.4B Scale : 15 dedicated sites on 3 continents Capabilities: Flex engineers, 5 dedicated design centers 560 HRS engineers Depth: Support all industry sectors Customer Base: 145 Customers Industry Ranking: No. 1 in Medical and Automotive Disposable Medical Devices Medical Equipment HRS Segments - FY13E ~34% ~24% ~19% ~19% Auto Electronics Car ~4% Connectivity Aero / Defense

4 High Reliability Solutions Highlights FY12 Revenue Outlook ($M) Highlights FY12 24% growth 10 % - 15% Solid operating margins $1,443 $1,902 $2,363 $600m+ in new bookings 16 new customers New talent in Automotive and A&D Stellar acquisition FY10 FY11 FY12 FY13E Key medical equipment start up in Mexico

5 High Reliability Solutions Revenue Growth Potential Segment 2012 Revenue Industry CAGR Flex CAGR Automotive Electronics $105B 11% 37% Medical Devices, Disposables & Equipment $100B+ 5% 21% Aerospace and Defense Electronics $61B 6% 17% Market is substantial and growing Opportunity for Flextronics remains strong

6 Medical Markets We Serve and the Opportunity Medical Device EMS Market Opportunity Global Outsourced Medical Device Grows $30B - $96B Global Outsourced Medical Device Grows Europe - $6.8B - $21B Consumer Health & Drug Delivery Blood glucose meters Blood coagulation test Electro-mechanical drug delivery devices Insulin HGH Pain Aesthetic skin care Hair removal Disposables Catheters Wound management Endoscopic Instruments Skin growth platforms Disposable dental drills Surgical/stitching kits Medical Equipment Mass spectrometry High pressure liquid chromatography Ultrasound CT MRI Hospital Beds X-ray Patient monitoring Strength and breadth of product portfolio unmatched

7 Total Medical Revenue Growth 26% 6.5% 32% -6%

8 Stellar Acquisition Provides New Capabilities in Microelectronics Nuero Modulation Deep Brain Stimulation Sensors & Monitors Cochlear Implant System

9 Our Growth Strategy for Medical Expand existing customer base capitalize on existing relationships and outsourcing trend Increase focus on European customer base Leverage vertical integration offerings Precision plastics Automation Leverage new capabilities from acquisitions

10 Automotive Markets We Serve and the Opportunity Electronics Market EMS Market Opportunity %-11% CAGR $100B Vehicle Electronics Control Modules Powertrain Engine Electric power steering Power controls Lift gates Sliding doors/sunroofs Remote antenna Ambient Lighting Connectivity Ford SYNC Head units - Europe USB/iPod connectivity Bluetooth/WiFi e-call Audio/Sound systems GPS HMI/ Voice control Interface Boxes Energy Management Battery management Electric bikes Recuperation modules Start/stop modules Inverters DC/DC converters Super capacitors Exhaust management Transmission modules Industry leading and broadest product portfolio

11 Total Automotive Revenue Growth 18% 38% 48% 12%

12 Robust EMS Growth Opportunity High Projected Impact on the Automotive Electronics Market Growth Other Electronics CAGR 9.7% CAGR 10.6% Powertrain Electronics CAGR 8.7% Instrumentation Electronics Safety Electronics CAGR 11.2% CAGR 11.9% Infotainment Electronics Low Note: 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 Electronics usage in automotive market growing faster than the industry itself

13 Automotive Market by Region FY12 - FY16 from 78M to 92M Units 5% 3% 17% 49% Asia Europe N.A. S.A. ROW 26% Asia = 50% of Total Market 1 Source: IHS Vehicle Production Forecast, April 2012

14 Our Growth Strategy for Automotive Focus on products and technologies with highest growth potential Expand existing outsourced base utilizing global capabilities Increase focus on high growth geographies China, India and Brazil

15 A&D Markets We Serve and the Growth Opportunity Aerospace and Defense Market EMS Market Opportunity %-7% CAGR $70B Defense Civil Aviation Homeland Security Avionics UAV s UGV s Communications Engine controls Ground vehicles Ruggedized computing Space Systems Data Management Avionics Navigation Flight Mgmt Flight Info Infotainment systems Satellite radios UAV s Perimeter intrusion Baggage handlers Hand-held scanners Access control kiosks Surveillance

16 Our Growth Strategy for Aerospace and Defense Secure one anchor customer in each market Leverage Flextronics global capabilities Leverage acquisitions to broaden customer portfolio Capitalize on vertical integration capabilities

17 Market Outsourcing Drivers Key trends driving MEDICAL growth Medical device tax Market Trends driving AUTOMOTIVE growth Personalization Market Trends driving A&D growth Global air traffic Aging population Energy Management Defense budget cuts Healthcare cost Car Connectivity Need to transform cost structures Emerging markets Connected care Emerging markets Driver safety / assistance New market expansion Offset requirements

18 Market Outsourcing Drivers Flextronics Solution HIGH RELIABILITY SEGMENT World class quality & regulatory systems Global supply chain expertise Extensive design offerings Significant vertical integration capabilities Broad global reach

19 Strategy to Drive Growth 1 Win with the winners 2 Exploit Flextronics overall capabilities and vertical offerings 3 Drive high reliability performance with standardized global management systems 4 Use targeted acquisitions to build competence and credibility

20 Thank You