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Innoventure Presentation May 9th 2013

Flextronics at a Glance
SCALE BREADTH DEPTH EXPERTISE STABILITY
More than $25 billion in combined annual revenue and over 200,000 employees, including 2,600 engineers, operating in 30 countries spanning four continents. Integrated solutions and services that span the full product lifecycle, from design to manufacturing to distribution and a broad range of after market services. Best-in-class service end-to-end offerings ranging from high volume/low mix to complex low volume/high mix. Dedicated segment and customer-focused commercial and operational teams across four strategic groups. Strong balance sheet with a diversified customer and segment portfolio. Leader in Lean Six Sigma operations and vertically integrated supply chain solutions.

Limitless Scale, Repeatable Execution


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Flextronics End-to-End Services


Design Manufacture Distribute Service

Industrial Design System Architecture Mechanical Design Embedded System Design Software Systems Product Launch/NPI DFx Services

PCB Fabrication Components Plastics Mechanical Solutions Precision Machining Cable Assembly High Level Assembly System Integration and Final Test Test System Development

Build-to-Order Configure-to-Order Distribution Direct Fulfillment Outbound Logistics and Hubbing

Repair/ Refurbishment Warranty Support Service Parts Logistics Remarketing Asset Recovery Reverse Logistics

Developing Trends favoring US manufacturing


Imbedded cost structures are changing
Wage rates in China and other low cost areas climbing steadily Transportation and logistics costs increasing due to higher fuel costs Shifting demand drives greater risk of product obsolescence Long term: Reduction in US energy costs driven by increased Natural Gas production

Flextronics initiatives: Increase competitive position in US


Selective acquisitions Automate all production and support processes
Set up product realization centers Expand operations as needed Upgrade Carolinas footprint

Implement lean concepts throughout


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Columbia SC: Build to order end unit assembly

450,000 square feet with a flexible footprint to easily adapt and scale your changing business needs
60 acre campus 3 mfg buildings 135K sq ft per building 22 dock doors/building Land for a 4th building

Co-located warehouse and shipping creates factory within a factory

Charlotte NC: Printed Circuit Boards

400,000 square feet devoted to complex printed circuit boards assembly and test
3 mfg buildings 7 Surface mount lines In house tooling shop Full suite of test resources New product introduction Certifications: AS 9100 REV C, ISO 9001:2000, ISO 14001, TL 9000, ANSI ESD S20-20, IPC ROHS Certified, TUV, UL and CSA, ITAR

Raleigh NC: Increased design capabilities


Design of complex systems for robotics, kiosk, self service markets
Systems engineering Motion control systems development PCB schematic development Firmware development Design for LEAN manufacturing BOM development Electro-mechanical systems design Cost reduction road map definition Production transition from prototype to production

Complex electro-mechanical systems design utilizing dc drive systems, steppers drives and servo drives.

Lean implementation across all production lines


Kaizen Culture drives Quality, Flexibility, Efficiency

Continuous Kaizen

Visible Performance Metrics

5S and Visual Control

Takt Production

The Best Lean Practices for contract manufacturing


Pull Flow Visual Mgt Perfection
Visual Replenishment, Kanban, Supplier Pull Single Piece Flow, Line Balancing, Takt production Clear sight lines, Visible Performance Metrics, 5S Jidoka, Zero Defect Teams, FMEA, Poka-Yoke
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End-to-End Supply Chain Management


Supplier Managed Inventory
Over 70% of our spend is on SMI Promotes supply chain flexibility and reduces liability

Hubbing and Distribution


High volume distribution operations or pickpack-and-ship. Hubbing of supplier inventory Hubbing of customer finished goods

Repair and Service Parts Logistics


Screen, test, repair and refurbishment of customer inventory Central DC for spare parts distribution Replenishment of customer FSLs

Worldwide Direct Fulfillment


80% of what we ship goes directly to the end customer our customers customer Demonstrates the trust and confidence weve earned through consistent, flawless execution

Thank you

Columbia, South Carolina


For further information: Please visit our website
sbs.flextronics.com

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