1Design. Build. Ship. Service.

IAESI 2011 annual convention

Uri Bechor

January 4th 2011

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~ 20,000 Employees in Logistics/Services

~ 216,00 Employees

~ 27M Manufacturing Square Feet

30 Countries

11 Major Manufacturing/Product Technologies

About Flextronics

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We have three major groups of business

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1

Broad Penetration of ODM and EMS Market Segments

5

2

3

4

INFRASTRUCTURE

INDUSTRIAL

MEDICAL

COMPUTING (ODM)

MOBILE & CONSUMER

Electrical and

Mechanical Technologies

No 1

No 1

No 2

No 7

No 2

27%

14%

6%

18%

35%

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Reverse Logistics & Repair

Service Parts Logistics

Distribution & SMI

Product Transformation

1 2

3 4

Broad Variety of Service Solutions

Consumer & EnterpriseField Services

In Store Technical Services & Sales5 6

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FLEXTRONICS Headcount & Revenue by Region

216,000 EmployeesWorldwide

Asia 141,000pEurope 27,000p

America 48,000p

FY10 RevenueAsia 48%

America 33%Europe 19%

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Revenue Growth FY94 – FY11E

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Revenue 131 237 448 1,498 2,578 3,953 6,959 12,110 13,105 13,379 14,530 15,731 15,288 18,854 27,558 30,949 24,111 27,746

FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 *FY11

US$ (Mil)

*FY11 Source: First Call consensus estimates

Revenue growth has returned and at a strong pace

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Cash, Debt and Debt Maturities Profile

* Debt and Net Debt for the June 2010 quarter include $150 million related to the Company’s accounts receivable sales program

309

2,551

$2,242

MAR-10

444

2,232

$1,788

SEP-09

663*

2,394*

$1,731

SEP-10DEC-09 JUN-10

Cash

Total Debt

Net Debt

Debt/EBITDA(LTM)

$1,966 $1,928

2,553 2,257

587 329

($ i

n M

illio

ns)

3.0x 1.9x2.2x3.0x 2.3x

309

2,551

$2,242

MAR-10

444

2,232

$1,788

SEP-09

663*

2,394*

$1,731

SEP-10DEC-09 JUN-10

Cash

Total Debt

Net Debt

Debt/EBITDA(LTM)

$1,966 $1,928

2,553 2,257

587 329

($ i

n M

illio

ns)

3.0x 1.9x2.2x3.0x 2.3x

Significant Debt Maturities by Calendar Year – as of 10/1/10

Revolver

Cash

($ i

n M

illio

ns

)

$1,485

$3,728

Significant Debt Maturities by Calendar Year – as of 10/1/10

Revolver

Cash

($ i

n M

illio

ns

)

$1,485

$3,728

$180

Term LoanLiquidity New Term Loans

(Revolver)

$180

Term LoanLiquidity New Term Loans

(Revolver)

6.25% Senior Subordinated Notes

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Worldwide EMS Industry Rev. Forecast, ($B), 2005-2014

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Flextronics IL

Flextronics Israel is located has 4 plants in priority Areas

Migdal Haemek – 50,000 SQM

2,100 Employees – PCBA

Sderot & Yavne – 15,000 SQM.

180 Employees – Mechanical Operation

Ofakim – 15,000 SQM.

630 Employees – PCBA

Arad – 10,000 SQM.

380 Employees – PCBA

Revenue - 650M$/Year

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Customers

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Capabilities

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Business Strategy – where we are Today / The Rock Activity

RFUs WiMAX™ InfiniBand Crier Ethernet

IP Video

Gateway PBX

Traffic Management

All indoor

VoIP Media Gateway

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Business Strategy – where we want to beCleantech

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Business Strategy – where we want to beMilitary

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HLA - Strategy

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HLA Business Model

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52 M$ Invested over the last 2 years

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Israel EMS SWOT Analysis – Jan 2011

STRENGTHSStrong Customer Base & Recognition

Tear one EMS footprint in IL

Lean Operation

Scale and breadth

Professional Mgt team

World class NPI/Technological center

WEAKNESSESUSD to NIS Rate

Minim wages is going up (6.2$ Vs 7.2$ in the US)

Asia – Low cost sulotion

Lack of ODM activity

Local OEM depended

M&A by Global companies

OPPORTUNITIES

Alternative stable Asia footprint solution

Continuous Lean journey

Vertical Integration & Services

Exploring new segments -

Robotics/Automotive/Industrial/Cleantech

THREATSChina as R&D center

Fx coverage

Decreasing # of H/W startup

Government support for labor intens industry

20Design. Build. Ship. Service.

Wins & Challenges►True development partner►Meet every milestone►Cross organization commitment►Efficient and fast procurement process►Quick turn on DEV requests – two weeks from concept to hand carried boards to hit Dev►Provide quality products to highly complex engineering project – over 50 configs per build►On the fly mechanical technical solutions►Highly professional test engineers – save travel costs for the customer

Wins & Challenges – China transition►Build an A-team to support both sites independent builds and overall transition►Israel involvement till start of MP►MTE knowledge transition including station construction►Record all the knowledge & knowhow from Israel and smooth implementation in DMN►Comprehensive support plan to ensure the DMN team is well trained and experienced►Material handshake over validation build►Combined DFA task force

Microsoft Kinect – Success story

2009 2010

MarchEV1 M - 60

AprilEV1 A - 50

MayEV1 DK - 1250

AugustPS 5.0B

OctoberEV 2 Sys Int )Redmond(

SeptemberEV 2 - 300

DecemberEV 3A - 96

NovemberEV2 DK - 3400

JanuaryEV3 M & MB

2500

Transition to China with support till MP

DecemberPSDK2.5 -1000

2008