Global Business Review
2001
1
Electronics SBG - January 26, 2001
Agenda
 Organization
President
 Global Overview
President
 Applications & Market Drivers
Ind. Mktg. Dir.
 Segment Overview
Mktg. VP
 Strategies & Challenges
President
 Fiber Optics Review
Business VP
 Operations Direction
Operations VP
 Financial Plan
Controler
2
Electronics SBG - January 26, 2001
Global Overview
3
Electronics SBG - January 26, 2001
Company - Global Sales
Cons
11%
1999 Sales
Comm
50%
1,190 M €
Cons
10%
Indust
12%
Data
27%
Indust
10%
2000 YEF
1,536 M €
Comm
57%
Data
23%
Cons
11%
2001 Budget
1,709 M €
Data
21%
4
Indust
9%
Comm
59%
Electronics SBG - January 26, 2001
Company vs Market
GLOBAL - 2000
SAM = $23.9B
Asia
36%
GLOBAL - 2001
SAM = $26.1B
Asia
37%
Americas
41%
Americas
40%
MARKET
Europe
23%
CAGR = 9.2%
Europe
23%
Source: Bishop
Global- 2000
Total Sales = 1536M
Asia
27%
Global - 2001
Total Sales = 1709M
Asia
28%
Americas
42%
Europe
31%
6.4% share
Americas
41%
Europe
31%
Company
CAGR = 11.3%
6
6.5% share
Electronics SBG - January 26, 2001
Company - Sales by Channel
DIST
13%
1999 Sales
CEM
19%
1190 M €
OEM
68%
DIST
13%
2000 YEF
CEM
26%
1536 M €
OEM
61%
DIST
14%
2001 Budget
1709 M €
CEM
33%
7
OEM
53%
Electronics SBG - January 26, 2001
Global Top 15 Key Customers
(includes CEM derived demand)
2000
300
2001
Top 15 = 64%
Std Margin%
34%
200
29%
38%
150
34%
100
31%
32%
39%
50
45%
45%
29%
34%
15% 10%
26%
25%
8
H
S
C
N
I
S
D
P
ot
or
ol
a
M
Q
C
N
S
C
N
A
E
0
L
Sales KK Euros
250
All values in M EUROS
Electronics SBG - January 26, 2001
Global Top 15 Key Customers
2000
160
2001
Top 15 = 52%
140
Sales KK Euros
120
100
80
60
40
CEM
20
DIST
0
Sl
L
A
Sn
Ar
C
Nk
Nt
E
9
V
Sc
J
P in MM EUROS
AllT values
Electronics SBG - January 26, 2001
Product Groupings
Product Groupings - 2001
FO
2%
CPCB
Cable Assy
BP Assy
BusBar
D-Sub
USB/1394
Combo
Serpent
PCMCIA
Mod Jack
VHDCI
Metagig
SIMM/DIMM
Smart Card
Other
2%
Mobile
4%
VA
18%
BP
44%
Metral
Millipacs
DIN
Fastech
PwrBlade
Micropax
Norcon
HPC
SCA-2
IO
13%
BTB
17%
Basics
Sockets
Minitek
CEE
Mini BTB
MegArray
FFC/FPC
10
Electronics SBG - January 26, 2001
Electronic Cabinet Packaging - Chassis
LEVEL 3
LEVEL 4
LEVEL 5
LEVEL 1 & 2
INTERCONNECT LEVELS
11
Electronics SBG - January 26, 2001
Global Sales by Product Groupings
Series1
2000
Series2
2001
800
40%
Std Margin%
700
Sales KK Euros
600
500
400
27%
25%
300
25%
200
24%
16%
14%
FO
O
100
0
BP
BtB
VA
MP
IO
All values in M EUROS
12
Electronics SBG - January 26, 2001
Global Sales - Top Products
2000
450
2001
400
Top 15 = 76%
Std Margin%
39%
Sales KK Euros
350
300
250
200
13%
37%
18%
150
33%
23%
44%
24%
32%
7%
19%
39%
100
26%
26%
50
0
M
CA
BC
PC
SSAC
FP
MP
CAS
F
D
MP
N
HC
MJ
All values in M EUROS
13
Electronics SBG - January 26, 2001
Segment Summary - Global Market
10B
Market
Size
Instrumentation
Process Control
Embedded Comp
Medical
Office Equip
DATA
I&I
COMM
Mobile Phone
Mobile Equip
Set Top Boxes
Modems
DSC
Mobile Comp
PC
Servers
Storage
Peripherals
Telecom
Datacom
Wireless Infrastructure
CONS
1B
5%
10%
Growth
Rate
Source: Bishop, except Mobile Phone in Consumer, not Communications
14
Electronics SBG - January 26, 2001
Applications & Market Drivers
15
Electronics SBG - January 26, 2001
Market Drivers
e-Infrastructure for e-Commerce
Network
Traffic
Global Internet Users
millions
Data
Voice
Time
1998
2000
500
450
400
350
300
250
200
150
100
50
0
1996
1997
1998
1999
2000
2003
2001
2002
2003
IDC
1998 - 2003
1998 - 2003
Internet users 4X
Data traffic 20X
PERFORMANCE REQUIREMENTS DOUBLE EVERY YEAR!
16
Electronics SBG - January 26, 2001
End User Applications
17
Electronics SBG - January 26, 2001
Bandwidth to the Users
18
Electronics SBG - January 26, 2001
Communications Network
19
Electronics SBG - January 26, 2001
Market Trends
CONSUMER
Set Top Box/Games
Cell Phones
DSC/Video/MP3
Modems
Residential Gateway
PCs
Servers
Network appliance
DATA
INTERNET
RAID
Laptops
WIRELESS
CONNECTIONLESS
USER INTERFACES
PDA
LIMITLESS BANDWIDTH
DEREGULATION
Mobile Commerce
Datacom
Optical Networking
Broadband Access
COMMUNICATIONS
20
FIBER
Electronics SBG - January 26, 2001
Network Revolution = Optical
BANDWIDTH
21
Electronics SBG - January 26, 2001
Product Trend
BANDWIDTH DEMAND
INSTALLATION
POPULATION
DEREGULATION
IP Networks
(packet switched)
Fiber
Optics
HS Mezz
Internet
Metral 3000
InfiniBand
Fastech
DIN
1975
VOICE
Metral 2000
MicroCN
Metral 1000
HSSDC2
Millipacs
Metral
Cat 5e
Cat 5
Cat 3
PSTN Networks
Norcon
(circuit switched)
1985
1995
E-MAIL
FILE TRANSFER
TIME
2000
GRAPHICS
22
2003
MUSIC
VIDEO
Electronics SBG - January 26, 2001
System Design Challenges
 Bandwidth Density
 Cost
 Time to Market/Volume
 Modularity/Scalability
 EMI
 Power/Cooling
 Inter/Intra Cabinet Connection
 Design re-use / Standardization
23
Electronics SBG - January 26, 2001
Communications
31
Electronics SBG - January 26, 2001
Product Portfolio
Communications - FCI Market Position
1999 SAM = $4.70B
TOP SUPPLIERS (1999 - Bishop)
1) Tyco
887.5
18.9%
2) FCI
598.7
12.7%
3) Molex
438.6
9.3%
4) FoxConn
226.6
4.8%
5) 3M+RN
187.3
4.0%
6) Amphenol
157.3
3.3%
7) Elco
150.0
3.2%
8) ITT Cannon 146.8
3.1%
9) JAE
140.1
3.0%
10) Radiall
122.6
2.6%
11) Hirose
99.6
2.1%
12) Gilbert
95.0
2.0%
13) ERNI
76.3
1.6%
14) Teradyne
73.1
1.6%
15) T&B
72.0
1.5%
Tyco
FCI
Molex
FoxConn
ITT
Amph
Teradyne
3M
Elco
Radiall
Technology
32
Electronics SBG - January 26, 2001
Communications - FCI Electronics vs Market
Communications - 2000
SAM = $6.0B
Asia
32%
Communications - 2001
SAM = $6.6B
Asia
37%
Americas
44%
Americas
39%
MARKET
Europe
24%
CAGR = 10.8%
Europe
24%
Source: Bishop
Comm- 2000
Total Sales = 864M
Comm - 2001
Total Sales = 968M
Asia
12%
Asia
14%
Americas
47%
Americas
48%
Europe
41%
Europe
38%
Company
14.4% share
CAGR = 12.0%
33
14.7% share
Electronics SBG - January 26, 2001
Communications - Key Market Trends
 Bandwidth expansion in network infrastructure to support
Internet growth and data communications.
 IP standard implementation to support voice over data.
 Telecom and Datacom convergence.
 High growth areas in new equipment to support bandwidth expansion.
 SONET/SDH, DWDM, xDSL, Base Stations
 Fiber optics moves closer to the home/desk
 High performance connector and I/O cable assembly needs.
 Outsourcing trend to CEM to accelerate.
 Maximum growth rate in 2000
 Slowing through rest of forecast due to build-out saturation
34
Electronics SBG - January 26, 2001
Communications - Sub-Segments
Market
Size
Ericsson
Nokia
Motorola
Nortel
Lucent
1B
SONET
SDH
Base
Station
Nortel
Lucent
Fujitsu
Alcatel
NEC
Cisco
SWITCHING
TRANSPORT
RAC
IPR
DCS Tellabs
ACCESS
Lucent
Cisco
3Com
Nortel
Cisco
Nortel
Lucent
Juniper
Alcatel
Lucent
10%
Lucent
Nortel
Alcatel
Marconi
Cisco
ATM
DLC
Alcatel
Lucent
Nortel
Marconi
AFC
20%
35
DSL
Alcatel
Cisco
Nokia
Cu Mtn
Nortel
Lucent
Nortel
Lucent
Ciena
DWDM Cisco
NEC
30%
Growth
Rate
Electronics SBG - January 26, 2001
SDH Market Share - EU
Global SONET/SDH
Europe SDH Market Share - 2000
Metral
HM
Tyco
Metral
FCI
Asia
Pacific
20%
Siemens
9%
FCI
ECI
4%
Others
4%
Nortel
17%
Europe
22%
Americas
58%
Marconi
29%
Metral
ITT / FCI
Metral
Lucent
13%
FCI
Metral
Alcatel
24%
FCI
Alcatel
Marconi
Nortel
A1660, A1670
SMA, MSH
TN4X, TN6X
Marconi includes GPT, Bosch & Nokia
RHK
36
Electronics SBG - January 26, 2001
Base Station Market Share - Global
Base Station Market Share - 1999
Global BTS Shipped
FCI
Metral
FCI
Metral
HM
Tyco
Metral & HM
Metral
Alcatel
3%
Samsung
1%
Others
1%
NEC
Panasonic
HM
FCI
Lucent
7%
Metral
Siemens
10%
Ericsson
33%
Nortel
10%
FCI & Tyco
Motorola
13%
HM
Nokia
22%
ERNI & Tyco
Metral & HM
VHDM
Teradyne
Ericsson
Pluto, HiCap
Nokia
UltraSite, Talk, S8000
Nortel
Metrocell, S8000
Lucent
Flexent, DoCoMo
Alcatel
BTS 3.5G, A9900 LMDS
Samsung, LGIC, ZhongXing
37
FCI & Perlos
Dataquest
Electronics SBG - January 26, 2001
xDSL Market Share - Global
xDSL Market Share - 1999
Global Ports Shipped
ERNI
cPCI
Metral
Newbridge
4%
FCI
Others
11%
Lucent
Metral
FCI + Tyco
RN
Paradyne
4%
Metral
Alcatel
34%
Nortel
5%
Metral
FCI/Tyco
Metral
Orckit
6%
FCI
Copper Mtn
8%
cPCI
ERNI
Cisco
18%
Nokia
10%
Metral
Marconi partner
FCI & Tyco
Press fit CEE
Alcatel
Nortel
Nokia
Ericsson
Samsung
LGIC
A1000 R3, R4, A1540
UE-IMAS
D50 SpeedLink
ANX
Metral
FCI
Dataquest
38
Electronics SBG - January 26, 2001
Communications - Key HPLs
2000
400
350
2001
39%
Top 15 = 86%
Std Margin%
Sales KK Euros
300
250
200
150
33%
44%
32%
100
7%
39%
18%
16%
19%
37%
27%
26%
13%
28%
50
0
M
CA
F
S
CAS
Nc
PC
FO
MP
B
BP
MJ
CA
BB
All values in M EUROS
39
Electronics SBG - January 26, 2001
BP PRODUCTS
Traditional Technology
YEF '00
2001B DELTA
%
N
46.5
35.4
-11.1
-24%
F
78.0
55.3
-22.7
-29%
HC
29.6
27.6
-2.0
-7%
D
74.6
78.0
3.4
5%
228.7
196.3
-32.4
-14%
271.0
410.0
139.0
51%
MP
25.3
41.8
16.5
65%
FO
24.5
38.0
13.5
55%
320.8
489.8
169.0
53%
Subtotal
New Technology
M
Subtotal
40
Electronics SBG - January 26, 2001
Communications - Product Success Factors
 New product introductions
 Fiber Optics - multi-fiber array connector
 High Speed Mezzanine
 High Speed backpanel products to volume
 Leverage BGA technology
 Increase capacity to match demand
 Implementing Fiber Optics strategy
 Roadmapping to match technology requirements
 Continued focus on cost reduction
 Technology (Am Ni); Location (low labor regions); Systems; Prod/Proc Tech
 Time to market improvement (PACE)
41
Electronics SBG - January 26, 2001
Communications - Product Roadmap
MATURE
Brd to Brd
Backplane
Conan
HS cable
EMERGING
MegArray
0.8 mm BTB
HS Mezzanine
Metral/Millipacs
0.1” Systems
HS HM
Series 1000/2000
cPCI
Series 3000
SFF FO
Fiber
Optics
Mod Jacks
GROWTH
SC
RJ11
BP adapters
Cat 3
RJ45
Metral
GBIC
Multi Fibre
Array
SMT, LED, Mag
Cat 6 & 7
Cat 5/5e
Series 1000/2000
Gigabit Link Series 3000
MetaGig
No active FCI program
PACE program
42
Electronics SBG - January 26, 2001
Communications - Key Accounts
(includes CEM derived demand)
2000
300
2001
Top 11 = 87%
Sales KK Euros
250
200
150
100
50
0
L
E
A
N
CS
Nk
M
NC
S
43
SM
HW
All values in M EUROS
Electronics SBG - January 26, 2001
Communications - Account Success Factors
 Design wins/shipments to high growth equipment
 SONET/SDH, DWDM, xDSL, Base Stations
 Leverage existing relationships
 OEMs - L, N, A, E, CS
 CEMs - S, Sn, Cl, Sc, J, V
 Provide complete solutions
 platform design-in
 Monitor equipment start-ups
 acquisition targets for large OEM portfolio completion
 Operational excellence
 Global account management
 Gain market share through capital investment
45
Electronics SBG - January 26, 2001
Communications - SWOT
STRENGTHS
WEAKNESSES

Product breadth

Fiber optic portfolio

OEM relationships -Customer Intimate

Lack of backpanel (BP) design expertise/partner
Lucent, Nortel, Alcatel, Ericsson

Late to market with high speed BP connectors

2mm Futurebus (FB/Metral) market leader

Mature high margin products

Value added capabilities

Lack of RF solutions and focus

CEM relationships

Hard Metric position

Signal Integrity expertise

Capacity constrained: 2 mm

Automated assembly systems

not enough FB suppliers, FB share shrinking

OPPORTUNITIES
THREATS

Fiber optics value added

Lose technical leadership

High Speed BP design-ins for next gen platforms

Teradyne/Molex VHDM alliance

HS backpanel alliance/partner

Foxconn entering Comm market

PCB/backpanel/cable assembly

CEMs & Cable mfrs entering assembly business

OEMs outsourcing FO /box build

Trend to outsourced bp turn-key design & build

Time to capacity

Time to capacity to support A/P demand

Amorphous Ni & BGA technology

CEMs threaten OEM relationships

Low-cost capability/Am Ni& automated assy

Gaps in customer coverage

A/P Hard Metric market

Hard Metric dominance
46
Electronics SBG - January 26, 2001
Data
47
Electronics SBG - January 26, 2001
Product Portfolio
Data - Company Market Position
TOP SUPPLIERS (1999 - Bishop)
1) Tyco
934.8
14.1%
2) Molex
667.4
10.0%
3) FCI
502.4
7.6%
4) FoxConn
491.1
7.4%
5) 3M+RN
351.0
5.3%
6) Hirose
210.3
3.2%
7) Yamaichi
206.7
3.1%
8) JAE
198.9
3.0%
9) Amphenol
168.9
2.5%
10) T&B
160.1
2.4%
15) Teradyne
44.2
0.7%
1999 SAM = $6.65B
Tyco
Molex
FoxConn
F
Hirose
3M
Amph
JAE
Teradyne
Yama
Technology
48
Electronics SBG - January 26, 2001
Data - Company vs Market
Data - 2000
SAM = $8.5B
Data - 2001
SAM = $9.4B
Asia
37%
Asia
38%
Americas
49%
Americas
48%
MARKET
CAGR = 10.7%
Europe
14%
Europe
14%
Source: Bishop
Data - 2001
Total Sales = 354M
Data- 2000
Total Sales = 348M
Americas
39%
Americas
41%
Asia
58%
Asia
56%
Europe
3%
4.1% share
Company
CAGR = 1.7%
49
3.8% share
Europe
3%
Electronics SBG - January 26, 2001
Data - Sub-Segments
Market
Size
1B
PC
Compaq
Dell
IBM
HP
SUN
Servers
RAID
STORAGE
Seagate
Quantum
Maxtor
Fujitsu
IBM
WD
Peripherals
5%
HDD
Compaq
Dell
IBM
HP
Compaq
IBM
Dell
HP
SUN
EMC
Mobile
Computing
HP
Lexmark
Canon
10%
Handheld
15%
50
Toshiba
Compaq
IBM
Dell
Fujitsu
Palm
Handspring
SONY
Compaq
Casio
HP
Growth
Rate
Electronics SBG - January 26, 2001
Data - Key Market Trends
 Price pressures and erosion approaching “low end” consumer
 Accelerating shifting of manufacturing to:
 low cost regions & CEMs
 Explosion of Internet globally driving segment growth
 High growth in entry/mid-level servers for data management
 Double digit growth for storage systems
 Bandwidth expansion between servers/storage/networks
 High performance connector and I/O assembly needs
 Reduced life cycles, standardization of components and rapid
growth of CEMs have changed “Rules of the Game”
51
Electronics SBG - January 26, 2001
Data - Key HPLs
2000
90
13%
2001
Top 15 = 86%
Std Margin%
80
70
Sales KK Euros
38%
60
18%
39%
50
40
2%
37%
31%
30
26%
23%
32%
13%
38%
8%
38%
20
10
0
CA
Pc
M
BC
C
SC
FP
Mg
52
Hc
CASAll values
Dm
Pw
in M
SC
Mx
EUROS
Electronics SBG - January 26, 2001
Data - Product Roadmap
MATURE
DIMM
Memory
HS Cable
GROWTH
SO DIMM
InfiniBand
MetaGig
Serial ATA
Mini USB
DVI
1394 VHDCI
USB
SCSI
D-subs
Backplane
Card Edge
2mm Systems
0.1” Systems
Metral 1000/2000
Metral 3000
InfiniBand
PCI
Slot 1
Combo
Other
EMERGING
RIMM
DDR DIMM
MiniPCI
VRM9
PwrBlade
Sockets MegArray
CardBus
SCA2
Merced
PwrBay
LGA
UDS
PowerPod
No active FCI program
PACE program
53
Electronics SBG - January 26, 2001
Data - Key Accounts
(includes CEM derived demand)
2000
70
2001
Top 11 = 47%
Sales KK Euros
60
50
40
30
20
10
0
Cq
D
I
It
Mk
Q
H
Nr
Ht
54
Sn
Ac
All values in M EUROS
Electronics SBG - January 26, 2001
Data - Key Success Factors
 Focus on standards activity
 InfiniBand (BP & IO), Serial ATA
 SCSI (VHDCI), FibreChannel (MetaGig)
 JEDEC (DDR DIMM)
 Cost reduction efforts for commodity products
 Focus on profitable area of market
 Notebook, Servers, Storage
 Work closer with Intel competitors  AMD, Transmeta, others
 Stronger & more integrated relationship with A/P
56
Electronics SBG - January 26, 2001
Data - SWOT
STRENGTHS

Position with ODMs in Taiwan

Ability to serve/supply globally

Leading position with HDD OEMs

Focused product positions

PCMCIA, CardBus, Metral, MegArray, DIMM/DDR,
Combo and compression, Pwrblade, SCA2
WEAKNESSES

Cannot and will not compete on price (Foxconn)

Limited high volume/low cost capabilities

Weak product position in desktop PCs and
peripherals

TTM/TTV vs competition

Lack of top tier private label supplier alliances

Weak position with leading Japanese OEMs

Not viewed as technology leader
OPPORTUNITIES
THREATS

Double digit CAGR’s

Foxconn position, relationships and focus

Wins in Korea, Japan, Taiwan can be leveraged

Foxconn box build strategy and focus on 2 mm

Localized design+competitive production in

“New Tyco/AMP” aggressiveness
Taiwan and China

Reduced life cycles and standardization of

components reduce margins and ROIs
Increased bus speeds driving to Communications
solutions

Growth and expansion of low cost niche suppliers

Cable assembly upside

Open market bidding for conn and cable assys

expansion of ODMs in A/P

Attraction/retention of key personnel in A/P

Trend toward reduced supplier base and pkg deals
57
procurement
Electronics SBG - January 26, 2001
Consumer
58
Electronics SBG - January 26, 2001
Consumer - FCI Market Position
Product Portfolio
1999 SAM = $0.9B
TOP SUPPLIERS (1999 - Bishop)
1) Molex
267.0
28.8%
2) Tyco
126.8
13.7%
3) F
40.4
4.4%
4) JAE
36.2
3.9%
5) Hirose
33.2
3.6%
6) Elco
30.0
3.2%
7) Hosiden
25.6
2.8%
8) FoxConn
22.7
2.4%
9) Amphenol
11.8
1.3%
10) 3M
8.2
0.9%
Note: Bishop estimates excludes Mobile.
(stimates
*
$1.5B including
MP
Molex
Tyco
*includes Mobile Phone
FoxConn
Hirose
Elco
Amph
Hosiden
JAE
3M
Technology
59
Electronics SBG - January 26, 2001
Consumer - Company vs. Market
Consumer - 2000
SAM = $2.0B
Consumer - 2001
SAM = $2.16B
Americas
20%
Americas
19%
Europe
13%
Asia
67%
Europe
12%
MARKET
Asia
69%
CAGR = 8.5%
Source: FCI
Consumer- 2000
Total Sales = 151M
Consumer - 2001
Total Sales = 186M
Americas
21%
Asia
60%
Americas
20%
Europe
19%
Europe
19%
Asia
61%
Company
7.6% share
CAGR = 23.2%
60
8.6% share
Electronics SBG - January 26, 2001
Consumer - Sub-Segments
Market
Size
Nokia
Motorola
Ericsson
Panasonic
Siemens
Samsung
MOBILE
PHONES
500M
Phillips
Thomson
Hughes
Motorola/GI
Scientific Atlanta
100M
SONY
Nintendo
Sega
Microsoft
Video
Games
Set Top
Box
Residential
Gateways
Motorola/GI
Thomson
Nortel
Terayon
3Com
Efficient
Modems*
* includes xDSL, cable, analog
DSC
Video
10%
20%
61
SONY
Kodak
Canon
Panasonic
Growth
Rate
Electronics SBG - January 26, 2001
Electronic Packaging - Handheld
RF- Integrated Antenna
LEVEL 5
LEVEL 5
I/O + Accessory
Battery
LEVEL 5
LEVEL 3
Microphone
LCD
LEVEL 3
BtB
SIM
LEVEL 3
LEVEL 3
62
Electronics SBG - January 26, 2001
Consumer - Key Market Trends
 Growth in digital consumer devices
 Integrated cell phones, new application for Internet access
 Mobile equipment (PDA, Camcorder, CD/MP3 players)
 Residential Gateways, set top boxes, high end game systems
 Autosystems (navigation, entertainment, smart toll)
 Lacking standardization but beginning to attempt
 Moving away from PC centric world
 Broadband connected home (networks, etc.)
 Increasing use of handheld devices
 New application for Smart Cards associated with e-business
 Secure Data Card
63
Electronics SBG - January 26, 2001
Consumer - Key HPLs
2000
80
2001
Std Margin%
24%
70
Top 15 = 98%
23%
Sales KK Euros
60
50
40
21%
30
48%
20
13%
26%
17%
27%
27%
41%
5%
8%
48%
13%
Bt
D
10
0
MP
FP
SC
C
CA
MJ
PPP
PC
US
Bs
Bd
S
All values in M EUROS
64
Electronics SBG - January 26, 2001
Consumer - Success Factors
 Mass production culture: Ability to meet volume ramp-up
 High degree of customization
 Technology leadership in mobile I/O
 Presence on accessories
 Focus on major players: few but dominate market
 Utilize Global marketing/operation network
 Focus market strategy
 cell phones, set top box, residential gateways
 Program Management Organization
65
Electronics SBG - January 26, 2001
Consumer - Product Roadmap
MATURE
GROWTH
FFC/FPC
Brd to Brd
0.8 mm BTB
Conan
I/O
Mod Jacks
USB
D-subs
Card Systems
Other
PCMCIA
EMERGING
HS FFC/FPC
Compression
LP BTB
0.5 mm BTB
BTVM
0.8 mm MegArray
Mobile I/O
RF Antenna
1394 1394b
Mini USB
CardBus
CompactFlash
Smart Card
MMC
SDC
Sockets
No active FCI program
PACE program
66
Electronics SBG - January 26, 2001
Consumer - Top 10 Key Accounts
(includes CEM derived demand)
2000
30
2001
Top 10 = 47%
Sales KK Euros
25
20
15
10
5
0
Pi
Mt
Sy
Ma
Cn
Ta
Th
Nk
So
67
Pi
All values in M EUROS
Electronics SBG - January 26, 2001
Consumer - SWOT
STRENGTHS
WEAKNESSES

Product breadth for cell phones

Limited number of accounts as customers

Infrastructure for strategic sourcing for

Low presence in design houses
Mobile

Strategy unclear beyond cell phones

Process in place for project management

Lack of focus on FFC connectors outside Asia

Global organization for sales and ops

No 0.3 mm BTB offering

Access to low labor cost internal

No wire to board offering
capability

China, Hungary
OPPORTUNITIES

Improving OEM relationships

THREATS

Resources capacity issues limit growth potential

Motorola, Nokia, Thomson, Phillips, SA

smart card, mobile I/O

Residential gateways/set top box

Wireless Internet/RF Antenna technology

Clear focus segment/product strategy

Tyco/AMP aggressiveness

SD card

Strengths of competition

New technology for high speed assembly

Expand FFC/FPC offering
Major technology changes expected within 3 years



69
Bluetooth, etc.
Molex, Hirose, JST and Taiwan/China companies
Price war in many segments
Electronics SBG - January 26, 2001
I&I
70
Electronics SBG - January 26, 2001
I&I - Company Position
Product Portfolio
1999 SAM = $7.17B
TOP SUPPLIERS (1999 - Bishop)
1) Tyco
1261.9
17.6%
2) FCI*
381.2
5.3%
3) Molex
249.8
3.5%
4) Harting
214.1
3.0%
5) 3M+RN
171.4
2.4%
6) Amphenol
153.2
2.1%
7) JAE
134.7
1.9%
8) Hirose
135.8
1.9%
9) ITT Cannon 119.7
1.7%
10) T&B
84.5
1.2%
Tyco
* includes Interconnection
Molex
JAE
Amph Harting
ITT
T&B
Hirose
3M
Technology
71
Electronics SBG - January 26, 2001
I&I - Company vs Market
I&I - 2000
SAM = $8.4B
Asia
32%
I&I - 2001
SAM = $9.0B
Asia
32%
Americas
35%
Americas
35%
MARKET
Europe
33%
CAGR = 7.1%
Europe
33%
Source: Bishop
I&I - 2000
Total Sales = 155M
Asia
15%
Europe
56%
1.8% share
I&I - 2001
Total Sales = 194M
Asia
14%
Americas
29%
Americas
29%
Europe
57%
Company
CAGR = 25.2%
72
2.2% share
Electronics SBG - January 26, 2001
I&I - Sub-Segments
2B
Market
Size
Rockwell
Emerson
Honeywell
Eaton
Hitachi
Siemens
ABB
Industrial
Office
Equipment
1B
Agilent
Tektronix
Fluke
Teradyne
Schlumberger
Instrm
Agilent
Medtronic
GE
HP
Xerox
Pitney Bowes
Kodak
Harris/Lanier
Medical
Emb
Comp
5%
Motorola
SUN
Intel
10%
Growth
Rate
Source:Bishop
73
Electronics SBG - January 26, 2001
I&I - Key Market Trends
 Utilizes standard technologies and interconnects from other
segments, primarily Data Segment
 Has specialty connector needs particularly in Medical and
ruggedized applications
 50% of all connectors purchased through Distribution
 Industry moving to standard platforms - Windows/Intel
 More and more vendor based designs - COTS (Commercial
Off The Shelf) initiative
 Moving to digital technology from analog
 Can be highly specialized and require customization
74
Electronics SBG - January 26, 2001
I&I - Key Products
2000
60
2001
37%
Top 15 = 68%
Std Margin%
50
Sales KK Euros
40
30
39%
38%
20
7%
19%
13%
18%
22%
8%
36%
10
40%
27%
26%
26%
Us
Hc
MJ
0
BC
M
Pc
D
MP
CA
P
Q
75
S
Di
Ds
All values in M EUROS
Electronics SBG - January 26, 2001
Industrial - Product Roadmap
MATURE
EMERGING
RIMM
SO DIMM
DDR DIMM
DIMM
Memory
Brd to Brd
GROWTH
0.8 mm BTB
0.5 mm BTB
IEEE 1386
Conan
MegArray
PC/104
Millipacs
Backplane
I/O
DIN
D-subs
cPCI
USB
SCSI
Sockets
1394b
1394 VHDCI
RF
Other
HS HM
POF
HS Link
PwrBlade
PCMCIA
CompactFlash
PwrBay
No active FCI program
PACE program
76
Electronics SBG - January 26, 2001
I&I - Key Accounts
(includes CEM derived demand)
2000
9
2001
Top 12 = 15%
8
Sales KK Euros
7
6
5
4
3
2
1
0
Ag
Av
S
Nt
PB
Sh
Ab
Hy
R
77
As
Ht
Al
All values in M EUROS
Electronics SBG - January 26, 2001
I&I - Success Factors
 Select, focus on target opportunities that are large volume wins
 Work the distribution network
 Bundle connectors and value-added
 Leverage globally, among all groups, and utilize programs such
as Basics
 Design and manufacture in low-cost regions
79
Electronics SBG - January 26, 2001
I&I - SWOT
STRENGTHS
WEAKNESSES

Product breadth across SBGs

Little focus on segment

Offer value-added supply (breadth)

Well established incumbents

Strong global Distribution network

RF product line, terminal blocks

Global supply capability

Lack products to serve some Standards: 1386,
PC104

OPPORTUNITIES

Leverage entire product line

Basics+ program initiative

Strong press-fit offerings

Non user-friendly website
THREATS

Samtec offering better service level
D-sub, DIN, 2mm

Good margins

Increase Distributor share

Expands Basics+ approach to other products
80
Electronics SBG - January 26, 2001
Strategies & Challenges
81
Electronics SBG - January 26, 2001
FCI Electronics - Strategic Direction
 Strengthen leadership in Communications segment through
high-speed copper and fiber optic developments and
technology “partnerships”
 Increase margins through aggressive product management
and manufacturing cost reduction
 Leverage and sustain customer intimacy to provide complete
technology and Value Added solutions
82
Electronics SBG - January 26, 2001
FCI Electronics - Strategic Direction
 Establish financial structure and performance competitive
with industry leaders.
 Improve business balance by selective penetration in
segments other than Communications
 Consumer focus on mobile phone and handheld devices
 Data focus on wireless computing and mid to hi-end servers
 I&I penetration through distributor sales
83
Electronics SBG - January 26, 2001
FCI Electronics - Key Challenges
 To reduce TTM/TTV by optimizing product and process
development and resource allocation
 To establish skills and capabilities at low cost labor sites
needed to effectively transfer production from higher cost
manufacturing operations
 To establish processes and systems needed to provide
timely and accurate data needed to support business
understanding and decision making
84
Electronics SBG - January 26, 2001
FCI Electronics - Key Challenges
 To establish customer relationships and sales channels
needed to further penetrate Data, Consumer, and I&I market
segments
 To align operating and cost structure to support business
and financial objectives
 To continue customer intimacy at key Communications OEMs
while establishing preferred supplier status with CEMs
85
Electronics SBG - January 26, 2001
Financial Plan
January 26, 2001
86
Electronics SBG - January 26, 2001
2001 EBITDA BUDGET
(Euros in millions)
1999*
2000*
2000R**
2001B**
Sales
1,112
1,428
1,536
1,709
348
442
475
547
% of Sales
31.3%
31.0%
31.0%
32.0%
Planned Cost
235
273
294
332
% of Sales
21.1%
19.1%
19.1%
19.4%
113
170
183
216
10.2%
11.9%
11.9%
12.6%
180
245
263
314
16.2%
17.1%
17.1%
18.4%
Gross Earnings
Operating Income
% of Sales
EBITDA
% of Sales
* 2000 budget exchange rate.
** 2001 budget exchange rate.
87
Electronics SBG - January 26, 2001
OPERATING CASH FLOW
2000 B
2000 A
2001 B
EBITDA
225
245
314
Change in Reserve
(16)
(9)
(2)
Change in OW/C
(11)
(21)
(26)
(104)
(126)
(174)
94
89
112
Net CAPEX
Operating Cash Flow
88
Electronics SBG - January 26, 2001
CASH TO CASH CYCLE
1999
2000B
2000A
2001B
2003P
Americas
97
86
82
78
82
Europe
90
76
76
101
95
Asia
64
86
30
55
81
Total
93
93
77
91
95
89
Electronics SBG - January 26, 2001
2001 BUDGET BY SEGMENT
(Euros in millions)
Trade Sales
Connectors
2001
Budget
Value
2001
Budget
Fiber Optics
2001
Budget
Electronics
2001
Budget
1,360.0
311.3
38.0
1,709.3
Gross Earnings
% Sales
473.9
34.8%
67.4
21.6%
6.1
16.0%
547.4
32.0%
Planned Costs
% Sales
274.7
20.2%
47.3
15.2%
9.7
27.1%
331.7
27.1%
Operating Income
% Sales
199.2
14.6%
20.1
6.5%
(3.7)
-9.7%
215.7
12.6%
EBITDA
% Sales
287.4
21.1%
28.9
9.3%
(2.2)
-5.8%
314.0
18.4%
90
Electronics SBG - January 26, 2001
EBITDA PROJECTION
(Euros in millions)
1999*
2000*
2000 R**
2001 B**
2003 P*
Sales
1,112
1,428
1,536
1,709
1,793
348
442
475
547
633
% of Sales
31.3%
31.0%
31.0%
32.0%
35.3%
Planned Cost
235
273
294
332
352
% of Sales
21.1%
19.1%
19.1%
19.4%
19.6%
Operating Income
113
170
183
216
281
% of Sales
10.2%
11.9%
11.9%
12.6%
15.7%
180
245
263
314
379
16.2%
17.1%
17.1%
18.4%
21.1%
Gross Earnings
EBITDA
% of Sales
* 2000 budget exchange rate.
** 2001 budget exchange rate.
91
Electronics SBG - January 26, 2001
VERSUS SAP3
1999
2000
2001
2002
2003
SALES
SAP3 2000 2001*
1,112
1,260
1,349
1,428
1,496
1,570
1,659
1999
2000
2001
2002
2003
* 2001 budget adjusted at
SAP3 exchange rate
92
EBITDA
SAP3
2000
2001*
180
231
245
271
289
309
351
Electronics SBG - January 26, 2001