Design. Build. Ship. Service. Flextronics Overview April 2011 Design. Build. Ship. Service. A Global Technology Supply Chain Company $24 Billion in Annual Sales 200,000+ Employees Globally; ~20,000 Logistics/Services Operating in 30 Countries; 27 million Square feet of manufacturing Segmented into 5 major market segmented subdivided to areas of focus Design. Build. Ship. Service. 2 Five Market Segments 1 COMPUTING 2 INDUSTRIAL 3 INFRASTRUCTURE 4 MEDICAL 5 MOBILE & CONSUMER Design. Build. Ship. Service. 3 Segment Expertise Notebook PCs 1 1COMPUTING COMPUTING Desktop PCs Capital equipment 2 2INDUSTRIAL INDUSTRIALAppliances Smart grid meters/controls Ethernet switches & routers Broadband access equipment 3 3INFRASTRUCTURE INFRASTRUCTURE & CONSUMER 5 5MOBILE MOBILE & Graphics boards Enterprise storage Computer peripherals Automotive Solar Aerospace Self service –kiosks Defense Natural resources Customer premise equipment Optical transport equip. Set-top boxes Telephone switching & PBX equipment Consumer diagnostic devices Lab/Life science equipment Disposable devices for wound management Diabetes products Imaging & Patient monitoring Drug delivery devices Diagnostic equipment Smart phones Digital cameras Cellular handsets Gaming consoles Servers and storage 4 4MEDICAL MEDICAL Industry standard servers CONSUMER Data cards Embedded modules Design. Build. Ship. Service. Print & Copy Security tags Catheters Instrumentation Audio & Video equipment Including flat panel TVs, DMPs and audio accessories 4 Flextronics Aerospace and Defense Services Sample of Product Experience Turret Missile Launch Guidance System Commercial Aircraft Components Strike Missiles Turret Missile Launch Guidance System Noise Protection & Communication System Ruggedized PC Mobile Flexible Ground Sensor System Military Aircraft Components Defense Communication Rescue Beacon Design. Build. Ship. Service. 5 Flextronics – Columbia Facility Highlights Leading complex system build site within Flextronics Highly flexible manufacturing footprint • 60 Acre Manufacturing Campus • 450,000 Square Ft facility • 400 full time employees/customer support Ideal Proximity and Location • Ready access to 6 Interstate Highways • Less than 1 mile from Columbia Airport and UPS Air/Ground Hubs • Less than 2 hrs from Charleston deepwater port Proven Versatility • Flexible Manufacturing footprint • Wide ranging products and fulfillment models Design. Build. Ship. Service. 6 Flextronics – Columbia Systems Manufacturing Complex BTO/CTO, Systems Integration and Direct Fulfillment Supply Chain, Manufacturing and Fulfillment Solutions • Turnkey systems manufacturing • End-to-End Supply Chain Mgt • Direct Fulfillment to End Customer Build-to-Order Specialists • State of the art mfg and control systems • Fixed SKU and SKU-less mfg A Tradition of Excellence • Over 25 years of BTO Systems Mfg • ISO 9001, TL 9000, ISO 14001, ISO 13485 and AS-9100 certified • 400+ Associates - Flexible, Cross-Trained workforce Design. Build. Ship. Service. 7 Flextronics – Columbia Program History SAN Switches Compact Kiosks Fault Tolerant Computing Digital Cinema Photo Kiosks Network Routers Network Switches Enterprise Computing Network Routers Midrange Servers Airline Kiosk Multiservice Switch Bank Payment Solutions Retail Scanners Design. Build. Ship. Service. Automated Checkout Systems ATM’s 8 Flextronics – Columbia Supply Chain Optimization Leverage supplier relations across $24 Billion spend Global Supply Chain Reach • Industry Leader with Global Supply Chain Leverage • Strong, established Supplier Relationships • Competitive Pricing through LCC Leverage Vertical Integration • Proven capabilities and worldwide footprint • Plastics, Sheetmetal, Printed Circuit Boards Turnkey Mfg and Direct Fulfillment and Repair • Flextronics-Columbia Full Turnkey integration • Worldwide Direct Fulfillment • Extensive service and repair organization Design. Build. Ship. Service. 9 Flextronics – Columbia Lean Best Practices Relentless drive to improve processes and reduce costs Pull Visual Replenishment, Kanban, Supplier Pull Flow Single Piece Flow, Line Balancing, Takt production Visual Mgt Clear sight lines, Visible Performance Metrics, 5S Perfection Jidoka, Zero Defect Teams, FMEA, Poka-Yoke Kaizen culture drives continuous improvement • Empowered Kaizen teams with Standardized Kaizen format • Relentless Reduction of Waste Typical Improvements for Transferred Products: • 50% Floorspace reduction • 40% Cycle Time reduction • 75% WIP reduction • Sustainable formula for Process improvements Continuous Kaizen Visible Performance Metrics Design. Build. Ship. Service. 5S and Visual Control Takt Production 10 Flextronics – Columbia Distribution and Logistics Outstanding capability as a leading logistics provider Distribution Services • Ability to manage high volume distribution operations • Pick, pack and ship to customer sales order • Manage complete distribution supply chain • Consolidation point for spares/upgrade orders • Manage and consolidate ship sets with BTO System Integration business Outbound Logistics Services • Worldwide Direct Fulfillment • Manage Finished Goods kanbans • Manage and drive freight savings • Traffic management for order consolidation Design. Build. Ship. Service. 11 Flextronics – Columbia Design and NPI Services Robust product development capabilities Industry Leading Design Team • Industry Leading Global Design Team provides custom design services, products and solutions • Flexible engagement model tailored to specific customer needs Custom Design Solutions • Industrial design, user interface and mechanical design • Printed circuit board design • Software and firmware development • Test and engineering services Time to Market Advantages • Early engagement and NPI services promote seamless product launch • Time to market advantages for OEM while optimizing R&D investment • Concurrent design of the manufacturing process assures launch readiness • Flextronics-Columbia’s robust NPI project planning process assures precise navigation through each step and gateway to launch. Design. Build. Ship. Service. 12 Thank You Design. Build. Ship. Service. 13