Docstoc

Board of Directors Presentation - PDF

Document Sample
Board of Directors Presentation - PDF Powered By Docstoc
					    Design. Build. Ship. Service.




                                                              Sean Burke
                                                    President, Computing

                             Flextronics Mid-Year Business Update
                                                              November 17, 2009
Design. Build. Ship. Service. Design. Build. Ship. Service.
Agenda



   Segment Overview and Operating Footprint

   History

   Product Strategies

   Customers and Competition

   Financials




         Design. Build. Ship. Service.
  FlexComputing Products and Scope

Full system and subsystem design, ODM & EMS manufacturing, fulfillment, and aftermarket services




                                                    Notebooks                   Server
       Desktop PCs




                                         Servers                             Storage
                   Design. Build. Ship. Service.
FlexComputing History

    Computing                    Acquisition of               CSDC Expansion     Intro of Innovation
  Segment formed                   MyMedia                      into Storage         Ingredients

                                                  Arima Computer                      Taiwan Notebook
         Creation of CSDC,
               Taipei
                                                  Acquisition Start    Completed Arima R&D Expansion
                                                                         Computer
                  Acquisition of                           Shanghai      Acquisition           WuZhong
                   iWill Corp.                            R&D Center                           Expansion




  2006                          2007                           2008                2009

  1000

   800
               Engineering Resources
   600

   400

   200

     0

    2006                        2007                           2008                2009                 2010


                  Design. Build. Ship. Service.
Two major ways in which we compete




 1) Scale and Footprint

 2) Innovation and integration




          Design. Build. Ship. Service.
We compete on our scale and footprint

                                                                 Venray, Netherlands
                                                                 Logistics


                                                                     Sarvar/Zala, Hungary   WuZhong, China
                                       Toronto, Canada               Manufacturing          R&D and PC
                                       R&D                                                  Manufacturing

                                                                                              Wujiang, China
                                                                                              Notebook
                                                                                              Manufacturing
 San Jose, USA                                                                                      Shanghai,China
            HQ                          Memphis, TN                                                 R&D
                                        Logistics
                                                                                                      Taipei, Taiwan
                                                                                                      R&D


                                                                                             Zhuhai, China
                                                                                             Manufacturing

          Juarez, Mexico
          Manufacturing

                                                  Sorocaba, Brazil
                                                  Manufacturing

       The most comprehensive computing manufacturing footprint and
        The most comprehensive computing manufacturing footprint and
                   breadth of design capability in the industry
                    breadth of design capability in the industry
                  Design. Build. Ship. Service.
Computing Segment Design Centers




      CSDC                                  SDC                        CSNC                      TDC
• Taipei, Taiwan               • Shanghai, China               • Taipei, Taiwan          • Burlington, Canada

• Product Focus:               • Product Focus:                • Product Focus:          • Product Focus:
   - Desktop, AIO, Server,           - Desktop                    - Notebook, Netbook       - Sys, Emb, App SW
                                                                                            - Innovation Ingredients
     Storage                         - AIO                     • Technical Expertise:
                                                                                            - Automated SW, Des. Val
• Technical Expertise:         • Technical Expertise:             - Elec, Mech, System
                                                                                              & Mfg Systems
   - Elec, Mech, System              - Elec, Mech                   design
     design                          - BIOS, Signal Analysis      - FW / BIOS / SW       • Technical Expertise:
   - FW / BIOS / SW                                               - Tooling, Signal         - SW Dev ((MSFT, Linux,
                                     - System Validation                                      Android)
   - Tooling, Signal                                                Integrity, System
     Integrity, System                                              Validation              - Sys Eng, Sys Design
     Validation                                                                             - Elec, Mech, Materials



                     Design. Build. Ship. Service.
We compete on innovation and Integration
                                 Full Notebook System
     A/B/C/D Enclosure

                                   Screen Touch                             CPU   Heatsink
LCD Panel                                                      SODIMM                                     Packaging
                                                                                                        Parts Hubbing
                                                 MB
                                                                               IO Daughter Cards      VMI Management
                                                                                                     CTO Manufacturing
                                  Cables & Flexible Circuits     Graphics
                                                                                                           Logistics
                                                          Keyboard
                                                                             Antenna Systems            Postponement
                                                                             Bluetooth, 802.xx
                                                                                                   Retail Technical Services
                                                                                      Touch
                                                                     Hard Disk         Pad
                                                                                                    Service Parts Logistics
Chassis
                                                                                                     System Level Repair
                                  GFX Heatsink
                                                                                                    System Refurbishment
                                                         CDROM                    Camera Modules
                                                                                                   Environmental Disposal
                                 Battery
                                                                            Wireless Modules
                                           AC/DC Power Adapter




                         Design. Build. Ship. Service.
We compete on innovation and Integration
                   Flextronics Notebook Vertical Content
     A/B/C/D Enclosure

                                   Screen Touch
LCD Panel                                                                                               Packaging
                                                                                                      Parts Hubbing
                                                 MB
                                                                             IO Daughter Cards      VMI Management
                                                                                                   CTO Manufacturing
                                  Cables & Flexible Circuits   Graphics
                                                                                                         Logistics
                                                                                                      Postponement
                                                                                                 Retail Technical Services
                                                                                    Touch
                                                                                     Pad
                                                                                                  Service Parts Logistics
Chassis
                                                                                                   System Level Repair
                                  GFX Heatsink
                                                                                                  System Refurbishment
                                                                                Camera Modules
                                                                                                 Environmental Disposal

                                                                          Wireless Modules
                                          AC/DC Power Adapter




                         Design. Build. Ship. Service.
Key Markets


  Market                                     Rev FY10   Market Share

1 Notebook                                   ~$1,000M     2.0%


2 Desktop                                     $857M       1.9%


3 Server/Storage                             $2,372M      15.3%


4 Other                                       $257M       N/A


  Revenue                                    $4,486M


             Design. Build. Ship. Service.
FlexComputing Overview – Notebooks

• Notebook Market Trend:
  - 18% CAGR to 300Mu market size in FY14
  - <13”, Thin-n-Light NB & Netbook to take 50% mrket
  - Top 5 ODMs have 85% of supply, top 5 OEM have 66%
                                                                            49.3%
• Notebook Product Strategy:
  -   Build OEM confidence by delivering difficult programs
  -   Ultra Hi-end to Thin-n-Light, now Mainstream
  -   Pre-RFQ roadmaps & prototypes to shorten TTM
  -   Deliver Innovation Ingredients for add’l opportunities
  -   Develop leading concepts, new materials (Ti clad), new
      features (touch), etc

• Key Design Wins:
  - 8 wins including refresh models from HP & Dell in CY09
  - In development with new notebooks/netbooks
  - Working additional quotes for more volume in 2010

• Flextronics Vertical Opportunities:
  - PSU, Webcam, Mechanicals, Cosmetic Finishes, PCB,
    Touch



                Aggressive Tier 11account penetration and product line growth
                 Aggressive Tier account penetration and product line growth
                    Design. Build. Ship. Service.
FlexComputing Overview – Desktops

                                                                                     60,000


                                                                                     50,000
• Desktop Market Trend:




                                                             System Volume (000's)
                                                                                     40,000
  • Market moving to smaller form factors – by 2011
  • Small/ultrasmall form factor & All-in-One systems will                           30,000

    make up > 35% of market, ~ 50M units/yr (IDC 2009)                               20,000


                                                                                     10,000
• Desktop Product Strategy:
                                                                                         0
  • Targeting fastest growing desktop segments                                                  2006     2007   2008     2009   2010    2011   2012     2013

  • AIO/USFF products can leverage notebook capability                                        Small FF   Ultrasmall FF    Tiny Desktop FF   All-in-One FF




• Targeted Desktop Product Categories:
  1. All-in-One systems
  2. Small & Ultrasmall form-factor systems
  3. Gaming PCs

• Flextronics Vertical Opportunities:
  • PSU, PCB, camera modules, touch, cosmetic finishes,
    plastic/metals



        Compelling DT business growth in new disruptive product lines
         Compelling DT business growth in new disruptive product lines
                  Design. Build. Ship. Service.
FlexComputing Overview – Servers
                                                                                   10,000,000                        Volume Servers Units (June 2009          35,000.00
                                                                                                                     Fcst)
                                                                                                                     Volume Servers Rev (June 2009
                                                                                    9,000,000                        Fcst)
                                                                                                                                                              30,000.00

• Server Market Trend:                                                              8,000,000


   - WW server market revenue declined ~30% YoY in                                  7,000,000
                                                                                                                                                              25,000.00



     2Q09 (IDC, Sept ’09)




                                                             Volume Server Units
                                                                                    6,000,000




                                                                                                                                                                          Revenue in $M
                                                                                                                                                              20,000.00
       - 4th consecutive Qtr of rev decline                                         5,000,000

       - Lowest Qtr server rev since IDC began tracking                             4,000,000
                                                                                                                                                              15,000.00

         Qtrly data in 1996
                                                                                    3,000,000
   - Increasing demand for low-power                                                                                                                          10,000.00


                                                                                    2,000,000
   - Greater energy efficiency driving evolution to higher                                                                                                    5,000.00
                                                                                    1,000,000
     density configurations
                                                                                           0                                                                  0.00
                                                                                                2007   2008   2009      2010       2011       2012     2013



• Server Product Strategy
   -   Targeting High Density, Energy Efficient Solutions
   -   2-Socket (1U & 2U rack & tower, Intel & AMD)
   -   1-Socket (1U rack & tower servers, Intel & AMD)
   -   Focused effort for leverage and reuse

• Flextronics Vertical Opportunities:
   • PSU, PCB, Mechanicals




            Server business expansion through innovative industry-leading designs
             Server business expansion through innovative industry-leading designs
                     Design. Build. Ship. Service.
FlexComputing Overview – Enterprise Storage
                                                              25000

• Storage Market Trends:                                      20000
   • Economic crisis having less impact on storage than
     other segments of computing sector                       15000
   • Storage systems WW sales YoY decline ~3.1% in
                                                              10000
     2009 (IDC ’09)
   • Storage design & mfg outsourcing transition continues     5000
   • Some custom storage systems moving to industry-
                                                                  0
     standard, server building blocks                                 2006   2007   2008   2009   2010   2011   2012
                                                             Rev.($M) 18500 20000 21500 20800 21300 22500 23700
• Storage Product Strategy
   1. Continue delivering JDM-based solutions with OEMs
   2. Leveraged Server products for new Storage wins
   3. Partner/Acquisition to provide RAID Stack and
      Management SW

• Flextronics Vertical Opportunities:
   • PSU, PCB, metals




    Delivery of world-class products driving strong storage business growth
     Delivery of world-class products driving strong storage business growth
                  Design. Build. Ship. Service.
Competition
                                                                                           Computing
                                      DT/
                  NB                                   AIO       Server      Storage        Revenue
                                     Nettop
                                                                                           (2008, $B)
                                                                                                      *
                                                                 Dell, HP,
               HP, Dell                 Apple         Apple                   Dell, HP         $26.4
                                                                   IBM
            Acer, Dell, HP,
                                      Dell, HP        Lenovo                     LSI           $19.9
            Lenovo, Apple
            Acer, Dell, HP,                             HP,
                                      Dell, HP                    Dell, HP                     $12.0
               Lenovo                                 Lenovo
            Acer, Dell, HP,
               Lenovo
                                                                                               $11.9

 Pegatron   Asus, Lenovo              Asus, HP                                                 $11.1

                   HP                                   HP        Dell, HP       HP            $10.9

                                                                    HP           HP             $1.8

                                      Dell, HP                      Dell                        $1.5

                                                                              Dell, LSI,
                                        Dell,                    Dell, HP,
               Dell, HP                               Lenovo                    Sun,            $5.5
                                       Lenovo                    IBM, Sun
                                                                              Xyratex


              Design. Build. Ship. Service.     * Computing Revenue (NB, DT, Server, Storage), IDC, Q2 2009
Customers – Q3 FY09

                                          DT/
                    NB                            AIO   Gaming   Server   Storage
                                         Nettop
                                           X              X        X
                      X                                            X
                                           X
                                                                   X
                                                                   X        X
                                                                   X


                                                                            X




         Design. Build. Ship. Service.
Customers – Today (Q3 FY10)

                                           DT/
                     NB                            AIO   Gaming   Server   Storage
                                          Nettop
                       X                    X              X        X        X
                       X                                            X
                                            X      X
                                                                    X
                                                                    X        X
                                                                    X
                                                                    X
                                                                             X
                                                   X
                                            X      X
                                                   X
                                            X
          Design. Build. Ship. Service.
Major ODM Customers
 • Top three ODM Customers:                                                                     HP
           •FY09 = $1.35B
           •FY10 = $2.20B                                          $20,000
           •FY11 = $4.15B
                                                                   $15,000
 • Targeted Plan for FY13 is $8.2B                                                                               Desktop
                                                                   $10,000                                       Notebook
 • Target Rev at 15-25% customer share is                                                                        Enterprise
   more than $19.0B                                                 $5,000

                           Lenovo                                       $0
                                                                              Total     Flex     FY13   Target
                                                                                       Current
    8,000
    7,000
    6,000                                             Desktop
    5,000                                             Notebook
                                                      Enterprise
                                                                                            Dell
    4,000
    3,000                                                          $16,000
    2,000                                                          $14,000
    1,000                                                          $12,000
        0                                                          $10,000
                                                                                                                 Desktop
              Total    Flex       FY13      Target                                                               Notebook
                      Current                                       $8,000
                                                                                                                 Enterprise
                                                                    $6,000
                                                                    $4,000
  Notes:                                                            $2,000
  • Customer data represents annualized estimated COGS.                $0
                                                                             Total     Flex      FY13   Target
  • Current Revenue is based on FY 2Q11 run rate                                      Current


                      Design. Build. Ship. Service.
Computing Summary




• Geographic scale and size a huge advantage

• We compete on innovation and integration using all Flex divisions

• ODM market share at 3% -- massive opportunity for future growth



This is the biggest and most outsourced market in the world
       today and we are excited about the next 5 years




            Design. Build. Ship. Service.
Thank you




            Design. Build. Ship. Service.

				
DOCUMENT INFO