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Asia Plant Comparison April 2012

Date post: 14-Apr-2018
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    Confidential Jabil Proprietary Information

    Asia Plant Comparison

    April 2012

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    Confidential Jabil Proprietary Information

    China Cost Increase As you know, Chinas labor rates are increasing and new levies have been added for foreign

    businesses

    For labor wages, in early CY2012 our China plants see DL wages increasing at 15% andIL salary increasing at 8%

    Inflation in China RMB may appreciate at a slower pace With CPI inflation falling and commodity

    prices easing, the incentive for appreciation has weakened

    We think fundamentals still support appreciation when the market stabilizes, howeverthe pace of CNYUSD appreciation could slow to 2-3% in 2012

    Contributions will now have to be made by employers and employees to Social Security

    Funds If you need additional information, please contact the Pricing Intelligence Team

    Due to these changes, we wanted to provide you with China labor rate trend, Asia ratecomparison, tax considerations and Asia sites capability overview

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    Confidential Jabil Proprietary Information

    China DL Rates Recent History

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    140%

    160%

    180%

    Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

    GMS China Average DL Rate/Hr

    GMS China Average DL rater fully loaded

    SE Asia Average DL Rate/Hr

    SE Asia Average DL rater fully loaded

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    Confidential Jabil Proprietary Information

    DL Rate Trend Comparison with China Average

    0%

    50%

    100%

    150%

    200%

    250%

    300%

    350%

    400%

    Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13

    VietnamPenang

    Pune

    Singapore

    Huangpu

    Shanghai

    Wuxi

    GMS China Average

    SE Asia Average

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    Confidential Jabil Proprietary Information

    Capabilities OverviewHuangpu Wuxi Shanghai Penang India Vietnam Singapore

    Strengths

    ofs

    ite

    High mfgCompetencysite

    High Mix/ Lowvolume

    High Volume &Velocitycapability

    Infrastructureto supportUSD2B

    SMT, BoxBuild

    Perfectlocation forcost-sensitive

    complex andverticallyintegratedproducts

    SMT, BoxBuild

    Electronics,Plastics &MetalsAssembly

    OpticalAssembly

    Center ofExcellenceforHealthcare

    Highcomplexityproducts

    Design

    SMT, Box

    Build

    Aftermarket

    SystemIntegration

    HightechnicalCompetencysite for AsiaRegion

    Ultra Highmix/ Lowvolume

    SystemIntegrations

    SMT, BoxBuild

    OpticalAssembly

    ConformalCoating

    High Mix/ LowVolume

    Low Mix/ HighVolume

    Aftermarket

    MechanicalDesign andPlastics

    RF Experience

    EnclosureIntegration

    SMT, Box Build

    Solar ModuleMfg

    HighMix/High

    Volume

    Sub-Assembly

    Plastics

    SMT

    Sole EMSexistencein southpart ofVietnam.

    Asias

    BTO/CTOCenter

    Optical and

    Calibration

    PowerSuppliesAssembly

    PrecisionMechanical

    PlasticAssembly

    ConformalCoating

    SMT

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    Confidential Jabil Proprietary Information

    Tax & Treasury Considerations

    Huangpu Wuxi Shanghai Penang India Vietnam Singapore

    Expected TaxRate 25% 25% 25% 0% 33%

    0% for next 3yrs.5% for next

    9years10% for rest of

    life

    0%

    Tax changesexpected NA NA NA NA NA NA NA

    Ease of cashrepatriation Challenging Challenging Challenging Easy Medium Medium Easy

    FX risks Highlyregulated.Liquid markets

    Highlyregulated.

    Liquid markets

    Highlyregulated

    Liquid markets

    Mediumregulation.

    Liquid markets

    Highlyregulated.

    Liquid markets

    Highly regulated.Not Liquid markets

    Low regulationLiquid markets

    For information on DUTIES for these sites, please contactFrancis Loh Regional Logistics Director

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    7Confidential Jabil Proprietary Information

    Thinking about moving your business?

    Contact Logistics

    Works with you to determine best location for products and total landedcost analysis

    Contact Tax & Treasury Department

    Provides you with local tax information (e.g. tax holidays, surcharges,duties, etc.), potential FX issues and risk assessment

    Contact DBM and Plant Controller at potential site

    For site options and financial impact

    Site DBM ControllerPenang VY Lai Chin Kuang Kim

    Singapore VY Lai Franklin Song

    Shanghai & Wuxi Leon Xu Peter Shen

    Huangpu LH Quah Dave Leung

    India VY Lai Samit Moye

    Vietnam VY Lai Huu Binh

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    8Confidential Jabil Proprietary Information

    For more information, please contact

    the Pricing Intelligence Team (PIT) oraccess the website at

    Pricing Intelligence Team Website

    Note: Slide must be indisplay mode for hyperlinkto website to work

    http://jepprd.corp.jabil.org/myteam/misc/PIT/Pages/PricingIntelligenceTeam.aspxhttp://jepprd.corp.jabil.org/myteam/misc/PIT/Pages/PricingIntelligenceTeam.aspx

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