HIGH VELOCITY SOLUTIONSexecuting at the speed of innovation

Mike Dennison, PresidentMay, 2012

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High Velocity Solutions

A Refined Strategy to Win in a Major Market Segment

HVS Business Plan

Diversified customer mix

Predictable financial results

Sustainable profit growth

Differentiated/comprehensive solutions

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“Cheaper in China”

• Standard solutions • Many players, few winners• Large scale, low profit

Differentiated Value

• E2E Services• Verticals• Regional manufacturing• Engineering services

Balancing the Portfolio Takes Business Intelligence

Ongoing ProfitDecline

FlexMarginGrowth

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High Velocity (HVS) Key Facts

Key Facts about HVSKey Facts about HVS

Industrial & Emerging

~15%

Industrial & Emerging

~15%

High Velocity~30%

High Velocity~30%

Flextronics Business Group

FY13E

• Fiscal 2012 Revenue: $10B, excluding ODM PC• Scale: Targeted solutions, backed by the whole Flex footprint• Capabilities: Services that create value• Customer Base: 50+ customers• Industry Ranking: #4…Market share is not the objective

• Fiscal 2012 Revenue: $10B, excluding ODM PC• Scale: Targeted solutions, backed by the whole Flex footprint• Capabilities: Services that create value• Customer Base: 50+ customers• Industry Ranking: #4…Market share is not the objective

HVS Segments - FY13EHVS Segments - FY13E

~50%

~23%

~27%

Consumer

Computing

Mobility

Integrated Network Solutions~45%

Integrated Network Solutions~45%

High Reliability

~10%

High Reliability

~10%

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Driving Positive Changes in Portfolio and Services

Significant Improvement, Especially Between FY12 and FY13Significant Improvement, Especially Between FY12 and FY13

90%

7%

3%0%

70%

15%

5% 10%

50%

25%

8%

17%

FY07 FY12 FY13E

Assembly Mechanical ServicesMultek/Power

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High Velocity Solutions Highlights FY12

$9,518 

$11,921  $11,564 

FY10 FY11 FY12 FY13E

(35)% – (40)%

FY11-FY12 -3% yoy growth

FY12 operating margins below expectations

Multiple new customers Wins

Efficient exit of ODM and reduction in RIM

We’ll grow 5-10% a year going forward

FY11-FY12 -3% yoy growth

FY12 operating margins below expectations

Multiple new customers Wins

Efficient exit of ODM and reduction in RIM

We’ll grow 5-10% a year going forward

Revenue Outlook ($M)Revenue Outlook ($M) Highlights FY12Highlights FY12

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HVS: A Broad Product PortfolioM

obileFixed

Computing Consumer

End Devices End Devices

Home Access

Gateway Equipment

Connectivity Devices

Cable Modem

Gateways

Ethernet Access Controller

Hotspot Femtocell

Set Top Box Wireless Router

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The HVS Market is Expanding & Evolving

Trends Driving HVS Outsourcing Emerging market growth

Speed to market

Pace of innovation

Big brands enter hardware

Product/market convergence

Key Supplier Selection CriteriaProduct launch services

Global management system

Early engineering support

After market services

Total cost optimization

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Going Beyond the Historical Customer

Heart rate monitors to increase from 11M to 17.7M

Sports technology to double from 3.5M to over 8+M

Other smart devices increasing from 1.3M to 20M+

Example- Wearable “smart” devices geared for growth 2011- 2015

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Full Service Offering Driving Speed to MarketCONCEPT DESIGN MANUFACTURING DELIVERY & REPAIR

SERVICES

Cus

tom

erFl

extr

onic

s H

VS

Unique Customized Service Solutions

Mechanical & Technology Services

& Solutions

Global Manufacturing Services

Pre-ManufacturingEngineering Services

Leveraging the Power of Flextronics

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We Become the Entire Supply Chain

Commodity Supplier

Low Cost Assembly(High volume low mix)

Early Engagement

Sustainable Capabilities

Value Added Services/Components

Customize to Unique Needs

Mar

gin

Value

Distribution & SMI

Technology Development

NPIServices

Engineering & Supply Chain Support

FLEX HVS

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Developing solutions as fast as they are necessary…

Innovative Mechanical and Technical Services

High Value Technical Support • Integrated mechanical solutions• Product design support • Assembly process technology

Addressing Critical Factors• Innovation creates new requirements• Early technology evaluation• Supporting consumer success

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Silicon Valley- Product Development and Launch Center

Pre-Manufacturing Engineering Services

Early Engagement Services• World class engineering• Optimizing NPI for manufacturing • Supply chain development

Addressing Critical Factors • Life cycles are shortening• Need for high secrecy• Efficient transition to manufacturing

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Product Completion Center- Example

2009 – Project starts

2010 – Excellent Serviceability Award received

2012- Zero defects in 18 months

2011 – Expand service scope to include all Products in Europe

2012 – Quality Award received for “Best In Class” Operations

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“Win with the winners” – focus on top tier and high potential customers

Leverage Flextronics’ overall capabilities and vertical offerings to create sustainable & predictable growth

Target customer opportunities with engineering support and service solutions which drive differentiated value

Exit non productive business and grow competence and credibility in new product and market areas

Our Strategy to WIN