Technology Sector Scorecard€¦ · PwC Technology Sector Scorecard 11 • Motorola Solutions...

Technology Sector Scorecard Second calendar quarter of 2011

www.pwc.com

PwC

Technology Sector Scorecard

2

Introduction

This quarterly global snapshot of activity in the technology sector highlights trends, business challenges and opportunities. In this edition we review Q2 2011. While tech companies performed well in Q2, the outlook for Q3 and beyond is less certain. Recently there has been a sharp increase in downward revisions made by tech companies during their mid-quarter updates. The debt crisis in Europe , political stalemate in the U.S., and increasing inflationary concerns in emerging markets have driven increased volatility in the capital markets. This has served to slow previously strong IPO and M&A activities. As always, I would like to acknowledge the efforts of Vaibhav Taneja, Deepak Agrawal, Dirk Tissera, Sameer Ladiwala, Steve Mack, Susan Ledezma and Vikram Khosla who contributed richly in pulling this report together. The observations are the individual views of the authors. Should you have questions or comments, please contact us. As a reminder, for a richer, interactive experience please visit the online tool: pwc.com/techscorecard and explore. Raman Chitkara Global Technology Leader

PwC


3

Contents

Executive summary

Snapshot by subsector

• Communications

• Consumer Electronics

• EMS/Distributors

• Semiconductors

• Software & Internet

• Systems and PC Hardware

• CleanTech

Methodology

4

8

9

18

28

35

46

55

64

70

PwC


4

Executive summary

PwC

Q2 2011 review


5

• Technology companies reported reasonable results with marginal growth in the quarter despite the global slowdown.

• Enterprise spending was strong while, as expected, government stimulus spending slowed.

• The European debt crisis, U.S. political stalemates, and growing inflationary pressures in emerging markets contributed to high volatility in capital markets thereby negatively impacting IPO and M&A markets in the current (third) quarter.

• Technology IPOs in the U.S. contributed $4.5 billion, or just fewer than 40% of aggregate IPO value with 11 transactions in the second quarter. A total of 82 technology M&A deals materialized with the maximum number of deals in the Internet sector (26) followed by the software sector (19). 1

• Outlook for Q3 is murky with a sharp increase in downward revisions made by several technology companies in their mid-quarter updates.

• The IMF has cut its forecast for U.S. 2011 growth to 1.6 percent from a 2.5 percent forecast made just two months ago. It lowered the outlook for 2012 to 2.0 percent from 2.7 percent, according to a draft of the IMF's World Economic Outlook. 2

Tech company earnings performed well M&A and IPO activity maintain strength

1. Pw C U.S. technology M&A insights, Q2 2011 updates 2. Reuters – August 29, 2011 (via ANSA, an Italian news agency)

PwC

Q2 2011 review


6

• The Conference Board Consumer Confidence Index, which had improved slightly in July, plummeted in August to 44.5 , down from 59.2 in July. The Present Situation Index decreased to 33.3 from 35.7, and the Expectations Index decreased to 51.9 from 74.9.

• The high level of optimism that prevailed in the tech sector at the beginning of 2011 seems to have dissipated over the summer. However, global IT services’ spending is still forecasted to reach $846 billion in 2011, a 6.6 percent increase from 2010, according to Gartner Inc. The computing and hardware segment is poised for the strongest growth with spending forecast to grow 11.7 percent in 2011.3

3 . Gartner press release, June 2011

U.S. Purchasing Manager’s Index (PMI) trends (2004-2011)

Source: ISM. IC insights

49

.4

49

.5

47

.3

32.5

36

.4

45

.3

60

.8

58

.6

56

.6

55

.3

53

.1

54

.3

56

.0

55

.1

53

.9

52

.6

51

.0

50

.8

52

.9

51

.0

51

.4

54

.6 58

.2

56

.2

54

.4

57

.0

61

.0

56

.4

30

35

40

45

50

55

60

65 2

Q0

4

3Q

04

4Q

04

1Q

05

2Q

05

3Q

05

4Q

05

1Q

06

2Q

06

3Q

06

4Q

06

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

Qu arter

Recession Threshold (42.7)

Returning to 2010 levels, the Purchasing Manager’s Index (PMI) pulled back in Q2 and has dropped further since June.

PwC


8


PwC


9

Snapshot by sub-sector

Communications

PwC


10

Market analysis Communications

• The worldwide sale of mobile devices to end-users was approximately 428.7 million units in the second quarter of 2011, a 16.5% increase from the second quarter of 2010. Sales of smartphones were up by 74% year-on-year and accounted for 25% of overall sales in the second quarter of 2011, up from 17% in the second quarter of 2010.1

• Nokia’s smartphones sales in the second quarter of 2011 were adversely impacted by a competitive market that negatively impacted the demand for Symbian and also due to inventory management issues in Europe and China. Distributors and operators bought less with a focus on reducing stock levels, partly by cutting prices of older products. These factors resulted in a reduction of Nokia's average selling price for smartphones, compared to the first quarter of 2011. 2

• Motorola Mobility and Google Inc. announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of approximately $12.5 billion, a premium of 63% on the closing price of Motorola Mobility shares at the date of announcement. The transaction has been unanimously approved by the board of directors of both companies. The acquisition would give Google access to the vast patent portfolio of Motorola Mobility, but also puts Google in competition with other mobile device manufacturers who use Android as their platform.

• Cisco continued to focus on its cost-cutting initiatives, which include headcount reductions, product design improvements, and R&D consolidation. Analysts believe these initiatives will help Cisco to compete aggressively without adversely impacting margins. 3

1. Gartner Press Release, August 2011 2. Gartner Press Release, August 2011 3. Oppenheimer, August 2011

PwC


11

• Motorola Solutions recorded a strong second quarter, based on which it has raised its full-year outlook. The company announced the initiation of a quarterly dividend and a share repurchase program as a part of a broader return of capital plan.

• Motorola Mobility shipped 11.0 million mobile devices in the second quarter of 2011, a 33% increase compared to shipments of 8.3 million mobile devices in the second quarter of 2010, and a 19% increase sequentially compared to shipments of 9.3 million mobile devices in the first quarter of 2011. The Company shipped 4.4 million smartphones and 440,000 Motorola XOOM tablets in Q2 2011.

• Nokia is accelerating its plans to reduce its Devices & Services operating expenses for the full-year 2013. This reduction is expected from a variety of different sources and initiatives, including a reduction in the number of employees, a reduction in the use of outsourced professionals, reductions in facility costs, and various improvements in efficiencies.

Market analysis (cont.) Communications

PwC


12

Communications Results for the first six months of 2011

Company Q2 2011

Revenue

($ millions)

Gross margin (%) Net income/(loss)

($ millions)

EPS ($) Market cap

($ millions)

Cisco Systems Inc 11,195 61.29% 1,232 0.22 87,838

Motorola Mobility

Holding Inc 3,337 25.89% (56) (0.19) 6,971

Motorola Solutions Inc 2,055 50.56% 349 1.00 15,954

Nokia Corp* 13,254 30.53% (703) (0.14) 24,709

*Euro to USD exchange rate used for Nokia is 1.429 USD/Euro.

Company Q1 2011

Revenue

($ millions)

Gross margin (%) Net income/(loss)

($ millions)

EPS ($) Market cap

($ millions)

Cisco Systems Inc. 10,866 61.28% 1,807 0.33 96,378

Motorola Mobility

Holding Inc . 3,032 24.90% (81) (0.27) 7,198

Motorola Solutions Inc. 1,884 50.00% 497 1.44 15,074

Nokia Corp* 14,746 29.56% 328 0.13 61,883

*Euro to USD exchange rate used for Nokia is 1.418 USD/Euro.

PwC


13

Quarterly results of operations analysis Q2 2011 Communications

Revenue and gross margin trends were as follows:

Revenues (in $ millions) – Communications

Gross margin % – Communications

• Cisco Systems’ revenue improved as book-to-bill, order growth, backlog, and deferred revenue all showed positive trends in this quarter while gross margin remained flat quarter over quarter.

• Motorola Mobility’s 28% year-on-year growth in revenue was primarily attributed to a 41% increase in revenue in the mobile services segment. This increase was due to an 8% increase in ASP and a 33% increase in unit shipments. The government sector of

Motorola Solutions contributed 64% of its revenue of $2,055 and the Enterprise segment made up for the remaining 36%. The increase in net sales in its business segments and a favorable product mix shift contributed to higher gross margins for Motorola

Mobility and Motorola Solutions.

• Nokia’s revenue declined by 10% due to lower volumes and ASPs of mobile phones and smart devices. The prime factors driving this

were the pressure from price aggressive competitors and strong momentum of competing smartphone platforms. Sequential increase in Nokia’s gross margin was driven by the recognition of approximately EUR 430 million royalty income.

0

4,000

8,000

12,000

16,000

20,000

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Cisco Systems Inc Motorola Mobility Holding Inc*

Motorola Solutions Inc* Nokia Corp

0%

20%

40%

60%

80%

100%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



* Pr ior quarter financials (Q2 2010 – Q4 2010) for Motorola Mobility and Motorola Solutions are as per the 10K filed last quarter. The sharp variance in the revenues for Motorola Solutions is because Motorola Solutions’ prior quarter financials include Motorola Mobility’s results as ―discontinued operat ions‖.

PwC


14

Quarterly results of operations analysis – Q2 2011 (cont.) Communications

R&D expenditure trends were as follows:

R&D expenses (in $ millions) – Communications

R&D expenses (% of revenue) – Communications

• R&D expenses for Motorola Mobility increased for both its business segments: Mobile Services and Home.

• Motorola Solutions’ R&D expenses increased for its Enterprise segment which was primarily due to higher developmental engineering expenditures for new product development, investment in next generation technologies, and increased employee benefit-related expenses.

• Nokia’s R&D expenditure declined quarter over quarter due to focus on priority projects and cost controls.

• R&D as a percentage of revenue was in line with the prior quarters for communications companies except for Nokia, which registered a marginal increase.

* Pr ior quarter financials (Q2 2010 – Q4 2010) for Motorola Mobility and Motorola Solutions are as per the 10K filed last quarter. The sharp variance in R&D expenses for Motorola Solutions is because Motorola Solutions’ prior quarter financials include Motorola Mobility’s results as ―discontinued operat ions‖.

0

500

1,000

1,500

2,000

2,500

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



0%

4%

8%

12%

16%

20%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



PwC


15


Net income trends were as follows:

Net income (in $ millions) – Communications

• Net income for Motorola Mobility was $(56) million as compared to $80 million in the same quarter last year. This was primarily due to the absence of a $228 million gain related to a legal settlement in 2010 and a $71 million increase in SG&A which was partially offset by a $200 million increase in gross profit.

• Net income for Motorola Solutions increased from $162 million in Q2 2010 to $349 million in the current quarter. The increase was driven by a $74 million increase in gross profit, $105 million decrease in income tax expense, and a pre-tax gain on the sale of the network business (which is now sold).

• Nokia’s net income declined significantly in this quarter due to lower ASPs. Cisco registered a 31.8% decline in net income due to higher operating expenditures.

* Pr ior quarter financials (Q2 2010 – Q4 2010) for Motorola Mobility and Motorola Solutions are as per the 10K filed last quarter. The sharp variance in Net Income for Motorola Solutions is because Motorola Solutions’ prior quarter financials include Motorola Mobility’s results as ―discontinued operat ions‖.

-1,000

-500

0

500

1,000

1,500

2,000

2,500

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Cisco Systems Inc Motorola Mobility Holding Inc* Motorola Solutions Inc* Nokia Corp

PwC


16


Inventory and receivables trends were as follows:

Days inventory on hand – Communications

Days sales in receivables– Communications

• Motorola Mobility saw a decrease in net inventory in both business segments, leading to a decline in its days inventory on hand. Inventory reserves decreased by $120 million in the first half of 2011, primarily due to scrapping of excess and obsolete inventory. Inventory was in line with prior quarters for Motorola Solutions but days inventory declined due to an increase in cost of goods sold. Nokia’s days inventory on hand increased sequentially since inventories were slightly above normal levels as distributors and operators purchased fewer devices in this quarter.

• Receivables increased for Motorola Mobility from $1.6 billion at the end of 2010 to $1.8 billion in the current quarter.

• Recievables for Motorola Solutions were at the same level as in December 2010.

0.00

15.00

30.00

45.00

60.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



0.00

20.00

40.00

60.00

80.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



* Pr ior quarters’ inventory and receivables data for Motorola Mobility and Motorola Solutions are not available. The sharp variance in receivable and inventory for Motorola Solutions is because Motorola Solutions’ prior quarter financials include Motorola Mobility results as ―discontinued operations‖

PwC


17

Quarterly results of operations analysis – Q2 2011 (cont.) Communications EPS (earnings per share) and P/E trends were as follows:

EPS ($) – Communications

P/E – Communications

• P/E showed a negative trend, in line with the overall U.S. market sentiment. Lower growth in overall economy has dampened investors’ mood for communications stock.

• The drop in Nokia was largely due to declining market share and delayed implementation of the Windows platform.

• Cisco had a stable price-earning multiple quarter-on-quarter.

• Motorola Solutions has shown improved performance in this quarter, but investors are still apprehensive about a quick turnaround and have less clarity on the long-term plan of the company.

• Motorola Mobility has not been included in the P/E chart as it is not materially relevant (negative EPS leading to negative P/E).

-0.50

0.00

0.50

1.00

1.50

2.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



* Pr ior quarter financials (Q2 2010 – Q4 2010) for Motorola Mobility and Motorola Solutions are as per the 10K filed last quarter. The sharp variance in EPS for Motorola Solutions is because Motorola Solutions’ prior quarter financials include Motorola Mobility results as ―discontinued operations‖. Share prices are not available for Motorola Solutions and Motorola Mobility prior to Q4 2010.

0.00

10.00

20.00

30.00

40.00

50.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



PwC


18


Consumer Electronics

PwC


19

Market analysis Consumer Electronics

• Consumer Electronics companies seemed to have recovered from the impact of the Japan earthquake with improved production facilities and earnings slowly moving to the levels of same period last year.

• Apple introduced three new software products in June 2011: iCloud, its new cloud service which stores music, photos, apps, contacts, calendars, and documents and pushes them to multiple iOS devices, Mac and PCs. The company also previewed iOS 5, the latest mobile operating system and announced Mac OS X Lion, the eighth major release of the company’s Mac operating system.

• Canon swiftly launched recovery and restoration measures following the earthquake, realizing a recovery in parts procurement and rebuilding production systems ahead of initial forecasts. Plant operating rates have normalized a month in advance and Canon’s management trimmed its estimate of the quake’s impact on profit by ¥75.2 billion ($922 million) 1 .

• Philips announced a EUR 2 billion share buyback program to be completed by mid-2012. Some analysts are of the opinion that Philips should have invested this amount in R&D and marketing efforts to address the brand erosion and weak consumer environment engulfing the Consumer Lifestyle sector2.

• Sony announced management changes centering on its TV business. The company is looking to bring the PC business and TV business closer in terms of organization. Additionally analysts expect materials sourcing, inventory management and pricing strategy will also change ahead3.

1 . Morgan Stanley MUFG, July 25, 2011 2 . HSBC Global Research, July 19, 2011 3 Morgan Stanley MUFG, July 25, 2011

PwC


20

• With the huge success of iPad tablets, Gartner predicts that by 2016, 50 percent of all major marketing automation vendors will develop applications specifically for Apple’s ipad1

• Market Cap at the end of the quarter declined for Apple after recording strong growth over the past many quarters. Philips and Sony also had lower market caps while Canon and Toshiba saw an increase.

Market analysis (cont.) Consumer Electronics

1. Gartner Press Release, June 23, 2011

PwC


21

Consumer Electronics Results for the first six months of 2011

Company Q2 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS Market cap

($ millions)

Apple Inc 28,571 41.73% 7,308 7.79 307,769

Canon Inc 10,328 50.03% 665 0.54 57,849

Philips* 7,496 39.19% (1,933) (2.00) 24,710

Sony Corp 18,456 34.88% (191) (0.19) 26,484

Toshiba Corporation 16,372 23.44% 5,802 - 22,361

*Euro to USD exchange rate used for Philips is 1.438 USD/Euro.

PwC


22

Consumer Electronics Results for the first three months of 2011

Company Q1 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS Market cap

($ millions)

Apple Inc 24,667 41.42% 5,987 6.40 324,043

Canon Inc 10,111 48.41% 668 0.54 53,254

Philips* 7,186 40.42% 187 0.19 30,477

Sony Corp 19,046 30.28% (4,684 ) (4.67) 31,944

Toshiba Corporation 20,830 23.51% 1,177 0.28 20,921

*Euro to USD exchange rate used for Philips is 1.367 USD/Euro.

PwC


23

Quarterly results of operations analysis Q1 2011 Consumer Electronics


Revenues (in $ millions) – Consumer Electronics

Gross margin % – Consumer Electronics

• Revenue for consumer electronics companies showed a mixed trend in the second quarter. Apple continued its positive revenue g rowth

registering 16% quarterly growth and 82% annual growth. The company also registered annual growth of 150%, 179% and 16% in th e

revenue generated by the sales of iPhones, iPads and Mac respectively. Canon’s revenues were down compared to the same period last

y ear primarily due to the appreciation of y en; reduction in sales of compact digital cameras and digital network MFDs due to supply

shortages of components post the earthquake; and decreased sales of LCD lithography equipment because of a sluggish market. Philips’

revenue increased 4% quarterly driven by strong growth in Healthcare (8%) and moderate growth in Lighting (4%). Revenue for Sony

declined primarily due to decreases in sales in the Consumer Products & Serv ices and Professional Device & Solutions segments , which

were mainly affected by the negative impact of the Japan earthquake, deterioration of the electronics business environment, a nd

unfavorable exchange rates. Toshiba’s lower revenues were also a result of the earthquake and y en appreciation.

• Gross margins improved for consumer electronics companies except for Philips and Toshiba which had marginal declines compared to the

previous quarter. Apple’s 2.6% annual increase in gross margin was largely driven by a more favorable sales mix towards produ cts with

higher gross margin, primarily iPhones; weaker U.S. dollar and lower commodity and other manufacturing costs. Canon’s ongoing cost

cutting efforts led to the increase in its gross margin. Gross margin also improved marginally for Philips, Sony and Toshiba on an annual

basis.

0

5,000

10,000

15,000

20,000

25,000

30,000

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc

Philips Sony Corp

Toshiba Corporation

0%

20%

40%

60%

80%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc

Philips Sony Corp

Toshiba Corporation

PwC


24

Quarterly results of operations analysis Q1 2011 (cont.) Consumer Electronics


R&D expenses (in $ millions) – Consumer Electronics*

*Sony and Toshiba do not report R&D expense separately in public filings.

R&D expenses (% of revenue) – Consumer Electronics

• Research & Development expenses increased for Consumer Electronics companies both on a quarterly and annual basis. Apple’s R&D expenses increased $164 million or 35% as compared to the same period in the previous year due to an increase in headcount and related expenses to support expanded R&D activities.

• R&D as a percentage of revenue was in line with the prior quarters for all three companies. Apple had a marginal annual decline of 0.8% despite the increase in R&D expenses as the increase in revenue growth was significant at 82%. Canon had a marginal annual increase and Philips’ R&D as a percentage of revenue declined by 10 basis points from the previous quarter.

0

200

400

600

800

1,000

1,200

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc Philips

0%

3%

6%

9%

12%

15%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc Philips

PwC


25



Net income (in $ millions) – Consumer Electronics

• Net income for all the consumer electronics companies in the analysis showed considerable movements in the current quarter. Apple’s net income more than doubled on an annual basis primarily due to higher revenues and higher gross profit offset by slower growth in operating expenses. Canon’s net income was almost consistent with the prior quarter but fell by 15% on an annual basis due to lower revenues.

• Philips registered a year on year loss of approximately $2500 million primarily attributed to goodwill and intangible-asset impairments of $1900 million. Lower operating income and a loss in discontinued operations further contributed to the decline. Net income for Sony improved on a quarterly basis but remained in a loss position at $(191) million. Also Sony’s net income declined year on year due to the negative impact of the Japan earthquake and deterioration of its electronics business. Toshiba’s net income at constant currency was in line with the same period last year as the company minimized the impact of the earthquake.

-5000

-2500

0

2500

5000

7500

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc Philips Sony Corp Toshiba Corporation

PwC


26



Days inventory on hand – Consumer Electronics

Days sales in receivables – Consumer Electronics

• Days inventory on hand increased for all the companies in the analysis except for Apple. Philips recorded higher inventories due to lower than expected sales. Sony’s inventory days were up as TV inventories, in particular, were high.

• Days sales in receivables (DSO) was marginally down sequentially for consumer electronics companies except for Toshiba. Toshiba recorded the highest change in receivable days from 59 days in the previous quarter to 68 days in the current quarter.

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc

Philips Sony Corp

Toshiba Corporation

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc

Philips Sony Corp

Toshiba Corporation

PwC


27


EPS and P/E trends were as follows:

EPS – Consumer Electronics

P/E – Consumer Electronics

• EPS showed a positive sequential trend for consumer electronics companies except for Philips and Toshiba. Philips’s lower earnings were attributed to lower earnings in Lighting and Consumer Lifestyle segments.

• P/E multiple for consumer electronic companies dropped down, due to the adverse impact of the Japan earthquake on demand, which is taking more time than expected to recover to normal levels. The lower multiple was also supported by a negative view on the U.S. economy, which is expected by some analysts to go into a double dip recession. U.S. contributes a major portion of revenue for the consumer electronics companies analyzed. The debt crisis in Europe has impacted the overall market sentiments for European companies like Philips, leading to a lower P/E vis-a-vis other technology companies. The only exception to this is Apple Inc., which is leading the technology sector with higher demand for all its newly launched products.

-5.00

-2.50

0.00

2.50

5.00

7.50

10.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc Philips Sony Corp Toshiba Corporation

0.00

8.00

16.00

24.00

32.00

40.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Apple Inc Canon Inc

Philips Sony Corp

Toshiba Corporation

PwC


28


EMS/Distributors

PwC


29

Market analysis EMS/Distributors

• According to IDC research, the EMS sector generated revenue of $233 billion globally in 2009 and is projected to grow to $400 billion by 2014, charting a robust CAGR of 11.4%. Though the disaster in Japan has negatively impacted business in the short term for some of the EMS companies, it is believed that the rebuilding cycle in Japan will bring back demand by the second half of 2011.1

• The long-term viability of the EMS sector has been strengthened owing to the transformation of the companies from just being assembly houses to expanding into product design and distribution, and even into long-term warranty services.2

• In the June quarter of 2011, Arrow Electronics’ operating margin touched 4.5%, which was the highest since 2007 and three times the margin in 2009. One of Arrow’s key strengths is its low customer concentration, with no customer accounting for more than 3% of its revenue share.3

• Avnet Inc. acquired the France-based Amosdec in July 2011 (subsequent to FY 2011) to increase its presence in the European market. It had also acquired an Australian distribution company, ITX Group Limited, for $79.1 million in January 2011, which has led to significant expansion of services in the Australian region.4

• Flextronics Ltd. performed strongly in the first quarter owing to improvement in demand resulting in growth in all its business divisions. The company expects its second quarter revenues to be between $7.6 billion and $8.0 billion.5

1. Yahoo Finance, June 2011 2. Yahoo Finance, June 2011 3. Mor ningstar Research, June 2011

4. Financial tech Spotlight, Jan 2011; Channelbuss.com, Aug 2011

5. Ottawa Business Journal, July 2011

PwC


30

EMS/Distributors Results for the first six months of 2011

Company Q2 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS($) Market cap

($ millions)

Arrow Electronics Inc. 5,540 13.90% 156 1.33 5,252

Avnet Inc. 6,912 11.93% 239 1.54 4,975

Flextronics International

Ltd. 7,548 5.30% 132 0.17 4,823

Company Q1 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS($) Market cap

($ millions)

Arrow Electronics Inc. 5,223 13.83% 136 1.16 4,862

Avnet Inc. 6,672 11.79% 151 0.98 5,201

Flextronics International

Ltd. 6,859 5.58% 135 0.17 5,797

PwC


31

Quarterly results of operations analysis Q2 2011 EMS/Distributors


Revenues (in $ millions) – EMS/Distributors

Gross margin % – EMS/Distributors

• Compared with last quarter, revenues for Flextronics grew by 10.0% while Arrow and Avnet grew at a much lower rate of 6.1% an d 3.6%

respectively. When compared with the same quarter last year, all three companies benefitted from an improved macroeconomic

environment and Arrow and Avnet from acquisitions as well. Arrow’s revenue grew by 20.1%, with an 18.9% increase in the globa l

components business and a 22.9% increase in global ECS business. Avnet recorded a 32.6% y ear-on-year growth in revenue, primarily as a

result of the improved revenue growth from the Electronics Marketing division of 26.8% and Technology Solutions division of 4 1.2%.

Flextronics’ sales grew by 15.0% over the same quarter last year.

• Arrow Electronics’ gross margin increased 7 basis points (bps) from the prior quarter and 115 bps versus the same quarter las t year.

Improved pricing, a favorable mix of higher profit margin products in both the global components and global ECS businesses, a long with

higher margins attributable to acquisitions drove up margins. Gross margin for Avnet increased by 17 bps versus prior quarter and the

second quarter in a row owing to the positive impact of Value Based Management discipline applied to the newly acquired busin esses,

coupled with improved business condition in the western regions but was still lower by 43 bps versus the same quarter last ye ar. A higher

mix of low-margin products brought down gross margin for Flextronics by 28 bps against prior quarter and by 35 bps versus the sa me

quarter last y ear.

0

2,000

4,000

6,000

8,000

10,000

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Arrow Electronics Inc

Avnet Inc

Flextronics International Limited

0%

5%

10%

15%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


Avnet Inc


PwC


32

Quarterly results of operations analysis Q2 2011 (cont.) EMS/Distributors


Net income (in $ millions) – EMS/Distributors

• Net income for Arrow and Avnet increased by 14.6% and 58.1% respectively compared with the last quarter, while Flextronics’ net income declined by 2.5% during the same period. However, all three companies witnessed a steady increase in net income when compared with the same quarter last year. Arrow’s net income rose by 34.4% as a result of an increase in sales in the global components business segment and global ECS business segment, coupled with higher gross profit margins. Avnet’s net income grew fastest among the other companies at a rate of 69.2% versus same quarter last year. The growth was driven by a robust rise of 32.6% in sales as a result of increased revenues from the Electronics Marketing and Technology Solutions divisions. An improved macroeconomic environment drove up sales by 15.0%, which led to a rise of 11.7% in Flextronics’ net income.

0

50

100

150

200

250

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Arrow Electronics Inc Avnet Inc Flextronics International Limited

PwC


33



Days inventory on hand – EMS/Distributors

Days sales in receivables – EMS/Distributors

• Days inventory on hand for Arrow Inc. increased from 41 to 42 days and decreased for Flextronics from 49 to 47 days, while remaining unchanged for Avnet at 38 days. When compared with the same quarter last year, the highest increase in days inventory on hand was for Arrow and Avnet—both by two days, while Flextronics showed a contraction by one day in the current quarter.

• Days sales in receivables (DSO) remained stable for Arrow and Flextronics when compared with last quarter. However, Flextronics’ sales increased at a lower rate than receivables. Avnet’s DSO marginally decreased from 63 days in previous quarter to 62 days in the current quarter, owing to higher growth in sales compared to receivables.

0

15

30

45

60

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


Avnet Inc


0

20

40

60

80

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


Avnet Inc


PwC


34


Earnings per share (EPS) and market capitalization trends were as follows:

EPS($) – EMS/Distributors

Market cap (in $ millions) – EMS/Distributors

• EPS showed a mixed trend for EMS companies, with Avnet’s EPS rising by 57.1% to $1.54 against prior quarter, while Arrow Electronics marked growth in EPS by a modest 14.7% to $1.33. Flextronics’ EPS remained stable at $0.17 when compared to the previous quarter, while there was a strong growth of 21.4% when compared to same quarter last year.

• Market cap increased by 8.0% for Arrow while it declined by 4.4% and 16.8% for Avnet and Flextronics respectively. The change can be attributed to movement in their respective share prices.

0.00

0.50

1.00

1.50

2.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


Avnet Inc


0

1,500

3,000

4,500

6,000

7,500

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


Avnet Inc


PwC


35


Semiconductors

PwC


36

Market analysis Semiconductors

• Worldwide semiconductor Three Months Moving Average (3MMA) sales for Q2 2011 reached $24.7 billion, a 1.5% decrease from last month’s 3MMA of $25 billion in May. Sales in Q2 2011 were down by 2% compared with Q1 2011. Despite the decrease in sales of the latest quarter, sales grew by 3.7% for the first half 2011 year on year. Gains in corporate PC demand, smartphone demand and the subsequent increased investment in IT infrastructure as well as growing markets in China were offset by slower consumer demand in June sales.1

• The major trend going forward in the semiconductor industry will be Micro-electro-mechanical systems (MEMS) which are advanced sensor chips, expected to enter a strong growth phase driven by new applications where their superior performance, lower cost and improved integrity will gradually replace many existing products in the Consumer, Automotive and Healthcare markets. MEMS are used primarily as motion sensors in smartphones and tablets and in the Automotive sector. In the Consumer sector, growth will be fuelled not just by increasing smartphone and tablet sales but also by increasing MEMS content per device due to size, performance, power, and cost advantages. Automotive MEMS is expected to grow by 7% a year. 2

• World GDP is forecasted to grow 3.3% in 2011, and world electronic system production is expected to be 2.2% of world GDP. This indicates a scope of expansion of worldwide electronics sales, with energy and medical electronics leading the growth in the next decade. The worldwide semiconductor industry is forecasted to be 25% of electronic system production, indicating a nominal growth in semiconductor sales. 3

1 . Semiconductor Industry Association July, 2011 2 .Analysts notes (Morgan Stanley, Credit Suisse) 3 .McClean Mid-year Report

PwC


37

Market analysis (cont.) Semiconductors

• Intel Corporation reported double-digit revenue growth year-on-year due to the impact of the McAfee and Infineon Wireless Solutions (now Intel Mobile Communications) acquisitions. Combined, these contributed $1.0 billion in revenue in Q2 2011. Intel is better positioned to take advantage of non-traditional markets, especially servers and tablets and, to a lesser degree, smartphones. Intel's server business is expected to grow at a CAGR of 10-12%.

• Applied Materials delivered near to expected third quarter results, with earnings and revenue at the upper end of expectations. While the fundamental drivers of the market remain strong, the company is negatively impacted by the softness in business resulting from the uncertain economic environment and overcapacity in solar.

• TSMC has reported lower than expected results, largely due to margin hits impacted by inventory correction and aggressive capacity build-up by the company in previous quarters. The results are expected to improve driven by increased foundry demand. A faster migration to the 28nm process will lead to margin improvements. The demand drivers would be from smartphone growth in emerging markets, Android second generation tablets, ultra-books and Windows 8 later in the year.

• Texas Instruments (TI) reaped benefits from continued success in Analog and Embedded Processing. In this quarter, TI also resumed production ahead of schedule in Japanese factories that had been damaged in the earthquake. TI's pending acquisition of National Semiconductor has been cleared of all antitrust reviews except for China, which is underway. The company expects the transaction to close before the end of the year.

PwC


38

Market analysis (cont.) Semiconductors

• Qualcomm’s performance in calendar Q2 2011 (Qualcomm’s Q3 2011) was driven by the licensing business and robust smartphone/tablet growth. In addition, the chipset business is also well-positioned for further WCDMA chipset share gains. Potential shipments to either RIM – (for snapdragons into the new BB7 phones which RIM made available in September) – or Apple – (for basebands in the next iPhones launch), would lead to potential revenue upside in H2 2011.

• Qualcomm acquired Atheros Communications, Inc., which was renamed Qualcomm Atheros, Inc. (Atheros), for total cash consideration of $3.1 billion (net of $233 million cash acquired) and in exchange of vested and earned unvested share-based payment awards at an estimated fair value of $106 million. Atheros sold communication chipsets to manufacturers of networking, computing, and consumer electronics products.

PwC


39

Semiconductors Results for the Second quarter of 2011

Company Q2 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS ($) Market cap

($ millions)

Intel 13,032 60.64% 2,954 0.54 118,384

Applied Materials 2,787 42.48% 476 0.36 14,972

Texas Instruments 3,458 50.69% 672 0.56 58,343

TSMC 3,829 46.02% 1,248 0.05 64,084

Qualcomm Inc 3,623 64.73% 1,035 0.61 91,816

Company Q1 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS ($) Market cap

($ millions)

Intel 12,847 61.38% 3,160 0.56 107,513

Applied Materials 2,862 41.54% 489 0.37 20,711

Texas Instruments 3,392 50.94% 666 0.56 40,332

TSMC 3,597 49.04% 1,243 0.05 67,122

Qualcomm Inc 3,875 64.83% 995 0.60 87,249

PwC


40

Three Months’ Moving Average Sales – Geographic Segmentation

-9.00%

-8.00%

-7.00%

-6.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

0

2

4

6

8

10

12

14

16

Americas Europe Japan Asia Pacific

Jan /Feb / Mar ($ bn) Apr /May / June ($ bn) % Change (RHS)

• The 3MMA revenue for Q2 2011 vis-a-vis Q1 2010 for all the geographies decreased marginally, with the exception of a slight growth in Asia Pacific. This indicates a far from recovered global economy and has led to downward revision of forecasted semiconductor revenue growth. The semiconductor market is now forecasted to grow by 5%, down from a forecast of 10% growth at the beginning of 2011. The 3MMA revenue for Japan decreased by 8.3%, which indicates that Japan needs more time to recover and neutralize the impact of the natural disaster. 1

1. Semiconductor Industry Association July 2011

Geographic revenue (in $ billions) and % growth – Semiconductors

Geographic revenue analysis Q2 2011 Semiconductors

PwC


41

Quarterly results of operations analysisQ2 2011 Semiconductors Revenue and gross margin trends were as follows:

Revenues (in $ millions) – Semiconductors

Gross margin % – Semiconductors

• All the companies reported double digit revenue growth year-on-year except for Texas Instruments. Intel Corporation reported a revenue of $13.0 billion, a 1.4% increase quarter-on-quarter (q-o-q) buoyed by strong corporate demand for advanced technology, the surge of mobile devices and

Internet traffic fueling data center growth, and the rapid increase of computing in emerging markets. Applied Materials’ revenue dropped marginally (2.6%) q-o-q, due to the lack of demand in Display orders, primarily due to reduced demand from LCD TV customers. Texas Instruments (TI) announced a second quarter revenue of $3.5 billion, a 2% increase q-o-q. This was driven by continued success in Analog (up 3%) and Embedded Processing (up 12%) but was negatively impacted by lower shipments to a single large wireless customer. TSMC reported revenue of $3.8 billion, a 6.4% increase q-o-q. The growth was less than expected due to lower developed market demand and inventory reduction

by customers. Qualcomm reported revenue of $3.6 billion, in line with consensus estimates and attributed to positive demand trends for chips. However, licensing revenues came down sharply by 28% q-o-q, leading to an overall drop in revenue of 6.5% q-o-q.

• Gross margins (GM) were relatively flat q-o-q for most companies except for TSMC. Intel’s GM of 60.6% was down by 80bps q -o-q, led by higher

22nm start-up costs and higher unit cost. Applied Materials’ GM was 42.5%, up from 41.5% in the second quarter. Texas Instrument s GM decreased by 20bps q-o-q, primarily due to a $50 million charge related to factory damage from the Japan earthquake. TSMC’s GM dropped by 3.2% q-o-q, due to inventory depletion. Qualcomm’s gross margin was stable at 64.7% supported by improved chip margins.

0%

20%

40%

60%

80%

100%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Intel Applied Materials

Texas Instruments TSMC

Qualcomm

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



Qualcomm

PwC


42

Quarterly results of operations analysis Q2 2011 (cont.) Semiconductors


R&D expenses (in $ millions) – Semiconductors

R&D expenses (% of revenue) – Semiconductors

• R&D expenses increased for all companies, with TSMC registering the largest sequential growth of 8%. Intel’s R&D increased by 365bps sequentially. Qualcomm’s 2.3% higher R&D expenditure was primarily due to the acquisition of Atheros. TI had flat R&D expenditure, in line with weak revenue expectation. The R&D expenditure of Applied Materials decreased by 5% quarter on quarter.

• R&D as a percentage of sales was relatively stable with an upward bias for all companies except TI and Applied Materials, which witnessed marginal declines.

0

400

800

1,200

1,600

2,000

2,400

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



Qualcomm

0%

10%

20%

30%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



Qualcomm

PwC


43

Quarterly results of operations analysis Q2 2011 (cont.) Semiconductors Net income trends were as follows:

Net income (in $ millions) – Semiconductors

• Intel’s net income dropped by 6.5% quarter on quarter due to a drop in gross margins impacted by product mix and ASPs. Higher R&D, amortization, and MG&A also negatively impacted the net income. Lower than expected tax rate partially offset the effect of increased costs.

• Applied Materials’ net income decreased by 2.7% quarter on quarter. The near-term economic conditions have led to lower sales, which has adversely impacted the net income.

• TI reported a flat net income sequentially, but decreased 12.6% year-on-year. Net income was adversely affected by a $50 million charge associated with the impact of the Japanese earthquake and another $13 million acquisition cost. Interest expenses which were incurred to finance the National Semiconductor acquisition also led to lower growth in net income.

• TSMC had flat net income, with a nominal growth of 40bps quarter on quarter due to lower gross margins and also the lack of demand from developed market.

• The net income of Qualcomm grew 4% quarter on quarter due to higher sales of MSM integrated circuits. Atheros Communication which was acquired by Qualcomm also contributed to net income. Results reflect FLO TV operation as discontinued business, and its contribution is included in net income.

-1,000

0

1,000

2,000

3,000

4,000

Q1 2010 Q2 2010 Q3 2010 Q1 2011 Q2 2011

Intel Applied Materials Texas Instruments TSMC Qualcomm

PwC


44

Quarterly results of operations analysis Q2 2011 (cont.) Semiconductors


Days inventory on hand – Semiconductors

Days sales in receivables – Semiconductors

• Days inventory on hand (DOI) for Intel decreased by 3 days due to higher demand for Sandy Bridge and increased emerging market demands for PCs. Applied Materials’ DOI increased by 7 days due to lower-end demand. TI’s DOI increased by 2 days due to intentional inventory build-up to meet the demands from Nokia. Also management wanted to ensure materials flow is not hindered by the impact of the natural disaster in Japan which led to disruption in production. The DOI increased by 14 days quarter on quarter for Qualcomm, primarily due to the addition of inventories from the acquisition of Atheros, and an increase in finished goods related to the timing of inventory builds and changes in product mix.

• Intel’s, Applied Materials’ and TSMC’s Days sales in receivable (DSO) decreased by 6.5%, 3% and 5% quarter on quarter, respectively due to lower accounts receivable sequentially. DSO increased for TI by 2 days quarter on quarter due to higher receivables from calculators and seasonally higher revenue. Qualcomm’s DSO increased by 3 days, primarily due to the increase in accounts receivable relating to Atheros.

0

20

40

60

80

100

120

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



Qualcomm

0

10

20

30

40

50

60

70

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



Qualcomm

PwC


45

Quarterly results of operations analysis Q2 2011 (cont.) Semiconductors Earnings per share (EPS) trends were as follows:

EPS ($)– Semiconductors Price earning ratio - Semiconductors

• Intel’s EPS dropped from 56 cents to 54 cents sequentially, a decrease of 3.6%. This was due to higher operating expenses and capex and

lower gross margins. Repurchase of common stock for $2.0 billion prevented the EPS from dropping further. Applied Materials’ EPS

decreased modestly quarter-over-quarter by ~3%, in spite of lower revenues, supported by stock buyback of $25 million. TI’s EPS went

down by ~10% y ear on y ear to 56 cents, primarily due to one -time charges related to factory restructuring post the Japan earthquake, but

it was flat quarter on quarter due to improved margins and better demand for Embedded and other segments. TSMC ’s EPS was fla t

quarter on quarter as it performed in line without any positive surprise. The diluted EPS for Qualcomm also increased from 59 cents to 61

cents quarter on quarter and a 7 % rise y ear on y ear. It was mainly driven by better product mix leading to increased average ASPs and

market share gains in WCDMA chipsets.

• All the companies tracked in this sector are currently trading in line compared to the semiconductor industry average P/E of 11 .9x*. Intel

and TSMC are trading at a significantly lower P/E multiple, of 10.3x and 12.1x, respectively, compared year on y ear, due to a lack of

positive earning surprises in calendar Q2 2011 results, leading to lack of investor interest. Applied Materials’ PE dropped s harply from

13.2x to 7 .8x, due to lower revenue and EPS guidance for H2 2011.Qualcomm has kept up to its trends and had a sharp uptick in its P/E

multiple of 21 .1x, due to the better demand for its products and a positive market share scenario. TI’s P/E of 12.8 x was more in line with its

long-term averages.

-0.50

-0.25

0.00

0.25

0.50

0.75

1.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



Qualcomm

Company Update, * In dustry Average PE – Capital IQ.

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011



Qualcomm

PwC


46


Software & Internet

PwC


47

• Worldwide software as a service (SaaS) revenue is forecast to reach $12.1 billion in 2011, a 20.7 % increase from 2010 revenue of $10 billion. The SaaS-based delivery is expected to experience healthy growth through 2015, when worldwide revenue is projected to reach $21.3 billion.1

• Worldwide enterprise software revenue is on pace to surpass $267 billion in 2011, a 9.5 % increase from 2010 revenue of $244 billion. The enterprise software market is projected for continued growth in 2012, with revenue forecast to reach $288 billion.2

• Google Inc.’s new product cycle with Google+ (social), Offers (local), and Android (mobile) could provide substantial growth in the coming years, while search ad quality and algorithm improvements continue to optimize the company's $37 billion advertising engine. 3

• Amazon’s 2Q’11 results reflected extremely strong sales trends, which were offset by rapidly escalating operating expenses as the company continued its pattern of investing heavily. Analysts believe that Amazon’s tablet computer should provide an additional lift to fourth quarter sales, but will also likely result in an incremental increase in marketing expense. 4

• eBay expects operating results in the third quarter of 2011 to be led by continued strength in their Payments business, which will be driven by growth in net TPV as they execute against long-term growth strategies and priorities. eBay expects continued strength in their Marketplaces business, particularly in the U.S. and also expects the acquisition of GSI to significantly contribute to revenue growth. eBay will continue to invest in growth, focus on accelerating innovation, and make strategic acquisitions.

Market analysis Software & Internet

1 . Gartner Press Release , July 2011 2 . Gartner Press Release , June 2011 3 . Susquehanna Financial Group , July 2011 4 . Mc Adams Wright Ragen

PwC


48

• Microsoft’s Windows revenue was negatively affected this quarter by weakness in the consumer PC market. Microsoft guidance on Windows revenue for Q1’12 and FY12 suggests it will follow dynamics similar to Q4’11, with flattish ASPs as business PC sales outpace consumer PC sales, offset by emerging market growth outpacing the developed market. Analysts believe that the upcoming launch of Windows 8 represents a positive catalyst for the overall PC market .1

• Yahoo’s U.S. display underperformance was the key reason for another weak quarter. Analysts believe that as consumers are accessing the Internet more and more through smartphones and tablets, Yahoo is losing mindshare and relevance. 2

• Symantec reported a strong quarter driven by robust demand for its products and improved execution across products and geographies. 3 Symantec will continue to capitalize on new growth opportunities in cloud, mobile and virtualization to deliver new solutions to help both consumers and enterprises securely access and use information across multiple devices and platforms.

• SAP’s license revenue continued to rebound during this quarter driven by pent-up demand in large enterprises; strength in the U.S., Latin America, and Asia Pacific; continued demand for Business Objects tools; the return of larger deals in enterprise applications and the rebound in IT spending in the manufacturing vertical. 4Analysts believe demand for HANA, Mobile, and Cloud offerings will be the significant growth driver in 2012- 2013. 5

Market analysis (cont.) Software & Internet

1 . Morgan Stanley , July 2011 2 . Macquarie Equities Research, July 2011 3 . Macquarie Equities Research , July 2011 4 . Credit Suisse , July 2011 5 . J.P. Morgan , July 2011

PwC


49

Software & Internet Results for the first six months of 2011

Company Q2 2011

Revenue

($million)

Gross

margin (%)

Net Income/(Loss)

($million)

EPS Market cap

($ million)

Amazon 9,913 24.09% 191 0.41 92,838

eBay 2,760 71.98% 283 0.22 41,577

Google 9,026 64.86% 2,505 7.68 163,393

Microsoft 17,367 78.65% 5,874 0.69 217,776

Oracle 10,774 79.89% 3,209 0.62 173,427

SAP* 4,745 68.09% 844 0.70 72,152

Symantec 1,653 84.33% 172 0.22 14,982

Yahoo! 1,229 69.80% 237 0.18 19,278

*Euro to USD Exchange rate used for SAP is 1.438 USD/Euro

PwC


50

Software & Internet Results for the first six months of 2011

Company Q1 2011

Revenue

($million)

Gross

margin (%)

Net Income/(Loss)

($million)

EPS Market cap

($ million)

Amazon 9,857 22.82% 201 0.44 81,419

eBay 2,546 71.36% 476 0.36 40,279

Google 8,575 65.76% 2,298 7.04 189,011

Microsoft 16,428 76.28% 5,232 0.61 214,063

Oracle 8,764 77.04% 2,116 0.41 166,507

SAP* 4,134 64.55% 551 0.46 72.932

Symantec 1,673 83.86% 168 0.22 14,090

Yahoo! 1,214 68.92% 223 0.17 21,771

*Euro to USD Exchange rate used for SAP is 1.367 USD/Euro

PwC


51

Quarterly results of operations analysis Q2 2011 Software & Internet


Revenues (in $ millions) – Software & Internet

Gross margin % – Software & Internet

• Revenue improved for almost all the software companies in the second quarter. eBay's revenues increased 25% to $2.8 billion year over year, driven primarily by a 34% increase in PayPal net total payment volume and a 17% increase in Marketplaces gross merchandise volume excluding vehicles. Microsoft’s revenue increased quarter over quarter primarily due to strong sales of Server and Tools products, the 2010 Microsoft Office system, and the Xbox 360 entertainment platform. Total revenues for Oracle increased in fiscal 2011 due to $4.7 billion of incremental revenue contribution from their hardware systems business and significant increases in software and services businesses’ revenues. In addition to this Exadata and Exalogic systems also made a strong contribution to the growth in this quarter. Google’s net growth in revenue was driven by Google websites’ strength. Revenue remained flat quarter over quarter for Yahoo!, Symantec and Amazon.

• Gross margin for eBay and Yahoo! remained consistent and in-line with the prior quarter. Gross margin for Microsoft , Oracle and Sap AG went up sequentially due to higher revenue. Gross margin for Amazon remained relatively consistent with prior year periods.

0%

20%

40%

60%

80%

100%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Amazon eBay Google

Microsoft Oracle SAP

Symantec Yahoo!

0

5,000

10,000

15,000

20,000

25,000

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Amazon eBay Google


Symantec Yahoo!

PwC


52

Quarterly results of operations analysis Q2 2011 (cont.) Software & Internet

R&D expenditure and net income trends were as follows:

R&D expenses (in $ millions) – Software & Internet

Net income (in $ millions) – Software & Internet

• R&D expense for Software & Internet companies increased as compared to last quarter except for SAP AG which registered a marginal dip. Amazon’s R&D expense was up by 21% sequentially primarily due to increased spending on technology infrastructure and increases in payroll and related expenses. eBay’s rise in R&D expense was due to higher employee related costs driven by increased investment in top technology priorities (search, catalog, mobile, platform, and user experience) and the impact from acquisitions. R&D expenditure for Oracle went up this quarter due to increased headcount , increased expenses related to facilities, and other infrastructure costs. Symantec’s R&D expense increased 5.8 % sequentially while Google and Yahoo! experienced a slight rise this quarter.

• eBay’s net income declined by 40% sequentially due to rise in operating expense attributable to higher marketing program cost , employee related expense and acquisition related transaction costs. Net income for Amazon decreased due to increased product and shipping costs resulting from increased sales and increased spending on online marketing channels. Net income improved for Google, Microsoft, Oracle , Sap and Yahoo! due to higher revenue .

-1000

1000

3000

5000

7000

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Amazon eBay Google


Symantec Yahoo!

0

500

1,000

1,500

2,000

2,500

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Amazon eBay Google


Symantec Yahoo!

PwC


53


Receivables trends were as follows:

Receivables – Software & Internet

• Days sales outstanding (DSO) increased across companies in the analysis except SAP and Symantec. DSO increased the most for Microsoft by 23 days in this quarter. DSO for Yahoo! remained consistent and in line with the prior quarter.

0 20 40 60 80

100 120 140 160 180

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Amazon eBay Google Microsoft Oracle SAP Symantec Yahoo!

PwC


54


Diluted Earnings per share (EPS) and Price earning ratio(P/E) trends were as follows:

EPS – Software & Internet

Price earning ratio– Software & Internet

• EPS showed a mixed trend this quarter. eBay’s diluted earnings per share decreased to $0.22 , a $0.09 decrease compared to the same period of the prior year, driven primarily by a loss from the divestiture of certain GSI businesses and other transaction-related expenses. Microsoft’s diluted earnings per share increased reflecting higher revenue, lower income tax expense, and repurchases of common stock. Amazon’s EPS declined due to rise in operating expense, as the company continued to invest heavily to support future growth. Google, Oracle and SAPAG registered higher EPS due to higher net income

• P/E declined for most of the software & internet companies, exceptions being Amazon, eBay and Symantec. SAP currently trades at next twelve month ( NTM) P/E multiples of 15.2x as compared to the software industry average of 18.3x. 1 P/E increased for Amazon due to rise in share price.

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Amazon eBay Google


Symantec Yahoo!

0.00

15.00

30.00

45.00

60.00

75.00

90.00

105.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Amazon eBay Google Microsoft Oracle SAP Symantec Yahoo!

1 . Credit Suisse , July 2011

PwC


55


Systems and PC Hardware

PwC


56

Market analysis Systems and PC Hardware

• Worldwide PC shipments totaled 84.41 million units, excluding tablets, in the second quarter of 2011, a 2.6% growth from the second quarter of 2010. Netbook sales continued to fall, as consumers and businesses in the U.S. and western Europe are holding off buying new PCs as budgets are squeezed. But in Asia sales were booming, notably in India and China, which saw growth of around 10%. Latin America also saw strong growth.1

• Analysts expect EMC to gain market share in storage space as it has one of the best offerings in the market. It also keeps upgrading its offering by investing in R&D. Direct selling to end users will help it to grow faster. Acquisition of companies like Data Domain and Isilon has helped in the acceleration of its growth.2

• Analysts believe that Hewlett-Packard will need some years for a turnaround. The company is working through high restructuring charges, dealing with the shutdown of Web OS tablet & phones and also plans to spin off its PC business.3

• Dell’s acquisition strategy, like pending acquisition of Force10 Network may be beneficial for the top-line of the company. Cloud solution and advanced server products will allow it to maintain and even improve its gross margins. Strategic shift to mid-market design focus on enterprise solutions and services will drive product mix shift to a higher-value portfolio resulting in sustainable, improved results.

1 . Ga rtner Press r elease Aug , 2011

2. A u riga, Aug 8 , 2011 3. Ca r is & Co, Aug 19, 2011

PwC


57

Market analysis (cont.) Systems and PC Hardware

• Analysts believe relative to other enterprise players IBM has superior execution and various levers to protect its earnings making it defensive near term. Enterprise demand is believed to be impacted by the federal (10% IBM sales) and financial verticals. IBM is well positioned to weather a downturn from an EPS perspective as 41% of operating income comes from the Services segment of the business, where the income stream is more recurring. Second, analysts believe that the company’s M&A business model could continue to drive EPS accretion and thirdly, the company continues to spend over $10bn on share buybacks per year.1

• Analysts believe that in spite of Xerox’s reduced cash flow guidance for 2011, the main drivers remain constructive. The positive is that it maintains ample cash to execute on its entire repurchase plans (minimally $2.1 billion in repurchase, or 15% of current market cap). Xerox will have some positive impact on ―cash flow‖ heading into 2012, such as lower restructuring payments, reduced Japan related costs and lower pension outflows. 2

• Lenovo reported better than expected results with higher operating margins benefiting the bottom line. Concern remains over decelerating corporate growth, as Lenovo has 65% sales exposure to the corporate segment. Lenovo, analysts believe, is not immune to the macro slowdown, but it is expected to suffer less impact for two reasons: 1) strong presence in China, which has grown to be the world’s largest PC market in FY11, and deeper channel coverage in lower-tier cities, and 2) aggressive market share gains in both consumer and corporate markets. 3

1 . Cr edit Suisse, Aug 18, 2011

2. Br ea n Murray Carret & Co, July 25, 2011 3. Mor g a n Stanley 19th August 2011

PwC


58

Systems and PC Hardware Results for the first six months of 2011

Company Q1 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS($) Market cap

($ millions)

Dell 15,017 22.85% 945 0.49 29,378

EMC 4,608 58.58% 503 0.21 54,649

HP 31,632 24.57% 2,304 1.05 86,172

IBM 24,607 44.13% 2,863 2.31 197,510

Xerox 5,465 34.05% 281 0.19 14,923

Lenovo 4,879 12.30% 42 - 113,986

Company Q2 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS ($) Market cap

($ millions)

Dell 15,658 22.51% 890 0.48 29,784

EMC 4,845 59.45% 546 0.24 53,853

HP 31,189 23.28% 1,926 0.93 48,950

IBM 26,666 46.44% 3,664 3.00 216,236

Xerox 5,614 34.50% 319 0.22 15,031

Lenovo 5,920 12.47% 109 0.01 125,611

PwC


59

Quarterly results of operations analysis Q2 2011 Systems and PC Hardware Revenue and gross margin trends were as follows:

Revenues (in $ millions) – Systems and PC Hardware

Gross margin % – Systems and PC Hardware

• Systems and PC Hardware revenue increased marginally for all the companies year over year. Except for HP the rest of the companies showed an improvement in revenue quarter-on-quarter. EMC and IBM led the sector with 20.4% and 12.4% year-over-year growth respectively, while Dell, Xerox and HP were laggards with 1%-2% year-over-year growth. EMC’s revenue growth was primarily supported by higher overall demand and also by increased market share. IBM achieved increased revenue primarily by

focusing on providing integrated IT systems (software, hardware, outsourcing & consulting services). Lenovo had a ~21% growth in revenue , supported by higher PC demand in China. In addition, Lenovo has higher presence in China’s fast-growing lower- tier cities, which may lead to sustainable growth in the next few quarters.

• All the companies in the PC and Hardware sector reported growth in gross margin year over year, except for HP and Xerox. Del l

reported the highest growth of ~6 percentage points year over year in gross margin (from 16.65% in Q1 2010 to 22.51%), driven by continued cost execution, disciplined pricing, and ongoing shift to higher value product mix. On the other hand, HP reported a decline of ~1.3 percentage points in its gross margin quarter-on-quarter (24.6% in Q1’2011 to 23.3% in Q2’ 2011), primarily due to

lower market share in the hardware segment, leading to lower margins. Lenovo improved its Gross margin by ~140basis points to 12.5% in Q2 2011, due to margin recovery in China (scale benefits) and mature markets.

0

8,000

16,000

24,000

32,000

40,000

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Dell EMC HP

IBM Lenovo Xerox

0%

15%

30%

45%

60%

75%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Dell EMC HP

IBM Lenovo Xerox

PwC


60

Quarterly results of operations analysis Q2 2011 (cont.) Systems and PC Hardware


R&D expenses (in $ millions) – Systems and PC Hardware

R&D expenses (% of revenue) – Systems and PC Hardware

• R&D expenses for all companies were relatively stable, with EMC registering the largest sequential growth of 7.3% led mainly by acquisition of companies like Data Domain and Isilon. Dell’s R&D increased by 5.13% sequentially. Xerox’s R&D decreased 4.9% sequentially. R&D expenditure for Lenovo decreased by ~16% sequentially due to a decrease of U.S.$9 million related to the reallocation cost of R&D laboratory.

• R&D as a percentage of sales was in line with the previous quarters with an upward bias for all companies except Xerox and IBM which had a marginal decline.

0

300

600

900

1,200

1,500

1,800

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Dell EMC HP

IBM Lenovo Xerox

0%

3%

6%

9%

12%

15%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Dell EMC HP

IBM Lenovo Xerox

PwC


61


Days inventory in hand and days sales in receivable trends were as follows:

Days inventory on hand – Systems and PC Hardware

Days sales in receivables – Systems and PC Hardware

• Days inventory on hand increased for all companies within the sector during the quarter and as compared to previous quarter except for IBM. Hewlett-Packard and EMC led the sub-sector with the increase of ~9% and ~6% respectively. This was due to higher inventory buildup as most companies pushed their orders to 2H’2011. Dell and Xerox had their days inventory in hand, stable quarter-on-quarter. Days inventory decreased marginally (~4%) for Lenovo quarter on quarter.

• Days sales receivable (DSO) had a mixed results with Dell and EMC having an increased DSO and HP, IBM, Lenovo and Xerox having a decreased DSO. IBM had the highest DSO of 89 days and Xerox with the lowest DSO of 47 days.

0

10

20

30

40

50

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Dell EMC HP

IBM Lenovo Xerox

20

45

70

95

120

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Dell EMC HP IBM Lenovo Xerox

PwC


62

Quarterly results of operations analysis Q2 2011 (cont.) Systems and PC Hardware EPS and market capitalization trends were as follows:

EPS ($)– Systems and PC Hardware

Market cap (in $ millions) – Systems and PC Hardware

• EPS for all the Systems and PC Hardware companies witnessed an increase year-on-year. Except for Dell and HP, EPS increased for the rest of the companies quarter-on-quarter. IBM’s EPS increased by ~30% quarter-on-quarter . Relative to other enterprise players, IBM has superior execution and various fixed contracts to protect its earnings. IBM’s share buyback program and M&A has also led to incremental EPS. Xerox also had a 16% increase in EPS quarter-on-quarter driven by its share buyback program, which the analysts believe to be sustainable due to higher cash reserve. Lenovo’s EPS increased 100% year on year from $0.54 cents to $1.08 cents, led by higher revenue in China and also improved operating margins driven by a better product mix and lower cost of raw materials.

• Market capitalization for Systems and PC Hardware companies increased year-0n-year except for HP which decreased by 50% led by lower than expected results and decreased EPS guidance by management ,and Lenovo, which dropped marginally by 1.7%, but it’s market cap increased by 10% quarter on quarter. The market cap of Xerox and EMC increased by 35% and 38% respectively. EMC’s market cap was driven by results exceeding Street estimates and the company also raised guidance for FY11 despite rising headwinds. Dell’s market cap was relatively stable quarter-on quarter due to no earnings surprises.

-0.50

0.50

1.50

2.50

3.50

4.50

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Dell EMC HP

IBM Lenovo Xerox

-

50,000

100,000

150,000

200,000

250,000

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Dell EMC HP

IBM Lenovo Xerox

PwC


63


Price/Earning Ratio trends were as follows:

Price -Earning multiples – Systems and PC Hardware

• The Price-Earning multiple for all companies in Systems and PC Hardware sub-sector contracted except for IBM. This was in line with overall market conditions. With the global economic uncertainty led by U.S. and Europe, investors are restraining themselves from investing at this level. Most technology companies’ revenue are dependent on the developed market.

• HP’s PE contraction was driven by lower estimated results for 2Q’2011 and decreased revenue and EPS guidance for the next quarter.

• IBM’s PE increased due to better than expected results. The company beat the street estimate EPS which acted positively for the stock .

• Lenovo’s PE multiple increased by 12% as the EPS increased sharply, positively impacting investor opinion.

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

Lenovo (BAR) Dell Inc EMC Corp. HP IBM Xerox

1 . PE r a t io of Len ovo is sh own in bar chart a s it is significantly higher than the r est of the

com panies.

PwC


64

Market analysis CleanTech

• Multiple solar companies are struggling to survive in these market conditions as is evidenced by Solyndra’s bankruptcy filing. This will bring enhanced focus/scrutiny on government loans and incentives to the Cleantech industry.

• The price of polysilion has been on decline and will continue to do so in future quarters.

• In the APMEA region, China is becoming a global leader not just in manufacturing, but in solar installation as well. In a critical step, the government recently announced China’s first-ever national feed-in tariff sell at 1.15 RMB per kilowatt hour for projects approved in the first half of 2011.

• During 2009-10, the prevailing source of solar demand was from Germany and Italy, but for a 20-plus GW global solar market to exist in the future, incremental demand must emerge in the U.S. and China given that the German and Italian markets are likely to plateau or shrink in 2011 and beyond.1

• According to analysts at Morning Star, U.S. and China will become the world's major solar markets within the next few years, but more federal support (i.e. subsidization) is required in each country if they are to meet the lofty expectations most solar industry participants are forecasting.

• Analysts at Morning Star believe that the slowdown in these markets will make it difficult for the industry to grow in 2011-12. Further, they expect recent industry capacity additions are very likely to overshoot demand growth, the byproduct of which will likely be pricing declines not seen since early 2009.

1. Mor ningstar Equity Research

PwC


65

Market analysis (cont.) CleanTech

• In the third quarter of 2011, Suntech expects PV shipments to increase by over 15% compared with the second quarter of 2011. Suntech also expects that gross margin will be in the range of 11% to 13% in the third quarter of 2011.1

• Suntech plans to expand wafer capacity to 1.6GW by the end of 2011. As a result, full year 2011 capital expenditures are expected to be in the range of $340 million to $360 million. Suntech will maintain its cell and module production capacity at 2.4GW. 1

• In the third quarter of 2011, SunPower expects revenue to be in the range of $700 - $750 million and Gross Margin (GAAP ) in the range of 12% to 14%. 2

• First Solar expects to increase its manufacturing capacity to 44 production lines by the end of 2012, with an annual global manufacturing capacity of approximately 2.7 GW.

• First Solar’s average manufacturing cost per watt declined by 1% from $0.76 during the three months ended June 26, 2010 to $0.75 during the three months ended June 30, 2011.

1 . Suntech Group PLC Press Release 2 . SunPower Press Release

PwC


66

CleanTech Results for the first six months of 2011

Company Q2 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS Market cap

($ millions)

First Solar, Inc. 533 36.56% 61 0.70 11,414

SunPower Corp. 592 3.26% (148) (1.51) 1,516

Suntech Power 831 4.06% (260) (1.44) 1,418

Company Q1 2011

Revenue

($ millions)

Gross

margin (%)

Net income/(loss)

($ millions)

EPS Market cap

($ millions)

First Solar, Inc. 567 45.77% 116 1.33 13,843

SunPower Corp. 451 19.61% (2) (0.02) 1,728

Suntech Power 877 19.03% 32 0.17 1,776

PwC


67


Revenues (in $ millions) – CleanTech

Gross margin % – CleanTech

• First Solar, Inc.’s net sales were $532.8 million in this quarter, a decrease of $34.5 million from the first quarter of 2011 , primarily due to lower average selling prices as solar photovoltaic (PV) policy uncertainties in Italy, Germany and France adversely impacted

demand. In Q2 SunPower Corp’s total revenues witnessed a year on year growth of 54% to $592.3 million, from $384.2 million reported in the same quarter last year. The increase in revenues was due to the development of several large scale projects in North America and Europe, as well as the continuous growth in its third-party global dealer network. Suntech Power total net revenues for

Q2 were $830.7 million, compared to $877.0 million in Q1 . The sequential decline of revenues was primarily due to a decline in the average selling price of PV products. This was partially offset by an increase in shipments.

• In the second quarter of 2011, Suntech reported decline in its gross margin to 4.1%, compared to 20.8% reported in the first quarter of 2011. Excluding the impact of the MEMC warrants, non-GAAP gross margin was 15.1%. Sunpower’s net margin was 3.3% in this quarter, from 19.6% reported in the first quarter of 2011. The decrease in margin was due to mix changes relate d to

market conditions in Germany and Italy . For the second quarter of 2011, First Solar, Inc. reported declined in its gross margin to 36.6% from 45.8% reported in the first quarter of 2011. The decline was the result of the ASP's decreases, a mix shift both geographically and to more system sales and an unfavorable FX impact.

Quarterly results of operations analysis Q2 2011 CleanTech

0.0

250.0

500.0

750.0

1,000.0

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011

First Solar, Inc. SunPower Corp. Suntech Power

0.0%

15.0%

30.0%

45.0%

60.0%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


PwC


68

Quarterly results of operations analysis Q2 2011 (cont.) CleanTech


R&D expenses (in $ millions) – CleanTech

R&D expenses (% of revenue) – CleanTech

• First Solar, Inc.’s R&D expense was $33.10 million in the second quarter 2011, compared to $22.84 million reported in the same quarter last year. The increase in research and development expense was due to a $3.5 million increase in personnel-related expenses resulting from increased hiring for various R&D projects, a $5.7 million increase in depreciation, testing, and qualification material costs, and a $1.1 million increase in other expenses. In the second quarter 2011, SunPower R&D expense was $15.3 million, as compared to $11.2 million reported in the same period last year. The increase was primarily due to improvement in current generation solar cell manufacturing technology, development of next generation solar cells, solar panels, trackers and rooftop systems, and development of systems performance monitoring products. In the second quarter 2011, Suntech Power R&D expense declined by $1.5 million to $8.7 million, compared to $10.3 million reported in the first quarter of 2011.

• Sequentially R&D expenses as a percentage of revenues declined for SunPower Corp. and Suntech Power. However, First Solar, Inc.’s R&D expenses as a percentage of revenues increased to 6.21% from 5.53% in the second quarter of 2011.

0.0

10.0

20.0

30.0

40.0

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


0.0%

1.5%

3.0%

4.5%

6.0%

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


PwC


69

Quarterly results of operations analysis Q2 2011 (cont.) CleanTech


Days inventory on hand – CleanTech

Days sales in receivables – CleanTech

• Days inventory on hand increased marginally for First Solar Inc., from 84 days to 86 days in the current quarter. However, for SunPower and Suntech Power days inventory reduced from 121 days and 70 days in the previous quarter to 65 days and 65 days respectively in the second quarter of 2011. Suntech took an inventory provision of U.S.$30 million which had a 3.5% impact on both GAAP and non-GAAP. Also sequentially inventories for Suntech increased only by 20 million indicating good inventory management

• Days sales in receivables (DSO) increased exceptionally for First Solar Inc and Suntech Power . For First Solar DSO increased from 59 days in the first quarter 2011 to 102 days in the current quarter. While Suntech Power DSO increased from 73 days to 93 days in the current quarter. The increase for Suntech was due mainly to large sales to – two major project customers as well as the majority of sales occurring in the month of June. However, SunPower Corp., witnessed a drop from 68 days in the last quarter to 60 days in the second quarter 2011.

20.0

50.0

80.0

110.0

140.0

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


20.0

35.0

50.0

65.0

80.0

95.0

110.0

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011


PwC


70

Methodology

• We analyzed a selection of the largest technology companies included in the S&P 500 index, a selection of large international technology companies that regularly report financial results and a selection of promising CleanTech companies.

• In order to present the information by calendar year or calendar quarter, the financial information for companies with non-calendar years or quarters was included in the nearest calendar year or quarter.

We analyzed technology companies that operate predominantly within the following sectors:

• Communications

• Consumer Electronics

• EMS/Distributors

• Semiconductors

• Software & Internet

• Systems and PC Hardware

• CleanTech

We exercised reasonable professional care and diligence in the collection, processing

and reporting of this information. However, the data used is from third-party sources

and PricewaterhouseCoopers has not independently verified, validated or audited the

data. PricewaterhouseCoopers makes no representations or warranties with respect

to the accuracy of the information, nor whether it is suitable for the purposes to

which it is put by users.

PricewaterhouseCoopers shall not be liable to any user of this report or to any other

person or entity for any inaccuracy of this information or any errors or omissions in

its content, regardless of the cause of such inaccuracy, error or omission.

Furthermore, in no event shall PricewaterhouseCoopers be liable for consequential,

incidental or punitive damages to any person or entity for any matter relating to this

information.

© 2011 PricewaterhouseCoopers LLP. All rights reserved. In this document, ―PwC‖

refers to PricewaterhouseCoopers LLP, which is a member firm of

PricewaterhouseCoopers International Limited, each member firm of which is a

separate legal entity.

Date post:	23-May-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Technology Sector Scorecard€¦ · PwC Technology Sector Scorecard 11 • Motorola Solutions...

Documents