1 F C IF C I Electronics SBG - January 26, 2001 Global Business Review 2001.

1 Electronics SBG - January 26, 2001

Global Business ReviewGlobal Business Review 2001 2001


AgendaAgenda

Organization President

Global Overview President

Applications & Market Drivers Ind. Mktg. Dir.

Segment Overview Mktg. VP

Strategies & Challenges President

Fiber Optics Review Business VP

Operations Direction Operations VP

Financial Plan Controler


Global OverviewGlobal Overview


Company - Global Sales Company - Global Sales

Comm50%

Data27%

Cons11%

Indust12%

1999 Sales

1,190 M €

2000 YEF

1,536 M €

2001 Budget

1,709 M €

Comm57%Data

23%

Cons10%

Indust10%

Comm59%

Data21%

Cons11%

Indust9%

+ 29%

+ 11

%


Company vs MarketCompany vs Market

CAGR = 9.2%

MARKET

Global- 2000Total Sales = 1536M

Americas42%

Europe31%

Asia27%

Global - 2001Total Sales = 1709M

Americas41%

Europe31%

Asia28%

CAGR = 11.3%

Company

GLOBAL - 2000SAM = $23.9B

Americas41%

Europe23%

Asia36%

GLOBAL - 2001SAM = $26.1B

Americas40%

Europe23%

Asia37%

6.4% share 6.5% share

Source: Bishop


Company - Sales by ChannelCompany - Sales by Channel

OEM68%

CEM19%

DIST13%

1999 Sales

1190 M €

2000 YEF

1536 M €

2001 Budget

1709 M €

OEM61%

CEM26%

DIST13%

OEM53%CEM

33%

DIST14%


All values in M EUROS

Sa

les

KK

Eu

ros

Global Top 15 Key CustomersGlobal Top 15 Key Customers(includes CEM derived demand)(includes CEM derived demand)

0

50

100

150

200

250

3002000

2001Top 15 = 64%Std Margin%

34%

38%

29%

34%

32%45% 29%39% 45%

34% 26% 15% 25%10%

31%



Sa

les

KK

Eu

ros

Global Top 15 Key CustomersGlobal Top 15 Key Customers

0

20

40

60

80

100

120

140

160

Sl L A Sn Ar C Nk Nt E V Sc J T P M

2000

2001

Top 15 = 52%

CEM

DIST


Product GroupingsProduct Groupings

Product Groupings - 2001

BP44%

BTB17%

IO13%

VA18%

Mobile4%

FO2% Other

2%MetralMillipacsDINFastechPwrBladeMicropaxNorconHPCSCA-2

BasicsSocketsMinitekCEEMini BTBMegArrayFFC/FPC

D-SubUSB/1394ComboSerpentPCMCIAMod JackVHDCIMetagigSIMM/DIMMSmart Card

CPCBCable AssyBP AssyBusBar


Electronic Cabinet Packaging - ChassisElectronic Cabinet Packaging - Chassis

INTERCONNECT LEVELS

LEVEL 1 & 2

LEVEL 3LEVEL 4

LEVEL 5



Sa

les

KK

Eu

ros

Global Sales by Product GroupingsGlobal Sales by Product Groupings

0

100

200

300

400

500

600

700

800

BP BtB VA IO MP FO O

Series1

Series240%

14%16%24%

25%

25%

27%

Std Margin%

20002001



Sa

les

KK

Eu

ros

Global Sales - Top ProductsGlobal Sales - Top Products

0

50

100

150

200

250

300

350

400

450

M CA BC PC SSAC FP MP CAS F D MP N HC MJ

2000

2001

Top 15 = 76%39%

26%26%39%19%7%

44%

32%24%23%33%18%

37%13%

Std Margin%


Segment Summary - Global MarketSegment Summary - Global Market

MarketSize

GrowthRate

CONS

COMM

DATA

I&I

TelecomDatacomWireless Infrastructure

InstrumentationProcess Control

Embedded CompMedical

Office Equip

Mobile CompPC

ServersStorage

Peripherals

Mobile PhoneMobile EquipSet Top BoxesModemsDSC

10%5%

1B

10B

Source: Bishop, except Mobile Phone in Consumer, not Communications


Applications & Market DriversApplications & Market Drivers


Market DriversMarket Drivers

050

100150

200250300350400450

500

mill

ion

s

1996 1997 1998 1999 2000 2001 2002 2003

Global Internet Users

IDC

NetworkTraffic

Time

1998 2000 2003

Data

Voice

e-Infrastructure for e-Commerce

1998 - 2003 Internet users 4X1998 - 2003 Data traffic 20X

PERFORMANCE REQUIREMENTS DOUBLE EVERY YEAR!


End User ApplicationsEnd User Applications


Bandwidth to the UsersBandwidth to the Users


Communications NetworkCommunications Network


Market TrendsMarket Trends

INTERNETINTERNETCONNECTIONLESSCONNECTIONLESSUSER INTERFACESUSER INTERFACES

LIMITLESS BANDWIDTHLIMITLESS BANDWIDTH

DEREGULATIONDEREGULATION

FIBER

WIRELESS

DATAServers

RAID

PCs

Laptops

Network appliance

PDA

COMMUNICATIONS

Datacom

Optical Networking Broadband Access

Mobile Commerce

CONSUMER

Modems

Cell Phones Set Top Box/Games DSC/Video/MP3

Residential Gateway


Network Revolution = OpticalNetwork Revolution = Optical

BANDWIDTHBANDWIDTH


TIME

BA

ND

WID

TH

DE

MA

ND

Internet

FastechNorconDIN

Metral MillipacsMetral 1000

Metral 2000

Metral 3000

Fiber Optics

INSTALLATION POPULATION DEREGULATION

Product TrendProduct Trend

VOICE E-MAIL FILE TRANSFER GRAPHICS MUSIC VIDEO

1975 1985 1995 2000 2003

Cat 5Cat 5e

HSSDC2

Cat 3

MicroCN

HS Mezz

IP Networks(packet switched)

PSTN Networks(circuit switched)

InfiniBand


System Design ChallengesSystem Design Challenges

Bandwidth Density

Cost

Time to Market/Volume

Modularity/Scalability

EMI

Power/Cooling

Inter/Intra Cabinet Connection

Design re-use / Standardization


CommunicationsCommunications


Communications - FCI Market PositionCommunications - FCI Market Position

Technology

Pro

duct

Por

tfolio

Tyco

FCI

Teradyne

Molex

ITTAmph

Radiall

TOP SUPPLIERS (1999 - Bishop)1) Tyco 887.5 18.9%2) FCI 598.7 12.7%3) Molex 438.6 9.3%4) FoxConn 226.6 4.8%5) 3M+RN 187.3 4.0%6) Amphenol 157.3 3.3%7) Elco 150.0 3.2%8) ITT Cannon 146.8 3.1%9) JAE 140.1 3.0%10) Radiall 122.6 2.6%11) Hirose 99.6 2.1%12) Gilbert 95.0 2.0%13) ERNI 76.3 1.6%14) Teradyne 73.1 1.6%15) T&B 72.0 1.5%

FoxConn

3MElco

1999 SAM = $4.70B


Communications - FCI Electronics vs MarketCommunications - FCI Electronics vs Market

Communications - 2000SAM = $6.0B

Americas44%

Europe24%

Asia32%

Communications - 2001SAM = $6.6B

Americas39%

Europe24%

Asia37%

CAGR = 10.8%

MARKET

Comm- 2000Total Sales = 864M

Americas47%

Europe41%

Asia12%

Comm - 2001Total Sales = 968M

Americas48%

Europe38%

Asia14%

CAGR = 12.0%

Company14.4% share 14.7% share

Source: Bishop


Communications - Key Market TrendsCommunications - Key Market Trends

Bandwidth expansion in network infrastructure to support

Internet growth and data communications. IP standard implementation to support voice over data. Telecom and Datacom convergence. High growth areas in new equipment to support bandwidth expansion.

SONET/SDH, DWDM, xDSL, Base Stations Fiber optics moves closer to the home/desk High performance connector and I/O cable assembly needs. Outsourcing trend to CEM to accelerate. Maximum growth rate in 2000

Slowing through rest of forecast due to build-out saturation


Communications - Sub-SegmentsCommunications - Sub-Segments

MarketSize

GrowthRate

DWDM

DSL

SONETSDH

BaseStation

ATM

DLC

RAC

DCS

IPR

SWITCHING

ACCESS

TRANSPORT

NortelLucentFujitsuAlcatelNECCisco

AlcatelCiscoNokiaCu MtnNortelLucent

NortelLucentCienaCiscoNEC

LucentNortelAlcatelMarconiCisco

AlcatelLucentNortelMarconiAFC

EricssonNokiaMotorolaNortelLucent

CiscoNortelLucentJuniper

LucentCisco3ComNortel

TellabsAlcatelLucent

30%10% 20%

1B


SDH Market Share - EUSDH Market Share - EU

Europe SDH Market Share - 2000

Marconi29%

Alcatel24%

Lucent13%

Nortel17%

Siemens9%

ECI4%

Others4%

Marconi includes GPT, Bosch & Nokia

RHK

Global SONET/SDH

Americas58%Europe

22%

Asia Pacific

20%

Metral

ITT / FCI

Metral

FCI

Metral

FCI

Metral

FCI

Metral

FCI

Alcatel A1660, A1670Marconi SMA, MSHNortel TN4X, TN6X

HM

Tyco


Base Station Market Share - GlobalBase Station Market Share - Global

Dataquest

Base Station Market Share - 1999Global BTS Shipped

Ericsson33%

Nokia22%

Motorola13%

Nortel10%

Siemens10%

Lucent7%

Samsung1%

Others1%

Alcatel3%

Metral & HM

Metral

Metral & HM

HM

Metral

Metral

FCI

FCI & Perlos

FCI & Tyco

FCI

FCI

ERNI & Tyco

HM

Tyco

Ericsson Pluto, HiCapNokia UltraSite, Talk, S8000Nortel Metrocell, S8000Lucent Flexent, DoCoMoAlcatel BTS 3.5G, A9900 LMDSSamsung, LGIC, ZhongXing

Metral NECPanasonic

HM

VHDM Teradyne


xDSL Market Share - GlobalxDSL Market Share - Global

Dataquest

xDSL Market Share - 1999Global Ports Shipped

Alcatel34%

Cisco18%

Nokia10%

Copper Mtn8%

Orckit6%

Nortel5%

Paradyne4%

Others11%

Newbridge4%

Press fit CEE

Metral

Metral

Metral

cPCI

Metral

Metral

FCI + Tyco

FCIFCI & Tyco

FCI

FCI/Tyco

FCI

ERNI

cPCI

ERNILucent Metral

RN

Alcatel A1000 R3, R4, A1540Nortel UE-IMASNokia D50 SpeedLinkEricsson ANXSamsungLGIC

Marconi partnerMetral



Sa

les

KK

Eu

ros

Communications - Key HPLsCommunications - Key HPLs

0

50

100

150

200

250

300

350

400

M CA F S CAS Nc PC FO MP B BP MJ CA BB

2000

2001

Top 15 = 86%39%

28%13%26%27%37%19%16%18%39%7%32%

44%33%

Std Margin%


BP PRODUCTSBP PRODUCTS

Traditional Technology YEF '00 2001B DELTA %

N 46.5 35.4 -11.1 -24%

F 78.0 55.3 -22.7 -29%

HC 29.6 27.6 -2.0 -7%

D 74.6 78.0 3.4 5%

S u b t o t a l 228.7 196.3 -32.4 -14%

New Technology

M 271.0 410.0 139.0 51%

MP 25.3 41.8 16.5 65%

FO 24.5 38.0 13.5 55%

S u b t o t a l 320.8 489.8 169.0 53%


Communications - Product Success FactorsCommunications - Product Success Factors

New product introductions

Fiber Optics - multi-fiber array connector

High Speed Mezzanine

High Speed backpanel products to volume

Leverage BGA technology

Increase capacity to match demand

Implementing Fiber Optics strategy

Roadmapping to match technology requirements

Continued focus on cost reduction

Technology (Am Ni); Location (low labor regions); Systems; Prod/Proc Tech

Time to market improvement (PACE)


GROWTH EMERGING

BackplaneMetral/Millipacs

cPCI

MATURE

Brd to BrdMegArray

Communications - Product RoadmapCommunications - Product Roadmap

0.1” Systems

0.8 mm BTB

HS HM

HS Mezzanine

Fiber

OpticsSC GBIC

SFF FO Multi Fibre ArrayBP adapters

Mod JacksRJ11

RJ45

Cat 3

Cat 5/5eCat 6 & 7

SMT, LED, Mag

HS cableMetaGig

Series 3000

Series 1000/2000Metral Gigabit Link

Conan

Series 1000/2000Series 3000

No active FCI program

PACE program



Sa

les

KK

Eu

ros

Communications - Key AccountsCommunications - Key Accounts(includes CEM derived demand)(includes CEM derived demand)

0

50

100

150

200

250

300

L E A N CS Nk M NC S SM HW

2000

2001

Top 11 = 87%


Communications - Account Success FactorsCommunications - Account Success Factors

Design wins/shipments to high growth equipment

SONET/SDH, DWDM, xDSL, Base Stations

Leverage existing relationships

OEMs - L, N, A, E, CS

CEMs - S, Sn, Cl, Sc, J, V

Provide complete solutions

platform design-in

Monitor equipment start-ups

acquisition targets for large OEM portfolio completion

Operational excellence

Global account management

Gain market share through capital investment


Communications - SWOTCommunications - SWOT

Product breadth

OEM relationships -Customer Intimate

Lucent, Nortel, Alcatel, Ericsson

2mm Futurebus (FB/Metral) market leader

Value added capabilities

CEM relationships

Signal Integrity expertise

Automated assembly systems

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

Fiber optic portfolio

Lack of backpanel (BP) design expertise/partner

Late to market with high speed BP connectors

Mature high margin products

Lack of RF solutions and focus

Hard Metric position

Capacity constrained: 2 mm

not enough FB suppliers, FB share shrinking

Fiber optics value added

High Speed BP design-ins for next gen platforms

HS backpanel alliance/partner

PCB/backpanel/cable assembly

OEMs outsourcing FO /box build

Time to capacity

Amorphous Ni & BGA technology

Low-cost capability/Am Ni& automated assy

A/P Hard Metric market

Lose technical leadership

Teradyne/Molex VHDM alliance

Foxconn entering Comm market

CEMs & Cable mfrs entering assembly business

Trend to outsourced bp turn-key design & build

Time to capacity to support A/P demand

CEMs threaten OEM relationships

Gaps in customer coverage

Hard Metric dominance


DataData


Data - Company Market PositionData - Company Market Position

Technology

Pro

duct

Por

tfolio

Tyco

Molex

Teradyne

F

HiroseJAE

Yama

TOP SUPPLIERS (1999 - Bishop)1) Tyco 934.8 14.1%2) Molex 667.4 10.0%3) FCI 502.4 7.6%4) FoxConn 491.1 7.4%5) 3M+RN 351.0 5.3%6) Hirose 210.3 3.2%7) Yamaichi 206.7 3.1%8) JAE 198.9 3.0%9) Amphenol 168.9 2.5%10) T&B 160.1 2.4%15) Teradyne 44.2 0.7%

FoxConn

3M

Amph

1999 SAM = $6.65B


Data - Company vs MarketData - Company vs Market

CAGR = 10.7%

MARKET

CAGR = 1.7%

Company

Data - 2000SAM = $8.5B

Americas49%

Europe14%

Asia37%

Data - 2001SAM = $9.4B

Americas48%

Europe14%

Asia38%

Data- 2000Total Sales = 348M

Americas41%

Europe3%

Asia56%

Data - 2001Total Sales = 354M

Americas39%

Europe3%

Asia58%


Source: Bishop


HDD

PC

Data - Sub-SegmentsData - Sub-Segments

MarketSize

GrowthRate

MobileComputing

RAIDSTORAGE

Servers

Peripherals

CompaqIBMDellHPSUNEMC

ToshibaCompaqIBMDellFujitsu

HPLexmarkCanon

CompaqDellIBMHP

SUN

Handheld

PalmHandspringSONYCompaqCasioHP

SeagateQuantum

MaxtorFujitsu

IBMWD

CompaqDellIBMHP

15%10%

1B

5%


Data - Key Market TrendsData - Key Market Trends

Price pressures and erosion approaching “low end” consumer

Accelerating shifting of manufacturing to:

low cost regions & CEMs

Explosion of Internet globally driving segment growth

High growth in entry/mid-level servers for data management

Double digit growth for storage systems

Bandwidth expansion between servers/storage/networks

High performance connector and I/O assembly needs

Reduced life cycles, standardization of components and rapid

growth of CEMs have changed “Rules of the Game”



Sa

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KK

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Data - Key HPLsData - Key HPLs

0

10

20

30

40

50

60

70

80

90

CA Pc M BC C SC FP Mg Hc CAS Dm Pw SC Mx

2000

2001Top 15 = 86%13%

38%8%38%13%32%

26%

38%

23%31%

2%37%

39%18%

Std Margin%


Memory

GROWTH EMERGING

Backplane

Card Edge

Other

RIMMDIMM

2mm Systems

PCI

MATURE

Serial ATAHS Cable

Data - Product RoadmapData - Product Roadmap

0.1” Systems

PwrBay PowerPod

Metral 1000/2000

SO DIMM

Slot 1

DDR DIMM

MetaGig

VHDCI

InfiniBand

SCA2

SCSIUSB

1394D-subs

PwrBlade

VRM9MiniPCI

Sockets

LGA

MercedMegArray

CardBus

Metral 3000


InfiniBand

DVIMini USB

UDS

PACE program

Combo



Sa

les

KK

Eu

ros

Data - Key AccountsData - Key Accounts(includes CEM derived demand)(includes CEM derived demand)

0

10

20

30

40

50

60

70

Cq D I It Mk Q H Nr Ht Sn Ac

2000

2001

Top 11 = 47%


Data - Key Success FactorsData - Key Success Factors

Focus on standards activity

InfiniBand (BP & IO), Serial ATA

SCSI (VHDCI), FibreChannel (MetaGig)

JEDEC (DDR DIMM)

Cost reduction efforts for commodity products

Focus on profitable area of market

Notebook, Servers, Storage

Work closer with Intel competitors -

AMD, Transmeta, others

Stronger & more integrated relationship with A/P


Data - SWOTData - SWOT

Position with ODMs in Taiwan

Ability to serve/supply globally

Leading position with HDD OEMs

Focused product positions PCMCIA, CardBus, Metral, MegArray, DIMM/DDR,

Combo and compression, Pwrblade, SCA2



Cannot and will not compete on price (Foxconn)

Limited high volume/low cost capabilities

Weak product position in desktop PCs and peripherals

TTM/TTV vs competition

Lack of top tier private label supplier alliances

Weak position with leading Japanese OEMs

Not viewed as technology leader

Double digit CAGR’s

Wins in Korea, Japan, Taiwan can be leveraged

Localized design+competitive production in Taiwan and

China

Increased bus speeds driving to Communications

solutions

Cable assembly upside

expansion of ODMs in A/P

Foxconn position, relationships and focus

Foxconn box build strategy and focus on 2 mm

“New Tyco/AMP” aggressiveness

Reduced life cycles and standardization of components reduce

margins and ROIs

Growth and expansion of low cost niche suppliers

Open market bidding for conn and cable assys

Attraction/retention of key personnel in A/P

Trend toward reduced supplier base and pkg deals procurement


ConsumerConsumer


Consumer - FCI Market PositionConsumer - FCI Market Position

Technology

Pro

duct

Por

tfolio

Tyco

Molex

3M

ElcoHirose JAE

Hosiden

TOP SUPPLIERS (1999 - Bishop)1) Molex 267.0 28.8%2) Tyco 126.8 13.7%3) F 40.4 4.4%4) JAE 36.2 3.9%5) Hirose 33.2 3.6% 6) Elco 30.0 3.2%7) Hosiden 25.6 2.8%8) FoxConn 22.7 2.4%9) Amphenol 11.8 1.3%10) 3M 8.2 0.9%

FoxConn

Amph

1999 SAM = $0.9B

Note: Bishop estimates excludes Mobile.

*

*includes Mobile Phone

(stimates

$1.5B including

MP


Consumer - Company vs. MarketConsumer - Company vs. Market

CAGR = 8.5%

MARKET

CAGR = 23.2%

Company

Consumer - 2000SAM = $2.0B

Americas20%

Europe13%

Asia67%

Consumer - 2001SAM = $2.16B

Americas19%

Europe12%

Asia69%

Consumer- 2000Total Sales = 151M

Americas21%

Europe19%

Asia60%

Consumer - 2001Total Sales = 186M

Americas20%

Europe19%

Asia61%


Source: FCI


Consumer - Sub-SegmentsConsumer - Sub-Segments

MarketSize

GrowthRate

Set TopBox

MOBILEPHONES

VideoGames

NokiaMotorolaEricssonPanasonicSiemensSamsungPhillips

ThomsonHughes

Motorola/GIScientific Atlanta

SONYNintendo

SegaMicrosoft

DSCVideo

SONYKodakCanonPanasonic

Modems*

* includes xDSL, cable, analog

Motorola/GIThomsonNortelTerayon3ComEfficient

ResidentialGateways

500M

100M

20%10%


Electronic Packaging - HandheldElectronic Packaging - Handheld

Battery

LCD

SIM

I/O + Accessory

B t B

Microphone

RF- Integrated Antenna

LEVEL 5LEVEL 5

LEVEL 5LEVEL 3

LEVEL 3

LEVEL 3

LEVEL 3


Consumer - Key Market TrendsConsumer - Key Market Trends

Growth in digital consumer devices

Integrated cell phones, new application for Internet access

Mobile equipment (PDA, Camcorder, CD/MP3 players)

Residential Gateways, set top boxes, high end game systems

Autosystems (navigation, entertainment, smart toll)

Lacking standardization but beginning to attempt

Moving away from PC centric world

Broadband connected home (networks, etc.)

Increasing use of handheld devices

New application for Smart Cards associated with e-business

Secure Data Card



Sa

les

KK

Eu

ros

Consumer - Key HPLsConsumer - Key HPLs

0

10

20

30

40

50

60

70

80

MP FP SC C CA MJ PPP PC US Bs Bd S Bt D

2000

2001

Top 15 = 98%24%

13%48%8%5%41%27%17%26% 27%13%

48%

21%

23%

Std Margin%


Consumer - Success FactorsConsumer - Success Factors

Mass production culture: Ability to meet volume ramp-up

High degree of customization

Technology leadership in mobile I/O

Presence on accessories

Focus on major players: few but dominate market

Utilize Global marketing/operation network

Focus market strategy

cell phones, set top box, residential gateways

Program Management Organization


GROWTH EMERGING

I/O

Card Systems

Other

USB

1394

PCMCIA

MATURE

Brd to Brd

Consumer - Product RoadmapConsumer - Product Roadmap

D-subs

0.8 mm BTB

BTVM

0.5 mm BTB

Smart Card

CardBus MMCCompactFlash

FFC/FPC

Mod Jacks Mobile I/O

Compression

Conan

SDC

Sockets


RF Antenna

Mini USB

PACE program

0.8 mm MegArray

HS FFC/FPC

LP BTB

1394b



Sa

les

KK

Eu

ros

Consumer - Top 10 Key AccountsConsumer - Top 10 Key Accounts(includes CEM derived demand)(includes CEM derived demand)

0

5

10

15

20

25

30

Pi Mt Sy Ma Cn Ta Th Nk So Pi

2000

2001

Top 10 = 47%


Consumer - SWOTConsumer - SWOT

Product breadth for cell phones

Infrastructure for strategic sourcing for

Mobile

Process in place for project management

Global organization for sales and ops

Access to low labor cost internal capability China, Hungary



Limited number of accounts as customers

Low presence in design houses

Strategy unclear beyond cell phones Lack of focus on FFC connectors outside Asia

No 0.3 mm BTB offering

No wire to board offering

Improving OEM relationships Motorola, Nokia, Thomson, Phillips, SA

Residential gateways/set top box

Wireless Internet/RF Antenna technology

Clear focus segment/product strategy

SD card

New technology for high speed assembly

Expand FFC/FPC offering

Resources capacity issues limit growth potential smart card, mobile I/O

Major technology changes expected within 3 years Bluetooth, etc.

Tyco/AMP aggressiveness

Strengths of competition Molex, Hirose, JST and Taiwan/China companies

Price war in many segments


I & II & I


I&I - Company PositionI&I - Company Position

Technology

Pro

duct

Por

tfolio

Tyco

3M

HartingAmph

Molex

Hirose

TOP SUPPLIERS (1999 - Bishop)1) Tyco 1261.9 17.6%2) FCI* 381.2 5.3%3) Molex 249.8 3.5%4) Harting 214.1 3.0%5) 3M+RN 171.4 2.4%6) Amphenol 153.2 2.1%7) JAE 134.7 1.9%8) Hirose 135.8 1.9%9) ITT Cannon 119.7 1.7%10) T&B 84.5 1.2%

JAE

ITT

T&B

* includes Interconnection

1999 SAM = $7.17B


I&I - Company vs MarketI&I - Company vs Market

CAGR = 7.1%

MARKET

CAGR = 25.2%

Company

I&I - 2000SAM = $8.4B

Americas35%

Europe33%

Asia32%

I&I - 2001SAM = $9.0B

Americas35%

Europe33%

Asia32%

I&I - 2000Total Sales = 155M

Americas29%

Europe56%

Asia15%

I&I - 2001Total Sales = 194M

Americas29%

Europe57%

Asia14%


Source: Bishop


I&I - Sub-SegmentsI&I - Sub-Segments

MarketSize

GrowthRate

Instrm

Industrial

Medical

RockwellEmersonHoneywellEatonHitachiSiemensABB

AgilentTektronix

FlukeTeradyne

SchlumbergerAgilent

MedtronicGE Emb

Comp

MotorolaSUNIntel

OfficeEquipment

HPXeroxPitney BowesKodakHarris/Lanier

2B

1B

5% 10%

Source:Bishop


I&I - Key Market TrendsI&I - Key Market Trends

Utilizes standard technologies and interconnects from other

segments, primarily Data Segment

Has specialty connector needs particularly in Medical and

ruggedized applications

50% of all connectors purchased through Distribution

Industry moving to standard platforms - Windows/Intel

More and more vendor based designs - COTS (Commercial Off

The Shelf) initiative

Moving to digital technology from analog

Can be highly specialized and require customization



Sa

les

KK

Eu

ros

I&I - Key ProductsI&I - Key Products

0

10

20

30

40

50

60

BC M Pc D MP CA P Q S Di Ds Us Hc MJ

2000

2001

Top 15 = 68%37%

26%26%27%40%36%8%22%18%13%19%7%

38%

39%

Std Margin%


Memory

GROWTH EMERGING

Backplane

I/O

Other

RIMMDIMM

cPCI

MATURE

PwrBlade

Brd to BrdMegArray

Industrial - Product RoadmapIndustrial - Product Roadmap

DIN

0.8 mm BTB

PwrBay

SO DIMM

IEEE 13860.5 mm BTB

DDR DIMM

Conan

D-subs

RF

PCMCIA

PC/104

Sockets

VHDCI

USBSCSI

CompactFlash

Millipacs

POF


HS HM

HS Link1394

PACE program

1394b



Sa

les

KK

Eu

ros

I&I - Key AccountsI&I - Key Accounts(includes CEM derived demand)(includes CEM derived demand)

0

1

2

3

4

5

6

7

8

9

Ag Av S Nt PB Sh Ab Hy R As Ht Al

2000

2001

Top 12 = 15%


I&I - Success FactorsI&I - Success Factors

Select, focus on target opportunities that are large volume wins

Work the distribution network

Bundle connectors and value-added

Leverage globally, among all groups, and utilize programs such

as Basics

Design and manufacture in low-cost regions


I&I - SWOTI&I - SWOT

Product breadth across SBGs

Offer value-added supply (breadth)

Strong global Distribution network

Global supply capability



Little focus on segment

Well established incumbents

RF product line, terminal blocks

Lack products to serve some Standards: 1386,

PC104

Non user-friendly website

Leverage entire product line

Basics+ program initiative

Strong press-fit offerings D-sub, DIN, 2mm

Good margins

Increase Distributor share

Expands Basics+ approach to other products

Samtec offering better service level


Strategies & ChallengesStrategies & Challenges


Strengthen leadership in Communications segment through high-speed

copper and fiber optic developments and technology “partnerships”

Increase margins through aggressive product management and

manufacturing cost reduction

Leverage and sustain customer intimacy to provide complete

technology and Value Added solutions

FCI Electronics - Strategic DirectionFCI Electronics - Strategic Direction


Establish financial structure and performance competitive

with industry leaders.

Improve business balance by selective penetration in

segments other than Communications Consumer focus on mobile phone and handheld devices

Data focus on wireless computing and mid to hi-end servers

I&I penetration through distributor sales

FCI Electronics - Strategic DirectionFCI Electronics - Strategic Direction


To reduce TTM/TTV by optimizing product and process

development and resource allocation

To establish skills and capabilities at low cost labor sites needed

to effectively transfer production from higher cost manufacturing

operations

To establish processes and systems needed to provide timely and

accurate data needed to support business understanding and

decision making

FCI Electronics - Key ChallengesFCI Electronics - Key Challenges


To establish customer relationships and sales channels needed

to further penetrate Data, Consumer, and I&I market segments

To align operating and cost structure to support business and

financial objectives

To continue customer intimacy at key Communications OEMs

while establishing preferred supplier status with CEMs

FCI Electronics - Key ChallengesFCI Electronics - Key Challenges


Financial PlanFinancial Plan

January 26, 2001

87


* 2000 budget exchange rate.** 2001 budget exchange rate.

2001 EBITDA BUDGET2001 EBITDA BUDGET

(Euros in millions) 1999* 2000* 2000R** 2001B**

Sales 1,112 1,428 1,536 1,709

Gross Earnings 348 442 475 547% of Sales 31.3% 31.0% 31.0% 32.0%

Planned Cost 235 273 294 332% of Sales 21.1% 19.1% 19.1% 19.4%

Operating Income 113 170 183 216% of Sales 10.2% 11.9% 11.9% 12.6%

EBITDA 180 245 263 314% of Sales 16.2% 17.1% 17.1% 18.4%

88


OPERATING CASH FLOWOPERATING CASH FLOW

2000 B 2000 A 2001 B

EBITDA 225 245 314

Change in Reserve (16) (9) (2)

Change in OW/C (11) (21) (26)

Net CAPEX (104) (126) (174)

Operating Cash Flow 94 89 112

89


CASH TO CASH CYCLECASH TO CASH CYCLE

1999 2000B 2000A 2001B 2003P

Americas 97 86 82 78 82

Europe 90 76 76 101 95

Asia 64 86 30 55 81

Total 93 93 77 91 95

90


2001 BUDGET BY SEGMENT 2001 BUDGET BY SEGMENT

2001 2001 2001 2001(Euros in millions) Budget Budget Budget Budget

Trade Sales 1,360.0 311.3 38.0 1,709.3

Gross Earnings 473.9 67.4 6.1 547.4 % Sales 34.8% 21.6% 16.0% 32.0%

Planned Costs 274.7 47.3 9.7 331.7 % Sales 20.2% 15.2% 27.1% 27.1%

Operating Income 199.2 20.1 (3.7) 215.7 % Sales 14.6% 6.5% -9.7% 12.6%

EBITDA 287.4 28.9 (2.2) 314.0 % Sales 21.1% 9.3% -5.8% 18.4%

Value Connectors Fiber Optics Electronics

91


* 2000 budget exchange rate.** 2001 budget exchange rate.

EBITDA PROJECTIONEBITDA PROJECTION

(Euros in millions) 1999* 2000* 2000 R** 2001 B** 2003 P*

Sales 1,112 1,428 1,536 1,709 1,793

Gross Earnings 348 442 475 547 633 % of Sales 31.3% 31.0% 31.0% 32.0% 35.3%

Planned Cost 235 273 294 332 352 % of Sales 21.1% 19.1% 19.1% 19.4% 19.6%

Operating Income 113 170 183 216 281 % of Sales 10.2% 11.9% 11.9% 12.6% 15.7%

EBITDA 180 245 263 314 379 % of Sales 16.2% 17.1% 17.1% 18.4% 21.1%

92


SAP3 2000 2001*1999 1,1122000 1,2602001 1,349

1,4282002 1,496

1,5702003 1,659

SALES

SAP3 2000 2001*1999 1802000 231

2452001 271

2892002 3092003 351

EBITDA

VERSUS SAP3VERSUS SAP3

* 2001 budget adjusted at SAP3 exchange rate

93

1 F C IF C I Electronics SBG - January 26, 2001 Global Business Review 2001.

Documents

Transcript of 1 F C IF C I Electronics SBG - January 26, 2001 Global Business Review 2001.