Global Business Review 2001

1
Global Business Review 2001
2
Agenda

• 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

3
Global Overview
4
Company - Global Sales
1999 Sales 1,190 M
29
2000 YEF 1,536 M
11
2001 Budget 1,709 M
5
Company - Global Outlook by Segment
All values in M
6
Company vs Market
MARKET
CAGR 9.2
Source Bishop
Company
CAGR 11.3
6.4 share
6.5 share
7
Company - Sales by Channel
1999 Sales 1190 M
2000 YEF 1536 M
2001 Budget 1709 M
8
Global Top 15 Key Customers(includes CEM derived
demand)
Top 15 64
Std Margin
34
Sales KK Euros
29
38
34
31
32
45
45
39
29
25
26
10
15
34
All values in M EUROS
9
Global Top 15 Key Customers
Top 15 52
Sales KK Euros
CEM
DIST
All values in M EUROS
10
Product Groupings
Metral Millipacs DIN Fastech PwrBlade Micropax Nor
con HPC SCA-2
CPCB Cable Assy BP Assy BusBar
D-Sub USB/1394 Combo Serpent PCMCIA Mod
Jack VHDCI Metagig SIMM/DIMM Smart Card
Basics Sockets Minitek CEE Mini
BTB MegArray FFC/FPC
11
Electronic Cabinet Packaging - Chassis
LEVEL 3
LEVEL 4
LEVEL 5
LEVEL 1 2
INTERCONNECT LEVELS
12
Global Sales by Product Groupings
2000
2001
40
Std Margin
Sales KK Euros
27
25
25
24
16
14
All values in M EUROS
13
Global Sales - Top Products
Top 15 76
Std Margin
39
Sales KK Euros
13
37
18
44
33
23
24
32
7
39
26
19
26
All values in M EUROS
14
Segment Summary - Global Market
10B
Market Size
Mobile Comp PC Servers Storage Peripherals
Instrumentation Process Control Embedded
Comp Medical Office Equip
II
Telecom Datacom Wireless Infrastructure
COMM
Mobile Phone Mobile Equip Set Top Boxes Modems DSC
CONS
1B
Growth Rate
10
5
Source Bishop, except Mobile Phone in Consumer,
not Communications
15
Applications Market Drivers
16
Market Drivers
e-Infrastructure for e-Commerce
Network Traffic
Data
Voice
Time
1998
2000
2003
IDC
1998 - 2003 Internet users 4X 1998 - 2003 Data
traffic 20X
PERFORMANCE REQUIREMENTS DOUBLE EVERY YEAR!
17
End User Applications
18
Bandwidth to the Users
19
Communications Network
20
Market Trends
INTERNET
21
Network Revolution Optical
BANDWIDTH
22
Product Trend
INSTALLATION POPULATION
DEREGULATION
IP Networks (packet switched)
BANDWIDTH DEMAND
Fiber Optics
HS Mezz
Metral 3000
InfiniBand
Metral 2000
MicroCN
Metral 1000
HSSDC2
Millipacs
Metral
Cat 5e
Cat 5
Fastech
Cat 3
Norcon
PSTN Networks (circuit switched)
DIN
TIME
1975
1985
1995
2000
2003
VOICE E-MAIL FILE TRANSFER
GRAPHICS MUSIC VIDEO
23
System Design Challenges

• Bandwidth Density
• Cost
• Time to Market/Volume
• Modularity/Scalability
• EMI
• Power/Cooling
• Inter/Intra Cabinet Connection
• Design re-use / Standardization

24
Level 2 Product Roadmap
Data (BW) Consumer (Density) Segments are
Drivers
LGA
Micro PGA
PGA
BGA DIMM
SO-DDR DIMM
Density
RIMM
SO-DIMM
DIMM
DDR DIMM
SD
PCMCIA
SIMM
PLCC
SOJ
Smart Card
100
10
1000
1
10000
Performance (Mb/sec)
25
Level 3 Mezzanine Roadmap
Communication (BW) Consumer (Density) Segments
are Drivers
MegArray
BergStak 0.8
Density
BTVM
Ribcage
Conan
Minitek
Dubox
10000
Performance (Mb/sec)
26
Level 3 Backplane Product Roadmap
Communication (BW Density) Segment is Driver
Metral 3000
Metral 2000
Metral 1000
Metral 8 row
Millipacs 8 row
Millipacs 5 row
InfiniBand SpeedPack I/O
Density
Metral 4 row
HPC
DIN
10000
Performance (Mb/sec)
27
Power Connector Roadmap
Data (Perf) Communications (Density) Segments
are Drivers
Millipacs
Metral
PwrBlade
Density
VRM NG
PwrBay
D-Sub
DIN Type F/G
VRM
10
1
100
Performance (AMPS/contact)
28
Copper I/O Product Roadmap
Data (Perf Density) Segment is Driver
PARALLEL
InfiniBand 12X 10 GbEnet
SCSI-4
HIPPI-6400
SCSI 2/3 SCA-2
SCA-3
SCSI SCA
ATA
IEEE-488
Density
InfiniBand 1X
SERIAL
MiniUSB
SATA
SSA
FibreChannel
1394
GbEnet
Cat6/7
USB 2.0
Cat5
Cat5e
USB
RS-232
100
10
1000
1
10000
Performance (Mb/sec)
29
Fiber Optic I/O Product Roadmap
Communication Data Segments are Drivers
PARALLEL
MiniMAC
SMC
Fiber Density
MPO
SERIAL
SFF II
MTRJ
LC
MU
SC
FC
FT
30
Company - Market Position
2001 budget exchange rate
31
Communications
32
Communications - FCI Market Position
1999 SAM 4.70B
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)
3MRN 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)
TB 72.0 1.5
Tyco
Product Portfolio
FCI
Molex
FoxConn
ITT
Amph
Teradyne
3M
Elco
Radiall
Technology
33
Communications - FCI Electronics vs Market
MARKET
CAGR 10.8
Source Bishop
Company
CAGR 12.0
14.4 share
14.7 share
34
Communications - 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

35
Communications - Sub-Segments
Market Size
Nortel Lucent Fujitsu Alcatel NEC Cisco
Ericsson Nokia Motorola Nortel Lucent
1B
SWITCHING
TRANSPORT
ACCESS
Lucent Cisco 3Com Nortel
Alcatel Cisco Nokia Cu Mtn Nortel Lucent
Lucent Nortel Alcatel Marconi Cisco
DLC
Cisco Nortel Lucent Juniper
Nortel Lucent Ciena Cisco NEC
Alcatel Lucent Nortel Marconi AFC
DCS
Tellabs Alcatel Lucent
Growth Rate
30
10
20
36
SDH Market Share - EU
Metral
HM
FCI
Tyco
Metral
FCI
Metral
ITT / FCI
Metral
FCI
Metral
FCI
Marconi includes GPT, Bosch Nokia
Alcatel A1660, A1670 Marconi SMA, MSH Nortel
TN4X, TN6X
RHK
37
Base Station Market Share - Global
FCI
Metral
NEC
Metral
HM
FCI
Panasonic
FCI
Metral
Metral
HM
Tyco
Metral HM
FCI Tyco
HM
ERNI Tyco
Metral HM
Ericsson Pluto, HiCap Nokia UltraSite, Talk,
S8000 Nortel Metrocell, S8000 Lucent Flexent,
DoCoMo Alcatel BTS 3.5G, A9900 LMDS Samsung,
LGIC, ZhongXing
VHDM
Teradyne
FCI Perlos
Dataquest
38
xDSL Market Share - Global
ERNI
Lucent
Metral
FCI Tyco
cPCI
RN
Metral
Metral
FCI
Metral
FCI/Tyco
Metral
FCI
cPCI
ERNI
Metral
Metral
Press fit CEE
Marconi partner
Alcatel A1000 R3, R4, A1540 Nortel
UE-IMAS Nokia D50 SpeedLink Ericsson
ANX Samsung LGIC
FCI Tyco
FCI
Dataquest
39
Communications - Key HPLs
Top 15 86
39
Std Margin
Sales KK Euros
44
33
32
7
39
18
16
19
37
27
13
26
28
All values in M EUROS
40
BP PRODUCTS
41
Communications - 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)

42
Communications - Product Roadmap
GROWTH
EMERGING
MATURE
MegArray
Brd to Brd
0.8 mm BTB
Conan
HS Mezzanine
HS HM
Metral/Millipacs
Backplane
Series 1000/2000
0.1 Systems
cPCI
Series 3000
SFF FO
Multi Fibre Array
Fiber Optics
BP adapters
SC
GBIC
Cat 3
SMT, LED, Mag
RJ11
Mod Jacks
Cat 6 7
RJ45
Cat 5/5e
Series 1000/2000
Gigabit Link
HS cable
Metral
Series 3000
MetaGig
No active FCI program
PACE program
43
Communications - Key Accounts(includes CEM
derived demand)
Top 11 87
Sales KK Euros
All values in M EUROS
44
Communications - Top 15 Key Accounts
Top 15 73
Sales KK Euros
CEM
All values in M EUROS
45
Communications - 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

46
Communications - SWOT
STRENGTHS
WEAKNESSES

• 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

• 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

OPPORTUNITIES
THREATS

• 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

47
Data
48
Data - Company Market Position
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)
3MRN 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) TB 160.1 2.4 15)
Teradyne 44.2 0.7
1999 SAM 6.65B
Tyco
Product Portfolio
Molex
Hirose
JAE
3M
Teradyne
Amph
Yama
Technology
49
Data - Company vs Market
MARKET
CAGR 10.7
Source Bishop
Company
CAGR 1.7
4.1 share
3.8 share
50
Data - Sub-Segments
Compaq Dell IBM HP
Market Size
PC
Compaq Dell IBM HP SUN
Compaq IBM Dell HP SUN EMC
1B
Toshiba Compaq IBM Dell Fujitsu
Seagate Quantum Maxtor Fujitsu IBM WD
Mobile Computing
Palm Handspring SONY Compaq Casio HP
Peripherals
HP Lexmark Canon
Handheld
5
15
10
Growth Rate
51
Data - 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/networ
  ks
• 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

52
Data - Key HPLs
13
Top 15 86
Std Margin
38
Sales KK Euros
18
39
2
37
31
26
23
32
13
8
38
38
All values in M EUROS
53
Data - Product Roadmap
GROWTH
EMERGING
MATURE
RIMM
DIMM
Memory
SO DIMM
DDR DIMM
InfiniBand
USB
MetaGig
HS Cable
SCSI
Serial ATA
Mini USB
D-subs
VHDCI
1394
DVI
Metral 1000/2000
2mm Systems
Backplane
Metral 3000
0.1 Systems
InfiniBand
PCI
MiniPCI
Card Edge
VRM9
Slot 1
CardBus
LGA
Combo
PwrBlade
SCA2
UDS
Sockets
MegArray
Other
Merced
PowerPod
PwrBay
No active FCI program
PACE program
54
Data - Key Accounts(includes CEM derived demand)
Top 11 47
Sales KK Euros
All values in M EUROS
55
Data - Top 15 Key Accounts
Top 15 56
Sales KK Euros
CEM
All values in M EUROS
56
Data - 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

57
Data - SWOT
STRENGTHS
WEAKNESSES

• 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

• 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

OPPORTUNITIES
THREATS

• 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

• Double digit CAGRs
• Wins in Korea, Japan, Taiwan can be leveraged
• Localized designcompetitive production in Taiwan
  and China
• Increased bus speeds driving to Communications
  solutions
• Cable assembly upside
• expansion of ODMs in A/P

58
Consumer
59
Consumer - FCI Market Position
1999 SAM 0.9B Note Bishop estimates excludes
Mobile.
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
(stimates 1.5B including MP

Molex
Product Portfolio
Tyco
includes Mobile Phone
FoxConn
Hirose
JAE
Elco
Amph
3M
Hosiden
Technology
60
Consumer - Company vs. Market
MARKET
CAGR 8.5
Source FCI
Company
CAGR 23.2
7.6 share
8.6 share
61
Consumer - Sub-Segments
Market Size
Nokia Motorola Ericsson Panasonic Siemens Samsung
500M
Phillips Thomson Hughes Motorola/GI Scientific
Atlanta
Motorola/GI Thomson Nortel Terayon 3Com Efficient
Set Top Box
Residential Gateways
Modems
SONY Nintendo Sega Microsoft
Video Games
100M
includes xDSL, cable, analog
DSC Video
SONY Kodak Canon Panasonic
20
10
Growth Rate
62
Electronic Packaging - Handheld
RF- Integrated Antenna
LEVEL 5
LEVEL 5
I/O Accessory
Battery
Microphone
LEVEL 3
LEVEL 5
LCD
SIM
B t B
LEVEL 3
LEVEL 3
LEVEL 3
63
Consumer - 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

64
Consumer - Key HPLs
Std Margin
Top 15 98
24
23
Sales KK Euros
21
48
13
17
26
27
27
5
41
8
13
48
All values in M EUROS
65
Consumer - 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

66
Consumer - Product Roadmap
GROWTH
EMERGING
MATURE
HS FFC/FPC
FFC/FPC
Compression
Brd to Brd
0.8 mm BTB
LP BTB
0.5 mm BTB
Conan
BTVM
0.8 mm MegArray
Mobile I/O
USB
Mod Jacks
I/O
1394b
RF Antenna
1394
D-subs
Mini USB
CardBus
PCMCIA
MMC
Card Systems
CompactFlash
Smart Card
SDC
Other
Sockets
No active FCI program
PACE program
67
Consumer - Top 10 Key Accounts(includes CEM
derived demand)
Top 10 47
Sales KK Euros
All values in M EUROS
68
Consumer - Top 10 Key Accounts
Top 10 46
Sales KK Euros
All values in M EUROS
69
Consumer - SWOT
STRENGTHS
WEAKNESSES

• 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

OPPORTUNITIES
THREATS

• 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

70
I I
71
II - Company Position
1999 SAM 7.17B
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)
3MRN 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) TB 84.5 1.2
Tyco
Product Portfolio
includes Interconnection
Molex
JAE
Amph
Harting
ITT
3M
Hirose
TB
Technology
72
II - Company vs Market
MARKET
CAGR 7.1
Source Bishop
Company
CAGR 25.2
1.8 share
2.2 share
73
II - Sub-Segments
2B
Rockwell Emerson Honeywell Eaton Hitachi Siemens A
BB
Market Size
HP Xerox Pitney Bowes Kodak Harris/Lanier
1B
Agilent Tektronix Fluke Teradyne Schlumberger
Agilent Medtronic GE
Motorola SUN Intel
5
10
Growth Rate
SourceBishop
74
II - 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

75
II - Key Products
37
Top 15 68
Std Margin
Sales KK Euros
39
38
7
19
13
18
22
8
36
40
26
27
26
All values in M EUROS
76
Industrial - Product Roadmap
GROWTH
EMERGING
MATURE
RIMM
SO DIMM
DIMM
Memory
DDR DIMM
0.8 mm BTB
MegArray
Brd to Brd
Conan
0.5 mm BTB
PC/104
IEEE 1386
Millipacs
HS HM
DIN
Backplane
cPCI
D-subs
1394b
USB
POF
I/O
SCSI
HS Link
1394
VHDCI
RF
PwrBlade
PCMCIA
CompactFlash
Other
Sockets
PwrBay
No active FCI program
PACE program
77
II - Key Accounts(includes CEM derived demand)
Top 12 15
Sales KK Euros
All values in M EUROS
78
II - Top 15 Key Accounts
Top 15 21
Sales KK Euros
CEM
All values in M EUROS
79
II - 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

80
II - SWOT
STRENGTHS
WEAKNESSES

• 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

OPPORTUNITIES
THREATS

• 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

81
Strategies Challenges
82
FCI Electronics - Strategic Direction

• 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

83
FCI 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
• II penetration through distributor sales

84
FCI Electronics - Key Challenges

• 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

85
FCI Electronics - Key Challenges

• To establish customer relationships and sales
  channels needed to further penetrate Data,
  Consumer, and II 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

86
Financial Plan

• January 26, 2001

87
87
2001 EBITDA BUDGET
2000 budget exchange rate. 2001 budget
exchange rate.
88
88
OPERATING CASH FLOW
89
89
CASH TO CASH CYCLE
90
90
2001 BUDGET BY SEGMENT
91
91
EBITDA PROJECTION
2000 budget exchange rate. 2001 budget
exchange rate.
92
92
VERSUS SAP3
2001 budget adjusted at SAP3 exchange rate
93