The Product Realization Company
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- Felicia Byrd
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2 The Product Realization Company A full-service EMS provider since 1980
3 Plexus Mission Statement To provide a complete menu of value-added design and manufacturing services, from which our customers can choose, giving them a competitive advantage in time to market, technology, flexibility and total cost.
4 Plexus: A Strong Balance Sheet* Cash & short term investments - $103 million Long-term debt - $27 million Shareholder equity - $388 million Total debt/equity ratio 7% Symbol (NASDAQ): PLXS * As of December 31, 2002; dollars in millions
5 Plexus Management Values Be passionate on meeting customer s needs Open and direct communication Ownership/empowerment Focus factory, team environment Continuous improvement Extensive use of metrics Attention to the fundamentals
6 Plexus Business Philosophy Focus on high technology, high reliability products Full suite of value-added services with multiple entry points for customer Industry experience Scalability Emphasis on outstanding customer service Product Realization
7 High-Tech, High Reliability Products Class II and III Medical Products (GE Medical) High-End Computing (Unisys) Edge Routing Switches (Unisphere Networks) Industrial Products (High reliability, redundant control)
8 Full Suite of Value-Added Services World-class design and test technologies New Product Introduction (NPI) Plus plays a key role in product and process optimization Higher level services accelerate time-to-market and strengthen strategic relationships Engineering NPI Plus Testing Manufacturing Sustaining Services
9 Industry Experience For technology-based, high-reliability products 14% 12% 5% 34% 35% Networking/Datacom Medical Industrial/Commercial Computing Transportation/Other Based on Q1 FY03 Sales
10 Networking/Datacom Segment Mix of established OEMs and well-funded emerging customers Technology building blocks speed up the product development curve Broad spectrum of Networking/Datacom applications includes: Optical Switching Edge Routing SONET Wireless Infrastructure Core Switching Broadband, etc.
11 Scalable Business Model Customer Development Technology Group Engineering Electronic Assembly Manufacturing Each business unit is focused on optimizing services through unique channels Scalable platform for growth Integrated customer development drives customer service excellence
12 Customer Service Excellence Won Technology Forecaster s Overall Service Excellence Award for Large EMS Company in 2001, 2002 and Earned total of Eleven Technology Forecasters Service Excellence Awards over last five years Won Medical Design Excellence Award 2001 and 2002, also a Supplier to a Winner in 2001 Won Industrial Design Excellence Awards in 2001 Plexus ranked 8 th in the Forbes Platinum 400 listing in 2002 Designer won Top Gun Hall of Fame Award at PCB Design West 2002
13 Global and Regional Product Realization Engineering Boulder, CO Nashua, NH Neenah, WI Portland, OR Raleigh, NC San Diego, CA Seattle, WA Livingston, Scotland Tel Aviv, Israel Penang, Malaysia Appleton, WI Boise, ID Boston, MA Chicago, IL Neenah, WI Richmond, KY San Jose, CA Seattle, WA Manufacturing Juarez, Mexico Kelso, Scotland Maldon, England Penang, Malaysia Xiamen, China Future Southern US Europe Asia
14 Outsourcing Provides Value OEMs average about a 15% reduction in total product costs through outsourcing (Booz Allen Hamilton, November 5, 2001) Outsourcing advantages include: Provides economies of scale Allows OEM to convert fixed costs to variable costs; improve return on invested capital (ROIC) Provides access to technology and intellectual property Frees resources to focus on core competencies Improves functional flexibility and scalability
15 Why Outsource to Plexus? Faster time-to-market for new products Company began offering manufacturing and engineering from its inception 350 product development engineers on staff Plexus pioneered the concept of Product Realization Technology building blocks Commitment to customer service Stable workforce
16 Plexus Engineering Engineering Value through World-Class Engineering and Product Realization Services
17 What Makes Plexus Unique? Comprehensive Product Realization Services Plexus Engineering capabilities position the company as the industry leader in Product Realization
18 Engineering Structure Engineering Product Development Neenah, WI Raleigh, NC Boulder, CO Seattle, WA PCB Development Portland, OR Nashua, NH San Diego, CA Livingston, Scotland Tel Aviv, Israel Test Development Neenah, WI Seattle, WA
19 Resources and Experience 11% 11% 5% 11% Verification/Sustaining Test PCB Design Signal Integrity Digital 7% 23% Analog, Optical, RF Software Mechanical 14% 3% Over 350 degreed Development Engineers, Designers and Technologists
20 Turnkey Product Development
21 Specialized Engineering Services Electrical design, analysis and layout Mechanical design & thermal analysis Software Test Development ASIC design
22 World Class Test Solutions Built-In Self Tests Boundary Scan Flying Probe In-Circuit Functional X-Ray Laminography Dedicated custom test stations Environmental Stress Screening (ESS) Automated Optical Inspection (AOI) Aware Test (ICT and X-Ray) Combinations of above
23 Example of Success Novoste Beta-Cath TM Radiation Delivery System Enhanced design and verified for CE marking and CSA in 7 months From concept to preproduction in only 17 months Rigorous design controls support successful PMA filing Created multiple product versions Designed 4 custom circuit cards including motherboard and synchronizer
24 Plexus Manufacturing Volume Manufacturing We are committed to providing integrated turnkey solutions utilizing industry-leading engineering capability and leading-edge manufacturing technologies to support our customer s time-tomarket requirements with a focus on quality, service, and flexibility.
25 Value-added Manufacturing Over 20 years experience manufacturing high technology, high reliability equipment Global and regional manufacturing locations available to meet our customer s unit cost and distribution requirements Utilize the Focus Factory concept to provide flexibility Highly qualified work force empowered to own the Focus Factory Plexus Technology Roadmaps ensure customer access to leading-edge manufacturing solutions
26 What Makes Plexus Manufacturing Unique? Materials Solutions Processes Advanced Manufacturing Solutions Test Solutions Quality Focus Factory Methodology Customer Teams Mix Volume
27 Materials Solutions Provide multiple material management models for customer s unique requirements Distributor In-House Stores International Procurement Stores (IPOs) Bill of Material Obsolescence Software predicts component life cycle Component Engineering support Proven cost improvement methods
28 Processes Maintain leading edge manufacturing processes to meet diverse customer needs in appropriate industry segment Surface mount technology Double Pass Reflow Pin-in-Paste (Intrusive Reflow) PTH Auto Insertion Conformal Coating Mechanical Assembly Backplane (Compliant Pin) Optical fiber splicing RF product assembly
29 Test Solutions Comprehensive suite of test solutions include: Flying Probe Manufacturing Defect Analysis (MDA) ICT Functional Test X-Ray Laminography Aware Test (ICT and X-Ray combination) Environmental Stress Screening (ESS)
30 Design for Excellence (DFX) Our design and manufacturing experience has been incorporated into a set of DFX guidelines Results include higher yields and increased throughput Encompasses Design for Manufacturability (DFM), Design for Testability (DFT), and Design for Assembly (DFA)
31 Quality Plexus Quality system operates on Management by Metrics philosophy Key process steps are monitored based on Defects per Million Opportunities (DPMO) Strong management commitment to continuous improvement through internal Six Sigma program (COBRA) Registrations include: ISO 9002, QS9002, EN 46002, and FDA Class I, II, and III Quality data accessed by customers using a secure Plexus website
32 Focus Factory Environment Plexus will configure a Focus Factory to meet each customer s unique needs in the areas of Technology Volume Mix Material flow - Pull, POU, IPS, CFM Box build and configuration Agency Requirements Benefits include: Continuous improvement through dedicated personnel Maximum flexibility Adaptable to customer changes in product mix or materials strategy Accommodates rapidly changing customer needs
33 Lean Manufacturing Dynamic customer base requires manufacturing partner that is extremely flexible. Create a culture that is focused on reducing the amount of non-value add functions and substantially shorten the overall lead time that benefit both Plexus and its customers. For the customer, lean manufacturing drives: Reduced lead time (time to market) Lower overall product cost Increased flexibility frequency and reduce risk Enhanced quality product and procurement process
34 Customer Teams Dedicated cross-functional team Empowered to manage their Focus Factory Responsible for developing and maintaining a successful relationship with the customer Team Functions: Strategic Customer Manager Program Manager Focus Factory Manager Quality Materials Finance Documentation Control Administrative Technical Support
35 Sustaining Services to complete the Product Realization mission Direct ship to end customer Warranty and depot repair Material obsolescence management Product upgrades Toll free phone support Failure analysis Warranty and service reports
36 Example of Success Ethicon Endo-Surgery Mammotome Breast Biopsy System Facilitated FDA approval of Class II device in 59 days Aggressive manufacturing for production goals Product to market in 18 months 2 full-custom in-circuit test fixtures 5 full-custom functional test fixtures Dedicated manufacturing and sustaining production support team
37 When our Customers win, We win
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