Beyond Hardware to Solutions Paul Humphries President, High Reliability Solutions (HRS)
Global megatrends shape the face of the world 1
Growing World Population By 2030, 8.3 billion people will live on earth Aging Society By 2030, the median age will increase by 5 years to 35 years Increasing Urbanization By 2030, 59% of the world's population will live in cities Explosion of Connected Devices By 2020, the Intelligence of Things will bring 50 billion connected devices 2 Roland Berger (2011), IDC (2015
Our Strategy is Uniquely Positioned» Focus on mega trends and high growth vectors» Combine innovation, disruption, collaboration and deep industry expertise to drive differentiation» Leverage The Flex Platform to develop unique Sketch-to-Scale TM solutions» Build capabilities to navigate the transition from products to intelligent systems and solutions
Automotive
Megatrends Are Driving Major Changes Safety and security Infotainment embedded and smartphone integration Software and data management Context intelligent services conditional automation, 5G SAE level 5 Fully Autonomous 2010 2015 2020 2025
Our Approach is Deliberate 150+ years of combined automotive product design and build experience, with hundreds of products brought to market Top 100 Global Automotive Supplier according to Automotive News s 2016 Rankings Platform Leverage the Flex Platform to innovate new Sketch-to- Scale and unique solutions Design and Build footprint to support low cost solutions, regional expansion and capacity growth
Changing The Game Acquiring Capabilities and Product Solutions Securing Strategic Innovation Partnerships Saturn Electronics (2012) Advanced Solenoids and Specialty Harnesses Aito Touch (2016) Haptic Touch HMI Systems MCI International (2015) Smart Actuators Savari (2017) V2X Solutions AGM Automotive (2017) Interior Lighting and Electronics Systems, Textiles Caruma Technologies (2017) Computer Vision, Deep Learning and Big Data Analytics
Increasing The Sketch-to-Scale Portfolio Autonomous Connectivity Clean Tech Vehicle Electrification Wing cameras Server compute pods Innovative HMI Wearables Smart sensors AGS actuators Battery cables Wireless charging Ambient lighting Smart textiles / Floor mats ADAS modules Video radar decision units Cloud services V2X modules Active surfaces DC-DC converters Energy recuperation Mirror actuators Lift gates Projection lighting Sensor fusion boxes Smart gateway modules Infotainment and displays Interior cameras Solenoids Wire harnesses Overhead consoles Dome lights
Accelerating Automotive Growth Estimated Annual Revenue $500M run rate FY12 FY13 FY14 FY15 FY16 FY17
Levers of Automotive Growth # of vehicle models $ content per vehicle 450 500 118 134 148 185 88 98 180 43 FY11 FY14 FY17 FY18 FY11 FY14 FY17 FY18 FY19 FY20
Sustaining Double Digit Automotive Growth Revenue >10% 3-year CAGR +35% 11 year CAGR $2.3B $1.0B $83M FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Medical
Megatrends Are Driving Major Changes Traditional hospital setting dominates delivery of care Doctor-centric provision of care, regardless of point of care Proliferation of retail clinic points of care; leverage basic EMR systems Healthcare delivered in a home setting Care providers leverage advanced algorithms in clinical decision making 2010 2015 2020 2025
Our Approach is Deliberate 100+ years of medical device design experience and 75 products brought to market Design and Mfg. footprint to support low cost solutions, regional expansion and capacity growth Platform Leveraging the Flex Platform to innovate new Sketch-to-Scale and unique solutions Industry Leading solutions for connected medical devices to facilitate patient adherence and remote monitoring
Connectivity is the Bridge to Digital Health Hospital Based Acute and critical care New therapies for patients Added Connectivity Home based connectivity Increases safety and compliance in homes based therapy To Home Based Mobile disease management and monitoring Pharma companies need home based technologies to deliver drugs Phase I: Data Generation Smart devices enable data collection Phase II: Integration and Scaling Scalable platform broadly supports digital health solutions, with clinical workflow and impacts patient management Phase III: Insight Generation Medical grade connectivity platform converts raw data into actionable insight
Medical Bookings Recovering Estimated Annual Revenue $500M run rate FY12 FY13 FY14 FY15 FY16 FY17
Back on Double Digit Trajectory Revenue +20% 11 year CAGR $1.8B 10% 3-year CAGR $1.0B $242M FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
HRS Has Our Pedal to the Metal and Our Finger on the Pulse 3,557 3,899 4,149 228 295 334 6.4% 7.6% 8.1%» Thoughtfully positioned across the important megatrends» Powered by deep industry expertise» Unique competitive position created FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Revenue OP$ OP%» Long term structural growth is intact