digitizing industrial and energy - s21.q4cdn.com britt. president, industrial and emerging...

Doug BrittPresident, Industrial and Emerging Industries (IEI)

Digitizing Industrialand Energy

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FY14 FY15 FY16 FY17

3.84.5 4.7 5.0

FY14 FY15 FY16 FY17

FY17 Overview

12.3%CAGR

6.1%Growth

9.5%CAGR

3.6%OP%

$2B+record bookings

72+new logos

26%Sketch-to-ScaleTM

revenue

Revenue($B)

OP($M)

Transitioning Into The Age of Intelligence

Cloud Connectivity

IndustrialSmart Cities

Digital Energy

Connected Cars

Industrial Automation

Industry 4.0

Digital Health

Consumer

Smart Appliances

Wearables

Home Automation

Home Monitoring

Smart TVs

Smart Clothing

IEI Key Markets

LightingSolutions

EnergySolutions

Lifestyle and Appliances

Capital Equipment

$540BTAM

$55BTAM

$500BTAM

$505BTAM

Source: TAM market size for 2020 based on internal research

ControlsMechanicals AnalyticsHuman Machine Interface (HMI)

ConnectivityPower Electronics

Capital Equipment

12New Logos

~$250MBookings

85Active Accts.

Capital Equipment Industry 4.0

Past Hierarchical and Centralized

Master Control

Machine

Analytics

Controls

Evolving NowIntegrated and Decentralized

Analytics

Machine

Controls

In 2016, only 10% of machines were connected and 8% of factory tasks were automated

By 2025, most machines will be connected,25% of factory tasks will be automated and

~50% of installed base will be replaced

Capital Equipment

Source: BCG, McKinsey, Cisco Research

Industry 4.0

Food Packaging

MechanicalsThermalAnalysis

StructuralAnalysis

Connectivity Controls

Test and Measurement

TestMechanical MechanicalElectronic Cards

Integration

Capital Equipment

Lighting

20+New Logos

~$150MBookings

25+Active Accts.

Today, Lighting accounts for almost 19% of global electricity use

By 2030, LED will replace most incandescent and florescent lighting

Transitioning to smart lighting solutions will reduce lighting costs by >53%

Lighting

Source: Philips and HSBC Research

OutdoorCommercialIndustrial

Lighting

Lighting

Luminaire Smart ControlsLight SourcePower Source

Energy

30New Logos

~$750MBookings

62Active Accts.

Energy

By 2030, solar will power 13% of the world

Today, only 1.2% of worldwide electricity generation comes from Solar

Source: GreenTech Media, IRENA, IEA research

Solar Tracker

PowerElectronics ControlsMechanicals

Solar + Storage

Analytics ControlsMechanicalsPowerElectronics

Energy Storage Platform

Analytics ControlsMechanicals

Energy

Energy

Launching Yield Enhancement recurring revenue services to the market in FY18

Artificial Intelligence for Energy

Lifestyle and Appliances

21New Logos

~$1.1BBookings

46Active Accts.

Connected Appliances will help transform the way we live

Lifestyle and Appliances

Source: Gartner and Quartz Research

We are at the forefront of automated and autonomous products connected

to digital supply chain

Consumers value time and health

Large Appliances

HMIControlsConnectivity

Small Appliances

ToolingDesign

Power Electronics

HMIConnectivityControls Mechanicals

Lifestyle and Appliances

In Summary

4–6%OP Range

10%Revenue Growth

Actual

$2B+Record Bookings

» The industrial market is digitizing

» IoT disruption is reshaping business models

» Massive opportunities across key industries

» Flex is well positioned to serve these markets

Targets