february 2009 l.
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February 2009 - PowerPoint PPT Presentation

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February 2009 Forward-Looking Statement

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forward looking statement
Forward-Looking Statement

Statements at this meeting that are not historical are forward-looking and are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Forward-looking statements are based on currently available information and include, among others, the discussion under “Outlook.” These risks and uncertainties include those associated with the operation of our business, including the risk that customer demand will decrease either temporarily or permanently, whether due to the Company's actions or the demand for the Company's products, and that the Company may not be able to respond through cost reductions in a timely and effective manner; price cutting, new product introductions and other actions by our competitors; fluctuations in the costs of raw materials that the Company is not able to pass through to customers because of existing contracts or market factors; the availability of credit and general market liquidity; the challenges attendant to plant closings and restructurings, including the difficulty of predicting plant closing and relocation costs, the difficulty of commencing or increasing production at existing facilities, and the reactions of customers, governmental units, employees and other groups, the challenges attendant to plant construction; and the ability to realize cost savings from restructuring activities, as well as difficulty implementing the transition to a product-focused organization structure.

Other risks and uncertainties are set forth in Item 1A “Risk Factors” of the Company’s Form 10-K for the year ended June 30, 2008, and the Form 10-Q for the quarter ended September 30, 2008, which are incorporated by reference and in reports that Molex files or furnishes with the Securities and Exchange Commission. This release speaks only as of its date and Molex disclaims any obligation to revise these forward-looking statements or to provide any updates regarding information contained in this release resulting from new information, future events or otherwise.

connector industry
Connector Industry

An attractive industry – “especially for entrenched suppliers”

Total Connector Market Normal Growth 5-7%

Top Ten Market Share


$40+ Billion

Molex Share8%

Source: Bishop & Associates, Inc.

business model differentiation by two primary goals
Business Model – differentiation by two primary goals

Customers continue to reduce number of suppliers

“Make the Cut”

Customers favordesign partners fornew applications

“Win the Design”

make the cut
“Make the Cut”

Top 10Sales Ranking

ExistingcustomerrelationshipsGlobalcapabilitiesBroadproduct line

Speed and easeof doingbusiness



How toMake the Cut





“Win the Design” as a Design Partner to Global Technology Leaders

Approximately 75% of manufacturing and sales are outside of U.S.

to global technology leaders


Geographic Advantage in Asia/Pacific

(US$ in millions)


Malaysia 1987

India 1985


Hong Kong1983


- 38 Years in Japan- 25 Years in China

China 5


China 4

India 3


Singapore 1977

Japan 1970


China 2

China 3










growing end markets
Growing End Markets

(% of total sales)

Medical- Hospital productivity and home monitoring- Microminiature- Fiber optics

Telecom- Handsets- Infrastructure for internet and telecom- Same as data


Automotive- Higher content



Data- Storage - Servers- Notebook- PDA- High speed- Microminiature- Fiber optics



Industrial- Broad applications


Consumer Elect.- Digital electronics- Microminiature- Flex-circuitry- Antenna

molex s two part growth strategy
Molex’s Two-Part Growth Strategy
  • Leverage our solid position with industry leaders
    • #1 or #2 supplier
    • Major global companies that drive innovation and set standards
  • Target small and medium customers where Molex currently has little share
    • Identified 54 focus accounts globally
    • Well-known, industry leading companies with significant connector spend
    • Grow faster and increase our share with better margins
    • Expect 20% growth from these accounts in FY09
use our strong balance sheet to grow through acquisitions
Use Our Strong Balance Sheet toGrow through Acquisitions

Expect 30% of future growth to come from acquisitions vs. traditional 10%

Actively pursuing acquisitions to increase market share or for specific technologies

Product division structure helps

Expand Bill of Materials (BOM) ownership to create new opportunities and expand margin potential

Copper Flex Circuits – Flat flex circuitry

Polymicro Technologies – Fiber optics

AFlextech – Flat flex circuitry

HCS – Structured cabling

“Tuck-in” companies or “greenfield”

distribution channel yoy drop in dec quarter revenue
Distribution Channel- YOY drop in Dec quarter revenue

Factors Impacting Orders

Top Ten Customers- recent declines in actual or estimated sales







Industrial Production- YOY drop in period Sept - Nov





Weighted average decline


positives in a negative environment
Positives in a Negative Environment
  • Strong financial position
  • Cash dividend 44% CAGR last five years
  • Global diversification
  • Restructuring and cost reductions already in place