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Flextronics Photonics Light Years Ahead

02 03 04 06 09 10 Whats cooking Light Years Ahead In the Spotlight TDI Batteries The Art of Listening Flextronics Helps Sinking Town

Whats cooking

Most of us read the same newspapers and hear the same information about the state of world economies today. Despite hearing that business conditions are expected to improve soon, the fact is that we, and many of our customers, are still faced with very tough business Humphrey Porter, President Flextronics Europe conditions almost everywhere. Some business sectors, for example the telecom sector, are now not expecting any up turn until 2004. Having said that, Flextronics is working in a very interesting business sector where the tougher the business is, the more our customers are looking for help to find better, cheaper and more efficient ways of working in order to improve their results. This means we are being asked by many of our customers to provide more and wider services for them. This gives us really exciting opportunities. I spend a lot of my time in front of our customers today and I find they have a wide range of different problems as well as great opportunities. Compared with the past, they are now far more willing to really think out of the box with us. This makes the business we are in so interesting. We are working right now on a number of projects with some of our customers where, by combining all the skills and capabilities we have in our operations around the world, we are able to offer dramatic savings, previously not thought possible. I have just had a review of business with the sales team and despite the business conditions we face, we have won a substantial amount of new business this year.

All of this means that our business will improve and that we have made many good decisions in the past in deciding what we need to put in place to make us a strong company. We also have a few customers who are doing really well in their sectors. However, right now many of our customers are still suffering badly as a result of the economic downturn; which effects our business also. For this reason, we have to be very serious about cutting costs, working as a team, doing things differently and above all, listening to our customers. Our customers have plenty of alternatives today and therefore competition is tough. We cannot put a high enough value on our excellent customer relationships but the results of a poor one becomes obvious very quickly. Meanwhile, as I said, it is very important that we all continue to be serious about reducing costs. Already a lot has been communicated to you on this from Michael Marks in Views from Here as well as from your Business Group managers. Please really take actions here, reduction of travel costs for example, telephone costs and all kinds of avoidable costs. We need to improve our financial performances - and it is well within our capabilities to do so. Some of our sites and Business groups have already made tremendous progress and are back to world class performances with almost all of their parameters, others still have a lot to do. Lets work towards the time when business conditions will improve and by then, many of the improvements we make together will be part of our normal way of working. These tough times are an opportunity to become an even stronger company.

Flextronics Photonics Light Years Ahead

Has it ever occurred to you, that while you are going about your everyday business you are surrounded by Photonics? Maybe its time to dust off those physics textbooks! For many of us, less versed in physics, Photonics sounds something more on par with rocket science. However, Photonics technology is everywhere!

Just making a phone call, watching cable TV or using the internet involves a signal that is being carried via Photonics somewhere in the network. So, how does it work? Photonic Transmission Systems, more commonly referred to as Fiber Optics, use pulses of light or photons to transmit information over a piece of glass the diameter of a human hair! The system begins with a laser that flashes on and off billions of times a second, which creates the binary coding, 1s and 0s, that represent the information. The light then travels down the fiber at the speed of 200,000 Kilometers per second to a receiver, which then decodes the information. For example, an OC-48 system transmits at a rate of 2.5 Gb/S. This is equivalent to about 32.000 simultaneous telephone conversations, all traveling on the same signal! Photonics is still, an emerging technology. This definitely is not a bad thing and is in fact advantageous for an EMS provider like Flextronics. It allows the company to step into new markets and further enhance their expertise. The outsourced manufacturing of Photonics is currently a relatively untapped field and is predicted to become a major portion of business within Flextronics. Consequently, Flextronics is continually striving to increase its technology and know how to keep one step ahead, in meeting the evolving demands of the optical components industry.

The Photonics industry requires large capital investment, making the outsourcing model very attractive for the Photonics and Fiber Optics industry. OEMs (Original Equipment Manufacturers) need to cut costs and choose to outsource to providers who have the relevant technology. Businesses like Flextronics Photonics offer a better price on a larger scale than the OEMs could achieve themselves. With bandwidth requirements doubling every six to nine months, optical component and optical systems providers have a great task on their hands to get products to market on time, at the right cost. This is good news for Flextronics! Flextronics has Photonics component manufacturing sites in the USA, North Carolina, Doumen China, Gdansk Poland, with modular assembly expertise in the USA and Ireland. Recently, Flextronics Cork, hosted Irelands first optical Manufacturing forum where Flextronics was able to introduce itself on the European Photonics scene and showed its capabilities as an EMS Photonics provider. Flextronics sites in Ireland focus on, assembly, test and inspection of products with optical functionality (board and box assemblies). The main manufacturing capabilities lie in optical component, installation on boards, fiber routing as well as fiber optic fusion splicing. That means the connection of two optical fibers by melting their ends to join together. In the area of testing, their strength lies

Kind regards

Humphrey

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STEFAN LAGER
I am looking forward to being able to focus on the Ericsson account in my new function I believe, making changes, every so often, can be good for a company. Changes are not only beneficial for the business at large but also for both customer and individual. Different phases need a different focus and management. The first year of the integration of the Sony/Ericsson account was challenging but at the same time fun. Ron Tarter will now bring more of his operational experience to the account, while my future focus will be Ericsson. Even though our company offers a broad range of services, our focus is still, supply chain management. Selling the total solution can sometimes be difficult and needs a different approach, compared to selling components or part of an offering. Im looking forward to being able to focus on the Ericsson account and support Humphrey Porter in my red box function.
HERBERT SCHOEFFMANN GERNOT WEISS

HERBERT SCHOEFFMANN
I believe that this new function will definitely help to improve responsiveness. In our experience we have found, that winning business is not just related to the sales people alone but is very much a result of a team effort. Having a background in sales and operations, makes it a lot easier for us to be customer focused. I believe this new function will definitely help improve responsiveness and customer service. To me, it is a very logical step into the future and a step towards improving our services. Furthermore, there are always special tasks that arise in our business. It could be anything ranging from acquisitions, strategic planning aspects, development of new business segments, special projects to just mere trouble shooting. Experience in both areas is paramount for success.

with a series of techniques such as bit error rate (BER), Extinction Ratio and Power Measurement testing which is used to verify products function as designed. Quality being an absolute priority, Photonics, Ireland, has introduced a clean, clean, clean inspection programme to ensure that all fiber optic connector terminations are kept in a condition of optimum performance. What does the future hold for Flextronics Photonics? Watch this space! The business has undoubtedly already grown over the last three/four years. Although it is still early days, Flextronics is already making an impact on the Photonics world and is poised to continue!

STEFAN LAGER

HUBERT HOEFFERER

HUBERT HOEFFERER
Our aims are to be fast and flexible. The main objectives of the European supply chain department are: to reduce our overall financial exposures and liabilities and to strengthen our competitive position in respect to logistics, in Europe. Our further aims are to improve our levels of service by delivering products on time with agreed quantities and quality. Also, to be fast and flexible in our processing of orders and reducing supplier lead times and keeping cancellation times, down to a bare minimum. Financially speaking, we endeavour to keep the cash conversion cycle close to zero and work as much as possible with foreign capital, in other words, reducing outstanding payments. It is, of course, not a complete list of what we do but reflects what we see as our priorities.

GERNOT WEISS
Being a red box guy really suits me! My daily job includes three main areas: management of the global account for Epson, relationship building and the management of new customers. Currently, we are starting to manufacture printers in both Guadalajara, Mexico and Nyiregyhaza, in Hungary. Another aspect of my job is supporting local teams, by bridging the gap between sales and operations. Being an interface between customer and our manufacturing plant, means that I handle numerous activities ranging from simple price negotiations to complex contract discussions. Last but not least, I work on special projects, like acquisitions. That is real fun! Being a red box guy really suits me! Red is my favourite colour! It also reminds me of Ferrari, Manchester United and Bayern Mnchen. Red brings back memories of Ecoplast, where I started my career with Neutronics. Whether it is really a creative name, might be open for discussion, but in my view the multitasking nature of the red box function requires a lot of creativity!

>>> In the Spotlight

Fast Facts
Flextronics Photonics provides the following services: Advanced photonic packaging design Custom process/materials development Volume manufacturing of active & passive photonics Proprietary automation systems for photonic manufacturing Comprehensive test development
Flextronics Photonics Customers Axsun Chahaya Pemstar Innovacom http://www.flextronics.com/photonics/default.asp

Recently, Humphrey Porter announced the appointment of the four senior managers who would head up the red box function. We asked these European Executive Directors how they are facing this new challenge.

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TDI Batteries . Up and Running in No Time

Besides TDI Batteries ...
Flextronics Zalaegerszeg is working closely with many other onsite partners including

KeyTec Metal GPS Foxlink RDC Svenska Kartong Schneider & Koch NEFAB

Metal and plastic precision components Test equipment fixtures and software Cables and power supplies Flash programming Packaging Test software Packaging solutions

The Story begins

A record Launch A Hive of Activity And productivity is what it is all about! Kevin Carson who was the joint managing director of the TDI facility in Zalaegerszeg while they were being set up, almost hesitated for words as he described the exhilaration one feels, to have concept on a piece of paper and then see it become a living reality, with results: Only just The beginning Despite, languishing in the success of the last few months, TDI has not become complacent, already looking to the future, and a promising future at that! Staying true to their core values, their pursuit for excellence is insatiable:

TDI (Telecommunications Devices Inc.) Batteries, a subsidiary of Tyco, has a presence that spans the globe. Recently, TDI signed a contract to sell battery packs to Flextronics, which would be used for the manufacturing of telecommunication products. Having already established operations in the US, Scotland, Malaysia and China, TDI decided to stretch out across Europe and set up operations in Hungary, on the Flextronics Industrial Park, based in Zalaegerszeg. The TDI Zalaegerszeg site, started production on 11th February 2002. The main focus of the plant is high volume manufacture, mirroring its other high volume plant, based in Shanghai, China.
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Kevin Carson, European Director of Operations-Europe, depicted the run up to the final first week of production:

When we came here, we quickly identified premises. I visited three times in January for three days at a time. By my third visit, I signed the lease and then four weeks later, we were building products! All I can say is that the support I got from Flextronics was excellent! We are, also very aggressive and dynamic and never take no for an answer. We got tremendous support! There were of course, negotiations but at the same time no barriers were put up.
TDI made use of Flextronics people such as Kornel Majoros, Director for Legal and Taxes, who helped with customs and logistics questions. They also received Human Resources (HR) support for recruitment. The phenomenal speed of the Flextronics HR team is captured perfectly in Kevin Carsons statement:

Our belief in the relentless pursuit of continuous improvement in our business, drives us to become the most responsive, highest quality, lowest cost producer.
The partnership with Flextronics is still very much part of this winning formula. TDI expects its workforce to increase dramatically to 400 or 500 by the end of the year. Flextronics has already finished working on the social facilities that will accommodate the expected growth! Kevin Carson further elaborates on how, through moving to the industrial park, TDI also expects to see growth in business as a direct result:

It more than exceeded my expectations. We literally signed the lease, and then had a working facility we could just walk into, the only work we had to do was finishing jobs So all we needed to do was get our materials, tools and labour together and build something! Because of the partnership between Flextronics and TDI we got into mass production very quickly, it was a good learning curve and there was high quality from the first weeks production. We built 12480 battery packs in the first week and were able to ship to one of our customers by the end of that week! It was very fast, that was a great achievement!

If you remember, at the time that we signed the lease, I was the only one sitting here! Now, we have sixty three employees!

We also have the opportunity to open up the door to other companies. You cant get a cheaper supplier than one that is just next door! A supplier who can do just in - time delivery, means you can have the highest degree of flexibility.

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Its all about Results

Last April, our Flextronics colleagues in Tczew, Poland were successfully audited by the DNV* and awarded with the TL 9000* certification. The standard, based on ISO 9000*, defines effective cost and performance-based metrics, to measure progress and evaluate results of quality systems. This is used in all aspects of the telecommunication manufacturing industry, including hardware, software and services. Flextronics Tcew, is the first company in both Poland and in Europe to be TL 9000 certified. Congratulations! Althofen has also been very active on the certification front. As of April 2002, Althofen became the first Flextronics site to be ISO/TS 16949* certified! ISO/TS 16949 is a new automotive standard, which has been set up by the IATF*. This standard incorporates the highest level of certification in the automotive industry, being far more demanding than the quality assurance systems that were formerly in place. Last but not least congratulations to our team in Laval, France, who became ISO/9000: 1998* certified last May. Striving for certification, helps drive continuous improvement in the business, getting what we all want. results!

The art of listening, the Art of doing ... the desired Result!
A couple of months ago, our new European organisation was born. Many areas of business were merged and streamlined in order to achieve a more effective structure. The same is the case for the European marketing and communications efforts. We now have a small multinational Marketing and Communications team working together with the various sites in Europe on creative ways to effectively promote our business internally and externally.
The team covers all aspects of Marketing, Public Relations and Internal Communications under the Motto the art of listening, the art of doing ... the desired result! Focusing in on the customers needs, be it internally or externally, is part and parcel of any marketing and communications drive. As we continue to develop our activities we work closely with the sites and, in particular, with our sales team, listening to their marketing needs. This two-way process has already resulted in a number of customized solutions such as site sheets, folders and presentations. We aim to spread one consistent Flextronics look and messaging; strong and professional. You can, and need to, be part of this process. So, if you have any suggestions on what might make your work easier in terms of the promotion of our company, please let us know! You are welcome to contact us at marcom@at.flextronics.com and share your thoughts. In the meantime, browse our Flexnet page on http://home.europe.flextronics.com . It is here that you can access the full palette of promotional materials and gain a better understanding of the various things happening in our region. Thank you to all those who have already assisted us in our activities. We will continue to seek creative and cost effective ways to serve our business, with your help! The Marketing and Communications Team

Running for Results!

The Flextronics team spirit shone brightly at the Vienna Marathon, on Sunday 26 May 2002. Dressed in sunny yellow Flextronics t-shirts, twenty guys and two girls, took part in the forty two kilometer run. The marathon, was open to all who wanted to participate. On the day, there were in total seven different nationalities present, representing a cross section of Flextronics European sites. Our French competitors, however, clearly stole the show! Christophe Boisrame, ran in a remarkable time of 2:55 and was closely followed by his two colleagues who came in just a few minutes later! The other runners were not too far behind! Hannes Grble from Austria came in, at an admirable 3:19. For those who preferred something a little faster and less strenuous, they had the chance to take part in the Flextronics relay. Barbara Herold a relay runner explains: Running was hard work but a lot of fun! I felt honoured to be taking part and to be part of the Flextronics team! Overall it was a day of fun and, of course, outstanding results!

Definitions of Certifications
* TL 9000: Quality system requirements for the Telecommunications Industry. TL 9000 is the indus trys extension of the ISO 9000. * ISO 9000: Standard and certification process for quality management systems. * ISO/TS 16949: Quality system certification for the automotive industry. * QS 9000:1998: Quality system requirements developed specifically for the automotive sector. The requirements were initiated by the motor industry, to improve the quality, communication, efficiency and delivery of their suppliers.

Awarding Bodies
* DNV: Det Norske Veritas, is an independent foundation with the objective of safeguarding life, property, environment and is a leading provider of services for managing risk. * IATF: International Automotive Task Force, is a group of automotive manufacturers and their respective trade associations, formed to provide improved quality products to automotive customers worldwide.

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Making a Difference!
Have you ever wondered how you could really make a difference? Too much work, too little time to get involved in charity work Sounds familiar? Now is your chance, to help your community out. By making the Flextronics Foundation aware, of the charitable projects running in your area, you too, could make a lasting impact on the world around you.
Although the Flextronics Foundation has only just started its program in Europe, Flextronics has always been aware of the importance of being a good corporate citizen. For instance, the regional office for the former CEE region made a 159.000 Euro (40 Million HUF) donation to Nyregyhza, Hungary in July 2000. The 159.000 Euros, were used for a flood protection scheme in the area. The Foundation will distribute at least $300K each year to suitable charitable activities. All employees are encouraged to get involved in charitable organizations in their own communities and to request funds for local organizations that are in keeping with the purpose of the Foundation. Grants are generally limited to $5,000, though in certain circumstances, larger grants may be allowed. For further information on the Flextronics Foundation and/or requesting fund applications, please visit the intranet: http://home/flextronics.com/marketing/guidelines.asp or contact the Foundations representative in Europe, Peter Baumgartner at peter.baumgartner@at.flextronics.com

Flextronics helps Sinking Town

In March 2000 Michael Marks, Flextronics CEO, could hardly believe his eyes as his plane touched down on Hungarian soil. The scene was dramatic. most of the land was submerged under water! He was then informed, that the region of SzabolcsSzatmr-Berg based in Nyregyhza, Hungary, was frequently affected by flooding.
While still on board, Michael Marks, decided that the town would receive forty million HUF (159000 Euros) . The finances would go towards relieving the aftermath of the flooding and help devise a long-term plan to prevent further disaster. Fortunately, the donation was substantial enough to make a real impact on the towns infrastructure. The money enabled them to go ahead and start immediate construction, of the much awaited canal system. This would drain water away from the affected areas. Sndor Dmtr, who lives locally in one of the lowest areas of the town, described the horror of being in an area affected by flooding: After a major downpour, you couldnt even walk down the street or drive from one The Flextronics Foundation, which was launched in March 2002, bridges the gap between the corporate business world and the communities, in which we all live and work. The aims of the Foundation are to empower communities by way of financial support, for both disaster and community relief, as well as educational programs. The Flextronics Foundation who recently awarded its first grant to a school for the deaf in Texas, USA, is now starting to make its mark on Europe. The Foundation contributes globally to charitable projects that are at the heart of community needs, taking the companys role as corporate citizen very seriously. Emphasis is placed on programs that serve as a catalyst for positive change in communities where Flextronics employees live. The Flextronics Foundation awards grants for specific projects that relieve human suffering, caused by natural or civil disaster. Additionally, the Foundation strives to support educational programs for disadvantaged students and, in certain situations, awarding academic scholarships. The Foundation focuses its efforts on organizations that help students with socio-economic issues and learning disabilities.

end of the town to the other! To compound the problem, the majority of the cellars under the houses were also flooded, causing the walls to become damp. Often, locals in the area, made complaints about the situation but there was never anything done about it, due to the lack of finances. Understandably, after a long wait, the inhabitants of Szabolcs-Szatmr-Berg are very relieved to see construction of the canal completed and a long-term solution in place. Now, thanks to Flextronics generous donation, the local community can get back to normality and resume their everyday lives.

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Competition Results...

Give me my mobile phone back!

Photo Puzzle Competition Win a dinner for two!

The full puzzle shows:

In our first edition of Reflexes, we gave you a fun photo needing a snappy caption. We were amazed by the response. In total 88 entries were sent in! We received many apt and amusing captions but there can be only one winner... and the first prize for a dinner for two at Le Capucin Gourmand restaurant, goes to Maurice Barbier, Laval. Congratulations!
Seven lucky runners-up will receive a Flextronics backpack! They are....

Name:

Site:

How to contact me:

Mikael Frediksson Leo Willems

Katrineholm Venray Pandrup Kindberg Udine Solothurn Venray

The sky is the limit Palm Springs

When a Flextronics purchaser goes bananas to get a coconut delivery

Can you figure it out and come up with a solution to our latest Reflexes competition? The right answer could win you a fabulous dinner for two*.... Go on give it a try.... YOU could be our next lucky winner! Submit your entry either by e-mailing: flex.newswire@at.flextronics.com or by dropping your response into the Reflexes box, in your HR Department. A number of fantastic prizes can be won by the runners-up. The judges will be the Marketing and Communications Team Europe, Gerhard Kerschbaum, CFO Europe and Francois Barbier, General Manager Laval. Entries to be received no later than 31th October.

Allan Porsgaard Peter Sattler

EDITORIAL
EDITORIAL TEAM Jutta Devenish Sabine Persoons Elke Pschernig Fiona Toft Toni Morey

Flexlife... no mountains too high, you just keep trying, over and over again! Its all a matter of flexibility Only the big guys get the sweetest fruit... Carpe Diem!

Franz Maurizio Verena Brawand Dr Bovens

NOTE FROM THE EDITOR Please feel free to send us any comments, suggestions or contributions to flex.newswire@at.flextronics.com. Enjoy reading! The REFLEXES Europe Editorial Team.

Special thanks goes to our photo star, Gyrgy Antal, from the Flextronics site in Nyregyhza, Hungary caught in full action on holiday on the Philippines. Check out our new photo competition. We are giving you another chance to display your creative flair. Why not give it a try?

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