Asia Plant Comparison

April 2012

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China Cost Increase

As you know, Chinas labor rates are increasing and new levies have been added for foreign
businesses For labor wages, in early CY2012 our China plants see DL wages increasing at 15% and IL salary increasing at 8% Inflation in China RMB may appreciate at a slower pace With CPI inflation falling and commodity prices easing, the incentive for appreciation has weakened We think fundamentals still support appreciation when the market stabilizes, however the pace of CNYUSD appreciation could slow to 2-3% in 2012 Contributions will now have to be made by employers and employees to Social Security Funds If you need additional information, please contact the Pricing Intelligence Team

Due to these changes, we wanted to provide you with China labor rate trend, Asia rate
comparison, tax considerations and Asia sites capability overview

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China DL Rates Recent History

180% 160%

140%

120%

100%

80%

60% GMS China Average DL Rate/Hr

40% GMS China Average DL rater fully loaded SE Asia Average DL Rate/Hr 20% SE Asia Average DL rater fully loaded

0% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

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DL Rate Trend Comparison with China Average

400% 350%

300% Vietnam 250% Penang Pune Singapore 200% Huangpu Shanghai 150% Wuxi GMS China Average SE Asia Average 100%

50%

0%

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13
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Capabilities Overview
Huangpu Wuxi Shanghai Penang India Vietnam Singapore

High mfg Competency site High Mix/ Low volume

Perfect location for cost-sensitive complex and vertically integrated products

Center of Excellence for Healthcare High complexity products Design SMT, Box Build Aftermarket System Integration

High technical Competency site for Asia Region Ultra High mix/ Low volume System Integrations SMT, Box Build Optical Assembly

High Mix/ Low Volume Low Mix/ High Volume Aftermarket Mechanical Design and Plastics RF Experience Enclosure Integration High Mix/High Volume SubAssembly Plastics

Asias BTO/CTO Center

Optical and Calibration

Power Supplies Assembly Precision Mechanical

Strengths of site

High Volume & SMT, Box Velocity Build capability Infrastructure to support USD2B SMT, Box Build Electronics, Plastics & Metals Assembly Optical Assembly

SMT

Conformal Coating

Sole EMS Plastic existence Assembly in south part of SMT, Box Build Conformal Vietnam. Coating Solar Module Mfg SMT

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Tax & Treasury Considerations

Huangpu Wuxi Shanghai Penang India Vietnam
0% for next 3yrs. 5% for next 9years 10% for rest of life

Singapore

Expected Tax Rate

25%

25%

25%

0%

33%

0%

Tax changes expected Ease of cash repatriation

NA

NA

NA

NA

NA

NA

NA

Challenging

Challenging

Challenging

Easy

Medium

Medium

Easy

FX risks

Highly regulated.
Liquid markets

Highly regulated.
Liquid markets

Highly regulated
Liquid markets

Medium regulation.
Liquid markets

Highly regulated.
Liquid markets

Highly regulated. Low regulation

Not Liquid markets Liquid markets

For information on DUTIES for these sites, please contact Francis Loh Regional Logistics Director
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Thinking about moving your business? Contact Logistics

Works with you to determine best location for products and total landed
cost analysis

Contact Tax & Treasury Department

Provides you with local tax information (e.g. tax holidays, surcharges,
duties, etc.), potential FX issues and risk assessment

Contact DBM and Plant Controller at potential site

For site options and financial impact
Site Penang Singapore Shanghai & Wuxi Huangpu India Vietnam DBM VY Lai VY Lai Leon Xu LH Quah VY Lai VY Lai Controller Chin Kuang Kim Franklin Song Peter Shen Dave Leung Samit Moye Huu Binh
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For more information, please contact the Pricing Intelligence Team (PIT) or access the website at Pricing Intelligence Team Website

Note: Slide must be in display mode for hyperlink to website to work

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