International Distribution of Electronics Association

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Bishop & Associates World Connector Industry: The Road Ahead

IDEA EXECUTIVE CONFERENCE Can Improved Collaboration in the Supply Network Encourage Growth in the Electronic Components Market? MILAN 2012

Arthur Visser © 2012 Bishop & Associates, Inc

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About Us CONNECTORSUPPLIER.COM CONNECTORINDUSTRY.COM CABLEASSEMBLYSUPPLIER.COM CONNECTORSUPPLIERDIRECTORY.COM On March 15, 2012, Bishop & Associates acquired Interconnection World and Connector Specifier from PennWell Corporation. The acquisition includes the Interconnection World website and four newsletters: Connector Specifier, Interconnection World, Wire & Harness, and Product Showcase. Capabilities and Services Custom Market Research Research Reports The Bishop Report Mergers and Acquisitions Industry Job Placement Executive Presentations Databases Surveys and Multi-Client Studies

Huge Variety

Flexible Circuit Interconnect Mil-C5015 Compliant Pin Mil-Circular

LGA 2011 Socket for Intel Sandy Bridge CPU

Intel/ Apple Thunderbolt 10Gbps Cable Assembly

Phoenix Contact PTSM Mini Push-On Terminal for LED Lighting

BGA Test Socket

Intel 100Gb Fiber Optic LightPeak

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Renewable Energy

Solar Panel DC-AC Micro-Inverter MC4 Connectors Photo: Enphase Energy Windmill Nacelle Harting Han Connectors

Industry

Industrial Ethernet

Robotics and Automation

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Automotive

Automotive Yazaki

Motorbikes

Electric Vehicles

Home & Building

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Military

© ODU

Telecom

© AVX

© I FixIt

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Connector Revenues 2011 A $48 billion business in 2011 Connector Revenues by Region 2011

World Connector Industry 2000-2011

Where Installed

$50.000 $45.000 $40.000

ROW

$35.000 $30.000

AP

$25.000

CN

$20.000

16%

$10.000

EU

$5.000

NA

19%

NA EU JP

23%

23%

JP

$15.000

6%

CN AP

13%

ROW

$0

Long Term Market Overview $15.000

$12.000

China $9.000

Europe North America Japan

$6.000

Asia-Pacific ROW

$3.000

$0.000 1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

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Long Term Market Overview

European Connector Market Data/Telecom Equipment Transporta on 7.1% Equipment 10.1%

$ 11.3 billion in 2011

Other Electronics Equipment 25.0%

Military Equipment 12.5%

Other European 36.3% Italy Iberian 5.7% Peninsula 6.8%

United Kingdom 10.8%

Industrial Equipment 24.4% Automo ve Equipment 21.0%

Germany 28.2% France 12.3%

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19 80 19 81 19 82 19 83 19 84 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11

U.S. Dollar Billion

Connector Revenues 2011

Long Term Market Overview

$60.00

$50.00

Long term Growth: 5.7% 0.25

$40.00 0.15

$30.00

0.05

$20.00

-0.05

$10.00

-0.15

$0.00

-0.25

Year

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Distribution POP Sales Between 22-23 percent of sales (POP) via Distribution

Connector Sales Distribution

2011 POP sales estimates

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Market Sectors 2011 World Distribution POP Connector Market by End-use Sector Computer&Peripherals 16% All Others 29%

Automotive 17%

Military&Aerospace 10%

Telecom/Datacom 15%

Industrial 13%

Product Types 2011 World Distribution POP Connector Market by Product Type Rectangular I/O 17%

Circular 8%

Other Connectors 6%

PCB 33%

Application Specific 17%

All Others 19%

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The Road Ahead-2 EU Debt Crisis - possible EU disruptions, new recession. Growth & Volatility in Developing World. Consumer Spending 2012-15; 60% of semiconductor Industry Demand = Now Consumer. Defense Cuts: Short Term or Long Term Impact? (US elections) Future of Maturing Computer Industry. Automotive: ICE or EV? Emerging Global Markets. New Automotive Growth Curve? Emerging Markets: Energy, Lighting, Nano-Technology. There have been 2 Deep Recessions in the Past Decade. Same or Less in the Future?

The Road Ahead-3 Semiconductor / Connector Sales Europe 2000-2011 Year-on-Year change (%) 30.0% 20.0% 10.0% 0.0% 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

-10.0% -20.0% -30.0%

Semiconductor sales

Connector sales

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2012 Forecast Moving Target World 2012F: $50,057.9 million or 3.5% up vs. 2011

Europe 2012F: $11,206.1 million or -0.6% down vs. 2011

Outlook 2016 Moving Target From a Moving Train Europe 2016F: $13,903.5 million or 4.3% CAGR

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Improved Collaboration Can Improved Collaboration in the Supply Network Encourage Growth in the Electronic Components Market?

 Most major connector suppliers maintain robust distribution sales efforts as a means to develop new business, support their customer base with readily available inventory, manage logistics programs and promote their brand.

Encourage Growth Encourage Growth through Partnerships, Franchises and Collaboration

Distribution Sales CAGR 7.1% vs. Total Connector Market 6.9%

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Bishop & Associates

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