© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Foxconn ESS March Interlock Partner Management Initiatives Jeff Mason March 31, 2009 Shenzhen China

2Hon Hai March 2009 Interlock PMI Topics – Foxconn March Interlock Capacity – CZ, Hou, & China – Mason MLOHP – Mason Spend Save Feedback - Wong Aged Inventory Guidelines - Foxconn Packaging Rationalization – John-Teye EOL Lockdown Plan

Foxconn Pardubice, Houston, & China Operations Capacity Update

4Hon Hai March 2009 Interlock Capacity Models - General Updates March LCVF data included for BL490c G6 & BL280c G6 SWD demand not yet included for G6 platforms but are expected to launch in June. Changes made to CZ model to reflect increases to factory efficiency. DL185G5 – increased leverage by SWD to the point of being the predominant consumer of the product over time.

5Hon Hai March 2009 Interlock Capacity Model – Definitions “Working Efficiency” – This is the engineering, on paper, or 100% capacity calculation. This is in most all circumstances, not achievable or sustainable. This based on normal operating parameters (eg.7.3 hours per shift x 1 shift per day x 20 days per month). “Effective Efficiency” –This will be based on the standard operating parameters and will be determined by de-rating the Working Efficiency. The percent of de-rating (accounts for part shortages, labor gaps, line changes, etc.) is based on historical throughput data. “Burst Effective Efficiency” – As needed, ODM will gain additional capacity by assuming the same de-rating, but will include a move to more hours per shift, shifts per day, or days per month as needed.

6Hon Hai March 2009 Interlock CZ Facility Expansion Plan Update April 2009 − In order to make the CZ operation more cost effective and efficient in light of declining demand operational changes will be made starting in April. −Standard operating parameters moved to 1 shift and with an extension of the shift as needed for burst. Blades Expansion −Further expansions scheduled in April and August with a goal of reaching 1k per day by Jan – Due to declining volumes this expansion has been placed on hold. −However, some additional test capacity has been needed to balance the line based on the new 1 shift per day configuration. Possibilities For Next Expansion Current Outbound area (available in Feb 2009) – potential mfg expansion 600m2 (completely separate from the April and August Blade expansions) The second shift can be re-started in 2 weeks and a 3 rd shift in 4 weeks. Link to Definitions and Parameters

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10Hon Hai March 2009 Interlock BL280 G6 & BL490 G6 LCVF incorporated.

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12Hon Hai March 2009 Interlock Houston Facility Update −One hundred additional run-in bays to be installed after RD relocation. (On hold due to declining volumes) −LCVF data for BL490 and BL280 has been incorporated in the capacity model. −All blade products consolidated into single model. Link to Definitions and Parameters

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16Hon Hai March 2009 Interlock BL280 & BL490 LCVF included

17Hon Hai March 2009 Interlock Foxconn China Infrastructure Dec was the premier of the Foxconn China infrastructure model – C7000, C3000, and Freighter families of products. Tanker – need to confirm with Foxconn China that the Freighter model parameters take into account any differences that may be required by Tanker. Will be in place for Feb capacity model. Link to Definitions and Parameters

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MLOHP

22Hon Hai March 2009 Interlock Foxconn CZ MLOHP Meeting scheduled for April 9. Should provide enough time to implement for May quotation cycle.

Spend Save Template

24Hon Hai March 2009 Interlock Spend/Save Template Changes New Spend/Save Guidelines provided in Feb Interlock Open discussion Feedback from Foxconn

Aged Inventory

26Hon Hai March 2009 Interlock Aged Inventory Guidelines Aged Inventory Guidelines presented in April Interlock. Foxconn Feedback Open Discussion

December 6, 2015December 6, 2015December 6, 2015December 6, 2015December 6, 2015December 6, 2015 Otuko John-Teye27 SOI Hub Aging Inventory Guidelines ISS, Regional Partners and ODM partners to work together to adopt a common inventory aging and obsolescence management policy. Create a win-win environment that facilitates the reduction of financial liability associated with inventory in the Regional Hubs. Early identification of aging inventory by ODM Partners Timely communication of identified aging/aged inventory to Regional Partners for action Timely elimination of aging inventory by Regional Partners to help mitigate potential exposure to obsolete inventory. Finished goods, MOD 0's, CTO Components and Option Kits residing in Supplier Owned Inventory (SOI) hub Aging/Aged inventory is any material in the ODM SOI hub and is greater than 45 days old. To reduce inventory liability at quarter end, HP may not pull inventory during the last 2 weeks of each HP fiscal quarter (January, April, July and October) Purpose Goal Scope

December 6, 2015December 6, 2015December 6, 2015December 6, 2015December 6, 2015December 6, 2015 Otuko John-Teye28 Hub Aging Inventory Guidelines ODM Partners to provide inventory report classifying aging inventory that are > 30 days, > 45 days, > 60 days, > 90 days to Regional Focal Point of Contact (FPOC) for inventory management on a weekly basis. Regional FPOC to acknowledge receipt of report to ODM Regional FPOC to review the inventory report and execute any of the following actions for SOI hub inventory with age 45 days or greater.  PULL aged inventory  Pursue Site Balancing opportunity  Pursue Rework opportunity  Pursue Scrap/contract Cancellation Regional FPOC to respond back to ODM partner with feedback regarding action to be taken within 3 business days of receiving report. Identify a focal point of contact FPOC for your respective regions Put processes in place to support this inventory policy Process What is needed from you?

Packaging Rationalization

30Hon Hai March 2009 Interlock Packaging Rationalization Project Overview Optimize pan-HP product packaging to deliver cost savings and improve efficiencies without negatively impacting the customer. Achieve absolute-best-cost structure to create an Approved Vendor List across all HP business units. All HP Divisions (TSG, PSG and IPG) Scope expanded from “Corrugate and Foam Suppliers only” to now include Pallets Suppliers in Juarez /Chihuahua region Scope expanded from “Chihuahua and Juarez, Mexico Region only” to now include a review of Opportunities in EMEA region North America (Mexico): Corrugate Process: Data gathering  Initiate eRFP  supplier selection  eAuction  Business Award −Team is reviewing auction results to determine awardees Foam : Process: Data gathering  Initiate eRFP  supplier selection  eAuction  Business Award −Team is in reviewing RFP results and getting ready for auction Pallet: Process: Data gathering  Initiate eRFP  supplier selection  eAuction  Business Award Team is getting ready to launch RFI and Auction EMEA Team assembled, project kicked off and in phase 2 and 3 data gathering phases… No Timeline in place yet for RFI. AFP and Auction Goal Scope Current Project Status

31Hon Hai March 2009 Interlock December 6, Supplier Landscape Project PhasePalletsCorrugateCushion Current Landscape5+ 25 suppliers RFI Phase41112 RFP PhaseTBD6 9* E-Auction PhaseTBD Desired End State< or =2< or = 3< or = 4** ** 1 Molded EPS, 1 Molded Arcel, 1 Fabricated PE and 1 Environmental Option (i.e. 100% Recycled EPS or EPE).

32Hon Hai March 2009 Interlock Next Steps (Juarez) 32 Key Milestones PalletsCorrugate RFPCushion RFP Issue DateComplete Due DateComplete Analyze Results 3/30Complete3/13 – 3/27 eAuction Date4/7Complete4/8 Analyze Results 4/9-4/163/18 – 3/254/9-4/23 Business Award Week of 4/20Week of 3/30Week of 4/27

Lockdown Process Reminders EOL Excess material reports are due by the 10 th of every month. If the 10 th falls on a weekend or holiday, data is due the first business day prior to the 10 th. Data is used to post Obsolescence Analysis Material Liability Should be based upon the most recent Interlock or Lockdown Demand. First file is due two months prior to Lockdown date and based on latest Interlock or latest EDI. Once a supplier fulfills the supply to go demand for a region, they are done! If a region is requesting more supply, the upside request should be immediately escalated through GBU procurement. Two weeks of supply flexibility should be positioned as part of current week demand. This supply replaces traditional buffer and should be counted as supply against the supply to go demand. It is NOT incremental supply to the locked demand.

FY’09Lockdown Schedule 6 December

Planned FY’10Lockdown Schedule 6 December

Technology for better business outcomes

Backup

© 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Backup Capacity Models

39Hon Hai March 2009 Interlock Capacity Model – Definitions “Working Efficiency” – This is the engineering, on paper, or 100% capacity calculation. This is in most all circumstances, not achievable or sustainable. This based on normal operating parameters (eg.7.3 hours per shift x 1 shift per day x 20 days per month). “Effective Efficiency” –This will be based on the standard operating parameters and will be determined by de-rating the Working Efficiency. The percent of de-rating (accounts for part shortages, labor gaps, line changes, etc.) is based on historical throughput data. “Burst Effective Efficiency” – As needed, ODM will gain additional capacity by assuming the same de-rating, but will include a move to more hours per shift, shifts per day, or days per month as needed.

40Hon Hai March 2009 Interlock Foxconn Czech Republic Capacity Model Model was created using ISS March Week 3 DSHIP and SWD NAS/NearLine March demand data. 12 Month look forward Based on the product mix transition, capacity resources within the model have been allocated 90/10 between DL/ML respectively. This change was incorporated starting in the Aug model. Foxconn CZ capacity model is based on achieving 95% of the “Working” or engineering capacity. CZ Standard or “Effective” Operating Parameters: −7.25 hours per shift −1 shifts per day – New In March 2009 −20 days per month CZ “Burst” Operating Parameters: −10.25 hours per shift – New In March 2009 −1 shifts per day – New In March 2009 −26 days per month

41Hon Hai March 2009 Interlock Foxconn Houston Capacity Model Model was created using ISS March Week 3 DSHIP and SWD NAS/NearLine March demand data 12 Month look forward One line dedicated to DL38x. Second line is “DL MultiServer/ML” line. Foxconn Houston capacity model is based on achieving 80% of the “Working” or engineering capacity. Single Blades Model Houston Standard or “Effective” Operating Parameters: −8.5 hours per shift −1 shifts per day - 2 nd shift added to DL38x and Blade line −21 days per month Houston “Burst” Operating Parameters: −10 hours per shift −1 shifts per day −28 days per month

42Hon Hai March 2009 Interlock Foxconn China Infrastructure Capacity Model Model was created using ISS March Week 3 DSHIP demand data 12 Month look forward 3 Lines – C3000, C7000, Freighter Foxconn China capacity model is based on achieving 87% of the “Working” or engineering capacity. China Standard or “Effective” Operating Parameters: −8 hours per shift −1 shifts per day −20 days per month China “Burst” Operating Parameters: −8 hours per shift −2 shifts per day −20 days per month Return to Capacity Presentation