1
Filed by Sanmina Corporation
Pursuant to Rule 425 under the Securities Act of 1933
And deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934
Subject Company: SCI Systems, Inc.
Commission File No. 0-2251
SANMINA/SCI MERGER
LOOKING TOWARD THE FUTURE
================================================================================
[LOGO SANMINA] [PHOTO] [SCI SYSTEMS, INC. LOGO]
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SAFE HARBOR STATEMENT
THE FOREGOING CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES, INCLUDING UNCERTAINTIES ASSOCIATED WITH ECONOMIC CONDITIONS IN
THE ELECTRONICS INDUSTRY, CHANGES IN CUSTOMER REQUIREMENTS AND IN THE VOLUME OF
SALES TO PRINCIPAL CUSTOMERS, THE ABILITY OF THE COMPANY TO OBTAIN PRODUCT
COMPONENTS, ASSIMILATE ACQUIRED BUSINESSES AND TO ACHIEVE THE ANTICIPATED
BENEFITS OF SUCH ACQUISITIONS, AND COMPETITION AND TECHNOLOGICAL CHANGE. FOR A
MORE DETAILED DISCUSSION OF THESE AND OTHER FACTORS, PLEASE REFER TO OUR MOST
RECENT FILINGS WITH THE SECURITIES EXCHANGE COMMISSION.
SANMINA PLANS TO FILE A REGISTRATION STATEMENT ON SEC FORM S-4 IN CONNECTION
WITH THE MERGER, AND EACH OF SANMINA AND SCI EXPECTS TO MAIL A JOINT PROXY
STATEMENT/PROSPECTUS TO ITS RESPECTIVE STOCKHOLDERS CONTAINING INFORMATION ABOUT
THE MERGER. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION
STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN THEY ARE
AVAILABLE. THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS
WILL CONTAIN IMPORTANT INFORMATION ABOUT SANMINA, SCI, THE MERGER AND RELATED
MATTERS. INVESTORS AND SECURITY HOLDERS WILL BE ABLE TO OBTAIN FREE COPIES OF
THESE DOCUMENTS THROUGH THE WEBSITE MAINTAINED BY THE U.S. SECURITIES AND
EXCHANGE COMMISSION AT WWW.SEC.GOV.
SCI, ITS DIRECTORS, EXECUTIVE OFFICERS AND CERTAIN MEMBERS OF MANAGEMENT AND
EMPLOYEES MAY BE SOLICITING PROXIES FROM SCI'S SHAREHOLDERS IN FAVOR OF THE
ADOPTION OF THE MERGER AGREEMENT. A DESCRIPTION OF ANY INTERESTS THAT SCI'S
DIRECTORS AND EXECUTIVE OFFICERS HAVE IN THE MERGER WILL BE AVAILABLE IN THE
JOINT PROXY STATEMENT/PROSPECTUS.
SANMINA, ITS DIRECTORS, EXECUTIVE OFFICERS AND CERTAIN MEMBERS OF MANAGEMENT AND
EMPLOYEES MAY BE SOLICITING PROXIES FROM SANMINA'S STOCKHOLDERS IN FAVOR OF THE
ISSUANCE OF SANMINA SHARES IN CONNECTION WITH THE MERGER. A DESCRIPTION OF ANY
INTERESTS THAT SANMINA'S DIRECTORS AND EXECUTIVE OFFICERS HAVE IN THE MERGER
WILL BE AVAILABLE IN THE JOINT PROXY STATEMENT/PROSPECTUS.
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TODAY'S AGENDA
- Sanmina and SCI Profile
- Capabilities and Market Position
- Leading Customers in Growth Markets
- Outsourcing Driving Market Opportunity
- Strong Financial Momentum
- Strategy for Continued, Profitable Growth
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SANMINA/SCI PROFILE
================================================================================
- Long Term Successful Operating History
- $14 Billion in Revenue
- Global Manufacturing Solution with Presence in 21 Countries
- 10 Million Square Feet of Manufacturing Space
- Diversified, High Growth Customer Base
- 50,000 Employees
- Strong Balance Sheet
THE PREMIER "EMS" COMPANY
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TOTAL MANUFACTURING SOLUTION
END-TO-END SOLUTION
[PHOTO]
[PHOTO]
ENGINEERING
- 500+ DESIGN ENGINEERS
- 1,600+ MANUFACTURING AND TEST ENGINEERS
- 30 GLOBAL DESIGN CENTERS
- ASIC TO FINAL SYSTEM DESIGN
ONE OF THE STRONGEST DESIGN AND
ENGINEERING ORGANIZATIONS IN THE WORLD
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TOTAL MANUFACTURING SOLUTION
[PHOTO]
CIRCUIT FABRICATION
END-TO-END SOLUTION
[PHOTO]
GLOBAL TECHNOLOGY LEADER
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TOTAL MANUFACTURING SOLUTION
[PHOTO]
CIRCUIT BOARD ASSEMBLY
END-TO-END SOLUTION
[PHOTO]
[PHOTO]
[PHOTO]
GLOBAL TECHNOLOGY LEADER AND ONE OF THE LARGEST
IN TERMS OF CAPACITY
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GLOBAL TECHNOLOGY LEADER
[PHOTO]
BACKPLANE ASSEMBLY
END-TO-END SOLUTION
[PHOTO]
[PHOTO]
[PHOTO]
[PHOTO]
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TOTAL MANUFACTURING SOLUTION
[PHOTO]
RF/OPTICAL CABLE ASSEMBLY
END-TO-END SOLUTION
[PHOTO]
[PHOTO]
[PHOTO]
[PHOTO]
FOCUSED ON CRITICAL TECHNOLOGIES
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TOTAL MANUFACTURING SOLUTION
[PHOTO]
ENCLOSURE SYSTEMS
END-TO-END SOLUTION
[PHOTO]
[PHOTO]
[PHOTO]
[PHOTO]
GLOBAL TECHNOLOGY LEADER AND POSITIONED TO BECOME ONE OF THE LARGEST IN TERMS OF
CAPACITY
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TOTAL MANUFACUTURING SOLUTION
[PHOTO]
SUBSYSTEM ASSEMBLY
END-TO-END SOLUTION
[PHOTO]
[PHOTO]
[PHOTO]
[PHOTO]
LEVERAGE OUR CORE COMPETENCY STRENGTHS
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TOTAL MANUFACTURING SOLUTION
[PHOTO]
GLOBAL ORDER FULFILLMENT
END-TO-END SOLUTION
[PHOTO]
[PHOTO]
[PHOTO]
[PHOTO]
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SANMINA/SCI COMPETITIVE EDGE
- Unsurpassed End-to-End Solution Capabilities
- Leading Technology
- Culture - Serviced Based Organization
- Global Order Fulfillment
- Diversified Customer Base in High Growth Sectors
- Increased Scale and Financial Strength Position Company for
Accelerated Growth
MERGER CREATES PREMIER EMS COMPANY
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GLOBAL FOOTPRINT
100+ MANUFACTURING LOCATIONS
CANADA
MEXICO
UNITED STATES
[MAP]
FINLAND
FRANCE
GERMANY
HUNGARY
IRELAND
SCOTLAND
SPAIN
SWEDEN
THE NETHERLANDS
UNITED KINGDOM
[MAP]
BRAZIL
[MAP]
AUSTRALIA
ISRAEL
REPUBLIC OF SINGAPORE
THAILAND
[MAP]
CHINA
MALAYSIA
TAIWAN
21 COUNTRIES
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SANMINA/SCI DIVERSIFIED CUSTOMER BASE IN HIGH GROWTH SECTORS
================================================================================
SCI $2,017mm
Communications $ 666
High End Computing $ 383
Multimedia $ 161
PCs $ 545
Medical/Other $ 262
$3,208mm
Communications $1,524
High End Computing $ 574
Multimedia $ 161
PCs $ 545
Industrial/Medical Other $ 405
SANMINA $1,191mm
Communications $ 858
High End Computing $ 191
Industrial & Medical Instruments $ 143
Based on 3 months ending March, 2001
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BUILD STRONG LONG TERM CUSTOMER PARTNERSHIPS
================================================================================
[TELLABS LOGO]
[MOTOROLA LOGO]
[ECHOSTAR TECHNOLOGIES LOGO]
[SUN MICROSYSTEMS LOGO]
[HUGHES BREAKING THE THOUGHT BARRIER LOGO]
[LEXMARK LOGO]
[HEWLETT PACKARD LOGO]
[CISCO SYSTEMS LOGO]
[SIEMENS LOGO]
[NORTEL LOGO]
[BOEING LOGO]
[NOKIA LOGO]
[LUCENT TECHNOLOGIES BELL LABS INNOVATIONS]
[INTEL LOGO]
[ROCHE LOGO]
[X LOGO]
[ALCATEL NETWORK SYSTEMS LOGO]
[TEXAS INSTRUMENTS LOGO]
[JOHNSON & JOHNSON CLINICAL DIAGNOSTICS INC. LOGO]
[IBM LOGO]
[AT&T LOGO AT&T FIXED WIRELESS SERVICES]
[KLA TENCOR LOGO]
[PHILIPS LOGO]
[CIENA LOGO]
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[SANMINA LOGO]
ROBUST MARKET OPPORTUNITY
================================================================================
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ELECTRONICS MANUFACTURING
SERVICES MARKET
================================================================================
($ BILLIONS)
'98 '99 '00 '01 '02
---- ---- ---- ----- -----
58.2 70.9 85.1 102.4 122.0
ASIA 15.0 18.3 22.8 25.5 32.2
EUROPE 14.4 18.0 21.0 27.3 32.6
NORTH AMERICA 28.8 34.6 41.3 49.6 57.2
SOURCE: TECHNOLOGY FORECASTERS, INC.
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SANMINA/SCI TOTAL SOLUTION
================================================================================
- Leading-Edge Technology
- Dedicated Supply Chain Management
- Global Advanced Engineering Support
- Global Flexible Manufacturing Capabilities
- Lower Product Cost
"END-TO-END-SOLUTION"
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[SANMINA LOGO]
SANMINA/SCI FINANCIALS
================================================================================
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SANMINA/SCI FINANCIAL OVERVIEW
HISTORICAL NET SALES
================================================================================
($ MILLIONS)
1997 1998 1999 2000
----- ----- ----- ------
7,797 8,805 9,426 12,946
SCI 6,084 6,634 6,805 8,707
SANM 1,713 2,171 2,621 4,239
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SANMINA/SCI FINANCIAL OVERVIEW
SALES TREND - LAST 4 QUARTERS
================================================================================
($ MILLIONS)
Q3'00 Q4'00 Q1'01 Q2'01
----- ----- ----- -----
3,393 3,395 4,081 3,208
SCI 2,307 2,028 2,595 2,017
SANM 1,086 1,367 1,486 1,191
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SANMINA/SCI FINANCIAL OVERVIEW
NET INCOME TREND - LAST 4 QUARTERS
================================================================================
($ THOUSANDS)
Q3'00 Q4'00 Q1'01 Q2'01
------- ------- ------- -------
126,000 152,900 172,000 148,700
SCI 57,000 50,500 56,000 33,800
SANM 69,000 192,400 116,000 114,900
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SANMINA/SCI FINANCIAL OVERVIEW
================================================================================
Strong Combined Balance Sheet Enhances
Ability to Lead Industry Consolidation
Pro Forma Balance Sheet Items (3/31/01)
Cash and Investments $1,510
Total Debt $2,687
Stockholders Equity $6,661
Total Capitalization $9,348
Net Debt to Total Capitalization 13%
Total Debt to Total Capitalization 29%
FINANCIALLY STRONG FOR FUTURE GROWTH
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HOW SANMINA/SCI COMPARES
Merger Creates Premier EMS Company
================================================================================
($ in Millions)
ENTERPRISE VALUE AS OF 7/12/01
Sanmina/SCI 13,702
CLS 10,496
FLEX 12,835
JBL 5,330
SLR 14,046
EBITDA
Sanmina/SCI 1,351
CLS 528
FLEX 776
JBL 367
SLR 1,232
REVENUE
Sanmina/SCI 14,077
CLS 10,832
FLEX 12,110
JBL 4,452
SLR 19,834
EBITDA MARGIN
Sanmina/SCI 9.6%
CLS 4.9%
FLEX 6.4%
JBL 8.2%
SLR 6.2%
Last twelve month estimate based on March
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[SANMINA LOGO]
SANMINA/SCI
FOCUSED GROWTH STRATEGY
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CAPITALIZE ON CORE COMPETENCIES
PRODUCT PROCUREMENT CIRCUIT FAB FULL DIRECT
DESIGN AND INVENTORY CIRCUIT ASSY SYSTEM ORDER
ENGINEERING MANAGEMENT BACKPLANE ASSY ASSEMBLY FULFILLMENT
CABLES AND
ENCLOSURES TEST
- ASIC TO SYSTEMS - GLOBAL - DEDICATED - IN-CIRCUIT - PACKAGING
DESIGN SUPPLY CHAIN NEW PRODUCT FUNCTIONAL AND - WAREHOUSING
- NEW PRODUCT MANAGEMENT INTRODUCTION ENVIRONMENTAL - GLOBAL
- MANUFACTURING - STANDARDIZED - VOLUME PRODUCTION TESTING DISTRIBUTION TO
- TEST WORLDWIDE - TECHNOLOGY LEADER - QUALITY ASSURANCE END CUSTOMER
- RELIABILITY ERP SYSTEM IN EVERY SECTOR
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EXPAND CUSTOMER PARTNERSHIPS
- New Product Development
- Flexible Worldwide Manufacturing
- Direct Order Fulfillment
- Quality Focused: ISO 9001, 9002, 14001, TL9000
- Global Direct Sales and Services Support
TOTAL MANUFACTURING SOLUTIONS
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EXPANDED GLOBAL SALES FORCE
- 100+ Customer Service Locations
- Experienced Technical Sales Force
- Largest Sales Force in The EMS Industry
TECHNICAL SALES FORCE IS INVOLVED
FROM DESIGN TO FINAL SYSTEM BUILD
AND ORDER FULFILLMENT
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FOCUS ON HIGH GROWTH SECTORS
INDUSTRIAL/MEDICAL 10%-15%
PC COMPUTING 15%-20%
MULTIMEDIA 5%-10%
HIGH-END COMPUTING 15%-20%
COMMUNICATIONS 40%-50%
FUTURE END MARKET SEGMENTS
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LEADER IN COMMUNICATIONS (40% - 50%)
[AT&T LOGO]
AT&T Fixed Wireless Services
[LUCENT TECHNOLOGIES LOGO]
Bell Labs Innovations
[TELLABS LOGO]
[NORTEL LOGO]
[FUJITSU LOGO]
[ERICSSON LOGO]
[CIENA LOGO]
[REDBACK NETWORKS LOGO]
[HARRIS LOGO]
[CISCO SYSTEMS LOGO]
[SIEMENS LOGO]
[ALCATEL NETWORK SYSTEMS LOGO]
[MOTOROLA LOGO]
[NOKIA LOGO]
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LEADER IN INDUSTRIAL/MEDICAL (15%-25%)
[APPLIED MATERIALS LOGO]
[SIEMENS LOGO]
[BOSTON SCIENTIFIC LOGO]
[HONEYWELL LOGO]
[TEXAS INSTRUMENTS LOGO]
[KLA TENCOR LOGO]
[BOEING LOGO]
[AGILENT TECHNOLOGIES LOGO]
[GE MEDICAL SYSTEMS LOGO]
[ROCHE LOGO]
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LEADER IN HIGH-END COMPUTING (20%-25%)
[COMPAQ LOGO]
[DELL LOGO]
[EMC(2) LOGO]
[SUN MICROSYSTEMS LOGO]
[HEWLETT PACKARD LOGO]
[IBM LOGO]
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LEADER IN PC COMPUTING (15%-20%)
[COMPAQ LOGO]
[DELL LOGO]
[INTEL LOGO]
[HEWLETT PACKARD LOGO]
[IBM LOGO]
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LEADERS IN MULTIMEDIA (5%-10%)
[ECHOSTAR TECHNOLOGIES LOGO]
[PHILIPS LOGO]
[NOKIA LOGO]
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STRATEGIC BENEFITS OF MERGER
- Increases Global Footprint and Customer Presence
- Creates a Full Portfolio of Services in One EMS Company
- Well Diversified Company with Strength in Communications, Computing,
Medical, Industrial and Multimedia Sectors
- Strong Balance Sheet with Financial Flexibility to Leads Industry
Growth and Consolidation
- Creates a More Competitive Company Because of the Vertical Integration
-- "End-to-End Solution"
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STRATEGIC BENEFITS OF MERGER
- Scale Bringing Greater Credibility with Customers for New Business and
OEM's with Respect to Future Asset Divestitures
- Ability to Offer More Vertical Services to Each Company's Customers
(Cross-Selling Opportunities)
- Enhanced Growth Rate Leads Industry
- Creates the Premier EMS Company
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WE'VE CREATED THE PREMIER
EMS COMPANY
[SANMINA LOGO] [SCI SYSTEMS, INC. LOGO]
THANK YOU