Solid partners.

Flexible solutions.

ENERGY OPPORTUNITIES IN CHANGING TIMES

AT HOME AND GLOBALLY

Dan Henes, CelesticaToronto, Canada, Nov 23, 2015

CME: Energy 2015

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About Celestica

$5.6 billionin revenue

19 locations in 12 countries

28,000 Employees worldwide

• Focused on serving the world’s leading technology companies

• Tailoring customer-centric solutions for the markets we serve

• Operating a global network of sites with specialized Centers of Excellence

• One of the strongest balance sheets in our industry

CELESTICAA GLOBAL LEADER

IN INNOVATIVE END-TO-END SUPPLY CHAIN AND PRODUCT REALIZATION SOLUTIONS

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What’s the buzz, what’s the opportunity?

Challenges and Opportunities

Lessons from adjacent markets

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Source: Bloomberg, April 2014

Global Annual Investment in Clean Energy

• $6T dollars to be invested in

renewable energy over 20yrs.

• Technology innovation & cost are

driving transformation in energy

• Transformation is accelerating

WHY AM I EXCITED?

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• Global growth

expected to be 10-15%

CAGR

• Estimate 75-100 GW

annually by 2020

GLOBAL AND REGIONAL SOLAR TRENDS

Source: Credit Suisse estimates

Exhibit 84: Global solar demand to grow at CAGR of 14.5%

CAGR

14.5%

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• US installs expected to ~double in 2 yrs.

• Utilities continue to be largest segment

• Residential growing fastest ~ 3x

• Expect a dip in 2017 as US ITC credits expire

Source: GTM Research, SEIA 2Q14 Report

US Installs To Reach 12.5GW In 2016

2010 2011 2012 2013 2014E 2015E 2016E

2,000

4,000

6,000

8,000

10,000

12,000

Ins

tall

ed

Ca

pa

cit

y (

MW

dc

)

Residential Non Residential Utility

ALL SEGMENTS ARE NOT EQUAL

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GRID PARITY ACCELERATES ADOPTION GLOBALLY

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• 1/3, 1/3, 1/3

• Geography & Climate, 24/0

• Land use: density, shading

• Topology: Off grid, on grid, micro grid, no grid

Government policies and energy security

• Subsidies and tariffs - carrot and stick

• Government regulation - private/public/politics

• Rules & standards evolving,…rapidly, globally

Value Proposition – not a constant, many moving parts

NO SHORTAGE OF NEEDS AND CHALLENGES

System Design Considerations:

• System view in designing components – don’t push on balloon

• Expansion, Interoperability, Plug and play

• Distributed generation accelerate system architecture shift

Stability and management

• SMART monitor/control, shutdown, stability,

• Rule 21, VAR comp, net metering, time of use

• Safety, Reliability, O&M

• Ownership Cost: developer, operator, innovative financing

SOLUTIONS LEAD TO OPPORTUNITIES

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ConsumerCommunications

Industrial

Aerospace Defense

Semiconductor

WHAT CAN WE LEARN FROM GROWTH IN ADJACENT MARKETS

Renewable

Energy

Enterprise

HealthTech

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WE CAN APPLY LEARNINGS FROM MULTIPLE MARKETS

• Integration and Consolidation happens (in products & markets)

• Relationships: cost scale standardization, repeat

• Electronification and SW defined systems are disruptive

• Lateral innovation offers solutions

• Globalization accelerates

• Ecosystem relationships are critical to innovation

SUCCESS DRIVEN BY UNDERSTANDING THESE DYNAMICS

Objects in mirror are closer than they appear!

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Product RealizationPCBA

System

Assembly

Direct Order

Fulfillment

After-Market

ServicesSupply Chain Transformation Managed Services

Design/

Product

Solutions

ManufacturingNPI/

PrototypingSystem

Assembly

Fulfillment &

Distribution

After-Market

Service &

support

Technology

Development

SUCCESS REQUIRES CONNECTING MANY ELEMENTS IN THE VALUE CHAIN

KNOW WHAT YOU ARE GOOD AT, WHAT YOU WANT TO BE KNOW FOR,

PARTNER FOR THE REST

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SOLUTIONS TO CHALLENGES LEAD TO GREAT OPPORTUNITY

Solving common complex problems• LEADS TO EXPORTABLE PRODUCTS and EXPERTISE

• LEADS TO SCALE THRU MASS ADOPTION

• LEADS TO LOWER COST

• LEADS TO DOMESTIC BENEFITS

LEADS TO GLOBAL COMPETITIVENESS

Solid partners.

Flexible solutions.

THANK YOU

Dan Henes, CelesticaToronto, Canada, Nov 23, 2015