Supply Chain Collaboration Center

1. Supply Chain Collaboration Center Erwin Hermans, Vice President, Supply Chain Services, Celestica 1

2. Celestica Overview A $6.5B GLOBAL LEADERIN INNOVATIVE END-TO-END SUPPLY CHAIN SERVICES • Services span the entire product lifecycle: • design, manufacturing, assembly, order fulfillment, logistics, and after-market services • Over 100 customers in the sectors: GREEN TECHNOLOGY HEALTHCARE CONSUMER INDUSTRIAL COMMUNICATIONS AEROSPACE DEFENSE COMPUTING

3. Celestica partners with the best-known firms in the world!

4. Our operational and supply chain network is aligned to meet our customers’ needs Frankenburg, Austria Gourock, Scotland Galway, Ireland Ottawa, ON Toronto, ON Oradea, Romania Valencia, Spain Madison, WI Miyagi, Japan Portland, OR Kawasaki, Japan Suzhou, China Manchester, NH San Jose, CA Dongguan, China Shanghai, China Song Shan Lake, China Wuxi, China Taipei, Taiwan Ontario, CA Dallas, TX Shatin, Hong Kong Laem Chabang, Thailand Austin, TX Monterrey, Mexico Kulim, Malaysia Reynosa, Mexico Johor Bahru, Malaysia Singapore

5. The Challenge

6. Complexity in Global Outsourced Supply Chains Sea Land 3PL 3PL Component Supplier Distribution Center ServiceProvider OEM Manufacturing Air LATENCY DesignCenter Retail Outlet MISALIGNEDMETRICS INFORMATIONLEADTIME 3PL 3PL Repair Service Center Returns Consolidation Center

7. 1 DAY 7 DAYS 7 DAYS 7 DAYS Optimized to move parts OR information? Real Lead Time 7 DAYS

8. Solid Partners.Flexible Solutions. Our Journey

9. Business transformation through supply chain & ITDriving flexibility and speed for Celestica and our customers How are our suppliers driving value? How flexible is our supply chain? Ring Strategy Increasing flexibility Supplier TCOO Supplier capabilitiesand performance Tools Platforms to manage change How responsive is our supply chain to changes in customer demands?

10. Business transformation through supply chain & ITDriving flexibility and speed for Celestica and our customers Understanding cost/performance of the supply chain Pricing and service level alignment Supplier TCOO Scorecard Supplier Capabilitiesand Performance • Ring Score (lead-time management) • Payment Terms • Strategic Partnerships • Quality Performance • Market Performance • Technology & Innovation Quick replenishment,Inventory Optimization Flexibility up or down • Ring score - each Ring represent a lead time range • Goal is to have sourced from lowest Rings • Lead times < 2 wks target Ring Strategy Increasing Flexibility

11. Business transformation through supply chain & ITDriving flexibility and speed for Celestica and our customers Integrated Analytics Integrated Execution Single integrated platform E-collaboration Tools Platforms to manage change Demand Analytics ROP Planning / Execution Available-to-Promise (ATP) Supply Collaboration Speed Visibility Efficiency

12. The Supply Chain Collaboration Center 1. Collaborative inventory management & optimization 3. Collaborative Demand Planning 4. Multi-Enterprise Integration & Collaboration Platform 2. Supply-Demand Balancing & Analytics

13. Value First

14. What is Changing Demand & Inventory Planning • Limited inventory planning & visibility • Integrated S&OP process with what-if capability for financial impact assessment Supply Demand Balancing • Sequential planning cycles with limited visibility to material availability for order promising • Multi product complex order delivery promising and on line drill down capability • Improved accuracy, response time for supply commitments thanks to TCOO based sourcing Sourcing & Supplier Collaboration • Long cycle time for supply commitments and cost based supply decisions Technical Architecture& Data • Limited integration across supply chain partners • Single system of process for planning – not constrained by our current ERP landscape

15. Balance value creation with scope Capability Focus Areas Optimization Business Releases Return on Investment BR4 OperateProcess optimization Demand Mgmt BR3 TransformCustomer collaboration Supply / Inventory BR2 On-BoardCollaborative Demand PlanningEnd-to-end multi tier visibility BR1 PilotDemand-SupplyBalancing 1 Product Division1 Region 1 Product Division& Partners Globally All Product Divisionsand Key Partners Solution Deployment & Adaption

16. Aligning Process and IT Living the Brand: Success Stories Presentation to Ciena | November 19, 2014

17. The building blocks of the Business Process Architecture Order & Project Management Commit Dates Component / Capacity Constraints Orders Proposed Demand Plan Demand Planning and S&OP Supply Node Operations Inventory Optimization Demand / Supply Balancing S&OP “Go” ROP Node Data ROP Critical Component Constraints Critical Component Commitment Long Term Supply Management Critical Component Requirements Planning Unconstrained Demand Plan Critical Component Forecast Common Data Management Supplier Collaboration execution planning

18. IT Architecture supporting the Business Processes

19. Where to Start ?

20. Roadmap for Accelerating Collaboration • Identify Value First • Complete TCOO assessment • Identify top value opportunities • Launch program with positive ROI • Demonstrate Value & Extend Mandate • Align & use performance metrics • Deliver value in 6 months • Refine program scope & mandate • Make it sustainable • Implement enabling technology • Refine organization & metrics

21. New Focus

22. Transforming our Business Expanding into high-value customer opportunities CommoditizedBusiness Differentiation TRANSFORMATION Investments Printed Circuit Assembly System Assembly DesignServices Engineering Services SCM Services After Market Services Talent Mergers & Acquisitions

23. Thank You Solid PartnersFlexible Solutions