2005 - Molex

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During the year, we won projects from customers engaged in land- and marine- based oil exploration, as well as manu- facturers requiring Molex products for industrial controls, testing equipment and power management. We also increased our business with the only major mobile phone company still producing in Europe. In automotive, our acquisition gave us a needed boost in both sales and marketshare. We believe the trend for European automakers, at least for the next five years, is to be locally based and rely on local distribution. We are in a good position to fulfill this need with a well-rounded connector portfolio and robust new product pipeline. Key initiatives include improving capacity utilization, shifting more manufacturing to our Eastern European loca- tions and using Six Sigma methodology to eliminate waste and enhance quality. Additionally, we are ahead of schedule with introducing lead-free products and have assured our customers we will deliver well in advance of the European compliance deadline. We see much the same for fiscal 2006: European economies should remain flat, and manufacturing will continue to move offshore. Our growth likely will stem from internal profitability measures and a continued push into automotive and industrial markets. T R A N S I T I O N S Among the many challenges we addressed during the year was the resignation of Molex 2005 Annual Report T O O U R S H A R E H O L D E R S 1 0 our former auditor. We also needed to prepare for compliance with the internal controls over financial reporting required by the Sarbanes-Oxley Act. Our new firm, Ernst & Young LLP, recently completed its audit of Molex’s fiscal 2005, 2004 and 2003 financial statements and management’s assessment of the effectiveness of our internal controls over financial reporting for fiscal 2005. As we expected, the additional audit of our financial statements did not result in any restatement of prior years’ earnings. We believe that both results and the manner in which we achieve them are of great importance. We take our respon- sibility to shareholders in the areas of corporate governance, financial reporting and business integrity very seriously. To that end, we have implemented a number of measures to strengthen our accounting and financial reporting infra- structure and processes. Working with PricewaterhouseCoopers LLP, our advisor on internal controls compliance, we documented, enhanced and tested our internal controls over financial reporting. In July, we welcomed David Landsittel to the Molex Board of Directors. David has 42 years of experience in public accounting and was Chairman of the Auditing Standards Board of the American Institute of Certified Public Accountants. He qualifies as an “audit committee financial expert” under the Sarbanes- Oxley Act and serves on our Audit Committee. Prior to David’s joining the Board, our Audit Committee consulted
Sales by Region Americas 27.5% Far East South 30.2% Far East North 20.5% Europe 19.8% New Ventures 2.0%
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Page 5 and 6: Sales by Industry 27% Telecommunica
Page 7 and 8: these reasons, over the past few ye
Page 9 and 10: 29 Development Groups Design Center
Page 11: that keep pace with the ongoing mig
Page 15 and 16: L E A D E R S H I P R O U N D T A B
Page 17 and 18: Molex Molex 2005 2005 Annual Annual
Page 19 and 20: Molex 2005 Annual Report L E A D E
Page 27: Fred A. Krehbiel (4)* is Co-Chairma
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Page 42 and 43: TABLE OF CONTENTS Page Part I Item
Page 44 and 45: Markets and Products below: The app
Page 46 and 47: The Company believes that its succe
Page 48 and 49: the technology industry to help dri
Page 50 and 51: Many of Molex’s worldwide manufac
Page 52 and 53: Item 2. Properties Molex owns and l
Page 54 and 55: The following table contains inform
Page 56 and 57: Item 7. Management’s Discussion a
Page 58 and 59: The Company anticipates that its gr
Page 60 and 61: Pension Plans The costs and obligat
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Results of Operations Year Ended Ju
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opportunities with its Molex counte
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Goodwill and Other Asset Impairment
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Far East South Region - Singapore,
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Financing Activities Cash was used
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existing and future competitors, wh
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offsets, as compared with offsets t
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Molex Incorporated Consolidated Bal
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Molex Incorporated Consolidated Sta
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1. Organization and Basis of Presen
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Revenue Recognition Revenue is real
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fiscal 2005 or 2006. The Company di
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Year ended June 30, 2005 The aggreg
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Year ended June 30, 2003 As a resul
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sold into the structured cabling ma
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The components of net deferred tax
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Benefit Obligations and Plan Assets
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The following provides a reconcilia
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certain events. Upon such conversio
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The option price per share for cert
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Corporate and Other assets include
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REPORT OF INDEPENDENT REGISTERED PU
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Item 9. Changes in and Disagreement
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absolute assurance that misstatemen
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Molex Incorporated Schedule II - Va
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10.14 Molex Cash Merit Bonus Plan (
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74 Exhibit 31.1 CERTIFICATION PURSU
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CERTIFICATION PURSUANT TO 18 U.S.C.
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2005 - Molex

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