Re sults for Q1 F isc al 2021 E a rning s Anno unc e me nt: July - - PowerPoint PPT Presentation

Re sults for Q1 F isc al 2021

E a rning s Anno unc e me nt: July 30, 2020 (Qua rte r E nde d June 26, 2020)

1 1

Risks a nd Non- GAAP Disc losur e s

T his pre se nta tio n c o nta ins fo rwa rd-lo o king sta te me nts within the me a ning o f U.S. se c uritie s la ws, inc luding sta te me nts re la te d to future e xpe c te d re ve nue s a nd e a rning s pe r sha re a nd me a sure s tha t we a re ta king to re spo nd to the c ha lle ng e s pre se nte d b y the COVID-19 pa nde mic a nd the re sulting e c o no mic disruptio ns. T he se fo rwa rd-lo o king sta te me nts invo lve risks a nd unc e rta intie s tha t c o uld c a use the a c tua l re sults to diffe r ma te ria lly fro m tho se a ntic ipa te d b y the se fo rwa rd-lo o king sta te me nts. Re a de rs a re c a utio ne d no t to pla c e undue re lia nc e o n the se fo rwa rd-lo o king sta te me nts. T he se risks inc lude : the e ffe c ts o f the COVID-19 pa nde mic o n o ur b usine ss, re sults o f o pe ra tio ns a nd fina nc ia l c o nditio n; tha t future re ve nue s a nd e a rning s ma y no t b e a c hie ve d a s e xpe c te d; the e ffe c ts tha t the c urre nt ma c ro e c o no mic e nviro nme nt c o uld ha ve o n

• ur b usine ss a nd de ma nd fo r o ur pro duc ts; the e ffe c ts tha t c urre nt c re dit a nd ma rke t c o nditio ns c o uld ha ve o n the liq uidity a nd fina nc ia l c o nditio n o f o ur c usto me rs a nd supplie rs, inc luding a ny impa c t o n the ir a b ility

to me e t the ir c o ntra c tua l o b lig a tio ns; the c ha lle ng e s o f e ffe c tive ly ma na g ing o ur o pe ra tio ns, inc luding o ur a b ility to c o ntro l c o sts a nd ma na g e c ha ng e s in o ur o pe ra tio ns; litig a tio n a nd re g ula to ry inve stig a tio ns a nd pro c e e ding s; c o mplia nc e with le g a l a nd re g ula to ry re q uire me nts; the po ssib ility tha t b e ne fits o f the Co mpa ny’ s re struc turing a c tio ns ma y no t ma te ria lize a s e xpe c te d; tha t the e xpe c te d re ve nue a nd ma rg ins fro m re c e ntly la unc he d pro g ra ms ma y no t b e re a lize d; o ur de pe nde nc e o n a sma ll numb e r o f c usto me rs; the impa c t o f c o mpo ne nt sho rta g e s, inc luding the ir impa c t o n o ur re ve nue s; g e o po litic a l risk, inc luding the te rmina tio n a nd re ne g o tia tio n o f inte rna tio na l tra de a g re e me nts a nd tra de po lic ie s, inc luding the impa c t o f ta riffs a nd re la te d re g ula to ry a c tio ns; a nd tha t re c e ntly pro po se d c ha ng e s o r future c ha ng e s in ta x la ws in c e rta in jurisdic tio ns whe re we o pe ra te c o uld ma te ria lly impa c t o ur ta x e xpe nse . In a dditio n, the COVID-19 pa nde mic inc re a se s the like liho o d a nd po te ntia l se ve rity o f ma ny o f the fo re g o ing risks. T he ma king o f a ny sta te me nt in o ur pre se nta tio n do e s no t c o nstitute a n a dmissio n b y F le x o r a ny o the r pe rso n tha t the e ve nts o r c irc umsta nc e s de sc rib e d in suc h sta te me nt a re ma te ria l. Additio na l info rma tio n c o nc e rning the se a nd o the r risks is de sc rib e d unde r “Risk F a c to rs” a nd “Ma na g e me nt’ s Disc ussio n a nd Ana lysis o f F ina nc ia l Co nditio n a nd Re sults o f Ope ra tio ns” in o ur a nnua l re po rt o n F

• rm 10-

K fo r the fisc a l ye a r e nde d Ma rc h 31, 2020. Ple a se re fe r to the a ppe ndix se c tio n o f this pre se nta tio n fo r re c o nc ilia tio n o f the No n-GAAP fina nc ia l me a sure s to the mo st dire c tly c o mpa ra b le GAAP me a sure s. If this pre se nta tio n re fe re nc e s histo ric a l no n-GAAP fina nc ia l me a sure s, the se me a sure s a re lo c a te d o n the “Inve sto r Re la tio ns” se c tio n o f o ur we b site , www.fle x.c o m a lo ng with the re q uire d re c o nc ilia tio n to the mo st c o mpa ra b le GAAP fina nc ia l me a sure s. T he fig ure s pre se nte d in this pre se nta tio n ha ve b e e n ro unde d. T his ma y le a d to individua l va lue s no t a dding up to the to ta ls pre se nte d. T he fo llo wing b usine ss se g me nt a c ro nyms will b e use d thro ug ho ut this pre se nta tio n:

Automotive : a uto no mo us, c o nne c tivity, e le c trific a tio n a nd

sma rt te c hno lo g ie s.

He a lth Solutions: me dic a l de vic e s, me dic a l e q uipme nt, a nd

drug de live ry.

Industr ia l: c a pita l e q uipme nt, industria l de vic e s, re ne wa b le &

g rid e dg e a nd po we r syste ms.

Consume r De vic e s: mo b ile a nd hig h ve lo c ity c o nsume r

de vic e s.

L ife style : a pplia nc e s, c o nsume r pa c ka g ing , flo o rc a re , mic ro

mo b ility a nd a udio .

CE C: da ta infra struc ture , e dg e infra struc ture a nd

c o mmunic a tio ns infra struc ture .

F le x Re liability Solutions F le x Agility Solutions

2

Re va thi Adva ithi, CE O

Busine ss Update

3 3

COVID- 19 Update

Prio ritizing e mplo ye e he a lth a nd sa fe ty a nd pa rtne ring with c usto me rs a nd supplie rs to a ddre ss

• ng o ing c ha lle ng e s

Managing c osts pr ude ntly

• I

mple me nting re struc turing during Q2 F Y2021 a s pa rt o f a lig nme nt to ne w stra te g y

• T

e mpo ra ry a uste rity me a sure s in pla c e until o ve ra ll e c o no mic c o nditio ns impro ve

• Stro ng liq uidity po sitio n a nd

disc ipline d use d o f c a sh during this pe rio d

Pr ior ity r e mains e mploye e he alth and safe ty

• 20 millio n+ ma sks pro duc e d to -

da te fo r e mplo ye e use

• F

le xib le wo rk fro m ho me po lic ie s b e ing ma de a va ila b le to g lo b a l wo rkfo rc e

• Suppo rting lo c a l c o mmunitie s with

PPE do na tio ns

Suppor ting c ustome r s and supplie r s

• All site s g lo b a lly a re b a c k in

pro duc tio n

• Mo nito ring o ng o ing disruptio ns in

c e rta in g e o g ra phie s

• Ma na g ing thro ug h e le va te d le a d

time s fo r c e rta in c o mpo ne nts

4 4

Q1 F Y2021 F ina nc ia l Summar y

129 134

Ma r-19 Ma r-20

• Adj. F

r e e Cash F low

($M)

114 (74) 204 207 3.3% 3.8%

F Y19 F Y20

• Adj. Ope r

ating Inc ome

($M)

• Adj. Ope ra ting Ma rg in

208 163 3.4% 3.2% 6,226 6,176 5,484 5,153

Q4 Q1

Re ve nue

($M)

$0.27 $0.27 $0.28 $0.23

Q4 Q1

• Adj. E

ar nings Pe r Shar e

$0.34

Ma r-19 Ma r-20 Jun-19 Jun-20 Ma r-19 Ma r-20 Jun-19 Jun-20 Ma r-19 Ma r-20 Jun-19 Jun-20 Ma r-19 Ma r-20 Jun-19 Jun-20

Pre se rve d pro fita b ility thro ug h o pe ra tio na l a nd c o st disc ipline de spite c ha lle ng ing de ma nd e nviro nme nt

5 5

Q1 F Y2021 Busine ss Hig hlig hts

Dive rsific a tio n stra te g y a nd so und e xe c utio n he lpe d drive a re a s o f stre ng th de spite o ve ra ll mute d e nviro nme nt

• COVI

D-19 c o ntinue d to a ffe c t pro duc tio n a nd de ma nd

• F

le x Re lia b ility So lutio ns re ve nue o f $2.2B, -12% Q/ Q a nd -1% Y/ Y

• He a lth So lutio ns te a m e xe c ute d we ll o n c ritic a l c a re pro duc t ra mps,

suc h a s ve ntila to rs a nd te sting e q uipme nt

• F

le x Ag ility So lutio ns re ve nue o f $2.9B, -1% Q/ Q, -25% Y/ Y

• CE

C ra mpe d to me e t ne two rking a nd c o mpute de ma nd fo r wo rk a nd le a rn-fro m-ho me a pplic a tio ns

• T

e a ms wo rke d pro duc tive ly, wo n ne w b usine ss, a nd fo und b e tte r wa ys to o pe ra te in the c urre nt se tting

• L

a unc he d ne w Virtua l Custo me r Pla tfo rm to sho wc a se uniq ue c a pa b ilitie s a t g lo b a l site s to ne w c usto me rs

• F
• c use d o n g ro wth thro ug h ne w wins in ta rg e te d ma rke ts, suc h a s

me dic a l mo nito ring , industria l ro b o tic s a nd b e ve ra g e a pplia nc e

Dr ive disc ipline d, susta ina b le e xe c utio n Manage po rtfo lio to impro ve mix a nd pro fita b ility Pur sue de sig n-le d ma nufa c turing fo r b e tte r ma rg ins Gr

• w

drive pro fita b le g ro wth a nd ma rke t le a de rship Ge ne r ate a djuste d F CF with prude nt c a pita l a llo c a tio n

Guide d by c onsiste nt busine ss pr inc iple s

6

Chris Co llie r, CF O

Q1 2021 F inanc ial Re sults

7 7

Q1 F Y2021 Inc ome Sta te me nt Summa r y

($M, e xc e pt pe r sha re a mo unts)

Pr ior Yr Cur r e nt Qtr

June 28, 2019 June 26, 2020

Ne t sa le s $6,176 $5,153 Adjuste d o pe ra ting inc o me 208 163 Adjuste d ne t inc o me 138 116 Adjuste d E PS $0.27 $0.23 GAAP inc o me b e fo re inc o me ta xe s $64 $67 GAAP ne t inc o me 45 52 GAAP E PS $0.09 $0.10

Pre se rve d pro fita b ility thro ug h o pe ra tio na l a nd c o st disc ipline de spite c ha lle ng ing de ma nd e nviro nme nt

8 8

Qua r te r ly F ina nc ia l Highlig hts

404 318 6.5% 6.2%

2.5% 2.6% 2.7% 2.8% 2.9% 3.0% 3.1% 3.2% 3.3% 3.4% 3.5% 3.6% 3.7% 3.8% 3.9% 4.0% 4.1% 4.2% 4.3% 4.4% 4.5% 4.6% 4.7% 4.8% 4.9% 5.0% 5.1% 5.2% 5.3% 5.4% 5.5% 5.6% 5.7% 5.8% 5.9% 6.0% 6.1% 6.2% 6.3% 6.4% 6.5% 6.6% 6.7% 6.8% 6.9% 7.0% 7.1% 7.2% 7.3% 7.4% 7.5% 7.6% 7.7% 7.8%

Jun-19 Jun-20

• Adj. Gr
• ss Pr
• fit

($M)

• Adj. Gro ss Ma rg in

196 155 3.2% 3.0%

Jun-19 Jun-20

% o f Re ve nue

208 163 3.4% 3.2%

Jun-19 Jun-20

• Adj. Ope ra ting Ma rg in
• Adj. SG&A

($M)

• Adj. Ope r

ating Inc ome

($M)

So lid o pe ra tio na l e xe c utio n in a dyna mic a nd c ha lle ng ing e nviro nme nt

9 9

Re ve nue

• Adj. Ope r

ating Inc ome & Mar gin

($M) Q/ Q Gro wth Y/ Y Gro wth ($M)

F le x Re liability Solutions

$2,241

• 12%
• 1%

$115 5.1%

He alth Solutions: Critic a l COVI

D pro duc t ra mps o ffse t e xpe c te d so ftne ss in de ma nd fo r e le c tive surg e rie s

Automotive : Multi-we e k fa c to ry shutdo wns pre ssure d

b o th re ve nue a nd pro fita b ility

Industr ial: Pe rfo rme d a s e xpe c te d with re ne wa b le

e ne rg y a nd c o re industria l mo de stly de c lining

F le x Agility Solutions

$2,912

• 1%
• 25%

$72 2.5%

CE C: Stro ng c ritic a l infra struc ture de ma nd fro m

ne two rking a nd c lo ud c usto me rs

L ife style : Re duc e d de ma nd due to lo we r re ta il sa le s

a nd c o nstra ine d pro duc tio n due to COVI D-19

Consume r De vic e s: Sig nific a nt de ma nd a nd

pro duc tio n c o nstra ints due to COVI D-19

Co rpo ra te Se rvic e s & Othe r*

• ($24)
• T
• tal

$5,153

• 6%
• 17%

$163 3.2%

Q1 F Y2021 Se g me nt Pe r for manc e

*Co rpo rate Se rvic e s and Othe r: c e ntralize d administrative c o sts that are no t inc lude d in the asse ssme nt o f the pe rfo rmanc e o f e ac h o f the ide ntifie d se g me nts

10 10

Cash F low Ge ne r a tion Highlig hts

*Ne t Capital E xpe nditure s is c alc ulate d as purc hase s o f pro pe rty and e q uipme nt minus pro c e e ds fro m the dispo sitio n o f pro pe rty and e q uipme nt.

Adjuste d F r e e Cash F low ($M)

114 187 238 134 (74)

Jun-19 Se p-19 De c -19 Ma r-20 Jun-20

3- Months E nde d

($M)

(Jun 26, 2020)

GAAP ne t inc o me $52 De pre c ia tio n, a mo rtiza tio n a nd o the r impa irme nt c ha rg e s 156 Cha ng e in wo rking c a pita l a nd o the r (e xc luding ABS) (180) Purc ha se s o f pro pe rty & e q uipme nt, ne t (102)

Adjuste d F r e e Cash F low (74)

De b t pa yme nts, ne t 747 Re duc tio n in ABS le ve ls (655) Othe r inve sting a nd fina nc ing , ne t (6)

Ne t c hange in c ash and c ash e quivale nts $12

123 95 55 83 102

Jun-19 Se p-19 De c -19 Ma r-20 Jun-20

Ne t Capital E xpe nditur e s* ($M)

Ope ra tio na lly fo c use d o n re turning to po sitive a djuste d fre e c a sh flo w g e ne ra tio n

11 11

L iquidity a nd Ca sh Position Update

433 500 314 600 425 650 325 54 67 151 79

CY20 CY21 CY22 CY23 CY24 CY25 CY26 CY27 CY28 CY29 CY30

($M) Balances as of June 26th, 2020

1,935

c ash

1,750

r e volve r

L iq uidity

 T

e rm lo a ns  No te s De bt Pr

• file
• I

ssue d $750M in de b t in Ma y 2020 to c o st e ffe c tive ly e xte nd de b t dura tio n

• F

le xib le a nd b a la nc e d ma turity pro file with no sig nific a nt ne a r- te rm ma turitie s

• I

nve stme nt g ra de ra te d Cash and L iquidity Manage me nt

• Ample a c c e ss to liq uidity so urc e s
• T
• ta l liq uidity (re vo lve r a nd c a sh) = $3.7B
• $700m o f a dditio na l liq uidity a va ila b le thro ug h undra wn ABS

Ke y Cr e dit Me tr ic s Ne t De b t/ Adjuste d E BI T DA 1.3x

• Wt. Avg . ma turity ~5.1 ye a rs
• Wt. Avg . c o st o f de b t ~ 3.8%

Stro ng b a la nc e she e t e nsuring a mple liq uidity fo r b usine ss ne e ds

12 12

Se c ond Quar te r F isc al 2021 Update – Se pte mbe r 2020

F le x Re liability Solutions Se gme nt

Re ve nue up 5% to 10% Q/ Q

F le x Agility Solutions Se gme nt

Re ve nue up 5% to 10% Q/ Q

F le x Busine ss Se g me nts

Ope r ational Be ne fits

Automotive He a lth Solutions Communic a tions, E nte rprise & Cloud Consume r De vic e s L ife style Industria l

• Susta ine d de ma nd

fo r dura b le g o o ds tha t suppo rt re mo te wo rking a nd sc ho o ling

• Co nsume r spe nding
• n o the r no n-

e sse ntia l g o o ds still we a ke r tha n pre - pa nde mic le ve ls

• Critic a l infra struc ture

de ma nd c o ntinue s to b e stro ng

• I

mpro ve me nt in pro duc tio n c a pa c ity b o o sting shipme nts

• Mo b ile de ma nd

re b o unding se q ue ntia lly

• I

mpro ving fro m June q ua rte r run ra te

• Pha se d pro duc tio n

re sume d in mid-Ma y

• Sho rt-te rm vo lume

re duc tio ns a c ro ss pro duc t po rtfo lio

• Co nsiste ntly stro ng

de ma nd fo r COVI D- 19-re la te d c ritic a l pro duc ts

• CGM pro duc t ra mp

re ma ins o n tra c k

• E

le c tive surg e ry de ma nd so ftne ss pe rsists

• He a lthy de ma nd fo r

po we r a nd re ne wa b le e ne rg y pro duc ts

• Ca pita l e q uipme nt

se e ing slig ht pic k-up tho ug h se mic a p de ma nd mo dula ting

13 13

Guidanc e

Re ve nue $5,400 - $5,700 millio n Adjuste d Ope ra ting I nc o me $180 - $220 millio n Adjuste d E a rning s Pe r Sha re $0.25 - $0.31 GAAP I nc o me Be fo re I nc o me T a xe s $35 – $70 millio n GAAP E a rning s Pe r Sha re $0.05 – $0.11 I nte re st & Othe r E xpe nse $35 - $40 millio n Adjuste d I nc o me T a x Ra te Hig h e nd o f 10% to 15% WASO ~502 millio n sha re s

Guidanc e fo r adjuste d o pe rating inc o me e xc lude s appro ximate ly $25 millio n fo r sto c k-b ase d c o mpe nsatio n, $15 millio n intang ib le amo rtizatio n e xpe nse , appro ximate ly $35 millio n to $40 millio n fo r inte re st and o the r e xpe nse s and appro ximate ly $70 millio n re struc turing and o the r c harg e s fro m GAAP inc o me b e fo re inc o me taxe s. Guidanc e fo r GAAP e arning s pe r share inc lude s appro ximate ly $0.02 fo r ne t intang ib le amo rtizatio n, $0.05 fo r sto c k-b ase d c o mpe nsatio n e xpe nse and $0.13 fo r re struc turing and o the r c harg e s no t inc lude d in adjuste d e arning s pe r share .

Se c ond Quar te r F isc al 2021 Update – Se pte mbe r 2020

Se gme nt Re ve nue Outlook (Q/ Q)

Up 5% to 10%

F le x Re liability Solutions F le x Agility Solutions

Up 5% to 10%

14 14

Moving for wa r d

• Se e ing b ro a d-b a se d se q ue ntia l impro ve me nts a s COVI

D-19 re la te d disruptio ns e a se

• Visib ility is impro ving , b ut c o ntinue d unc e rta inty re la te d to the

pa nde mic pe rsists

• Mo nito ring the ma c ro de ma nd e nviro nme nt c a re fully
• Ope ra ting with disc ipline while se rving c usto me rs a nd fo c using o n

ke y g ro wth se g me nts

• Driving impro ve me nts to re spo nd to the ne w de ma nds o f a da ptive

supply c ha ins a nd re g io na lize d pro duc tio n

15 15

F

• r mo re info rma tio n, ple a se visit inve sto rs.fle x.c o minve sto rs.fle x.c o m

16 16

Qua rte r- e nde d Qua rte r- e nde d Qua rte r- e nde d Qua rte r- e nde d

June 26, 2020 Ma rc h 31, 2020 June 28, 2019 Ma rc h 31, 2019 ($T ho usa nd s)

GAAP inc o me (lo ss) b e fo re inc o me ta xe s $67,383 $44,680 $64,109 ($36,392) I nta ng ib le a mo rtiza tio n 15,176 15,203 17,082 17,337 Sto c k-b a se d c o mpe nsa tio n e xpe nse 12,769 18,214 15,227 14,971 Custo me r re la te d a sse t impa irme nts (76) 10,730 483 19,576 Re struc turing c ha rg e s 9,682 17,284 56,192 12,880 L e g a l a nd o the r 27,681 (1,742) 1,610 10,281 Othe r c ha rg e s, ne t 1,347 74,545 1,463 118,929 I nte re st a nd o the r, ne t 28,910 28,077 51,694 46,565 No n-GAAP o pe ra ting inc o me $162,872 $206,991 $207,860 $204,147 No n-GAAP o pe ra ting ma rg in* 3.2% 3.8% 3.4% 3.3%

For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods.

Appe ndix: Re c onc ilia tion of GAAP to Non- GAAP Me asur e s

*We calculate our Non-GAAP operating margin as current quarter Non-GAAP operating income divided by current quarter revenue.

17 17 For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods.

Appe ndix: Re c onc ilia tion of GAAP to Non- GAAP Me asur e s

Qua rte r- e nde d Qua rte r- e nde d Qua rte r- e nde d Qua rte r- e nde d

($T ho usa nd s) June 26, 2020 Ma rc h 31, 2020 June 28, 2019 Ma rc h 31, 2019

GAAP ne t inc o me (lo ss) $51,820 $48,259 $44,872 ($64,352) I nta ng ib le a mo rtiza tio n 15,176 15,203 17,082 17,337 Sto c k-b a se d c o mpe nsa tio n e xpe nse 12,769 18,214 15,227 14,971 Re struc turing c ha rg e s 9,682 17,284 56,192 12,880 Custo me r re la te d a sse t impa irme nts (76) 10,730 483 19,576 L e g a l a nd o the r 27,681 (1,742) 1,610 10,281 Othe r c ha rg e s inte re st a nd o the r, ne t 1,346 66,217 7,091 120,293 Adjustme nts fo r ta xe s (2,511) (31,004) (4,872) 10,247 No n-GAAP ne t inc o me $115,887 $143,161 $137,685 $141,233 Dilute d e a rning s (lo sse s) pe r sha re : GAAP* $0.10 $0.10 $0.09 ($0.12) NON-GAAP $0.23 $0.28 $0.27 $0.27 Ba sic sha re s use d in c o mputing pe r sha re a mo unts 497,920 501,446 514,238 520,379 Dilute d sha re s use d in c o mputing pe r sha re a mo unts 501,632 505,593 517,550 522,460

*Basic shares were used in calculating diluted GAAP EPS for the quarter ended March 31, 2019 due to the net loss recognized.

18 18

Qua rte r- e nde d Qua rte r- e nde d

June 26, 2020 June 28, 2019 ($T ho usa nd s) % o f re ve nue % o f re ve nue

GAAP g ro ss pro fit $303,553 5.9% $352,759 5.7% Sto c k-b a se d c o mpe nsa tio n e xpe nse 4,006 2,940 Custo me r re la te d a sse t impa irme nts 437 483 Re struc turing c ha rg e s 9,666 47,405 L e g a l a nd o the r 350

• No n-GAAP g ro ss pro fit

$318,012 6.2% $403,587 6.5% GAAP SG&A e xpe nse s $190,721 3.7% $209,624 3.4% Sto c k-b a se d c o mpe nsa tio n e xpe nse (8,763) (12,287) Custo me r re la te d a sse t impa irme nt, le g a l a nd o the r (26,818) (1,610) No n-GAAP SG&A e xpe nse s $155,140 3.0% $195,727 3.2%

For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods.

Appe ndix: Re c onc ilia tion of GAAP to Non- GAAP Me asur e s

19 19 For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods.

Appe ndix: Re c onc ilia tion of GAAP to Non- GAAP Me asur e s

Qua rte r- e nde d

June 26, 2020 ($T ho usa nd s)

Se g me nt inc o me : F le x Ag ility So lutio ns $71,807 F le x Re lia b ility So lutio ns 114,737 Co rpo ra te a nd Othe r* (23,672) T

• ta l se g me nt inc o me :

$162,872 Ope ra ting ma rg in: F le x Ag ility So lutio ns 2.5% F le x Re lia b ility So lutio ns 5.1%

Qua rte r- E nde d

June 26, 2020 ($T ho usa nd s)

Re c onc iliation of se gme nt inc ome to inc ome be for e inc ome taxe s

T

• ta l se g me nt inc o me

$162,872 I nta ng ib le a mo rtiza tio n 15,176 Sto c k-b a se d c o mpe nsa tio n e xpe nse 12,769 Custo me r re la te d a sse t impa irme nts (76) Re struc turing c ha rg e s 9,682 L e g a l a nd o the r 27,681 Othe r c ha rg e s, ne t 1,347 I nte re st a nd o the r, ne t 28,910 I nc o me b e fo re inc o me ta xe s $67,383

*Corporate and Other: corporate service costs that are not included in the assessment of the performance of each of the identified reporting segments.

20 20 For more details on the GAAP to Non-GAAP adjustments for current and historical periods, please refer to the Investor Relations section of our website which includes press releases and summary financials of the respective periods.

Appe ndix: Re c onc ilia tion of GAAP to Non- GAAP Me asur e s

Qua rte r- e nde d Qua rte r- e nde d Qua rte r- e nde d Qua rte r- e nde d Qua rte r- e nde d Qua rte r- e nde d

($T ho usa nd s) June 26, 2020 Ma rc h 31, 2020 De c e mb e r 31, 2019 Se pte mb e r 27, 2019 June 28, 2019 Ma rc h 31, 2019

Ne t c a sh pro vide d b y (use d in) o pe ra ting a c tivitie s ($629,390) $166,030 ($50,894) ($991,546) ($656,866) ($642,419) Re duc tio n in ABS le ve ls 654,769

• Ca sh c o lle c tio ns o f ABS po sitio ns a nd o the r

3,460 50,525 343,928 1,273,431 893,735 897,737 Ne t c a pita l e xpe nditure s (102,406) (82,545) (55,239) (94,997) (123,214) (126,019) Adjuste d fre e c a sh flo w ($73,567) $134,010 $237,795 $186,888 $113,655 $129,299

Adjusted free cash flow is calculated as operating cash flow for the quarter less net capital expenditures adding back cash collections of deferred purchase price and certain receivables sold to certain financial institutions under a customer's supplier financing program in the second quarter of fiscal 2020 that subsequently qualified for operating cash flow treatment per GAAP in the third quarter of fiscal year 2020. In addition, it includes collection of the deferred purchase price receivables which the Company repurchased as part of the ABS program amended in the third quarter of fiscal year 2020. In the first quarter of fiscal year 2021, we proactively and strategically utilized the proceeds of our debt issuance during the quarter to reduce the outstanding balance of our ABS programs. We reduced the balance on this short-term financing product by $655 million sequentially, which has the accounting effect of reducing our cash flow from operations and is excluded from the adjusted free cash flow. Adjusted free cash flow also excludes impacts related to certain vendor programs that is required for GAAP. Adjusted free cash flow is a non-GAAP financial measure and may not be defined and calculated by other companies in the same manner.

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Appe ndix: Re c onc ilia tion of GAAP to Non- GAAP Me asur e s

Qua rte r- e nde d

June 26, 2020 ($T ho usa nd s, e xc e pt fo r the d e b t a nd ne t d e b t to E BIT DA ra tio )

GAAP Adjustme nts Non- GAAP

Pre ta x inc o me $67,383 $66,578 $133,961 De pre c ia tio n 103,727

• 103,727

Amo rtiza tio n 15,176 (15,176)

• I

nte re st, ne t $30,571 $5,280 $35,851 E BI T DA* 216,857 56,682 273,539 E BI T DA – Ro lling 4 Qua rte rs 756,360

• 1,277,293

T

• ta l De b t

$3,585,449

• $3,585,449

De b t to E BI T DA* 4.7x (1.9x) 2.8x Ca sh a nd c a sh e q uiva le nts $1,935,081

• $1,935,081

Ne t De b t $1,650,368

• $1,650,368

Ne t De b t to E BI T DA* 2.2x (0.9x) 1.3x

*Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Debt/EBITDA are non-GAAP financial measures. EBITDA is derived by adjusting for net interest and adding back depreciation to non-GAAP pretax income. Quarterly Debt to EBITDA is calculated by dividing the Company's total debt as of the date presented by LTM EBITDA. Net Debt to EBITDA is calculated by subtracting the Company's total cash from the Company's total debt and dividing it by LTM EBITDA. Non-GAAP pretax income excludes certain amounts that are included in the most directly comparable measures under GAAP including stock-based compensation expense, intangible amortization, restructuring charges, customer related asset impairments, legal and other, and certain other charges or income.

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