Re sults for Q2 F isc al 2021 E a rning s Anno unc e me nt: Oc to - - PowerPoint PPT Presentation

Re sults for Q2 F isc al 2021

E a rning s Anno unc e me nt: Oc to b e r 29, 2020 (Qua rte r E nde d Se pte mb e r 25, 2020)

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Risks and 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 COVI D-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 COVI D-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 . I n a dditio n, the COVI D-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 d e 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. Our sha re re purc ha se pro g ra m do e s no t o b lig a te the Co mpa ny to re purc ha se a spe c ific numb e r o f sha re s a nd ma y b e suspe nde d o r te rmina te d a t a ny time witho ut prio r no tic e . 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. I f 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 “I nve 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.

Industria 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.

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

c o mmunic a tio ns infra struc ture .

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 .

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.

F le x Re lia bility Solutions F le x Ag ility Solutions

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Re va thi Adva ithi, CE O

Busine ss Update

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Q2 F Y2021 F inanc ial Summar y

114

• 74
• Adj. F

re e Ca sh F low

($M)

187 326 208 163 3.4% 3.2%

F Y20 F Y21

• Adj. Ope ra ting Inc ome

($M)

• Adj. Ope ra ting Ma rg in

227 247 3.7% 4.1% 6,176 6,088 5,153 5,985

Q1 Q2

Re ve nue

($M)

$0.27 $0.31 $0.23 $0.36

Q1 Q2

• Adj. E

a rning s Pe r Sha re

Jun-19 Jun-20 Se p-19 Se p-20 Jun-19 Jun-20 Se p-19 Se p-20 Jun-19 Jun-20 Se p-19 Se p-20 Jun-19 Jun-20 Se p-19 Se p-20

Disc ipline d fo c us a nd e xe c utio n thro ug h a c ha lle ng ing ma c ro e nviro nme nt

4 4

Q2 F Y2021 Busine ss Highlights

Dive rsific a tio n stra te g y a nd ta rg e te d c o mme rc ia l fo c us pro vide d stre ng th a nd b a la nc e de spite a c ha lle ng ing ma c ro e nviro nme nt

• COVI

D-19 c o ntinue d to a ffe c t de ma nd

• F

le x Re lia b ility So lutio ns re ve nue o f $2.7B, +19% Q/ Q a nd +6% Y/ Y

• He a lth So lutio ns de ma nd fo r COVI

D-re la te d c ritic a l c a re pro duc ts re ma ine d stro ng

• Auto mo tive re c o ve re d me a ning fully fro m Q1 tro ug h, b ut still do wn Y/ Y
• F

le x Ag ility So lutio ns re ve nue o f $3.3B, +14% Q/ Q, -7% Y/ Y

• Sig nific a nt re c o ve ry in L

ife style drive n b y ro b ust de ma nd fo r pre mium pro duc ts in flo o rc a re , a pplia nc e a nd a udio

• Ste a dy de ma nd fo r 5G pro duc ts a nd c ritic a l infra struc ture suppo rting

wo rk a nd le a rn fro m ho me a pplic a tio ns in CE C

• Stro ng o pe ra ting pe rfo rma nc e de spite to p line pre ssure
• Adjuste d o pe ra ting ma rg in e xpa nsio n o f +40 b ps Y/ Y
• Ro b ust a djuste d fre e c a sh flo w g e ne ra tio n o f $326M

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

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Pa ul L undstro m, CF O

Q2 2021 F inanc ial Re sults

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Q2 F Y2021 Inc ome State me nt Summar y

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

Pr ior Yr Cur r e nt Qtr

Se pte mb e r 27, 2019 Se pte mb e r 25, 2020

Ne t sa le s $6,088 $5,985 Adjuste d o pe ra ting inc o me 227 247 Adjuste d ne t inc o me 158 180 Adjuste d E PS $0.31 $0.36 GAAP inc o me (lo ss) b e fo re inc o me ta xe s ($96) $153 GAAP ne t inc o me (lo ss) (117) 113 GAAP E PS (lo ss) ($0.23) $0.22

Disc ipline d fo c us a nd e xe c utio n thro ug h a c ha lle ng ing ma c ro e nviro nme nt

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Quar te r ly F inanc ial Highlights

414 423 6.8% 7.1%

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% 7.9% 8.0% 8.1% 8.2% 8.3% 8.4% 8.5%

Se p-19 Se p-20

• Adj. Gross Profit

($M)

• Adj. Gro ss Ma rg in

186 177 3.1% 3.0%

Se p-19 Se p-20

% o f Re ve nue

227 247 3.7% 4.1%

Se p-19 Se p-20

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

($M)

• Adj. Ope ra ting Inc ome

($M)

So lid e xe c utio n dro ve ma rg in e xpa nsio n

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Re ve nue

• Adj. Ope ra ting Inc ome & Ma rg in

($M) Q/ Q Y/ Y ($M) Y/ Y (%) Y/ Y

F le x Re liability Solutions

$2,667

19% 6%

$179

12%

6.7%

+30 b ps

He a lth Solutions: COVI

D-re la te d c ritic a l c a re pro duc t de ma nd re ma ine d stro ng

Automotive : Site s o pe ra te d fo r full q ua rte r,

a lle via ting prio r unde r a b so rptio n dra g

Industria l: Gro wth drive n b y po we r so lutio ns a nd

re ne wa b le s

F le x Agility Solutions

$3,318

14%

• 7%

$88

• 7%

2.7%

+10 b ps

CE C: Ne two rking a nd c lo ud g ro wth o ffse t we a k

e nte rprise I T spe nding

L ife style : I

nc re a se d de ma nd fo r hig h-e nd dura b le g o o ds a c ro ss multiple pro duc t c a te g o rie s

Consume r De vic e s: Pro lo ng e d re c o ve ry in e me rg ing

ma rke ts

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

• ($20)
• T
• tal

$5,985 16%

• 2%

$247 9% 4.1% +40 bps

Q2 F Y2021 Se gme 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

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Cash F low Highlights

*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)

187 238 134 (74) 326

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

3- Months E nde d 6- Months E nde d

($M)

(Se p 25, 2020)

GAAP ne t inc o me $113 $165 De pre c ia tio n, a mo rtiza tio n a nd o the r impa irme nt c ha rg e s 190 346 Cha ng e in wo rking c a pita l a nd o the r (e xc luding ABS a nd o the r) 92 (88) Purc ha se s o f pro pe rty & e q uipme nt, ne t (69) (171)

Adjuste d F r e e Cash F low 326 252

De b t pro c e e ds, ne t 201 938 Re duc tio n in ABS le ve ls (132) (786) Othe r inve sting a nd fina nc ing , ne t 29 32

Ne t c hange in c ash and c ash e quivale nts $424 $436

95 55 83 102 69

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

Ne t Ca pita l E xpe nditure s* ($M)

Stro ng Q2 c a sh flo w re b o und

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L iquidity and Cash Position

500 318 600 425 650 325 69 205 79 250 325

CY20 CY21 CY22 CY23 CY24 CY25 CY26 CY27 CY28 CY29 CY30

($M) Balances as of September 25th, 2020

2,359

c ash

1,750

r e volve r

L iq uidity

 T

e rm lo a ns  No te s De bt Pr

• file
• Bo nd issua nc e o f $575m in Aug ust 2020 to c o st e ffe c tive ly

e xte nd de b t dura tio n fro m 4.8 ye a rs to 5.7 ye a rs

• 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) = $4.1B
• $0.8B 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 1.1x

• Wt. Avg . ma turity ~5.7 ye a rs
• Wt. Avg . c o st o f de b t 4%

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

11 11

T hir d Quar te r F isc al 2021 Update – De c e mbe r 2020

F le x Re liability Solutions Se gme nt

Re ve nue up lo w to mid sing le dig its Q/ Q

F le x Agility Solutions Se gme nt

Re ve nue up lo w to hig h sing le dig its Q/ Q

F le x Busine ss Se g me nts

Ope r ational Be ne fits

Automotive He alth Solutions Communic ations, E nte r pr ise & Cloud Consume r De vic e s L ife style Industr ial

• Ste a dy de ma nd in

multiple pre mium pro duc t c a te g o rie s

• Susta ine d stre ng th in

5G a nd c ritic a l infra struc ture pro duc ts

• E

nte rprise I T spe nding so ft c o nsiste nt with ma c ro funda me nta ls

• Me a ning ful re c o ve ry

in e me rg ing ma rke ts

• n inc re a se d

de ma nd fo r mo b ile de vic e s

• All ma jo r

g e o g ra phie s re c o ve ring

• E

xpe c ting o ve ra ll g lo b a l pro duc tio n will b e do wn hig h te e ns fo r the ye a r

• Ce rta in COVI

D- re la te d pro duc ts b e g inning to fla tte n/ ra mp do wn

• E

le c tive pro c e dure de ma nd ye t to re c o ve r

• Stro ng re ne wa b le

e ne rg y de ma nd

• Co re industria l c a pe x

b e g inning to re turn

12 12

Guidanc e

Re ve nue $6,000 - $6,400 millio n Adjuste d Ope ra ting I nc o me $235 - $275 millio n Adjuste d E a rning s Pe r Sha re $0.34 - $0.40 GAAP I nc o me Be fo re I nc o me T a xe s $125 – $160 millio n GAAP E a rning s Pe r Sha re $0.21 – $0.27 I nte re st & Othe r E xpe nse $40 - $45 millio n Adjuste d I nc o me T a x Ra te Mid ra ng e o f 10% to 15% WASO ~504 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 $40 millio n to $45 millio n fo r inte re st and o the r e xpe nse s and appro ximate ly $30 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 $0.03 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 $0.05 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 .

T hir d Quar te r F isc al 2021 Update – De c e mbe r 2020

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

Up lo w to mid sing le dig its

F le x Re lia bility Solutions F le x Ag ility Solutions

Up lo w to hig h sing le dig its

13 13

Moving for war d

• Se q ue ntia l impro ve me nts fo r mo st e nd ma rke ts
• T

e mpo ra ry dip in He a lth So lutio ns de ma nd due to c o mple tio n o f a c c e le ra te d COVI D-re la te d ra mps c o uple d with slo w re c o ve ry o f e le c tive me dic a l pro c e dure s

• Visib ility is impro ving tho ug h mo nito ring de ma nd e nviro nme nt a nd

sig na ls c a re fully

• E

xpe c ting se a so na lity e ffe c ts in la tte r pa rt o f the ye a r

• 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

• Co ntinuo usly e va lua ting po rtfo lio to impro ve mix, g e ne ra te supe rio r

re turns o n inve stme nts, a nd ma ximize lo ng -te rm sha re ho lde r va lue

14 14

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

15

T hank you.

16 16

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Quar te r

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Se pte mb e r 25, 2020 June 26, 2020 Se pte mb e r 27, 2019 June 28, 2019 ($ in Millio ns)**

GAAP inc o me (lo ss) b e fo re inc o me ta xe s $153 $67 ($96) $64 I nta ng ib le a mo rtiza tio n 16 15 16 17 Sto c k-b a se d c o mpe nsa tio n e xpe nse 24 13 19 15 Custo me r re la te d a sse t impa irme nts (re c o ve rie s) (3)

• 91
• Re struc turing c ha rg e s

35 10 128 56 L e g a l a nd o the r

• 28

19 2 I nte re st a nd o the r, ne t 22 29 50 53 No n-GAAP o pe ra ting inc o me $247 $163 $227 $208 No n-GAAP o pe ra ting ma rg in* 4.1% 3.2% 3.7% 3.4%

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 iliation 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. **Amounts may not sum due to rounding.

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 iliation of GAAP to Non- GAAP Me asur e s

Quar te r

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($ in Millio ns, e xc e pt fo r E PS)** Se pte mb e r 25, 2020 June 26, 2020 Se pte mb e r 27, 2019 June 28, 2019

GAAP ne t inc o me (lo ss) $113 $52 ($117) $45 I nta ng ib le a mo rtiza tio n 16 15 16 17 Sto c k-b a se d c o mpe nsa tio n e xpe nse 24 13 19 15 Re struc turing c ha rg e s 35 10 128 56 Custo me r re la te d a sse t impa irme nts (re c o ve rie s) (3)

• 91
• L

e g a l a nd o the r

• 28

19 2 Othe r c ha rg e s (inc o me ), inte re st a nd o the r, ne t (3) 1 5 7 Adjustme nts fo r ta xe s (2) (3) (3) (5) No n-GAAP ne t inc o me $180 $116 $158 $138 Dilute d e a rning s (lo sse s) pe r sha re : GAAP* $0.22 $0.10 ($0.23) $0.09 NON-GAAP $0.36 $0.23 $0.31 $0.27 Ba sic sha re s use d in c o mputing pe r sha re a mo unts 501 498 513 514 Dilute d sha re s use d in c o mputing pe r sha re a mo unts 504 502 515 518

*Basic shares were used in calculating diluted GAAP EPS for the quarter ended September 27, 2019 due to the net loss recognized. **Amounts may not sum due to rounding.

18 18

Quar te r

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Se pte mb e r 25, 2020 Se pte mb e r 27, 2019 ($ in Millio ns)* % o f re ve nue % o f re ve nue

GAAP g ro ss pro fit $395 6.6% $189 3.1% Sto c k-b a se d c o mpe nsa tio n e xpe nse 6 4 Custo me r re la te d a sse t impa irme nts (re c o ve rie s) (2) 88 Re struc turing c ha rg e s 24 114 L e g a l a nd o the r

• 18

No n-GAAP g ro ss pro fit $423 7.1% $414 6.8% GAAP SG&A e xpe nse s $193 3.2% $205 3.4% Sto c k-b a se d c o mpe nsa tio n e xpe nse (18) (15) Custo me r re la te d a sse t re c o ve rie s(impa irme nt), le g a l a nd o the r 1 (4) No n-GAAP SG&A e xpe nse s $177 3.0% $186 3.1%

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 iliation of GAAP to Non- GAAP Me asur e s

*Amounts may not sum due to rounding.

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 iliation of GAAP to Non- GAAP Me asur e s

Quar te r

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Se pte mb e r 25, 2020 ($ in Millio ns)**

Se g me nt inc o me : F le x Ag ility So lutio ns $88 F le x Re lia b ility So lutio ns $179 Co rpo ra te a nd Othe r* ($20) T

• ta l se g me nt inc o me :

$247 Ope ra ting ma rg in: F le x Ag ility So lutio ns 2.7% F le x Re lia b ility So lutio ns 6.7%

Quar te r

• E

nde d

Se pte mb e r 25, 2020 ($ in Millio ns)**

Re c onc ilia tion of se g me nt inc ome to inc ome be fore inc ome ta xe s

T

• ta l se g me nt inc o me

$247 I nta ng ib le a mo rtiza tio n 16 Sto c k-b a se d c o mpe nsa tio n e xpe nse 24 Custo me r re la te d a sse t impa irme nts (re c o ve rie s) (3) Re struc turing c ha rg e s 35 I nte re st a nd o the r, ne t 22 I nc o me b e fo re inc o me ta xe s $153

*Corporate and Other: corporate services costs that are not included in the assessment of the performance of each of the identified reporting segments. **Amounts may not sum due to rounding

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 iliation of GAAP to Non- GAAP Me asur e s

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Quar te r

• e nde d

Quar te r

• e nde d

Quar te r

• e nde d

($ in Millio ns)* Se pte mb e r 25, 2020 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

Ne t c a sh pro vide d b y (use d in) o pe ra ting a c tivitie s $265 ($629) $166 ($51) ($992) ($657) Re duc tio n in ABS le ve ls 132 655

• Ca sh c o lle c tio ns o f ABS po sitio ns a nd o the r
• 2

51 344 1,273 894 Ne t c a pita l e xpe nditure s (69) (102) (83) (55) (95) (123) Adjuste d fre e c a sh flo w $326 ($74) $134 $238 $187 $114

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 half of fiscal year 2021, we proactively and strategically utilized the proceeds of our debt issuance during the period to reduce the outstanding balance of our ABS programs. We reduced the balance on this short-term financing product by $786 million year to date, 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. *Amounts may not sum due to rounding.

6- Months e nde d

($ in Millio ns)* Se pte mb e r 25, 2020

Ne t c a sh use d in o pe ra ting a c tivitie s ($365) Re duc tio n in ABS le ve ls 786 Ca sh c o lle c tio ns o f ABS po sitio ns a nd o the r 2 Ne t c a pita l e xpe nditure s (171) Adjuste d fre e c a sh flo w $252

21 21

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

Quar te r

• e nde d

Se pte mb e r 25, 2020 ($ in Millio ns, e xc e pt fo r the de b t a nd ne t de b t to E BI T DA ra tio )**

GAAP Adjustme nts Non- GAAP

Pre ta x inc o me $153 $69 $222 De pre c ia tio n 112

• 112

Amo rtiza tio n 16 (16)

• I

nte re st, ne t $35 $3 $38 E BI T DA* 316 56 372 E BI T DA – Ro lling 4 Qua rte rs 1,013 1,316 T

• ta l De b t

$3,802

• $3,802

De b t to E BI T DA* 3.8x (0.9x) 2.9x Ca sh a nd c a sh e q uiva le nts $2,359

• $2,359

Ne t De b t $1,443

• $1,443

Ne t De b t to E BI T DA* 1.4x (0.3x) 1.1x

*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. Additionally, non-GAAP interest includes costs related to our global AR securitization, AR factoring and other financing programs. **Amounts may not sum due to rounding. 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.