Results for Q3 Fiscal 2017 Earnings Announcement: January 26, 2017 - PowerPoint PPT Presentation

Results for Q3 Fiscal 2017 Earnings Announcement: January 26, 2017 (Quarter Ending December 31, 2016)

Risks and Non-GAAP Disclosures This presentation contains forward-looking statements, which are based on current expectations and assumptions that are subject to risks and uncertainties and actual results could materially differ. Such information is subject to change and we undertake no obligation to update these forward-looking statements. For a discussion of the risks and uncertainties, see our most recent filings with the Securities and Exchange Commission, including our current, annual and quarterly reports. Please refer to the appendix section of this presentation for the reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures for the current period results. If this presentation references historical non- GAAP financial measures, these measures are located on the “Investor Relations” s ection of our website, www.flex.com along with the required reconciliation to the most comparable GAAP financial measures. The following business group acronyms will be used throughout this presentation: Communications & Consumer Technologies High Reliability Solutions Industrial & Emerging HRS IEI CEC CTG Enterprise Compute Group Industries Medical: Consumer Health, Digital Health, Disposables, Drug Delivery, Diagnostics, Life Telecom, Networking, Server & Storage, Wearables, Fashion, Connected Living, Semiconductor & Capital Equipment, Office Sciences & Imaging Equipment. Storage & Security Appliance, Converged Gaming, Mobile, PCs/Printers. Solutions, Household Industrial & Lifestyle, Automotive: Vehicle Electronics, Connectivity, Infrastructure, Software Defined Product Industrial Automation & Kiosks, Energy & Clean Technologies. Solutions. Metering, Lighting. 1

Q3 FY2017 Income Statement Highlights Prior Yr Current Qtr December 31, 2015 December 31, 2016 ($M, except per share amounts) Net sales $6,763 $6,115 Adjusted operating income 236 223 Adjusted net income 196 183 Adjusted EPS $0.35 $0.34 GAAP income before income taxes 127 140 GAAP net income 149 129 GAAP EPS $0.27 $0.24 Q3 FY2017 Results vs. Guidance Net sales of $6.1B in the range of guidance $6.0 - $6.4B Adjusted operating income of $223M above the mid-point of guidance $205 - $235M Adjusted EPS of $0.34 towards the high-end of guidance $0.31 - $0.35 Please refer to the appendix section of this presentation for current period reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. 2 For all historical periods referenced in this presentation, refer to the Investor Relations section of our website.

Quarterly Financial Highlights Revenue & Adjusted Gross Margin Adjusted Operating Income Adj. Gross Margin ($M) ($M) 7.1% Adj. Operating Margin 7.1% 6.9% 6.9% 6.7% 3.6% 3.5% 3.5% 3.3% 3.2% 6,763 236 223 6,115 200 197 190 6,009 5,877 5,773 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Return on Invested Capital Adjusted Earnings Per Share (ROIC %) (EPS) $0.35 $0.34 $0.29 $0.28 22% 22% 22% $0.27 20% 20% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Please refer to the appendix section of this presentation for current period reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. 3 For all historical periods referenced in this presentation, refer to the Investor Relations section of our website.

Operating Performance by Business Group Target Adjusted Q3 FY17 Operating Margin Range (December 31, 2016) Rev$ OP$ OP% ($M) (adj.) (adj.) 3.0% Challenging demand environment but continuing to operate CEC $2,102 $62 3.0% within the targeted range. 3.5 2.5 3.2% Driving a more diversified customer base by leveraging CTG $1,849 $59 3.2% new technologies and the expansion into new markets. 4 2 3.5% Sequential improvement and progressing towards targeted IEI $1,141 $40 3.5% range, despite energy project delays. 4 6 8.1% Strong execution and margins remain meaningfully inside HRS $1,023 $83 8.1% the targeted range. 9 6 Corporate -- ($21) -- Services & Other 1 Total $6,115 $223 3.6% 1. Corporate services and other: corporate service costs that are not included in the assessment of the performance of each of the identified business groups. Please refer to the appendix section of this presentation for current period reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. 4 For all historical periods referenced in this presentation, refer to the Investor Relations section of our website.

Other Income Statement Comments » Interest & other • Q3 FY17 was $26M expense, net • Q4 FY17 outlook $25M-$30M » Adjusted • Q3 FY17 was 7.2% income tax rate • FY17 outlook 8-10% tax rate Reconciliation Aggregate impact on EPS $0.10: » between GAAP and • Stock based compensation $21M or $0.04 in EPS • Net intangible amortization $17M or $0.03 in EPS Adjusted EPS • Severance charges $16M or $0.03 in EPS Please refer to the appendix section of this presentation for current period reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. 5 For all historical periods referenced in this presentation, refer to the Investor Relations section of our website.

Cash Flows & Net Working Capital Three Nine Net Working Capital Months Months ($M) Ended Ended % Annualized Revenue (Dec 31, 2016) (Dec 31, 2016) ($M) 7.7% 7.7% 7.6% GAAP net income $129 $233 6.7% 6.6% Depreciation and amortization 128 388 Change in net working capital 214 174 1,851 Other operating cash flows, net (2) 218 1,808 1,796 1,789 1,626 Net cash provided by operating activities 469 1,013 Purchases of property & equipment, net (106) (385) Free Cash Flow 363 628 Other investing and financing, net (94) (208) Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Debt proceeds, net 126 90 Committed to return over 50% of annual Payments for share repurchases (75) (260) free cash flow to shareholders Net change in cash and cash equivalents $320 $250 Net Working Capital is calculated as accounts receivable, net adding back the reduction in accounts receivable resulting from the non-cash receivable sales plus inventories less accounts payable. Free Cash Flow is calculated as cash from operations less net purchases of property & equipment. 6 For all historical periods referenced in this presentation, refer to the Investor Relations section of our website.

Balanced Capital Structure Significant Debt Maturities ($M) (Calendar Year) Investment Grade Rating: Moody’s, S&P, Fitch Total Liquidity 4.625% Notes $3,357 Revolver 5% Notes 4.75% Notes $52 EURIBOR +100bps $1,500 Term Loan Term Loan LIBOR + 137.5bps Cash LIBOR + 137.5bps $1,857 $700 $600 $525 $500 $500 Liquidity 2017 2018 2019 2020 2021 2022 2023 2024 2025 Key Characteristics • Low cost of debt ~3.5% • Solid liquidity • Strong credit metrics (Debt / Adj. EBITDA (LTM) : 2.3x) • No significant near-term maturities Please refer to the appendix section of this presentation for current period reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. 7 For all historical periods referenced in this presentation, refer to the Investor Relations section of our website.

Q3 FY2017 Highlights and Key Trends Strong Capital Return Continued Commitment Cash Flow Portfolio Evolution Free Cash Flow Share Repurchases ($M) ($M) CEC CTG 34% FCF Yield Shares Outstanding (M) 30% Revenue 9.7% 9.3% 9.6% 8.3% Mix 7.3% 551 546 545 541 537 IEI HRS 19% 17% 363 36% 95 90 90 89 CEC 75 CTG 26% 158 24% 144 Adj. 121 114 Op. Profit Mix IEI HRS 16% 34% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 FCF yield is calculated based on (LTM free cash flow/outstanding shares at quarter-end) / share price at quarter-end. 50% 8 Please refer to the appendix section of this presentation for current period reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. For all historical periods referenced in this presentation, refer to the Investor Relations section of our website.

Revenue by Business Group Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17E $ $ $ $ $ Q/Q % Y/Y % Outlook Q/Q % ($M) Down 5 - 10% CEC 2,469 2,201 2,196 2,102 2,102 0% (15%) CTG Down 20 - 30% 2,058 1,364 1,314 1,665 1,849 11% (10%) IEI Up 10% - 15% 1,214 1,190 1,289 1,243 1,141 (8%) (6%) HRS Flat to Up 5% 1,022 1,018 1,078 999 1,023 2% 0% Total Revenue $6,763 $5,773 $5,877 $6,009 $6,115 2% (10%) Communications & Industrial & Emerging Enterprise Compute Industries Telecom, Networking, Server & Storage, Semiconductor & Capital Equipment, Office CEC CTG CEC CTG Solutions, Household Industrial & Lifestyle, Storage & Security Appliance, Converged 30% Infrastructure, Software Defined Product Industrial Automation & Kiosks, Energy & Dec 34% 37% 30% Dec Metering, Lighting. Solutions. 2015 2016 High Reliability Solutions Consumer Technologies HRS Medical: Consumer Health, Digital Health, Group HRS IEI IEI Disposables, Drug Delivery, Diagnostics, Life 15% Wearables, Fashion, Connected Living, 17% 19% Sciences & Imaging Equipment. 18% Gaming, Mobile, PCs/Printers. Automotive: Vehicle Electronics, Connectivity, Clean Technologies. 33% 36% 9