Sketch-to-Scale Solutions Investor Presentation February 2018 - - PowerPoint PPT Presentation

Sketch-to-Scale Solutions

™

Investor Presentation

February 2018

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. If this presentation references historical non-GAAP financial measures, these measures are located on the “Investor Relations” section 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 & Enterprise Compute

Cloud Data Center, Communications, Networking, Server & Storage.

Consumer Technologies Group

Connected Living, Wearables, Gaming, AR/VR, Mobile Devices, Footwear and Clothing, Supply Chain Solutions for PCs, Tablets, and Printers.

Industrial & Emerging Industries

Semiconductor & Capital Equipment, Office Solutions, Household Industrial & Lifestyle, Industrial Automation & Kiosks, Energy & Metering, Lighting.

High Reliability Solutions

Medical: Consumer Health, Digital Health, Disposables, Drug Delivery, Diagnostics, Life Sciences & Imaging Equipment. Automotive: Vehicle Electronics, Connectivity, Clean Technologies.

HRS IEI CEC CTG

1

Table of Contents

Richer Business Mix Sketch-to-ScaleTM Why Flex?

Flex is Ready / Strategically Positioned to Win

Financial Update

Why Invest in Flex? Strong Free Cash Flow Shareholder Return ROIC Portfolio Evolution Profit Growth & Earnings Power Earnings Leverage Targeted M&A Customer Diversification Balanced Capital Structure 3-4 5 6 7 8 9-10 11 12 13 14 The World Has Changed The Flex Advantage Flex Platform Megatrends Global Citizenship 12 Industries 100+ Locations Globally Innovation & Centers of Excellence Investing in Capabilities Elementum Flex Pulse 16 17 18 19 20-21 23-24 25 26-27 28 29 30 Innovation From Sketch-To- ScaleTM % of Sketch-To-ScaleTM Revenue Design-Enabled Manufacturing Growth Nike Partnership Reinventing Construction Platform is Uniquely Positioned 32-33 34 35 36 37 38 2020 Revenue & Profit Growth Consumer Technologies Group (CTG) High Reliability Solutions (HRS) Industrial & Emerging Industries (IEI) Communications & Enterprise Compute (CEC) 40-41 42-46 47-58 59-63 64-68 Latest Financial Update Appendices IR Contact Info 70-74 75-76 77

2

Why Invest in Flex?

Evolving our portfolio to provide more predictable earnings, higher margins and meaningful earnings power through structural mix change and increased Sketch-to-ScaleTM business Strong sustainable free cash flow Unwavering shareholder return commitment supported by significant buybacks over time

1 2 3

3

Financial Performance Underscores Successful Evolution

611 665 751 792 815

FY13 FY14 FY15 FY16 FY17

Sustainable

0.84 0.89 1.14 1.17

FY13 FY14 FY15 FY16 FY17

1.08

Profitable

Adjusted EPS

($)

Resilient

Free Cash Flow Generated

($M)

Consistent

Shares Repurchased

($M)

680 701 554 639 660

FY13 FY14 FY15 FY16 FY17

322 475 416 420 350

FY13 FY14 FY15 FY16 FY17

8% CAGR 9% CAGR $3.2B FCF generated

$2.0B repurchased

Adjusted Operating Profit

($M)

(FY13 – 17) (FY13 – 17) (FY13 – 17) (FY13 –17)

4

Strong Sustainable Free Cash Flow

680 701 554 639 660

FY13 FY14 FY15 FY16 FY17

Free Cash Flow

($M)

$3.2B

for FY13 to FY17

Key Cash Flow Drivers

»

Earnings expansion

»

Working capital sustained at 6-8% of sales

»

Disciplined capex investment modestly above depreciation levels

~90%

Free Cash Flow Conversion

$3.5B+

Operating Cash Flow

$2B+

Free Cash Flow

Cash Flow Generation Targets FY18–FY20

5

684 639 591 563 545 531

322 475 416 420 350

FY13 FY14 FY15 FY16 FY17

shares outstanding (millions)

Unwavering Shareholder Return Commitment

Share Repurchase

($M)

Committed to returning over 50% of annual free cash flow to shareholders

Since FY11, we have repurchased…

~35%

• f shares
• utstanding

~$3.0B

in stock

~364M

shares

Since FY13, we have returned... 62% of free cash flow to shareholders

6

Guided by our Return on Invested Capital

Return on Invested Capital1

(ROIC %)

» Improving earnings efficiency » Disciplined capital deployment » ROIC well above WACC

• 1. Return on Invested Capital (ROIC) is calculated by dividing the Company's last twelve months after-tax Non-GAAP operating income by the net invested capital asset base as of each date. After-tax non-GAAP operating income excludes charges for stock-based

compensation expense and restructuring charges. The net invested capital asset base is defined as the sum of shareholders' equity and net debt averaged over the last five quarters.

19 22 24 22 20

FY13 FY14 FY15 FY16 FY17

22% Avg.

7

Portfolio Evolution to Higher Margin Business

$4.5B

HRS + IEI revenue

$9.1B

HRS + IEI

revenue

Driving predicable earnings and margin expansion FY10

HRS 6% IEI 13% CTG 42% CEC 39%

19%

FY17

HRS 17% IEI 21% CTG 27% CEC 35%

38%

FY20E

HRS ~22% IEI ~23% CTG ~28% CEC ~27%

~45%

~$13.0B

HRS + IEI

revenue

~2

years

~4

years

~6

years

Est Avg Product Life Cycle

8

FY17 Adjusted Operating Target Adjusted Operating Margin

Profit

($M)

Margin Range

$334 8.1% 6–9% $180 3.6% 4–6% $180 2.8% 2–4% $229 2.7% 2.5–3.5%

Corporate services and other2

($108)

$815 3.4%

Positioned for Operating Profit and Margin Expansion

HRS IEI CTG CEC

Targeted Adjusted Operating Profit Mix

Targeted 2020 delivers profit growth FY20E

HRS IEI CTG CEC

~60%

9

Positioned to Deliver Meaningful Earnings Power

% Sketch-to-Scale FY20E

Portfolio Evolution Sketch-to-Scale ~3% 10%+ 12%+

Revenue Adj. Operating Profit

• Adj. EPS

2016–2020 CAGR

Substantial Earnings Leverage

3x

4x

Revenue mix

CEC HRS IEI CTG

FY20E

~45%

CEC CTG IEI HRS

~40%

Total Flex

10

$1.17

~$0.26 ~$0.22 ~$0.19 ~$0.02 ~$0.02 ~$0.12 ~$0.20

$1.80

FY16 FY17 HRS CTG IEI CEC Corporate Investments Share Repurchase Interest and Taxes FY20E

$1.14

The Path to Delivering Substantial Earnings Leverage

» Sketch-to-Scale penetration » Leveraging investments » Operational execution

12%

CAGR

$2.15+ Record

EPS

11

1 Reflects M&A transactions completed from FY13 to FY17 (excludes certain OEM asset acquisitions)

Targeted M&A Accelerates Our Portfolio Evolution

11

<$25M Target capabilities Strategic customers Longer product lifecycles EPS accretive Barriers to entry Higher margins

Key Selection Criteria # of Acquisitions

(FY13–FY17) Based on purchase price*

4

>$100M

% of M&A Spend By Business Group*

61%

HRS

24%

IEI

15%

CTG

~$1.5B

M&A

Expanding longer product lifecycle businesses and Sketch-to-ScaleTM capabilities

2

$25-$100M

*Reflects M&A transactions completed from FY13 to FY17 (excludes certain OEM asset acquisitions).

12

Improving Customer Diversification

10%+ Customers

FY07 FY12 FY17

Top 10 Customers as % of Total Revenue

64% 55% 43%

No 10%+ customer

Q2 FY18 was 7th straight quarter with no 10%+ customer

13

500 692 500 600

CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 CY26

58 119 490 119

Balanced Capital Structure

Investment Grade Rated

Moody’s | S&P | Fitch

Debt Maturities

($M) Balances as of December 31, 2017

Term Loan Notes

» No near-term maturities » Low average cost of debt: ~3.7% » Ample liquidity of $3.0B

» $1.75B revolver + $1.3B cash

14

The World Has Changed… Flex is Ready

Electronic Manufacturing Services

Worldwide Scale and Labor Arbitrage

Time

Contract Manufacturing

Asset Light and Lower Cost

Our Industry Has Changed -- We Have Evolved Our Model

Cost Based Discussion

Director of Procurement 3-6 months lead-time

»

Sketch-to-Scale

TM

Solutions and co- innovation

Revenue/Strategy Discussion

C-level Executive 18-24 months lead-time

16

Flex is Ready… The Flex Advantage

$24B

revenue

50M

• sq. ft. of

manufacturing & services space

200,000

employees

100

sites in over 30 countries

3,000

design engineers

17

Capabilities Built for the Future The Flex Platform

Our company innovates across three dimensions

18

Yielding a Massive Expansion of TAM

Artificial Intelligence (AI) ** Digital Health Smart Cities * Autonomous/ Connected Cars Cloud Data Center Augmented Reality/ Virtual Reality (AR/VR) ** 5G/Telco Cloud Intelligent Asset Tracking Industrial Automation Connected Living

2015-2020 data points ($B), CAGR

Source: Gartner, IDC,IFR, Markets & Markets, GMI Insights, Goldman Sachs, Autodesk, Flex Internal Estimates (1) Represents 2016 estimated figured (2) Overlaps with other categories including connected living an autonomous vehicles

246 392

10%

4 35

54%

8 47

56%

32 61

14%

10 25

20%

65 176

22%

50 119

19%

3 38

84%

1 12

82%

36 76

16%

Source: Gartner, IDC,IFR, Markets & Markets, GMI Insights, Goldman Sachs, Autodesk, Flex Internal Estimates *Overlaps with other categories including connected living an autonomous vehicles. **Represents 2016 estimated figure.

19

Flex Global Citizenship

Aligned to UN 2030

Our values, our commitments and our aspirations to contribute to the greater world around us

COMMUNITY PEOPLE INNOVATION INTEGRITY ENVIRONMENT

Member of environmental and social responsibility

• rganizations

48,429

Employee volunteer hours World’s Most Admired Companies by FORTUNE

61,000

MWh/year LED light

To learn more, please visit: flex.com\sustainability

20

Flex 20 by 2020

For more information review our Biannual Progress Report (as of Dec, 2016): https://www.flex.com/about/commitment/global-citizenship/flex-20-by-2020-progress-report

Volunteer Hours CSER Supplier Training Supplier Screening on Social and

• Environ. Criteria

Worker Empowerment Training Program Flex Foundation – Community Grants CoBCETraining Completion In-person CoBCETraining Incident Rate Employee Development Flex Pledge Audits Human Rights Policy Training Completion EICC Compliance on Rest Day Requirements Use of Renewable Energy Water Recycling CO2Emissions Cost of Electricity to the Grid vs Fossil Fuels Number of Powered Homes Equivalent Waste Diversion Rate Water Consumption Percent of Sites with Community Activities

Flex has established 20 goals targeted for 2020 that align with the U.N. Sustainable Development Goals

CoBCE: Code of Business Conduct and Ethics

21

Strategically Positioned to Win

Operating at Scale Across 12 Industries

Medical

$2B

Automotive

$3B

Industrial

$1B

Home Appliances

$1B

Capital Equipment

$1B

Energy

$2B

Telecom

$3B

Enterprise Compute

$2B

Wearables

$1B

Connected Living

$1B

Mobile

$2B

Networking

$3B

Revenue

23

Giving Us Unparalleled Insight

Medical

$2

Billion

Automotive

$2

Billion

Industrial

$1

Billion

Home Appliances

$1

Billion

Capital Equipment

$1

Billion

Energy

$2

Billion

Telecom

$3

Billion

Enterprise Compute

$2

Billion

Wearables

$1

Billion

Connected Living

$1

Billion

Mobile

$2

Billion

Networking

$3

Billion

144 130 51 52 101 76 30 27 21 62 9 34

# of customers*

*Current as of May 2017 Investor & Analyst Day

24

Purposefully Positioned in 100+ Sites and 30 Countries

Jaguariuna, Brazil ● Sorocaba, Brazil ●● Manaus, Brazil ●● Milpitas, CA ●●●● San Jose, CA San Francisco, CA ● Austin, TX ●●●● Plano, TX ● Irving, TX ● Tempe, AZ ● Tijuana, MX ●● Juarez, MX ●●● Reynosa, MX ● San Luis, MX ● Overland Park, KS ● Coopersville, MI ●● Farmington Hills, MI ● Buffalo Grove, IL ● Northfield, MN ● Morrisville, NC ●● Columbia, SC ● Atlanta, GA ● Memphis, TN ● Louisville, KY ● Boston, MA ● Manchester, CT ● Cork, Ireland ● Limerick, Ireland ●● Manorhamilton, Ireland ● Venray, Netherlands ● Woerden, Netherlands ● Hoogeveen, Netherlands ● Budapest, Hungary ● Sarvar, Hungary ●● Tab, Hungary ● Zalaegerszeg, Hungary ● Lodz, Poland ● Tczew, Poland ●● Migdal Ha-Emek, Israel ●● Ofakim, Israel ● Yavne, Israel ● Haifa, Israel ● Chengdu, China ●● Gurgaon, India ● Mumbai, India ● Pune, India ● Bangalore, India ● Chennai, India ●● Penang, Malaysia ●● Port of Tanjong Pelepas, Johor , Malaysia ●● Senai, Johor, Malaysia ●● Skudai, Johor, Malaysia ●● Ibaraki, Japan ●● Nanjing, China ● Shanghai, China ●● Suzhou, China ● Wuzhong, China ●● Shenzhen, China ●●● Huangtian, China ● Shiyan, China ● Gushu, China ●● Fuyong, China ● Hong Kong, China ● Dongguan, China ● Zhuhai, China ●● Singapore ●●● Batam, Indonesia ● Tianjin, China ● Pamplona, Spain ● Milan, Italy ●● Treviso, Italy ● Trieste, Italy ● Mukachevo, Ukraine ● Timisoara, Romania ●● Aguascalientes, MX ●● Guadalajara, MX ●●● Global Services Design Manufacturing Mechanicals

Burlington, Canada ● Toronto, Canada ● Ottawa, Canada ●

New York Innovation Center Ronneby, Sweden ● Linkoping, Sweden ● Corlu, Turkey ● Gebze, Turkey ● Warrington, UK ● Sonderborg, Denmark ● Stuttgart, Germany ● Hägglingen, Switzerland ● Pardubice, Czech Republic ● Brno, Czech Republic ● Althofen, Austria ●● Vienna, Austria Anyang, South Korea ●

25

Innovation at Flex

To innovate is to do something that has never been done before

Automotive Healthcare Industrial Connected Living Consumer Electronics Energy Fitness/Wellness Communications Aerospace & Defense Consortia Investments Suppliers OEMs Employees Centers of Excellence Startups Research Institutions Universities LabIX Sensor Actuators Human Machine Interface Connectivity Smart Software Battery & Power Flexible Technologies & Miniaturization Security & Computing Design Prototyping New Product Introduction Certification Manufacturing Distribution Reverse Logistics Tax & Trade

Cultivate

and accelerate collective innovation

Develop

the smart components that enable intelligence

Identify

and leverage technology across industries

Commercialize

relevant product solutions

26

Developing Solutions to Accelerate Innovation

Components and platform solutions with differentiated performance

Sewing & Textile Automation & Robotics

Centers of Competence

Roll to Roll Micro- electronics

= +

Centers of Excellence

Connectivity Flexible Technology & Miniaturization Smart software Sensors & Actuators Security & Computing Human Machine Interface Battery & Power Wearable sensor patch Notification module

Component Solutions

27

Innovation and R&D Investments

($M)

121 93 49 39 39

FY17 FY16 FY15 FY14 FY13

2014 Elementum Silicon Valley Innovation Center Centers of Excellence Innovation Centers Expansion Digital Health 2017

• Sketch-to-Scale
• Innovation labs
• Investing in Capabilities Built for the Future

28

Real-time Solutions to Improve Decision Making

» Incubated in 2012 by Flex » Strategic engagement partner for Flex

Powered by Elementum: mobile software for end-to-end supply chain management

29

Digital Visibility Through Flex Pulse

50+

Elementum and enterprise-wide applications

8

worldwide Pulse Centers

500+

customer campus visits

5,000+

Flex business users

30

Sketch-to-ScaleTM

Sketch-to-ScaleTM Solutions Bring Your Product to Life

Intellectual Property Protection

Safeguard your developments with the highest levels of security to ensure that your project remains confidential and is protected at every stage.

Concept Design

Conceptualize, design, and test ideas through co-innovation.

Additive Manufacturing

Six Sigma operations in 100+ cutting-edge facilities utilizing state-of-the-art automation, advanced robotics, virtual and augmented reality and software controls.

Advanced Engineering

Access core technologies and product / system design

• engineers. Utilize testing

services and accredited labs for ISO compliance.

Global Expansion

Global presence and regional trade regulations, taxes and duties expertise to help efficiently expand and compete.

Active Supply Chain, Distribution & Logistics

A global supply chain demands real-time information about development, fulfillment and forward and reverse logistics.

New Product Introduction

Manufacturing, supply chain and technology expertise and visibility to help identify opportunities and foresee challenges.

Prototype Creation

Rapidly prototype to shorten the distance to a viable, quality product.

32

Expanding Our Co-Innovation Capabilities

We are growing our product development scope and depth Design services Joint development Co-innovation and product development

Pre-2015 2016 2017 Connected Living AR/VR Solutions Digital Health Cloud/Mobile Infrastructure Connected Cars Energy Solutions

Customer Value Product Depth

Co-innovation and product development

33

3% 9% 5% 18% CEC CTG IEI HRS

7%

12% 27% 26% 33% CEC CTG IEI HRS

Sketch-to-ScaleTM Revenue is Rapidly Accelerating

FY 2013

CEC CTG IEI HRS

FY 2020E

40%

FY 2017

23%

25–35% 35–45%

34

Design-Enabled Business Impact

Sketch-to-ScaleTM Manufacturing Revenue

>75%

Design Center projects are Sketch-to-Scale

Design Win Growth

>230

patents issued in CY 2017 450+ 400+ 330+

FY17 FY16 FY15

7% 23% 40%

FY13 FY17 FY20E

Sketch-to-ScaleTM solutions deliver greater value

35

Transformational Nike Partnership

Meaningful Revenue

Investment losses

Top 10 Customer

CTG + margins

$2 Billion+

HRS+ margins Massive TAM expansion | Decade-long partnership | Modernizing the footwear industry Invest and Create Rapid Ramp Industry Expansion

FY18 2019 2020 and Beyond

Scaling Solutions

$1 Billion+

HRS-like margins

36

Reinventing the Construction Industry

(McKinsey, 2016) Real gross value added per hour worked by persons engaged, Indexed 1995 = 100

Global productivity growth

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Construction

Total economy Manufacturing

200 190 180 170 160 150 140 130 120 110 100

We will also modernize the supply chain for the Construction Industry 13% of the world’s GDP

Cloud-based 5D Enterprise Platform

37

Flex Platform is Uniquely Positioned

+

New Industries Portfolio Evolution Sketch-to- Scale

TM

38

Richer Business Mix

Structured to Deliver Profitable Growth

Annual Revenue Growth Target Comments 10%+

» Technical offering and leadership expertise enables growth » Leveraging innovation and sketch-to-scale capabilities

10%+

» Momentum from record bookings across its broad portfolio » Positioned to penetrate massive TAM

3% to 5%

» Structurally enhancing margin and earnings growth » Transformational new partnerships and new markets

• 5% to 0%

» Well positioned for next generation technologies » Disciplined management of legacy business

HRS IEI CTG CEC

Targeted 2020 revenue growth model

40

FY17 Adjusted Operating Target Adjusted Operating Margin

Profit

($M)

Margin Range

$334 8.1% 6–9% $180 3.6% 4–6% $180 2.8% 2–4% $229 2.7% 2.5–3.5%

Corporate services and other2

($108)

$815 3.4%

Positioned for Operating Profit and Margin Expansion

HRS IEI CTG CEC

Targeted Adjusted Operating Profit Mix

Targeted 2020 delivers profit growth FY20E

HRS IEI CTG CEC

~60%

41

Consumer Technologies Group (CTG)

Revenue

($M)

1,314 1,665 1,849 1,535 1,512 1,755 2,057

Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

FY17 Updates

» $1B in new bookings » 50 new accounts » 195 new programs awarded » $1.4B increase YoY revenue for Connected

Home and Audio

» 27% of revenue is Sketch-to-Scale

TM

» BOSE partnership announced » 2 new Audio factories

42

Continuing to Invest in Growing Markets

60% 17% 22% 0%

Traditional Connected Home Wearables AR/ VR

2017 2020

35–40% 15–20% 30-35% 15–20%

Traditional Connected Home Wearables AR/VR

% of total CTG business

43

Increasing Development of Growth Vectors

AR/VR

» Gaming » Entertainment » Education » Customer Service

Fashion

» Footwear » Connected Jewelry » Smart Apparel » Smart Accessories

Connected Home

» Voice-Controlled Assistants » Home Gateways » Media Devices » Connected Audio

Wearables

» Headsets and Headphones » Smart Watches » Hearables » Bio-authentication

Consumer Health

» Biometric Monitors » Telehealth » Home Health Monitoring

Consumer AI

» Smart Robots » Smart Toys » Automotive After-Market » Drones

44

Higher Margins and Operating Profit

Operating Profit Customers Added Revenue Growth

6%+ 40 4% <3% 4

• 14%

4%* 6 9%

STRATEGIC CORE ICE

FY17 Achieved

*Not including Nike investment

45

Driving Step Function Change

CTG OP

(%)

Investment Year

1.3% 2.4% 2.3% 2.8% 3.5–5% 2–4%

% Actuals % OP Range

2%+ 2–3% 2–3% 2–4%

FY14 FY15 FY16 FY17 FY18E FY19E FY20E

46

High Reliability Solutions (HRS)

FY17 Updates

» Thoughtfully positioned

across the important megatrends

» Powered by deep industry

expertise

» Unique competitive position

created

» Long term structural growth is

intact

3,557 3,899 4,149 3,517

FY15 FY16 FY17 FY18*

228 295 334 284

FY15 FY16 FY17 FY18*

6.4 7.6 8.1 8.1

FY15 FY16 FY17 FY18*

Revenue

($M)

OP

($M)

OP

(%)

*FY18 YTD figures

47

Auto Megatrends Are Driving Major Changes

Safety and security Infotainment embedded and smartphone integration Software and data management SAE level 5 Fully Autonomous Context intelligent services conditional automation, 5G

2010 2015 2020 2025

48

Increasing The Auto Sketch-to-Scale Portfolio

Autonomous Connectivity Clean Tech Vehicle Electrification

Wing cameras Server compute pods Innovative HMI Wearables Smart sensors AGS actuators Battery cables Wireless charging Ambient lighting Smart textiles / Floor mats ADAS modules Video radar decision units Cloud services V2X modules Active surfaces DC-DC converters Energy recuperation Mirror actuators Lift gates Projection lighting Sensor fusion boxes Smart gateway modules Infotainment and displays Interior cameras Solenoids Wire harnesses Overhead consoles Dome lights

49

Levers of Automotive Growth

98 180 450 500

FY11 FY14 FY17 FY18E

# of vehicle models $ content per vehicle 43 88 118 134 148 185

FY11 FY14 FY17 FY18E FY19E FY20E

50

Continuously Driving Content in Vehicles

Rear Compartment

Rear Tail Lamp PCBAs LED Tail Lamp Controllers

Doors

Motion Control Modules

Seats

Power Seat Modules

Engine & Powertrain

Recuperation Modules DC/DC Converters High Precision Solenoids (Engine & Transmission) Wiring Harnesses (Al & Cu) Battery Cables Specialized Harnesses (incl. FPC & AL)

Front End

Front Lamp PCBAs Light Control Modules Active Grill Shutter Actuators

Instrument Panel

Digital LCD Gauges LED/RGB Ambient Lighting

Overhead Systems

Overhead Consoles Dome Lamps Sunroof Controllers

Connectivity/Infotainment

Connectivity & Media Modules Media Device Interface Modules Rear Seat Entertainment Modules Vehicle System Interface Modules Head Units

Mirror Actuators

Glass Power-folding

51

$83M $1.0B

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

Sustaining Double Digit Automotive Growth

+35%

11 year CAGR

>10%

3-year CAGR

$2.3B

Revenue

52

Medical Megatrends Are Driving Major Changes

Traditional hospital setting dominates delivery of care Doctor-centric provision

• f care, regardless of point of

care Proliferation of retail clinic points of care; leverage basic EMR systems Care providers leverage advanced algorithms in clinical decision making Healthcare delivered in a home setting

2010 2015 2020 2025

53

Medical Solutions and Technology Portfolio

2011

Blood Glucose Meter Disposables Diagnostics

2013

Drug Delivery devices Implantables Patient mobility Infusion sets Surgical Instruments

2016

Software solutions CGM Ophthalmology Imaging Orthopedics Digital health Combination drug delivery

2017

54

Expanding Medical Offerings

Neuro-stimulation

Tumor Treating Fields Pain Management

Orthopedics

Aircasts Prosthetics Joint Replacement Surgical Implants

Laboratory Diagnostics

Point of Care Immunoassay Machines

Mobility

Hospital Beds Mobility Systems

Optical

Dry Eye Treatment

Surgical Tools

Powered instruments Surgical Stapling & Cutting Tools Endoscopic Equipment Catheters

Wound Healing

Negative Pressure Wound Healing Systems

Imaging

CT Ultrasound Radiography

Monitoring

Home Monitoring Vital Sign Monitoring

Diabetes Care

Blood Glucose Monitors Insulin Delivery Devices

Digital Health

Connected Medical Grade Platform Dosage Compliance

Drug Delivery

Wearable Patches & Pumps Drug Infusion Systems Smart Auto Injectors & Injection Pens

55

Medical Innovations in the Connected World

Health Monitoring Drug Delivery Health Treatment »

DIVG delivery patches

»

Insulin pump patches

»

Electromechanical drug delivery systems

»

Smart patches

»

3D motion sensors

»

Hearing aids

»

EEG/EMG devices

»

Electronic glasses

»

Wearable sensor patches

»

Electronic tattoos

»

Artificial limbs

»

Smart pills

»

Bionic eye

»

Dental hearing systems

»

Smart implants

56

Connectivity is the Bridge to Digital Health

Phase III: Insight Generation

Medical grade connectivity platform converts raw data into actionable insight

Phase II: Integration and Scaling

Scalable platform broadly supports digital health solutions, with clinical workflow and impacts patient management

Phase I: Data Generation

Smart devices enable data collection

Hospital Based

Acute and critical care

New therapies for patients

To Home Based

Mobile disease management and monitoring

Pharma companies need home based technologies to deliver drugs

Added Connectivity

Home based connectivity

Increases safety and compliance in homes based therapy

57

Medical Back on Double Digit Trajectory

$242M $1.0B

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

Revenue +20%

11 year CAGR

10%

3-year CAGR

$1.8B

58

Industrial and Emerging Industries (IEI)

FY17 Updates

» $2B+ record bookings » 26% Sketch-to-ScaleTM

revenue

» 6.1% OP growth from FY14

to FY17

» 72+ new logos

3.8 4.5 4.7 5.0 4.3

FY14 FY15 FY16 FY17 FY18*

Revenue

($B)

9.5%

CAGR

6.1%

Growth

127 132 158 180 168

FY14 FY15 FY16 FY17 FY18*

OP

($M)

12.3%

CAGR

3.6%

OP%

*FY18 YTD figures

59

Transitioning Into The Age of Intelligence

Cloud Connectivity

Smart Cities Digital Energy Connected Cars Industrial Automation Industry 4.0 Digital Health Smart Appliances Wearables Home Automation Home Monitoring Smart TVs Smart Clothing

60

IEI Key Markets

Lighting Solutions Energy Solutions Lifestyle and Appliances Capital Equipment

$540B

TAM

$55B

TAM

$500B

TAM

$505B

TAM

Source: TAM market size for 2020 based on internal research

25+

active accounts

$150M

bookings

20+

new logos

85

active accounts

$250M

bookings

12

new logos

62

active accounts

~$750M

bookings

30

new logos

46

active accounts

~$1.1B

bookings

21

new logos

61

There is Significant Opportunity in Solar and Storage

1 4.4 4.7 10.6 16.3 21.7 41.3

Solar Oil Other Nuclear Hydroelectric Natural Gas Coal

Global Electricity Production in 2015

10 2 4 6 8 10 12 14

CO2 Emissions in 2015 from Electricity and Heat Generation

Billion tonnes CO2

Source: International Energy Agency (IEA), SolarPower Europe, GreenTech Media (GTM), Flex Estimates

Global market size in $B, CAGR in %

Solar & Storage Growth

93 5 9 130 195 35 Storage Solar 98 139 230

2015 2020 2026

+8%

Energy source as a % Oil Natural Gas Coal

62

Residential

PowerPlay Solar Panel Water Meter Powerplay Home Automation Hub PowerPlay Inverter PowerPlay Home Energy Storage Electric Vehicle Charging Station NX Fusion Plus™ Solar + Energy Storage NX Horizon™ Solar Tracker Solar Panel Load Control Switches Switching Gear Volt – VAR Control Energy Storage Platform

Utility & Distributed Generation Smart Grid Commercial & Industrial

Electric Meter

• TrueCapture™

Power Plant Optimization

• Digital O&M™
• Global Asset

Monitoring PowerPlay Energy Management Hub

Flex Energy Solutions

63

Communications and Enterprise Compute (CEC)

FY17 Updates

» Revenue $8.4B

− Cloud Data Center: Up 14% YoY − Communications: Up 1% YoY via Optical − Networking: Down -2% − Traditional Server, Storage: Down -35%

» Strong capital efficiency » Sketch-to-Scale

TM growth 21% YoY > $1B

» $2B in bookings and 18 new customers

9,191 8,842 8,383 5,853

FY15 FY16 FY17 FY18*

Revenue

($M)

*FY18 YTD figures

64

Connected Things / Connected Intelligence

Smart Cities M2M and Robotics

IEI

Digital Health Autonomous Driving

HRS

Born in the Cloud Providers Telco Cloud Transformation Enterprise Hybrid Cloud Mobile Device Connected Living Augmented Reality

CTG

Cloud and Edge Computing

5G CEC

65

Creating a Smart and Connected World

Cellular Microwave & RF

3G/4G Radio Modules PTP Backhaul Units

IoT and Edge Computing

IoT Edge Computing Platforms Automotive Network Switch Modules

Edge Data Center & Central Office

CRAN Optical Systems Edge Router Modules Open Standard Mechanical Racks Open19 Compute & Networking Modules ToR Switch Units

Cloud Data Center

Custom Compute Motherboards Open Standard Mechanical Racks OCP Storage Systems Storage Appliances

Enterprise Data Center

2U JBOD Storage Systems All Flash Array NVMe Storage Systems 2U & 4U Converged Appliances Host Bus Adapters & RAID Controllers Custom Switch Blades

SOHO

66

Sketch-to-ScaleTM Accelerates

Sketch-to-ScaleTM 12% of Revenue FY17 to ~30% FY20

FY15 FY17 FY20 Product Platforms Core R&D Engineers Software Engineers 12

27

60

293

458

800

60

98

200

67

12% 88%

FY17

~30% ~70%

FY20E

Flex Portfolio Evolution via Sketch-to-ScaleTM

Portfolio Evolution Operating Profit Range Revenue Projections

Sketch-to-ScaleTM: Communications, Converged Enterprise and Cloud Traditional OEM

FY17 FY18E FY19E FY20E

Growth Inflection Point

$8.4B

3.5% 2.5%

68

Latest Financial Update

223 205 178 188 220 3.6% 3.5% 3.0% 3.0% 3.3%

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

• Adj. Operating Margin

Revenue & Adjusted Gross Margin

($M)

Adjusted Operating Income

($M)

6,115 5,863 6,008 6,270 6,752 7.1% 7.1% 6.8% 6.7% 6.7%

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

• Adj. Gross Margin

Quarterly Financial Highlights

20% 20% 19% 18% 17%

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

Return on Invested Capital

1

(ROIC %)

$0.34 $0.29 $0.24 $0.27 $0.31

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

Adjusted Earnings Per Share

(EPS)

70

Q3 FY18 Target Adjusted Operating Margin Range

($M)

Rev$ OP$

(adj.)

OP%

(adj.)

$1,979 $50 2.5%

Disciplined investments to expand and reinforce our cloud data center progress while managing legacy businesses

$2,057 $39 1.9%

Improving financial performance with Nike and continuing portfolio evolution

$1,491 $61 4.1%

Record quarterly revenue and profits reflecting continued strong demand across diversified markets and successful new large program ramps

$1,225 $101 8.2%

Record quarterly revenue and profits from strong growth and consistent operational execution

Corporate Services & Other2

• ($31)
• Total

$6,752 $220 3.3%

6 4 2 2.5 9 6 4 3.5

Operating Performance by Business Group

1.9% 2.5% 4.1% CEC CTG IEI HRS 8.2%

71

29% 22% 18% 31%

Q3 FY18 Revenue

40%

CTG CEC IEI HRS

Q3 FY2018 Business Highlights

Continued Structural Portfolio Evolution

» HRS and IEI growth accelerating as anticipated » Successfully booking new customers and

expanding Sketch-to-ScaleTM relationships

Accelerating Revenue Growth

» 4th straight quarter of Y/Y revenue growth » HRS and IEI growing 20% and 31% Y/Y respectively,

both achieving record quarterly revenue and profit

» Fiscal 2018 revenue growth on track

5,773 5,877 6,009 6,115 5,863 6,008 6,270 6,752

Q1 Q2 Q3 Q4

Quarterly Revenue Year- Over-Year

($M)

Dec-16 Dec-17 Sep-16 Sep-17 Jun-16 Jun-17 Mar-16 Mar-17

20% 25% 40% 15%

Q3 FY18

• Adj. OP$

65%

CTG CEC IEI HRS

72

Revenue by Business Group

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18E

($M)

$ $ $ $ $ Q/Q % Y/Y % Outlook Y/Y % 2,102 1,983 1,973 1,901 1,979 4% (6%)

Down 5% to 10%

1,849 1,535 1,512 1,755 2,057 17% 11%

Up 5% to 10%

1,141 1,296 1,391 1,454 1,491 3% 31%

Up 15% to 25%

1,023 1,049 1,132 1,160 1,225 6% 20%

Up 10% to 20%

Total

$6,115 $5,863 $6,008 $6,270 $6,752 8% 10%

CEC CTG IEI HRS

*Reflects mid-point of Mar-18E guidance

29% 25% 19% 27%

Mar-18E* 44%

CTG CEC IEI HRS

Quarterly Revenue Mix

(Y/Y)

34% 22% 18% 26%

Mar-17 40%

CTG CEC IEI HRS

73

Fourth Quarter Guidance – March 2018

GAAP Income Before Income Taxes $70 - $100 million GAAP Earnings Per Share $0.10 - $0.15

Other Information:

Interest & Other Expense $35 - $40 million Adjusted Income Tax Rate Mid-range of 10% to 15% WASO ~534 million shares

($M, except per share amounts)

$6,100 - $6,500

Revenue

$200 - $230 Adjusted

Operating Income

$0.28 - $0.32 Adjusted

Earnings Per Share

74

Quarter-ended

December 31, 2017

ROIC %1 GAAP 13.4%

Non-GAAP Adjustments 3.7%

Non-GAAP 17.1%

Quarter-ended

December 31, 2017

($Thousands, except per share amounts)

GAAP gross profit $446,328 Stock-based compensation expense 5,358 Non-GAAP gross profit $451,686 GAAP income before income taxes $141,160 Intangible amortization 19,588 Stock-based compensation expense 20,758 Other charges, interest and other, net 38,215 Non-GAAP operating income $219,721 GAAP provision for income taxes $22,827 Intangible amortization benefit 2,185 Non-GAAP provision for income taxes $25,012 GAAP net income $118,333 Intangible amortization 19,588 Stock-based compensation expense 20,758 Other charges, interest and other, net 7,892 Adjustments for taxes (2,185) Non-GAAP net income $164,386 Diluted EPS GAAP EPS $0.22 Non-GAAP EPS $0.31

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.

Appendix: Reconciliation of GAAP to Non-GAAP Measures

75

Appendix: Definitions

• 1. Return on Invested Capital (ROIC) is calculated by dividing the Company's last twelve months after-tax Non-GAAP operating income by the net invested capital asset base as of each
• date. After-tax non-GAAP operating income excludes charges for stock-based compensation expense, contingencies, distressed customer asset impairment, and certain other charges
• r income. The net invested capital asset base is defined as the sum of shareholders' equity plus total debt less cash and cash equivalents averaged over the last five quarters. We

believe ROIC is a useful measure in providing investors with information regarding our performance. ROIC is a widely accepted measure of earnings efficiency in relation to total capital

• employed. We believe that increasing the return on total capital employed, as measured by ROIC, is an effective method to sustain and increase shareholder value. ROIC is not a

measure of financial performance under generally accepted accounting principles in the U.S., and may not be defined and calculated by other companies in the same manner. ROIC should not be considered in isolation or as an alternative to net income or loss as an indicator of performance.

• 2. Corporate services and other: corporate service costs that are not included in the assessment of the performance of each of the identified business groups.
• 3. Net Working Capital is calculated as accounts receivable (AR), net adding back the reduction in AR resulting from the non-cash AR sales plus inventories less accounts payable.

76

Creating a smarter, more connected world

For more information contact:

Kevin Kessel

VP, Investor Relations & Corporate Communications kevin.kessel@flex.com (408) 576 - 7985 Or visit us at investors.flex.com

Mary Lee

Director, Investor Relations mary.lee@flex.com (408) 576 - 5167

Katherine Chen

Analyst, Investor Relations katherine.chen@flex.com (408) 577 - 4037