Sketch-to-Scale Solutions Investor Presentation June 2017 Risks - - PowerPoint PPT Presentation

Sketch-to-Scale Solutions

™

Investor Presentation

June 2017

1

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

Telecom, Networking, Server & Storage, Storage & Security Appliance, Converged Infrastructure, Software Defined Product Solutions.

Consumer Technologies Group

Wearables, Fashion, Connected Living, Gaming, Mobile, PCs/Printers.

Industrial & Emerging Industries

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

HRS High Reliability Solutions

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

IEI CEC CTG

2

Table of Contents

Richer Business Mix Sketch-to-scale 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 Industry Has Changed The Flex Advantage Flex Platform Megatrends 12 Industries 100+ Locations Globally Innovation & Centers of Excellence Investing in Capabilities Elementum Flex Pulse 16 17 18 19 21-22 23 24-25 26 27 28 Innovation From Sketch-To- Scale % of Sketch-To-Scale Revenue Design-Enabled Manufacturing Growth Nike Partnership Reinventing Construction Platform is Uniquely Positioned 30-31 32 33 34 35 36 2020 Revenue & Profit Growth Consumer Technologies Group (CTG) High Reliability Solutions (HRS) Industrial & Emerging Industries (IEI) Communications & Enterprise Compute (CEC) 38-39 40-44 45-55 56-60 61-65 Latest Financial Update Appendices IR Contact Info 66-71 72-73 74

3

Why Invest in Flex?

Evolving our portfolio to provide more predictable earnings, higher margins and meaningful earnings power Strong sustainable free cash flow Unwavering shareholder return commitment

1 2 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

Unwavering Shareholder Return Commitment

% of Free Cash Flow Returned to Shareholders

70% 64% 53% 1–yr 3–yr 7–yr

813 757 684 639 591 563 545 531

400 510 322 475 416 420 350

FY11 FY12 FY13 FY14 FY15 FY16 FY17

shares outstanding (millions)

Share Repurchase

($M)

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

Since FY11, we have repurchased…

~35%

• f shares
• utstanding

~$2.9B

in stock

~360M

shares

6

19 22 24 22 20

FY13 FY14 FY15 FY16 FY17

Guided by our Return on Invested Capital

Return on Invested Capital1

(ROIC %)

Annual Quarterly

»

Improving earnings efficiency

»

Disciplined capital deployment

»

Internal target threshold stands at 20%

»

ROIC well above WACC 22% Avg.

22 22 20 20 20

Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17

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

$1.55

*

Consensus

11

*Reflects consensus as of May 10, 2017. FY20E EPS consensus for FLEX is $1.64 as of June 2, 2017.

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

12

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

Strong Customer Diversification Continues

10%+ Customers

FY07 FY12 FY17

Top 10 Customer Revenue

(As % of total revenue)

64% 55% 43%

No 10% customer

Q4 FY17 was 5th straight quarter with no 10% customer

13

503 500 700 107 500 600

CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25

53

Balanced Capital Structure

Investment Grade Rated

Moody’s | S&P | Fitch

Term Loans

• LIBOR +

137.5 bps EURIBOR +100 bps LIBOR + 137.5 bps EURIBOR +69 bps

• Notes
• 4.625%
• 5%
• 4.75%

Significant Debt Maturities

($M) (Calendar Year)

~3.5%

Low Avg. Cost

• f Debt

$3.3B

Solid Liquidity ($1.5B revolver + $1.8B cash)

2.4x

Strong Debt/

• Adj. EBITDA

(LTM)

14

The World Has Changed… Flex is Ready

15

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 Operations 3–6 months lead-time

»

Sketch-to-Scale

TM

Solutions and co- innovation

Revenue/Strategy Discussion

CEO/CTO/COO Product 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%

19

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.

Strategically Positioned to Win

Operating at Scale Across 12 Industries

Medical

$2B

Automotive

$2B

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

21

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

22

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 ●

23

24

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

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

25

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

26

Real-time Solutions to Improve Decision Making

» Incubated in 2012 by Flex » Majority-owned subsidiary of Flex » Consolidated financials with Flex

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

27

Digital Visibility Through Flex Pulse

50+

Elementum and enterprise-wide applications

8

worldwide Pulse Centers

500+

customer campus visits

5,000+

Flex business users

28

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.

30

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

31

Co-innovation and product development

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%

32

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

33

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 FY19 FY20 and Beyond

Scaling Solutions

$1 Billion+

HRS-like margins

34

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

35

Cloud-based 5D Enterprise Platform

Flex Platform is Uniquely Positioned

+

New Industries Portfolio Evolution Sketch-to- Scale

TM

36

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

38

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%

39

Consumer Technologies Group (CTG)

Revenue

($M)

1,314 1,665 1,849 1,535

Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17

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 » Nike Q4FY17 mass production

40

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

41

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

42

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

43

Driving Step Function Change

CTG OP

(%)

Investment Year

1.3% 2.4% 2.3% 2.8% 3.5–5% 2–4%

% Actuals % OP Range

44

2%+ 2–3% 2–3% 2–4%

FY14 FY15 FY16 FY17 FY18E FY19E FY20E

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

FY15 FY16 FY17

228 295 334

FY15 FY16 FY17

6.4 7.6 8.1

FY15 FY16 FY17

45

Revenue

($M)

OP

($M)

OP

(%)

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

46

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

47

Accelerating Automotive Growth

FY12 FY13 FY14 FY15 FY16 FY17

Estimated Annual Revenue

$500M run rate

48

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

49

$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

50

Revenue

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

51

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

52

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

53

FY12 FY13 FY14 FY15 FY16 FY17

$500M run rate

Medical Bookings Recovering

Estimated Annual Revenue

54

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

55

127 132 158 180

FY14 FY15 FY16 FY17

3.8 4.5 4.7 5.0

FY14 FY15 FY16 FY17

Industrial and Emerging Industries (IEI)

Revenue

($B)

OP

($M)

56

FY17 Updates

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

revenue

» 72+ new logos

9.5%

CAGR

12.3%

CAGR

6.1%

Growth

3.6%

OP%

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

57

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.

58

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

59

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

60

Flex Energy Solutions

Supporting broad markets

Utility Community Distributed Generation Residential Solar Tracking Systems Energy Storage Analytics

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

FY15 FY16 FY17

61

Revenue

($M)

62

CEC Leading Market Share Position

Wireless 4G/5G SDN Optical 100G/400G Converged Storage Switching & IP Routing

Telecom

• No. 1 WW

Networking

• No. 1 WW

Enterprise Compute

• No. 1 WW

Security Appliance

Examples of established customers

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

63

64

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

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%

65

Latest Financial Update

322 475 416 420 350

FY13 FY14 FY15 FY16 FY17

6,597 7,063 8,017 8,580 9,117

FY13 FY14 FY15 FY16 FY17

31% 27% 28%

684 639 591 563 545 531

67

Fiscal Year 2017 Business Highlights

Improving Profitability Portfolio Evolution Driving Richer Mix Consistent Shareholder Returns

HRS + IEI Revenue

($M)

• Adj. Earnings Per Share

(EPS)

• Adj. Operating Margin

(%)

Free Cash Flow

4

($M)

Share Repurchases

($M)

HRS + IEI as % Total Revenue

$0.84 $0.89 $1.08 $1.14 $1.17

FY13 FY14 FY15 FY16 FY17

2.6% 2.5% 2.9% 3.2% 3.4%

FY13 FY14 FY15 FY16 FY17

680 701 554 639 660

FY13 FY14 FY15 FY16 FY17

shares outstanding

38% 35%

5,773 5,877 6,009 6,115 5,863 7.1% 6.9% 6.9% 7.1% 7.1%

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

• Adj. Gross Margin

Revenue & Adjusted Gross Margin

($M)

Quarterly Financial Highlights

22% 22% 20% 20% 20%

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

Return on Invested Capital

1

(ROIC %)

$0.29 $0.27 $0.28 $0.34 $0.29

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

Adjusted Earnings Per Share

(EPS)

Adjusted Operating Income

($M)

3.5% 3.2% 3.3% 3.6% 3.5%

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

• Adj. Operating Margin

200 190 197 223 205

68

Q4 FY17 Target Adjusted Operating Margin Range

($M)

Rev$ OP$

(adj.)

OP%

(adj.)

$1,983 $53 2.7%

Continued investments in cloud and data center while challenging demand environment persists

$1,535 $41 2.7%

Operating solidly in target range while investing in new technologies and markets

$1,296 $53 4.1%

Returned to target range on broad strength led by energy and capital equipment

$1,049 $84 8.0%

Strong sustainable margins led by solid execution and continued Auto expansion

Corporate Services & Other2

• ($26)
• Total

$5,863 $205 3.5%

6 4 2 2.5 9 6 4 3.5

69

Operating Performance by Business Group

2.7%

2.7% 4.1% 8.0%

CEC CTG IEI HRS

70

Revenue by Business Group

Communications & Enterprise Compute

Telecom, Networking, Server & Storage, Storage & Security Appliance, Converged Infrastructure, Software Defined Product Solutions.

Consumer Technologies Group

Wearables, Fashion, Connected Living, Gaming, Mobile, PCs/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.

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

($M)

$ $ $ $ $ Q/Q % Y/Y % Outlook Y/Y %

CEC

2,201 2,196 2,102 2,102 1,983 (6%) (10%)

Down 5% - 15% CTG

1,364 1,314 1,665 1,849 1,535 (17%) 13%

Up 5% - 15% IEI

1,190 1,289 1,243 1,141 1,296 14% 9%

Flat to up 5% HRS

1,018 1,078 999 1,023 1,049 2% 3%

Up 5% - 10% Total

$5,773 $5,877 $6,009 $6,115 $5,863 (4%) 2%

HRS IEI CTG CEC

34% 22% 18% 26%

Q4 FY17

40%

Q1 FY2018 Guidance – June 2017

GAAP Income Before Income Taxes

$100 - $130 million

GAAP Earnings Per Share

$0.16 - $0.20

Other Information:

Interest & Other Expense $30 - $35 million Adjusted Income Tax Rate Low-end of 10% to 15% range WASO 538 million shares

($M, except per share amounts)

$5,700 - $6,100 Revenue $170 - $200 Adjusted Operating Income $0.24 - $0.28 Adjusted Earnings Per Share

» » »

71

Appendix: Reconciliation of GAAP to Non-GAAP Measures

Quarter-ended

March 31, 2017

($Thousands, except debt to EBITDA ratio)

GAAP Adjustments Non-GAAP Pretax income $98,941 $72,171 $171,112 Depreciation 106,990

• 106,990

Amortization 19,078 (19,078)

• Interest, net

24,471 6,827 31,298 EBITDA 249,480 59,920 309,400 EBITDA – rolling 4 qtrs. 980,377 273,452 1,253,829 Total Debt $2,952,143

• $2,952,143

Debt to EBITDA 3.0x (0.7x) 2.4x

Quarter-ended

March 31, 2017

ROIC % GAAP 13.9%

Non-GAAP Adjustments 6.2%

Non-GAAP 20.1%

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. Please refer to the Investor Relations section of our website for full reconciliation of last twelve months after tax Non-GAAP operating income to the most directly comparable GAAP financial measure. The net invested capital asset base is defined as the sum of shareholders' equity plus debt less cash and cash equivalents averaged over the last five quarters. 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. Non-GAAP pretax income excludes certain amounts that are included in the most directly comparable measures under GAAP including stock-based compensation expense, restructuring charges, intangible amortization and certain other charges. Additionally, non-GAAP interest includes the loss

• n the sale of accounts receivable under our global AR securitization and factoring programs.

Quarter-ended

March 31, 2017

($Thousands, except per share amounts) GAAP gross profit $384,804 Stock-based compensation expense 2,517 Restructuring and other 31,735 Non-GAAP gross profit $419,056 GAAP income before income taxes $98,941 Stock-based compensation expense 14,956 Restructuring and other 38,138 Intangible amortization 19,078 Interests and other, net 27,663 Other charges, net 6,186 Non-GAAP operating income $204,962 GAAP provision for income taxes $12,067 Intangible amortization benefits 1,725 Tax benefit on restructuring and other 1,132 Non-GAAP provision for income taxes $14,924 GAAP net income $86,874 Stock-based compensation expense 14,956 Restructuring and other 38,138 Intangible amortization 19,078 Adjustments for taxes (2,857) Non-GAAP net income $156,189 Diluted EPS GAAP EPS $0.16 Non-GAAP EPS $0.29 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.

72

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, restructuring expense and certain other charges or 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

• r as an alternative to net income or loss as an indicator of performance. Please refer to the Investor Relations section of our website for full reconciliation of last twelve months after

tax Non-GAAP operating income to the most directly comparable GAAP financial measure.

• 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.
• 4. Free cash flow is calculated as cash from operations less net purchases of property and equipment.

73

Creating a smarter, more connected world

For more information contact:

Kevin Kessel

VP, Investor Relations 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