Sketch-to-Scale Solutions Investor Presentation March 2018 Risks - - PowerPoint PPT Presentation

Sketch-to-Scale Solutions

™

Investor Presentation

March 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 2020 Revenue & Profit Growth 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 15 The World Has Changed The Flex Advantage Flex Platform Megatrends 12 Industries 100+ Locations Globally Centers of Excellence Investing in Capabilities Elementum Flex Pulse Reinventing Construction Nike Partnership 17 18 19 20 22 23 24 25 26 27 28 29 Innovation From Sketch- To-ScaleTM % of Sketch-To-ScaleTM Revenue 31 32 Consumer Technologies Group (CTG) Communications & Enterprise Compute (CEC) Industrial & Emerging Industries (IEI) High Reliability Solutions (HRS) 34-36 37-41 42-44 45-52 Latest Financial Update IR Contact Info 54-58 59

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

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

9

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%

10

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

11

$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

12

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).

13

Improving Customer Diversification

10%+ Customers

FY07 FY12 FY17

Top 10 Customers as % of Total Revenue

64% 55% 43%

No 10%+ customer

Q3 FY18 was 8th straight quarter with no 10%+ customer

14

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

15

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

17

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

18

Capabilities Built for the Future The Flex Platform

Our company innovates across three dimensions

19

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.

20

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

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 Innovatio n 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

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

24

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

25

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

26

Digital Visibility Through Flex Pulse

50+

Elementum and enterprise-wide applications

8

worldwide Pulse Centers

500+

customer campus visits

5,000+

Flex business users

27

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

Cloud-based 5D Enterprise Platform

28

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

29

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-

• f-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

• pportunities and

foresee challenges.

Prototype Creation

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

31

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

Richer Business Mix

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

34

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

35

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

36

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

37

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

38

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

39

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

40

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%

41

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

42

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

43

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

44

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

45

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

46

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

47

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

48

$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

49

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

50

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

51

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

52

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

(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)

54

Q3 FY18 Target Adjusted Operating Margin Range

($M)

Rev$ OP$

(adj.)

OP%

(adj.)

$1,979 $50 2.5%

Disciplined investments to expand and reinforce

• ur 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 & Other

• ($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%

55

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

56

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

57

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

58

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

Katherine Chen

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