Re sults for Q2 F isc al 2021 E a rning s Anno unc e me nt: Oc to b e r 29, 2020 (Qua rte r E nde d Se pte mb e r 25, 2020) 0
Risks and Non- GAAP Disc losur e s T his pre se nta tio n c o nta ins fo rwa rd-lo o king sta te me nts within the me a ning o f U.S. se c uritie s la ws, inc luding sta te me nts re la te d to future e xpe c te d re ve nue s a nd e a rning s pe r sha re a nd me a sure s tha t we a re ta king to re spo nd to the c ha lle ng e s pre se nte d b y the COVI D-19 pa nde mic a nd the re sulting e c o no mic disruptio ns. T he se fo rwa rd-lo o king sta te me nts invo lve risks a nd unc e rta intie s tha t c o uld c a use the a c tua l re sults to diffe r ma te ria lly fro m tho se a ntic ipa te d b y the se fo rwa rd-lo o king sta te me nts. Re a de rs a re c a utio ne d no t to pla c e undue re lia nc e o n the se fo rwa rd-lo o king sta te me nts. T he se risks inc lude : the e ffe c ts o f the COVI D-19 pa nde mic o n o ur b usine ss, re sults o f o pe ra tio ns a nd fina nc ia l c o nditio n; tha t future re ve nue s a nd e a rning s ma y no t b e a c hie ve d a s e xpe c te d; the e ffe c ts tha t the c urre nt ma c ro e c o no mic e nviro nme nt c o uld ha ve o n o ur b usine ss a nd de ma nd fo r o ur pro duc ts; the e ffe c ts tha t c urre nt c re dit a nd ma rke t c o nditio ns c o uld ha ve o n the liq uidity a nd fina nc ia l c o nditio n o f o ur c usto me rs a nd supplie rs, inc luding a ny impa c t o n the ir a b ility to me e t the ir c o ntra c tua l o b lig a tio ns; the c ha lle ng e s o f e ffe c tive ly ma na g ing o ur o pe ra tio ns, inc luding o ur a b ility to c o ntro l c o sts a nd ma na g e c ha ng e s in o ur o pe ra tio ns; litig a tio n a nd re g ula to ry inve stig a tio ns a nd pro c e e ding s; c o mplia nc e with le g a l a nd re g ula to ry re q uire me nts; the po ssib ility tha t b e ne fits o f the Co mpa ny’ s re struc turing a c tio ns ma y no t ma te ria lize a s e xpe c te d; tha t the e xpe c te d re ve nue a nd ma rg ins fro m re c e ntly la unc he d pro g ra ms ma y no t b e re a lize d; o ur de pe nde nc e o n a sma ll numb e r o f c usto me rs; the impa c t o f c o mpo ne nt sho rta g e s, inc luding the ir impa c t o n o ur re ve nue s; g e o po litic a l risk, inc luding the te rmina tio n a nd re ne g o tia tio n o f inte rna tio na l tra de a g re e me nts a nd tra de po lic ie s, inc luding the impa c t o f ta riffs a nd re la te d re g ula to ry a c tio ns; a nd tha t re c e ntly pro po se d c ha ng e s o r future c ha ng e s in ta x la ws in c e rta in jurisdic tio ns whe re we o pe ra te c o uld ma te ria lly impa c t o ur ta x e xpe nse . I n a dditio n, the COVI D-19 pa nde mic inc re a se s the like liho o d a nd po te ntia l se ve rity o f ma ny o f the fo re g o ing risks. T he ma king o f a ny sta te me nt in o ur pre se nta tio n do e s no t c o nstitute a n a dmissio n b y F le x o r a ny o the r pe rso n tha t the e ve nts o r c irc umsta nc e s d e sc rib e d in suc h sta te me nt a re ma te ria l. Additio na l info rma tio n c o nc e rning the se a nd o the r risks is de sc rib e d unde r “Risk F a c to rs” a nd “Ma na g e me nt’ s Disc ussio n a nd Ana lysis o f F ina nc ia l Co nditio n a nd Re sults o f Ope ra tio ns” in o ur a nnua l re po rt o n F o rm 10- K fo r the fisc a l ye a r e nde d Ma rc h 31, 2020. Our sha re re purc ha se pro g ra m do e s no t o b lig a te the Co mpa ny to re purc ha se a spe c ific numb e r o f sha re s a nd ma y b e suspe nde d o r te rmina te d a t a ny time witho ut prio r no tic e . Ple a se re fe r to the a ppe ndix se c tio n o f this pre se nta tio n fo r re c o nc ilia tio n o f the No n-GAAP fina nc ia l me a sure s to the mo st dire c tly c o mpa ra b le GAAP me a sure s. I f this pre se nta tio n re fe re nc e s histo ric a l no n-GAAP fina nc ia l me a sure s, the se me a sure s a re lo c a te d o n the “I nve sto r Re la tio ns” se c tio n o f o ur we b site , www.fle x.c o m a lo ng with the re q uire d re c o nc ilia tio n to the mo st c o mpa ra b le GAAP fina nc ia l me a sure s. T he fig ure s pre se nte d in this pre se nta tio n ha ve b e e n ro unde d. T his ma y le a d to individua l va lue s no t a dding up to the to ta ls pre se nte d. T he fo llo wing b usine ss se g me nt a c ro nyms will b e use d thro ug ho ut this pre se nta tio n: Automotive : a uto no mo us, c o nne c tivity, e le c trific a tio n a nd CE C: da ta infra struc ture , e dg e infra struc ture a nd sma rt te c hno lo g ie s. c o mmunic a tio ns infra struc ture . F le x Re lia bility F le x Ag ility He a lth Solutions: me dic a l de vic e s, me dic a l e q uipme nt, a nd ife style : a pplia nc e s, c o nsume r pa c ka g ing , flo o rc a re , mic ro L drug de live ry. mo b ility a nd a udio . Solutions Solutions Industria l: c a pita l e q uipme nt, industria l de vic e s, re ne wa b le & Consume r De vic e s: mo b ile a nd hig h ve lo c ity c o nsume r g rid e dg e a nd po we r syste ms. de vic e s. 1 1
Busine ss Update Re va thi Adva ithi, CE O 2
Q2 F Y2021 F inanc ial Summar y Disc ipline d fo c us a nd e xe c utio n thro ug h a c ha lle ng ing ma c ro e nviro nme nt Adj. Ope ra ting Inc ome Adj. F re e Ca sh F low Re ve nue Adj. E a rning s ($M) ($M) ($M) Pe r Sha re Adj. Ope ra ting Ma rg in 326 6,176 6,088 4.1% $0.36 5,985 3.7% 3.4% 187 $0.31 3.2% 247 $0.27 227 114 208 $0.23 5,153 163 -74 F Y20 F Y21 Jun-19 Jun-20 Se p-19 Se p-20 Jun-19 Jun-20 Se p-19 Se p-20 Jun-19 Jun-20 Se p-19 Se p-20 Jun-19 Jun-20 Se p-19 Se p-20 Q1 Q2 Q1 Q2 3 3
Guide d by c onsiste nt Q2 F Y2021 Busine ss Highlights busine ss pr inc iple s Dive rsific a tio n stra te g y a nd ta rg e te d c o mme rc ia l fo c us pro vide d stre ng th a nd b a la nc e de spite a c ha lle ng ing ma c ro Manage e nviro nme nt po rtfo lio to impro ve mix a nd pro fita b ility • COVI D-19 c o ntinue d to a ffe c t de ma nd Dr ive • F le x Re lia b ility So lutio ns re ve nue o f $2.7B, +19% Q/ Q a nd +6% Y/ Y disc ipline d, susta ina b le - He a lth So lutio ns de ma nd fo r COVI D-re la te d c ritic a l c a re pro duc ts e xe c utio n re ma ine d stro ng Pur sue - Auto mo tive re c o ve re d me a ning fully fro m Q1 tro ug h, b ut still do wn Y/ Y de sig n-le d ma nufa c turing • F le x Ag ility So lutio ns re ve nue o f $3.3B, +14% Q/ Q, -7% Y/ Y fo r b e tte r ma rg ins - Sig nific a nt re c o ve ry in L ife style drive n b y ro b ust de ma nd fo r pre mium pro duc ts in flo o rc a re , a pplia nc e a nd a udio Ge ne r ate a djuste d F CF with prude nt - Ste a dy de ma nd fo r 5G pro duc ts a nd c ritic a l infra struc ture suppo rting c a pita l a llo c a tio n wo rk a nd le a rn fro m ho me a pplic a tio ns in CE C • Stro ng o pe ra ting pe rfo rma nc e de spite to p line pre ssure Gr ow drive pro fita b le g ro wth - Adjuste d o pe ra ting ma rg in e xpa nsio n o f +40 b ps Y/ Y a nd ma rke t le a de rship - Ro b ust a djuste d fre e c a sh flo w g e ne ra tio n o f $326M 4 4
Q2 2021 F inanc ial Re sults Pa ul L undstro m, CF O 5
Q2 F Y2021 Inc ome State me nt Summar y Disc ipline d fo c us a nd e xe c utio n thro ug h a c ha lle ng ing ma c ro e nviro nme nt ($M, e xc e pt pe r sha re a mo unts) Pr ior Yr Cur r e nt Qtr Se pte mb e r 27, 2019 Se pte mb e r 25, 2020 Ne t sa le s $6,088 $5,985 Adjuste d o pe ra ting inc o me 227 247 Adjuste d ne t inc o me 158 180 Adjuste d E PS $0.31 $0.36 GAAP inc o me (lo ss) b e fo re inc o me ta xe s ($96) $153 GAAP ne t inc o me (lo ss) (117) 113 GAAP E PS (lo ss) ($0.23) $0.22 6 6
Quar te r ly F inanc ial Highlights So lid e xe c utio n dro ve ma rg in e xpa nsio n Adj. Gross Profit Adj. SG&A Adj. Ope ra ting Inc ome ($M) ($M) ($M) Adj. Gro ss Ma rg in % o f Re ve nue Adj. Ope ra ting Ma rg in 8.5% 8.4% 8.3% 8.2% 8.1% 8.0% 7.9% 7.8% 7.7% 3.1% 7.6% 7.5% 7.1% 3.0% 7.4% 7.3% 4.1% 7.2% 6.8% 7.1% 7.0% 6.9% 6.8% 6.7% 6.6% 3.7% 6.5% 6.4% 6.3% 6.2% 6.1% 6.0% 423 5.9% 414 5.8% 5.7% 247 5.6% 186 5.5% 5.4% 5.3% 5.2% 177 227 5.1% 5.0% 4.9% 4.8% 4.7% 4.6% 4.5% 4.4% 4.3% 4.2% 4.1% 4.0% 3.9% 3.8% 3.7% 3.6% 3.5% 3.4% 3.3% 3.2% 3.1% 3.0% 2.9% 2.8% 2.7% 2.6% 2.5% Se p-19 Se p-20 Se p-19 Se p-20 Se p-19 Se p-20 7 7
Q2 F Y2021 Se gme nt Pe r for manc e Re ve nue Adj. Ope ra ting Inc ome & Ma rg in ($M) Q/ Q Y/ Y ($M) Y/ Y (%) Y/ Y He a lth Solutions: COVI D-re la te d c ritic a l c a re pro duc t de ma nd re ma ine d stro ng F le x Re liability Automotive : Site s o pe ra te d fo r full q ua rte r, 19% 6% 12% +30 b ps $2,667 $179 6.7% a lle via ting prio r unde r a b so rptio n dra g Solutions Industria l: Gro wth drive n b y po we r so lutio ns a nd re ne wa b le s C: Ne two rking a nd c lo ud g ro wth o ffse t we a k CE e nte rprise I T spe nding F le x Agility ife style : I nc re a se d de ma nd fo r hig h-e nd dura b le L 14% -7% -7% +10 b ps $3,318 $88 2.7% g o o ds a c ro ss multiple pro duc t c a te g o rie s Solutions Consume r De vic e s: Pro lo ng e d re c o ve ry in e me rg ing ma rke ts Co rpo ra te -- -- -- ($20) -- -- -- -- Se rvic e s & Othe r* T otal $5,985 16% - 2% $247 9% 4.1% +40 bps *Co rpo rate Se rvic e s and Othe r: c e ntralize d administrative c o sts that are no t inc lude d in the asse ssme nt o f the pe rfo rmanc e o f e ac h o f the ide ntifie d se g me nts 8 8
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