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

Sketch-to-Scale Solutions ™ Investor Presentation June 2017

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: High Reliability Solutions Industrial & Emerging Communications & Consumer Technologies HRS IEI CEC CTG Industries Enterprise Compute Group Medical: Consumer Health, Digital Health, Disposables, Drug Delivery, Diagnostics, Semiconductor & Capital Equipment, Office Telecom, Networking, Server & Storage, Wearables, Fashion, Connected Living, Life Sciences & Imaging Equipment. Solutions, Household Industrial & Lifestyle, Storage & Security Appliance, Converged Gaming, Mobile, PCs/Printers. Industrial Automation & Kiosks, Energy & Infrastructure, Software Defined Product Automotive: Vehicle Electronics, Metering, Lighting. Solutions. Connectivity, Clean Technologies. 1

Table of Contents Flex is Ready / Strategically Positioned Why Flex? Sketch-to-scale Richer Business Mix Financial Update to Win Industry Has Changed 16 2020 Revenue & Profit 38-39 Why Invest in Flex? Innovation From Sketch-To- 30-31 Latest Financial Update 66-71 3-4 Growth Scale The Flex Advantage 17 Strong Free Cash Flow Appendices 5 Consumer Technologies 40-44 % of Sketch-To-Scale Revenue 32 72-73 Group (CTG) Flex Platform 18 Shareholder Return 6 IR Contact Info Design-Enabled 74 Megatrends 19 High Reliability Solutions 45-55 ROIC Manufacturing Growth 33 7 (HRS) 12 Industries 21-22 Portfolio Evolution Nike Partnership 8 Industrial & Emerging 56-60 34 100+ Locations Globally 23 Industries (IEI) Profit Growth & Earnings Reinventing Construction 9-10 Power 35 Innovation & Centers of 24-25 Communications & Enterprise Platform is Uniquely Excellence Compute (CEC) 61-65 Earnings Leverage Positioned 36 11 Investing in Capabilities 26 Targeted M&A 12 Elementum 27 Customer Diversification 13 Flex Pulse 28 Balanced Capital Structure 14 2

Why Invest in Flex? Evolving our portfolio to provide more predictable earnings, higher margins and meaningful 1 earnings power 2 Strong sustainable free cash flow 3 Unwavering shareholder return commitment 3

Financial Performance Underscores Successful Evolution Sustainable Profitable Resilient Consistent 8% CAGR 9% CAGR $3.2B FCF generated $ 2.0B repurchased (FY13 – 17) (FY13 – 17) (FY13 – 17) (FY13 – 17) 1.17 1.14 815 792 475 701 1.08 751 680 660 420 416 639 0.89 665 0.84 350 322 611 554 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Adjusted Operating Profit Adjusted EPS Free Cash Flow Generated Shares Repurchased ($M) ($) ($M) ($M) 4

Strong Sustainable Free Cash Flow Cash Flow Generation Free Cash Flow ($M) Targets FY18 – FY20 $3.2B for FY13 to FY17 $3.5B+ $2B+ ~90% 701 680 660 Operating Cash Free Free Cash Flow 639 Flow Cash Flow Conversion 554 Key Cash Flow Drivers » Earnings expansion » Working capital sustained at 6-8% of sales » Disciplined Capex investment modestly above depreciation levels FY13 FY14 FY15 FY16 FY17 5

Unwavering Shareholder Return Commitment Committed to returning over 50% of annual free cash flow to shareholders Share Repurchase Since FY11, we have repurchased… ($M) 813 ~35% 757 ~$2.9B ~360M of shares 684 in stock shares 639 outstanding 591 563 545 531 510 475 % of Free Cash Flow 420 416 400 350 Returned to Shareholders 322 53% 1 – yr 64% 3 – yr 70% 7 – yr FY11 FY12 FY13 FY14 FY15 FY16 FY17 shares outstanding (millions) 6

Guided by our Return on Invested Capital Return on Invested Capital 1 (ROIC %) Quarterly Annual » Improving earnings efficiency 22% » Disciplined capital 24 Avg. 22 22 22 22 deployment 20 » 20 20 20 19 Internal target threshold stands at 20% » ROIC well above WACC Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 FY13 FY14 FY15 FY16 FY17 7

Portfolio Evolution to Higher Margin Business Driving predicable earnings and margin expansion CEC CEC CEC IEI 39% 35% ~27% ~23% IEI IEI 21% 13% 19% 38% FY10 FY17 FY20E ~45% HRS 6% HRS HRS ~22% CTG CTG 17% CTG 27% ~28% 42% $4.5B $9.1B ~$13.0B HRS + IEI revenue HRS + IEI HRS + IEI revenue revenue Est Avg ~2 ~4 ~6 Product Life years years years Cycle 8

Positioned for Operating Profit and Margin Expansion Targeted 2020 delivers profit growth Targeted Adjusted FY17 Adjusted Target Adjusted Operating Profit Mix Operating Operating Margin Margin Range Profit ($M) HRS $334 8.1% 6 – 9% IEI CEC IEI $180 3.6% 4 – 6% ~60% FY20E CTG $180 2.8% 2 – 4% CTG CEC HRS $229 2.7% 2.5 – 3.5% Corporate ($108) services and other 2 $815 3.4% 9

Positioned to Deliver Meaningful Earnings Power Portfolio Evolution Substantial Earnings Leverage 2016 – 2020 CAGR Revenue mix CEC CTG 4x FY20E 3x 12%+ IEI HRS 10%+ ~45% Sketch-to-Scale ~40% % Sketch-to-Scale FY20E Total Flex ~3% CEC CTG IEI HRS Revenue Adj. Adj. EPS Operating 10 Profit

The Path to Delivering Substantial Earnings Leverage $2.15+ ~$0.02 ~$0.02 ~$0.12 ~$0.20 ~$0.19 $1.80 ~$0.22 * $1.55 Consensus Record ~$0.26 » Sketch-to-Scale penetration EPS » Leveraging investments $1.17 » Operational execution $1.14 12% CAGR FY16 FY17 HRS CTG IEI CEC Corporate Share Interest and FY20E Investments Repurchase Taxes 11 *Reflects consensus as of May 10, 2017. FY20E EPS consensus for FLEX is $1.64 as of June 2, 2017.

Targeted M&A Accelerates Our Portfolio Evolution Expanding longer product lifecycle businesses and Sketch-to-Scale TM capabilities Key Selection Criteria Target Longer product Strategic Higher EPS Barriers to entry capabilities lifecycles customers margins accretive % of M&A Spend By Business Group * # of Acquisitions (FY13 – FY17) Based on purchase price * IEI HRS 24% 4 2 11 61% ~$1.5B CTG <$25M $25-$100M M&A >$100M 15% 12 *Reflects M&A transactions completed from FY13 to FY17 (excludes certain OEM asset acquisitions). 1 Reflects M&A transactions completed from FY13 to FY17 (excludes certain OEM asset acquisitions)

Strong Customer Diversification Continues Q4 FY17 was 5th straight quarter with no 10% customer Top 10 Customer Revenue (As % of total revenue) 64% 55% 43% FY07 FY12 FY17 10%+ No 10% Customers customer 13

Balanced Capital Structure Significant Debt Maturities ($M) (Calendar Year) 700 ~3.5% 2.4x 53 600 503 500 500 Low Avg. Cost Strong Debt/ of Debt Adj. EBITDA (LTM) 107 $3.3B CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 Solid Liquidity Term LIBOR + EURIBOR LIBOR + EURIBOR -- -- -- -- -- Loans 137.5 bps +100 bps 137.5 bps +69 bps ($1.5B revolver + $1.8B cash) Notes -- -- -- 4.625% -- -- 5% -- 4.75% Investment Grade Rated Moody’s | S&P | Fitch 14

The World Has Changed… Flex is Ready 15

Our Industry Has Changed -- We Have Evolved Our Model Electronic Contract Manufacturing Sketch-to-Scale TM Manufacturing Services Solutions and co- Asset Light and innovation Worldwide Scale Lower Cost and Labor Arbitrage Time Cost Based Discussion Revenue/Strategy Discussion » Director of Operations CEO/CTO/COO Product Executive 3 – 6 months lead-time 18-24 months lead-time 16

Flex is Ready … T he Flex Advantage 100 200,000 3,000 $24B 50M revenue sites in over 30 employees design sq. ft. of countries engineers manufacturing & services space 17

Capabilities Built for the Future The Flex Platform Our company innovates across three dimensions 18

Yielding a Massive Expansion of TAM 2015-2020 data points ($B), CAGR 10% 54% 56% 14% 20% 35 47 25 392 61 246 4 8 32 10 Smart Autonomous/ Artificial Cloud Intelligent Asset Cities * Connected Cars Intelligence (AI) ** Data Center Tracking 19% 84% 82% 22% 16% 176 119 12 38 76 3 1 36 50 65 Augmented Reality/ Virtual Digital Connected 5G/Telco Industrial Automation Reality (AR/VR) ** Health Living Cloud Source: Gartner, IDC,IFR, Markets & Markets, GMI Insights, Goldman Sachs, Autodesk, Flex Internal Estimates Source: Gartner, IDC,IFR, Markets & Markets, GMI Insights, Goldman Sachs, Autodesk, Flex Internal Estimates 19 (1) Represents 2016 estimated figured *Overlaps with other categories including connected living an autonomous vehicles. (2) Overlaps with other categories including connected living an autonomous vehicles **Represents 2016 estimated figure.

Strategically Positioned to Win