Sketch-to-Scale Solutions Inves estor or Presentation esentation - PowerPoint PPT Presentation

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

Table of contents Flex is Ready dy / Strateg egical cally Strat trateg egic c M&As As / Finan nanci cial al Why Flex? Position ioned ed Sket etch ch-to to-sca scale Riche her r Business iness Mix Updat date to to Win The World Has Changed 15 15 2020 Revenue & Profit 36 36-37 37 Why Invest in Flex? Innovation From Sketch-To- 28 28 M&A Transactions 56 56 4-5 Growth Scale The Flex Advantage 16 16 Strong Free Cash Flow NEXTracker 57 57 6 High Reliability Solutions 38-44 38 44 % of Sketch-To-Scale 29 29 (HRS) US Footprint 17 17 Shareholder Return Revenue MCi 58 58 7 Flex Platform 18 18 Industrial & Emerging 45-48 45 48 ROIC Design-Enabled 30 30 Wink 59 59 8 Industries (IEI) Manufacturing Growth Megatrends 19 19 Portfolio Evolution Farm Design 60 60 9 Communications & 49 49-51 51 Silicon Valley Customer 31 31 12 Industries 21 21 Enterprise Compute (CEC) Profit Growth & Earnings Innovation Center Latest Financial Update 62 62-66 66 10-11 Power 100+ Locations Globally 22 22 Consumer Technologies Innovation Labs 32 32 IR Contact Info 67 67 Group (CTG) 52 52-54 54 Customer Diversification 12 Innovation & Centers of 23-24 23 24 Sketch-To-Scale Impact On 33 33 Excellence Balanced Capital Structure HRS Business 13 Lab IX 25 25 Nike Partnership 34 34 Elementum 26 26 2

Why Flex?

Why invest in Flex? Evolving our portfolio to provide more predictable earnings, higher margins and 1 meaningful earnings power Strong sustainable free cash flow 2 Unwavering shareholder return commitment 3 4

Financial performance underscores successful evolution Resilient Sustainable Profitable Consistent $1.9B FCF generated 9% CAGR 11% CAGR $1.3B repurchased (FY13 - 16) (FY13 - 16) (FY14 - 16) (FY14 - 16) 126% $1.14 75% 792 $1.08 68% 66% 751 99% $0.89 665 87% FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 Adjusted EPS Free Cash Flow Returned Adjusted Operating Profit Free Cash Flow Conversion 1 ($M) 5 1. Free cash flow conversion defined as free cash flow / adjusted net income

Strong sustainable free cash flow Free ee Ca Cash Flo low w Co Conversion sion 1 Free ee Ca Cash Flo low ($M) $3.2B to $3.3B 1 year 99% 100% for FY13 to FY17E 3 year 103% 5 year 99% 600 - 700 701 680 639 554 Free ee Cash Flo low w Yie ield ld 2 1 year 10% 10% 3 year 10% 5 year 10% FY13 FY14 FY15 FY16 FY17E 1. Free cash flow conversion defined as free cash flow / adjusted net income 6 2. Free cash flow yield based on average market cap at fiscal year-end

Unwavering shareholder return commitment Committed to returning over 50% of annual free cash flow to shareholders Share re Re Repurc rchase hase In the la last t 6 Years, rs, we we have repurchased… ($M) 813 ~ $2.5 billion in stock 757 ~ 335 million shares 684 ~ 33% net shares outstanding 639 591 563 545 510 475 % of Free e Ca Cash Flo low w 420 416 400 Re Returned rned to Shareholders reholders 322 66% 1 yr FY16 3 yrs 70% FY14-FY16 5 yrs FY12-FY16 76% FY11 FY12 FY13 FY14 FY15 FY16 *FY17 YTD: $260M shares repurchased, 537M shares outstanding shares outstanding (millions) 7

Guided by our return on invested capital Return urn on Inves vested ed Capit ital al 1 (ROIC %) Quarter erly ly Annual • Improving earnings efficiency 24 • Disciplined capital 22% 22% 22 22 22 Avg. 22 22 22 deployment 20 20 19 • Internal target threshold stands at 20% • ROIC well above WACC Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 FY12 FY13 FY14 FY15 FY16 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 8 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.

Strategic portfolio evolution Driving predictable earnings and margin expansion ~27% ~28% 42% 39% 29% 36% FY10 FY16 FY20E 19% ~22% 16% ~23% 13% 6% 19% 35% ~45% $4.5B $8.6B ~$13.0B HRS + IEI HRS + IEI HRS + IEI revenue revenue revenue ~4 ~2 ~6 years years years Estimated average product life cycle CTG CEC HRS IEI 9

Positioned for operating profit and margin expansion Targeted 2020 delivers profit growth FY16 Adj djusted d Targe Ta geted ted Targe get t Opera rating ng Margi gin Operatin rating g Profit it Mix Opera rati ting ng Margi gin Pr Prior Ra r Range ge New Ra w Range ge Pr Profit ($M) CEC CTG $295 7.6% 5 - 7% HRS 6 - 9% FY20E 20E $158 3.4% 4 - 6% IEI 4 - 6% IEI HRS $265 3.0% 3 - 4% CEC 2.5 - 3.5% $164 2.3% 2 - 3% CTG >60% 0% 2 - 4% Corporat porate ($90) servic ices s & other her 1 $792 $792 3.2% 3.2% 10 1 Corporate services and other primarily includes corporate services costs that are not included in the assessment of the performance of each of the identified business group

Positioned to deliver meaningful earnings power Portfolio Po folio Substantial tantial earnin nings gs le levera verage ge Evolution olution 2016 - 2020 CAGR CEC 4x CTG Revenue mix FY20E 12% 12%+ 3x IEI HRS 10%+ 10% ~45% Sket etch ch-to to- ~35% scale le Total Flex % Sketch-to-scale ~3% 3% FY20E Revenue Adj. Adj. EPS Operating CEC CTG IEI HRS 11 Profit

Strong customer diversification continues Top 10 Custom omer er Re Revenu enue (As % of total revenue) 64% 64% Q3 FY17 was… the 4th straight quarter 55% 55% with no 10% customer Number mber of 3 10%+ %+ 2 Cust stomers omers 44% 44% No 10% customer FY07 FY12 FY17E* 12 * FY17E reflects FY17 YTD through Q3FY17

Balanced Capital Structure Significant Debt Maturities ($M) (Calendar Year) Investment Grade Rating: Moody’s, S&P, Fitch Total Liquidity $3,357 5% Notes 4.75% Notes 4.625% Notes Revolver Term Loans $53 EURIBOR +100bps $1,500 LIBOR + 137.5bps Term Loans $106 EURIBOR +69bps LIBOR + 137.5bps Cash $1,857 $700 $600 $525 $500 $500 Liquidity 2017 2018 2019 2020 2021 2022 2023 2024 2025 Key Characteristics • Low cost of debt ~3.5% • Solid liquidity • Strong credit metrics (Debt / Adj. EBITDA (LTM) : 2.3x) • No significant near-term maturities 13 Please refer to the appendix section of this presentation for current period reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. For all historical periods referenced in this presentation, refer to the Investor Relations section of our website.

The World Has Changed… Flex is Ready

The world has changed Increased Growth of regionalization Asian OEMs Supply chain complexity Faster product cycles Intelligence of More disruptive Things TM products New hardware Global OEMs Innovation Citizenship on the rise 15

Flex is ready… the Flex advantage $25B $2 5B 100 100 20 200,000 0,000 2,500 2, 500 50M 50M revenue sites in over employees design sq. ft. of 30 countries engineers manufacturing & services space 16

The Flex US advantage 6M 6M 15 st stat ates es $300M+ 00M+ sq. ft. of US investments in design & innovation centers • plastic injection molding • footprint the last 4 years specialty materials • automation • flexible circuits • tooling • after-market services • distribution • 17

Flex Platform Our company invests across three dimensions 18