Flex : Fourth Quarter 2024 Q4 2024 Presentation

Q4 FY24

Earnings Presentation

Quarter End: March 31, 2024

Earnings Announcement: May 1, 2024

Risks and Non-GAAP Disclosures

This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including

expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These risks include: that we may not achieve our expected future operating results; the effects that the current and future macroeconomic environment, including inflation, slower growth or recession, a potential U.S. federal government shutdown, and currency exchange rate fluctuations, could have on our business and demand for our products; supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand; the impact of fluctuations in the pricing or availability of raw materials and components, labor and energy, and logistical constraints; risks related to the recently completed spin-off of Nextracker, and the transactions related thereto, including the qualification of these transactions for their intended tax treatment; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits; geopolitical risks, including impacts from the termination and renegotiation of international trade agreements and trade policies, the ongoing conflicts between Russia and Ukraine and between Israel and Hamas, disruptions caused by the attacks on shipping vessels in the Red Sea, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; the effects that current and future credit and market conditions could have on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations to us and our ability to pass through costs to our customers; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; hiring and retaining key personnel; litigation and regulatory investigations and proceedings; our compliance with legal and regulatory requirements; changes in laws, regulations, or policies that may impact our business, including those related to climate change; the possibility that benefits of the Company's restructuring actions may not materialize as expected; that the expected revenue and margins from recently launched programs may not be realized; our dependence on industries that continually produce technologically advanced products with short product life cycles; the short-term nature of our customers' commitments and rapid changes in demand may cause supply chain issues, excess and obsolete inventory, and other issues which adversely affect our operating results; our dependence on a small number of customers; our industry is extremely competitive; we may be exposed to financially troubled customers or suppliers; the success of certain of our activities depends on our ability to protect our intellectual property rights and we may be exposed to claims of infringement or breach of license agreements; a breach of our IT or physical security systems, or violation of data privacy laws, may cause us to incur significant legal and financial exposure and disrupt our operations; physical and operational risks from natural disasters, severe weather events, or climate change; our ability to meet environmental, social and governance expectations or standards or achieve sustainability goals; we may be exposed to product liability and product warranty liability; that recently proposed changes or future changes in tax laws in certain jurisdictions where we operate could materially impact our tax expense; and the impact and effects on our business, results of operations and financial condition of a public health issue, including a pandemic, or catastrophic event.

Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K and in our subsequent filings with the U.S. Securities and Exchange Commission. Flex assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.

Please refer to the appendix section of this presentation for reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. If this presentation references historical non-GAAP financial measures, these measures are located on the "Investor Relations" section of our website, www.flex.comalong with the required reconciliation to the most comparable GAAP financial measures.

The figures presented in this presentation have been rounded. This may lead to individual values not adding up to the totals presented.

The following business segment acronyms will be used throughout this presentation:

	Automotive: autonomous, connectivity, electrification, and smart technologies.		CEC: data infrastructure, edge infrastructure, and communications infrastructure.
Flex Reliability	Health Solutions: medical devices, medical equipment, and drug delivery.	Flex Agility	Lifestyle: appliances, consumer packaging, floorcare, micro mobility, and audio.
Solutions	Industrial: capital equipment, industrial devices, renewables, grid edge, and	Solutions	Consumer Devices: mobile and high velocity consumer devices.
	power systems.

2

Q4 key financials

	Q4FY23	Q4FY24
FLEX
Revenue	$6,984M	$6,169M
Adj. Gross Profit / Margin	$492M / 7.0%	$532M / 8.6%
Adj. Operating Income / Margin	$293M / 4.2%	$333M / 5.4%
Adj. Earnings Per Share	$0.44	$0.57
GAAP Earnings Per Share	$0.30	$0.93

Results reflect continuing operations, excluding Nextracker.

See Appendix for GAAP to non-GAAP reconciliations.

Market trends

CLOUD / AI

demand strength continues

AUTOMOTIVE

strength driven by increasing content in a diversified portfolio

Flex execution

Q4

Record Flex, Reliability and Agility adj. operating margins

FY24

Record Flex, Reliability and Agility annual adj. operating margins

3

Q4 segment performance

	REVENUE A	ADJ. OPERATING INCOME	ADJ. OPERATING MARGIN	TOTAL FLEX REVENUE C
	($B)	Y/Y GROWTH	($M)	Y/Y GROWTH	%	Y/Y CHANGE
RELIABILITY
	$2.9	(10%)	$171	21%	5.8%	140 bps
							52%	$6.2B	48%
AGILITY
	$3.2	(14%)	$181	6%	5.6%	100 bps
CORPORATE SERVICES	--	--	($19)	--	--	--
AND OTHER B
TOTAL	$6.2	(12%)	$333	14%	5.4%	120 bps

1. Amounts may not sum due to immaterial intersegment eliminations not presented separately.
2. Corporate Services and Other includes centralized administrative costs that are not included in the assessment of the performance of each of the identified segments.
3. Percentages may not foot due to rounding.

See Appendix for GAAP to non-GAAP reconciliations.

4

FY24 performance

	FY23	FY24	Y/Y	ADJ. OP
	GROWTH	MARGIN
FLEX REVENUEA	$28.5B	$26.4B	(7%)
Adj. Gross Profit / Margin	$2,028M / 7.1%	$2,060M / 7.8%	2%
Adj. Operating Income / Margin	$1,232M / 4.3%	$1,267M / 4.8%	3%
Adj. Earnings Per Share	$1.93	$2.15	11%
GAAP Earnings Per Share	$1.48	$1.98	34%
RELIABILITY REVENUE	$12.7B	$12.5B	(2%)	5.3%
Automotive	$3.6B	$3.8B	6%
Health Solutions	$2.6B	$2.7B	3%
Industrial	$6.5B	$6.0B	(8%)
AGILITY REVENUE	$15.8B	$13.9B	(12%)	4.8%
CEC	$9.2B	$8.6B	(7%)
Lifestyle	$4.5B	$3.8B	(17%)
Consumer Devices	$2.1B	$1.6B	(24%)

1. Total revenue may not sum due to immaterial inter-segment eliminations not presented separately. Results reflect continuing operations, excluding Nextracker.
   See Appendix for GAAP to non-GAAP reconciliations.

NEXTRACKER VALUE CREATION ($M)

1/24 tax-free distribution to shareholders

7/23 NXT IPO follow-on

2/23 NXT IPO

2/22 TPG transaction

$3.5B

$500

$850

$500

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Core Flex

Delivering margin expansion and EPS growth through the cycle

REVENUE ($M)

		$28,502	~5%
			CAGR
			$26,415
	$24,633
$22,988
FY21A	FY22	FY23	FY24

ADJ. OPERATING INCOME ($M)

Adj. Operating Margin

			4.8%
	4.3%	4.3%
3.7%			$1,267
		$1,232
	$1,070
$853
FY21 B	FY22	FY23	FY24

ADJ. EARNINGS PER SHARE

			~20%
			CAGR
			$2.15
		$1.93
	$1.75
$1.22
FY21B	FY22	FY23	FY24

~20% EPS CAGR through the cycle

1. FY21 equates to FY21 Total Flex Revenue minus $1.2B in Revenue from Nextracker.
2. FY21 Total Flex adjusted operating income and adjusted earnings per share have been adjusted to exclude $178m of Nextracker income. See Flex FY21 web financials for reconciliation of FY21 Total Flex adjusted operating income and

adjusted earnings per share.

See Appendix for GAAP to non-GAAP reconciliations.

6

Cash flow overview

($M)	Q4F24	FY24
GAAP NET INCOME	$395	$1,245
Depreciation, Amortization and other Impairment Charges	147	537
Change in Working Capital and other, net	137	(456)
OPERATING CASH FLOW	679	1,326
Capital expenditures, netA	(77)	(505)
ADJ. FREE CASH FLOWB	602	821
Payments for Share Repurchases	(517)	(1,298)
Other Investing, Financing, and FX, net	(375)	(343)
NET CHANGE IN CASH AND CASH EQUIVALENTSB	($290)	($820)

1. Capital Expenditures, net is calculated as purchases of property and equipment minus proceeds from the disposition of property and equipment.
2. Amounts may not sum due to rounding.

See Appendix for GAAP to non-GAAP reconciliations.

CAPITAL EXPENDITURES, NETA ($M)

$180

$156 $144 $128

$77

Q4F23

Q1F24

Q2F24

Q3F24

Q4F24

ADJ. FREE CASH FLOW ($M)

$602

$270		$213	$156
Q4F23	Q1F24	Q2F24	Q3F24	Q4F24
	-$150

7

FY25 revenue expectations

RELIABILITY

Automotive

Health Solutions

Industrial

FY25 expectations

Down low-single-digit to up low-single-digit

New ramps and content gains driving above market growth

Medical device demand strong, but muted life sciences and hospital capex

AI driving growth in data center power, uncertain recovery timing in core industrial and renewables

AGILITY	Flat to down mid-single-digit
CEC	Cloud remains strong, enterprise IT and network spending recovery timing uncertain
Lifestyle	High-end durable goods market soft, but strong expansion in value-added services
Consumer Devices	Consumer end-markets remain soft, executing on cost management

8

Q1 FY25 guidance

Revenue

$5.6B - $6.2B

Interest expense

$53M

Adj. operating incomeA

$240M - $280M

GAAP $130M - $170M

Adj. Income Tax Rate

19%

Adj. earnings per shareB

~ $0.37 - $0.45

GAAP $0.11 - $0.19

Weighted avg. shares outstanding

~ 415M

1. Adjusted operating income excludes approximately $63 million restructuring charges, $30 million for stock-based compensation expense, and $16 million for intangible amortization, compared to GAAP operating income.
2. Adjusted earnings per share excludes $0.16 for restructuring charges, $0.07 for stock-based compensation expense, and $0.03 for net intangible amortization, compared to GAAP earnings per share

9

Financial guidance for FY2025

$25.4 - $26.4B revenue

5.2% - 5.4% adj. operating marginsA

$2.30 - $2.50 adj. earnings per shareB

$800M+ adj. free cash flow

• Macro headwinds through CY24 likely weigh on multiple end-markets
• Growth in key end-markets: cloud, power, auto, medical devices
• Rising global tax rates
• Further efficiency gains
• Maintaining current capital allocation priorities

1. Adjusted operating margin does not include the impact of approximately 0.5% for stock-based compensation, 0.4% for restructuring charges, and 0.2% for intangible amortization when compared to GAAP operating margin.
2. Adjusted earnings per share excludes $0.31 for stock-based compensation expense, $0.13 for net intangible amortization and $0.25 for restructuring charges, included in GAAP earnings per share.

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