Flextronics Q1FY14 Earnings Release Slides

Results for Q1 FY2014 (Quarter Ended June 28, 2013)

Earnings Announcement: July 25, 2013

2

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 non-GAAP financial measures, these measures are

located on the “Investor Relations” section of our website, www.flextronics.com along

with the required reconciliation to the most comparable GAAP financial measures.

Risks and Non-GAAP Disclosures

3

Q1 FY2014 Income Statement Highlights

Please refer to the Investor Relations section of our website which contain the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures.

Prior Yr Prior Qtr Current Qtr

June 29, March 31, June 28,

($ in millions, except per share amounts) 2012 2013 2013

Net sales $5,976 $5,295 $5,791

Adjusted operating income 177 106 137

Restructuring charges - (125) (41)

GAAP operating income (loss) 167 (27) 87

Adjusted net income 154 86 112

GAAP net income (loss) 137 (49) 59

Adjusted EPS $0.22 $0.13 $0.18

EPS impact - restructuring charges - ($0.18) ($0.06)

GAAP EPS $0.20 ($0.08) $0.09

4

177 183

146

106

137

3.0% 3.0% 2.4%

2.0% 2.4%

Jun-12 Sep-12 Dec-12 Mar-13 Jun-13

% Revenue

$0.22

$0.26

$0.22

$0.13

$0.18


5,976

6,175 6,123

5,295

5,791


359 368

346

314

348

6.0% 6.0%

5.7%

5.9% 6.0%


% Revenue

Trended Quarterly Income Statement Highlights


Adjusted Gross Profit ($ in millions)

Revenue ($ in millions)

Adjusted Earnings Per Share (EPS)

Adjusted Operating Income ($ in millions)

5

~$10M

~$25M

~$40M

Mar-13 Jun-13 Sep-13E Dec-13E

Restructuring Charges Update

($ in millions)

FY’13 Jun-13

Cash Charges $123 $39

Non-Cash Charges 104 2

Total Charges $227 $41

Program Benefits:

• Estimated savings of $160 million on track

• Cost reductions focused on headcount,

depreciation and operating expense

• 95% of savings associated with cost of

goods sold (COGS)

Savings Trajectory to ~$160M Estimated Quarterly Savings

Program Update:

• Accounting charges completed in Q1’14

• Total one-time charge of $268 million with

60% resulting in cash charges

~$30-$35M

6

Other Income Statement Highlights

Net interest & other expense was $20 million, which included an expected

net $7 million loss from the sale of our non-core investment in Workday

Adjusted income tax rate 4.0%

Reconciliation between GAAP & adjusted EPS:

• Restructuring and other charges $41 million

• Stock based compensation $9 million

• Intangible amortization $8 million

• Tax benefit $4 million

• Aggregate impact on EPS is $0.09

Weighted average shares outstanding (WASO):

640 million shares vs. 664 million shares last quarter

7

Working Capital Management

Net Working Capital = Total A/R and Inventory less A/P

Cash Conversion Cycle and Net Working Capital – excludes non-cash reductions to AR from our AR sales programs for all periods

Please refer to the Investor Relations section of our website which contains the reconciliation of the adjusted financial measures to the most directly comparable GAAP measures

Inventory ($ in millions)

Cash Conversion Cycle (days)

Net Working Capital ($ in millions)

3,150 3,122

2,911 2,723

3,152

7.0x 7.4x

7.7x 7.1x

7.4x


Inventory Turns

2,033

1,772 1,606 1,542

1,729

8.5%

7.2% 6.6%

7.3% 7.5%


% Annualized Revenue

30

27

24

26 25


8

Current Qtr

June 28,

($ in millions) 2013

GAAP net income $59

Depreciation and amortization 113

Non-cash restructuring and impairment charges 7

Change in working capital and other 19

Net cash provided by operating activities 198

Purchases of property & equipment, net of dispositions (141)

Free Cash Flow 57

Payments for repurchase of ordinary shares (215)

Payments for acquired businesses, net of cash acquired (188)

Repayments of bank borrowings, net (9)

Other net change in cash 48

Net change in cash and cash equivalents ($307)

Summary Statement of Cash Flows


9

$1,280

$1,500

$2,780

$174 $370

$511 $500 $500

Liquidity 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Strong Capital Structure


Significant Debt Maturities (Calendar Year) ($ millions)

4.625% Sr. Notes Term Loans 5% Sr. Notes

($ in millions) Mar-13 Jun-13

Cash $1,587 $1,280

Total Debt 2,068 2,060

Debt / EBITDA (LTM) 1.9x 2.0x

Cash

Revolver

Total

Liquidity

10

Jun-13 Sep-13E

Business Group $ Q/Q % Y/Y % Outlook (Q/Q)

Integrated Network Solutions $2,532 3% -9% Up Low Single Digits

Industrial & Emerging Industries 906 2% -7% Up Low Single Digits

High Reliability Solutions 807 4% 20% Stable

High Velocity Solutions 1,546 31% 0% Up ~ 25 - 30%

Total Revenue $5,791 9% -3%

Revenue by Business Group

Certain prior year amounts have been recast to conform to current year presentation.

($ in millions) Jun-12 Sep-12 Dec-12 Mar-13 Jun-13

Business Group $ % Total $ % Total $ % Total $ % Total $ % Total

Integrated Network Solutions $2,780 47% $2,709 44% $2,694 44% $2,454 46% $2,532 44%

Industrial & Emerging Industries 977 16% 976 15% 913 15% 886 17% 906 16%

High Reliability Solutions 670 11% 657 11% 714 12% 776 15% 807 14%

High Velocity Solutions 1,549 26% 1,833 30% 1,802 29% 1,179 22% 1,546 26%

Total Revenue $5,976 $6,175 $6,123 $5,295 $5,791

11

Q2 FY2014 Guidance

Other Information:

GAAP EPS $0.16 - $0.19

Adjusted SG&A Expense $215 million

Interest & Other Expense $20 - $25 million

Adjusted Income Tax Rate 8% - 10%

WASO 625 million shares

Revenue ($ mil) $6,100 - $6,400

$150 - $175 Adjusted Operating Income ($ mil)

$0.19 - $0.22 Adjusted EPS

THANK YOU

For more information:

investors.flextronics.com