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Sketch-to-scale Solutions
Investor Presentation
June 2016
1
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 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.
Why Flex?
2
3
Why invest in Flex?
Evolving our portfolio to provide more predictable earnings and higher margin
Positioned to deliver meaningful earnings power
Strong sustainable free cash flow
Unwavering shareholder return commitment
1
2
3
4
4
Financial performance underscores successful evolution
665
751
792
FY14 FY15 FY16
Sustainable
$0.89
$1.08
$1.14
FY14 FY15 FY16
Profitable
Adjusted EPS
Resilient
Free Cash Flow Conversion1
Consistent
Free Cash Flow Returned
126%
87%
99%
FY14 FY15 FY16
68%
75%
66%
FY14 FY15 FY16
9% CAGR 11% CAGR $1.9B FCF generated $1.3B repurchased
Adjusted Operating Profit
($M)
1. Free cash flow conversion defined as free cash flow / adjusted net income
(FY14 - 16) (FY14 - 16)(FY13 - 16)(FY13 - 16)
5
Strong sustainable free cash flow
Free Cash Flow Conversion 1
Free Cash Flow Yield 2
1. Free cash flow conversion defined as free cash flow / adjusted net income
2. Free cash flow yield based on average market cap at fiscal year-end
Free Cash Flow($M)
680 701
554
639
FY13 FY14 FY15 FY16 FY17E
600 - 700
10%1 year 10%
3 year 10%
5 year 10%
100%1 year 99%
3 year 103%
5 year 99%
$3.2B to $3.3Bfor FY13 to FY17E
6
Unwavering shareholder return commitment
% of Free Cash Flow
Returned to Shareholders
76%
70%
66%1 yr
3 yrs
5 yrs
In the last 6 Years, we
have repurchased…
~ $2.5 billion in stock
~ 335 million shares
~ 33% net shares outstanding
813
757 684
639 591
563 545
400
510
322
475
416 420
FY11 FY12 FY13 FY14 FY15 FY16
shares outstanding (millions)
Share Repurchase($M)
Committed to returning over 50% of annual free cash flow to shareholders
22
19
2224
22
FY12 FY13 FY14 FY15 FY16
7
Guided by our return on invested capital
Return on Invested Capital1(ROIC %)
AnnualQuarterly• Improving earnings
efficiency
• Disciplined capital
deployment
• Internal target threshold
stands at 20%
• ROIC well above WACC
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
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.
22%
Avg.24
23 2322 22
Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16
Strategic portfolio evolution
Driving predictable earnings and margin expansion
FY16
19% 16%
29% 36%
35%19%
FY10
6%13%
42% 39%
FY20E
~45%
$4.5BHRS + IEI
revenue
$8.6BHRS + IEI
revenue
~$13.0BHRS + IEI
revenue
~2years
~4years
~6years
Estimated average product life cycle
CTG CEC HRS IEI8
~28%
~23%
~27%
~22%
FY16 Adjusted
OperatingTarget Operating Margin
Profit($M)
Margin Prior Range New Range
$295 7.6% 5 - 7% 6 - 9%
$158 3.4% 4 - 6% 4 - 6%
$265 3.0% 3 - 4% 2.5 - 3.5%
$164 2.3% 2 - 3% 2 - 4%
Corporate
services & other1 ($90)
$792 3.2%
9
Positioned for operating profit and margin expansion
HRS
IEI
CTG
CEC
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
CEC
HRSIEI
CTG
FY20E
>60%
Targeted
Operating Profit Mix
Targeted 2020 delivers profit growth
10
Positioned to deliver meaningful earnings power
% Sketch-to-scale FY20E
Portfolio
Evolution
Sketch-to-
scale
~3%
10%+
12%+
Revenue Adj.
Operating
Profit
Adj. EPS
2016 - 2020 CAGR
Substantial earnings leverage
3x
4xRevenue mix
CEC
HRSIEI
CTG
FY20E
~45%
CEC CTG IEI HRS
~35%Total Flex
11
Balanced capital structure
Key Characteristics:
• Solid liquidity
• No significant near-term maturities
$1,608
$1,500
$578 $548 $500 $500 $600
Liquidity 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Debt Maturities by Calendar Year ($M)
Cash
Revolver
Total
Liquidity
$3,108
Term Loans
LIBOR + 125 & 137.5bps 4.625% Notes
5% Notes 4.75% Notes$56 EURIBOR +100bps
• Low cost of debt ~3.5%
• Strong credit metrics (Debt / Adj. EBITDA (LTM) = 2.2x)
Providing us with ample flexibility to support our business
The World is Changing… Flex is Ready
12
13
The world has changed
Increased
regionalizationGrowth of
Asian OEMs
Faster product
cycles
More disruptive
productsNew hardware
OEMsGlobal
Citizenship
Intelligence of
ThingsTM
Supply chain
complexity
Innovation
on the rise
14
Flex Platform
Our company invests across three dimensions
15
The Flex advantage
$25Brevenue
50Msq. ft. of
manufacturing
& services space
200,000employees
100sites in over
30 countries
2,500design
engineers
Contract
Manufacturing
(CM)
16
Our evolving value proposition forms an expanding TAM
$940BTAM
$524BTAM
1993-20012001-2010 2010-Future
$1T+TAM
Electronics
Manufacturing Services
(EMS)
End-to-end
supply chain solutions:
Sketch-to-scale
17
Innovation at Flex
Cultivateand accelerate
collective
innovation
Developthe smart
components that
enable intelligence
Identifyand leverage
technology
across industries
Commercializerelevant product
solutions
To innovate is to do something that has never been done before
Automotive
Healthcare
Industrial
Connected Living
Consumer Electronics
Energy
Fitness/Wellness
Communications
Aerospace & Defense
Consortia
Investments
Suppliers
OEMs
Employees
Centers of Excellence
Startups
Research Institutions
Universities
LabIX
Sensor Actuators
Human Machine Interface
Connectivity
Smart Software
Battery & Power
Flexible Technologies &
Miniaturization
Security & Computing
Design
Prototyping
New Product Introduction
Certification
Manufacturing
Distribution
Reverse Logistics
Tax & Trade
18
Real-time solutions to improve decision making
Incubated in 2012 by Flex – Now a majority-
owned subsidiary of Flex
• Consolidated financial with Flex
• Flex owns the majority of outstanding
equity and Board of Directors control
Board of Directors, Advisory Board and
Investors include:
• Lightspeed Venture Partners
• Workday
• Silverlake
• Flex
• Yahoo
Over $60M in total funding
Powered by Elementum: mobile software for end-to-end supply chain management
Strategically Positioned to Win
19
20
Very diversified business across industries
Medical
$2Billion
Automotive
$2Billion
Industrial
Goods
$1Billion
Home
Appliances
$1Billion
Capital
Equipment
$1Billion
Energy
$2Billion
Telecom
$3Billion
Enterprise
Compute
$2Billion
Wearables
$1Billion
Connected
Living
$1Billion
Mobile
$2Billion
Networking
$3Billion
Purposefully positioned in 100+ sites and 30 countries
Austin, TX ●●●●Dallas, TX ●●
Fort Worth, TX ●Houston, TX ●
Plano, TX ●
Milpitas, CA ●●●●Morgan Hill, CA ●
San Jose, CA ●San Carlos, CA ● Ashville, NC ●
Charlotte, NC ●Raleigh, NC ●●
Stuttgart, Germany ●
Althofen, Austria ●●
Columbia, SC ●
Northfield, MN ●
Aguascalientes, MX ●●
Guadalajara, MX ●●●
Tijuana, MX ●●
Manaus, Brazil ●●
Jaguariuna, Brazil ●Sorocaba, Brazil ●●
Budapest, Hungary ●Gyal, Hungary ●Pecs, Hungary ●Sarvar, Hungary ●●Tab, Hungary ●Zalaegerszeg, Hungary ●
Leitrim, Ireland ●Cork, Ireland ●
Limerick, Ireland ●●
Migdal Haemek, Israel ●●Ofakim, Israel ●
Yavne, Israel ●
Lodz, Poland ●Tczew, Poland ●●
Timisoara, Romania ●●
Ronneby, Sweden ●●
Mukachevo, Ukraine ●
Bangalore, India ●Chennai, India ●●
Milan, Italy ●●Treviso, Italy ●Trieste, Italy ●
Valencia, CA ●
Memphis, TN ●
Louisville, KY ●
Dubai, UAE ●
Manchester, UK ●Swindon, UK ●
Istanbul, Turkey ●
Oostrum, Netherlands ●Venray, Netherlands ●
Brno, Czech Republic ●Pardubice, Czech Republic ●
Global Services
Design
Manufacturing
Overland Park, KS ●
Gushu (Shenzhen), China ●●Huang Tian (Shenzhen), China ●●Nanjing, China ●Shanghai, China ●●Shenzhen, China ●●Suzhou, China ●Wuzhong (Suzhou), China ●●●Zhuhai, China ●●
Changi, Singapore ●Joo Koon Singapore ●●Kallang, Singapore ●
Batam, Indonesia ●
Penang, Malaysia ●●Port of Tanjung Pelepas (Johor), Malaysia ●●Senai (Johor), Malaysia ●●Skudai (Johor), Malaysia ●
Tianjin, China ●
Delhi, India ●Mumbai, India ●
Taipei, Taiwan ●●
Ibaraki, Japan ●●
Chengdu, China ●●
Mechanicals
Zurich, Switzerland ●
Dalingshan (Dongguan), China ●Hong Kong, China ●●Qiaotou (Dongguan), China ●Atlanta, GA ●
Burlington, Canada ●Newmarket, Canada ●Ottawa, Canada ●Toronto, Canada ●
Coopersville, MI ●●Farmington Hills, MI ●
Tempe, AZ ●
Buffalo Grove, IL ●
Manchester, CT ●
Sonderborg, Denmark ●
Headquarters
Juarez, MX ●●●Reynosa, MX ●
21
22
Strong strategic relationships with customers
30years
15years
10years
0years
Intense customer focus builds trust and long-standing relationships
Sketch-to-Scale
23
Innovation from Sketch-to-scale
New Product
Introduction
Active
Tracking
Concepting
Manufacturing
Design &
Engineering
Market
ExpansionEnd of LifeDistribution &
Logistics
IP Protection CertificationPrototyping
Reverse
Logistics
24
25
Sketch-to-scale
3%
9%
5%
18%
CEC CTG IEI HRS
FY 2013
7%Total Flex
12%
27%
21%
30%
CEC CTG IEI HRS
FY 2016
21%Total Flex
CEC CTG IEI HRS
FY 2020E
~35%Total Flex
25-30%
35-40%
% of sketch-to-scale revenue
Design-enabled manufacturing growth
Mcor 3D
printer
Pella home
automation
Ford
transmission
solenoids
Whirlpool display
panelFossil
smartwatch
Itron gas
meterCiena 6500
platform
$1.6B
$3BFY16
FY15330+
400+FY16
FY15
>20% YoY design win growth
>85% YoY manufacturing pull-through increase
Flex e-inhaler
Sketch-to-scale delivers greater value
26
Flex Innovation Labs
• Headquartered in the heart of Silicon Valley
• A new concept lab focused on technology ideation, prototyping
and new co-innovation models
• Shared exploration of disruptive technologies across all industries
• World-class product, system and architecture expertise
• Environment designed to foster collaboration across Flex, our
customers and partners
Realizing innovation through shared exploration
27
Innovation at Flex
Innovation
Workshops
Concepting Product Design
& Engineering
Minimum Viable
Product
Design
Qualification
Doing what has never been done before
Innovation Labs: where sketch-to-scale starts
28
29
Enabling disruption with our innovative services
Manufacturing
• Scalable
Manufacturing
• Procurement &
Sourcing
Advanced Engineering &
Robotics Labs
• Value Engineering Services
• Manufacturing Technology
Innovation
Interconnect Technology
Center
• Multek (PCBs, Flexible & Rigid)
• Advanced Printed Circuits
• Integrated Design Capabilities
Failure Analysis Labs
& Mechanicals
• Materials
Characterization
• Sheet Metal
Manufacturing
System
Integration
• Configure to
Order
• Build to Order
New Product Introduction
• Prototype to Product Launch
• 3D Printing (plastic)
Confidential
Center
• Private & Secure
Manufacturing
Room
Lab IX
• Startup hardware
Accelerator
• Business Scaling
Resources
Global Services
• Forward & Reverse
Logistics
• Vendor Managed
Inventory
Innovation Labs &
Design Center
• Technology Innovation &
Engineering
• Design for ‘X’ Services
• 3D Printing (metal)
Silicon Valley’s Customer Innovation Center
Connected
Living Digital Health Smart EnergyConnected
Transportation
Mobility /
Cloud
Smart
AutomationWearables
Biometric
smart clothing
Multi-feature wearable
enabling commerce
3D augmented interactive
reality platform
Wearable fitness
tracking
Shared, interactive
shopping list
3D display
technology for personal
use
Mood enhancing /
altering wearable
Women's health
device
Brain sensing
headband
Stretchable
biometric circuits
and sensors
Ultrathin, flexible,
rechargeable
batteries
Smart adapter to wirelessly
control lights
Wireless charging for
personal devices
Smart drones for
transportation
Autonomous crime
prevention robots
High-speed
contactless data
connectivity
Low power Wi-Fi
chip for wireless
peripherals
Integrated,
configurable wireless
modules
Miniaturized global
navigation modules
Electro-adhesion
technology
Force-sensitive
touch technology Smartphones as
dashboard cameras
Wireless soil and
environment
monitoring
Analytics for home &
building automation Landscape computing
solutions for smart cities
Accelerating innovation with portfolio companies
Advanced
adaptive irrigation
system
30
31
Innovation today builds a strong core tomorrow
• Micro-electronics
encapsulation
(flex circuits)
• Sensor integration
• Optics (image capture)
• Smart watch packaging
(computing/mechanics)
• Bendable / stretchable
electronics
• Waterproofing
• Flexible substrates
• Precision bulk forming
• Integrated antenna
• Low pressure molding
• Rigid flex design, assembly
and integration
• Wireless charging integration
• Watertight sealing
• Fabrics and sensors
• GSR insert molding
• Dynamic bending
• HRM optical design
• LED transmittance
• Insert molded touch displays
Leading next generation technology and cutting edge trends
32
Ready for megatrends affecting each business group
Automotive Medical
Communications Industrial Consumer
Zero
Accidents
Car
Connectivity
Zero
Emissions
Improved
Compliance
Patient
Centric
Smart
Connected
Solutions
Human
Machine
Interfacing
Emerging
Wireless
Connectivity
Converged
Infrastructure
Smart
EnergyFlexibility
Connected
Lifestyle
Richer Business Mix
33
34
Structured to deliver profitable growth
Annual Revenue
Growth Target Comments
10% +• Megatrends driving growth
• Deep & broad global technical capabilities
10% +• Redefining Energy engagement model
• Positioned to penetrate massive TAM across Industrials
- 5% to 0%• Navigating challenging industry dynamics
• Maintaining market leading position across the board
3% to 5% • Success with ICE and Strategic customers
• New industry growth vectors
HRS
IEI
CTG
CEC
Targeted 2020 revenue growth model
FY16 Adjusted
OperatingTarget Operating Margin
Profit($M)
Margin Prior Range New Range
$295 7.6% 5 - 7% 6 - 9%
$158 3.4% 4 - 6% 4 - 6%
$265 3.0% 3 - 4% 2.5 - 3.5%
$164 2.3% 2 - 3% 2 - 4%
Corporate
services & other1 ($90)
$792 3.2%
35
Positioned for operating profit and margin expansion
HRS
IEI
CTG
CEC
1 Corporate services and other primarily includes corporate services costs that are not included in the assessment of the performance of each of the identified business group
CEC
HRSIEI
CTG
FY20E
>60%
Targeted
Operating Profit Mix
Targeted 2020 delivers profit growth
36
Consumer Technologies Group (CTG)
Revenue($M)
9,3588,940
6,998
FY14 FY15 FY16
FY16
19% 16%
29% 36%
35%19%
FY10
6%13%
42% 39%
CTG CEC HRS IEI
CTG at a glance
• FY 16 quick stats:
• $1.57B new bookings
• 55 new customers
• ~$1B in Wearables revenue
• >$0.5B in new Connected Home revenue
• 7% YoY Sketch-to-scale growth
• Opened SF Invention Lab
• Announced Nike business
• Acquired Wink
1,565
2,011 2,058
1,364
Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16
Revenue - $7.0BTotal CTG($M)
978
1,362 1,407
899
Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16
Revenue - $4.6B Excluding all Lenovo Motorola Smartphones($M)
37
38
Lenovo Motorola smartphone business update
Lenovo Motorola revenue
• Significant revenue headwind
removed
• Cost to close China Lenovo
Motorola operations within our
estimates
• Eliminated our China Lenovo
Motorola exposure
• Strong relationship in Brazil and
India
21,836 22,067
4,312 2,352
FY15 FY16
26,14824,419
Total FlexRevenue ($M)
CTGRevenue ($M)
4,628 4,646
4,312
2,352
FY15 FY16
8,940
6,998
Developing growth vectors
Fashion
ConnectedHome
ConsumerHealth
New Generation Products
Digital SportNike
• Smart Appliances
• Home Hubs
• Media Devices• Connected Audio
• Connected Jewelry
• Bags with Power• Smart Accessories
• Advanced Wearables
• Telehealth
• Personalized Monitoring
• Drones
• Virtual & Augmented Reality
• Telematics
• Activity Trackers
• Smart Helmets• Smart Watches• Athletic Apparel
• Shoes
39
Investing in new business models
+5%
+2%
3-4%
42
6
7
113%
-34%
48%
FY16 Achieved
STRATEGIC
CORE
ICE
Operating
Profit
Customers
AddedRevenue
Growth
40
Investing in new markets
0
200
400
600
800
1,000
1,200
1,400
1,600
FY 14 FY 15 FY 16
Wearables
Connected Home
7 new
customers
10 new
customers
10 new
customers
5 new
customers
+90%
+100%
Revenue ($M)
41
Revolutionary partnerships
• In 18 months, 20 inventions on the factory floor
• Fastest new Nike factory ramp,150 days from start to first ship
• On track to have meaningful revenue in FY18
• Enabling customization & regionalization
42
43
CTG going forward
New Markets55 new customers
6 growth vectors
Enabling profitable growth in FY 17, 18 and 19
Sketch-to-scale113% growth in ICE & 48% growth in Strategic
Exceeding OP targets in ICE and Strategic
Enabling a Smarter,
More Connected WorldLeverage technology across industries
Wink becomes a powerful ecosystem
FY16
19% 16%
29% 36%
35%19%
FY10
6%13%
42% 39%
CTG CEC HRS IEI
44
Communications & Enterprise Compute (CEC)
9,6889,191 8,842
FY14 FY15 FY16
Revenue($M)
CEC leading market share position
Wireless
4G/5G
SDN Optical
100G/400G
Converged
Storage
Switching &
IP Routing
Telecom
No. 1 WWNetworking
No. 1 WW
Enterprise
Compute
No. 1 WW
Security
Appliance
Examples of
established customers
45
46
Strategy for growth
• Expansion of new market segment
• Open Source & Software defined infrastructure
• Expand customer base
• Converged Infrastructure
• Maintain leadership position
• Enable transition via hybrid
Core OEM
Solution Providers
Cloud
Disruptive OEM Solutions
Notes: COTS = Common Off The Shelf Hardware
47
CEC Summary
Flex enables our customers to navigate
through disruptive technologies and market transitions
• Investments in design and technology are paying off in market expansion and new
customer additions
• Margin & key fundamentals stable, OP solid and strong cash flow generation
• Revenue transition Sketch-to-scale FY13 at 3% to FY20E ~30%
3,788
4,4594,681
FY14 FY15 FY16
48
Industrial & Emerging Industries (IEI)
Revenue($M)
FY16
19% 16%
29% 36%
35%19%
FY10
6%13%
42% 39%
CTG CEC HRS IEI
49
Broad Industrial market and massive TAM
2015 Flex TAM
Industrial Home & Lifestyle
TAM: $170B
Agriculture
TAM: $35B
Capital Equipment
TAM: $175B
Lighting
TAM: $20B
Industrial Automation
TAM: $115B
Appliance
TAM: $170B
Flex Energy Solutions
TAM: $100B+
50
IEI in FY16
> > >
$4.7BFY16 Revenue
5%Year Over Year
Growth Rate
$1BSketch to Scale
Revenue
20%Operating Profit
expansion over FY15
13 to 17number of accounts
over $100M
29accounts with double digit
growth
57accounts with
triple digit growth
$1.8Bof new
business wins
50new logos
51
There is significant opportunity in solar and storage
1
4.4
4.7
10.6
16.3
21.7
41.3
Solar
Oil
Other
Nuclear
Hydroelectric
Natural Gas
Coal
Global Electricity Production in 2015
100
2
4
6
8
10
12
14
CO2 Emissions in 2015 from
Electricity and Heat GenerationBillion tonnes CO2
Source: International Energy Agency (IEA), SolarPower Europe, GreenTech Media (GTM), Flex Estimates
Global market size in $B, CAGR in %
Solar & Storage Growth
93
5
9
130
195
35
Storage
Solar
98
139
230
2015 2020 2026
+8%
Energy source as a %
Oil
Natural Gas
Coal
52
Flex Energy solutions
Supporting broad marketsUtility CommunityDistributed Generation Residential
Solar Tracking SystemsEnergy Storage Analytics
53
Flex Energy solar panel solutions
• 1.7 GW Installed Capacity
• Expanding to greater than 2.0 GW in 2017
• Build-to-Print Services
• Panel design offering
High Quality Solar Panels
54
Energy Storage solutions for the utility market
Driving down the cost in Balance of Systems (BoS) enables
Energy Storage to proliferate
• Targeted for energy transmission &
distribution OEM’s
• Simplified architecture
• Design to maximize energy and
power density
The Standardized Container Platform (SCP)
55
Summary
>
Invest
Business
Development,
Innovation, Design &
Engineering,
Technical Sales
Engineers
Grow
Industrial
win-and-expand
strategy
Double down on
Solar and Storage
Drives double
digit growth
Generate
Margin
expansion through
Sketch-to-Scale
4%–6%
Operating profit
for IEI business
Increase
% Revenue
Contribution
to Flex’s total
business
> >
3,2753,557
3,899
FY14 FY15 FY16
56
High Reliability Solutions (HRS)
Revenue($M)
FY16
19% 16%
29% 36%
35%19%
FY10
6%13%
42% 39%
CTG CEC HRS IEI
84% increase in OP margin4.3% 7.9%
18% revenue
CAGR
Delivering on our commitments
25 quarters of YoY growth
57
58
Sketch-to-scale impact
Design related growth China & India expansion
FY11
(HRS revenue)
Large deal growth
FY16
FY16FY11
2X
3X7%
18%
30%(% HRS revenue)
($25Mil+)
59
HRS markets grow with predictability & longer life cycles
Automotive Medical Aerospace & Defense
16FDA regulated
sites
~$2BAuto segment
~$1.7BMedical segment
#1Industry*(Technology &
Revenue)
#1Industry*(Technology &
Revenue)
79%(Bookings
increase over
FY14)
65+ Medical products
designed
60+manufacturing transfers
made
~9,000Auto employees
25+locations
15countries
* Compared to traditional competitors
Autonomous
vehicles
13%2014-2024
Global revenue
CAGR
$61BADAS
Market
by 2024
Clean tech
28%2012-2022
Global volume
CAGR
13MElectric
Cars
by 2022
26% 2013-2020
Global volume
CAGR
48MConnected
Cars
by 2020
Connectivity
Automotive megatrends
139MX-by-Wire
Systems
by 2019
Vehicle
electrification
15%2014-2021
Global volume
CAGR
60
61
Automotive repositioned to focus on growth industries
Clean TechSmart Electronics Lighting
• Smart rearview camera
• Connectivity & infotainment
products
• Motion & power controls
• Center high mounted stop
lights (CHMSL)
• Overhead consoles &
ambient lighting
• LED driver modules
• Flexible LED lighting
(Q-Prime)
• Power & signal distribution
• Electrohydraulic controls
• Power conversion, storage &
charging
Rising costs
5.2%2014-2018
Global expense
CAGR
$19THealthcare
Spending
by 2018
6.1% 2013-2020
Global revenue
CAGR
$14BDiabetes
Market
by 2020
Chronic disease
Medical megatrends
$59BDigital
Health
by 2020
Connected health
33%2015-2020
Global volume
CAGR
62
63
Medical innovations in the connected world
Health Monitoring Drug Delivery Health Treatment
• DIVG delivery patches
• Insulin pump patches
• Electromechanical drug
delivery systems
• Smart patches
• 3D motion sensors
• Hearing aids
• EEG/EMG devices
• Electronic glasses
• Wearable sensor patches
• Electronic tattoos
• Artificial limbs
• Smart pills
• Bionic eye
• Dental hearing systems
• Smart implants
64
HRS continues to deliver
FY17 FY18 FY19 FY20 FY21
10%+
Revenue
FY17 FY18 FY19
Bookings
95%booked
93%booked
86%booked
1 Above-average revenue growth & margin expansion
2 Increased predictability & longer product life cycles
3 Expansion across new industries
4 Technology convergence
65
HRS going forward
Strategic M&A
66
1 Reflects M&A transactions completed from FY13 to FY16 (excludes OEM asset acquisitions)67
Targeted M&A strategy aligned with portfolio evolution
$25-$100M
82
<$25M
Target
capabilities
Strategic
customers
Longer
product
lifecycles
EPS accretiveBarriers to
entry
Higher
margins
Key Selection Criteria
# of AcquisitionsBased on purchase price 1
3
>$100M
% of M&A
spend by
business
group 1
72%
HRS27%
IEI
1%
CTG
68
Expanded solar offerings through a strategic acquisition
Smart, connected, and most efficient solar panel
tracker technology on market
• Globally recognized for delivering the most advanced single axis PV
trackers for dozens of projects across five continents
• NEXTracker’s technology allows a 120-degree tracking range that
yields 20-40% more energy than a non-tracker system
• Globally, trackers are only 15% of total installed base of utility
grade solar installations, and we think it will grow to 25% in the
next three years
• The acquisition augments the Flex Energy business and contribute
to its more than $1 billion in sales, and is accretive to Flex's growth,
margin, EPS and cash flow generation
69
Smart investment to extend leadership in Smart Tech
• Customer and Global Expansion
• Accelerates our position with strategic OEM’s
• #1 market share leader in China
• Specified by the OEM’s
• Extends Flex’s market leadership in Automotive
• #1 global market leader in exterior mirror motion controls
• Extends existing $100M motion control business
• “Smart” mirror embedded with electronics
MCi is a leading global manufacturer of glass
and powerfold mirror actuators
Doubling down on the Intelligence of Things
• Smart Home platform connecting devices
seamlessly and globally
• Wink is a connected home IoT software that
connects the world’s greatest brands together
• 30+ OEM partners, most of which are Flex
customers
• Synergy for Flex to drive new and exciting
relationships
400K+ users & 1M+ devices
New home added every 2 minutes
70
71
Shaping the future of healthcare with Farm Design
Human Factors Engineering (HFE)1 & Design CompanySupports the Flex sketch-to-scale strategy
• 40+ years in operation
• New Hampshire facilities and Cleveland Clinic - desirable geographic
proximity for Northeast-based customers
• Over 300 utility & design patents
• Increases Flex HFE capabilities - HFE is now a FDA requirement and many
customers do not have the expertise
• Design expertise in orthopaedics, cardiology, med-surgery, and diagnostics
• 50+ Employees with medical HFE expertise
1. Human Factors Engineering (HFE): Understanding how people interact with technology and studying how user interface design affects the
interactions people have with technology is the focus of human factors engineering (HFE) and usability engineering (UE). - FDA
trained researchers • human factor engineers • generative research •
formative usability testing • usability validation testing • domestic and
international experience
Latest Financial UpdateResults for Q4 Fiscal 2016
Earnings Announcement: April 28, 2016
72
73
Quarterly financial highlights
24%23% 23%
22% 22%
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16
Return on Invested Capital(ROIC %)
$0.27
$0.23
$0.27
$0.35
$0.29
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16
Adjusted Earnings Per Share (EPS)
5,952 5,566 6,317 6,763
5,773
6.4% 6.4% 6.3%
6.7%
7.1%
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16
Adj. Gross Margin
Adjusted Operating Income ($M)
Revenue & Adjusted Gross Margin($M)
178 159
196 236
200
3.0%2.9%
3.1%
3.5% 3.5%
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16
Adj. Operating Margin
$67 3.0% $265 3.0%
$35 2.5% $164 2.3%
$47 4.0% $158 3.4%
$81 7.9% $295 7.6%
Corporate
Services & Other1 ($30) ($90)
Total $200 3.5% $792 3.2%
Q4 FY16(Mar-16)
Operating performance by business group
CEC
CTG
HRS
($M)
IEI
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.
OP$ OP%
FY16
OP$ OP%
Target Adjusted Operating
Margin Range
3%
5% 7%
3% 4%
4% 6%
2%
Sustaining margins despite lower
sequential revenue
Continue to drive a richer sketch-to-scale
engagement model
2nd straight quarter of margins within target
range despite challenging macro
Exceeded target margin range for the 3rd
straight quarter
Q4 FY16
Adj. Operating Margin
74
400 510
322
475 416 420
FY11 FY12 FY13 FY14 FY15 FY16
751
792
FY 2015 FY 2016
Fiscal year 2016 business highlights
Improving Profitability Portfolio Evolution
Driving a Richer Mix
Consistently Return
Value to Shareholders
Adjusted Earnings Per Share(EPS)
$1.08
$1.14
FY 2015 FY 2016
Adjusted Operating Income($M)
Revenue Mix Free Cash Flow($M)
554
639
FY 2015 FY 2016
Share Repurchases($M)
+6% growth
+5% growth +15% growth
shares outstanding
FY16
HRS19%
IEI16%
CTG29%
CEC36%
35%
FY15
HRS14%
IEI17%
CTG34%
CEC35%
31%
813 757 684
639 591 563 545
75
76
Revenue by business group
38%
20%18%
24%
HRS IEI
CTG
CEC
Mar
2016
38%
Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-17E
Business Group $M $M $M $M $M Q/Q % Y/Y % Outlook (Q/Q)
CEC 2,052 1,966 2,205 2,469 2,201 -11% 7% Stable
CTG 1,861 1,565 2,011 2,058 1,364 -34% -27% Down high single digits
IEI 1,132 1,130 1,146 1,214 1,190 -2% 5% Up low single digits
HRS 907 905 955 1,022 1,018 0% 12% Stable
Total Revenue $5,952 $5,566 $6,317 $6,763 $5,773 -15% -3%
Communications &
Enterprise Compute(Telecom, Networking, Server & Storage,
Converged Infrastructure)
Consumer Technologies
Group(Digital Sport, Wearables, Consumer Health,
Gaming, Connected Home, Fashion, Mobile,
PC/Printers)
Industrial & Emerging
Industries(Semiconductor & Capital Equipment, Office
Solutions & Industrial Automation, Appliance
& Lifestyle, Energy, Lighting)
High Reliability
Solutions(Automotive, Medical, Aerospace &
Defense)
35%
19%15%
31% Mar
2015
34%
HRS IEI
CTG CEC
Certain amounts have been recast to conform to current year presentation
77
June quarter guidance – Q1 FY2017
Other Information:
Interest & Other Expense ~$25 million
Adjusted Income Tax Rate 8.0% to 10.0%
GAAP EPS $0.17 - $0.21
WASO ~551 million shares
($ millions, except per share amounts)
Adjusted operating income excludes approximately $21 million for stock based compensation, of which approximately $18 million is excluded from adjusted SG&A.
GAAP EPS reflects approximately $0.08 for intangible amortization and stock-based compensation expense.
$5,500 - $5,900Revenue
$175 - $205Adjusted Operating Income
$0.25 - $0.29Adjusted Earnings Per Share
For more information contact:
Kevin Kessel
VP, Investor Relations
(408) 576 - 7985
Or visit us at investors.flextronics.com
Mary Lee
Director, Investor Relations
(408) 576 - 5167
