Deutsche Bank Technology Conference Kevin Kessel, VP Investor …€¦ · Gaming, Mobile, PCs/Printers. Industrial & Emerging Industries Semiconductor & Capital Equipment, Office

Deutsche Bank Technology Conference

Kevin Kessel, VP Investor Relations

September 2016

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Risks and non-GAAP disclosuresThis 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.flextronics.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 & Enterprise ComputeTelecom, Networking, Server & Storage, Security, Cloud Solutions.

Consumer Technologies GroupWearables, Fashion, Connected Living, Gaming, Mobile, PCs/Printers.

Industrial & Emerging IndustriesSemiconductor & Capital Equipment, Office Solutions, Household Industrial & Lifestyle, Industrial Automation & Kiosks, Energy & Metering, Lighting.

HRS High Reliability SolutionsMedical: Consumer Health, Digital Health, Disposables, Drug Delivery, Diagnostics, Life Sciences & Imaging Equipment.Automotive: Vehicle Electronics, Connectivity, Clean Technologies.

IEI CEC CTG

http://www.flextronics.com/

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The world has changed…

Increasedregionalization

Growth ofAsian OEMs

Faster productcycles

More disruptive products

New hardwareOEMs

GlobalCitizenship

Intelligence of ThingsTM

Supply chaincomplexity

Innovationon the rise

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…making the reasons to invest in Flex more compelling

Structurally evolving our portfolio to higher margin opportunities with more predictable demand; facilitating the intelligence of things (IoT) across industries

Strong sustainable free cash flow and S&P 500 leading free cash flow yield

Unwavering shareholder return commitment of 50%+ of free cash flow

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2

3

4

Strategic portfolio evolution well underway

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 IEI

~28%

~23%

~27%

~22%

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Unrivaled combination of capabilities, scale, and insights across technology and the convergence of technology (IoT)

Medical

$2Billion

Automotive

$2Billion

IndustrialGoods

$1Billion

Home Appliances

$1Billion

CapitalEquipment

$1Billion

Energy

$2Billion

Telecom

$3Billion

EnterpriseCompute

$2Billion

Wearables

$1Billion

ConnectedLiving

$1Billion

Mobile

$2Billion

Networking

$3Billion

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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

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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 income2. 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

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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

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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 mixCEC

HRSIEI

CTG

FY20E

~45%

CEC CTG IEI HRS

~35%Total Flex

Creating a smarter, more connected world

For more information contact:

Kevin Kessel

VP, Investor Relations

kevin.kessel@flextronics.com

(408) 576 - 7985

Or visit us at investors.flextronics.com

Mary Lee

Director, Investor Relations

mary.lee@flextronics.com

(408) 576 - 5167