Investor Presentation March 2015
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
Table of Contents
Flextronics Platform
Manufacturing
Technologies
Headcount
Balanced Global
Manufacturing Footprint
4-7
8
9
10
IntroBusiness
Groups
Differentiated
Strategy
Cash Flow &
Capital
Structure
Latest
Financial
Update
FY14 Revenue Mix
Long-Term Model
INS Summary
INS Differentiation
IEI Summary
IEI New Business Wins
IEI Differentiation
HRS Summary
HRS Differentiation
CTG Summary
CTG Differentiation
CTG Pyramid
CTG Growth Potential &
Margin Profile
12
13
14
15
16
17
18
19
20
21
22
23
24
World Is Changing
Driving Future
Revenue Growth
Strong Strategic
Relationships
HRS Automotive
Medical Technology
Wearable Technology
Connected Home
Open Innovation
Platform Strategy
Success With
Disruptors Is
Evidenced In IPOs
Automation
Customer Innovation
Center (CIC)
Lab IX
Elementum
Made in the USA
26
27
28
29
30
31
32
33
34
35
36
37
38-39
40
Free Cash Flow
Generation
Solid Capital Structure
Strategic M&A
Investments
Share Repurchase
42
43
44
45
Q3 FY15 Highlights &
Key Trends
Trended Quarterly IS
Highlights
Revenue by Business
Group
FY14 Income Statement
Highlights
FY14 Summary:
Financial Principles
High Level Summary
47
48
49
50
51
52
4
Flextronics Platform
A Supply Chain Solutions Provider
Lower costs, reduce risk and increase velocity
Our system for creating value for our customers to increase their competitiveness
5
Flextronics Platform
A Supply Chain Solutions Provider
Improve
decision making• Monitor the health
of your supply chain
real-time
• Simultaneously
launch new
products across
multiple continents
• Time-to-market
advantages from
regionalized
solutions
6
Increase
competitiveness• Innovation that
brings products to
market faster
• ~2,500 design
engineers enabling
technology
innovation
• Global network of
forward, reverse
and spare parts
logistics
Flextronics Platform
A Supply Chain Solutions Provider
7
Leverage global
assets• ~$26 billion in sales in
FY14
• Over 100 sites spanning
30 countries with a
workforce of ~200,000
• ~52M square feet of
manufacturing and
services globally
• 3 Product Innovation
Centers and expanding
Flextronics Platform
A Supply Chain Solutions Provider
8
Manufacturing Technologies
Power Flexible & Rigid
Circuits
Machining
Precision
Plastics
EnclosuresAutomotive
Components
9
40%
15%
11%
16%
6%
7%
1%4%
Employee base centered in key low-cost manufacturing locations across various emerging markets.
Strong presence in the U.S. and Europe to support high-mix, low-volume requirements.
~200,000 Employees Strong Worldwide
Mexico
South East Asia
Europe
China
U.S.
Brazil India
Other
10
Balanced Global Manufacturing Footprint
>70 Locations | ~25M Square Feet | ~200K Employees
Power
PCBA, Box Build, SI
Mechanicals
Aguascalientes, MX ●●
Althofen, Austria ●
Austin, TX ●●Dallas, TX ●
Fort Worth, TX ●Houston, TX ●
Batam, Indonesia ●
Cebu, Philippines ●●
Ashville, NC ●Charlotte, NC ●
Chengdu, China ●●
Chennai, India ●●●
Columbia, SC ●
Coopersville, MI ●
Cork, Ireland ●Limerick, Ireland ●
Dalingshan (Dongguan), China ●Qiaotou (Dongguan), China ●
Guadalajara, MX ●●
Huang Tian (Shenzhen), China ●●Gushu (Shenzhen), China ●Nanjing, China ●Shanghai, China ●Shenzhen, China ●Suzhou, China ●Wuzhong (Suzhou), China ●●●Zhuhai, China ●●
Ibaraki, Japan ●
Jaguariuna, Brazil ●
Juarez, MX ●●
Joo Koon Singapore ●●Kallang, Singapore ●
Manaus, Brazil ●●
Migdal Haemek, Israel ●Ofakim, Israel ●Yavne, Israel ●
Milpitas, CA ●●Morgan Hill, CA ●San Carlos, CA ●
Mukachevo, Ukraine ●
Northfield, MN ●
Penang, Malaysia ●●Port of Tanjong Pelepas (Johor), Malaysia ●Senai (Johor), Malaysia ●●Skudai (Johor), Malaysia ●
Ronneby, Sweden ●
Sarvar, Hungary ●●Tab, Hungary ●Zalaegerszeg, Hungary ●
Sorocaba, Brazil ●●
Taipei, Taiwan ●
Tczew, Poland ●●
Tianjin, China ●
Tijuana, MX ●●
Timisoara, Romania ●●
Toronto, Canada ●
Treviso, Italy ●
Valencia, CA ●
Zurich, Switzerland ●
Tempe, AZ ●
Buffalo Grove, IL ●
Manchester, CT ●
Sonderborg, Denmark ●
12
Four Primary Business Groups: FY14 Revenue Mix
Consumer Technology GroupMobile, Consumer, Computing34%
Integrated Network SolutionsTelecommunications, Networking, Server & Storage39%
Industrial & Emerging Industries Energy Management, Appliance & Lifestyle, Equipment & Automation15%
High Reliability SolutionsAerospace & Defense, Automotive, Medical12%
13
Vision is to provide 5-10% annual EPS accretion
Long-Term Model
Operating
Margin
Long-Term Model
HRS
IEI
CTG
Revenue
Growth
Double digit 5-7%
4-6%
3-4%
2-3%
Double digit
ICE* focused
Trend with marketINS
Maintaining strong cost discipline focused on driving
productivity & operating expense leverage
* Innovative, Connected and Emerging Technologies - ICE (within Consumer Technology Group - CTG)
35%
20%
20%
25%
Long-Term Portfolio
40%
Balanced portfolio leads to a sustainable
and predictable business model
HRSIEI
CTGINS
14
$9,939$10,782
$11,452$10,637 $10,136
FY10 FY11 FY12 FY13 FY14
Telecom 3G
4G
LTE
Wireless
Microwave
FEMTO
Networking / Access
Products• Optical
• Routers
• Switching
• PBX
• Enterprise
Server & Storage Enterprise
Flash
SSD
Mid-Range
High-End
FY14 Revenue Mix
~ 39% of Total Revenue
38%
37%
25%
Networking &
Access
Products
Server /
Storage
Telecom
($ mil)
Integrated Networking Solutions (INS)
• VOIP
• Video Conference
• Datacards
• MiFi Devices
15
INS Differentiation
Fast Facts:
INS
• 700+ engineers, 100 customers
• Partnerships with EVERY major player in this space
• Flextronics was either the sole-source or a strategic supply chain partner to the majority of
recent IPOs in INS
Networking / Access Products
• Industry rank #1 in IP Core/Edge & Optical Routings & Switching
• Leading position in disruptive SDN market
• Key customers: Cisco, Juniper, Alcatel-Lucent, Palo Alto Networks, Ciena
Telecom
• Industry rank #1 in Wireless/Radio Access Networks
• Dominate position in LTE with all major OEMs
• Leading position in disruptive small cell market (pico, micro)
• Key customers: Alcatel-Lucent, Ericsson, Huawei, Nokia Networks
Server & Storage
• Top 3 Position
• Dominate position in disruptive flash based technologies
• Market leader in cyber security & application control
• Key customers: EMC, Teradata, F5, Citrix, Nimble, FireEye, Infoblox
16
20+ Diversified Markets
$3,084
$3,853 $3,980$3,752 $3,806
FY10 FY11 FY12 FY13 FY14
FY14 Revenue Mix
~ 15% of Total Revenue
($ mil)
Industrial & Emerging Industries (IEI)
Industrial
Automation
Appliances
and Lifestyle
Self-Service
/ Smart
Retail
Capital
Equipment
Building
Automation
Safety &
SecurityEnergy
17
IEI New Business Wins
Industrial
Automation
Appliances
and Lifestyle
Self-Service
/ Smart
Retail
Capital
Equipment
Building
Automation
Safety &
Security
Energy
18
IEI Differentiation
Fast Facts:
• Industry ranking: Industrial #1
• Flextronics participates in 20+ diversified markets with over 250 customers
• Geographic footprint: 60 sites, 5 design R&D centers, largest footprint in North
America and Europe
• Developed leading edge solutions for industrial automation, appliances, self-service
kiosks, capital equipment, lifestyle buildings automation, smart meters, building
automation, oil and gas and water transport & treatment markets
• 17 plastics sites (2000+ injection molding machines), 10 metal forming sites, 100+
PCBA and system assembly locations
• 2013 Platform/supply chain solutions new win with floor care company $350M
• Innovation driven customer engagements leading to manufacturing
• In FY14, 10 major design wins leading to ~$350M in manufacturing revenue
• Key customers: Xerox, Teradyne, Applied Materials, Dyson
19
Automotive• Vehicle Electronics
• Connectivity
• Energy Management
~25%
~25% ~26%
~21%
~3%
Auto
Electronics
Aero/Defense
Disposable
Medical
Devices
Car
ConnectivityMedical
Equipment
FY14 Revenue Mix
~ 12% of Total Revenue
$1,437
$1,899
$2,358
$2,818
$3,257
FY10 FY11 FY12 FY13 FY14
Defense & Aerospace• Defense
• Civil Aviation
• Homeland Security
Medical• Consumer Health
• Drug Delivery
• Disposable Devices
• Medical Equipment
($ mil)
High Reliability Solutions (HRS)
20
HRS Differentiation
Fast Facts:
HRS
• Reached $800M+ quarterly revenue, surpassed $3B in FY14
• Grew revenue double-digits y/y for 13 consecutive quarters
• 600 design engineers, 145+ customers
• Acquisitions: FY12 Stellar (medical/A&D), FY13 Saturn (auto), FY14 RIWISA (medical)
• Proactive marketing across HRS industry tradeshows
Automotive
• $1.7B+ revenue business
• #1 industry ranking. Product portfolio includes connectivity, LED lighting, power electronics
• Customers are OEMs and Tier 1 suppliers
• Key customers: Ford, Nexteer, Automotive Lighting, Chrysler
• 18 automotive facilities, 12 countries, 8K+ employees
• 6 lead design centers with over 250+ engineers
• FY14 achievements: $350M+ new business awards, 6 new customers, 23 patents filed
Medical
• Reaching $1.5B in annual revenue. Diversified portfolio: drug delivery, disposables, equipment, diagnostics
• #1 manufacturing solutions provider in the medical industry
• Engagement with 17 of the top 25 medical device companies
• Flextronics produces #2 best-selling glucose meter in China
• Flextronics helped design 65+ medical products in the market today
• 16 medical locations, 15K employees worldwide, 350+ dedicated engineers
Aerospace & Defense
• Industry ranking #6, ~$100M revenue business
• AS9100C and ISO9001 registered, DMEA trusted supplier, ITAR certified, FAA regulatory
• Portfolio: defense, civil aviation, homeland security
21
46%
31%
23%
Consumer
ComputingMobile
$9,502
$11,909$11,554
$6,363
$8,910
FY10 FY11 FY12 FY13 FY14
FY14 Revenue Mix
~ 34% of Total Revenue
Mobile• Smart Phones
• Wireless Modules
• Headsets
• Portable Audio
Consumer • Game Consoles & Accessories
• Wearable Technology
• Smart Home Devices
• Home Entertainment Equipment
Computing• EMS Desktop / Notebook PCs
• Tablets
• Printers
($ mil)
Consumer Technology Group (CTG)
22
CTG Differentiation
Fast Facts:
• New go-to-market sales strategy focused on 3 key areas:
• Innovative, Connected & Emerging technologies (ICE)
• Strategic engagements
• Core partnerships
• 60+ customers
• 120+ CTG specific design engineers
• 65 factories utilized around the world
• Innovative manufacturing & technology investments for co-invention, including PIC,
mass customization capabilities and cutting edge mechanical capacity
• Flextronics has #1 position and most capabilities and expertise in Brazil
• Lab IX initiative helps engage disruptive customers
• Google Chromecast TIME’s #1 product in 2013
• Leader in Wearables Technology, significant growth with 30+ customers
• Over 75% of market share in fitness wearable bands in 2013
• Leader in Smart Home Devices, fastest growing category within ICE
23
CTG Pyramid
Core
Partnerships
Strategic
Engagements
Innovative,
Connected &
Emerging
Technologies
24
CTG: Growth Potential & Better Margin Profile
Moderate
Stable
AggressiveHigh
growth
2+%
3-4%
5+%
Core Partnerships
Strategic Engagements
Innovative, Connected & Emerging Tech.
26
The World is Changing…
Disasters
Regulations
Shortages
Competition
Logistics
Product lifecycleWage inflation
Regionalization
Supply chains are more complicated
27
Positioned to Drive Future Revenue Growth
Non-traditional business
Significant opportunities to grow
our market leading position
Strategic relationships
Partnered across leading
customers in varied industries
Innovation
Distinctly positioned as a
product innovation enabler
Partnering with
tomorrow’s disruptors
Powerful differentiation to
create future demand
28
Strong Strategic Relationships With Customers
Intense customer focus builds trust
and long-standing relationships
30 years
15 years
10 years
10 years
0 years
29
HRS Automotive: Flextronics Vehicle Electronics Solutions
Rear Compartment
• Center high mounted
stop light (CHMSL)
• Rear tail lamp PCBA
• LED Tail
lamp/controller
• Power deck lift gate
• Rear camera
• Fuel pump controller
Doors
• Door control module – windows,
mirrors, locks
• Power sliding door module
• “Smart” mirror electronics
Seats
• Power seat module
Front Lighting
• Front lamp PCBA
• Light control module
Engine & Powertrain
• Recuperation module
• DC/DC converter
• Electric Power steering controller
• High precision solenoid
• Wiring harness
• Battery cable
• Quasi diode/electronic relay
• Cooling fan controller
Instrument Panel
• Digital LCD gauge
• LED/RGB ambient lighting
Remote systems
• Remote start antenna
• Key fob & keyless entry
Overhead Systems
• Dome lamp
• Overhead console
• Sunroof controller
Infotainment & Connectivity
• Rear seat entertainment module
• Media interface module
• Sound & connect module
• Head unit
• Audio system
30
Medical Technology
Diabetes Blood glucose meters
Insulin delivery systems and tubing sets
Dialysis disposables and equipment
Cardiac Diagnostic catheters
Implantable heart monitoring systems
Cardiac rhythm monitoring
RespiratoryInhalers & Nebulizers
C-Pap
BrainNeuro-stimulation
Transdermal patch for migraines
OrthopedicsBlades and cutters
DiagnosticsBlood analyzers
Imaging
DermatologyWound management systems
Aesthetic care devices
MobilityHospital beds
Mobility systems
HearingCochlear implants
DentalHigh speed headpiece
PodiatricFoot ulcer system
Gel cushions
Hospital SuppliesIV pumps and tubing sets
Syringes
Blood collection devices
General Surgery Insufflation sets
Gastic bands
Surgical packs
31
Smart Watches
Smart Glasses
Notification Sensors
Smart Fabrics
Smart Fitness Wristbands
Super Fitness Watches
Fitness Shoe Sensors
Smart Socks
Flextronics Capabilities:• Micro-electronics encapsulation
(flex circuits)
• Sensor Integration
• Optics (image capture)
• Smart Watch Packaging (computing/mechanics)
• Bendable / Stretchable Electronics
• Waterproofing
• Customization / Personalization Tech.
Wearable Technology
A New Market for Flextronics
Sectors We Support:• Sport & Fitness
• Wellness
• Image Capture
• Lifestyle Computing
• Entertainment
• Apparel & Fashion
• Personal Data Management
32
Connected Home
Wearables /
Fitness Trackers
Energy Management /
Thermostats
Streaming
Video
and
IPTV
Smart
Home
Controllers
Streaming
Audio
Cloud
Analytics
Smart Sensors
and
Lighting Controls
33
Open Innovation Platform Strategy
Leverage validated technology building blocks and partner ecosystem
Sensors & Actuators
Open Innovation Platform
Lab IX/ Startups
InternalOEMs University Research Institutes
Government & Public
Innovation Services
ComputingBattery & Power
Mechanicals & Plastics
Smart Software
Human Machine Interface
Wireless & Connectivity
Value Engineering
Semiconductors Flexible Technologies
Aerospace & Defense
Automotive EnergyIndustrial Automation
Fitness & Medical
Consumer Electronics
Communications & Networking
Server & Storage
Technology Partners
Centers of Excellence
Markets & Products
34
The Success With Disruptors Is Evidenced In IPOs
2012 2013 2014
IPO Date: April 2012
Product: Network
Control
IPO Date: July 2012
Product: Security Appliances
Flextronics Exclusive
IPO Date: May 2013
Product: Optical
Products & SDN
Flextronics Exclusive
IPO Date: Sept 2013
Product: Security Appliances
Flextronics Exclusive
IPO Date: Sept 2013
Product: SSD
Enterprise Storage
IPO Date: Dec 2013
Product: Converged Storage
Flextronics Exclusive
IPO Date: Nov 2012
Product: Wireless
Networking
IPO Date: Nov 2009
Product: Security Appliances
2010
IPO Date: June 2014
Product: SDN Solutions
(Gigabit Ethernet
Switches)
35
Automation
165+ projects in process
24 inventions disclosure in process
3 patent applications in process
1 granted patent application
150+ customers served
600+ projects in 4 years
36
Silicon Valley’s Customer Innovation CenterProduct Concept > Design & Engineering > Rapid Prototyping > Product Stabilization > Volume Production > Repair & Refurbish
Innovation Services that Enable Disruption
Manufacturing
• Scalable
Manufacturing
• Procurement &
Sourcing
New Product
Introduction
• Prototype to
Product Launch
• 3D Printing
(plastic)
Confidential
Center
• Private &
Secure
Manufacturing
Room
Advanced
Engineering &
Robotics Labs
• Value Engineering
Services
• Manufacturing
Technology
Innovation
Lab IX
• Startup
Accelerator
• Business
Scaling
Resources
Global Services
• Forward &
Reverse
Logistics
• Vendor Managed
Inventory
Interconnect
Technology Center
• Multek (PCBs,
Flexible & Rigid)
• Advanced Printed
Circuits
• Integrated Design
Capabilities
Innovation Labs &
Design Center
• Technology Innovation &
Engineering
• Design for ‘X’ Services
• 3D Printing (metal)
Failure Analysis
Labs & Mechanicals
• Materials
Characterization
• Sheet Metal
Manufacturing
System
Integration
• Configure to
Order
• Build to Order
WELCOME
CENTER
38
Elementum: Real-time Solutions Improve Decision Making
Mobile software for end-to-end supply chain management
The Problem
• Poor visibility into the state of operations
• Unclear which suppliers are at risk and when
• Don’t know which shipments are late until they don’t arrive
• It takes way too long to get commitment on new or changed orders from partners
The Solution
• Perspective: Real-time visibility
• Exposure: Risk management
• Transport: Shipment tracking & carrier management
• Fulfillment: Order collaboration
39
Elementum: Key Facts• Flextronics began incubating Elementum in 2012
• Elementum is a majority-owned subsidiary of Flextronics
• Flextronics owns a majority of the outstanding equity and controls the board of directors
• Consolidated financials with Flextronics
• Elementum has over $60M in total funding
• Outside investors:
• Lightspeed Venture Partners
• Dave Duffield (co-founder & co-CEO, Workday), Aaron Levie (co-founder & CEO, Box), Jerry Yang (co-
founder, Yahoo & founding partner, AME Cloud Ventures), Mike Frandsen (VP of products, Workday), Jim
Davidson (co-founder, Silver Lake Partners)
• Board of Directors:
• Mike McNamara (CEO, Flextronics), Nader Mikhail (founder & CEO, Elementum), Chris Schaepe (founder
& partner, Lightspeed Venture Partners), Jim Davidson (co-founder, Silver Lake Partners), Ray Bingham
(Chairman of the Board, Flextronics and former CEO, Cadence)
• Advisory Board:
• Dave Duffield (co-founder & co-CEO, Workday), David Dibble (former EVP, Service Engineering &
Operations, Yahoo), David Henke (former SVP, Engineering & Operations, LinkedIn), Aneel Bhusri (co-
founder, chairman and co-CEO, Workday)
40
Made in the USA by Flextronics
Flextronics provides customers with competitive US production capabilities based on our
unique ability to scale with speed and flexibility
Scale, Scope & Speed• Number 1 electronics manufacturer in North
America
• ~7M sq. ft. spread throughout 19 locations
• ~11K employees with over 140 self identified
veterans
• Manufacture around $3B worth of complex
electronics extending over 7K SKUs
• Over 10 major market segments serving over
190 unique clients
• Product Innovation Centers located in
Milpitas, CA and Austin, TX
• Proven expertise in ramping from NPI to full
production in 4 months
• Complete supply chain sourcing and
materials management
CommunicationsNetworking &
Optical
Aerospace &
Defense
Energy
Mobile/Consumer Medical
Automotive
Industrial
42
$715M
$855M
$622M
$463M$416M
$680M $701M
$505M
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 YTD FY16E FY17E
Fundamentally Structured for Free Cash Flow Generation
$3 Billion Target
$3 - $4 Billion
Generating strong sustainable free cash flow to support our growth
43
Solid Capital Structure
$1,707
$1,500
$596 $481 $500 $500
Liquidity 2015 2016 2017 2018 2019 2020 2021 2022 2023
Debt Maturities ($M) (Calendar Year)
Cash
Revolver
Total
Liquidity
$3,207
Key characteristics:
No near-term
maturities
Low financing cost
of ~3% at current
LIBOR rates
Near record levels
of liquidity
Improving credit
metricsDebt / EBITDA (LTM): 1.7x
Term Loans LIBOR + 150 to 162.5bps
4.625% Notes 5% Notes
44
Strategic M&A Investments
Leading
microelectronics
supplier
Leading
automotive
supplier
Leading high
precision plastics
supplier
Target
capabilities
Strategic
customers
Longer
product
lifecycles
EPS
accretive
Barriers to
entry
Higher
margins
Apr
2012
Dec
2012
Nov
2013
2012 2014
Key Criteria:
45
Committed to returning over 50% of free cash flow to shareholders
Share Repurchase from FY11 to Q3 FY15
Last 4+ years, we have repurchased …
~ 286 Million shares
~ $2.0 Billion in stock
… And reduced net shares outstanding by ~30%
$400M
$510M
$322M
$475M
$291M
757684
639591 573
FY11 FY12 FY13 FY14 FY15 YTD
Shares Outstanding
65M
shares
repurchased
82M
shares
repurchased
52M
shares
repurchased
60M
shares
repurchased
28M
shares
repurchased
47
Q3 FY2015 Highlights and Key Trends
• Sales of $7.0B exceeded guidance of $6.4-$6.8B
• All 4 business groups exceeded expectations
• Repurchased ~8M shares for $84M
• LTM repurchased 40M shares for $403M
• 7 consecutive quarters of operating margin % improvement
• $207M of operating profit dollars exceeded guidance range
• 15% year-over-year earnings growth
Steady Execution
Continued Profit
Improvements
Consistent Return of
Value to Shareholders
48
Trended Quarterly Income Statement Highlights
7,183
6,724 6,643
6,529
7,025
5.6%
5.8% 5.8% 5.8% 5.8%
Dec-13 Mar-14 Jun-14 Sep-14 Dec-14
Adj. Gross Margin
Return on Invested Capital(ROIC %)
Adjusted Operating Income ($ in millions)
19.5%
22.1%22.8% 23.3%
24.1%
Dec-13 Mar-14 Jun-14 Sep-14 Dec-14
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
187182 183 183
2072.6%
2.7% 2.8% 2.8% 2.9%
Dec-13 Mar-14 Jun-14 Sep-14 Dec-14
% Revenue
Adjusted SG&A($ in millions)
213
205
199196
204
Dec-13 Mar-14 Jun-14 Sep-14 Dec-14
Revenue & Adjusted Gross Margin($ in millions)
49
Revenue by Business Group
($ in millions) Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15E
Business Group $ $ $ $ $ Q/Q % Y/Y % Outlook (Q/Q)
INS $2,598 $2,418 $2,503 $2,409 $2,435 1% -6% Down high single digit
CTG 2,829 2,436 2,160 2,142 2,570 20% -9% Down ~20% - 25%
IEI 933 1,027 1,134 1,103 1,113 1% 19% Stable
HRS 823 843 846 875 907 4% 10% Stable
Total Revenue $7,183 $6,724 $6,643 $6,529 $7,025 8% -2%
Dec 2013
36%
13%12%
39%
HRS IEI
CTG INS
Dec 2014
35%
16%13%
36%
HRS IEI
CTG INS
50
611
665
FY 2013 FY 2014
$0.84
$0.89
FY 2013 FY 2014
23,569
26,109
FY 2013 FY 2014
1,387
1,505
FY 2013 FY 2014
FY 2014 Income Statement Highlights
Please refer to the Investor Relations section of our website which contain the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures
Adjusted Gross Profit($ in millions)
Revenue($ in millions)
Adjusted Earnings Per Share (EPS)
Adjusted Operating Income ($ in millions)
+11% +9%
+9% +6%
* Reflects a $0.11 EPS benefit due to the $74M gain from Workday warrants
*
51
FY 2014 Summary: Financial Principles Remain Intact
11% Year-over-
year growth
* Excluding the $0.11 EPS benefit in FY13 due to $74M gain from Workday warrants
Operating profit
increased by
$54M
Adjusted EPS
jumped up 22%*
Generated
$1.2B of
operating cash
flow & $701M of
free cash flow
Refinanced debt
resulting in no
near-term
maturities
Revenue
Growth
Operating
Profit
Expansion
EPS
Accretion
Cash Flow
Generation
Capital
Structure
Strength
($ M) ($ M) ($ M)EPS
52
High-Level Summary Overview: FY13 – FY15
FY14: Investment
• Heavy investment in
capability, new programs and
revenue growth
• Start-up costs significant all
year, but rapidly evaporating
• Strong FCF and earnings
progress
FY15: Stability
• Focus on operating efficiency
• Continuous operating profit
and margin expansion
• Continued strong FCF and
shareholder return
FY13: Platform
• Real-time information
• End-to-end services
• Physical infrastructure