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Sketch-to-Scale Solutions Investor Presentation March 2018
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Sketch-to-Scale Solutions...Financial Performance Underscores Successful Evolution 611 665 751 792 815 FY13 FY14 FY15 FY16 FY17 Sustainable 0.84 0.89 1.14 1.17 FY13 FY14 FY15 FY16

Apr 25, 2020

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Page 1: Sketch-to-Scale Solutions...Financial Performance Underscores Successful Evolution 611 665 751 792 815 FY13 FY14 FY15 FY16 FY17 Sustainable 0.84 0.89 1.14 1.17 FY13 FY14 FY15 FY16

Sketch-to-Scale Solutions™

Investor PresentationMarch 2018

Page 2: Sketch-to-Scale Solutions...Financial Performance Underscores Successful Evolution 611 665 751 792 815 FY13 FY14 FY15 FY16 FY17 Sustainable 0.84 0.89 1.14 1.17 FY13 FY14 FY15 FY16

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.flex.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 Compute

Cloud Data Center, Communications, Networking, Server & Storage.

Consumer Technologies Group

Connected Living, Wearables, Gaming, AR/VR, Mobile Devices, Footwear and Clothing, Supply Chain Solutions for PCs, Tablets, and Printers.

Industrial & Emerging Industries

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

High Reliability Solutions

Medical: Consumer Health, Digital Health, Disposables, Drug Delivery, Diagnostics, Life Sciences & Imaging Equipment.

Automotive: Vehicle Electronics, Connectivity, Clean Technologies.

HRS IEI CEC CTG

1

Page 3: Sketch-to-Scale Solutions...Financial Performance Underscores Successful Evolution 611 665 751 792 815 FY13 FY14 FY15 FY16 FY17 Sustainable 0.84 0.89 1.14 1.17 FY13 FY14 FY15 FY16

Table of Contents

Richer Business MixSketch-to-ScaleTMWhy Flex?Flex is Ready /

Strategically Positionedto Win

Financial Update

Why Invest in Flex?

Strong Free Cash Flow

Shareholder Return

ROIC

Portfolio Evolution

2020 Revenue & Profit Growth

Profit Growth & Earnings Power

Earnings Leverage

Targeted M&A

Customer Diversification

Balanced Capital Structure

3-4

5

6

7

8

9

10-11

12

13

14

15

The World Has Changed

The Flex Advantage

Flex Platform

Megatrends

12 Industries

100+ Locations Globally

Centers of Excellence

Investing in Capabilities

Elementum

Flex Pulse

Reinventing Construction

Nike Partnership

17

18

19

20

22

23

24

25

26

27

28

29

Innovation From Sketch-To-ScaleTM

% of Sketch-To-ScaleTM

Revenue

31

32

Consumer Technologies Group (CTG)

Communications & Enterprise Compute (CEC)

Industrial & Emerging Industries (IEI)

High Reliability Solutions (HRS)

34-36

37-41

42-44

45-52

Latest Financial Update

IR Contact Info

54-58

59

2

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Why Invest in Flex?

Evolving our portfolio to provide more predictable earnings, higher margins and meaningful earnings power through structural mix change and increased Sketch-to-ScaleTM business

Strong sustainable free cash flow

Unwavering shareholder return commitment supported by significant buybacks over time

1

2

3

3

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Financial Performance Underscores Successful Evolution

611

665

751792

815

FY13 FY14 FY15 FY16 FY17

Sustainable

0.84 0.89

1.14 1.17

FY13 FY14 FY15 FY16 FY17

1.08

Profitable

Adjusted EPS($)

Resilient

Free Cash Flow Generated($M)

Consistent

Shares Repurchased($M)

680701

554

639660

FY13 FY14 FY15 FY16 FY17

322

475

416 420

350

FY13 FY14 FY15 FY16 FY17

8% CAGR 9% CAGR $3.2B FCF generated $2.0B repurchased

Adjusted Operating Profit($M)

(FY13 – 17) (FY13 – 17)(FY13 – 17)(FY13 –17)

4

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Strong Sustainable Free Cash Flow

680 701

554

639 660

FY13 FY14 FY15 FY16 FY17

Free Cash Flow($M)

$3.2Bfor FY13 to FY17

Key Cash Flow Drivers» Earnings expansion» Working capital sustained at 6-8% of sales» Disciplined capex investment modestly above

depreciation levels

~90%Free Cash Flow

Conversion

$3.5B+Operating Cash Flow

$2B+Free

Cash Flow

Cash Flow Generation Targets FY18–FY20

5

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684 639

591 563 545 531

322

475 416 420

350

FY13 FY14 FY15 FY16 FY17

shares outstanding (millions)

Unwavering Shareholder Return Commitment

Share Repurchase($M)

Committed to returning over 50% of annual free cash flow to shareholders

Since FY11, we have repurchased…

~35%of shares

outstanding

~$3.0Bin stock

~364Mshares

Since FY13, we have returned...

62% of free cash flow to shareholders

6

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Guided by our Return on Invested Capital

Return on Invested Capital1(ROIC %)

» Improving earnings efficiency

» Disciplined capital deployment

» 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.

1922

2422

20

FY13 FY14 FY15 FY16 FY17

22%Avg.

7

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Portfolio Evolution to Higher Margin Business

$4.5BHRS + IEI

revenue

$9.1BHRS + IEI

revenue

Driving predicable earnings and margin expansion

FY10HRS6%

IEI13%

CTG42%

CEC39%

19% FY17

HRS17%

IEI21%

CTG27%

CEC35%

38% FY20EHRS

~22%

IEI~23%

CTG~28%

CEC~27%

~45%

~$13.0BHRS + IEI

revenue

~2years

~4 years

~6 years

Est Avg Product Life Cycle

8

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Structured to Deliver Profitable Growth

Annual RevenueGrowth Target Comments

10%+ » Technical offering and leadership expertise enables growth» Leveraging innovation and sketch-to-scale capabilities

10%+ » Momentum from record bookings across its broad portfolio» Positioned to penetrate massive TAM

3% to 5% » Structurally enhancing margin and earnings growth» Transformational new partnerships and new markets

-5% to 0% » Well positioned for next generation technologies» Disciplined management of legacy business

HRS

IEI

CTG

CEC

Targeted 2020 revenue growth model

9

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FY17 Adjusted Operating

Target Adjusted Operating Margin

Profit($M)

Margin Range

$334 8.1% 6–9%

$180 3.6% 4–6%

$180 2.8% 2–4%

$229 2.7% 2.5–3.5%Corporateservices and other2

($108)

$815 3.4%

Positioned for Operating Profit and Margin Expansion

HRSIEI

CTGCEC

Targeted Adjusted Operating Profit Mix

Targeted 2020 delivers profit growth

FY20E

HRS

IEI

CTG

CEC

~60%

10

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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 CAGRSubstantial Earnings Leverage

3x4x

Revenue mix

CEC

HRSIEI

CTG

FY20E

~45%

CEC CTG IEI HRS

~40%Total Flex

11

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$1.17

~$0.26

~$0.22

~$0.19

~$0.02 ~$0.02 ~$0.12 ~$0.20

$1.80

FY16 FY17 HRS CTG IEI CEC CorporateInvestments

ShareRepurchase

Interest andTaxes

FY20E

$1.14

The Path to Delivering Substantial Earnings Leverage

» Sketch-to-Scale penetration» Leveraging investments» Operational execution

12%CAGR

$2.15+

Record EPS

12

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1 Reflects M&A transactions completed from FY13 to FY17 (excludes certain OEM asset acquisitions)

Targeted M&A Accelerates Our Portfolio Evolution

11<$25M

Target capabilities

Strategic customers

Longer product lifecycles

EPS accretive

Barriers to entry

Higher margins

Key Selection Criteria

# of Acquisitions (FY13–FY17) Based on purchase price*

4>$100M

% of M&A Spend By Business Group*

61%

HRS 24%

IEI

15%

CTG~$1.5B

M&A

Expanding longer product lifecycle businesses and Sketch-to-ScaleTM capabilities

2$25-$100M

*Reflects M&A transactions completed from FY13 to FY17 (excludes certain OEM asset acquisitions).13

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Improving Customer Diversification

10%+ Customers

FY07 FY12 FY17

Top 10 Customers as % of Total Revenue

64%

55%

43%

No 10%+ customer

Q3 FY18 was 8th straight quarter with no 10%+ customer

14

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500

692

500

600

CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 CY26

58119

490

119

Balanced Capital Structure

Investment Grade RatedMoody’s | S&P | Fitch

Debt Maturities ($M) Balances as of December 31, 2017

Term Loan

Notes

» No near-term maturities» Low average cost of debt: ~3.7%» Ample liquidity of $3.0B

» $1.75B revolver + $1.3B cash

15

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The World Has Changed… Flex is Ready

Page 18: Sketch-to-Scale Solutions...Financial Performance Underscores Successful Evolution 611 665 751 792 815 FY13 FY14 FY15 FY16 FY17 Sustainable 0.84 0.89 1.14 1.17 FY13 FY14 FY15 FY16

Electronic Manufacturing

Services

Worldwide Scale and Labor Arbitrage

Time

Contract Manufacturing

Asset Light and Lower Cost

Our Industry Has Changed -- We Have Evolved Our Model

Cost Based Discussion

Director of Procurement

3-6 months lead-time

»

Sketch-to-ScaleTM

Solutions and co-innovation

Revenue/Strategy Discussion

C-level Executive

18-24 months lead-time

17

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Flex is Ready… The Flex Advantage

$24Brevenue

50Msq. ft. of

manufacturing & services

space

200,000employees

100sites in over 30 countries

3,000design

engineers

18

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Capabilities Built for the Future

The Flex Platform

Our company innovates across three dimensions

19

Page 21: Sketch-to-Scale Solutions...Financial Performance Underscores Successful Evolution 611 665 751 792 815 FY13 FY14 FY15 FY16 FY17 Sustainable 0.84 0.89 1.14 1.17 FY13 FY14 FY15 FY16

Yielding a Massive Expansion of TAM

Artificial Intelligence (AI) **

Digital Health

Smart Cities *

Autonomous/ Connected Cars

Cloud Data Center

Augmented Reality/ Virtual Reality (AR/VR) **

5G/Telco Cloud

Intelligent AssetTracking

Industrial Automation

Connected Living

2015-2020 data points ($B), CAGR

Source: Gartner, IDC,IFR, Markets & Markets, GMI Insights, Goldman Sachs, Autodesk, Flex Internal Estimates (1) Represents 2016 estimated figured(2) Overlaps with other categories including connected living an autonomous vehicles

246392

10%

4

3554%

8

4756%

32 61

14%

10

2520%

65

17622%

50

11919%

3

3884%

1

1282%

3676

16%

Source: Gartner, IDC,IFR, Markets & Markets, GMI Insights, Goldman Sachs, Autodesk, Flex Internal Estimates *Overlaps with other categories including connected living an autonomous vehicles.**Represents 2016 estimated figure.

20

Page 22: Sketch-to-Scale Solutions...Financial Performance Underscores Successful Evolution 611 665 751 792 815 FY13 FY14 FY15 FY16 FY17 Sustainable 0.84 0.89 1.14 1.17 FY13 FY14 FY15 FY16

Strategically Positioned to Win

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Operating at Scale Across 12 Industries

Medical

$2B

Automotive

$3B

Industrial

$1B

Home Appliances

$1B

CapitalEquipment

$1B

Energy

$2B

Telecom

$3B

EnterpriseCompute

$2B

Wearables

$1B

ConnectedLiving

$1B

Mobile

$2B

Networking

$3B

Revenue

22

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Purposefully Positioned in 100+ Sites and 30 Countries

Jaguariuna, Brazil ●Sorocaba, Brazil ●●

Manaus, Brazil ●●

Milpitas, CA ●●●●San Jose, CA

San Francisco, CA ●

Austin, TX ●●●●Plano, TX ●Irving, TX ●

Tempe, AZ ●

Tijuana, MX ●●Juarez, MX ●●●Reynosa, MX ●San Luis, MX ●

Overland Park, KS ●Coopersville, MI ●●

Farmington Hills, MI ●Buffalo Grove, IL ●

Northfield, MN ●

Morrisville, NC ●●Columbia, SC ●Atlanta, GA ●Memphis, TN ●Louisville, KY ●

Boston, MA ●Manchester, CT ●

Cork, Ireland ●Limerick, Ireland ●●

Manorhamilton, Ireland ●

Venray, Netherlands ●Woerden, Netherlands ●

Hoogeveen, Netherlands ●

Budapest, Hungary ●Sarvar, Hungary ●●Tab, Hungary ●Zalaegerszeg, Hungary ●Lodz, Poland ●Tczew, Poland ●●

Migdal Ha-Emek, Israel ●●Ofakim, Israel ●Yavne, Israel ●Haifa, Israel ●

Chengdu, China ●●

Gurgaon, India ●Mumbai, India ●

Pune, India ●Bangalore, India ●Chennai, India ●●

Penang, Malaysia ●●Port of Tanjong Pelepas, Johor , Malaysia ●●

Senai, Johor, Malaysia ●●Skudai, Johor, Malaysia ●●

Ibaraki, Japan ●●

Nanjing, China ●Shanghai, China ●●Suzhou, China ●Wuzhong, China ●●

Shenzhen, China ●●●Huangtian, China ●Shiyan, China ●Gushu, China ●●Fuyong, China ●Hong Kong, China ●Dongguan, China ●Zhuhai, China ●●

Singapore ●●●Batam, Indonesia ●

Tianjin, China ●

Pamplona, Spain ●

Milan, Italy ●●Treviso, Italy ●Trieste, Italy ●

Mukachevo, Ukraine ●

Timisoara, Romania ●●

Aguascalientes, MX ●●Guadalajara, MX ●●●

Global Services

Design

Manufacturing

Mechanicals

Burlington, Canada ●Toronto, Canada ●Ottawa, Canada ●

New York Innovation Center

Ronneby, Sweden ●Linkoping, Sweden ●

Corlu, Turkey ●Gebze, Turkey ●

Warrington, UK ●

Sonderborg, Denmark ●Stuttgart, Germany ●

Hägglingen, Switzerland ●Pardubice, Czech Republic ●

Brno, Czech Republic ●Althofen, Austria ●●

Vienna, Austria

Anyang, South Korea ●

23

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Developing Solutions to Accelerate InnovationComponents and platform solutions with differentiated performance

Sewing & Textile

Automation & Robotics

Centers of Competence

Roll to Roll

Micro-electronics

=+

Centers of Excellence

Connectivity

Flexible Technology & Miniaturization

Smart software

Sensors & Actuators

Security & Computing

Human Machine Interface

Battery & Power

Wearable sensor patch

Notification module

Component Solutions

24

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Innovation and R&D Investments($M)

121

93

49

39

39

FY17

FY16

FY15

FY14

FY13

2014

ElementumSilicon Valley

Innovation CenterCenters of Excellence

Innovation Centers Expansion Digital Health

2017• • • • •

Sketch-to-Scale

•Innovation labs

Investing in Capabilities Built for the Future

25

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Real-time Solutions to Improve Decision Making

» Incubated in 2012 by Flex

» Strategic engagement partner for Flex

Powered by Elementum: mobile software for end-to-end supply chain management

26

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Digital Visibility Through Flex Pulse

50+Elementum and enterprise-wide

applications

8worldwide

Pulse Centers

500+customer

campus visits

5,000+Flex business

users

27

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Reinventing the Construction Industry

(McKinsey, 2016) Real gross value added per hour worked by persons engaged, Indexed 1995 = 100

Global productivity growth

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Construction

Total economy

Manufacturing200

190

180

170

160

150

140

130

120

110

100

0

We will modernize the supply chain for the Construction Industry

13% of the world’s GDP

Cloud-based 5D Enterprise Platform

28

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Transformational Nike Partnership

Meaningful RevenueInvestment losses

Top 10 CustomerCTG + margins

$2 Billion+ HRS+ margins

Massive TAM expansion | Decade-long partnership | Modernizing the footwear industry

Invest and Create Rapid Ramp Industry Expansion

FY18 FY19 FY20 and Beyond

Scaling Solutions

$1 Billion+ HRS-like margins

29

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Sketch-to-ScaleTM

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Sketch-to-ScaleTM Solutions Bring Your Product to Life

Intellectual Property ProtectionSafeguard your developments with the highest levels of security to ensure that your project remains confidential and is protected at every stage.

Concept DesignConceptualize, design, and test ideas through co-innovation.

Additive ManufacturingSix Sigma operations in 100+ cutting-edge facilities utilizing state-of-the-art automation, advanced robotics, virtual and augmented reality and software controls.

Advanced EngineeringAccess core technologiesand product / system design engineers. Utilize testing services and accredited labs for ISO compliance.

Global ExpansionGlobal presence and regional trade regulations, taxes and duties expertise to help efficiently expand and compete.

Active Supply Chain, Distribution & LogisticsA global supply chain demands real-time information about development, fulfillment and forward and reverse logistics.

New Product IntroductionManufacturing, supply chain and technology expertise and visibility to help identify opportunities and foresee challenges.

Prototype CreationRapidly prototype to shorten the distance to a viable, quality product.

31

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3%

9%

5%

18%

CEC CTG IEI HRS

7%

12%

27% 26%

33%

CEC CTG IEI HRS

Sketch-to-ScaleTM Revenue is Rapidly Accelerating

FY 2013

CEC CTG IEI HRS

FY 2020E

40%

FY 2017

23%

25–35%

35–45%

32

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Richer Business Mix

Page 35: Sketch-to-Scale Solutions...Financial Performance Underscores Successful Evolution 611 665 751 792 815 FY13 FY14 FY15 FY16 FY17 Sustainable 0.84 0.89 1.14 1.17 FY13 FY14 FY15 FY16

Consumer Technologies Group (CTG)

Revenue ($M)

1,314

1,665 1,849

1,535 1,512 1,755

2,057

Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18

FY17 Updates» $1B in new bookings

» 50 new accounts

» 195 new programs awarded

» $1.4B increase YoY revenue for Connected Home and Audio

» 27% of revenue is Sketch-to-ScaleTM

» BOSE partnership announced

» 2 new Audio factories

34

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Increasing Development of Growth Vectors

AR/VR» Gaming» Entertainment» Education» Customer Service

Fashion» Footwear» Connected Jewelry» Smart Apparel» Smart Accessories

Connected Home» Voice-Controlled Assistants» Home Gateways» Media Devices» Connected Audio

Wearables» Headsets and Headphones» Smart Watches» Hearables» Bio-authentication

Consumer Health» Biometric Monitors» Telehealth» Home Health Monitoring

Consumer AI» Smart Robots» Smart Toys» Automotive After-Market» Drones

35

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Higher Margins and Operating Profit

Operating Profit

Customers Added

Revenue Growth

6%+ 404%

<3% 4-14%

4%* 69%STRATEGIC

CORE

ICE

FY17 Achieved

*Not including Nike investment36

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Communications and Enterprise Compute (CEC)

FY17 Updates» Revenue $8.4B

− Cloud Data Center: Up 14% YoY − Communications: Up 1% YoY via Optical − Networking: Down -2%− Traditional Server, Storage: Down -35%

» Strong capital efficiency

» Sketch-to-ScaleTM growth 21% YoY > $1B

» $2B in bookings and 18 new customers

9,191 8,842

8,383

5,853

FY15 FY16 FY17 FY18*

Revenue ($M)

*FY18 YTD figures

37

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Connected Things / Connected Intelligence

Smart Cities

M2M and Robotics

IEI

Digital Health

Autonomous Driving

HRS

Born in the Cloud Providers Telco Cloud Transformation Enterprise Hybrid Cloud

Mobile Device

Connected Living

Augmented Reality

CTG

Cloud and Edge Computing

5G

CEC

38

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Creating a Smart and Connected World

Cellular Microwave & RF3G/4G Radio ModulesPTP Backhaul Units

IoT and Edge ComputingIoT Edge Computing PlatformsAutomotive Network Switch Modules

Edge Data Center & Central OfficeCRAN Optical SystemsEdge Router ModulesOpen Standard Mechanical RacksOpen19 Compute & Networking ModulesToR Switch Units

Cloud Data CenterCustom Compute Motherboards

Open Standard Mechanical RacksOCP Storage Systems

Storage Appliances

Enterprise Data Center2U JBOD Storage Systems

All Flash Array NVMe Storage Systems2U & 4U Converged Appliances

Host Bus Adapters & RAID ControllersCustom Switch Blades

SOHO

39

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Sketch-to-ScaleTM Accelerates Sketch-to-ScaleTM 12% of Revenue FY17 to ~30% FY20

FY15 FY17 FY20

ProductPlatforms

Core R&DEngineers

SoftwareEngineers

12 27 60

293 458 800

60 98 200

40

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12%

88%

FY17

~30%

~70%

FY20E

Flex Portfolio Evolution via Sketch-to-ScaleTM

Portfolio Evolution

Operating Profit Range

Revenue Projections

Sketch-to-ScaleTM: Communications, Converged Enterprise and Cloud

Traditional OEM

FY17 FY18E FY19E FY20E

Growth Inflection Point

$8.4B

3.5%2.5%

41

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Industrial and Emerging Industries (IEI)

FY17 Updates» $2B+ record bookings

» 26% Sketch-to-ScaleTM

revenue

» 6.1% OP growth from FY14 to FY17

» 72+ new logos

3.8

4.5 4.75.0

4.3

FY14 FY15 FY16 FY17 FY18*

Revenue($B)

9.5%CAGR

6.1%Growth

127 132

158

180168

FY14 FY15 FY16 FY17 FY18*

OP($M)

12.3%CAGR

3.6%OP%

*FY18 YTD figures

42

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IEI Key Markets

LightingSolutions

EnergySolutions

Lifestyle and Appliances

Capital Equipment

$540BTAM

$55BTAM

$500BTAM

$505BTAM

Source: TAM market size for 2020 based on internal research

25+active accounts

$150Mbookings

20+new logos

85 active accounts

$250Mbookings

12new logos

62active accounts

~$750Mbookings

30new logos

46active accounts

~$1.1Bbookings

21new logos

43

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Residential PowerPlaySolar Panel

Water Meter

PowerplayHome Automation Hub PowerPlay

Inverter

PowerPlayHome Energy Storage

Electric Vehicle Charging Station

NX Fusion Plus™Solar + Energy Storage

NX Horizon™Solar Tracker

Solar Panel

Load ControlSwitches

Switching Gear

Volt – VARControl

Energy Storage Platform

Utility & Distributed Generation

Smart Grid

Commercial & Industrial

Electric Meter

• TrueCapture™ Power Plant Optimization

• Digital O&M™• Global Asset

Monitoring

PowerPlayEnergy Management Hub

Flex Energy Solutions

44

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High Reliability Solutions (HRS)

FY17 Updates

» Thoughtfully positioned across the important megatrends

» Powered by deep industry expertise

» Unique competitive position created

» Long term structural growth is intact

3,557

3,899

4,149

3,517

FY15 FY16 FY17 FY18*

228

295 334

284

FY15 FY16 FY17 FY18*

6.4

7.68.1 8.1

FY15 FY16 FY17 FY18*

Revenue($M)

OP($M)

OP(%)

*FY18 YTD figures

45

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Increasing The Auto Sketch-to-Scale Portfolio

Autonomous Connectivity Clean Tech Vehicle ElectrificationWing cameras Server compute

podsInnovative HMI Wearables Smart sensors AGS actuators Battery cables Wireless

chargingAmbient lighting

Smart textiles / Floor mats

ADAS modules Video radar decision units

Cloud services V2X modules Active surfaces DC-DC converters

Energy recuperation

Mirror actuators Lift gates Projection lighting

Sensor fusion boxes

Smart gatewaymodules

Infotainment and displays

Interior cameras

Solenoids Wire harnesses Overhead consoles

Dome lights

46

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Levers of Automotive Growth

98

180

450 500

FY11 FY14 FY17 FY18E

# of vehicle models $ content per vehicle

43

88

118 134

148

185

FY11 FY14 FY17 FY18E FY19E FY20E

47

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Continuously Driving Content in Vehicles

Rear CompartmentRear Tail Lamp PCBAs

LED Tail Lamp Controllers

DoorsMotion Control

Modules

SeatsPower Seat Modules

Engine & PowertrainRecuperation Modules

DC/DC ConvertersHigh Precision Solenoids (Engine & Transmission)

Wiring Harnesses (Al & Cu)Battery Cables

Specialized Harnesses (incl. FPC & AL)

Front EndFront Lamp PCBAsLight Control ModulesActive Grill Shutter Actuators

Instrument PanelDigital LCD GaugesLED/RGB Ambient Lighting

Overhead SystemsOverhead ConsolesDome LampsSunroof Controllers

Connectivity/InfotainmentConnectivity & Media ModulesMedia Device Interface ModulesRear Seat Entertainment ModulesVehicle System Interface ModulesHead Units

Mirror ActuatorsGlass

Power-folding

48

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$83M

$1.0B

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

Sustaining Double Digit Automotive Growth

+35%11 yearCAGR

>10%3-yearCAGR

$2.3B

Revenue

49

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Medical Solutions and Technology Portfolio

2011

Blood Glucose Meter

Disposables Diagnostics

2013

Drug Delivery devices

Implantables Patient mobility Infusion sets Surgical Instruments

2016

Software solutions

CGM Ophthalmology Imaging Orthopedics Digital health Combination drug delivery

2017

50

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Expanding Medical OfferingsNeuro-stimulationTumor Treating FieldsPain Management

OrthopedicsAircasts

ProstheticsJoint Replacement

Surgical Implants

Laboratory DiagnosticsPoint of Care

Immunoassay Machines

MobilityHospital Beds

Mobility Systems

OpticalDry Eye Treatment

Surgical ToolsPowered instrumentsSurgical Stapling & Cutting ToolsEndoscopic EquipmentCatheters

Wound HealingNegative Pressure Wound Healing Systems

ImagingCTUltrasoundRadiography

MonitoringHome Monitoring

Vital Sign Monitoring

Diabetes CareBlood Glucose MonitorsInsulin Delivery Devices

Digital HealthConnected Medical Grade Platform

Dosage Compliance

Drug DeliveryWearable Patches & PumpsDrug Infusion SystemsSmart Auto Injectors & Injection Pens

51

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Medical Back on Double Digit Trajectory

$242M

$1.0B

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E

Revenue+20%11 yearCAGR

10%3-yearCAGR

$1.8B

52

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Latest Financial Update

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223 205178 188

220

3.6% 3.5%3.0% 3.0% 3.3%

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

Adj. Operating Margin

Revenue & Adjusted Gross Margin($M)

Adjusted Operating Income ($M)

6,1155,863 6,008

6,270

6,752

7.1% 7.1% 6.8% 6.7% 6.7%

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

Adj. Gross Margin

Quarterly Financial Highlights

20% 20% 19% 18% 17%

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

Return on Invested Capital(ROIC %)

$0.34 $0.29

$0.24 $0.27

$0.31

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

Adjusted Earnings Per Share (EPS)

54

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Q3 FY18 Target AdjustedOperating Margin Range

($M)Rev$ OP$

(adj.)OP%

(adj.)

$1,979 $50 2.5%Disciplined investments to expand and reinforce our cloud data center progress while managing legacy businesses

$2,057 $39 1.9% Improving financial performance with Nike and continuing portfolio evolution

$1,491 $61 4.1%Record quarterly revenue and profits reflecting continued strong demand across diversified markets and successful new large program ramps

$1,225 $101 8.2% Record quarterly revenue and profits from strong growth and consistent operational execution

Corporate Services &

Other-- ($31) --

Total $6,752 $220 3.3%

6

4

2

2.5

9

6

4

3.5

Operating Performance by Business Group

1.9%

2.5%

4.1%

CEC

CTG

IEI

HRS8.2%

55

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29%

22%18%

31%Q3 FY18 Revenue

40%

CTG CEC

IEIHRS

Q3 FY2018 Business HighlightsContinued Structural

Portfolio Evolution

» HRS and IEI growth accelerating as anticipated

» Successfully booking new customers and expanding Sketch-to-ScaleTM relationships

Accelerating Revenue Growth

» 4th straight quarter of Y/Y revenue growth» HRS and IEI growing 20% and 31% Y/Y

respectively, both achieving record quarterly revenue and profit

» Fiscal 2018 revenue growth on track

5,7735,877

6,0096,115

5,8636,008

6,270

6,752

Q1 Q2 Q3 Q4

Quarterly Revenue Year-Over-Year($M)

Dec-16 Dec-17Sep-16 Sep-17Jun-16 Jun-17Mar-16 Mar-17

20%

25%

40%

15%

Q3 FY18 Adj. OP$

65%

CTG CEC

IEI

HRS

56

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Revenue by Business GroupDec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18E

($M) $ $ $ $ $ Q/Q % Y/Y % Outlook Y/Y %

2,102 1,983 1,973 1,901 1,979 4% (6%) Down 5% to 10%

1,849 1,535 1,512 1,755 2,057 17% 11% Up 5% to 10%

1,141 1,296 1,391 1,454 1,491 3% 31% Up 15% to 25%

1,023 1,049 1,132 1,160 1,225 6% 20% Up 10% to 20%

Total $6,115 $5,863 $6,008 $6,270 $6,752 8% 10%

CEC

CTG

IEI

HRS

*Reflects mid-point of Mar-18E guidance

29%

25%19%

27%

Mar-18E*

44%

CTGCEC

IEIHRS

Quarterly Revenue Mix(Y/Y) 34%

22%18%

26%Mar-17

40%

CTGCEC

IEIHRS

57

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Fourth Quarter Guidance – March 2018

GAAP Income Before Income Taxes $70 - $100 million

GAAP Earnings Per Share $0.10 - $0.15

Other Information:Interest & Other Expense $35 - $40 million

Adjusted Income Tax Rate Mid-range of 10% to 15%

WASO ~534 million shares

($M, except per share amounts)

$6,100 - $6,500 Revenue

$200 - $230 Adjusted Operating

Income

$0.28 - $0.32 Adjusted Earnings

Per Share

58

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Creating a smarter, more connected world

For more information contact:Kevin KesselVP, Investor Relations & Corporate [email protected](408) 576 - 7985

Or visit us at investors.flex.com

Katherine ChenAnalyst, Investor [email protected](408) 577 - 4037