Deutsche Bank Technology Conference
Kevin Kessel, VP Investor Relations
September 2016
1
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
2
The world has changed…
Increasedregionalization
Growth ofAsian OEMs
Faster productcycles
More disruptive products
New hardwareOEMs
GlobalCitizenship
Intelligence of ThingsTM
Supply chaincomplexity
Innovationon the rise
3
…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
1
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%
1
5
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
$3Billion
6
Sketch-to-scale
3%
9%
5%
18%
CEC CTG IEI HRS
FY 2013
7%Total Flex
12%
27%
21%
30%
CEC CTG IEI HRS
FY 2016
21%Total Flex
CEC CTG IEI HRS
FY 2020E
~35%Total Flex
25-30%
35-40%
% of sketch-to-scale revenue
7
Strong sustainable free cash flow
Free Cash Flow Conversion 1
Free Cash Flow Yield 2
1. Free cash flow conversion defined as free cash flow / adjusted net income2. Free cash flow yield based on average market cap at fiscal year-end
Free Cash Flow($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
2
8
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
3
9
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
Creating a smarter, more connected world
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
