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Sketch-to-scale supply chain solutions
Kevin Kessel, VP, Investor Relations
May 26, 2016
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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.
What makes unique?
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The Flex advantage
$25Brevenue
50Msq. ft. of
manufacturing
& services space
200,000employees
100sites in over
30 countries
2,500design
engineers
4
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
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The Flex Platform is uniquely positioned to address change
Our company invests across three dimensions
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Unique view across industries & technologies
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
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Flex is uniquely structured to enable innovation
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
Why Flex?
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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
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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
~$13.0BHRS + IEI
revenue
~2years
~4years
~6years
Estimated average product life cycle
CTG CEC HRS IEI10
~28%
~23%
~27%
~22%
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Target Operating Margin
Annual Revenue
Growth Target
Prior Range New Range
10% + 5 - 7% 6 - 9%
10% + 4 - 6% 4 - 6%
- 5% to 0% 3 - 4% 2.5 - 3.5%
3% to 5% 2 - 3% 2 - 4%
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Positioned for operating profit and margin expansion
HRS
IEI
CTG
CEC
1 Corporate services and other primarily includes corporate services costs that are not included in the assessment of the performance of each of the identified business group
CEC
HRSIEI
CTG
FY20E
>60%
Targeted
Operating Profit Mix
Targeted 2020 delivers profit growth
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Positioned to deliver meaningful earnings power
% Sketch-to-scale FY20E
Portfolio
Evolution
Sketch-to-
scale
~3%
10%+
12%+
Revenue Adj.
Operating
Profit
Adj. EPS
2016 - 2020 CAGR
Substantial earnings leverage
3x
4xRevenue mix
CEC
HRSIEI
CTG
FY20E
~45%
CEC CTG IEI HRS
~35%Total Flex
2
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Strong sustainable free cash flow
Free Cash Flow Conversion 1
Free Cash Flow Yield 2
1. Free cash flow conversion defined as free cash flow / adjusted net income
2. Free cash flow yield based on average market cap at fiscal year-end
Free Cash Flow($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
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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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What do the results of our strategy look like?
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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)
Structurally & strategically aligned
to deliver shareholder value
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For more information contact:
Kevin Kessel
VP, Investor Relations
(408) 576 - 7985
Or visit us at investors.flextronics.com
Mary Lee
Sr. Manager, Investor Relations
(408) 576 - 5167
