Slide 1: Q3 FY24 Earnings Presentation
Q3 FY24 Earnings Presentation Quarter End: December 31, 2023 Earnings Announcement: January 31, 2024
Slide 2: Risks, Forward-Looking Statements and non-GAAP Disclaimers
Risks, Forward-Looking Statements and non-GAAP Disclaimers This presentation contains forward -looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, o
Slide 3: Business update
Business update Revathi Advaithi Chief Executive Officer
Slide 4: Executive summary
Executive summary Q3 financial performance – TOTAL FLEX REVENUE ADJ. OPERATING INCOME ADJ. NET INCOME ADJ. EARNINGS PER SHARE $7.1B $477M $309M $0.71 Q3 financial performance – CORE FLEX A REVENUE ADJ. OPERATING INCOME ADJ. NET INCOME ADJ. EARNINGS PER SHARE $6.4B $315M $234M $0.54 See Appendix for
Slide 5: Business update
Business update MARKET TRENDS FLEX EXECUTION Focus markets Margins expanding • Cloud /AI demand strength • Q3 record Core Flex and Agility adj. continues operating margins • Networking expected to benefit • Anticipate continued operating from longer-term AI-driven demand margin expansion in Q4 • Aut
Slide 6: Financial results
Financial results Paul Lundstrom Chief Financial Officer
Slide 7: Key financials
Key financials Q3F23 Q3F24 Revenue $7,756M $7,103M TOTAL FLEX Adj. Gross Profit / Margin $595M / 7.7% $712M / 10.0% Adj. Operating Income / Margin $372M / 4.8% $477M / 6.7% Adj. Earnings Per Share $0.62 $0.71 Q3F23 Q3F24 Revenue $7,254M $6,422M CORE FLEX Adj. Gross Profit / Margin $512M / 7.1% $500M
Slide 8: Segment performance
Segment performance ADJ. OPERATING ADJ. OPERATING TOTAL FLEX REVENUE A INCOME MARGIN REVENUE C ($B) Y/Y GROWTH ($M) Y/Y GROWTH % Y/Y CHANGE Flex Reliability Solutions $3.0 (8%) $159 11% 5.4% 100 bps 42% Flex Agility Solutions 48% $7.1B $3.5 (14%) $174 (4%) 5.0% 50 bps 10% Nextracker $0.7 38% $162 17
Slide 9: Cash flow overview
Cash flow overview ($M) Q3F24 FYTD CAPITAL EXPENDITURES, NET A ($M) GAAP NET INCOME $233 $850 Depreciation, Amortization and other Impairment Charges 130 390 $180 $157 $156 $144 Change in Working Capital and other, net (79) (593) $128 OPERATING CASH FLOW 284 647 A Capital Expenditures, net (128) (42
Slide 10: Q4 FY24 segment outlook
Q4 FY24 segment outlook Flex Reliability Solutions Flex Agility Solutions Automotive CEC • Auto demand remains stable across the portfolio • Robust AI-driven Cloud spending; Enterprise IT & Comms remains muted • Interest rate impact on purchases remains a watch item • Longer-term trends driving clou
Slide 11: Q4 FY24 guidance
Q4 FY24 guidance Q4 financial guidance – CORE FLEX (no contribution from Nextracker) REVENUE ADJ. OPERATING INCOME A ADJ. EARNINGS PER SHARE B $5.8B - $6.4B $305M - $355M $0.50 - $0.60 GAAP: $0.38 - $0.48 INTEREST EXPENSE ADJ. INCOME TAX RATE WEIGHTED AVG. SHARES OUTSTANDING $53M 15% 425M Not compar
Slide 12: FY24 guidance – UPDATED
FY24 guidance – UPDATED FY24 financial guidance – TOTAL FLEX (includes Q1-Q3 Nextracker contributions) A REVENUE ADJ. OPERATING MARGIN ADJ. EARNINGS PER SHARE B $27.7B - $28.3B 5.7% - 5.9% $2.47 - $2.57 GAAP $1.77 - $1.87 ‘Total Flex’ Guidance is not comparable to previous guidance or consensus esti
Slide 13: Key Takeaways: Continued strong execution and value creation
Key Takeaways Continued strong Creating shareholder value; Nextracker Tax-Free Spin completed execution and value creation Expanding margins; validates Flex has transformed to a more resilient company Executing on capital allocation strategy; primary focus on capital return 13
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Slide 15: Appendix
Appendix
Slide 16: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures TOTAL FLEX Quarter-ended Quarter-ended Quarter-ended Quarter-ended December 31, 2023 September 29, 2023 December 31, 2022 September 30, 2022 % of revenue % of revenue % of revenue % of revenue ($ in Millions)* GAAP gross profit $642 9.0% $665 8.9
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures TOTAL FLEX Quarter- Quarter- Quarter- Quarter- ended ended ended ended December 31, 2023 September 29, 2023 December 31, 2022 September 30, 2022 ($ in Millions) GAAP operating income $348 $376 $321 $325 Intangible Amortization 17 17 19 21 Stock-b
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures TOTAL FLEX Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS) December 31, 2023 September 29, 2023 December 31, 2022 September 30, 2022 GAAP net income attributable to Flex Ltd. $197 $228 $230 $232 Intangi
Slide 19: Appendix: Reconciliation of Total Flex to Core Flex
Appendix: Reconciliation of Total Flex to Core Flex Q3FY24 GAAP Intangible Stock-based compensation Restructuring Legal & Other Interest and Noncontrolling interest share of Adjustment for Non-GAAP ($ in Millions, except for EPS)* Amortization Charges Other, net non-GAAP taxes expense adjustments To
Slide 20: Appendix: Reconciliation of Total Flex to Core Flex
Appendix: Reconciliation of Total Flex to Core Flex Q3FY23 GAAP Intangible Stock-based compensation Restructuring Legal & Other Interest and Noncontrolling interest share of Adjustment for Non-GAAP ($ in Millions, except for EPS) Amortization Charges Other, net non-GAAP taxes expense adjustments Tot
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended December 31, 2023 December 31, 2023 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $174 GAAP Operating Income $348 Flex Reliability Solutions 159 Intangible am
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended Ended ended ended ended ended ($ in Millions) December 31, 2023 September 29, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Net cash provided by operating activi
Slide 23: Thank you.
Thank you. For more information, please visit investors.flex.com