Slide 1: Results for Q3 Fiscal 2023
Results for Q3 Fiscal 2023 Quarter End: December 31, 2022 Earnings Announcement: January 25, 2023
Slide 2: Risks and non-GAAP disclosures
Risks and non-GAAP disclosures This presentation contains forward-looking statements within the meaning of U.S. securities laws, including: statements related to future expected revenues and earnings per share. These forward-looking statements involve risks and uncertainties that could cause the act
Slide 3: Business update
Business update Revathi Advaithi Chief Executive Officer
Slide 4: Executive summary
Executive summary Q3F23 FINANCIAL PERFORMANCE $7.8B $372M $285M $0.62 Revenue Adj. Operating Adj. Net Income Adj. Earnings Per Income Share THIRD QUARTER RECAP • Revenue growth of 17% year-over-year • Returned $40 million to shareholders in the form of share repurchases • Publicly filed Form S-1 wit
Slide 5: Fiscal third quarter trends
Fiscal third quarter trends Demand Reliability: robust demand in industrial and automotive, healthcare remains steady Agility: strong demand across CEC, consumer-end market weakness continues Supply chain Reliability: larger node semis remain a gating factor; impacting growth and efficiency Agility:
Slide 6: Strong FY23…expect continued growth in FY24
Strong FY23…expect continued growth in FY24 Revenue and Adj. Operating Margin ($M) 4.7% Opportunities throughout FY24 4.5% 4.3% • Core portfolio aligned to long-term growth trends 3.7% 30,100 and higher-value business 3.3% • Favorable secular growth drivers including renewables, next gen mobility, a
Slide 7: Revisiting Investor Day 2022: long-term targets intact
Revisiting Investor Day 2022: long-term targets intact 7
Slide 8: Financial results
Financial results Paul Lundstrom Chief Financial Officer
Slide 9: Key financials
Key financials Revenue Adj. Gross Profit Adj. Operating Adj. Earnings Income ($M) Per Share ($M) Adj. Gross Margin ($M) Adj. Operating Margin +17% 7.7% $7,766 $7,756 7.7% 7.7% 7.5% 4.6% 4.8% 4.5% 4.8% $6,619 $599 $595 $0.63 $6,229 $0.62 $375 $372 $298 $286 $0.50 $498 $0.48 $481 Q2F22Q3 Q2F23 Q3F22 Q
Slide 10: Segment performance
Segment performance Adj. Operating Adj. Operating RevenueA Income Margin Overview ($B) Y/Y Growth ($M) Y/Y Growth % Y/Y Growth RELIABILITY $3.2 19% $143 6% 4.4% (55bps) • Strong demand across the portfolio; semiconductor constraints and operational investments continue AGILITY $4.0 13% $181 11% 4.5%
Slide 11: Cash flow overview
Cash flow overview Capital Expenditures, net A ($M) $187 ($M) Q3F23 F23 YTD $157 GAAP Net Income $237 $670 $119 $108 Depreciation, Amortization and other $91 Impairment Charges 124 371 Change in Working Capital and other, net (2) (541) Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 Operating Cash Flow 359 500 Capita
Slide 12: Q4 FY23 segment outlook
Q4 FY23 segment outlook FLEX RELIABILITY SOLUTIONS FLEX AGILITY SOLUTIONS NEXTRACKER Operational Health Solutions Automotive Industrial CEC Lifestyle Consumer • Benefits Next-Gen • Continued • Broad-based • Demand across • Consumer Devices • Record backlog Mobility: EV and capital strength across Cl
Slide 13: Q4 FY23 financial guidance
Q4 FY23 financial guidance B Revenue Adj. Operating Income A Adj. Earnings per Share $7.0B - $7.4B $315M - $345M $0.48 - $0.54 GAAP $268M - $298M GAAP $0.37 - $0.43 Interest Expense Adj. Income Tax Rate Weighted Avg. Shares Outstanding ~$60M ~14% ~460M A. Adjusted operating income excludes approxima
Slide 14: FY23 financial guidance
FY23 financial guidance B Revenue Adj. Operating Margin A Adj. Earnings per Share $29.9B - $30.3B ~4.7% $2.27 - $2.33 GAAP $1.78 - $1.84 A. Adjusted operating margin does not include the impact of approximately 0.4% for stock-based compensation, and 0.3% for intangible amortization when compared to
Slide 15: Flex is continuing to deliver long-term growth
Executing toward our targets Flex is continuing Resilient portfolio to deliver long- supporting revenue growth and driving continued margin expansion term growth Balanced investments to support growth opportunities Leveraging operational initiatives to drive efficiency and improve productivity 15
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Slide 17: Appendix
Appendix flex.
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended Quarter-ended Quarter-ended December 31, 2022 September 30, 2022 December 31, 2021 October 01, 2021 ($ in Millions) GAAP operating income $321 $325 $251 $237 Intangible Amortization 19 21 15 15 Stock-based compensation
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended Quarter-ended Quarter-ended December 31, 2022 September 30, 2022 December 31, 2021 October 01, 2021 ($ in Millions)* % of revenue % of revenue % of revenue % of revenue GAAP gross profit $583 7.5% $591 7.6% $491 7.4% $
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended Quarter-ended Quarter-ended ($ in Millions, except for EPS)* December 31, 2022 September 30, 2022 December 31, 2021 October 01, 2021 GAAP net income attributable to Flex Ltd. $230 $232 $227 $336 Intangible amortization
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended December 31, 2022 December 31, 2022 ($ in Millions) ($ in Millions) Segment operating income: Reconciliation of segment operating income Flex Agility Solutions $181 Total segment operating income $372 Flex Reliability
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended Quarter-ended Quarter-ended Quarter-ended ($ in Millions) December 31, 2022 September 30, 2022 July 01, 2022 March 31, 2022 December 31, 2021 Net cash provided by operating activities $359 $103 $38 $360 $150 Net capita