Slide 1: Q2 FY25 Earnings Presentation
Q2 FY25 Earnings Presentation Quarter End: September 27, 2024 Earnings Announcement: October 30, 2024
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 our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and
Slide 3: Business update
Business update Revathi Advaithi Chief Executive Officer
Slide 4: Executive summary
Executive summary Q2 FINANCIAL PERFORMANCE Revenue Adj. operating income Adj. net income Adj. earnings per share $6.5B $358M $255M $0.64 BUSINESS UPDATE Record quarterly adjusted operating profit, operating margin, and EPS results Margin improvement based on favorable mix and continued operational e
Slide 5: Flex EMS + Products + Services long-term strategy
Flex EMS + Products + Services long-term strategy LATEST UPDATES: CLOUD & POWER Hyperscale Rack Solutions Open Compute Summit: • Next-Gen modular compute platform • Flex Integrated Rack solution with liquid cooling Embedded • New Flex Intermediate Bus DC/DC Converter Power Partnerships: • Power: Mus
Slide 6: Financial results
Financial results Jaime Martinez Interim Chief Financial Officer
Slide 7: Key financials
Key financials FLEX DYNAMICS Q2FY24 Q2FY25 FLEX • High demand across our data center portfolio driving margin improvement in Revenue $6,933M $6,545M both Reliability and Agility segments Adj. Gross Profit / Margin $527M / 7.6% $554M / 8.5% • Well-positioned to serve evolving healthcare market needs
Slide 8: Segment performance
Segment performance REVENUE A ADJ. OPERATING INCOME ADJ. OPERATING MARGIN TOTAL FLEX REVENUE ($B) Y/Y GROWTH ($M) Y/Y GROWTH % Y/Y CHANGE RELIABILITY $2.9 (11%) $159 (7%) 5.4% 20 bps $6.5B 45% AGILITY 55% $3.6 0% $218 31% 6.1% 150 bps CORPORATE SERVICES -- -- ($19) -- -- -- AND OTHER B TOTAL $6.5 (6
Slide 9: Cash flow overview
Cash flow overview CAPITAL EXPENDITURES, NET A ($M) ($M) Q2F25 FYTD GAAP NET INCOME $214 $353 $144 $128 Depreciation, Amortization and other Impairment Charges 131 257 $108 $100 Change in Working Capital and other, net (26) 49 $77 Q2F24 Q3F24 Q4F24 Q1F25 Q2F25 OPERATING CASH FLOW 319 659 Capital exp
Slide 10: Q3 business outlook
Q3 business outlook RELIABILITY Automotive Macro-related softness muting 2H growth expectations Health Solutions Medical device demand strong Industrial Data Center power demand very strong, weaker core industrial AGILITY CEC Cloud strength continues, networking and enterprise IT spending limited Li
Slide 11: Q3 FY25 guidance
Q3 FY25 guidance Revenue Adj. operating incomeA Adj. earnings per shareB $6.0B - $6.4B $335M - $365M $0.60 - $0.66 GAAP $257M - $287M GAAP $0.42- $0.48 Interest expense Adj. income tax rate Weighted avg. shares outstanding $50M 17% ~ 400M A. Adjusted operating income excludes approximately $35 milli
Slide 12: FY25 outlook and guidance
FY25 outlook and guidance $24.9 - $25.5B revenue • Continued strong execution in a dynamic market • Operating profit and EPS benefiting 5.4% - 5.5% adj. operating margins A from continued mix improvement towards higher value opportunities • Continued focus on efficiency gains $2.39 - $2.51 adj. earn
Slide 13: Flex value proposition
Flex value proposition Creating shareholder value through profitable revenue and EPS growth, margin expansion, and cash generation. Aligning with strong macro and secular drivers, focused 1 on large, high-value markets with room to grow Creating differentiation through end-to-end capabilities 2 and
Slide 14: Thank you.
Thank you. For more information, please visit investors.flex.com
Slide 15: Appendix
Appendix flex.
Slide 16: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter-ended ended ended ended September 27, 2024 June 28, 2024 September 29, 2023 June 30, 2023 % of revenue % of revenue % of revenue % of revenue ($ in Millions) GAAP gross profit $531 8.1% $471 7.5% $519 7.5% $476
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended September 27, 2024 June 28, 2024 September 29, 2023 June 30, 2023 ($ in Millions) GAAP operating income $297 $233 $281 $215 Intangible Amortization 16 16 17 20 Stock-based compensation e
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS) September 27, 2024 June 28, 2024 September 29, 2023 June 30, 2023 GAAP net income from continuing operations $214 $139 $201 $147 Intangible amortization 1
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended September 27, 2024 September 27, 2024 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $218 GAAP Operating Income $297 Flex Reliability Solutions 159 Intangible
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended Ended ended ended ended ended ($ in Millions) September 27, 2024 June 28, 2024 March 31, 2024 December 31, 2023 September 29, 2023 June 30, 2023 Net cash provided by operating activities