Slide 1: Q1 FY24 Earnings Presentation
Q1 FY24 Earnings Presentation Quarter End: June 30, 2023 Earnings Announcement: July 26, 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 ac
Slide 3: Business update
Business update Revathi Advaithi Chief Executive Officer
Slide 4: Executive summary
Executive summary Q1 financial performance REVENUE ADJ. OPERATING INCOME ADJ. NET INCOME ADJ. EARNINGS PER SHARE $7.3B $377M $258M $0.57 Nextracker follow-on offering • Completed Nextracker follow-on offering • Flex remaining ownership is ~51% • Net proceeds of $495 million received on July 3, 2023
Slide 5: Quarterly highlights
Quarterly highlights MARKET & SECULAR TRENDS HIGHLIGHTS • Consumer remains soft • Invertor U.S. production launch • Generative AI/ML applications driving • EV fast charger U.S. production launch longer-term opportunities in the data center and critical power • Named 2023 Manufacturer of the Year for
Slide 6: Financial results
Financial results Paul Lundstrom Chief Financial Officer
Slide 7: Key financials
Key financials REVENUE ADJ. GROSS PROFIT ADJ. OPERATING INCOME ADJ. EARNINGS PER SHARE ($M) ($M) ($M) Adj. GM % Adj. Operating Margin $7,347 $7,336 8.4% 5.5% $0.57 $614 5.1% 7.4% 5.0% $0.54 $377 4.5% 4.5% $542 $330 4.0% 3.5% 3.0% Q1F23 Q1F24 Q1F23 Q1F24 Q1F23 Q1F24 Q1F23 Q1F24 See Appendix for GAAP
Slide 8: Segment performance
Segment performance ADJ. OPERATING ADJ. OPERATING TOTAL FLEX REVENUE A INCOME MARGIN REVENUE ($B) Y/Y GROWTH ($M) Y/Y GROWTH % Y/Y Flex Reliability Solutions $3.3 11% $165 12% 5.0% -- bps 45% Flex Agility Solutions 49% $7.3B $3.6 (10%) $146 (14%) 4.1% (20 bps) 7% Nextracker $0.5 21% $82 176% 17.2% 9
Slide 9: Cash flow overview
Cash flow overview ($M) Q1F24 CAPITAL EXPENDITURES, NET A ($M) GAAP NET INCOME $211 Depreciation, Amortization and other Impairment Charges 133 $187 $180 $157 $156 Change in Working Capital and other, net (338) $91 OPERATING CASH FLOW 6 A Capital Expenditures, net (156) Q1F23 Q2F23 Q3F23 Q4F23 Q1F24
Slide 10: Q2 FY24 segment outlook
Q2 FY24 segment outlook Flex Reliability Solutions Flex Agility Solutions Automotive CEC • Continued solid demand signals due to pent up demand • IT spending environment remains dynamic; Cloud spending continues, Enterprise IT & Comms slowing • Supply chain is improving, but still a challenge • Long
Slide 11: Q2 FY24 guidance
Q2 FY24 guidance REVENUE ADJ. OPERATING INCOME A ADJ. EARNINGS PER SHARE B $7.3B - $7.7B $370M - $400M $0.55 - $0.60 GAAP $316M - $346M GAAP $0.44 - $0.49 INTEREST EXPENSE ADJ. INCOME TAX RATE WEIGHTED AVG. SHARES OUTSTANDING $52M 13% 453M A. Adjusted operating income excludes approximately $37 mill
Slide 12: FY24 outlook and guidance
FY24 outlook and guidance FY24 financial guidance REVENUE ADJ. OPERATING MARGIN A ADJ. EARNINGS PER SHARE B $30.5B - $31.5B 5.0% - 5.2% $2.35 - $2.55 GAAP $1.87 - $2.07 Continued focus on value creation • Core portfolio aligned to long-term growth trends in higher-value business • Capitalizing on fa
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Slide 14: Appendix
Appendix
Slide 15: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended June 30, 2023 March 31, 2023 July 01, 2022 March 31, 2022 % of revenue % of revenue % of revenue % of revenue ($ in Millions) GAAP gross profit $587 8.0% $556 7.4% $535 7.3% $505 7.4% St
Slide 16: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended June 30, 2023 March 31, 2023 July 01, 2022 March 31, 2022 ($ in Millions) GAAP operating income $291 $266 $272 $228 Intangible Amortization 20 20 22 22 Stock-based compensation expense 4
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS) June 30, 2023 March 31, 2023 July 01, 2022 March 31, 2022 GAAP net income attributable to Flex Ltd. $186 $142 $189 $168 Intangible amortization 20 20 22 2
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended June 30, 2023 June 30, 2023 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $146 Total segment income $377 Flex Reliability Solutions 165 Intangible amortizatio
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended Ended ended ended ended ended ($ in Millions) June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 July 01, 2022 March 31, 2022 Net cash provided by operating activities $6