Slide 1: Results for Q1 Fiscal 2023
Results for Q1 Fiscal 2023 Quarter Ended: July 1, 2022 Earnings Announcement: July 27, 2022
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 FINANCIAL PERFORMANCE $7.3B $330M $255M $0.54 Revenue Adj. Operating Adj. Net Income Adj. Earnings Per Income Share FIRST QUARTER RECAP • Revenue growth of 16% year-over-year, and up 7% quarter-over-quarter • Demand remained strong across most of the portfolio • Achieved record adj
Slide 5: Stronger, balanced portfolio
Stronger, balanced portfolio Regional Presence Diverse Customer Base Balanced Business* China North America Top 10 Other Agility Reliability EMEA Other Nextracker 3% 6% 20% 24% 25% 29% 34% 41% 35% FY18 FY22 FY18 FY22 FY18 41% FY22 54% 59% 62% 66% 21% 28% 17% 34% Improved portfolio mix drives perform
Slide 6: Financial Results
Financial Results Paul Lundstrom Chief Financial Officer
Slide 7: Key financials
Key financials Revenue Adj. Gross Profit Adj. Operating Adj. Earnings Income Per Share ($M) ($M) Adj. Gross Margin ($M) Adj. Operating Margin 17% 16% 8.1% 4.9% $0.54 4.6% 4.5% 7.5% 7.4% 4.3% $0.34 $7,347 7.3% $330 $542 $0.52 $310 $295 $290 $6,851 $505 $502 $0.49 $6,342 $476 $6,266 $0.46 Q4F21Q1 Q4F2
Slide 8: Segment performance
Segment performance Adj. Operating Adj. Operating RevenueA Income Margin Overview ($B) Y/Y Growth ($M) Y/Y Growth % Y/Y Growth RELIABILITY $3.0 15% $147 2% 5.0% (63 bps) • Demand remained strong across the board; continued to be supply constrained AGILITY $4.0 16% $171 25% 4.3% 30 bps • Strength dri
Slide 9: Cash flow overview
Cash flow overview ($M) Q1FY23 Capital Expenditures, Net A ($M) GAAP Net Income $195 $115 $119 $108 $90 $91 Depreciation, Amortization and other Impairment Charges 124 Change in Working Capital and other, net (281) Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Operating Cash Flow 38 Capital Expenditures, net A (91)
Slide 10: Q2 FY23 segment outlook
Q2 FY23 segment outlook FLEX RELIABILITY SOLUTIONS FLEX AGILITY SOLUTIONS NEXTRACKER Operational Health Solutions Automotive Industrial CEC Lifestyle Consumer • Benefits Next-Gen • Increasing • Expect • End-to-end • Global scale Devices • Record backlog Mobility demand due to continued bundled enabl
Slide 11: Q2 FY23 financial guidance
Q2 FY23 financial guidance B Revenue Adj. Operating Income A Adj. Earnings per Share $7.0B - $7.4B $315M - $345M $0.48 - $0.54 GAAP $265M - $295M GAAP $0.37 - $0.43 Interest Expense Adj. Income Tax Rate Weighted Avg. Shares Outstanding $52M 13% - 15% ~468M A. Adjusted operating income excludes appro
Slide 12: FY23 financial guidance
FY23 financial guidance B Revenue Adj. Operating Margin A Adj. Earnings per Share $28.4B - $29.4B 4.6% - 4.8% $2.09 - $2.24 GAAP $1.63 - $1.78 A. Adjusted operating margin does not include the impact of approximately 0.4% for stock-based compensation, and 0.3% for intangible amortization when compar
Slide 13: Flex's position of strength
Flex’s position Delivering long-term growth and of strength creating shareholder value Focused on strong execution through a dynamic environment Robust underlying demand reflected in orders and backlog, and will continue to monitor all demand indicators Business fundamentals remain strong supporting
Slide 14: Thank you.
Thank you. For more information, please visit investors.flex.com 13
Slide 15: Appendix
Appendix flex.
Slide 16: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended July 01, 2022 March 31, 2022 July 02, 2021 March 31, 2021 ($ in Millions)* GAAP operating income $272 $228 $255 $282 Intangible Amortization 22 22 15 15 Stock-based compensation expense
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended July 01, 2022 March 31, 2022 July 02, 2021 March 31, 2021 ($ in Millions)* % of revenue % of revenue % of revenue % of revenue GAAP gross profit $535 7.3% $505 7.4% $471 7.4% $509 8.1% S
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS)* July 01, 2022 March 31, 2022 July 02, 2021 March 31, 2021 GAAP net income attributable to Flex Ltd. $189 $168 $206 $240 Intangible amortization 22 22 15
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended July 01, 2022 July 01, 2022 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $171 Total segment income $330 Flex Reliability Solutions 147 Intangible Amortizatio
Slide 20: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- ended Ended ended ended ended ($ in Millions) July 01, 2022 March 31, 2022 December 31, 2021 October 01, 2021 July 02, 2021 Net cash provided by operating activities $38 $360 $150 $180 $334 Net capital