Slide 1: Results for Q4 and Fiscal 2023
Results for Q4 and Fiscal 2023 Quarter End: March 31, 2023 Earnings Announcement: May 10, 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: Fourth quarter and full year highlights
Fourth quarter and full year highlights Adj. Adj. Operating Adj. Net Earnings Revenue Income Income Per Share Q4F23 $7.5B $364M $261M $0.57 • Revenue grew 9.1% year-over-year • Solid growth across all three segments • Record Q4 adj. EPS FISCAL 2023 $30.3B $1.4B $1.1B $2.36 • Delivered solid results
Slide 5: FY23 Progress
FY23 Progress Partial Nextracker IPO in February 2023 Another record year in Automotive bookings Multiple medical device ramps translating into future growth Expanding hyper cloud program wins Strong renewables hardware growth Effectively navigated global supply-chain disruptions Executing on custom
Slide 6: 2023 Notable awards and recognitions
2023 Notable awards and recognitions Notable awards Sustainability rankings and ratings A- score for climate change #1 rank in sub-industry A score for water security Member 2023 Inclusion in the FTSE4Good Index Recognized for fourth Series for the sixth consecutive year consecutive year EMEA LOGIST
Slide 7: Financial results
Financial results Paul Lundstrom Chief Financial Officer
Slide 8: Q4 Key financials
Q4 Key financials Revenue Adj. Gross Profit Adj. Operating Adj. Earnings Income Per Share ($M) ($M) Adj. Gross Margin ($M) Adj. Operating Margin $7,756 7.9% 4.9% 4.8% 7.7% $7,477 7.5% 4.5% $595 7.3% $594 $372 4.3% $364 $0.62 $0.57 $298 $295 $0.52 $0.50 $6,851 $498 $502 $6,619 Q3F22Q4 Q3F23 Q4F22 Q4F
Slide 9: Q4 Segment performance
Q4 Segment performance Adj. Operating Adj. Operating RevenueA Income Margin Overview ($B) Y/Y Growth ($M) Y/Y Growth % Y/Y RELIABILITY $3.2 14% $142 1% 4.4% (50 bps) • Strong demand across Reliability; semiconductor constraints and operational investments to support long term growth continue AGILITY
Slide 10: FY23 Financial summary
FY23 Financial summary Executing on key growth drivers Revenue Adj. Gross Profit Adj. Operating Adj. Earnings Income Per Share ($M) ($M) Adj. GM % ($M) Adj. Operating Margin 4.8% $30,346 7.7% 7.5% 4.5% $1,442 $2.36 $2,330 $1,169 $1,957 $1.96 $26,041 F22 F23 F22 F23 F22 F23 F22 F23 See Appendix for G
Slide 11: FY23 Business unit performance
FY23 Business unit performance Revenue A Adj. Operating Margin Revenue by Business Unit A ($B) Y/Y Growth % Y/Y Nextracker RELIABILITY $12.7 20% 4.8% (30 bps) 6% Automotive $3.6 22% Industrial CEC 21% 30% Health Solutions $2.6 9% Industrial $6.5 24% $30.3B Health 9% AGILITY $15.8 12% 4.4% 10 bps Sol
Slide 12: Cash flow overview
Cash flow overview Capital Expenditures, net A ($M) ($M) Q4F23 F23 GAAP Net Income $363 $1033 $187 $180 Depreciation, Amortization and other $157 Impairment Charges 130 501 $91 Change in Working Capital and other, net (43) (584) Q1F23 Q2F23 Q3F23 Q4F23 Operating Cash Flow 450 950 A Capital Expenditu
Slide 13: Balanced approach to capital allocation
Balanced approach to capital allocation Strategic Priorities: • Invest to drive organic growth and advanced capabilities • Opportunistic capital returns • Maintain a strong balance sheet and investment-grade rating Capital Expenditures, net A Share Repurchases ($M) ($M) 13% share reduction 530 2.4%
Slide 14: Q1 FY24 Segment outlook
Q1 FY24 Segment outlook FLEX RELIABILITY SOLUTIONS FLEX AGILITY SOLUTIONS NEXTRACKER Operational Health Solutions Automotive Industrial CEC Lifestyle Consumer • Benefits Solid demand, • Elective • Broad demand • Expect slowing • Consumer Devices • Global demand strong multi-year procedure largely in
Slide 15: Q1 FY24 Financial guidance
Q1 FY24 Financial guidance B Revenue Adj. Operating Income A Adj. Earnings per Share $7.0B - $7.5B $320M - $350M $0.47 - $0.53 GAAP $258M - $288M GAAP $0.35 - $0.41 Adj. EPS includes approximately $0.03-$0.04 impact from NXT non-controlling interest Interest Expense Adj. Income Tax Rate Weighted Avg
Slide 16: FY24 Financial guidance
FY24 Financial guidance B Revenue Adj. Operating Margin A Adj. Earnings per Share $30.5B - $31.5B 4.9% - 5.1% $2.35 - $2.55 GAAP $1.90 - $2.10 Adj. EPS includes approximately $0.17-$0.19 impact from NXT non-controlling interest A. Adjusted operating margin does not include the impact of approximatel
Slide 17: Managing the present, remaining focused on the longer-term
Executive summary Operating Managing the Managing costs in a dynamic environment and present, driving to continuous efficiency and productivity improvements remaining Winning focused on the Executing on our multi-year strategy to win in categories that support strategic partnerships, longer-term lon
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Slide 19: Appendix
Appendix
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended Quarter-ended Quarter-ended Year-ended Year-ended December 31, March 31, 2023 December 31, 2022 March 31, 2022 March 31, 2023 March 31, 2022 2021 % of % of % of % of % of % of revenue revenue revenue revenue revenue re
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Year- Year- ended ended ended ended ended ended March 31, 2023 December 31, 2022 March 31, 2022 December 31, 2021 March 31, 2023 March 31, 2022 ($ in Millions) GAAP operating income $266 $321 $228 $251 $1,184 $
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Year- Year- ended ended ended ended ended ended ($ in Millions, except for EPS)* March 31, 2023 December 31, 2022 March 31, 2022 December 31, 2021 March 31, 2023 Marc 31, 2022 GAAP net income attributable to Fl
Slide 23: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Year- Quarter- Year- ended ended Ended Ended March 31, 2023 March 31, 2023 March 31, 2023 March 31, 2023 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $171 $694 Total segment inco
Slide 24: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended Ended ended ended ended ended ($ in Millions) March 31, 2023 December 31, 2022 September 30, 2022 July 01, 2022 March 31, 2022 December 31, 2021 Net cash provided by operating activities
Slide 25: Thank you.
Thank you. For more information, please visit investors.flex.com