Slide 1: Results for Q3 Fiscal 2021
Results for Q3 Fiscal 2021 Earnings Announcement: January 28, 2021 (Quarter Ended December 31, 2020) 0
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, our consideration of alternatives relating to our NEXTracker business, and measures that w
Slide 3: Business Update
Business Update Revathi Advaithi, CEO 2
Slide 4: Q3 FY2021 Financial Summary
Q3 FY2021 Financial Summary Continued disciplined execution resulted in growth and margin expansion Revenue Adj. Operating Income Adj. Earnings Adj. Free Cash Flow ($M) ($M) Per Share ($M) Adj. Operating Margin 4.6% 6,720 4.1% 4.0% $0.49 326 6,461 3.7% 311 289 6,088 $0.38 238 5,985 $0.36 256 247 187
Slide 5: Q3 FY2021 Business Highlights
Q3 FY2021 Business Highlights Guided by consistent business principles Disciplined execution converted robust demand and new business ramps into revenue growth and margin expansion Manage • Flex Reliability Solutions revenue of $2.9B, +8% Q/Q and +2% Y/Y portfolio to improve mix and profitability -
Slide 6: Q3 2021 Financial Results
Q3 2021 Financial Results Paul Lundstrom, CFO 5
Slide 7: Q3 FY2021 Income Statement Summary
Q3 FY2021 Income Statement Summary Continued strong execution resulted in growth and margin expansion ($M, except per share amounts) Prior Yr Current Qtr December 31, 2019 December 31, 2020 Net sales $6,461 $6,720 Adjusted operating income 256 311 Adjusted net income 193 251 Adjusted EPS $0.38 $0.49
Slide 8: Quarterly Financial Highlights
Quarterly Financial Highlights Achieved record profitability through strong operational execution Adj. Gross Profit Adj. SG&A Adj. Operating Income ($M) ($M) ($M) Adj. Gross Margin % of Revenue Adj. Operating Margin 8.5% 8.4% 8.3% 8.2% 8.1% 7.6% 8.0% 7.9% 7.8% 7.1% 7.7% 7.6% 7.5% 7.4% 4.6% 7.3% 7.2%
Slide 9: Q3 FY2021 Segment Performance
Q3 FY2021 Segment Performance Revenue Adj. Operating Income & Margin ($M) Q/Q Y/Y ($M) Y/Y (%) Y/Y Health Solutions: Continuing to fulfill COVID-related critical care demand while ramping new programs Flex Reliability $2,886 8% 2% $178 -4% 6.2% -40 bps Automotive: Strong recovery led to revenue upsi
Slide 10: Cash Flow Highlights
Cash Flow Highlights Sustained strong cash flow generation 3-Months 9-Months Ended Ended Net Capital Expenditures* ($M) ($M) (December 31, 2020) GAAP net income $208 $373 102 Depreciation, amortization and other 83 180 526 69 65 impairment charges 55 Change in working capital and other (34) (121) (e
Slide 11: Fourth Quarter Fiscal 2021 Update – March 2021
Fourth Quarter Fiscal 2021 Update – March 2021 Flex Business Segments Flex Agility Solutions Segment Flex Reliability Solutions Segment Revenue up low to high single digits Y/Y Revenue up low to high single digits Y/Y Communications, Lifestyle Consumer Devices Automotive Health Solutions Industrial
Slide 12: Fourth Quarter Fiscal 2021 Update – March 2021
Fourth Quarter Fiscal 2021 Update – March 2021 Guidance Segment Revenue Outlook (Y/Y) Revenue $5,600 - $6,000 million Adjusted Operating Income $225 - $265 million Flex Reliability Up low to high Solutions single digits Adjusted Earnings Per Share $0.32 - $0.38 GAAP Income Before Income Taxes $145 –
Slide 13: Moving forward
Moving forward • Remain confident on strategy to drive margin-accretive growth, manage business mix, improve profitability, and generate free cash flow • Operating with discipline while serving customers and focusing on key growth segments • Expecting Q4 seasonality effects in-line with historical p
Slide 14: Thank you.
Thank you. For more information, please visit investors.flex.com 13
Slide 15: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended December 31, 2020 September 25, 2020 December 31, 2019 September 27, 2019 ($ in Millions)** GAAP income (loss) before income taxes $233 $153 $145 ($96) Intangible amortization 16 16 16 1
Slide 16: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS)** December 31, 2020 September 25, 2020 December 31, 2019 September 27, 2019 GAAP net income (loss) $208 $113 $111 ($117) Intangible amortization 16 16 16
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended December 31, 2020 December 31, 2019 ($ in Millions)* % of revenue % of revenue GAAP gross profit $479 7.1% $430 6.7% Stock-based compensation expense 6 4 Customer related asset impairments - 4 Restructuring charges 29
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended December 31, 2020 December 31, 2020 ($ in Millions)** Segment operating income: ($ in Millions)** Flex Agility Solutions $153 Reconciliation of segment income to Flex Reliability Solutions $178 income before income tax
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended ended ended ended ended ended ($ in Millions)* December 31, 2020 September 25, 2020 June 26, 2020 March 31, 2019 December 31, 2019 September 27, 2019 Net cash provided by (used in) opera