Slide 1: Results for Q1 Fiscal 2021
Results for Q1 Fiscal 2021 Earnings Announcement: July 30, 2020 (Quarter Ended June 26, 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 and measures that we are taking to respond to the challenges presented by the COVID-19 pand
Slide 3: Business Update
Business Update Revathi Advaithi, CEO 2
Slide 4: COVID-19 Update
COVID-19 Update Prioritizing employee health and safety and partnering with customers and suppliers to address ongoing challenges Priority remains employee Supporting customers Managing costs prudently health and safety and suppliers • Implementing restructuring during • 20 million+ masks produced t
Slide 5: Q1 FY2021 Financial Summary
Q1 FY2021 Financial Summary Preserved profitability through operational and cost discipline despite challenging demand environment Revenue Adj. Operating Income Adj. Earnings Adj. Free Cash Flow ($M) ($M) Per Share ($M) Adj. Operating Margin $0.34 6,226 6,176 3.8% $0.28 3.3% 3.4% $0.27 $0.27 3.2% 12
Slide 6: Q1 FY2021 Business Highlights
Q1 FY2021 Business Highlights Guided by consistent business principles Diversification strategy and sound execution helped drive areas of strength despite overall muted environment Manage portfolio to improve mix and profitability • COVID-19 continued to affect production and demand Drive discipline
Slide 7: Q1 2021 Financial Results
Q1 2021 Financial Results Chris Collier, CFO 6
Slide 8: Q1 FY2021 Income Statement Summary
Q1 FY2021 Income Statement Summary Preserved profitability through operational and cost discipline despite challenging demand environment ($M, except per share amounts) Prior Yr Current Qtr June 28, 2019 June 26, 2020 Net sales $6,176 $5,153 Adjusted operating income 208 163 Adjusted net income 138
Slide 9: Quarterly Financial Highlights
Quarterly Financial Highlights Solid operational execution in a dynamic and challenging environment Adj. Gross Profit Adj. SG&A Adj. Operating Income ($M) ($M) ($M) Adj. Gross Margin % of Revenue Adj. Operating Margin 7.8% 7.7% 7.6% 7.5% 7.4% 7.3% 7.2% 7.1% 7.0% 3.2% 6.5% 6.9% 6.8% 6.7% 3.0% 6.6% 6.
Slide 10: Q1 FY2021 Segment Performance
Q1 FY2021 Segment Performance Adj. Operating Revenue Income & Margin ($M) Q/Q Growth Y/Y Growth ($M) Health Solutions: Critical COVID product ramps offset expected softness in demand for elective surgeries Flex Reliability Automotive: Multi-week factory shutdowns pressured $2,241 -12% -1% $115 5.1%
Slide 11: Cash Flow Generation Highlights
Cash Flow Generation Highlights Operationally focused on returning to positive adjusted free cash flow generation 3-Months Net Capital Expenditures* ($M) Ended ($M) (Jun 26, 2020) 123 95 102 GAAP net income $52 83 Depreciation, amortization and other impairment charges 156 55 Change in working capit
Slide 12: Liquidity and Cash Position Update
Liquidity and Cash Position Update Strong balance sheet ensuring ample liquidity for business needs Cash and Liquidity Management 1000 4,000 900 • Ample access to liquidity sources 1,750 3,500 revolver 800 • Total liquidity (revolver and cash) = $3.7B 3,000 • $700m of additional liquidity available
Slide 13: Second Quarter Fiscal 2021 Update – September 2020
Second Quarter Fiscal 2021 Update – September 2020 Flex Business Segments Flex Agility Solutions Segment Flex Reliability Solutions Segment Revenue up 5% to 10% Q/Q Revenue up 5% to 10% Q/Q Communications, Lifestyle Consumer Devices Automotive Health Solutions Industrial Operational Benefits Enterpr
Slide 14: Second Quarter Fiscal 2021 Update – September 2020
Second Quarter Fiscal 2021 Update – September 2020 Guidance Segment Revenue Outlook (Q/Q) Revenue $5,400 - $5,700 million Adjusted Operating Income $180 - $220 million Flex Reliability Up 5% to 10% Solutions Adjusted Earnings Per Share $0.25 - $0.31 GAAP Income Before Income Taxes $35 – $70 million
Slide 15: Moving forward
Moving forward • Seeing broad-based sequential improvements as COVID-19 related disruptions ease • Visibility is improving, but continued uncertainty related to the pandemic persists • Monitoring the macro demand environment carefully • Operating with discipline while serving customers and focusing
Slide 16: For more information, please visit investors.flex.com
For more information, please visit investors.flex.cominvestors.flex.com 15 15
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended June 26, 2020 March 31, 2020 June 28, 2019 March 31, 2019 ($Thousands) GAAP income (loss) before income taxes $67,383 $44,680 $64,109 ($36,392) Intangible amortization 15,176 15,203 17,0
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($Thousands) June 26, 2020 March 31, 2020 June 28, 2019 March 31, 2019 GAAP net income (loss) $51,820 $48,259 $44,872 ($64,352) Intangible amortization 15,176 15,203 17,082 17,337 Stock-
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended ended June 26, 2020 June 28, 2019 ($Thousands) % of revenue % of revenue GAAP gross profit $303,553 5.9% $352,759 5.7% Stock-based compensation expense 4,006 2,940 Customer related asset impairments 437 483 Restructuring c
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended June 26, 2020 June 26, 2020 ($Thousands) ($Thousands) Segment income: Reconciliation of segment income to Flex Agility Solutions $71,807 income before income taxes Total segment income $162,872 Flex Reliability Solut
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended ended ended ended ended ended ($Thousands) June 26, 2020 March 31, 2020 December 31, 2019 September 27, 2019 June 28, 2019 March 31, 2019 Net cash provided by (used in) operating activit
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended June 26, 2020 ($Thousands, except for the debt and net debt to EBITDA ratio) GAAP Adjustments Non-GAAP Pretax income $67,383 $66,578 $133,961 Depreciation 103,727 -- 103,727 Amortization 15,176 (15,176) -- Interest, net $30,571 $5,2
Slide 23: Thank you.
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