Slide 1: Results for Q2 Fiscal 2023
Results for Q2 Fiscal 2023 Quarter End: September 30, 2022 Earnings Announcement: October 26, 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 $7.8B $375M $289M $0.63 Revenue Adj. Operating Adj. Net Income Adj. Earnings Per Income Share SECOND QUARTER RECAP • Revenue growth of 25% year-over-year • Record adj. operating income, up 31% year-over-year • Record adj. EPS, up 31% year-over-year • Returned
Slide 5: Key takeaways
Key takeaways Demand remained robust across most of the portfolio supported by continued strength in customer backlog Supply chain shortages are improving, but larger node semis remain a constraint, which mainly impact our Reliability end-markets Secular trends continue to support growth opportuniti
Slide 6: Notable awards
Notable awards • Recognized for implementing Industry 4.0 Flex’s Sorocaba, Brazil factory is technologies to accelerate sustainable, our second site admitted into advanced manufacturing practices the Global Lighthouse Network, a World Economic Forum • Deeply embedded sustainable operations with a ci
Slide 7: Financial results
Financial results Paul Lundstrom Chief Financial Officer
Slide 8: Key financials
Key financials Revenue Adj. Gross Profit Adj. Operating Adj. Earnings Income Per Share ($M) ($M) Adj. Gross Margin ($M) Adj. Operating Margin 4.6% 4.6% 4.8% +25% 4.5% $7,766 7.5% 7.4% +31% 7.7% 7.7% $7,347 $375 $0.63 $6,342 $599 $6,229 $330 $542 $0.54 $290 $286 $0.48 $0.46 $481 $476 Q1F22Q2 Q1F23 Q2
Slide 9: Segment performance
Segment performance Adj. Operating Adj. Operating RevenueA Income Margin Overview ($B) Y/Y Growth ($M) Y/Y Growth % Y/Y Growth RELIABILITY $3.3 34% $175 38% 5.3% 17bps • Strong demand across the portfolio; semiconductor constraints remain AGILITY $4.0 16% $170 11% 4.3% (19bps) • CEC drove strong seg
Slide 10: Cash flow overview
Cash flow overview Capital Expenditures, net A ($M) $187 ($M) Q2FY23 FY23 YTD GAAP Net Income $238 $433 $119 $108 Depreciation, Amortization and other $90 $91 Impairment Charges 123 247 Change in Working Capital and other, net (257) (539) Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Operating Cash Flow 103 141 Cap
Slide 11: Q3 FY23 segment outlook
Q3 FY23 segment outlook FLEX RELIABILITY SOLUTIONS FLEX AGILITY SOLUTIONS NEXTRACKER Operational Health Solutions Automotive Industrial CEC Lifestyle Consumer • Benefits Next-Gen • Strong demand • Expect • Strength across • Ongoing Devices • Record backlog Mobility, EV and in elective and continued
Slide 12: Q3 FY23 financial guidance
Q3 FY23 financial guidance B Revenue Adj. Operating Income A Adj. Earnings per Share $7.3B - $7.7B $345M - $375M $0.57 - $0.63 GAAP $300M - $330M GAAP $0.46 - $0.52 Interest Expense Adj. Income Tax Rate Weighted Avg. Shares Outstanding $55M 10% ~460M A. Adjusted operating income excludes approximate
Slide 13: FY23 financial guidance
FY23 financial guidance B Revenue Adj. Operating Margin A Adj. Earnings per Share $29.1B - $30.1B 4.6% - 4.8% $2.20 - $2.35 GAAP $1.72 - $1.87 A. Adjusted operating margin does not include the impact of approximately 0.4% for stock-based compensation, and 0.3% for intangible amortization when compar
Slide 14: Flex is continuing to deliver long-term growth
Delivering growth and value-creating earnings power Flex is continuing Consistent, strong execution to deliver long- driving continued margin expansion term growth Leveraging core strengths fueling significant momentum Portfolio is strategically aligned to multiple secular trends supporting long-ter
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Slide 16: Appendix
Appendix flex.
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended September 30, 2022 July 01, 2022 October 01, 2021 July 02, 2021 ($ in Millions) GAAP operating income $325 $272 $237 $255 Intangible Amortization 21 22 15 15 Stock-based compensation exp
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended Quarter-ended Quarter-ended September 30, 2022 July 01, 2022 October 01, 2021 July 02, 2021 ($ in Millions)* % of revenue % of revenue % of revenue % of revenue GAAP gross profit $591 7.6% $535 7.3% $465 7.5% $471 7.4%
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS)* September 30, 2022 July 01, 2022 October 01, 2021 July 02, 2021 GAAP net income attributable to Flex Ltd. $232 $189 $336 $206 Intangible amortization 21
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended September 30, 2022 September 30, 2022 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $170 Total segment income $375 Flex Reliability Solutions 175 Intangible A
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- ended Ended ended ended ended ($ in Millions) September 30, 2022 July 01, 2022 March 31, 2022 December 31, 2021 October 01, 2021 Net cash provided by operating activities $103 $38 $360 $150 $180 Net ca