Slide 1: Results for Q1 Fiscal 2022
Results for Q1 Fiscal 2022 Earnings Announcement: July 29th, 2021 (Quarter Ended July 2nd , 2021) 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 our consideration of alternatives relating to our Nextracker business. These forward-l
Slide 3: Business Update
Business Update Revathi Advaithi, CEO 2
Slide 4: Q1 FY2022 Financial Summary
Q1 FY2022 Financial Summary Another quarter of solid execution against robust demand, and despite global supply chain challenges Adj. Earnings Adj. Free Cash Flow Revenue Adj. Operating ($M) ($M) Income Per Share ($M) Adj. Operating Margin 6,342 $0.34 6,266 4.9% 219 5,484 $0.49 5,153 4.6% $0.46 3.8%
Slide 5: Q1 FY2022 Highlights
Q1 FY2022 Highlights • Adj Operating Margins up 120bp since June quarter of Calendar 2019 (pre-COVID) • Continue to gain share through expansions at current customers as well as new customer wins across the enterprise • Demand remains very strong on continued global recovery • Executing through supp
Slide 6: Q1 2022 Financial Results
Q1 2022 Financial Results Paul Lundstrom, CFO 5
Slide 7: Q1 FY2022 Income Statement Summary
Q1 FY2022 Income Statement Summary Strong execution across the enterprise resulting in year over year growth and margin expansion ($M, except per share amounts) Prior Yr Current Qtr June 26, 2020 July 2, 2021 Net sales $5,153 $6,342 Adjusted operating income 163 290 Adjusted net income 116 230 Adjus
Slide 8: Q1 FY2022 Quarterly Financial Highlights
Q1 FY2022 Quarterly Financial Highlights Operating at a higher level through better execution, mix shift and new wins Adj. Gross Profit Adj. SG&A Adj. Operating Income ($M) ($M) ($M) Adj.Gross Margin % of Revenue Adj. Operating Margin 7.5% 4.6% 3.0% 2.9% 6.2% 476 186 3.2% 155 290 318 163 Jun-20 Jun-
Slide 9: Q1 FY2022 Segment Performance
Q1 FY2022 Segment Performance Revenue Adj. Operating Income & Margin ($B) Y/Y ($M) Y/Y Margin % Y/Y Health Solutions: Strong chronic care, improved elective, critical returning to pre-COVID levels. Continued new wins. Flex Automotive: Demand strong, continued wins in ADAS and EV Reliability $2.9 29.
Slide 10: Cash Flow Highlights
Cash Flow Highlights Sustained strong cash flow generation Net Capital Expenditures* ($M) 3-Months Ended 115 ($M) (July 2, 2021) 102 GAAP net income $206 69 65 Depreciation, amortization and other 118 31 impairment charges Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Change in working capital and other, net 1
Slide 11: Q2 FY2022 Update
Q2 FY2022 Update – Sept 2022 Demand is strong; managing through component constraints Flex Reliability Solutions Segment Flex Agility Solutions Segment Revenue up low to high single digits % Y/Y Revenue up low to high single digits % Y/Y Communications, Automotive Health Solutions Industrial Lifesty
Slide 12: Q2 FY2022 Guidance
Q2 FY2022 Guidance – Sep 2022 Guidance Segment Revenue Outlook (Y/Y) Revenue $6.1 - $6.5 Billion Flex Reliability Up low to high Solutions single digits Adjusted Operating Income $250 - $290 million Flex Agility Up low to high Adjusted Earnings Per Share $0.37 - $0.43 Solutions single digits GAAP In
Slide 13: FY2022 Guidance – Updated
FY2022 Guidance – Updated Prior Guidance Updated Guidance Revenue $25 - $26 billion $25.5 - $26.5 billion Adjusted Operating Margin1 4.4% to 4.6% 4.5% to 4.7% Adjusted Earnings Per Share $1.60 - $1.75 $1.70 - $1.85 GAAP Earnings Per Share2 $1.30 – $1.45 $1.42 – $1.57 1. Adjusted operating margin doe
Slide 14: Moving forward
Moving forward • Continue to drive new business, customer expansions and renewals towards higher value business • Expertly managing global component and logistical constraints • More consistent earnings, higher margin level, strong cash flow is the new norm for Flex • Solid capital allocation strate
Slide 15: Thank you.
Thank you. For more information, please visit investors.flex.com 14
Slide 16: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- ended ended ended ended ended July 02, 2021 March 31, 2021 June 26, 2020 March 31, 2020 June 28, 2019 ($ in Millions)** GAAP income before income taxes $233 $260 $67 $45 $64 Intangible amortization 15
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS)* July 02, 2021 March 31, 2021 June 26, 2020 March 31, 2020 GAAP net income $206 $240 $52 $48 Intangible amortization 15 15 15 15 Stock-based compensation
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended July 02, 2021 June 26, 2020 ($ in Millions) % of revenue % of revenue GAAP gross profit $471 7.4% $304 5.9% Stock-based compensation expense 5 4 Restructuring charges - 10 Non-GAAP gross profit $476 7.5% $318 6.2% GAAP
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended July 02, 2021 July 02, 2021 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income to Flex Agility Solutions $137 income before income taxes Total segment income $290 Flex Reliability Soluti
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended ended ended ended ended ended ($ in Millions)* July 02, 2021 March 31, 2021 December 31, 2020 September 25,2020 June 26, 2020 March 31, 2020 Net cash provided by (used in) operating acti
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures - Nextracker
Appendix: Reconciliation of GAAP to Non-GAAP Measures - Nextracker Quarter - Quarter - ended ended July 02, 2021 June 26, 2020 Revenue (billions) $0.3 $0.3 Net income (% of Revenue) 5% 9% Intangible amortization and stock-based compensation 1% 1% Depreciation 0% 0% Interest, net 0% 0% Adjustments fo