Slide 1: Results for Q4 Fiscal 2020
Results for Q4 Fiscal 2020 Earnings Announcement: May 7, 2020 (Quarter Ended March 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 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 Significant actions to-date include: • Early responsiveness in China allowed quick replication of health and safety protocol across global sites • Coordination with local
Slide 5: Operating in a Dynamic Environment
Operating in a Dynamic Environment Thoughtfully staying nimble in a tough environment Our Perspective Supply chain • Suppliers impacted declined 80% from Feb 14 peak disruption • Component shortages decreased significantly from Feb 22 peak • Leveraging preferred partner status with suppliers to ensu
Slide 6: Q4 FY2020 Financial Summary
Q4 FY2020 Financial Summary Portfolio management and operational discipline delivered strong profitability and cash flow ADJ. OPERATING ADJ. EARNINGS ADJ. FREE REVENUE ($M) INCOME PER SHARE CASH FLOW ($M) ($M) Adj. Operating $0.34 6,923 Margin $0.38 4.0% 3.7% 3.8% $0.34 6,461 3.3% 238 6,226 256 256
Slide 7: Fiscal 2020 Financial Summary and Highlights
Fiscal 2020 Financial Summary and Highlights REVENUE ADJ. OPERATING ADJ. EARNINGS ADJ. FREE ($M) INCOME PER SHARE CASH FLOW ($M) ($M) 26,211 Adj. Operating Margin 1.23 Adj. FCF Conversion 106% 3.7% 3.3% 672 24,210 898 1.14 872 0% 3 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 Guided by consistent Manage
Slide 8: FY20 Highlights and Accomplishments
FY20 Highlights and Accomplishments • Achieved adjusted EPS within the original range of FY20 guidance despite pandemic-related dislocations Executing to our longer-term strategy • Displayed 23% Y/Y growth in IEI segment 4 quarters year-over-year • Strong bookings in Automotive ($700M), Health Solut
Slide 9: Q4 2020 Financial Results
Q4 2020 Financial Results Chris Collier, CFO 8
Slide 10: Q4 FY2020 Income Statement Summary
Q4 FY2020 Income Statement Summary Portfolio management and operational discipline delivered strong profitability ($M, except per share amounts) Prior Yr Current Qtr March 31, 2019 March 31, 2020 Net sales $6,226 $5,484 Adjusted operating income 204 207 Adjusted net income 141 143 Adjusted EPS $0.27
Slide 11: Quarterly Financial Highlights
Quarterly Financial Highlights Continued margin expansion and improved profitability ADJ. GROSS PROFIT ADJ. SG&A ADJ. OPERATING INCOME ($M) ($M) ($M) Adj. Gross Margin % of Revenue Adj. Operating Margin 7.8% 7.7% 7.6% 7.5% 7.1% 7.4% 7.3% 7.2% 3.3% 3.4% 7.1% 6.6% 7.0% 6.9% 3.8% 6.8% 6.7% 6.6% 6.5% 6.
Slide 12: Q4 FY2020 Segment Performance
Q4 FY2020 Segment Performance EXISTING SEGMENTS NEW SEGMENTS** Adj. Operating Adj. Operating Revenue Revenue Income & Margin Income & Margin Y/Y ($M) ($M) ($M) ($M) Growth Impacted by automotive OEM HRS $1,131 -6% $63 5.6% production and China shutdowns Reliability $2,553 $167 6.5% IEI $1,866 23% $1
Slide 13: Cash Flow Generation Highlights
Cash Flow Generation Highlights Solid adjusted free cash flow generation NET CAPITAL EXPENDITURES* ($M) 3-Months 12-Months Ended Ended 126 123 (Mar 31, 2020) 95 ($M) 83 GAAP net income $48 $88 55 Depreciation, amortization and other 222 748 impairment charges Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Chang
Slide 14: Liquidity and Cash Position Update
Liquidity and Cash Position Update Strong balance sheet ensuring ample liquidity for business needs 4,000 1000 Actions to Enhance Liquidity 900 1,750 3,500 revolver 800 • Suspended share repurchases in mid-March 3,000 700 • Sustained capex below depreciation for FY20 2,500 600 650 • Only funding cri
Slide 15: First Quarter Fiscal 2021 Business Update – June 2020
First Quarter Fiscal 2021 Business Update – June 2020 Flex Revenue down high single to low double digits Q/Q from COVID-19 production disruptions, notably in Malaysia and India and for Automotive sites Company Update Operating Margin down Q/Q due to increased COVID-19 costs and lower absorption leve
Slide 16: A New Strategic Framework to Deliver Superior Returns Tomorrow
A New Strategic Going forward Framework to Deliver Superior Returns Tomorrow… • Making deep and sustainable changes to our Targeted growth business and optimal mix in our end • Continue to shift mix to a more diversified, Markets markets Technology higher value portfolio • Target markets where our d
Slide 17: Right Strategy for Today: Efficient, Agile, Resilient
Right Strategy for Today: Efficient, Agile, Resilient • Swiftly acted to protect our people, and support Targeted growth customers and optimal mix in our end • Pivot to cut costs, and protect cash markets Markets Technology • Agility to manage through multiple global disruptions • Optimized global f
Slide 18: For more information, go to investors.flex.com
For more information, go to investors.flex.com 17 17
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Year- Year- ended ended ended ended ended ended March 31, 2020 December 31, 2019 March 31, 2019 December 31, 2018 March 31, 2020 March 31, 2019 ($Thousands, except per share amounts) GAAP income (loss) before i
Slide 20: 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 ($Thousands, except for conversion %) March 31, 2020 December 31, 2019 March 31, 2019 December 31, 2018 March 31, 2020 March 31, 2019 GAAP net income (loss) $48,2
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended ended March 31, 2020 March 31, 2019 ($Thousands) % of revenue % of revenue GAAP gross profit $365,627 6.7% $380,295 6.1% Stock-based compensation expense 3,747 4,614 Customer related asset impairments 8,665 4,841 Restructu
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended March 31, 2020 March 31, 2020 ($Thousands) ($Thousands) Segment income: Reconciliation of segment income to Communication & Enterprise Compute $31,480 income before income taxes Total segment income $206,991 Consumer
Slide 23: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended ended March 31, 2020 March 31, 2020 ($Thousands) ($Thousands) Segment income: Reconciliation of segment income to Flex Reliability Solutions** $167,120 income before income taxes Total segment income $206,991 Flex Agility
Slide 24: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Year- Year- ended ended ($Thousands, except for conversion %) March 31, 2020 March 31, 2019 Net cash used in operating activities ($1,533,276) ($2,971,024) Cash collections of ABS positions and other 2,561,619 3,605,299 Net capital expenditures (
Slide 25: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended ended ended ended ended ended ($Thousands, except for conversion %) March 31, 2020 December 31, 2019 September 27, 2019 June 28, 2019 March 31, 2019 December 31, 2018 Net cash provided b
Slide 26: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended March 31, 2020 ($Thousands, except debt to EBITDA ratio) GAAP Adjustments Non-GAAP Pretax income $44,680 $125,906 $170,586 Depreciation 96,256 -- 96,256 Amortization 15,203 (15,203) -- Interest, net 27,826 7,779 35,605 EBITDA* 183,9
Slide 27: Thank you.
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