Slide 1: Results for Q2 Fiscal 2022
Results for Q2 Fiscal 2022 Earnings Announcement: October 27, 2021 (Quarter Ended October 1, 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; our planned acquisition of Anord Mardix, the expected timing for the closing of the acqui
Slide 3: Business Update
Business Update Revathi Advaithi, CEO 2
Slide 4: Q2 FY2022 Financial Summary
Q2 FY2022 Financial Summary Significant demand across every end-market; upside limited by global supply chain challenges Revenue Adj. Operating Adj. Earnings Adj. Free Cash ($M) Income Per Share Flow ($M) Adj. Operating Margin ($M) 6,342 $0.34 326 6,229 4.6% 4.6% 5,985 219 4.1% 5,153 $0.48 290 286 $
Slide 5: Q2 FY2022 Overview
Q2 FY2022 • Benefiting from our expansive global supply chain Overview and actively managing through disruptions caused by component shortages and logistic constraints • Experiencing strong, broad-based demand due to new wins across all businesses, continued global recovery, and replenishment of inv
Slide 6: M&A Update
M&A Update Acquisition of Anord Mardix positions us to accelerate growth in the attractive datacenter space and capture higher margin opportunities Comprehensive Range of Data Center Legend: Server & Storage Hardware… ● Complex PCBA assembly ● Server and storage product design ● Racks and enclosures
Slide 7: Q2 2022 Financial Results
Q2 2022 Financial Results Paul Lundstrom, CFO 6
Slide 8: Q2 FY2022 Income Statement Summary
Q2 FY2022 Income Statement Summary Broad-based demand remains strong, despite the macro environment Prior Year Current Quarter ($M, except per share amounts) September 25, 2020 October 1, 2021 Revenue $5,985 $6,229 Adjusted Operating Income $247 $286 Adjusted Net Income $180 $233 Adjusted Earnings P
Slide 9: Q2 FY2022 Financial Highlights
Q2 FY2022 Financial Highlights Disciplined execution, improving cost optimization, and strategic mix shift drove adjusted gross margin and adjusted operating margin growth Adj. Gross Profit Adj. SG&A Adj. Operating Income ($M) ($M) ($M) Adj.Gross Margin % of Revenue Adj. Operating Margin 7.7% 3.1% 4
Slide 10: Q2 FY2022 Segment Performance
Q2 FY2022 Segment Performance Revenue Adj. Operating Income & Margin ($B) Y/Y ($M) Y/Y Margin % Y/Y Health Solutions: Difficult COVID-driven Y/Y revenue comp, but demand remained strong, multiple product ramps continued Flex Reliability $2.8 4.7% $151 (15.4%) 5.4% (130 bps) Automotive: Adversely imp
Slide 11: Cash Flow Highlights
Cash Flow Highlights Substantial share repurchases totaling $328M during the quarter impacted cash flow; fiscal year-to-date share repurchases total $490M 3-Months 6-Months Net Capital ExpendituresA Ended Ended ($M) ($M) October 1, 2021 115 GAAP Net Income $336 $542 90 69 65 Depreciation, Amortizati
Slide 12: Q3 FY2022 Segment Outlook
Q3 FY2022 Segment Outlook Demand remains strong across all businesses due to new wins, replenishment of inventories, and continued global recovery Flex Reliability Solutions Flex Agility Solutions Communications, Automotive Health Solutions Industrial Lifestyle Consumer Devices Operational Benefits
Slide 13: Q3 FY2022 Guidance
Q3 FY2022 Guidance Guidance Segment Revenue Outlook (Y/Y) Revenue $6.1 - $6.5 billion Up low single to Flex Reliability down mid-single Adjusted Operating Income A $250 - $290 million Solutions digits Adjusted Earnings Per Share $0.38 - $0.44 Flex Agility Down high single GAAP Operating Income $210
Slide 14: FY2022 Guidance - Updated
FY2022 Guidance - Updated Original Updated Guidance July Update Guidance Revenue $25 - $26 billion $25.5 - $26.5 billion $24.8 - $25.8 billion Adjusted Operating Margin A 4.4% to 4.6% 4.5% to 4.7% 4.4% to 4.6% Adjusted Earnings Per Share $1.60 - $1.75 $1.70 - $1.85 $1.70 - $1.85 GAAP Earnings Per Sh
Slide 15: Moving Forward
Moving • Continue to expertly navigate global supply chain Forward challenges by adapting and implementing operational efficiencies to ensure we’re able to meet strong customer demand across all end- markets • Organic growth strategy is working with strong bookings in targeted segments, diversifying
Slide 16: Thank you.
Thank you. For more information, please visit investors.flex.com 15
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended Oct 01, 2021 July 02, 2021 September 25, 2020 June 26, 2020 ($ in Millions)** GAAP operating income $237 $255 $175 $98 Intangible Amortization 15 15 16 15 Stock-based compensation expens
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS)* October 01, 2021 July 02, 2021 September 25, 2020 June 26, 2020 GAAP net income $336 $206 $113 $52 Intangible amortization 15 15 16 15 Stock-based compen
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended October 01, 2021 September 25, 2020 ($ in Millions)* % of revenue % of revenue GAAP gross profit $465 7.5% $395 6.6% Stock-based compensation expense 6 6 Restructuring charges 9 24 Legal and Other - (2) Non-GAAP gross
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended October 01, 2021 October 01, 2021 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $153 Total segment income $237 Flex Reliability Solutions 151 Intangible Amort
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- ended ended ended ended ended ($ in Millions)* October 01, 2021 July 02, 2021 March 31, 2021 December 31, 2020 September 25,2020 Net cash provided by operating activities $180 $334 $161 $348 $265 Reduc
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Measures - Nextracker
Appendix: Reconciliation of GAAP to Non-GAAP Measures - Nextracker Quarter - Quarter - ended ended October 01, September 25, 2021 2020 Revenue (billions) $0.33 $0.29 Net income (% of Revenue) 5% 11% Intangible amortization and stock-based compensation 1% 2% Depreciation 0% 0% Interest, net 0% 0% Adj