Slide 1: Results for Q2 Fiscal 2021
Results for Q2 Fiscal 2021 Earnings Announcement: October 29, 2020 (Quarter Ended September 25, 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: Q2 FY2021 Financial Summary
Q2 FY2021 Financial Summary Disciplined focus and execution through a challenging macro environment Revenue Adj. Operating Income Adj. Earnings Adj. Free Cash Flow ($M) ($M) Per Share ($M) Adj. Operating Margin 326 6,176 6,088 4.1% 5,985 $0.36 3.7% 3.4% 187 3.2% $0.31 247 227 $0.27 114 208 $0.23 5,1
Slide 5: Q2 FY2021 Business Highlights
Q2 FY2021 Business Highlights Guided by consistent business principles Diversification strategy and targeted commercial focus provided strength and balance despite a challenging macro Manage environment portfolio to improve mix and profitability • COVID-19 continued to affect demand Drive • Flex Rel
Slide 6: Q2 2021 Financial Results
Q2 2021 Financial Results Paul Lundstrom, CFO 5
Slide 7: Q2 FY2021 Income Statement Summary
Q2 FY2021 Income Statement Summary Disciplined focus and execution through a challenging macro environment ($M, except per share amounts) Prior Yr Current Qtr September 27, 2019 September 25, 2020 Net sales $6,088 $5,985 Adjusted operating income 227 247 Adjusted net income 158 180 Adjusted EPS $0.3
Slide 8: Quarterly Financial Highlights
Quarterly Financial Highlights Solid execution drove margin expansion Adj. Gross Profit Adj. SG&A Adj. Operating Income ($M) ($M) ($M) Adj. Gross Margin % of Revenue Adj. Operating Margin 8.5% 8.4% 8.3% 8.2% 8.1% 8.0% 7.9% 7.8% 7.7% 7.1% 7.6% 7.5% 7.4% 3.1% 3.0% 7.3% 6.8% 7.2% 7.1% 7.0% 4.1% 6.9% 6.
Slide 9: Q2 FY2021 Segment Performance
Q2 FY2021 Segment Performance Revenue Adj. Operating Income & Margin ($M) Q/Q Y/Y ($M) Y/Y (%) Y/Y Health Solutions: COVID-related critical care product demand remained strong Flex Reliability Automotive: Sites operated for full quarter, $2,667 19% 6% $179 12% 6.7% +30 bps Solutions alleviating prio
Slide 10: Cash Flow Highlights
Cash Flow Highlights Strong Q2 cash flow rebound 3-Months 6-Months Net Capital Expenditures* ($M) Ended Ended ($M) (Sep 25, 2020) 95 102 GAAP net income $113 $165 83 69 Depreciation, amortization and other 55 190 346 impairment charges Change in working capital and other Sep-19 Dec-19 Mar-20 Jun-20
Slide 11: Liquidity and Cash Position
Liquidity and Cash Position Strong balance sheet ensures ample liquidity for business needs 4,500 Cash and Liquidity Management 2000 1,750 • Ample access to liquidity sources 4,000 1800 revolver 3,500 • Total liquidity (revolver and cash) = $4.1B 1600 • $0.8B of additional liquidity available throug
Slide 12: Third Quarter Fiscal 2021 Update – December 2020
Third Quarter Fiscal 2021 Update – December 2020 Flex Business Segments Flex Agility Solutions Segment Flex Reliability Solutions Segment Revenue up low to high single digits Q/Q Revenue up low to mid single digits Q/Q Communications, Lifestyle Consumer Devices Automotive Health Solutions Industrial
Slide 13: Third Quarter Fiscal 2021 Update – December 2020
Third Quarter Fiscal 2021 Update – December 2020 Guidance Segment Revenue Outlook (Q/Q) Revenue $6,000 - $6,400 million Adjusted Operating Income $235 - $275 million Flex Reliability Up low to mid Solutions single digits Adjusted Earnings Per Share $0.34 - $0.40 GAAP Income Before Income Taxes $125
Slide 14: Moving forward
Moving forward • Sequential improvements for most end markets • Temporary dip in Health Solutions demand due to completion of accelerated COVID-related ramps coupled with slow recovery of elective medical procedures • Visibility is improving though monitoring demand environment and signals carefully
Slide 15: For more information, please visit investors.flex.com
For more information, please visit investors.flex.cominvestors.flex.com 14 14
Slide 16: Thank you.
flex. 5 > ~~ ¢ © -
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended September 25, 2020 June 26, 2020 September 27, 2019 June 28, 2019 ($ in Millions)** GAAP income (loss) before income taxes $153 $67 ($96) $64 Intangible amortization 16 15 16 17 Stock-ba
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS)** September 25, 2020 June 26, 2020 September 27, 2019 June 28, 2019 GAAP net income (loss) $113 $52 ($117) $45 Intangible amortization 16 15 16 17 Stock-b
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended ended September 25, 2020 September 27, 2019 ($ in Millions)* % of revenue % of revenue GAAP gross profit $395 6.6% $189 3.1% Stock-based compensation expense 6 4 Customer related asset impairments (recoveries) (2) 88 Restr
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended September 25, 2020 September 25, 2020 ($ in Millions)** ($ in Millions)** Segment income: Reconciliation of segment income to Flex Agility Solutions $88 income before income taxes Flex Reliability Solutions $179 Tota
Slide 21: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended ended ended ended ended ended ($ in Millions)* September 25, 2020 June 26, 2020 March 31, 2020 December 31, 2019 September 27, 2019 June 28, 2019 Net cash provided by (used in) operating
Slide 22: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended September 25, 2020 ($ in Millions, except for the debt and net debt to EBITDA ratio)** GAAP Adjustments Non-GAAP Pretax income $153 $69 $222 Depreciation 112 - 112 Amortization 16 (16) - Interest, net $35 $3 $38 EBITDA* 316 56 372 E