Slide 1: Q1 FY25 Earnings Presentation
Q1 FY25 Earnings Presentation Quarter End: June 28, 2024 Earnings Announcement: July 24, 2024
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 our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and
Slide 3: Business update
Business update Revathi Advaithi Chief Executive Officer
Slide 4: Executive summary
Executive summary Q1 FINANCIAL PERFORMANCE Revenue Adj. operating income Adj. net income Adj. earnings per share $6.3B $306M $211M $0.51 BUSINESS UPDATE Strong results based on mix improvements and solid operational execution Program ramps progressing as expected in Cloud, Power, and Next-Gen Mobili
Slide 5: Delivering strategic growth through key market opportunities
Delivering strategic growth through key market opportunities MARKET TRENDS Embedded Hyperscale Data Center Power Rack Solutions Power • Cloud /AI: Driving strong demand for Cloud integration and Critical and Embedded Power productions • Automotive: Growth driven by new wins and content gains • Digit
Slide 6: Financial results
Financial results Paul Lundstrom Chief Financial Officer
Slide 7: Key financials
Key financials Q1FY24 Q1FY25 FLEX • High demand for data center embedded power and Anord Mardix critical power Revenue $6,892M $6,314M products in the Industrial business Adj. Gross Profit / Margin $501M / 7.3% $495M / 7.8% • Automotive is outperforming the market, based on both new wins and increas
Slide 8: Segment performance
Segment performance REVENUE A ADJ. OPERATING INCOME ADJ. OPERATING MARGIN TOTAL FLEX REVENUE C ($B) Y/Y GROWTH ($M) Y/Y GROWTH % Y/Y CHANGE RELIABILITY $2.9 (10%) $147 (11%) 5.0% flat AGILITY 53% $6.3B 47% $3.4 (7%) $179 23% 5.3% 120 bps CORPORATE SERVICES -- -- ($20) -- -- -- AND OTHER B TOTAL $6.3
Slide 9: Cash flow overview
Cash flow overview CAPITAL EXPENDITURES, NET A ($M) ($M) Q1F25 GAAP NET INCOME $139 $156 $144 $128 Depreciation, Amortization and other Impairment Charges 126 $108 Change in Working Capital and other, net 75 $77 Q1F24 Q2F24 Q3F24 Q4F24 Q1F25 OPERATING CASH FLOW 340 Capital expenditures, netA (108) A
Slide 10: Q2 business outlook
Q2 business outlook RELIABILITY Automotive New wins and content gains offsetting soft macro Health Solutions Medical device demand strong, but muted life sciences and hospital capex Industrial Data Center power demand very strong, renewables, core industrial remains weak AGILITY CEC Cloud strength c
Slide 11: Q2 FY25 guidance
Q2 FY25 guidance Revenue Adj. operating incomeA Adj. earnings per shareB $6.2B - $6.8B $310M - $350M $0.52 - $0.60 GAAP $257M - $297M GAAP $0.40 - $0.48 Interest expense Adj. income tax rate Weighted avg. shares outstanding $48M 19% ~ 411M A. Adjusted operating income excludes approximately $32 mill
Slide 12: FY25 outlook and guidance
FY25 outlook and guidance • Staying conservative given the $25.4 - $26.4B revenue dynamic macro • Growth in key end-markets: cloud, power, auto, medical devices 5.2% - 5.4% adj. operating marginsA • Rising global tax rates • Further efficiency gains • Maintaining current capital $2.30 - $2.50 adj. e
Slide 13: Flex forward value proposition
Flex forward value proposition Creating shareholder value through profitable revenue and EPS growth, margin expansion, and cash generation. Aligning with strong macro and secular drivers, focused 1 on large, high-value markets with room to grow Creating differentiation through end-to-end capabilitie
Slide 14: Thank you.
Thank you. For more information, please visit investors.flex.com
Slide 15: Appendix
Appendix flex.
Slide 16: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended June 28, 2024 March 31, 2024 June 30, 2023 March 31, 2023 % of revenue % of revenue % of revenue % of revenue ($ in Millions) GAAP gross profit $471 7.5% $437 7.1% $476 6.9% $465 6.7% St
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended June 28, 2024 March 31, 2024 June 30, 2023 March 31, 2023 ($ in Millions) GAAP operating income $233 $159 $215 $223 Intangible Amortization 16 16 20 20 Stock-based compensation expense 3
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS) June 28, 2024 March 31, 2024 June 30, 2023 March 31, 2023 GAAP net income from continuing operations $139 $395 $147 $139 Intangible amortization 16 16 20
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended June 28, 2024 June 28, 2024 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $179 GAAP Operating Income $233 Flex Reliability Solutions 147 Intangible amortizati
Slide 20: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended Ended ended ended ended ended ($ in Millions) June 28, 2024 March 31, 2024 December 31, 2023 September 29, 2023 June 30, 2023 March 31, 2023 Net cash provided by operating activities $34