Flex Ltd. · NASDAQ:FLEX

Flex — Q4 2024 Earnings Presentation

18 slides from Flex's earnings presentation, May 1, 2024

  1. Slide 1: Q4 FY24 Earnings Presentation

    Q4 FY24 Earnings Presentation Quarter End: March 31, 2024 Earnings Announcement: May 1, 2024

  2. 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

  3. Slide 3: Q4 key financials

    Q4 key financials Q4FY23 Q4FY24 Market trends FLEX CLOUD / AI demand strength continues Revenue $6,984M $6,169M AUTOMOTIVE strength driven by increasing Adj. Gross Profit / Margin $492M / 7.0% $532M / 8.6% content in a diversified portfolio Adj. Operating Income / Margin $293M / 4.2% $333M / 5.4% Ad

  4. Slide 4: Q4 segment performance

    Q4 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%) $171 21% 5.8% 140 bps AGILITY 52% $6.2B 48% $3.2 (14%) $181 6% 5.6% 100 bps CORPORATE SERVICES -- -- ($19) -- -- -- AND OTHER B TOTAL

  5. Slide 5: FY24 performance

    FY24 performance Y/Y ADJ. OP FY23 FY24 NEXTRACKER VALUE CREATION ($M) GROWTH MARGIN FLEX REVENUEA $28.5B $26.4B (7%) 1/24 tax-free distribution to shareholders 7/23 NXT IPO follow-on Adj. Gross Profit / Margin $2,028M / 7.1% $2,060M / 7.8% 2% 2/23 NXT IPO Adj. Operating Income / Margin $1,232M / 4.3

  6. Slide 6: Core Flex

    Core Flex Delivering margin expansion and EPS growth through the cycle REVENUE ($M) ADJ. OPERATING INCOME ($M) ADJ. EARNINGS PER SHARE Adj. Operating Margin 4.8% ~20% $28,502 CAGR ~5% 4.3% 4.3% $2.15 CAGR 3.7% $1,267 $26,415 $1,232 $1.93 $1.75 $24,633 $1,070 $22,988 $853 $1.22 FY21A FY22 FY23 FY24 F

  7. Slide 7: Cash flow overview

    Cash flow overview CAPITAL EXPENDITURES, NETA ($M) ($M) Q4F24 FY24 $180 GAAP NET INCOME $395 $1,245 $156 $144 $128 Depreciation, Amortization and other Impairment Charges 147 537 Change in Working Capital and other, net 137 (456) $77 Q4F23 Q1F24 Q2F24 Q3F24 Q4F24 OPERATING CASH FLOW 679 1,326 Capita

  8. Slide 8: FY25 revenue expectations

    FY25 revenue expectations FY25 expectations RELIABILITY Down low-single-digit to up low-single-digit Automotive New ramps and content gains driving above market growth Health Solutions Medical device demand strong, but muted life sciences and hospital capex AI driving growth in data center power, un

  9. Slide 9: Q1 FY25 guidance

    Q1 FY25 guidance Revenue Adj. operating incomeA Adj. earnings per shareB $5.6B - $6.2B $240M - $280M ~ $0.37 - $0.45 GAAP $130M - $170M GAAP $0.11 - $0.19 Interest expense Adj. Income Tax Rate Weighted avg. shares outstanding $53M 19% ~ 415M A. Adjusted operating income excludes approximately $63 mi

  10. Slide 10: Financial guidance for FY2025

    Financial guidance for FY2025 • Macro headwinds through CY24 $25.4 - $26.4B revenue likely weigh on multiple end-markets • Growth in key end-markets: cloud, power, auto, medical devices 5.2% - 5.4% adj. operating marginsA • Rising global tax rates $2.30 - $2.50 adj. earnings per shareB • Further eff

  11. Slide 11: Flex forward value proposition

    Flex forward value proposition Our competitive advantages have uniquely positioned us Creating shareholder value through profitable revenue and EPS growth, margin expansion and cash generation. 1 Aligned with strong macro and secular drivers, focused on large, high-value markets 2 Created differenti

  12. Slide 12: Thank you.

    Thank you. For more information, please visit investors.flex.com

  13. Slide 13: Appendix

    Appendix flex.

  14. Slide 14: 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, December 31, March 31, December 31, March 31, March 31, 2024 2023 2023 2022 2024 2023 % of % of % of % of % of % of ($ in Millions) revenue revenue reve

  15. Slide 15: Appendix: Reconciliation of GAAP to Non-GAAP Measures

    Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Year- Year- Year- ended ended ended ended ended ended ended March 31, 2024 December 31, 2023 March 31, 2023 December 31, 2022 March 31, 2024 March 31, 2023 March 31, 2022 ($ in Millions) GAAP operating income $

  16. Slide 16: Appendix: Reconciliation of GAAP to Non-GAAP Measures

    Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Year- Year- Year- ended ended ended ended ended ended ended December 31, December 31, ($ in Millions, except for EPS) March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 March 31, 2022 2023 2022 GAAP ne

  17. Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures

    Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Year- Quarter- Year- ended ended ended ended March 31, 2024 March 31, 2024 March 31, 2024 March 31, 2024 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $181 $669 GAAP Operating Inc

  18. Slide 18: 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) March 31, 2024 December 31, 2023 September 29, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net cash provided by operating activities

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