Sketch-to-scale Solutions Investor Presentation September 2016

Risks and non-GAAP disclosures This presentation contains forward-looking statements, which are based on current expectations and assumptions that are subject to risks and uncertainties and actual results could materially differ. Such information is subject to change and we undertake no obligation to update these forward-looking statements. For a discussion of the risks and uncertainties, see our most recent filings with the Securities and Exchange Commission, including our current, annual and quarterly reports. If this presentation references historical non-GAAP financial measures, these measures are located on the “Investor Relations” section of our website, www.flextronics.com along with the required reconciliation to the most comparable GAAP financial measures. The following business group acronyms will be used throughout this presentation: HRS

High Reliability Solutions Medical: Consumer Health, Digital Health, Disposables, Drug Delivery, Diagnostics, Life Sciences & Imaging Equipment. Automotive: Vehicle Electronics, Connectivity, Clean Technologies.

1

IEI

Industrial & Emerging Industries Semiconductor & Capital Equipment, Office Solutions, Household Industrial & Lifestyle, Industrial Automation & Kiosks, Energy & Metering, Lighting.

CEC

Communications & Enterprise Compute Telecom, Networking, Server & Storage, Security, Cloud Solutions.

CTG

Consumer Technologies Group Wearables, Fashion, Connected Living, Gaming, Mobile, PCs/Printers.

Table of contents Flex is Ready / Strategically Positioned to Win

Why Flex? Why Invest in Flex? Strong Free Cash Flow

4-5 6

The World Has Changed

14

The Flex Advantage

15

Shareholder Return

7

Flex Platform

16

ROIC

8

Megatrends

17

Portfolio Evolution

9

12 Industries

19

Profit Growth & Earnings Power

10-11

100+ Locations Globally Innovation & Lab IX

Balanced Capital Structure

2

20 21-22

Sketch-to-scale Innovation From SketchTo-Scale

Richer Business Mix 25

% of Sketch-To-Scale Revenue

26

Design-Enabled Manufacturing Growth

27

Silicon Valley Customer Innovation Center

28

Innovation Labs

29

12 Elementum

23

Sketch-To-Scale Impact On HRS Business

30

Nike Partnership

31

2020 Revenue & Profit Growth

33-34

High Reliability Solutions (HRS)

35-41

Industrial & Emerging Industries (IEI)

42-45

Communications & Enterprise Compute (CEC)

46-48

Consumer Technologies Group (CTG)

49-53

Strategic M&A / Financial Update M&A Transactions

55

NEXTracker

56

MCi

57

Wink

58

Farm Design

59

Latest Financial Update

60-64

IR Contact Info

65

Why Flex?

Why invest in Flex?

4

1

Evolving our portfolio to provide more predictable earnings, higher margins and meaningful earnings power

2

Strong sustainable free cash flow

3

Unwavering shareholder return commitment

Financial performance underscores successful evolution Sustainable

Profitable

Resilient

Consistent

9%

11%

$1.9B

$1.3B

CAGR (FY13 - 16)

CAGR (FY13 - 16)

(FY14 - 16)

$1.14

792

FCF generated

126%

repurchased (FY14 - 16)

75%

$1.08

68%

751

66%

99% $0.89

665

FY14

FY15

FY16

Adjusted Operating Profit

FY14

87%

FY15

Adjusted EPS

($M)

5

1. Free cash flow conversion defined as free cash flow / adjusted net income

FY16

FY14

FY15

FY16

Free Cash Flow Conversion1

FY14

FY15

FY16

Free Cash Flow Returned

Strong sustainable free cash flow Free Cash Flow Conversion 1

Free Cash Flow ($M)

$3.2B

to

$3.3B

for FY13 to FY17E 600 - 700 680

100%

1 year 99% 3 year 103% 5 year 99%

701 639 554

Free Cash Flow Yield 2

10% FY13

6

FY14

FY15

FY16

1. Free cash flow conversion defined as free cash flow / adjusted net income 2. Free cash flow yield based on average market cap at fiscal year-end

FY17E

1 year 10% 3 year 10% 5 year 10%

Unwavering shareholder return commitment Committed to returning over 50% of annual free cash flow to shareholders Share Repurchase

In the last 6 Years, we have repurchased…

($M)

813

~ $2.5 billion in stock ~ 335 million shares ~ 33% net shares outstanding

757

684 639 510

591

563

545

475 416

400

420

322

% of Free Cash Flow Returned to Shareholders 1 yr

3 yrs FY11

FY12

FY13

FY14

FY15

FY16

shares outstanding (millions)

7

5 yrs

66% 70% 76%

Guided by our return on invested capital Return on Invested Capital1 (ROIC %)

Quarterly 24

23

Annual

23

22

22

•

22

22

24

22

19

22% Avg.

• • •

Q4FY15

8

Q1FY16

Q2FY16

Q3FY16

Q4FY16

FY12

FY13

FY14

FY15

Improving earnings efficiency Disciplined capital deployment Internal target threshold stands at 20% ROIC well above WACC

FY16

1. Return on Invested Capital (ROIC) is calculated by dividing the Company's last twelve months after-tax Non-GAAP operating income by the net invested capital asset base as of each date. After-tax non-GAAP operating income excludes charges for stock-based compensation expense and restructuring charges. The net invested capital asset base is defined as the sum of shareholders' equity and net debt averaged over the last five quarters.

Strategic portfolio evolution Driving predictable earnings and margin expansion

42%

39%

36%

29%

FY10

FY16 19%

16%

13% 6%

19%

~27%

~28%

FY20E ~22%

~23%

35%

~45%

$4.5B

$8.6B

~$13.0B

HRS + IEI

HRS + IEI

HRS + IEI

revenue

revenue

revenue

~4

~6

~2 years

years

years

Estimated average product life cycle CTG

9

CEC

HRS

IEI

Positioned for operating profit and margin expansion Targeted 2020 delivers profit growth FY16 Adjusted Operating Margin Profit

Target Operating Margin Prior Range

Targeted Operating Profit Mix

New Range

($M)

HRS

$295

7.6%

5 - 7%

6 - 9%

IEI

$158

CEC

$265

3.0%

3 - 4%

2.5 - 3.5%

CTG

$164

2.3%

2 - 3%

2 - 4%

Corporate services & other1

($90) $792

10

1

CEC

CTG

3.4%

4 - 6%

4 - 6%

FY20E IEI

HRS

>60%

3.2%

Corporate services and other primarily includes corporate services costs that are not included in the assessment of the performance of each of the identified business group

Positioned to deliver meaningful earnings power Portfolio Evolution

Substantial earnings leverage 2016 - 2020 CAGR

CEC

CTG

4x

Revenue mix

FY20E IEI

3x

HRS

12%+

10%+

~45% Sketchto-scale

~35% Total Flex

% Sketch-to-scale

~3%

FY20E

Revenue 11

CEC

CTG

IEI

HRS

Adj. Operating Profit

Adj. EPS

Balanced Capital Structure Debt Maturities ($M) (Calendar Year)

Total Liquidity $3,179 Revolver

$56 EURIBOR +100bps

5% Notes

4.75% Notes

$1,500

Term Loans

Cash

4.625% Notes

LIBOR + 125 & 137.5bps

$1,679

Liquidity

2016

2017

$574

$536

$500

2018

2019

2020

Key Characteristics

• •

Solid liquidity No significant near-term maturities

• •

2021

2022

2023

2024

2025

Low cost of debt ~3.5% Strong credit metrics (Debt / Adj. EBITDA (LTM): 2.2x)

Investment Grade Rating (Moody’s, S&P, Fitch) 12

$600

$500

The World Has Changed… Flex is Ready

13

The world has changed

Growth of Asian OEMs

Increased regionalization

Faster product cycles

Supply chain complexity

Intelligence of Things

More disruptive products

TM

New hardware OEMs 14

Innovation on the rise

Global Citizenship

Flex is ready… the Flex advantage

$25B

100

200,000

2,500

50M

revenue

sites in over 30 countries

employees

design engineers

sq. ft. of manufacturing & services space

15

Flex Platform Our company invests across three dimensions

16

Ready for megatrends affecting each business group Automotive

Zero Accidents

Car Connectivity

Communications

Emerging Wireless Connectivity

17

Converged Infrastructure

Medical

Zero Emissions

Improved Compliance

Industrial

Human Machine Interfacing

Smart Connected Solutions

Patient Centric

Consumer

Smart Energy

Flexibility

Connected Lifestyle

Strategically Positioned to Win

18

Very diversified business across industries Home Appliances

Capital Equipment

Energy

Medical

Automotive

Industrial Goods

$2

$2

$1

$1

$1

$2

Billion

Billion

Billion

Billion

Billion

Billion

Telecom

Networking

Enterprise Compute

Wearables

Connected Living

Mobile

$3

$3

$2

$1

$1

$2

Billion

Billion

Billion

Billion

Billion

Billion

19

Purposefully positioned in 100+ sites and 30 countries Buffalo Grove, IL ● Coopersville, MI ●● Farmington Hills, MI ● Northfield, MN ● Overland Park, KS ●

Louisville, KY ● Atlanta, GA ●

Austin, TX ●●●● Dallas, TX ●● Fort Worth, TX ● Houston, TX ● Plano, TX ●

Tempe, AZ ● Milpitas, CA ●●●● Morgan Hill, CA ● San Jose, CA ● San Carlos, CA ●

Sonderborg, Denmark ● Stuttgart, Germany ● Oostrum, Netherlands ● Venray, Netherlands ●

Ashville, NC ● Charlotte, NC ● Raleigh, NC ●● Columbia, SC ●

Guadalajara, MX ●●●

21

Headquarters

Sorocaba, Brazil ●●

Istanbul, Turkey ● Milan, Italy ●● Treviso, Italy ● Trieste, Italy ●

Brno, Czech Republic ● Pardubice, Czech Republic ●

Manaus, Brazil ●●

Global Services

Gushu (Shenzhen), China ●● Huang Tian (Shenzhen), China ●● Nanjing, China ● Shanghai, China ●● Tianjin, China ● Shenzhen, China ●● Suzhou, China ● Wuzhong (Suzhou), China ●●● Mukachevo, Ukraine ● Zhuhai, China ●● Timisoara, Romania ●● Ibaraki, Japan ●●

Chengdu, China ●●

Dubai, UAE ●

Taipei, Taiwan ●●

Althofen, Austria ●●

Aguascalientes, MX ●●

Manufacturing

Dalingshan (Dongguan), China ● Hong Kong, China ●● Qiaotou (Dongguan), China ●

Budapest, Hungary ● Gyal, Hungary ● Pecs, Hungary ● Sarvar, Hungary ●● Tab, Hungary ● Zalaegerszeg, Hungary ●

Zurich, Switzerland ●

Memphis, TN ●

Design

Lodz, Poland ● Tczew, Poland ●●

Manchester, UK ● Burlington, Canada ● Swindon, UK ● Newmarket, Canada ● Ottawa, Canada ● Leitrim, Ireland ● Toronto, Canada ● Cork, Ireland ● Limerick, Ireland ●● Manchester, CT ●

Valencia, CA ● Reynosa, MX ● Juarez, MX ●●● Tijuana, MX ●●

Mechanicals

Ronneby, Sweden ●●

Migdal Haemek, Israel ●● Ofakim, Israel ● Yavne, Israel ●

Jaguariuna, Brazil ●

Delhi, India ● Mumbai, India ●

Bangalore, India ● Chennai, India ●●

Penang, Malaysia ●● Port of Tanjung Pelepas (Johor), Malaysia ●● Senai (Johor), Malaysia ●● Skudai (Johor), Malaysia ●

Batam, Indonesia ●

Changi, Singapore ● Joo Koon Singapore ●● Kallang, Singapore ●

Innovation at Flex To innovate is to do something that has never been done before

21

Cultivate

Develop

Identify

and accelerate collective innovation

the smart components that enable intelligence

and leverage technology across industries

Consortia Investments Suppliers OEMs Employees Centers of Excellence Startups Research Institutions Universities LabIX

Sensor Actuators Human Machine Interface Connectivity Smart Software Battery & Power Flexible Technologies & Miniaturization Security & Computing

Automotive Healthcare Industrial Connected Living Consumer Electronics Energy Fitness/Wellness Communications Aerospace & Defense

Commercialize relevant product solutions

Design Prototyping New Product Introduction Certification Manufacturing Distribution Reverse Logistics Tax & Trade

Accelerating innovation with portfolio companies Lab IX portfolio highlights Wearables

Biometric smart clothing

3D augmented interactive reality platform

Connected Living

Shared, interactive shopping list

Analytics for home & building automation

Digital Health

Smart Energy

Women's health device

Ultrathin, flexible, rechargeable batteries

Brain sensing headband

Advanced adaptive irrigation system Wearable fitness tracking

Breath quality measurement

Smart adapter to wirelessly control lights

Connected Transportation

Smart Automation

Smart drones for transportation

Electro-adhesion technology

Miniaturized global navigation modules

Smartphones as dashboard cameras

Landscape computing solutions for smart cities

22

Autonomous crime prevention robots

Force-sensitive touch technology

Mobility / Cloud

High-speed contactless data connectivity

Low power Wi-Fi chip for wireless peripherals

Real-time solutions to improve decision making Powered by Elementum: mobile software for end-to-end supply chain management Incubated in 2012 by Flex – Now a majority-owned subsidiary of Flex • Consolidated financial with Flex • Flex owns the majority of outstanding equity and Board of Directors control Board of Directors, Advisory Board and Investors include: • Lightspeed Venture Partners • Workday • Silverlake • Flex • Yahoo • LinkedIN Over $60M in total funding

23

Sketch-to-scale

24

Innovation from Sketch-to-scale

Concepting

Market Expansion

24

Prototyping

Design & Engineering

New Product Introduction

IP Protection

Certification

Manufacturing

Distribution & Logistics

Active Tracking

Reverse Logistics

End of Life

Sketch-to-scale % of sketch-to-scale revenue

~35% Total Flex

21%

35-40%

Total Flex

7%

30% 27%

Total Flex

18%

5%

3% CTG

IEI

FY 2013 26

21%

12%

9%

CEC

25-30%

HRS

CEC

CTG

IEI

FY 2016

HRS

CEC

CTG

IEI

FY 2020E

HRS

Design-enabled manufacturing growth Sketch-to-scale delivers greater value >20%

>85%

YoY design win growth

YoY manufacturing pull-through increase

FY16

Fossil smartwatch

27

FY15

330+

FY15

400+

Mcor 3D printer

Itron gas meter

Pella home automation

$1.6B

FY16

Flex e-inhaler

$3B

Ford transmission solenoids

Whirlpool display panel

Ciena 6500 platform

Enabling disruption with our innovative services Silicon Valley’s Customer Innovation Center New Product Introduction • Prototype to Product Launch • 3D Printing (plastic)

Manufacturing • Scalable Manufacturing • Procurement & Sourcing

28

Confidential Center

Innovation Labs & Design Center

• Private & Secure Manufacturing Room

• Technology Innovation & Engineering • Design for ‘X’ Services • 3D Printing (metal)

Lab IX

Global Services

• Startup hardware Accelerator • Business Scaling Resources

• Forward & Reverse Logistics • Vendor Managed Inventory

System Integration

Interconnect Technology Center

Failure Analysis Labs & Mechanicals

Advanced Engineering & Robotics Labs

• Configure to Order • Build to Order

• Multek (PCBs, Flexible & Rigid) • Advanced Printed Circuits • Integrated Design Capabilities

• Materials Characterization • Sheet Metal Manufacturing

• Value Engineering Services • Manufacturing Technology Innovation

Flex Innovation Labs Innovation Labs: where sketch-to-scale starts Shared exploration of disruptive technologies across all industries

Innovation Workshops 29

Concepting

•

Headquartered in the heart of Silicon Valley

•

A new concept lab focused on technology ideation, prototyping and new co-innovation models

•

World-class product, system and architecture expertise

•

Environment designed to foster collaboration across Flex, our customers and partners

Product Design & Engineering

Design Qualification

Minimum Viable Product

Sketch-to-scale impact on HRS business Design related growth (% HRS revenue)

China & India expansion 30%

(HRS revenue)

FY11

2X

FY16

18%

Large deal growth ($25Mil+)

7%

30

FY11

3X

FY16

Revolutionary partnerships • • • •

31

In 18 months, 20 inventions on the factory floor Fastest new Nike factory ramp,150 days from start to first ship On track to have meaningful revenue in FY18

Enabling customization & regionalization

Richer Business Mix

32

Structured to deliver profitable growth Targeted 2020 revenue growth model Annual Revenue Growth Target

HRS IEI

CEC CTG

33

Comments

10% +

• Megatrends driving growth • Deep & broad global technical capabilities

10% +

• Redefining Energy engagement model • Positioned to penetrate massive TAM across Industrials

- 5% to 0%

• Navigating challenging industry dynamics • Maintaining market leading position across the board

3% to 5%

• Success with ICE and Strategic customers • New industry growth vectors

Positioned for operating profit and margin expansion Targeted 2020 delivers profit growth FY16 Adjusted Operating Margin Profit

Target Operating Margin Prior Range

Targeted Operating Profit Mix

New Range

($M)

HRS

$295

7.6%

5 - 7%

6 - 9%

IEI

$158

3.4%

4 - 6%

4 - 6%

CEC

$265

3.0%

3 - 4%

2.5 - 3.5%

CTG

$164

2.3%

2 - 3%

2 - 4%

Corporate services & other1

($90) $792

34

1

CEC

CTG

FY20E HRS

IEI

>60%

3.2%

Corporate services and other primarily includes corporate services costs that are not included in the assessment of the performance of each of the identified business group

High Reliability Solutions (HRS)

CTG

CEC

HRS

IEI

Revenue ($M)

3,899

42%

39%

36%

29% FY16

FY10

19% 13%

19%

35

3,275

3,557

16%

6%

35%

FY14

FY15

FY16

HRS markets grow with predictability & longer life cycles

#1

#1

Industry*

Industry*

(Technology & Revenue)

(Technology & Revenue)

Automotive

Medical

79% (Bookings increase over FY14)

Aerospace & Defense

~$2B

25+

~9,000

15

Auto segment

locations

Auto employees

countries

~$1.7B

16

65+

60+

Medical segment

FDA regulated sites

Medical products designed

manufacturing transfers made

36 * Compared to traditional competitors

Automotive megatrends

37

Autonomous vehicles

Connectivity

Clean tech

Vehicle electrification

$61B

48M

13M

139M

ADAS Market by 2024

Connected Cars by 2020

Electric Cars by 2022

X-by-Wire Systems by 2019

13%

26%

28%

15%

2014-2024 Global revenue CAGR

2013-2020 Global volume CAGR

2012-2022 Global volume CAGR

2014-2021 Global volume CAGR

Automotive repositioned to focus on growth industries Smart Electronics

• • •

38

Smart rearview camera Connectivity & infotainment products Motion & power controls

Clean Tech

Lighting

• •

• •

Center high mounted stop lights (CHMSL) Overhead consoles & ambient lighting LED driver modules Flexible LED lighting (Q-Prime)

• • •

Power & signal distribution Electrohydraulic controls Power conversion, storage & charging

Medical megatrends Rising costs

39

Chronic disease

Connected health

$19T

$14B

Healthcare Spending by 2018

$59B

Diabetes Market by 2020

Digital Health by 2020

5.2%

6.1%

33%

2014-2018 Global expense CAGR

2013-2020 Global revenue CAGR

2015-2020 Global volume CAGR

Medical innovations in the connected world Health Monitoring

• • • • • •

40

3D motion sensors Hearing aids EEG/EMG devices Electronic glasses Wearable sensor patches Electronic tattoos

Drug Delivery

• • • •

DIVG delivery patches Insulin pump patches Electromechanical drug delivery systems Smart patches

Health Treatment

• • • • •

Artificial limbs Smart pills Bionic eye Dental hearing systems Smart implants

HRS continues to deliver Revenue

Bookings

10%+

95%

93% booked

86% booked

booked

FY17

41

FY18

FY19

FY20

FY21

FY17

FY18

FY19

Industrial & Emerging Industries (IEI)

CTG

CEC

HRS

IEI

Revenue ($M) 4,459

42%

39%

36%

29%

19%

19%

3,788

FY16

FY10

13%

16%

6%

35% FY14

42

4,681

FY15

FY16

Broad Industrial market and massive TAM

43

Industrial Home & Lifestyle TAM: $170B

Appliance TAM: $170B

Capital Equipment TAM: $175B

Agriculture TAM: $35B

Lighting TAM: $20B

Industrial Automation TAM: $115B

2015 Flex TAM

Flex Energy Solutions

TAM: $100B+

There is significant opportunity in solar and storage Global Electricity Production in 2015 Energy source as a %

CO2 Emissions in 2015 from Electricity and Heat Generation Billion tonnes CO2

41.3

Coal

Natural Gas

21.7

Solar & Storage Growth Global market size in $B, CAGR in %

Storage

14

+8%

Oil

12

139

16.3 98

8

10.6

Nuclear

9

5 195

6

Coal

4.7

Other

35

Natural Gas 10

Hydroelectric

230

Solar

130 4

93

4.4

Oil

2 Solar

1 0

10 2015

44

Source: International Energy Agency (IEA), SolarPower Europe, GreenTech Media (GTM), Flex Estimates

2020

2026

Flex Energy solutions Solar

Energy Storage

Tracking Systems

Analytics

Supporting broad markets Utility

45

Distributed Generation

Community

Residential

Communications & Enterprise Compute (CEC)

CTG

CEC

HRS

IEI

Revenue ($M)

9,688

42%

39%

36%

29%

19%

19%

46

8,842

FY16

FY10

13%

9,191

16%

6%

35%

FY14

FY15

FY16

CEC leading market share position

Telecom No. 1 WW

Wireless 4G/5G

Optical 100G/400G

Examples of established customers 47

Enterprise Compute No. 1 WW

Networking No. 1 WW

Switching & IP Routing

SDN

Converged Storage

Security Appliance

Strategy for growth • Expansion of new market segment Cloud

• Open Source & Software defined infrastructure

Disruptive OEM Solutions

Core OEM Solution Providers

48

• Expand customer base • Converged Infrastructure

• Maintain leadership position • Enable transition via hybrid

Consumer Technologies Group (CTG)

CTG

CEC

HRS

IEI

Revenue ($M)

9,358

42%

39%

36%

29%

19%

19%

49

6,998

FY16

FY10

13%

8,940

16%

6%

35%

FY14

FY15

FY16

CTG at a glance Revenue - $7.0B

•

Total CTG ($M)

2,011

Q1 FY16

1,364

Q2 FY16

Q3 FY16

Q4 FY16

Revenue - $4.6B Excluding all Lenovo Motorola Smartphones ($M)

1,362

1,407

978

Q1 FY16

50

• • • •

2,058

1,565

899

Q2 FY16

Q3 FY16

Q4 FY16

FY 16 quick stats:

• • • •

$1.57B new bookings 55 new customers ~$1B in Wearables revenue

>$0.5B in new Connected Home revenue

7% YoY Sketch-to-scale growth Opened SF Invention Lab Announced Nike business Acquired Wink

Lenovo Motorola smartphone business update Total Flex Revenue ($M)

26,148 4,312

21,836

24,419 2,352 22,067

CTG

•

Significant revenue headwind removed

•

Cost to close China Lenovo Motorola operations within our estimates

•

Eliminated our China Lenovo Motorola exposure

•

Strong relationship in Brazil and India

Revenue ($M)

8,940 4,312

6,998 2,352

FY15

FY16

Lenovo Motorola revenue

51

4,628

4,646

FY15

FY16

Developing growth vectors

52

Connected Home

Consumer Health

New Generation Products

• • • •

• Advanced Wearables • Telehealth • Personalized Monitoring

• Drones • Virtual & Augmented Reality • Telematics

Nike

Digital Sport

Fashion

• Shoes

• • • •

• Connected Jewelry • Bags with Power • Smart Accessories

Smart Appliances Home Hubs Media Devices Connected Audio

Activity Trackers Smart Helmets Smart Watches Athletic Apparel

Investing in new business models FY16 Achieved

113%

+5%

42

STRATEGIC

48%

3-4%

7

CORE

-34%

+2%

6

Revenue Growth

Operating Profit

Customers Added

ICE

53

Strategic M&A

54

Targeted M&A strategy aligned with portfolio evolution Key Selection Criteria Target capabilities

Strategic customers

Longer product lifecycles

EPS accretive

Barriers to entry

Higher margins

# of Acquisitions Based on purchase price 1

>$100M $25-$100M

3 55

1

IEI

HRS

2