2024
Investor and Analyst Day
1
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 earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These risks include: that we may not achieve our expected future operating results; the effects that the current and future macroeconomic environment, including inflation, slower growth or recession, a potential U.S. federal government shutdown, and currency exchange rate fluctuations, could have on our business and demand for our products; supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand; the impact of fluctuations in the pricing or availability of raw materials and components, labor and energy, and logistical constraints; risks related to the recently completed spin-off of Nextracker, and the transactions related thereto, including the qualification of these transactions for their intended tax treatment; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits; geopolitical risks, including impacts from the termination and renegotiation of international trade agreements and trade policies, the ongoing conflicts between Russia and Ukraine and between Israel and Hamas, disruptions caused by the attacks on shipping vessels in the Red Sea, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; the effects that current and future credit and market conditions could have on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations to us and our ability to pass through costs to our customers; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; hiring and retaining key personnel; litigation and regulatory investigations and proceedings; our compliance with legal and regulatory requirements; changes in laws, regulations, or policies that may impact our business, including those related to climate change; the possibility that benefits of the Company's restructuring actions may not materialize as expected; that the expected revenue and margins from recently launched programs may not be realized; our dependence on industries that continually produce technologically advanced products with short product life cycles; the short-term nature of our customers' commitments and rapid changes in demand may cause supply chain issues, excess and obsolete inventory, and other issues which adversely affect our operating results; our dependence on a small number of customers; our industry is extremely competitive; we may be exposed to financially troubled customers or suppliers; the success of certain of our activities depends on our ability to protect our intellectual property rights and we may be exposed to claims of infringement or breach of license agreements; a breach of our IT or physical security systems, or violation of data privacy laws, may cause us to incur significant legal and financial exposure and disrupt our operations; physical and operational risks from natural disasters, severe weather events, or climate change; our ability to meet environmental, social and governance expectations or standards or achieve sustainability goals; we may be exposed to product liability and product warranty liability; that recently proposed changes or future changes in tax laws in certain jurisdictions where we operate could materially impact our tax expense; and the impact and effects on our business, results of operations and financial condition of a public health issue, including a pandemic, or catastrophic event.
Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K and in our subsequent filings with the U.S. Securities and Exchange Commission. Flex assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.
Please refer to the appendix section of this presentation for reconciliation of the Non-GAAP financial measures to the most directly comparable GAAP measures. If this presentation references historical non-GAAP financial measures, these measures are located on the "Investor Relations" section of our website, www.flex.comalong with the required reconciliation to the most comparable GAAP financial measures.
The figures presented in this presentation have been rounded. This may lead to individual values not adding up to the totals presented.
The following business segment acronyms will be used throughout this presentation:
Automotive: autonomous, connectivity, electrification, and smart technologies. | CEC: data infrastructure, edge infrastructure, and communications infrastructure. | ||
Flex Reliability | Health Solutions: medical devices, medical equipment, and drug delivery. | Flex Agility | Lifestyle: appliances, consumer packaging, floorcare, micro mobility, and audio. |
Solutions | Industrial: capital equipment, industrial devices, renewables, grid edge, and | Solutions | Consumer Devices: mobile and high velocity consumer devices. |
power systems. | |||
2
Today's agenda
Moving Flex forward
Revathi Advaithi | Chief Executive Officer
Powering data center opportunity
Michael Hartung | President, Agility Solutions
Driving automotive opportunity
Becky Sidelinger| President, Reliability Solutions
Creating shareholder value
Paul Lundstrom | Chief Financial Officer
Q&A
2024
Investor and
Analyst Day
Moving Flex forward
Revathi Advaithi
Chief Executive Officer
MAY 1, 2024
Flex is one of the world's largest contract manufacturing and supply chain partners
End-to-end services | Global scope and scale | Profitable market focus |
AGILITY |
Design Source
Build Deliver
Manage
Communications,
Enterprise and Cloud
Consumer Devices Lifestyle
RELIABILITY
Automotive
Health Solutions
Industrial
5
Our focus on macro trends and high-growth market investments delivered strong financial results
HIGH-GROWTH MARKET RESULTS SINCE LAST INVESTOR DAY
Cloud | Next Generation Mobility |
~40% | ~50% |
CAGR | CAGR |
FINANCIAL RESULTS THROUGH THE CYCLE (FY21-F24)
Digital Healthcare
~15%
CAGR
Revenue growth
Mid single-digit
revenue CAGR
Margin expansion
110bp
adjusted operating margin expansion to 4.8%
Earnings growth
~20%
adjusted earnings per share growth
See Appendix for GAAP to non-GAAP reconciliations.
6
Global complexity continues to increase at all levels of the value chain
Digitization | Regionalization | Sustainability |
Amplifying | Expanding | Escalating |
product | sourcing | service |
complexity | complexity | complexity |
7
Technology shifts create even more complexity and requirements across the value chain
Digitization | Regionalization | Sustainability | Artificial intelligence |
Amplifying | Expanding | Escalating | Surging |
product | sourcing | service | technology |
complexity | complexity | complexity | complexity |
Driving demand for outsourcing partners with unique services
8
Companies turn to Flex to navigate complexity
Our global suite of services and expertise sets us apart
End-to-end | Technology | Industry | Global |
services | expertise | expertise | network |
manage our | in power and | in diverse | of sites, people, |
customers | compute are | markets creates | partners, and |
product lifecycle | unmatched | additional value | systems at scale |
9
Our integrated manufacturing services deliver productivity and increase our addressable market
Automation | Vertical integration | Global footprint | |||||||||||||||||||||
Standardization | Artificial intelligence | Connectivity |
Driving global efficiency, quality, safety, and extensibility
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Disclaimer
Flex Ltd. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2024 09:24:03 UTC.