2013 investor & analyst day mike mcnamara, chief executive ... · 6 $182 $185 . $200 . $209 ~...

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2013 Investor & Analyst Day Mike McNamara, Chief Executive Officer

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Page 1: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

2013 Investor & Analyst Day Mike McNamara, Chief Executive Officer

Page 2: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing
Page 3: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

FLEXTRONICS PLATFORM

PHYSICAL INFRASTRUCTURE 100+ sites 200k+ people 100+ Sites 200K People Global Scale 30+ Countries

Page 4: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

1,000+ C U S T O M E R S

100,000+ P R O D U C T S

100+ Million U N I T S

$100+ Billion VA L U E O F G O O D S P R O C E S S E D

Page 5: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

INDUSTRY FOOTPRINT

C O N S U M E R C O M P U T I N G N E T W O R K I N G T E L E C O M M E D I C A L E N E R G Y A U T O M O T I V E I N D U S T R I A L

Page 6: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

MANUFACTURING TECHNOLOGIES

P O W E R R I G I D /

F L E X I B L E C I R C U I T S

M A C H I N I N G M E T A L F O R M I N G P L A S T I C S M O L D E D

M A G N E S I U M

Page 7: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

GLOBAL SCALE

H R I T C U L T U R E F I N A N C E

Page 8: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

FLEXTRONICS PLATFORM

PHYSICAL INFRASTRUCTURE

100+ Sites 200K people 30+ countries

Innovation Engineering Logistics Supply Chain

END-TO-END SERVICES

Global Scale

Page 9: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

I N N O V AT I O N L O G I S T I C S E N G I N E E R I N G S U P P L Y C H A I N

P R O D U C T I N N O V A T I O N

C E N T E R S

L O G I S T I C S M A N A G E M E N T

D E S I G N E N G I N E E R I N G O P T I M I Z A T I O N

END-TO-END SERVICES

V E N D O R M A N A G E D

I N V E N T O R Y

A D V A N C E D M A N U F A C T U R I N G

P R O D U C T C O -I N N O V A T I O N

S P A R E P A R T S L O G I S T I C S R E G I O N A L I Z A T I O N

3 D P R I N T I N G S E R V I C E S

E N G I N E E R I N G A U T O M A T I O N

R E V E R S E L O G I S T I C S

R A T I O N A L I Z A T I O N

Page 10: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

END-TO-END PLATFORM S E RV I C E S

Page 11: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

END-TO-END PLATFORM S E RV I C E S

Page 12: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

FLEXTRONICS PLATFORM

PHYSICAL INFRASTRUCTURE

100+ Sites 200K people 30+ countries

REAL-TIME INFORMATION

Visibility Risk Execution Any app

Global Scale

Innovation Engineering Logistics Supply Chain

END-TO-END SERVICES

Page 13: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

CLOUD, MOBILE & REAL-TIME O T H E R I N D U S T R I E S H AV E G O N E

Page 14: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

A N D N O W, S O H A S S U P P LY C H A I N

Page 15: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing
Page 16: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

2013 Investor & Analyst Day

David Mark, Chief Strategy Officer

Page 17: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

LOOKING AHEAD

Page 18: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

100+ Sites 200K people 30+ countries

Visibility Risk Execution Any app

Global Scale

Innovation Engineering Logistics Supply Chain

HOW ARE WE BUILDING IT?

Page 19: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

100+ Sites 200K people 30+ countries

Visibility Risk Execution Any app

Global Scale

Innovation Engineering Logistics Supply Chain

Page 20: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

F L E X T R O N I C S P H Y S I C A L I N F R A S T R U C T U R E

M O R E

Page 21: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

F L E X T R O N I C S P H Y S I C A L I N F R A S T R U C T U R E

M O R E

Page 22: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

M O R E

F L E X T R O N I C S P H Y S I C A L I N F R A S T R U C T U R E

Page 23: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

100+ Sites 200K people 30+ countries

Visibility Risk Execution Any app

Global Scale

Innovation Engineering Logistics Supply Chain

Page 24: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

F L E X T R O N I C S E N D - T O - E N D S E R V I C E S

B E T T E R

Page 25: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

F L E X T R O N I C S E N D - T O - E N D S E R V I C E S

B E T T E R

Page 26: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

F L E X T R O N I C S E N D - T O - E N D S E R V I C E S

B E T T E R

Page 27: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

100+ Sites 200K people 30+ countries

Visibility Risk Execution Any app

Global Scale

Innovation Engineering Logistics Supply Chain

Page 28: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

N E W

F L E X T R O N I C S R E A L - T I M E A P P S

Page 29: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

N E W

F L E X T R O N I C S R E A L - T I M E A P P S

Page 30: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

N E W

F L E X T R O N I C S R E A L - T I M E A P P S

Page 31: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

100+ Sites 200K people 30+ countries

Visibility Risk Execution Any app

Global Scale

Innovation Engineering Logistics Supply Chain

Page 32: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

2013 Investor & Analyst Day Tom Linton, Chief Supply Chain Officer

Page 33: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

THE WORLD IS CHANGING.

Page 34: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

1960s: Mass Production e.g. Sears

1980s: Lean e.g. Toyota

2000s: SCM 2.0 e.g. DELL

2010s: Virtual e.g. Amazon

T H E E V O L U T I O N O F T H E S U P P LY C H A I N

Page 35: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

TOP 5 SUPPLY CHAIN TRENDS

Page 36: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Flextronics Has 200,000 Supply Chain Professionals in Over 30 Countries

#5 : REGIONAL & LOCAL SOURCING

• Labor arbitrage in decline

• Regional sourcing expands as economies grow

• Supply ecosystems emerge

Page 37: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

The Flextronics Platform is the Control Tower for Modern Supply Chains

#4 : V IRTUAL CONTROL TOWERS

• Virtual supply chains – No factories – Advanced cloud tools and “apps”

• Supply chain winners – Global footprint – Transparent – Reliable – Flexible

Page 38: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Flextronics is the Supply Chain Risk Management Leader

#3 : SAFE, FAST, AND COST-EFFIC IENT

• Modern supply chains are 3-D

• Predictability becomes a competitive advantage

• Supply chains break through barriers to become faster, more cost efficient and safer

Velocity

Risk

COST

Page 39: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Flextronics is Recognized as a Leader Driving CSER

#2 : CSER BECOMES FUNDAMENTAL

• Optionalism disappears

• Policies expand globally

• Emerging country laws catch up

• Foreign corporations follow global norms

CORPORATE SOCIAL ENVIRONMENTAL RESPONSIBILITY

Page 40: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

The Flextronics Platform Drives Trust, Transparency, and Reliability

#1 : “NON-ZERO” SUPPLY CHAINS WIN

• Win-Win trend continues

• Supply chain “ecosystems” focus on balance for success

• End-to-end supply chain solutions create new value for customers

• Supply chain becoming a magnet for top students

Page 41: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Product Innovation Engineering Logistics Supply Chain

END-TO-END SERVICES

REAL-TIME INFORMATION

Visibility Risk Execution Any app

PHYSICAL INFRASTRUCTURE 100+ sites 200k+ people 100+ Sites 200K People Global Scale 30+ Countries

Not Being Part of the Flextronics Ecosystem is a Competitive Disadvantage

Page 42: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

2013 Investor & Analyst Day Doug Britt, President

Industrial & Emerging Industries

Page 43: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

E X T R E M E LY B R O A D M A R K E T S

Building Automation Self Service Industrial

Automation Safety & Security

Lifestyle & Appliances

Capital Equipment Energy

Page 44: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

R E A L I G N I N G F O R S A L E S G R O W T H

IMPLEMENTED AGGRESSIVE SALES APPROACH TO SELL FLEXTRONICS PLATFORM

DOUBLED DESIGN TEAM TO TRIPLE DESIGN ENGAGEMENTS

ADDED STRATEGIC SALES RESOURCES AND DISCIPLINED EXECUTION PROCESS

INCREASED CUSTOMER FOCUS

Delivered 27 proactive transformational proposals in Q4’13

Page 45: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

$530

$423 $362

$359

$232 $216 $249

New Wins Bookings Value ($mil)

$205

31

Stro

ng O

ppor

tuni

ty P

ipel

ine

Return to growth in FY14 - 10%-15% growth in FY15

35 34 41 49 55 63 67

I N C R E M E N TA L B U S I N E S S W I N S

Page 46: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Customer Impact • Reduce inventory

waste • Maintain quality &

reliability • Increase access to

engineering platform, technology & resources

$50M+ WIN

Transforming customer process & improving inventory efficiency

Slow customer

processing speed

PRE- TRANSFORMATION

Significant inventory obsolesce

Limited electronic & mechanical expertise

D E S I G N PA RT N E R L A R G E F O O D & B E V E R A G E C O M P A N Y

Page 47: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Customer Impact • Global fulfillment from

N.A. and Asia • Simplified supply chain • Reduced operational

costs • Lead time reduction

from 12 weeks to 4 weeks

$75M WIN

Reduced supply chain & system integration centers from 10 to 2

10 supply chain nodes

PRE- TRANSFORMATION

Acquisition integration

N.A. fulfilling global

demand

S O L U T I O N S L E A D I N G T E S T A N D M E A S U R E M E N T C O M P A N Y

Page 48: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

TRANSFORMING A GLOBAL FLOOR CARE COMPANY SUPPLY

CHAIN

$350M WIN

Page 49: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

$350M WIN

Leverages end-to-end Flextronics Platform

Customer Impact • Real-time information • Flexibility • Scalability • Innovation • Visibility • Brand protection

Lead-time 35 weeks

PRE- TRANSFORMATION

5 EMS partners

Commit Process 14 days

Limited visibility

S U P P LY C H A I N T R A N S F O R M AT I O N F L O O R C A R E C O .

Page 50: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

FUEL ING INDUSTRIAL GROWTH

OPERATIONAL EXCELLENCE DRIVING HIGH CUSTOMER SATISFACTION

INVESTMENT IN PRODUCT DESIGN FUELING NEW GROWTH OPPORTUNITIES

CREATING TRANSFORMATIONAL SALES USING THE FLEXTRONICS PLATFORM

CONVERTING OUR STRONG PIPELINE OF OPPORTUNITIES TO ACHIEVE 10% - 15% GROWTH AND OPERATING MARGINS BETWEEN 4% - 6%

Page 51: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

2013 Investor & Analyst Day Mike Dennison, President

High Velocity Solutions

Page 52: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

1 . GLOBAL AND REGIONAL SOLUTIONS

Enabling Global Brands to Regionalize

Providing unique “customized” solutions to help customers grow in promising markets

Enabling Regional Brands to Globalize

Providing complete supply chain solutions to help customers expand globally

Global Scale and Breadth of Services Support Core Business

Page 53: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

2 . CORE ECOSYSTEMS

We Now Support All Five in Very Diverse Ways

Page 56: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Developing and Managing Supply Chains for the Future

Fundamentally changing the way businesses bring new ideas/products to market

5 . SUCCESSFULLY EXECUTE GOOGLE

Page 57: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

FIVE OBJECTIVES DRIVE SOL ID RESULTS

Thoughtful expansion of new customers and markets

Sustainable revenue growth

Profits in 2%+ range for FY’14

Ongoing innovation of services / solutions

Delivering supply chain excellence across the entire portfolio

Page 58: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

2013 Investor & Analyst Day Chris Collier, Chief Financial Officer

Page 59: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

2

A Financial Strategy That Supports Our Platform

Committed to increasing shareholder value

The Flextronics

Platform

Revenue Growth

Operating Profit

Expansion EPS

Accretion Cash Flow Generation

Capital Structure Strength

FINANCIAL PRINCIPLES

Page 60: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

FY13 Year in Review

Page 61: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

4

FY13 Performance - Revenue

Our execution was challenged by weak macro and customer demand softness

• Significant weakness in Multek • Power business program delays

INS

IEI

Components

HRS

HVS

$23.6B

INS

HVS

IEI HRS

May 2012

Target

Components

FY13 Actual

$26-27B • Significant weakness in telecom and server/storage

• Accelerated exit of RIM • Demand softness in consumer

• Weak demand in semi-cap • Strong growth in appliances

• Strong growth in Medical/Auto • Strategic acquisitions

Page 62: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

5

FY13 Performance – Adjusted Operating Margin

Factory under-absorption due to revenue reduction

Multek factory under-absorption due to revenue reduction

Strong operational execution despite sharp revenue reduction

Stable margin while revenue under pressure

Components

IEI

HVS

Performed to plan HRS

INS

Missing our target is not acceptable

2.6%

Components

HRS

INS

HVS IEI

3.3% May 2012

Target

FY13 Actual

Page 63: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

6

$182 $185 $200

$209

~ $215

Q1'13 Q2'13 Q3'13 Q4'13 FY14E SG&A* Expense Trend ($ Millions)

Investing in the Platform for Growth

Focused and disciplined investment to optimize our Platform

• Incremental spend associated with acquisitions

• Boosting innovation and our supply

chain solutions technologies • Enhancing selling and business

development capabilities • Incremental corporate infrastructure

Stabilized at ~$215M quarterly run rate

Quarterly run rate

*Adjusted SG&A includes Design and R&D expense but excludes stock compensation expense and restructuring charges

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Charges ($ Millions) FY’13 Q1’14E

Update Cash Charges $123 ~$30 - $35

Non-Cash Charges 104 ~5

Total Charges $227 ~$35 - $40

Restructuring Program Update

Program Benefits: • Estimated savings increased to ~$160M • Cost reductions in headcount, depreciation

and operating expense • 95% of savings associated with cost of sales

Positioned for improved operational efficiency and profitability

~$10M ~$20M

~$35M ~$40M

Q4'13 Q1'14 Q2'14 Q3'14

Savings Trajectory to ~$160M Estimated quarterly savings

Program Update: • Slight expansion to ~$35 - $40M • One additional factory closing and other

rationalization efforts • Accounting charges completed in Q1’14

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FY13 Year in Review

Achieved record quarterly revenue of ~$350M at its target margin

Securing new business broadly distributed across our portfolio

Repurchased 52M shares; brings our total net buyback to 27% of shares outstanding since FY09

$1B bond deal that extended our average debt maturity by ~3 years

Generated over $1B in Operating Cash Flow, and over $680M in Free Cash Flow

Exceptional bookings

Strong Cash Flow

Improved Capital Structure

Executed Share Repurchases

Re-Positioned Power Business

Despite some challenges this past year, we accomplished . . .

Further strengthening our competitiveness

Page 66: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Portfolio Management

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Diversification

Margins

Reduced Volatility

Working Capital

EPS Accretion

Flex

Balanced Portfolio Drives Optimal Shareholder Return

HVS 100%

Low-Volume High Mix 100% 60/40 70/30

Revenue OP EPS Revenue OP EPSRevenue OP EPS

Less Optimal Optimal

Page 68: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

FY14 Roadmap to Improved Performance

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Execution is paramount to achieve our desired results

Our Platform Creates Significant Earnings Expansion

1 Adjusted EPS is tax effected at 9% and assumes 650M shares outstanding

2 Adjusted operating profit reflects an estimated incremental $30M restructuring benefit achieved upon full savings run rate

Revenue

Operating Profit

Operating Margin

EPS1

~$750M

~$15M

~2.0%

~$350M

~$16M

~4.5%

-----

~$30M2

-----

-----

~$10M

-----

Google/MOT Muted

Seasonality Restructuring Other

$5.3B

~$106M

2.0%

13¢

March 2013

~$500M

~$23M

~4.5%

New Bookings

Ramp

$6.9B

~$200M

~2.9%

25¢

Revenue Growth

Path to 30%+ Growth

Page 70: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Cash Flow Generation & Capital Structure

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$175

$370

$518 $500 $500

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

($ Millions) Mar 31 2012

Mar 31 2013

Cash $1,518 $1,587

Debt 2,189 2,068

Net Debt 671 481

Debt/EBITDA¹ (LTM)

1.9x 1.9x

Total Liquidity² 2,878 3,087

Strong Capital Structure Significant Debt Maturities ($ Millions)

5% Sub. Notes 4.625% Sub. Notes

Our capital structure is in excellent shape and positioned to support our growth ¹ Debt/EBITDA: total funded debt divided by LTM EBITDA ² Total liquidity: cash at quarter-end plus unused revolver capacity

Term Loans

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Target $3 - $4 Billion

$3 Billion

715

855

622

463 416

680

FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14E FY'15E FY'16E FY'17E

Free Cash Flow Generation

Fundamentally Structured for Cash Flow Generation

• Growing operating profit

• Sustaining optimal working capital management

• Maintaining disciplined capex investments

Generating strong sustainable cash flow to support our growth

($ Millions)

Page 73: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

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Capital Allocation Strategy

~25% Strategic Acquisitions

• Strategic value • Revenue and operating growth • EPS accretive

~40% Capex

• Invest for top-line growth • Innovative solutions • Sustaining our platform

~35% Returning Value

• Committed to share repurchase • Potential for dividends

Creating shareholder value with a long-term vision

Page 74: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

Guidance & Key Takeaways

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Reiterate Guidance for Q1FY14 (June Qtr)

FLEX Business Groups JUN-13E Q/Q Outlook Integrated Network Solutions Flat Industrial & Emerging Solutions Low Single-Digit Growth High Reliability Solutions Flat High Velocity Solutions Low Double-Digit Growth

JUN-13E

Quarterly Revenue

($ Millions) $5,600

$5,300

Quarterly Adjusted EPS

$0.16

$0.12

Page 76: 2013 Investor & Analyst Day Mike McNamara, Chief Executive ... · 6 $182 $185 . $200 . $209 ~ $215 Quarterly Q1'13 Q2'13. Q3'13. Q4'13. FY14E. SG&A* Expense Trend ($ Millions) Investing

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Key Takeaways

Our Platform provides complete supply chain solutions Competitively Advantaged

Our financial principles are the foundation for growth Accountability

Positioned and committed to increasing shareholder value

Strategically investing and optimizing our Platform Smart Investments

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Appendix: Notes The non-GAAP financial measures included in this presentation: adjusted SG&A, adjusted operating profit & margin, adjusted EPS, debt to EBITDA and free cash flow may exclude certain amounts that are included in the most directly comparable measures under GAAP or may be a supplemental measure of operating performance. Adjusted financial measures exclude charges primarily for restructuring, stock-based compensation expense and intangible amortization. Please refer to the Investors section of our website which contain the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted operating margin by business group excludes intangible amortization, stock compensation expense and restructuring charges and represent approximations as the company does not include formal allocations of common facilities and overhead costs, or centralized corporate services such as marketing, IT and other administrative support. Although discrete financial information exists to a limited degree, the company opportunistically allocates its resources according to specific customer opportunity irrespective of the business group in which the business activity will be reported. Q1FY14E Guidance Notes: Quarterly GAAP earnings per diluted share are expected to be lower than the guidance provided herein by approximately $0.03 reflecting quarterly intangible amortization and stock-based compensation expense, and by approximately $0.06 for the remaining restructuring charges.