Flextronics Investor Presentation - Investor Relations Solutions

Design. Build. Ship. Service.

Investor Presentation August 2011 1

Risks and Non-GAAP Disclosures This presentation contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from those set forth in this presentation. Such information is subject to change, and we undertake no duty or obligation to revise, update or inform you of any changes to forward-looking statements. For a discussion of the risks and uncertainties, you should review our filings with the Securities and Exchange Commission, specifically our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments thereto. This presentation references both GAAP and non-GAAP financial measures. Please refer to the schedules to the earnings press release and the GAAP vs. non-GAAP reconciliation in the “Investors” section of our website, which contain the reconciliation of the adjusted financial measures to the most directly comparable GAAP measures.

2

What Differentiates Flextronics? Scale. ~200,000+ employees (~15,000+ in Global Services alone) operating in 30 countries across four continents and including 9 geographically disperse industrial park locations.

Management Structure & Portfolio Approach. Four dedicated business groups supported by components, mechanicals, and services businesses.

Breadth. Truly integrated solutions and services that span the full product lifecycle, from design to manufacturing to distribution and a broad range of after market services. In-house vertical components ranging from PCBs and camera modules, to enclosures and power supplies.

Depth. Best-in-class service offerings ranging from high volume/low mix (focused in our industrial parks) to complex low volume/high mix where Flextronics Special Business Solutions (SBS) services more than 300 customers in over 20 locations worldwide.

Stability & Diversification. Annualized sales of over $30 billion. Solid diversification between high-mix/low-volume programs and high-volume/low-mix. Strong balance sheet with no material near-term debt maturities. Consistent cash flow generator.

3

Scale

A Powerful Differentiator: 9 Globally Diverse Industrial Parks & A Balanced Footprint  Square Footage Makeup:

48M Globally; 27M Manufacturing; 20M Across 9 Industrial Parks

Americas

(16M total/6M mfg)

Industrial Parks Guadalajara, Mexico Juarez, Mexico Sorocaba, Brazil

Europe (11M total/5M mfg)

Asia

Industrial Parks

Industrial Parks

Tczew, Poland Sarvar, Hungary Zala, Hungary

Chennai, India Zhuhai, PRC Shanghai, PRC

(21M total/16M mfg)

Other Manufacturing Regions * United States Malaysia Singapore Indonesia Other

* Note: All capacity references are to millions of square

feet and represent manufacturing square footage only

5

One Industrial Park Example – Zhuhai/Doumen China

Plastics, Metal and Assembly PCB Fab

PCB Fab

Mechanical Assembly PCB Assembly

PCB Fab

Rigid Flex & Flex Circuit

Plastics and Metal Cafeteria

Expansion

PCB Assembly Central Warehouse Bonded Warehouse

North Campus 66

Management Structure & Portfolio Approach

Four Key Business Groups

1

HIGH RELIABILITY SOLUTIONS

2

HIGH VELOCITY SOLUTIONS

3

INDUSTRIAL & EMERGING TECHNOLOGIES

4

INTEGRATED NETWORK SOLUTIONS

8

Business Group Expertise Avionics Flight & engine controls Ruggedized communications Wire harness for ground and air vehicles Night vision systems

Security Systems Surveillance Interior & exterior lighting solutions Power electronics applications

Connectivity applications Drug delivery Diagnostic equipment Telemedicine Disposable devices

Mobile phones Smart phones Wireless modules & products

Home entertainment equipment Game consoles Printers Copiers

All-in-one PC desktops Notebook & netbook computers PC & media tablets

Appliances & lifestyle solutions Equipment & self service solutions

CleanTech Emerging industries

Special Business Solutions

HIGH RELIABILITY HIGH RELIABILITY SOLUTIONS

11

HIGH VELOCITY HIGH VELOCITY SOLUTIONS

22

INDUSTRIAL & EMERGING INDUSTRIAL INDUSTRIES

33

SOLUTIONS

& EMERGING TECHNOLOGIES Networking Communications Server & storage Enterprise & home connectivity

INTEGRATED NETWORK INTEGRATED SOLUTIONS

44

SOLUTIONS

Design & manufacture of semi-custom and custom power supplies and battery chargers for OEMs

Post manufacturing supply chain services

NETWORK SOLUTIONS

9

FY11 Total Company Revenue Mix Four Business Groups High Reliability Solutions: • Medical • Consumer Health & Drug Delivery • Disposable Devices • Medical Equipment • Automotive: Connectivity, Lighting, Power, and Electronic Control Units • Aerospace & Defense

6%

43% High Velocity Solutions: • Mobile • Smart & Mobile Phones • Wireless Data Cards & Modules • Consumer • Gaming: Consoles & Accessories • Computing • EMS Computing • Printers • Tablets

Integrated Network Solutions: • Routers & Switches • Base Stations • Servers & Storage • Optical Switches • Connected Home

37%

14%

Industrial & Emerging Industries: • Semiconductor Capital Equipment • Test & Measurement • Renewable Energy (Solar & Wind) • LED Lighting • Office Automation • Smart Meters & Controls • Home Appliances • Kiosk & Self Service Solutions • Building Automation & Security

10

Fiscal 2011: Year Over Year Growth FY10

FY11

High Reliability Solutions 6%

High Reliability Solutions 6% Integrated Network Solutions 41%

Integrated Network Solutions 37%

+35% Y/Y

+8% Y/Y

+25% Y/Y

+26%

High Velocity Solutions 41% Industrial & Emerging Industries 12%

High Velocity Solutions 43%

Y/Y Industrial & Emerging Industries 14% 11

FLEX Approach is Working: Recent Customer Awards EMS Partner Operational Excellence Award and B2B Collaboration Award Excellence in supporting Cisco's ESTG (Enterprise Technology Switching Group)

Supplier-Enabled Innovation Award CSER Award

2010 & 2009 Excellent Core Partner Status (Gold Award) – The Highest Honor of All Awards Presented By Huawei. 2010 Award Given For Mobile And Infrastructure 2010 CSR Award

Collaboration & Performance Award

Award for New product family launch

Recognition for Production, Quality and availability of their WLAN product line

2011 & 2010 Best-In-Class Partner and 2010 Strategic Partner of the Year

Best Supplier 2010 Award from LG Manaus, Brazil

2009 Outstanding Supplier Partnership Award

Recognized for Timely Delivery of 10,000 Units of Alliance HPLC (High Performance Liquid Chromatograph)

Supplier Appreciation Award For Invaluable Support For Ball Bonder Division

Outstanding Performance Award For The New Product Introduction and Ramp Up of New Models .

Supplier of Collaboration Award (Multek)

Recognized for its outstanding performance and excellence in manufacturing PCBAs, backplanes and card cages.

Gold Supplier Award

Service Partner Award

Award for On-Time Delivery Rate and Quality

Award for long-term business partnership

Recognition for Guidance and Support of a Successful Completion of a Breakthrough Lean Project

Excellent Serviceability Award

Excellent Cooperation and Results for Box Build Outsourcing Award and Excellence Award in Auto Sampler New Product Launch

2010 Value Excellence Award Winner for exceeding Microsoft’s expectations in its Kinect product launch

FlexPower received Panasonic’s Excellent Partner Award

New Product Introduction (NPI) Award for Flextronics, Suzhou

12 * Does not include all customers

Breadth & Depth

Flextronics: A Global Technology Supply Chain Enabler

Over $30 Billion in Annualized Sales

~200,000+ Employees Globally; ~15,000 Logistics/Services

~120,000 Employees in Asia (~90,000 in China)

Operating in 30 Countries; 48M Sq Ft Globally Including Services; 27M Sq Ft of Manufacturing Capacity; 20M Sq Ft Located Across 9 Industrial Parks

14

Component Solutions Multek

1

-Rigid PCB (ELIC & HDI) -Flexible circuit -Touch panels - Materials - LCD Displays

Vistapoint (Camera Modules)

2

Industry leader in design, manufacturing and delivery of the most complex camera modules with the lowest form factor profiles

FlexPower

3

1 to 3000 Watt Chargers, Adapters, Power Supplies 120 Patents Highest efficiency power supplies

15

Vertical Capabilities We expect verticals to support margin recovery as demand improves 1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Printed Circuit Boards General Plastics Tooling Soft Tool Sheet Metal Hard Tool Sheet Metal Mobile Phone Plastics Camera Modules Flex Circuit Boards Materials Power Supplies (300W)

Expanded capabilities with touch screens and power supplies

16

Solid Component & Services Penetration into Leading Smart Power

Camera Modules

Rigid PCBs

Flex Circuit

Phone OEMs

Global Services

Mechanicals

Customer A Customer B Customer C Customer D Customer E Customer F Customer G Customer H Customer I

- In development

- Sampling products

- Customer

Blank – No Activity

17

Where Do Components + Mechanicals + Services Fit Into Flextronics? High Reliability Solutions 6%



Components + Mechanicals + Services

Industrial & Emerging Industries 14%

FY11

18

Service Solutions – Over 15,000 People Worldwide

1 3 5

Reverse Logistics & Repair • Return Logistics • Repair • Remanufacturing • Exchange Fulfillment • Recycle/E-waste

Service Parts Logistics • Centralized Mat’l Planning • Procurement Execution • ASP Management • IT Systems Design

Field Services • In-Home In-Office Services •Technical Installation Services • Home Theatre Set Up • Home Wireless Network • Full SMB Technology Support

2 4 6

Distribution & SMI • Channel Fulfillment • Hub Operations • Kitting • Kanban Replenishment • FG Merge

Product Transformation • Built-to-Order • Configure-to-Order • Product Postponement • Supply Chain Design

In Store Technical Services and Sales • In Store Repair • Technical Services • Post Sale Support • Diagnostic Analysis • Memory upgrades • Email Set up & Support 19

Stability & Diversification

History of Stable Revenue Growth

First Call Estimate

10 Year CAGR of 15%

First Call Estimate

2009 Recession (FY10) Marked Only Materially Down Year Since FY95.

First Call Estimate

3 Year Consensus Forecasted CAGR of 6%

US$ (Mil)

*FY12-FY14 Source: First Call Consensus Estimates (8/08/11)

21

Large Total Available Market (TAM) Provides Growth Opportunities Total Available Market ($B) 100

200

300

400

Traditional EMS PCB Power LCD Displays Optomechatronics Services

Clean Tech TOTAL

22

IDC’s World-Wide EMS Industry Revenue Forecast

World-Wide EMS Revenues

US$ (Bil)

Source: IDC (updated February 2011)

23

Financial Stability: Cash, Debt and Debt Maturities Profile JUN-10

SEP-10

DEC-10

MAR-11

JUN-11

$1,731

$1,788

$1,598

$1,748

$1,558

2,394

2,232

2,231

2,220

2,214

Net Debt

663

444

633

472

656

Debt/EBITDA

2.2x

1.9x

1.9x

1.8x

1.8x

($ in Millions)

Cash Total Debt

(LTM)

Significant Debt Maturities by Calendar Year – as of 7/1/11 $4,000

$3,398

($ in Millions)

$3,000

$1,840 (Revolver) $2,000

$1,370 $1,000

$1,558

$660

(Cash)

$1,170

$160

$500

$177

$0

Liquidity

2011 Liquidity

2012 Asia Term Loans

2013 Term Loan

$200

2014

Revolver

Please refer to the schedules to the respective earnings press release and the Investors section of our website which contain the reconciliation of the adjusted financial measures to the most directly comparable GAAP measures.

24

Geographic Diversification Our global scale and flexibility are key competitive advantages •

Customers increasingly require solutions that can only be achieved through significant global scale and lower cost

•

We restructured our global operations to gain efficiencies by shifting manufacturing capacity to different locations

•

We leverage our worldwide supplier relationships to gain advantageous pricing and supply chain flexibility for customers

Operations in 30 countries across 4 continents

19% 10%

38% 15%

Annual Sales Breakdown by Country:

Asia China Singapore Malaysia Other Asia Americas U.S. Mexico Other Americas Europe Europe Total

Fiscal 2011 % of Sales 10,938,979 38% 578,168 2% 2,595,174 9% 694,025 2% Fiscal 2011 % of Sales 2,954,462 10% 4,241,222 15% 1,147,143 4% Fiscal 2011 % of Sales 5,530,752 19% 28679925 100%

* Per 10-K for the annual period ended 3-31-11

4%

13%

Headcount Breakdown by Country: Asia % of Total China 95,326 46% Malaysia 14,919 7% Other Asia 8,375 4% Americas % of Total Mexico 27,956 13% U.S. 8,859 4% Brazil 6,702 3% Europe % of Total Hungary 12,323 6% Other EMEA % of Total Other EMEA 33,869 16% Total 208,329 100%

25

Business Diversification: Multi-Year Portfolio Evolution FY07



FY11





FY13E







26

Financial Results for First Quarter Fiscal Year 2012 Quarter Ended July 1, 2011 Earnings Announcement: July 21, 2011

27

Analysis of Revenue by Business Group ($ in millions) Business Groups as a Percentage of Total Company Revenue JUN-10

SEP-10

DEC-10

MAR-11

JUN-11

$

% Total

$

% Total

$

% Total

$

% Total

$

% Total

Integrated Network Solutions

$2,489

38%

$2,716

37%

$2,826

36%

$2,516

37%

$2,770

37%

Industrial & Emerging Industries

$1,022

16%

$1,001

13%

$916

12%

$987

14%

$1,150

15%

$421

6%

$444

6%

$487

6%

$511

7%

$567

7%

High Velocity Solutions

$2,634

40%

$3,261

44%

$3,603

46%

$2,845

42%

$3,061

41%

Total Revenue

$6,566

100%

$7,422

100%

$7,832

100%

$6,859

100%

$7,548

100%

Business Group

High Reliability Solutions

Revenue Growth Performance by Business Group Y/Y Growth

Q/Q Growth

Business Group

JUN-10

JUN-11

Y/Y %

MAR-11

JUN-11

Q/Q %

Integrated Network Solutions

$2,489

$2,770

11%

$2,516

$2,770

10%

Industrial & Emerging Industries

$1,022

$1,150

13%

$987

$1,150

17%

$421

$567

35%

$511

$567

11%

High Velocity Solutions

$2,634

$3,061

16%

$2,845

$3,061

8%

Total Revenue

$6,566

$7,548

15%

$6,859

$7,548

10%

High Reliability Solutions

28

Update On ODM PC Exit

June Qtr FY12

ODM PC

Adjusted June Qtr FY 12

$7,548

663

$6,885

Adj. Operating Income/(Loss)

197

(19)

216

Adj. Operating Margin

2.6%

-2.8%

3.1%

Revenue

Adjusted operating income and margins for ODM PC are 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 market segment in which the business activity will be reported.

29

Trended Quarterly Income Statement Highlights Revenue

Adjusted Operating Income

$6,000

$7,833

Adjusted OP($ in Millions)

($ in millions)

$7,422

$250

$7,548 $6,859

$6,566

$4,000

$2,000

$0

Sep-10

Dec-10

Mar-11

3.0% 2.8% $232

3.0%

2.6%

$213

$200

$190

$189

$197

4.4%

4.3%

1.0% $100

Dec-10

Mar-11

Jun-11

$0.30

5.0%

4.4% 3.9%

4.0% 3.0%

$299

Sep-10

Adjusted Earnings Per Share (EPS)

$317 $289

0.0%

Jun-10

$295 2.0% 1.0%

$225

0.0%

Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

EBITDA as a % of Revenue

$325

4.3% $335

2.0%

$150

Jun-11

Adjusted EBITDA EBITDA ($ in Millions)

2.9%

$50

Jun-10

$275

2.9%

Adjusted OP as a % of Revenue

$8,000

$0.25

$0.25 $0.23

$0.20

$0.21

$0.21

Mar-11

Jun-11

$0.19 $0.15

$0.10

Jun-10

Sep-10

Dec-10

Please refer to the schedules to the respective earnings press release and the Investors section of our website, which contain the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures.

30

Working Capital Management & ROIC Net Working Capital

Inventory Management $4,000

10.0 x

$3,738

$1,900

$3,321 $3,000

8.0 x

8.3 x

8.1 x

7.8 x

8.0 x

7.3 x $2,000 7.0 x

$1,000

6.0 x

Jun-10

Sep-10

Mar-11

Dec-10

Inventory Turns

Inventory ($ in Millions)

9.0 x

Net Working Capital ($ in Millions)

$3,550

$3,523

$1,700

$1,559

$1,500

5.3%

$1,100

8% 7%

$1,558

$1,386

$1,300

6%

6.0%

5.7%

$1,158

5%

5.0%

4%

$900

3.9%

$700

3%

$500

2%

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Jun-11

Cash Conversion Cycle (in Days)

Return on Invested Capital

25

35%

20 20

19

14

ROIC %

14

15

29.0%

30%

16

Days

$1,803

NWC as a % of Annualized Revenue

$3,639

10

27.1%

27.6%

Dec-10

Mar-11

24.7%

26.5%

25%

20%

5 0

15%

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Jun-10

Sep-10

Jun-11

Net Working Capital = Net A/R and Net Inventory less A/P CCC and Net Working Capital – excludes non-cash reductions to AR from our AR sales programs for all periods. ROIC – The Company changed the ROIC calculation in the current quarter to be LTM adjusted operating income net of taxes divided by the sum of stockholders’ equity plus net debt. Prior periods have been restated. Please refer to the schedules to the respective earnings press release and the Investors section of our website which contain the reconciliation of the adjusted financial measures to the most directly comparable GAAP measures.

31

Summary Statement of Cash Flows Three Months Ended ($ in thousands) GAAP net income Depreciation and amortization Change in working capital and other

Jun-11 $

Net cash provided by operating activities Purchases of property & equipment, net of dispositions

136,411 (112,670)

Free Cash Flow

23,741

Payments for re-purchase of ordinary shares Net bank borrowings (repayments and retirements) Other net change in cash Net change in cash and cash equivalents

131,975 116,027 (111,591)

(199,999) (6,889) (7,516) $

(190,663)

32

Cash, Debt and Debt Maturities Profile JUN-10

SEP-10

DEC-10

MAR-11

JUN-11

$1,731

$1,788

$1,598

$1,748

$1,558

2,394

2,232

2,231

2,220

2,214

Net Debt

663

444

633

472

656

Debt/EBITDA

2.2x

1.9x

1.9x

1.8x

1.8x

($ in Millions)

Cash Total Debt

(LTM)

Significant Debt Maturities by Calendar Year – as of 7/1/11 $4,000

$3,398

($ in Millions)

$3,000

$1,840 (Revolver) $2,000

$1,370 $1,000

$1,558

$660

(Cash)

$1,170

$160

$500

$177

$0

Liquidity

2011 Liquidity

2012 Asia Term Loans

2013 Term Loan

$200

2014

Revolver

Please refer to the schedules to the respective earnings press release and the Investors section of our website which contain the reconciliation of the adjusted financial measures to the most directly comparable GAAP measures.

33

Pro forma View of Cash Usage in Normalized Period Net Capex 40%

• With Debt/EBITDA moving to < 2X, cash for deleveraging will be minimal as will the need to build additional cash balances • “Tuck In” acquisition strategy will keep spend levels minimized • Capex will approximate depreciation expense under normalized market conditions

Excess Cash 25%

Acquisitions 25% Cash Build 10%

• With the normalized spend levels noted above, there remains 25% of operational cash flow available to be deployed

34

Appendix: Fiscal 2011 (ended 3/31/11)

35

Annual Highlights – Fiscal 2011 Revenue

• Increased revenue by $4.6B or 19% year-over-year • Drove strong organic growth with no material M&A activity • Achieved year-over-year double digit growth in all market segments

GAAP and Adjusted Profit & EPS

• Improved fiscal 2011 quality of earnings, and achieved record GAAP net income and GAAP EPS • Increased fiscal 2011 adjusted operating profit by 38% (2x our revenue growth rate) • Increased fiscal 2011 adjusted EPS by 64% (3x our revenue growth rate)

Free Cash Flow & Share Buybacks

• Generated free cash flow of $208M (quarter) and $463M (fiscal year) • Repurchased 65M shares for $400M during the year at $6.12 avg cost • Reduced weighted average shares outstanding (WASO) over 6%, from 827M to 776M • Achieved record ROIC of 30.5% for fiscal 2011

36

Strong Revenue Growth FY10 – FY11 Segments Infrastructure Industrial Medical Computing Mobile & Consumer Multek Optomechatronics Power Services

5 – 10 % 10 – 20 % > 20 %

Key Customers

• Broad based infrastructure market penetration • Impressive growth across existing and emerging industrial and medical markets • Servers driving some downside, being increasingly selective on ODM • Multek growing all businesses successfully • Remaining segments all had significant growth with the exception of Services. However, Services reached record profitability 37

Contact Kevin Kessel Vice President – Investor Relations kevin.kessel@flextronics.com 408-576-7985