FLEX REPORTS SECOND QUARTER FISCAL 2025 RESULTS

SCHEDULE I

FLEX

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In tens of millions, aside from in step with percentage quantities)

3-Time Sessions Ended

September 27, 2024

September 29, 2023

GAAP:

Internet gross sales

$                           6,545

$                           6,933

Price of gross sales

5,998

6,411

Restructuring fees

16

3

Improper benefit

531

519

Promoting, basic and administrative bills

216

221

Restructuring fees

2

—

Intangible amortization

16

17

Working source of revenue

297

281

Pastime expense

53

49

Pastime source of revenue

16

15

Alternative fees (source of revenue), web

(4)

14

Source of revenue from proceeding operations sooner than source of revenue taxes

264

233

Provision for (have the benefit of) source of revenue taxes

50

32

Internet source of revenue from proceeding operations

214

201

Internet source of revenue from discontinued operations, web of tax

—

205

Internet source of revenue

214

406

Internet source of revenue as a consequence of noncontrolling hobby

—

178

Internet source of revenue as a consequence of Flex Ltd.

$                              214

$                              228

GAAP EPS

Diluted income in step with percentage from proceeding operations

$                             0.54

$                             0.45

Diluted income in step with percentage from discontinued operations

—

0.06

Diluted income in step with percentage as a consequence of the shareholders of Flex Ltd.

$                             0.54

$                             0.51

Diluted stocks impaired in computing in step with percentage quantities

400

448

See Agenda II for the reconciliation of GAAP to non-GAAP monetary measures. See the accompanying notes on Agenda V hooked up to this press leave.

FLEX

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In tens of millions, aside from in step with percentage quantities)

Six-Time Sessions Ended

September 27, 2024

September 29, 2023

GAAP:

Internet gross sales

$                         12,859

$                        13,825

Price of gross sales

11,825

12,810

Restructuring fees

32

20

Improper benefit

1,002

995

Promoting, basic and administrative bills

429

456

Restructuring fees

11

6

Intangible amortization

32

37

Working source of revenue

530

496

Pastime expense

109

105

Pastime source of revenue

32

31

Alternative fees (source of revenue), web

(3)

25

Source of revenue from proceeding operations sooner than source of revenue taxes

456

397

Provision for (have the benefit of) source of revenue taxes

103

49

Internet source of revenue from proceeding operations

353

348

Internet source of revenue from discontinued operations, web of tax

—

269

Internet source of revenue

353

617

Internet source of revenue as a consequence of noncontrolling hobby

—

203

Internet source of revenue as a consequence of Flex Ltd.

$                              353

$                              414

GAAP EPS

Diluted income in step with percentage from proceeding operations

$                             0.87

$                             0.77

Diluted income in step with percentage from discontinued operations

—

0.15

Diluted income in step with percentage as a consequence of the shareholders of Flex Ltd.

$                             0.87

$                             0.92

Diluted stocks impaired in computing in step with percentage quantities

405

452

See Agenda II for the reconciliation of GAAP to non-GAAP monetary measures. See the accompanying notes on Agenda V hooked up to this press leave.

SCHEDULE II

FLEX

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES ⁽¹⁾

(In tens of millions, aside from in step with percentage quantities)

3-Time Sessions Ended

September 27, 2024

September 29, 2023

GAAP running source of revenue

$                              297

$                              281

Intangible amortization

16

17

Hold-based repayment expense

28

28

Restructuring fees

17

1

Non-GAAP running source of revenue

$                              358

$                              327

GAAP provision for source of revenue taxes

$                                 50

$                                 32

Intangible amortization receive advantages

4

3

Alternative tax linked changes

15

(3)

Non-GAAP provision for source of revenue taxes

$                                 69

$                                 32

GAAP web source of revenue from proceeding operations

$                              214

$                              201

Intangible amortization

16

17

Hold-based repayment expense

28

28

Restructuring fees

17

1

Prison and alternative

—

—

Pastime and alternative, web

(1)

8

Changes for taxes

(19)

—

Non-GAAP web source of revenue from proceeding operations

$                              255

$                              255

Diluted income in step with percentage from proceeding operations:

GAAP 

$                             0.54

$                             0.45

Non-GAAP

$                             0.64

$                             0.57

See the accompanying notes on Agenda V hooked up to this press leave.

FLEX

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES ⁽¹⁾

(In tens of millions, aside from in step with percentage quantities)

Six-Time Sessions Ended

September 27, 2024

September 29, 2023

GAAP running source of revenue

$                              530

$                              496

Intangible amortization

32

37

Hold-based repayment expense

60

60

Restructuring fees

42

24

Prison and alternative

—

3

Non-GAAP running source of revenue

$                              664

$                              620

GAAP provision for source of revenue taxes

$                              103

$                                 49

Intangible amortization receive advantages

7

6

Alternative tax linked changes

13

6

Non-GAAP provision for source of revenue taxes

$                              123

$                                 61

GAAP web source of revenue from proceeding operations

$                              353

$                              348

Intangible amortization

32

37

Hold-based repayment expense

60

60

Restructuring fees

42

24

Prison and alternative

—

3

Pastime and alternative, web

(1)

9

Changes for taxes

(20)

(12)

Non-GAAP web source of revenue from proceeding operations

$                              466

$                              469

Diluted income in step with percentage from proceeding operations:

GAAP 

$                             0.87

$                             0.77

Non-GAAP

$                             1.15

$                             1.04

See the accompanying notes on Agenda V hooked up to this press leave.

SCHEDULE III

FLEX

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In tens of millions)

As of September 27, 2024

As of March 31, 2024

ASSETS

Stream belongings:

Money and coins equivalents

$                                   2,601

$                            2,474

Accounts receivable, web of allowance for unsure accounts

3,502

3,033

Assurance belongings

595

249

Inventories

5,466

6,205

Alternative modern belongings

1,187

1,031

Overall modern belongings

13,351

12,992

Detail and kit, web

2,254

2,269

Working rent right-of-use belongings, web

581

601

Benevolence

1,146

1,135

Alternative intangible belongings, web

223

245

Alternative non-current belongings

1,031

1,015

Overall belongings

$                                 18,586

$                         18,257

LIABILITIES AND SHAREHOLDERS’ EQUITY

Stream liabilities:

Storehouse borrowings and modern portion of long-term debt

$                                       531

$                                 —

Accounts payable

5,144

4,468

Gathered payroll and advantages

473

488

Deferred income and visitor operating capital advances

2,134

2,615

Alternative modern liabilities

1,024

968

Overall modern liabilities

9,306

8,539

Lengthy-term debt, web of modern portion

3,178

3,261

Working rent liabilities, non-current

476

490

Alternative non-current liabilities

623

642

Overall liabilities

13,583

12,932

Overall Flex Ltd. shareholders’ fairness

5,003

5,325

Overall liabilities and shareholders’ fairness

$                                 18,586

$                         18,257

SCHEDULE IV

FLEX

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In tens of millions)

Six-Time Sessions Ended

September 27, 2024

September 29, 2023

CASH FLOWS FROM OPERATING ACTIVITIES:

Internet source of revenue

$                            353

$                            617

Depreciation, amortization and alternative impairment fees

257

260

Adjustments in operating capital and alternative, web

49

(514)

Internet coins supplied by means of running actions

659

363

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of quality and kit

(214)

(319)

Proceeds from the disposition of quality and kit

6

19

Alternative making an investment actions, web

2

3

Internet coins impaired in making an investment actions

(206)

(297)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from deposit borrowings and long-term debt

499

2

Bills of deposit borrowings, long-term debt and alternative financing liabilities

(57)

(398)

Bills for repurchases of usual stocks

(757)

(506)

Proceeds from issuances of Nextracker stocks

—

552

Fee for acquire of Nextracker LLC gadgets from TPG

—

(57)

Alternative, web

(6)

(53)

Internet coins impaired in financing actions

(321)

(460)

Impact of trade charges on coins and coins equivalents

(5)

—

Internet alternate in coins and coins equivalents

127

(394)

Money and coins equivalents, starting of era

2,474

3,294

Money and coins equivalents, finish of era

$                         2,601

$                        2,900

To complement Flex’s unaudited decided on monetary knowledge introduced in line with U.S. Usually Authorized Accounting Rules (“GAAP”), the Corporate discloses sure non-GAAP monetary measures that exclude sure fees and beneficial properties, together with non-GAAP running source of revenue, non-GAAP web source of revenue and non-GAAP web source of revenue in step with diluted percentage. Those supplemental measures exclude sure criminal and alternative fees, restructuring fees, customer-related asset impairments (fixes), stock-based repayment expense, intangible amortization, alternative discrete occasions as acceptable and the linked tax results. Those non-GAAP measures aren’t in response to or an spare for GAAP and could also be other from non-GAAP measures impaired by means of alternative firms. We consider that those non-GAAP measures have boundaries in that they don’t replicate the entire quantities related to Flex’s result of operations as motivated in response to GAAP and that those measures must most effective be impaired to judge Flex’s result of operations at the side of the corresponding GAAP measures. The presentation of this spare knowledge isn’t intended to be regarded as in isolation or as an alternative to probably the most at once related GAAP measures. We catch up on the constraints of non-GAAP monetary measures by means of depending upon GAAP effects to achieve a whole image of the Corporate’s efficiency.

In calculating non-GAAP monetary measures, we exclude sure pieces to facilitate a evaluate of the comparison of the Corporate’s running efficiency on a period-to-period foundation as a result of such pieces aren’t, in our view, linked to the Corporate’s ongoing operational efficiency. We usefulness non-GAAP measures to judge the running efficiency of our trade, for comparability with forecasts and strategic plans, for calculating go back on funding, and for benchmarking efficiency externally towards competition. As well as, control’s incentive repayment is motivated the use of sure non-GAAP measures. Additionally, when comparing doable acquisitions, we exclude sure pieces described under from attention of the objective’s efficiency and valuation. Since we discover those measures to be helpful, we consider that buyers have the benefit of visible effects “through the eyes” of control along with visible GAAP effects. We consider that those non-GAAP measures, when learn at the side of the Corporate’s GAAP financials, serve helpful knowledge to buyers by means of providing:

• the power to assemble extra significant period-to-period comparisons of the Corporate’s ongoing running effects;
• the power to higher determine developments within the Corporate’s underlying trade and carry out linked pattern research;
• a greater figuring out of ways control plans and measures the Corporate’s underlying trade; and
• an more straightforward strategy to examine the Corporate’s running effects towards analyst monetary fashions and running result of competition that complement their GAAP effects with non-GAAP monetary measures.

Please see are explanations of each and every of the changes that we incorporate into non-GAAP measures, in addition to the explanations for with the exception of each and every of those person pieces within the reconciliations of those non-GAAP monetary measures:

Hold-based repayment expense is composed of non-cash fees for the estimated honest price of unvested limited percentage gadgets granted to workers and assumed in trade acquisitions. The Corporate believes that the exclusion of those fees supplies for extra correct comparisons of its running effects to see firms because of the various to be had valuation methodologies, subjective guesses and the number of award varieties. As well as, the Corporate believes it comes in handy to buyers to know the particular have an effect on stock-based repayment expense has on its running effects.

Intangible amortization is composed essentially of non-cash fees that may be impacted by means of, amongst alternative issues, the timing and magnitude of acquisitions. The Corporate considers its running effects with out those fees when comparing its ongoing efficiency and forecasting its income developments, and subsequently excludes such fees when presenting non-GAAP monetary measures. The Corporate believes that the overview of its operations with the exception of those prices is related to its overview of inner operations and comparisons to the efficiency of its competition.

Restructuring fees come with severance fees at present websites and company SG&A purposes in addition to asset impairment, and alternative fees linked to the closures and consolidations of sure running websites and focused actions to restructure the trade. Those prices would possibly range in dimension in response to the Corporate’s tasks, aren’t at once linked to ongoing or core trade effects, and don’t replicate anticipated week running bills. Those prices are excluded by means of the Corporate’s control in assessing modern running efficiency and forecasting its income developments and are subsequently excluded by means of the Corporate from its non-GAAP measures.

Throughout the 3 and six-month classes ended September 27, 2024, the Corporate identified roughly $17 million and $42 million of restructuring fees respectively, and all through the 3 and six-month classes ended September 29, 2023, the Corporate identified $1 million and $24 million of restructuring fees respectively. These kinds of fees are linked to worker severance.

Prison and alternative consist essentially of prices indirectly linked to core trade effects and would possibly come with issues on the subject of industrial disputes, executive regulatory and compliance, highbrow quality, antitrust, tax, function or shareholder problems, product legal responsibility claims and alternative problems on an international foundation in addition to acquisition linked prices. Throughout the primary part of fiscal while 2024, the Corporate collected for sure loss contingencies the place losses have been regarded as possible and estimable. Those prices are excluded by means of the Corporate’s control in assessing modern running efficiency and forecasting its income developments and are  subsequently excluded by means of the Corporate from its non-GAAP measures. Deny such prices have been incurred within the first part of fiscal while 2025.

Pastime and alternative, web encompass numerous alternative varieties of pieces that aren’t at once linked to ongoing or core trade effects, such because the achieve or losses linked to sure divestitures, forex translation retain write-offs upon liquidation of sure criminal entities, debt extinguishment prices and impairment fees or beneficial properties related to sure non-core investments. The Corporate excludes this stuff as a result of they aren’t linked to the Corporate’s ongoing running efficiency or don’t impact core operations. Apart from those quantities supplies buyers with a foundation to match Corporate efficiency towards the efficiency of alternative firms with out this variability.

Changes for taxes relate to the tax results of the numerous changes that we incorporate into non-GAAP measures to deliver to serve a extra significant measure on non-GAAP web source of revenue and likely changes linked to non-recurring settlements of tax contingencies or alternative non-recurring tax fees, when acceptable.  Throughout the 3 and six-month classes ended September 27, 2024, the Corporate identified a $19 million and $20 million web tax receive advantages respectively, and all through the six-month era ended September 29, 2023, the Corporate identified a $12 million web tax receive advantages, linked to the tax results of numerous changes which are included into non-GAAP measures.