Caroline DowlingPresident, Communications and

Enterprise Compute (CEC)

Connected Intelligence

Communications and Enterprise Compute (CEC)

» Revenue FY17 $8.4B − Cloud Data Center: Up 14% YoY − Communications: Up 1% YoY via Optical − Networking: Down -2%− Traditional Server, Storage: Down -35%

» Strong capital efficiency

» FY17 Sketch-to-ScaleTM growth 21% YoY > $1B

» $2B in bookings and 18 new customers

Sketch-to-Scale Value PropositionTo create a smarter more connected world

3

Smart Cities

M2M and Robotics

IEI

Digital Health

Autonomous Driving

HRS

Born in the Cloud Providers Telco Cloud Transformation Enterprise Hybrid Cloud

Mobile Device

Connected Living

Augmented Reality

CTG5G

CEC

Cloud and Edge Computing

Connected Things / Connected Intelligence

Sketch-to-Scale Innovation

Public Cloud 2014Commodity Hardware

Switch

Storage

Computing

Enterprise 2014Proprietary Hardware

Switch

Storage

Computing

» CEC develops reference platforms addressing the shift to custom and semi-custom solutions− Cloud infrastructure and data center − Enterprise convergence− Telco new architecture / technologies

» CEC is accelerating development via Sketch-to-Scale− Technology building blocks

» Enabling− Global deployment via our platform

Sketch-to-Scale Innovation

Public Cloud 2014Commodity Hardware

Switch

Storage

Computing

Enterprise 2014Proprietary Hardware

Switch

Storage

Computing

» CEC develops reference platforms addressing the shift to custom and semi-custom solutions− Cloud infrastructure and data center − Enterprise convergence− Telco new architecture / technologies

» CEC is accelerating development via Sketch-to-Scale− Technology building blocks

» Enabling− Global deployment via our platform

Hybrid and Public Cloud 2018Virtualized, Software Defined

Commodity and Custom / Semi-Custom Hardware

Switch

Storage

Converged Infrastructure

ComputingEdge

Cloud and Communication Solutions

Networking

Compute

Storage

ConvergedInfrastructure

Radio 4.5GSmall Cells

Optical Front Haul

Building Blocks Software and Cloud Labs Rack Scale SolutionsConsortium

Sketch-to-Scale Accelerates Sketch-to-Scale 12% of Revenue FY17 to ~30% FY20

FY15 FY17 FY20

ProductPlatforms

Core R&DEngineers

SoftwareEngineers

12 27 60

293 458 800

60 98 200

Proactive Innovation

Device Top Cover

2.5” Storage Module x 24

Compute with I/O Sled x 2

2000 W PSU x 2

BBU x 2

Fabric Plane

Service Top Cover

BBU Board x 2

Customer ‘X’

Product Requirements

System Architecture

Software – Product

Software – BIOS / System

Mgt.

Software Bring -up

Diags

Electronics HW

PCB Layout

Mechanical

Validation – System

Validation – HW

Mfg. Test and Process Dev

NVMe All Flash Storage Array Platform with PCIe Fabric

Sketch-to-Scale

Hyper-Scale Open Compute Solution

» OCP V2 rack solution, mechanical and thermal design

» Next-generation dual-processor Skylake compute sled

» 32x100G Top-of-Rack switch based on Broadcom silicon

» 2U OCP storage platform

» Liquid cooling solution

» Power shelf

Radio Module 4G to 4.5G

» Multiple radio projects in development

» Investing in RF and radio expertise to leverage for 5G

» Tier 1 OEM customers

» Hardware design and validation by Flex

» Supplier development for microwave cavity filters

Portfolio Evolution

Flex Portfolio Evolution via Sketch-to-Scale

12%

88%

FY17

~30%

~70%

FY20E

Sketch-to-Scale: Communications, Converged Enterprise and Cloud

Traditional OEM

Portfolio Evolution

12%

88%

FY17

~30%

~70%

FY20E

Flex Portfolio Evolution via Sketch-to-Scale

Portfolio Evolution

Operating Profit Range

Revenue Projections

Sketch-to-Scale: Communications, Converged Enterprise and Cloud

Traditional OEM

FY17 FY18E FY19E FY20E

Growth Inflection Point

$8.4B

3.5%2.5%

Executive Summary

» Investment strategy in product platforms yielding results

» Sketch-to-Scale enables portfolio transition and diversification to ~30% of revenue

» Expanding new customers, 18 new logos this past year

» Margin and key fundamentals stable with strong cash flow generation

» Guidance remains unchanged