Caroline DowlingPresident, Communications &

Enterprise Compute (CEC)

Managing Through Industry Transformation

1

CEC Fast Facts

• Revenue $8.8B

• Sustaining strong capital efficiency

• Largest market share worldwide

• Over $2B New bookings & 14 New Customers

• Sketch-to-scaleTM

growth 15% revenue

$2.0B

$2.2B$2.5B

$2.2B

Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16

FY16 Quarterly Results

• Up 10%: Compute, Storage & Data Center

• Up 15%: Optical

• Up 9%: Communications

• Flat 0%: Networking

• Down 25%: Traditional Server/Storage

Note: Market Share excludes Hon Hai who does not break out revenues

2

CEC leading market share position

Wireless4G/5G

SDN Optical100G/400G

ConvergedStorage

Switching &IP Routing

TelecomNo.  1  WW

NetworkingNo. 1 WW

Enterprise ComputeNo. 1 WW

Security Appliance

World has changed

Time

Ma

turity

6-8 years

2002 2012

PublicCloud

EnterpriseCloud

TelcoCloud

3 - 4 years

2016

• Public clouds – mature

• Enterprises - builds accelerating

• Telco Providers –moving to Open Compute Solutions (OCP)

2020

3

4

Pillars enable growth

450 Dedicated Design Engineers Worldwide

Product Design & Joint Development Focus

• Converged

• Security Appliance

• Server SAN/Storage

• IP Routing & Switching

• Optical

• Wireless & Mobile Backhaul

Reference Product Platforms

• CloudLabs & Rack Scale Architecture (RSA)

• Open Source Initiatives e.g. Open Compute & Open Stack solutions

• Sketch to Scale “non-prescriptive” hardware & software solutions

• System Software Engineering

Cloud, Security and Rack Scale Architecture

Software Enabled

• Flex Configurator –Reduce order cycle from weeks to hours

• Flex Bench – accelerate production & test velocity

• Flex Fast – from concept to Cloud analytics engine

Proprietary IT & Software

>$2b new products launchedinto 8 manufacturing sites for 19 customers

5

Ibaraki, Japan

Cloud Node and Rack Scale Level ArchitectureDesign & Engineering

Taipei, Taiwan

Penang, Malaysia

India

Zhuhai, China

Shanghai, ChinaIsrael

Romania

Hungary

Trieste, Italy

Cork, Ireland

Ronneby, Sweden

Ottawa, Canada

Columbia, SC

Guadalajara, MX

Austin, Texas

Milpitas, CA

Vancouver, Canada

Brazil

The Flex advantage

Flex Engages Industry Leaders Strategy for growth

6

• Expansion of new market segment

• Open Source & Software defined infrastructure

• Expand customer base

• Converged Infrastructure

• Maintain leadership position

• Enable transition via hybrid

Core OEM

Solution Providers

Cloud

Disruptive OEM Solutions

Notes: COTS = Common Off The Shelf Hardware

7

Sketch-to-scaleTM delivers

Communications Networking Server & Storage Cloud & Data Center

Cloud-RAN Base Station

Switch Edge Routing Storage Platform

Cloud Storage Solution

Rack Scale Architecture

Confidential Confidential Confidential Confidential Confidential Confidential

~30% of FY20 revenues enabled via sketch-to-scale

Cloud, rack scale and node solutions

Architect

Switch

Compute

Storage

Integrate Test API/SW

Optimize Manufacture

Solutions Engineering Services

Support

Delivered via OEM Custom Hardware or Flex designed hardware

8

9

Key takeaways

Third quarter year over year revenue growth

Investments in design and technology are paying off in market expansionand new customer additions

Margin & key fundamentals stable, OP solid and strong cash flow generation

Revenue transition Sketch-to-ScaleTM FY13 at 3% to FY20 ~ 30%

Flex enables our customers to navigate through disruptive technologies and market transitions