revolutionizing industries for long-term growth industries for long-term growth ctg at a glance...

Mike DennisonPresident, Consumer Technologies Group (CTG)

Revolutionizing Industries for Long-Term Growth

CTG at a Glance

$6.4B Revenue ($M)

$1,314

$1,665 $1,849

$1,535

Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17

FY17 Updates» $1B in new bookings

» 50 new accounts

» 195 new programs awarded

» $1.4B increase YoY revenue for Connected Home and Audio

» 27% of revenue is Sketch-to-ScaleTM

» BOSE partnership announced

» 2 new Audio factories

» Nike Q4FY17 mass production

Continuing to Invest in Growing Markets

60%

17%22%

0%

Traditional ConnectedHome

Wearables AR/ VR

2017 2020

15–20%

30–35%

15–20%

Traditional ConnectedHome

Wearables AR/VR

35–40%

% of total CTG business

Digital Health

2015–2020 data points ($B), CAGR

Connected Living Augmented Reality/ Virtual Reality

STRATEGIC

CORE

ICE

FY16

Higher Margins and Operating Profit

STRATEGIC

CORE

ICE

Higher Margins and Operating Profit

Operating Profit

Customers Added

Revenue Growth

6%+ 404%

<3% 4-14%

4%* 69%

FY17 Achieved

*Not including Nike investment

Executing Sketch-to-Scale™

Design Prototyping RepairLogisticsManufacturing Tax and Trade

Sketch-to-Scale Revenue

18%

27%

~35%

~40%

~45%FY20

FY19

FY18

FY17

FY16

Increasing Development of Growth Vectors

AR/VR» Gaming» Entertainment» Education» Customer Service

Fashion» Footwear» Connected Jewelry» Smart Apparel» Smart Accessories

Connected Home» Voice-Controlled Assistants» Home Gateways» Media Devices» Connected Audio

Wearables» Headsets and Headphones» Smart Watches» Hearables» Bio-authentication

Consumer Health» Biometric Monitors» Telehealth» Home Health Monitoring

Consumer AI» Smart Robots» Smart Toys» Automotive After-Market» Drones

2%+

2–3% 2–3%

2–4%

FY14 FY15 FY16 FY17 FY18 FY19 FY20

CTG OP%

Investment Year

1.3%

2.4% 2.3%

2.8%

3.5–5%

Drving Step Function Change

% = OP Range% = Actuals

2–4%

Drive financialupside

Proliferate technology

solutions

One team relationship

model

Get closerto the

consumer

Make great products

at scale

Our Collective Goals

~1 million sqft. of capacity

“When you’re wearing the QC30s and the noise canceling is cranked, practically nothing is going to interfere with your music – or your concentration.”

“When you’re wearing the QC30s and the noise canceling is cranked, practically nothing is going to interfere with your music – or your concentration.”

“Skullcandy is very excited to join the Flex family…their track record for quality, speed and efficiency combined with the vast resources they provide to support product development will accelerate Skullcandy’s market competitiveness and roadmap.”

- Jason HodellChief Executive Officer

"Our partnership with Flex is allowing us to merge connectivity and technology innovation with true fashion and design, which is transforming customers' expectations for the entire wearables category.“

- Greg McKelveyExecutive Vice President,

Chief Strategy and Digital Officer

“Partnering with Flex is beyond a dream come true...Flex is giving i.am+ extra muscle to Flex globally...”

- will.i.amArtist and Founder

Hybrid Companies of the Future Fashion Tech Forum Los Angeles explores the Hybrid World of Fashion Tech:

The Leaders, the Revolutionaries, The Collaborators

2017 Presents

and

Consequently CTG has evolved into a focused growth segment within Flex

Expansion into new industries with richer revenue and profit drives large growth opportunities

Reduction of traditional EMS business reduces seasonality and improves margins

Strategic partnerships like Bose and Nike create a foundation for sustainable growth and profit