Chris Collier

Chief Financial Officer

Portfolio Evolution & Margin Expansion

1

Our strategic vision aligns with our financial principles

Revenue

Growth

Operating

Profit Expansion

EPS

Accretion

Strong Cash Flow

Generation

Solid Capital

Structure

Portfolio evolution

Sketch-to-scale+

Financial Principles

554

639

FY15 FY16

813

757

684 639

591 563 545

2

Fiscal 2016: A year of solid execution

CTG CEC HRS IEI

30%

33%

18%

19%

51%

+15% growth

FY11 FY12 FY13 FY14 FY15 FY16shares outstanding (millions)

Adj. Operating Profit Free Cash Flow($M)

Share Repurchases($M)

Record adjusted EPS of $1.14

$792MFY16

3

Financial performance underscores successful evolution

665

751

792

FY14 FY15 FY16

Sustainable

$0.89

$1.08

$1.14

FY14 FY15 FY16

Profitable

Adjusted EPS

Resilient

Free Cash Flow Conversion1

Consistent

Free Cash Flow Returned

126%

87%

99%

FY14 FY15 FY16

68%

75%

66%

FY14 FY15 FY16

9% CAGR 11% CAGR $1.9B FCF generated $1.3B repurchased

Adjusted Operating Profit($M)

1. Free cash flow conversion defined as free cash flow / adjusted net income

(FY14 - 16) (FY14 - 16)(FY13 - 16)(FY13 - 16)

4

Lenovo Motorola smartphone business update

Lenovo Motorola revenue

• Significant revenue headwind removed

• Cost to close China Lenovo Motorola operations within our estimates

• Eliminated our China Lenovo Motorola exposure

• Strong relationship in Brazil and India

21,836 22,067

4,312 2,352

FY15 FY16

26,14824,419

Total FlexRevenue ($M)

CTGRevenue ($M)

4,628 4,646

4,312

2,352

FY15 FY16

8,940

6,998

Strategic portfolio evolutionDriving predictable earnings and margin expansion

FY16

19% 16%

29% 36%

35%19%

FY10

6%13%

42% 39% ~27%

~22%~23%

~28%

FY20E

~45%

$4.5BHRS + IEI

revenue

$8.6BHRS + IEI

revenue

~$13.0BHRS + IEI

revenue

~2years

~4years

~6years

Estimated average product life cycle

CTG CEC HRS IEI

6

Strategically investing for our future

• FY16 increase includes MCi, NEXTracker and Wink acquisitions

• Disciplined and measured investments

• Investments subsidized by productivity and efficiencies

3035

76

FY14 FY15 FY16

R&D Expense($M)

Research & Development (R&D) supports our Sketch-to-scaleTM initiatives

Net Capex defined as capital expenditure less proceeds from sale of property, plant & equipment7

Disciplined capital investment supports portfolio evolution

~$425MAverageDepreciation

• Targeted investments in key areas

• Auto, Medical, Industrial & Energy

• Automation & disruptive technologies

• Well built-out global infrastructure

• Flexible manufacturing assets

435

515

240

497 ~500

FY13 FY14 FY15 FY16 FY17E

Net Capex($M)

Proceeds of $107M from the sale of PP&E

$347

1 Reflects M&A transactions completed from FY13 to FY16 (Excludes OEM asset acquisitions)8

Targeted M&A strategy aligned with portfolio evolution

$25-$100M

82

<$25M

Target capabilities

Strategic customers

Longer product lifecycles

EPS accretive

Barriers to entry

Higher margins

Key Selection Criteria

# of AcquisitionsBased on purchase price 1

3

>$100M% of M&A spend by business group 1

72%

HRS27%

IEI

1%

CTG

9

Strong sustainable free cash flow

Free Cash Flow Conversion 1

Free Cash Flow Yield 2

1. Free cash flow conversion defined as free cash flow / adjusted net income2. Free cash flow yield based on average market cap at fiscal year-end

Free Cash Flow($M)

680 701

554

639

FY13 FY14 FY15 FY16 FY17E

600 - 700

10%1 year 10%

3 year 10%

5 year 10%

100%1 year 99%

3 year 103%

5 year 99%

$3.2B to $3.3B for FY13 to FY17E

10

Balanced capital structure

Key Characteristics:

• Solid liquidity• No significant near-term maturities

$1,608

Debt Maturities by Calendar Year ($M)

• Low cost of debt ~3.5%• Strong credit metrics (Debt / Adj. EBITDA (LTM) = 2.2x)

Providing us with ample flexibility to support our business

11

Unwavering shareholder return commitment

76%

70%

66%

% of Free Cash Flow

Returned to Shareholders

1 Yr

3 Yrs

5 Yrs

In the last 6 Years, we have repurchased…

~ $2.5 billion in stock

~ 335 million shares

~ 33% net shares outstanding

813

757

684

639 591

563 545

FY11 FY12 FY13 FY14 FY15 FY16shares outstanding (millions)

Share Repurchase($ M)

Committed to returning over 50% of annual free cash flow to shareholders

12

Structured to deliver profitable growth

Annual RevenueGrowth Target

Comments

10% +• Megatrends driving growth• Deep & broad global technical capabilities

10% +• Redefining Energy engagement model• Positioned to penetrate massive TAM across Industrials

- 5% to 0%• Navigating challenging industry dynamics• Maintaining market leading position across the board

3% to 5% • Success with ICE and Strategic customers• New industry growth vectors

HRS

IEI

CTG

CEC

Targeted 2020 revenue growth model

FY16 Adjusted Operating

Target Operating Margin

Profit($M)

Margin Prior Range New Range

$295 7.6% 5 - 7% 6 - 9%

$158 3.4% 4 - 6% 4 - 6%

$265 3.0% 3 - 4% 2.5 - 3.5%

$164 2.3% 2 - 3% 2 - 4%

Corporateservices & other1 ($90)

$792 3.2%

13

Positioned for operating profit and margin expansion

HRS

IEI

CTG

CEC

Targeted 2020 delivers profit growth

1 Corporate services and other primarily includes corporate services costs that are not included in the assessment of the performance of each of the identified business group

CEC

HRSIEI

CTG

FY20E

>60%

TargetedOperating Profit Mix

14

Positioned to deliver meaningful earnings power

% Sketch-to-scale FY20E

Portfolio Evolution

Sketch-to-scale

~3%

10%+

12%+

Revenue Adj.Operating

Profit

Adj. EPS

2016 - 2020 CAGR

Substantial earnings leverage

3x

4xRevenue mix

CEC

HRSIEI

CTG

FY20E

~45%

CEC CTG IEI HRS

~35%Total Flex

15

Structurally & strategically aligned to deliver shareholder value