Flex Ltd. Ordinary Shares Goldman Sachs Communacopia + Technology Conference 2026

Good to be here. Thanks.

Yeah, sure. I think as everybody in the room probably knows, we've announced a spin. We expect that spin to be executed just after the first of the year. When I think about priorities, I think about them in phases. You've got this pre-spin priority list and then post-spin priority list. Pre-spin, we're really focused on two things: getting the execution of the spin correct and timely, and then two, maintaining the momentum that we've created over the past, call it two quarters, in the RemainCo business. If you think back, we have two quarters now of double-digit growth on both the RMS business and the ITS business. We've also expanded margins over that timeframe from 5% to 5.7%, and we're getting the growth in the areas in which we intended. We talked about high-value markets last time.

We'll probably talk about more of those things today. Maintaining that momentum so that when the spin is executed, we're not starting at the finish line, we're running right through the starting line. Now, post-spin, there's some different things, and I like to talk about priorities from the perspective of our playbook. The playbook is what we've been executing for the past seven years. It's what we'll execute going forward in Flex, and it's what brought us to this moment in time of the spin, where in the past three years, we've had an opportunity to create two new companies and set two companies up for success. We hope to repeat that over and over again in Flex going forward. From a playbook standpoint, I think about three different areas. One is financial rigor, another is around productivity improvements, and the third area is around portfolio optimization.

From a financial rigor standpoint, I would expect much of the same that you've seen over the past seven years. We'll continue to deploy capital to the areas of highest return. ROIC will be the governing metric in deciding where we put that capital. We'll focus more on earnings growth and margin expansion. We won't be chasing top-line growth for top-line growth's sake. But the same rigor that you've come to know us for over the past, call it seven years. Productivity. In our industry, when you run a network of over 85 different factories in 35 or so different countries, driving efficiency in the factory is really of paramount importance. We'll expect that to be the baseline going forward of continuing that productivity improvement. But I think what's new and exciting is this ability to unlock more value by combining our automation solutions with AI.

We really see an opportunity to not just unlock more, but to accelerate savings from those efforts. Then thirdly, I would say portfolio optimization. We think about our portfolio from a low-value market and a high-value market perspective. Low-value markets, no surprise, these tend to be markets that are not really growing or where we are not able to differentiate in a way that we can earn a higher margin that supports our plan going forward. On the other end, you have high-value markets, and these are markets that tend to be tied to long-term secular growth trends, enables us to grow in the neighborhood of double digits, and also enable us to earn a higher than average margin because we are solving for different types of complexity. It could be technology complexity, scale, regulatory complexity. So all those things really drive us to continue to balance that portfolio over time.

Priorities, pre-spin, post-spin, but certainly the idea is to create momentum and maintain that post-spin.

Yeah. I think about differentiation in a lot of different levels. Every opportunity that comes our way, we have to find a way to differentiate between whomever that competition might be in whatever market. When you run a diversified portfolio, the competition that you have varies by market and by customer. I would say there is a couple things that are universally true. The first is that we operate a unique suite of products and services. So we are one of the few companies that has engineering that is connected to manufacturing, but also a capability to vertically integrate that manufacturing with things like injection-molded plastics, sheet metal fabrication, our own component product line, and core works. Vertical integration is one key differentiator in many ways. Then after we manufacture the product, we do not stop.

We have an aftermarket business that is already operating at scale, where we have one part of our business that is around fulfillment, where we can deliver products at the right time, at the right location, whether that is another business or even a home address. We also have an ability to bring those products back in our circular economy suite of services for repair, refurbishment, recycling, anything that gets those products back from the marketplace itself. The suite of services, I think, is one area. Also, the playbook. When you think about the muscles that we have developed in the company over the past seven years, we have developed a capability to identify valuable assets that are consistent with our strategy, integrate those assets into the company, more importantly, combine those assets with existing capabilities to create something of greater value than we acquired.

Now we have two examples over the past three years where we have been able to do that, and we expect to be able to do that in the future as well.