Flex Corporate Strategy
Appendix: Reconciliation of GAAP to Non-GAAP Measures
FY19
FY20
FY21
FY22E**
GAAP ROIC*
10.1%
10.0%
15.7%
Non-GAAP Adjustments
7.1%
9.5%
4.7%
17.7%
3.0%
Non-GAAP ROIC*
***
17.2%
19.6%
20.4%
20.7%
*Return on Invested Capital (ROIC) is calculated by dividing the Company's last twelve months after-tax Non-GAAP operating income by the net invested capital asset base as of each date. After-tax non-GAAP operating income excludes charges for stock-based
compensation expense, restructuring charges, legal and other, and intangible amortization. The net invested capital asset base is defined as the sum of shareholders' equity plus total debt less cash and cash equivalents averaged over the last five quarters. We believe
ROIC is a useful measure in providing investors with information regarding our performance. ROIC is a widely accepted measure of earnings efficiency in relation to total capital employed. We believe that increasing the return on total capital employed, as measured by
ROIC, is an effective method to sustain and increase shareholder value. ROIC is not a measure of financial performance under generally accepted accounting principles in the U.S. and may not be defined and calculated by other companies in the same manner. ROIC
should not be considered in isolation or as an alternative to net income or loss as an indicator of performance. The above table reconciles ROIC as calculated using after-tax non-GAAP operating income to the same performance measure calculated using the nearest
GAAP measure, which is after-tax GAAP operating income.
**Based on mid-point of guidance for FY22
*** May not foot due to rounding
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