Flex Corporate Strategy

Appendix: Reconciliation of GAAP to Non-GAAP Measures ($ in Millions)* Net cash used in operating activities Reduction in ABS levels and other Cash collections of ABS positions and other Net Capital Expenditures Adjusted free cash flow*** GAAP free cash flow conversion**** Non-GAAP adjusted free cash flow conversion**** FY20-FY22E** ($459 797 2,564 (1,052) 1,849 -27.5% 79.3% *Amounts may not sum due to rounding. **FY22E adjusted free cash flow are based on our guidance. *** **Adjusted free cash flow is calculated as operating cash flow for the quarter less net capital expenditures. In the first quarter of fiscal year 2019, the adoption of the new cash flow accounting standard resulted in a reclassification of cash flows related to the collection of certain receivables sold through the Company's asset-backed receivable securitization ("ABS") program from operating activities to investing activities. The Company utilizes net cash flow from its various A/R sales programs as a low-cost source to fund operations and as a critical net working capital management tool. The Company views and manages all collections under the programs similarly without bifurcation and accordingly provides the adjustment to reflect adjusted free cash flow inclusive of all collections of receivables sold through the programs. In fiscal year 2021, we proactively and strategically reduced the outstanding balance of our ABS programs which is fully paid and wind down as of FY21 year end. Proceeds from our debt issuance replaced the funding from the ABS programs for working capital purposes. We reduced the balance on this short-term financing products throughout FY21 which had the accounting effect of reducing our cash flow from operations and was excluded from our adjusted free cash flow calculation. Adjusted free cash flow is a non-GAAP financial measure and may not be defined and calculated by other companies in the same manner. ****GAAP free cash flow conversion is calculated by dividing the Company's net cash used in operating activities by GAAP net income for the respective periods. Adjusted free cash flow conversion is calculated by dividing the Company's adjusted free cash flow by Non- GAAP net income for the respective periods. 64 flex

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