Flex Ltd.

Good afternoon and welcome to the FLEX first quarter fiscal year 2021 earnings conference call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. At this time, for opening remarks, I would like to turn the call over to Mr. David Rubin, FLEX's Vice President of Investor Relations. Sir, you may begin.

Thank you, Simon. and welcome to Flex's first quarter fiscal 2021 conference call. Joining me today will be our chief executive officer, Revathi Advaithi, and our chief financial officer, Chris Collier. This call is being webcast and recorded and slides for today's presentation are available on the investor relations section of our flex.com website. Please note today's call contains forward-looking statements which are based on current expectations and assumptions that are subject to risks and uncertainties, including the impact of the COVID-19 pandemic The actual events or results could differ materially. Also, such information is subject to change, and we undertake no obligation to update these forward-looking statements. For full discussion of the risks and uncertainties, please see our most recent filings with the SEC, including our most recent 10-K. Lastly, this call references non-GAAP financial measures for the current period. GAAP reconciliations can be found in the appendix slides of today's presentation, as well as on the investor relations section of our website. With that, I'd like to turn the call over to our CEO, Revathi.

Thank you, David. Good afternoon, everybody, and thank you for joining us today. And as we continue through these unprecedented times, I hope you and your families are safe and healthy. It has been an eventful few months for the whole world, and our Flex colleagues have worked tirelessly, of course, to support our customers and our communities. And I can't thank them enough for their continued support and dedication. So because of these efforts, we've made real progress through a very difficult quarter and delivered better than expected results. I'll start first by providing an update on how we are operating in the COVID-19 environment, and then we'll talk about our fiscal Q1 results. So navigating the COVID-19 pandemic remains top of mind for all of us. The safety and well-being of our employees is our highest priority, and to provide that protection, We have deployed very extensive safety measures such as enhanced sanitation, temperature checks, and of course a lot of safe distancing in production environments. The associated costs of these measures will continue to have an impact on our business. However, we're getting more efficient at operating under the safest possible condition and will continue to improve our productivity. Personal protective equipment remains a keystone to our safety efforts. Our mass production project that we talked about last quarter continues to be on track with over 20 million masks that we have produced to date at seven locations across the globe. And while most of the production is used to keep our colleagues and their families safe, we're also supporting our communities by continuing to donate masks to hospitals and first responders. The working from home remains effective for many employees and will continue to have non-manufacturing employees work remotely as long as it is prudent. But I do believe that human interaction is an important part of building and maintaining a healthy culture. So we are planning for an eventual return to work in some form, of course, but it'll be a minute approach and only at the appropriate time. So from an operational standpoint, all of our production sites around the globe are up and running. We've also seen dramatic improvements in the supply chain since the early days of the crisis. However, a few component constraints and elevated lead time still exist, causing increased inventories in some areas. So let me talk about managing costs. Last quarter, when uncertainty was at its greatest, we instituted austerity measures, including temporary pay cuts and bonus cuts to mitigate elevated levels of manufacturing costs. We have used this to plan how we will operate with the most optimal manufacturing efficiency and overhead cost structure in a sustainable fashion in the current environment, and we still remain on track to reach our long-term financial goals. As a result, we're now implementing a systematic and disciplined restructuring effort that will be executed in fiscal Q2. This effort will enable us to further solidify our focus on improving margins and driving the right kind of growth. Lastly, of course, we continue to have a strong liquidity position and we will be prudent in our use and deployment of cash throughout this time period. So let me now talk about fiscal Q1 results. Let's turn to slide four. We have executed very well despite the difficult environment. Let me highlight several of the financial metrics for our first quarter and then Chris will take you through the numbers in a great detail. The revenue of 5.15 billion was down 6% sequentially and 17% year-over-year. Please note that this sequential drop was due mostly to the impact of the automotive shutdowns and a slow ramp in the quarter. And as all of you are aware, we'll have year-over-year comparisons from last year's portfolio shifts we made. Our adjusted operating margin was 3.2% despite absorbing significant COVID related costs as well as negative mixed impact from the automotive shutdowns. Our adjusted EPS is 23 cents down from 27 cents in Q1 of last year. Our adjusted free cash flow came in at negative 74 million as we had talked about earlier. In the last quarter, we expected fluctuations in operating free cash flow due to managing through net working capital requirements in this unusual period, as well as timing of payments in the quarter. However, we expect to quickly return to achieving our adjusted free cash flow targets starting in the September quarter. So moving on to slide five. As we described last quarter, we knew that Q1 would be challenging as the impact from the COVID-19 outbreak continued to affect production and demand. However, we did see strength in several of our end markets, which is a testament to our diversification strategy and our ability to execute and deliver. Let me start with our reliability segment. Health Solutions was extremely strong. The team executed very well on projects supporting the fight against COVID-19, such as our recent fast ramps and ventilators and testing equipment, as well as expansions in critical care products such as oxygen concentrators and fusion pumps patient monitors and ICU beds. We also saw continued strength in industrial areas such as power products. However, we did face a major challenge in our automotive segment. Most of our North American and European auto production sites remain essentially shut down in line with our OEM customers. We knew production would restart after the quarantine period, so it greatly limited our option and our ability to cut costs in line with anticipated demand levels in the quarter. In May, we're excited to have Mike Thoeny join Flex to lead the automotive group. Mike has a long history in the industry and brings extensive experience and deep domain expertise to the team. Mike hit the ground running and the whole group has worked very hard to ramp production, get the wheels turning again, and I'm very pleased to announce that all of our automotive production sites are now up and running. In our agility solutions business, CEC experienced a very strong rebound this quarter as they ramped aggressively to meet customer demands for networking and compute equipment to support the increased workload from work and learn from home. This upside was offset by lower demand in our lifestyle and consumer device segments. Initially, lifestyle was impacted by both retail shutdowns as well as initial e-commerce shifts to essential purchase only. However, we have started to see strong demand in areas like floor care, coffee machines, and audio products. So as I discussed with you in March during our analyst presentation, we have reorganized our market-facing segments to be agile and to have end-to-end ownership to drive the right growth strategy. And despite the current situation, we have not wavered from our growth mindset. Across the company, our teams have been very productive, finding new ways to operate and continuing to win new businesses. When COVID-19 made it impossible for customers to tour prospective manufacturing sites, we launched our new virtual customer platform to provide them with high-quality video tours of our global factories. Now, this has been a huge hit with our customers. When it comes to growth, we are focused on targeting and winning new businesses that are aligned with our strategic priorities. And our customer engagements continue to reinforce our belief that we are perfectly positioned with the right combination of technology and domain expertise. We continue to see strong new program wins in our targeted market, whether it's the next generation medical monitoring device, autonomous auto compute modules, auto electrification systems, or things like advanced industrial grade robotics or new beverage appliances. So executing our growth strategy is going well. We're also moving forward and deploying our operational model Custom to our two groups and combining that with being world-class in manufacturing technologies. Along with that, we continue to focus on driving disciplined execution, taking rapid tactical actions as challenges arise. I do believe we have a good balance of moving on our strategic agenda while executing really well in the near term. Now I'd like to turn the call over to Chris, who will walk you through our Cori financial results in more detail, and then I'll come back at the end to share some closing remarks. Chris?