Flex Ltd.

Good afternoon and welcome to the FLEX second 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, Rob, and welcome to Flex's second quarter fiscal 2021 conference call. Joining me today is our chief executive officer, Revathi Advaithi, and our chief financial officer, Paul Lundstrom. This call is being webcast and recorded, and if you've not already received them, slides for today's presentation are available on the investor relations section of our Flex.com website. As a reminder, today's call contains forward-looking statements which are based on our current expectations and assumptions that are subject to risks and uncertainties, including the impact of the COVID-19 pandemic and 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. Lastly, this call references non-GAAP financial measures for the current period. The GAAP reconciliations can be found in the appendix slides of today's presentation, as well as 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, and thank you for joining us today. I hope you and your families remain well through these challenging times. I want to start off by thanking all of my FLEX colleagues for their commitment and perseverance through these unprecedented times. I believe it is often in these toughest situations that we find what we are truly made of, and these past months are an example of that. On behalf of the entire leadership team, our sincere thanks to the global FLEX family for all that you have accomplished. Our strong fiscal Q2 results are a testament to your efforts. Now let's turn to slide three. Let me start off with a few highlights on our financial metrics for the quarter. Our revenue was over $5.9 billion, up 16% sequentially and down 1.7% year over year. Our adjusted operating margin was strong at 4.1%. This includes continued COVID-19 related costs as well as some lingering demand weakness partially offset by austerity measures that ended with Q2. Our adjusted EPS was $0.36 up from $0.31 in Q2 of last year. Our adjusted free cash flow came in at $326 million. I will point out that this is the strongest quarterly adjusted free cash flow in 15 quarters and maintains our objective of 80% adjusted free cash flow conversion. So moving on to the next slide, we executed really well in fiscal Q2, taking advantage of improved market dynamics that resulted in sequential improvements in all our end markets. Our reliability segment grew both sequentially and year over year. These results were driven by a continuation of the strength we've seen in health solutions as well as stronger than anticipated rebound in automotive after a very difficult Q1. Despite continued macro challenges in automotive, we are winning new businesses and expanding our presence in key long-term markets such as autonomous and electrification. For example, this quarter, we launched a collaborative partnership with Lettertech to combine their sensing platform and our automotive sensor design and manufacturing expertise to deliver an optimized solution to customers working on all levels of autonomy. Additionally, within our renewables group, our Nextracker team had some strong wins with this market-leading solution in Australia's largest solar farm in Queensland, and also with Dubai's Mohammed bin Rashid Solar Park, which happens to be the largest solar park in the Middle East. In fact, our reliability segment revenue and profit dollars were both up on a year-over-year basis for the first half of fiscal 21. even with the fiscal Q1 shutdowns and slower recovery in automotive. These results come from consistent disciplined execution as well as longer term purposeful diversification. Our agility segment improved revenue sequentially from work and learn from home trends as well as general improvement in consumer spending but remains down year over year due to much slower recovery in emerging markets. We continue to stay disciplined and manage costs and mix, which help the agility segment improve profit margin year over year and sequentially. In the agility segment, we remain focused on the right business aligned to our strategy, regardless of growth takes a little longer in this environment. Looking at these results from a higher level, I would say our strategy is working. As we outlined at our investor day back in March, our strategy is to migrate towards higher value opportunities. We have re-engineered the structural foundation and delivery platforms for the company. We approach our targeted markets with six diversified businesses, each with unique vertical offerings and supported by a resilient global supply chain and unified technology backbone. This market strategy enables us to provide domain-specific, sustainable value and drive profitable growth across each of the markets we serve. We are underway in our multi-year transformation journey. COVID-19 has presented real challenges as well as opportunities. But by remaining steadfast in our strategic approach, I am confident that we'll continue to overcome these challenges as well as find new creative opportunities that play to our strengths. Our strategy is about changing the way we operate, the value we create, and internally building the right growth mindset. This approach is how we move away from the historical fits and starts of the legacy EMS business. Following the strategy, I believe you'll find in the years to come that our company will look much more like diversified manufacturing businesses than traditional EMS. This will happen by changing our mix within segments and by making the right technology and portfolio investments. Along with our four strategic pillars of markets, technology, operations, and systems, is our focus on people and culture. Our new values and purpose have been invaluable guides as we have navigated the pandemic and our foundation of the culture we're building. We are fostering a contemporary and high performing, inclusive and diverse workplace, and we're ensuring we have the right talent to implement and carry out our strategy. As you've seen over the last few years, we have made it a priority to increase our domain expertise across the company. As you all know, most recently, Chris Collier stepped down as our CFO. Chris is staying as a senior advisor to work with me on some critical projects we have going on as part of our transformation. Chris has been a fantastic partner for me in the last year and a half, both educating me and supporting me in this transformation plan. I want to take this opportunity to thank Chris for his incredible service to this company and his hard work helping with the planned and disciplined CFO transition. With that, I'm excited to introduce our new CFO, Paul Lundstrom. Paul brings very strong financial experience in manufacturing and industrial sectors as well as international markets to help execute on our strategy. He joined us just about two months ago and hit the ground running. and I'm sure you all think he should be an expert on Flex by now, so I'll actually have him handle all of today's Q&A. Now I'll turn the call over to Paul, who will walk you through our results in more detail. I'll then come back at the end to share some closing remarks. Paul?