Flex Ltd.

Good afternoon and welcome to the Flex fourth 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 Vice President of Investor Relations. Sir, you may begin.

Thank you, Denise. Good morning and welcome to Flex's fourth quarter fiscal 2021 earnings conference call. With me today is our Chief Executive Officer, Revati Advaiti, and our Chief Financial Officer, Paul Lundstrom. Both will give brief remarks followed by Q&A. This call is being webcast and recorded, and if you have not already received them, slides for today's presentations 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 and are subject to risks and uncertainties, so actual events and 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. This call references non-GAAP financial measures for the current period. The GAAP reconciliations can be found in the appendix slides today's presentation as well as on the investor relations section of our website lastly a word on our flex next tracker business on april 28th we announced that we confidentially submitted a draft registration statement on form s1 with the u.s securities and exchange commission relating to the proposed initial public offering of its class a common stock the initial public offering and its timing are subject to market and other conditions in the sec's review process We made this announcement in accordance with Rule 135 under the Securities Act, following SEC regulations. We will not make any further statements or answer additional questions on the next tracker filing at this time. With that, I'd like to turn the call over to our CEO, Revathy.

Revathy Patel Thank you, David. Good morning, and thank you for joining us today for our Q4 earnings call. I hope you and your families are all safe and healthy. Before we discuss our results, I want to start by thanking our Flex colleagues for their incredible dedication and contributions in getting us through a very unusual year. So let's talk about business. Throughout our last fiscal year, Flex proved that it was able to deal with the global health and humanitarian crisis. We continue to adapt and improve, first in ramping our health and safety levels to protect workers, enabling work from home orders, and most recently, deal with the global component shortages and logistical disruptions. Flex's people, processes, and systems have proven to be very resilient, and the entire Flex team has done an amazing job at overcoming these unusual obstacles and supporting our customers. Our procurement and supply chain teams especially have made a truly Herculean effort to track down every component and every shipping container to keep our factories running and supporting our customers. Now let's turn to slide three to review some of our key financial highlights from the quarter. Our revenue was $6.3 billion, down 6.8% sequentially, better than typical seasonality, and up 14% year over year. Our adjusted operating margin came in at a record 4.9%. This figure includes the absorption of costs related to the challenging component supply and logistics environment. Our adjusted EPS was 49 cents, up from 28 cents in Q4 of last year. This is the third quarter in a row of record EPS. Our adjusted free cash flow came in at 135 million. Now for our fiscal 21 results, please turn to slide four. Our full year revenue was $24.1 billion, essentially flat year over year despite all the challenges this year. We achieved a record full year adjusted operating margin of 4.3%, a 60 basis point improvement year over year. Our adjusted EPS for the year was $1.57, a 28% year over year improvement. And through this year, we generated adjusted free cash flow of $677 million. Now moving on to the next slide. A year ago, we laid out our strategy for a multi-year transformation. Over that time, we have overcome significant challenges. While it's still too early to sound all clear, particularly regarding the global component constraint situation and continued pandemic, We think these are transitory challenges and there's much to be excited about the future. We made tremendous progress in our long-term strategy, redefining our end market focus, continuing to improve our mix, improving our operational execution and cultivating an inclusive high-performing culture. Through all of this, we delivered record results, improved our quality of earnings and strengthened our cash position. Redefining our end market focus, particularly since we have large end markets, has helped us focus to win in areas where our combined capability of technology, commercial excellence, and operational execution gets rewarded by customers. As we said before, we will combine this with continued investment in certain technologies and products using the strength of our balance sheet. This combination allows us to specialize and expand in targeted submarkets that have significant long-term secular drivers. The leverage and scale of this combination, along with the flex delivery model, creates lasting competitive advantage that will only strengthen over time. We are seeing the early fruits from the strategic shift. Our work has already led to successes manifesting in both program expansions with current customers as well as wins with new customers. These successes continue to strengthen customer trust and expand our experience and portfolio of offerings, creating a virtuous cycle. Now a little bit detail on our segments. In our health solutions business, we talked about focusing on medical equipment, devices, and next generation drug delivery. Earlier this year, customers came to us with a challenging and dire request. We quickly ramped multiple ventilator programs in one of the fastest large-scale medical device ramps in history. While this was a temporary project, it demonstrated our versatility and ability to operate at scale and speed. When global supply chains were in chaos, our customers needed us and lives were at stake, we delivered. And our improved model allowed us to do so in a fiscally responsible way. I would also point to our global leadership in chronic care related medical devices, where we have executed on multi-year, truly paradigm shifting medical device manufacturing program. This success shows the market we can manufacture highly complex essential products at scale. I am very proud to say our previous success has led to significant new long-term program wins in the chronic care related space that we have begun to ramp. Now automotive is a sector that is going through significant transformation. The steady shift to electrification and the inevitable move towards autonomy means increased complexity and new modes for value creation. We are focused on where the market is going with our emphasis on autonomous, connectivity, electrification, and smart systems, what we refer to as our ACES focus. And that has paid off with wins this year in all four of these business pillars. This quarter alone, we rammed several new programs in auto connectivity. In fact, strong execution by our automotive team supported by our exceptional supply chain and logistics teams delivered above market results in both our Q4 and the calendar year based on the IHS data. In automotive, we highly value our long-term customer partnerships and look forward to deepening these relationships as we enable their technology transformations. We are also broadening our partnerships with new industry players because of our leading-edge capabilities. One recent example of this was the announcement of our partnership with Inceptio, supplying their L3 autonomous driving controller for trucks scheduled for production by the end of 2021. You may also recall our collaboration with Lettertech, focused on supporting their automotive front LiDAR solution and open sensing platform, as well as our collaboration with EV manufacturer NIO. The latter resulted in an Innovation Partner PACE Award in 2019. Actually, on that note, I also want to offer a big congratulations to the automotive team, as they were recently named a finalist for this year's PACE Award for not just one, but two product innovations. one in the electric vehicle space and another in the autonomous driving space. In our industrial business, we focused on industrial devices, on capital equipment, power systems, renewables, and grid edge. We continue to increase our business in these subsegments, but our focus on specific areas has led to wins in new verticals, such as next generation robotics that we're ramping this year. In our agility segment, you will recall we previously discussed our two-pronged strategy for driving productivity and cost discipline, as well as wins in key growth markets with long-term secular drivers such as 5G cloud and increasingly complex consumer durable products, where we think Flex can provide differentiated value to our customers. The teams have made exceptional progress on all of these goals. And as you can see it in our results, as evidence in the growth in lifestyle and CEC, as well as the very strong margin improvement from the entire segment. I'm very proud of the agility team's work here. So the key takeaway here is that our strategy of having defined and focused end market segments is working. While our end markets are large, we have picked the sub segments we want to win in and are investing to improve our share in those areas. Our eyes on the demand environment too, which looks positive in both the near term and the longer term. There are some near term challenges, but we're experts at navigating uncertainty and we'll control the things we can. The teams are all executing very well, and this was another strong quarter showing the potential of our company as we continue down our transformative path. Now turning to the next slide. I want to cover one more thing before I turn the call over to Paul. Last quarter I mentioned I'd talk more about our ongoing ESG efforts. I want to point out our ESG focus is certainly nothing new for Flex. We have been at this for nearly 20 years. These years of effort and accomplishments are reflected in our improved performance in our Dow Jones Sustainability Index scores and being included in the S&P Sustainability Yearbook for the second year in a row. What we have done moving forward is to set out even more ambitious goals across all aspects of ESG for 2030, building on a broad foundation that we have set. In the spirit of consistently raising the bar, FLEX was recently accepted into the very rigorous science-based targets initiative. We're excited to join this ambitious global effort to drive meaningful reductions in greenhouse gas emissions across the value chain. I encourage you all to visit flex.com to see our 2030 environmental, social, and governance goals, and look for our new sustainability report in June to see the details of our full sustainability efforts and results, as well as our upcoming 10K in proxy statement for the additional progress and commitments to human capital management, and of course, inclusion and diversity. With that, I'll turn the call over to Paul, who will walk you through our results in more detail, and then I'll share some closing remarks. Paul?