SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Flex Ltd. (“Parent”) has three tranches of Notes of $500 million, $500 million, and $600 million, respectively, each outstanding, which mature on February 15, 2020, February 15, 2023 and June 15, 2025, respectively. These Notes are senior unsecured obligations, and are guaranteed, fully and unconditionally, jointly and severally, on an unsecured basis, by certain of the Company’s 100% owned subsidiaries (the “guarantor subsidiaries”). These subsidiary guarantees will terminate upon 1) a sale or other disposition of the guarantor or the sale or disposition of all or substantially all the assets of the guarantor (other than to the Parent or a subsidiary); 2) such guarantor ceasing to be a guarantor or a borrower under the Company’s Term Loan Agreement and the Revolving Line of Credit; 3) defeasance or discharge of the Notes, as provided in the Notes indenture; or 4) if at any time the Notes are rated investment grade, provided that each rating agency confirms that the Notes will continue to be rated investment grade after the Note Guaranties are terminated.

In lieu of providing separate financial statements for the guarantor subsidiaries, the Company has included the accompanying condensed consolidating financial statements, which are presented using the equity method of accounting. The principal elimination entries relate to investment in subsidiaries and intercompany balances and transactions, including transactions with the Company’s non-guarantor subsidiaries.

Condensed Consolidating Balance Sheets as of December 31, 2016



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	943,807	$	63,698		$	849,591	$	—		$	1,857,096
Accounts receivable	—		815,141			1,347,609		—			2,162,750
Inventories	—		1,521,272			1,972,345		—			3,493,617
Inter company receivable	10,504,971		7,802,175			14,601,712		(32,908,858		)	—
Other current assets	5,796		187,215			907,148		—			1,100,159
Total current assets	11,454,574		10,389,501			19,678,405		(32,908,858		)	8,613,622
Property and equipment, net	—		584,382			1,737,154		—			2,321,536
Goodwill and other intangible assets, net	1,214		85,894			1,250,213		—			1,337,321
Other assets	2,211,872		276,492			2,000,849		(3,958,643		)	530,570
Investment in subsidiaries	2,562,818		3,456,295			17,947,038		(23,966,151		)	—
Total assets	$	16,230,478	$	14,792,564		$	42,613,659	$	(60,833,652	)	$	12,803,049

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	63,365	$	—		$	5,491	$	—		$	68,856
Accounts payable	—		1,734,186			2,965,548		—			4,699,734
Accrued payroll	—		99,464			258,458		—			357,922
Inter company payable	10,728,155		10,528,081			11,652,622		(32,908,858		)	—
Other current liabilities	28,349		785,866			937,030		—			1,751,245
Total current liabilities	10,819,869		13,147,597			15,819,149		(32,908,858		)	6,877,757
Long term liabilities	2,810,714		2,042,092			2,389,632		(3,958,643		)	3,283,795
Flex Ltd. shareholders’ equity (deficit)	2,599,895		(397,125		)	24,363,276		(23,966,151		)	2,599,895
Noncontrolling interests	—		—			41,602		—			41,602
Total shareholders’ equity (deficit)	2,599,895		(397,125		)	24,404,878		(23,966,151		)	2,641,497
Total liabilities and shareholders’ equity	$	16,230,478	$	14,792,564		$	42,613,659	$	(60,833,652	)	$	12,803,049

Condensed Consolidating Balance Sheets as of March 31, 2016



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	734,869	$	148,201		$	724,500	$	—		$	1,607,570
Accounts receivable	—		729,331			1,315,426		—			2,044,757
Inventories	—		1,482,410			2,009,246		—			3,491,656
Inter company receivable	9,105,728		5,568,392			12,404,722		(27,078,842		)	—
Other current assets	2,951		180,842			987,350		—			1,171,143
Total current assets	9,843,548		8,109,176			17,441,244		(27,078,842		)	8,315,126
Property and equipment, net	—		553,072			1,704,561		—			2,257,633
Goodwill and other intangible assets, net	175		60,895			1,284,750		—			1,345,820
Other assets	2,249,145		267,034			2,004,437		(4,054,214		)	466,402
Investment in subsidiaries	2,815,426		3,038,002			18,175,348		(24,028,776		)	—
Total assets	$	14,908,294	$	12,028,179		$	40,610,340	$	(55,161,832	)	$	12,384,981

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	5,384	$	—		$	65,166
Accounts payable	—		1,401,835			2,846,457		—			4,248,292
Accrued payroll	—		114,509			239,038		—			353,547
Inter company payable	9,562,405		7,999,335			9,517,102		(27,078,842		)	—
Other current liabilities	33,008		869,470			1,002,722		—			1,905,200
Total current liabilities	9,654,249		10,386,095			13,610,703		(27,078,842		)	6,572,205
Long term liabilities	2,683,173		2,063,988			2,514,299		(4,054,214		)	3,207,246
Flex Ltd. shareholders’ equity (deficit)	2,570,872		(421,904		)	24,450,680		(24,028,776		)	2,570,872
Noncontrolling interests	—		—			34,658		—			34,658
Total shareholders’ equity (deficit)	2,570,872		(421,904		)	24,485,338		(24,028,776		)	2,605,530
Total liabilities and shareholders’ equity	$	14,908,294	$	12,028,179		$	40,610,340	$	(55,161,832	)	$	12,384,981

Condensed Consolidating Statements of Operations for the Three-Month Period Ended December 31, 2016



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,186,855		$	4,453,753		$	(2,525,609	)	$	6,114,999
Cost of sales	—			3,722,516			4,501,637			(2,525,609		)	5,698,544
Gross profit (loss)	—			464,339			(47,884		)	—			416,455
Selling, general and administrative expenses	—			66,738			164,813			—			231,551
Intangible amortization	25			864			17,845			—			18,734
Interest and other, net	(370,703		)	662,422			(265,791		)	—			25,928
Income (loss) from continuing operations before income taxes	370,678			(265,685		)	35,249			—			140,242
Provision for (benefit from) income taxes	—			(4,018		)	14,791			—			10,773
Equity in earnings in subsidiaries	(241,209		)	(71,920		)	4,401			308,728			—
Net income (loss)	$	129,469		$	(333,587	)	$	24,859		$	308,728		$	129,469

Condensed Consolidating Statements of Operations for the Three-Month Period Ended December 31, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,597,684		$	5,718,182		$	(3,552,689	)	$	6,763,177
Cost of sales	—			4,187,076			5,676,323			(3,552,689		)	6,310,710
Gross profit	—			410,608			41,859			—			452,467
Selling, general and administrative expenses	—			83,346			157,271			—			240,617
Intangible amortization	75			960			18,284			—			19,319
Interest and other, net	49,358			316,345			(299,722		)	—			65,981
Income (loss) from continuing operations before income taxes	(49,433		)	9,957			166,026			—			126,550
Benefit from income taxes	—			(8,071		)	(14,289		)	—			(22,360		)
Equity in earnings in subsidiaries	198,343			(88,988		)	(10,534		)	(98,821		)	—
Net income (loss)	$	148,910		$	(70,960	)	$	169,781		$	(98,821	)	$	148,910

Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2016



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	12,008,455		$	13,981,899		$	(7,990,017	)	$	18,000,337
Cost of sales	—			10,822,629			14,031,584			(7,990,017		)	16,864,196
Gross profit (loss)	—			1,185,826			(49,685		)	—			1,136,141
Selling, general and administrative expenses	—			212,059			502,981			—			715,040
Intangible amortization	175			2,298			59,845			—			62,318
Interest and other, net	(561,290		)	1,322,198			(674,032		)	—			86,876
Income (loss) from continuing operations before income taxes	561,115			(350,729		)	61,521			—			271,907
Provision for (benefit from) income taxes	11			(947		)	40,153			—			39,217
Equity in earnings in subsidiaries	(328,414		)	(136,175		)	(69,935		)	534,524			—
Net income (loss)	$	232,690		$	(485,957	)	$	(48,567	)	$	534,524		$	232,690

Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	13,126,281		$	15,168,232		$	(9,648,326	)	$	18,646,187
Cost of sales	—			11,972,388			15,120,401			(9,648,326		)	17,444,463
Gross profit	—			1,153,893			47,831			—			1,201,724
Selling, general and administrative expenses	—			213,614			453,184			—			666,798
Intangible amortization	225			2,881			40,011			—			43,117
Interest and other, net	(347,663		)	929,730			(475,704		)	—			106,363
Income from continuing operations before income taxes	347,438			7,668			30,340			—			385,446
Provision for (benefit from) income taxes	—			(4,630		)	7,339			—			2,709
Equity in earnings in subsidiaries	35,299			(140,241		)	42,225			62,717			—
Net income (loss)	$	382,737		$	(127,943	)	$	65,226		$	62,717		$	382,737

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended December 31, 2016



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	129,469		$	(333,587	)	$	24,859		$	308,728		$	129,469
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	(36,412		)	58,791			35,660			(94,451		)	(36,412		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(201		)	3,443			(201		)	(3,242		)	(201		)
Comprehensive income (loss)	$	92,856		$	(271,353	)	$	60,318		$	211,035		$	92,856

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended December 31, 2015



	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	148,910	$	(70,960	)	$	169,781	$	(98,821	)	$	148,910
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	30,063		62,209			50,828		(113,037		)	30,063
Unrealized gain on derivative instruments and other, net of zero tax	10,497		4,099			10,497		(14,596		)	10,497
Comprehensive income (loss)	$	189,470	$	(4,652	)	$	231,106	$	(226,454	)	$	189,470

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2016



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	232,690		$	(485,957	)	$	(48,567	)	$	534,524		$	232,690
Other comprehensive income (loss):	0
Foreign currency translation adjustments, net of zero tax	(22,338		)	68,972			57,055			(126,027		)	(22,338		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(912		)	6,942			(912		)	(6,030		)	(912		)
Comprehensive income (loss)	$	209,440		$	(410,043	)	$	7,576		$	402,467		$	209,440

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2015



	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	382,737	$	(127,943	)	$	65,226		$	62,717		$	382,737
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	2,579		5,025			(703		)	(4,322		)	2,579
Unrealized gain on derivative instruments and other, net of zero tax	17,782		9,884			17,782			(27,666		)	17,782
Comprehensive income (loss)	$	403,098	$	(113,034	)	$	82,305		$	30,729		$	403,098

Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2016



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	520,709		$	(354,918	)	$	847,430		$	(33	)	$	1,013,188
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(134,755		)	(250,812		)	27			(385,540		)
Acquisition of businesses, net of cash acquired	—			(73,469		)	(106,790		)	—			(180,259		)
Proceeds from divestiture of businesses, net of cash held in divested businesses	—			20,500			15,573			—			36,073
Investing cash flows to affiliates	(840,082		)	(3,334,220		)	(532,400		)	4,706,702			—
Other investing activities, net	(61,213		)	(7,823		)	19,332			—			(49,704		)
Net cash used in investing activities	(901,295		)	(3,529,767		)	(855,097		)	4,706,729			(579,430		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	204,916			—			602			—			205,518
Repayments of bank borrowings, long-term debt and capital lease obligations	(106,547		)	(4,460		)	(4,082		)	—			(115,089		)
Payments for repurchases of ordinary shares	(259,658		)	—			—			—			(259,658		)
Net proceeds from issuance of ordinary shares	11,978			—			—			—			11,978
Financing cash flows from affiliates	790,398			3,813,276			103,022			(4,706,696		)	—
Other financing activities, net	30,000			(11,347		)	(65,955		)	—			(47,302		)
Net cash provided by financing activities	671,087			3,797,469			33,587			(4,706,696		)	(204,553		)
Effect of exchange rates on cash and cash equivalents	(81,563		)	2,713			99,171			—			20,321
Net increase (decrease) in cash and cash equivalents	208,938			(84,503		)	125,091			—			249,526
Cash and cash equivalents, beginning of period	734,869			148,201			724,500			—			1,607,570
Cash and cash equivalents, end of period	$	943,807		$	63,698		$	849,591		$	—		$	1,857,096

Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	343,182		$	(93,746	)	$	690,336		$	—		$	939,772
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(128,011		)	(285,928		)	5			(413,934		)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business	—			(809,233		)	(94,612		)	—			(903,845		)
Proceeds from divestiture of business, net of cash held in divested business	—			—			3,603			—			3,603
Investing cash flows to affiliates	(1,099,775		)	(923,812		)	(1,087,520		)	3,111,107			—
Other investing activities, net	(2,046		)	(23,270		)	26,713			—			1,397
Net cash used in investing activities	(1,101,821		)	(1,884,326		)	(1,437,744		)	3,111,112			(1,312,779		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	695,309			—			60,375			—			755,684
Repayments of bank borrowings, long-term debt and capital lease obligations	(35,638		)	(1,333		)	(3,735		)	—			(40,706		)
Payments for repurchases of ordinary shares	(331,690		)	—			—			—			(331,690		)
Net proceeds from issuance of ordinary shares	52,950			—			—			—			52,950
Financing cash flows from affiliates	632,750			1,996,352			482,010			(3,111,112		)	—
Other financing activities, net	—			—			(49,742		)	—			(49,742		)
Net cash provided by financing activities	1,013,681			1,995,019			488,908			(3,111,112		)	386,496
Effect of exchange rates on cash and cash equivalents	4,101			2,143			(13,947		)	—			(7,703		)
Net decrease (increase) in cash and cash equivalents	259,143			19,090			(272,447		)	—			5,786
Cash and cash equivalents, beginning of period	608,971			168,272			851,165			—			1,628,408
Cash and cash equivalents, end of period	$	868,114		$	187,362		$	578,718		$	—		$	1,634,194