SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Flextronics International 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.

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 June 26, 2015



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,347,411	$	209,441		$	774,559	$	—		$	2,331,411
Accounts receivable	—		1,080,525			1,056,730		—			2,137,255
Inventories	—		1,616,735			1,796,695		—			3,413,430
Inter company receivable	7,095,635		5,210,421			11,167,310		(23,473,366		)	—
Other current assets	1,677		208,381			988,073		—			1,198,131
Total current assets	8,444,723		8,325,503			15,783,367		(23,473,366		)	9,080,227
Property and equipment, net	—		497,172			1,646,049		—			2,143,221
Goodwill and other intangible assets, net	400		59,725			368,161		—			428,286
Other assets	2,257,484		192,856			2,118,449		(4,120,343		)	448,446
Investment in subsidiaries	1,678,491		1,801,725			16,697,245		(20,177,461		)	—
Total assets	$	12,381,098	$	10,876,981		$	36,613,271	$	(47,771,170	)	$	12,100,180

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	40,000	$	952		$	3,975	$	—		$	44,927
Accounts payable	—		1,619,892			2,717,021		—			4,336,913
Accrued payroll	—		117,485			246,044		—			363,529
Inter company payable	7,179,540		7,858,602			8,435,224		(23,473,366		)	—
Other current liabilities	47,001		776,252			927,606		—			1,750,859
Total current liabilities	7,266,541		10,373,183			12,329,870		(23,473,366		)	6,496,228
Long term liabilities	2,662,890		2,105,617			2,468,232		(4,120,343		)	3,116,396
Flextronics International Ltd. shareholders’ equity (deficit)	2,451,667		(1,601,819		)	21,779,273		(20,177,461		)	2,451,660
Noncontrolling interests	—		—			35,896		—			35,896
Total shareholders’ equity (deficit)	2,451,667		(1,601,819		)	21,815,169		(20,177,461		)	2,487,556
Total liabilities and shareholders’ equity	$	12,381,098	$	10,876,981		$	36,613,271	$	(47,771,170	)	$	12,100,180

Condensed Consolidating Balance Sheets as of March 31, 2015



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	608,971	$	168,272		$	851,165	$	—		$	1,628,408
Accounts receivable	—		1,193,491			1,144,024		—			2,337,515
Inventories	—		1,729,593			1,759,159		—			3,488,752
Inter company receivable	6,417,410		4,774,526			10,218,788		(21,410,724		)	—
Other current assets	8,143		200,476			1,077,606		—			1,286,225
Total current assets	7,034,524		8,066,358			15,050,742		(21,410,724		)	8,740,900
Property and equipment, net	—		471,052			1,621,115		—			2,092,167
Goodwill and other intangible assets, net	475		60,782			353,918		—			415,175
Other assets	2,223,402		155,172			2,131,523		(4,092,715		)	417,382
Investment in subsidiaries	1,799,956		1,677,813			16,641,211		(20,118,980		)	—
Total assets	$	11,058,357	$	10,431,177		$	35,798,509	$	(45,622,419	)	$	11,665,624

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	40,000	$	917		$	5,245	$	—		$	46,162
Accounts payable	—		1,772,695			2,788,499		—			4,561,194
Accrued payroll	—		112,692			227,047		—			339,739
Inter company payable	6,559,569		7,309,944			7,541,211		(21,410,724		)	—
Other current liabilities	30,553		772,015			1,006,560		—			1,809,128
Total current liabilities	6,630,122		9,968,263			11,568,562		(21,410,724		)	6,756,223
Long term liabilities	2,067,421		2,102,483			2,435,962		(4,092,715		)	2,513,151
Flextronics International Ltd. shareholders’ equity (deficit)	2,360,814		(1,639,569		)	21,758,549		(20,118,980		)	2,360,814
Noncontrolling interests	—		—			35,436		—			35,436
Total shareholders’ equity (deficit)	2,360,814		(1,639,569		)	21,793,985		(20,118,980		)	2,396,250
Total liabilities and shareholders’ equity	$	11,058,357	$	10,431,177		$	35,798,509	$	(45,622,419	)	$	11,665,624

Condensed Consolidating Statements of Operations for the Three-Month Period Ended June 26, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	3,834,526		$	3,945,465		$	(2,213,743	)	$	5,566,248
Cost of sales	—			3,442,739			3,984,911			(2,213,743		)	5,213,907
Gross profit	—			391,787			(39,446		)	—			352,341
Selling, general and administrative expenses	—			60,944			148,441			—			209,385
Intangible amortization	75			731			6,865			—			7,671
Interest and other, net	(267,052		)	331,716			(47,995		)	—			16,669
Income (loss) from continuing operations before income taxes	266,977			(1,604		)	(146,757		)	—			118,616
Provision for income taxes	—			9,099			(1,333		)	—			7,766
Equity in earnings in subsidiaries	(156,127		)	(18,807		)	35,653			139,281			—
Net income (loss)	$	110,850		$	(29,510	)	$	(109,771	)	$	139,281		$	110,850

Condensed Consolidating Statements of Operations for the Three-Month Period Ended June 27, 2014



	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,511,228	$	4,805,682		$	(2,674,165	)	$	6,642,745
Cost of sales	—			4,158,191		4,777,934			(2,674,165		)	6,261,960
Gross profit	—			353,037		27,748			—			380,785
Selling, general and administrative expenses	—			54,494		154,783			—			209,277
Intangible amortization	75			623		6,253			—			6,951
Interest and other, net	16,531			259,751		(301,654		)	—			(25,372		)
Income (loss) from continuing operations before income taxes	(16,606		)	38,169		168,366			—			189,929
Provision for income taxes	—			6,648		9,394			—			16,042
Equity in earnings in subsidiaries	190,493			60,982		36,431			(287,906		)	—
Net income	$	173,887		$	92,503	$	195,403		$	(287,906	)	$	173,887

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended June 26, 2015



	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	110,850	$	(29,510	)	$	(109,771	)	$	139,281		$	110,850
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	2,783		(23,490		)	(20,897		)	44,387			2,783
Unrealized gain on derivative instruments and other, net of zero tax	12,829		4,624			12,829			(17,453		)	12,829
Comprehensive income (loss)	$	126,462	$	(48,376	)	$	(117,839	)	$	166,215		$	126,462

Condensed Consolidating Statements of Comprehensive Income for the Three-Month Period Ended June 27, 2014



	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
Net income	$	173,887		$	92,503	$	195,403	$	(287,906	)	$	173,887
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(4,145		)	15,950		5,726		(21,676		)	(4,145		)
Unrealized gain on derivative instruments and other, net of zero tax	10,725			1,830		10,725		(12,555		)	10,725
Comprehensive income	$	180,467		$	110,283	$	211,854	$	(322,137	)	$	180,467

Condensed Consolidating Statements of Cash Flows for the Three-Month Period Ended June 26, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	279,177		$	(6,637	)	$	89,736		$	—		362,276
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(47,108		)	(89,728		)	—			(136,836		)
Acquisition of businesses, net of cash acquired	—			(2,785		)	(15,795		)	—			(18,580		)
Proceeds from divesture of business, net of cash held in divested business	—			—			1,000			—			1,000
Investing cash flows to affiliates	(718,381		)	(263,348		)	(1,077,202		)	2,058,931			—
Other investing activities, net	—			(14,732		)	7,152			—			(7,580		)
Net cash used in investing activities	(718,381		)	(327,973		)	(1,174,573		)	2,058,931			(161,996		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	595,309			221			18			—			595,548
Repayments of bank borrowings, long-term debt and capital lease obligations	(6,604		)	(493		)	(1,360		)	—			(8,457		)
Payments for repurchases of ordinary shares	(99,995		)	—			—			—			(99,995		)
Net proceeds from issuance of ordinary shares	44,602			—			—			—			44,602
Financing cash flows from affiliates	619,970			377,012			1,061,949			(2,058,931		)	—
Other financing activities, net	—			—			(25,252		)	—			(25,252		)
Net cash provided by financing activities	1,153,282			376,740			1,035,355			(2,058,931		)	506,446
Effect of exchange rates on cash and cash equivalents	24,362			(961		)	(27,124		)	—			(3,723		)
Net increase (decrease) in cash and cash equivalents	738,440			41,169			(76,606		)	—			703,003
Cash and cash equivalents, beginning of period	608,971			168,272			851,165			—			1,628,408
Cash and cash equivalents, end of period	$	1,347,411		$	209,441		$	774,559		$	—		$	2,331,411

Condensed Consolidating Statements of Cash Flows for the Three-Month Period Ended June 27, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(13,025	)	$	231,140		$	(299,284	)	$	—		$	(81,169	)
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(39,690		)	(33,227		)	—			(72,917		)
Proceeds from divestiture of business, net of cash held in divested business	—			—			(5,493		)	—			(5,493		)
Investing cash flows from (to) affiliates	(1,185,671		)	(532,104		)	593,559			1,124,216			—
Other investing activities, net	—			(959		)	(20,503		)	—			(21,462		)
Net cash provided by (used in) investing activities	(1,185,671		)	(572,753		)	534,336			1,124,216			(99,872		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	—			—			26,615			—			26,615
Repayments of bank borrowings, long-term debt and capital lease obligations	—			(393		)	(466		)	—			(859		)
Payments for repurchases of ordinary shares	(105,568		)	—			—			—			(105,568		)
Net proceeds from issuance of ordinary shares	9,329			—			—			—			9,329
Financing cash flows from (to) affiliates	931,635			347,775			(155,194		)	(1,124,216		)	—
Other financing activities, net	—			—			300			—			300
Net cash provided by (used in) financing activities	835,396			347,382			(128,745		)	(1,124,216		)	(70,183		)
Effect of exchange rates on cash and cash equivalents	(10,141		)	(504		)	15,831			—			5,186
Net decrease (increase) in cash and cash equivalents	(373,441		)	5,265			122,138			—			(246,038		)
Cash and cash equivalents, beginning of period	638,714			210,462			744,552			—			1,593,728
Cash and cash equivalents, end of period	$	265,273		$	215,727		$	866,690		$	—		$	1,347,690