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. During the three-month period ended September 25, 2015, and in conjunction with the new $600 million Notes, a new entity was added as a guarantor subsidiary for all three tranches of the Notes. Accordingly, the Company recast the condensed consolidating financial statements presented below to reflect this change.

Condensed Consolidating Balance Sheets as of September 25, 2015



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	517,631	$	226,469		$	924,327	$	—		$	1,668,427
Accounts receivable	—		1,352,781			1,194,029		—			2,546,810
Inventories	—		1,494,305			2,067,021		—			3,561,326
Inter company receivable	8,919,282		5,578,552			12,359,980		(26,857,814		)	—
Other current assets	3,749		202,794			1,002,388		—			1,208,931
Total current assets	9,440,662		8,854,901			17,547,745		(26,857,814		)	8,985,494
Property and equipment, net	—		506,394			1,711,636		—			2,218,030
Goodwill and other intangible assets, net	325		62,580			918,933		—			981,838
Other assets	2,259,454		198,711			2,139,936		(4,123,124		)	474,977
Investment in subsidiaries	1,654,260		2,412,432			16,883,121		(20,949,813		)	—
Total assets	$	13,354,701	$	12,035,018		$	39,201,371	$	(51,930,751	)	$	12,660,339

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	43,125	$	941		$	3,906	$	—		$	47,972
Accounts payable	—		1,514,042			3,273,899		—			4,787,941
Accrued payroll	—		121,059			279,941		—			401,000
Inter company payable	8,213,861		8,993,273			9,650,680		(26,857,814		)	—
Other current liabilities	30,642		855,909			909,316		—			1,795,867
Total current liabilities	8,287,628		11,485,224			14,117,742		(26,857,814		)	7,032,780
Long term liabilities	2,646,945		2,109,106			2,539,057		(4,123,124		)	3,171,984
Flextronics International Ltd. shareholders’ equity (deficit)	2,420,128		(1,559,312		)	22,509,125		(20,949,813		)	2,420,128
Noncontrolling interests	—		—			35,447		—			35,447
Total shareholders’ equity (deficit)	2,420,128		(1,559,312		)	22,544,572		(20,949,813		)	2,455,575
Total liabilities and shareholders’ equity	$	13,354,701	$	12,035,018		$	39,201,371	$	(51,930,751	)	$	12,660,339

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	—		1,208,632			1,128,883		—			2,337,515
Inventories	—		1,729,593			1,759,159		—			3,488,752
Inter company receivable	6,417,410		4,759,062			10,099,057		(21,275,529		)	—
Other current assets	8,143		202,161			1,075,921		—			1,286,225
Total current assets	7,034,524		8,067,720			14,914,185		(21,275,529		)	8,740,900
Property and equipment, net	—		471,052			1,621,115		—			2,092,167
Goodwill and other intangible assets, net	475		64,831			349,869		—			415,175
Other assets	2,223,402		155,172			2,131,523		(4,092,715		)	417,382
Investment in subsidiaries	1,799,956		1,681,521			16,641,212		(20,122,689		)	—
Total assets	$	11,058,357	$	10,440,296		$	35,657,904	$	(45,490,933	)	$	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	—		1,758,305			2,802,889		—			4,561,194
Accrued payroll	—		112,692			227,047		—			339,739
Inter company payable	6,559,569		7,250,235			7,465,725		(21,275,529		)	—
Other current liabilities	30,553		845,156			933,419		—			1,809,128
Total current liabilities	6,630,122		9,967,305			11,434,325		(21,275,529		)	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		(1,629,492		)	21,752,181		(20,122,689		)	2,360,814
Noncontrolling interests	—		—			35,436		—			35,436
Total shareholders’ equity (deficit)	2,360,814		(1,629,492		)	21,787,617		(20,122,689		)	2,396,250
Total liabilities and shareholders’ equity	$	11,058,357	$	10,440,296		$	35,657,904	$	(45,490,933	)	$	11,665,624

Condensed Consolidating Statements of Operations for the Three-Month Period Ended September 25, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,482,213		$	5,514,535		$	(3,679,986	)	$	6,316,762
Cost of sales	—			4,141,254			5,458,578			(3,679,986		)	5,919,846
Gross profit	—			340,959			55,957			—			396,916
Selling, general and administrative expenses	—			66,682			150,114			—			216,796
Intangible amortization	75			960			15,092			—			16,127
Interest and other, net	(132,637		)	277,355			(121,005		)	—			23,713
Income (loss) from continuing operations before income taxes	132,562			(4,038		)	11,756			—			140,280
Provision for income taxes	—			(5,658		)	22,961			—			17,303
Equity in earnings in subsidiaries	(9,585		)	(33,969		)	16,621			26,933			—
Net income (loss)	$	122,977		$	(32,349	)	$	5,416		$	26,933		$	122,977

Condensed Consolidating Statements of Operations for the Three-Month Period Ended September 26, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	4,732,749		$	5,184,889		$	(3,389,121	)	$	6,528,517
Cost of sales	—			4,403,702			5,136,855			(3,389,121		)	6,151,436
Gross profit	—			329,047			48,034			—			377,081
Selling, general and administrative expenses	—			62,825			141,765			—			204,590
Intangible amortization	75			834			7,323			—			8,232
Interest and other, net	(68,309		)	288,590			(210,359		)	—			9,922
Income (loss) from continuing operations before income taxes	68,234			(23,202		)	109,305			—			154,337
Provision for income taxes	—			8,142			7,292			—			15,434
Equity in earnings in subsidiaries	70,669			(50,729		)	50,147			(70,087		)	—
Net income (loss)	$	138,903		$	(82,073	)	$	152,160		$	(70,087	)	$	138,903

Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 25, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	8,528,598		$	9,450,050		$	(6,095,638	)	$	11,883,010
Cost of sales	—			7,785,313			9,444,078			(6,095,638		)	11,133,753
Gross profit	—			743,285			5,972			—			749,257
Selling, general and administrative expenses	—			130,238			295,943			—			426,181
Intangible amortization	150			1,921			21,727			—			23,798
Interest and other, net	(398,020		)	613,767			(175,365		)	—			40,382
Income (loss) from continuing operations before income taxes	397,870			(2,641		)	(136,333		)	—			258,896
Provision for income taxes	—			3,441			21,628			—			25,069
Equity in earnings in subsidiaries	(164,043		)	(52,516		)	52,584			163,975			—
Net income (loss)	$	233,827		$	(58,598	)	$	(105,377	)	$	163,975		$	233,827

Condensed Consolidating Statements of Operations for the Six-Month Period Ended September 26, 2014



	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	9,537,544	$	9,961,077		$	(6,327,359	)	$	13,171,262
Cost of sales	—			8,859,138		9,881,617			(6,327,359		)	12,413,396
Gross profit	—			678,406		79,460			—			757,866
Selling, general and administrative expenses	—			124,627		289,240			—			413,867
Intangible amortization	150			1,687		13,346			—			15,183
Interest and other, net	(51,777		)	547,193		(510,866		)	—			(15,450		)
Income from continuing operations before income taxes	51,627			4,899		287,740			—			344,266
Provision for income taxes	—			14,789		16,687			—			31,476
Equity in earnings in subsidiaries	261,163			13,647		86,579			(361,389		)	—
Net income	$	312,790		$	3,757	$	357,632		$	(361,389	)	$	312,790

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended September 25, 2015



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
	(in thousands)
Net income (loss)	$	122,977		$	(32,349	)	$	5,416		$	26,933	$	122,977
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(30,267		)	(33,696		)	(30,633		)	64,329		(30,267		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	(5,544		)	1,160			(5,544		)	4,384		(5,544		)
Comprehensive income (loss)	$	87,166		$	(64,885	)	$	(30,761	)	$	95,646	$	87,166

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended September 26, 2014



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	138,903		$	(82,073	)	$	152,160		$	(70,087	)	$	138,903
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(5,683		)	77,712			65,611			(143,323		)	(5,683		)
Unrealized loss on derivative instruments and other, net of zero tax	(2,433		)	(2,058		)	(2,433		)	4,491			(2,433		)
Comprehensive income (loss)	$	130,787		$	(6,419	)	$	215,338		$	(208,919	)	$	130,787

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 25, 2015



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	233,827		$	(58,598	)	$	(105,377	)	$	163,975		$	233,827
Other comprehensive income (loss):	0
Foreign currency translation adjustments, net of zero tax	(27,484		)	(57,186		)	(51,530		)	108,716			(27,484		)
Unrealized gain on derivative instruments and other, net of zero tax	7,285			5,785			7,285			(13,070		)	7,285
Comprehensive income (loss)	$	213,628		$	(109,999	)	$	(149,622	)	$	259,621		$	213,628

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Six-Month Period Ended September 26, 2014



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
Net income	$	312,790		$	3,757		$	357,632	$	(361,389	)	$	312,790
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(9,828		)	93,662			71,337		(164,999		)	(9,828		)
Unrealized gain (loss) on derivative instruments and other, net of zero tax	8,292			(228		)	8,292		(8,064		)	8,292
Comprehensive income	$	311,254		$	97,191		$	437,261	$	(534,452	)	$	311,254

Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 25, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	389,949		$	(247,462	)	$	519,508		$	—		$	661,995
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(88,699		)	(205,330		)	11			(294,018		)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business	—			(559,442		)	(82,471		)	—			(641,913		)
Investing cash flows to affiliates	(1,326,493		)	(836,415		)	(1,193,747		)	3,356,655			—
Other investing activities, net	—			(22,822		)	12,306			—			(10,516		)
Net cash used in investing activities	(1,326,493		)	(1,507,378		)	(1,469,242		)	3,356,666			(946,447		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	595,309			209			35			—			595,553
Repayments of bank borrowings, long-term debt and capital lease obligations	(17,507		)	(1,039		)	(2,544		)	—			(21,090		)
Payments for repurchases of ordinary shares	(241,978		)	—			—			—			(241,978		)
Net proceeds from issuance of ordinary shares	49,074			—			—			—			49,074
Financing cash flows from affiliates	435,540			1,810,912			1,110,214			(3,356,666		)	—
Other financing activities, net	—			—			(37,872		)	—			(37,872		)
Net cash provided by financing activities	820,438			1,810,082			1,069,833			(3,356,666		)	343,687
Effect of exchange rates on cash and cash equivalents	24,766			2,955			(46,937		)	—			(19,216		)
Net increase (decrease) in cash and cash equivalents	(91,340		)	58,197			73,162			—			40,019
Cash and cash equivalents, beginning of period	608,971			168,272			851,165			—			1,628,408
Cash and cash equivalents, end of period	$	517,631		$	226,469		$	924,327		$	—		$	1,668,427

Condensed Consolidating Statements of Cash Flows for the Six-Month Period Ended September 26, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	24,949		$	(200,703	)	$	481,999		$	—		$	306,245
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(73,455		)	(64,929		)	(11		)	(138,395		)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business	—			—			(38,082		)	—			(38,082		)
Investing cash flows from (to) affiliates	(833,951		)	(924,184		)	255,111			1,503,024			—
Other investing activities, net	—			(6,134		)	(22,721		)	—			(28,855		)
Net cash provided by (used in) investing activities	(833,951		)	(1,003,773		)	129,379			1,503,013			(205,332		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	—			—			11,387			—			11,387
Repayments of bank borrowings, long-term debt and capital lease obligations	(6,250		)	(888		)	(2,047		)	—			(9,185		)
Payments for repurchases of ordinary shares	(206,771		)	—			—			—			(206,771		)
Net proceeds from issuance of ordinary shares	11,412			—			—			—			11,412
Financing cash flows from (to) affiliates	925,410			1,317,706			(740,103		)	(1,503,013		)	—
Other financing activities, net	—			—			3,382			—			3,382
Net cash provided by (used in) financing activities	723,801			1,316,818			(727,381		)	(1,503,013		)	(189,775		)
Effect of exchange rates on cash and cash equivalents	(83,374		)	(1,139		)	93,999			—			9,486
Net decrease (increase) in cash and cash equivalents	(168,575		)	111,203			(22,004		)	—			(79,376		)
Cash and cash equivalents, beginning of period	638,714			210,462			744,552			—			1,593,728
Cash and cash equivalents, end of period	$	470,139		$	321,665		$	722,548		$	—		$	1,514,352