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 nine-month period ended December 31, 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 December 31, 2015



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	868,114	$	188,540		$	577,540	$	—		$	1,634,194
Accounts receivable	—		1,056,939			1,527,970		—			2,584,909
Inventories	—		1,487,706			2,003,027		—			3,490,733
Inter company receivable	9,102,531		5,282,669			12,479,607		(26,864,807		)	—
Other current assets	5,832		249,367			991,569		—			1,246,768
Total current assets	9,976,477		8,265,221			17,579,713		(26,864,807		)	8,956,604
Property and equipment, net	—		542,606			1,697,315		—			2,239,921
Goodwill and other intangible assets, net	250		66,969			1,249,798		—			1,317,017
Other assets	2,232,454		234,267			2,087,952		(4,018,697		)	535,976
Investment in subsidiaries	1,965,783		2,813,134			16,874,908		(21,653,825		)	—
Total assets	$	14,174,964	$	11,922,197		$	39,489,686	$	(52,537,329	)	$	13,049,518

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	60,000	$	917		$	4,619	$	—		$	65,536
Accounts payable	—		1,538,397			3,263,797		—			4,802,194
Accrued payroll	—		109,299			250,710		—			360,009
Inter company payable	8,809,843		8,754,992			9,299,972		(26,864,807		)	—
Other current liabilities	47,572		804,571			1,072,389		—			1,924,532
Total current liabilities	8,917,415		11,208,176			13,891,487		(26,864,807		)	7,152,271
Long term liabilities	2,714,294		2,045,880			2,577,338		(4,018,697		)	3,318,815
Flextronics International Ltd. shareholders’ equity (deficit)	2,543,255		(1,331,859		)	22,985,684		(21,653,825		)	2,543,255
Noncontrolling interests	—		—			35,177		—			35,177
Total shareholders’ equity (deficit)	2,543,255		(1,331,859		)	23,020,861		(21,653,825		)	2,578,432
Total liabilities and shareholders’ equity	$	14,174,964	$	11,922,197		$	39,489,686	$	(52,537,329	)	$	13,049,518

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		202,160			1,075,922		—			1,286,225
Total current assets	7,034,524		8,067,719			14,914,186		(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		1,658,387			16,641,212		(20,099,555		)	—
Total assets	$	11,058,357	$	10,417,161		$	35,657,905	$	(45,467,799	)	$	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		(1,652,627		)	21,752,182		(20,099,555		)	2,360,814
Noncontrolling interests	—		—			35,436		—			35,436
Total shareholders’ equity (deficit)	2,360,814		(1,652,627		)	21,787,618		(20,099,555		)	2,396,250
Total liabilities and shareholders’ equity	$	11,058,357	$	10,417,161		$	35,657,905	$	(45,467,799	)	$	11,665,624

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	$	—		$	4,598,248		$	5,717,609		$	(3,552,680	)	$	6,763,177
Cost of sales	—			4,186,909			5,676,481			(3,552,680		)	6,310,710
Gross profit	—			411,339			41,128			—			452,467
Selling, general and administrative expenses	—			83,750			156,867			—			240,617
Intangible amortization	75			960			18,284			—			19,319
Interest and other, net	49,358			318,367			(301,744		)	—			65,981
Income (loss) from continuing operations before income taxes	(49,433		)	8,262			167,721			—			126,550
Provision for income taxes	—			(8,071		)	(14,289		)	—			(22,360		)
Equity in earnings in subsidiaries	198,343			(52,808		)	(12,229		)	(133,306		)	—
Net income (loss)	$	148,910		$	(36,475	)	$	169,781		$	(133,306	)	$	148,910

Condensed Consolidating Statements of Operations for the Three-Month Period Ended December 31, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	5,164,527		$	5,437,970		$	(3,577,443	)	$	7,025,054
Cost of sales	—			4,757,332			5,436,508			(3,577,443		)	6,616,397
Gross profit	—			407,195			1,462			—			408,657
Selling, general and administrative expenses	—			64,161			151,832			—			215,993
Intangible amortization	75			937			7,033			—			8,045
Interest and other, net	27,876			249,948			(263,722		)	—			14,102
Income (loss) from continuing operations before income taxes	(27,951		)	92,149			106,319			—			170,517
Provision for income taxes	—			(5,737		)	23,355			—			17,618
Equity in earnings in subsidiaries	180,850			(69,438		)	61,337			(172,749		)	—
Net income (loss)	$	152,899		$	28,448		$	144,301		$	(172,749	)	$	152,899

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	$	—		$	13,126,846		$	15,167,659		$	(9,648,318	)	$	18,646,187
Cost of sales	—			11,972,222			15,120,559			(9,648,318		)	17,444,463
Gross profit	—			1,154,624			47,100			—			1,201,724
Selling, general and administrative expenses	—			214,015			452,783			—			666,798
Intangible amortization	225			2,881			40,011			—			43,117
Interest and other, net	(347,663		)	931,754			(477,728		)	—			106,363
Income from continuing operations before income taxes	347,438			5,974			32,034			—			385,446
Provision for income taxes	—			(4,630		)	7,339			—			2,709
Equity in earnings in subsidiaries	35,299			(104,435		)	40,531			28,605			—
Net income (loss)	$	382,737		$	(93,831	)	$	65,226		$	28,605		$	382,737

Condensed Consolidating Statements of Operations for the Nine-Month Period Ended December 31, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	14,702,071		$	15,399,047		$	(9,904,802	)	$	20,196,316
Cost of sales	—			13,616,471			15,318,124			(9,904,802		)	19,029,793
Gross profit	—			1,085,600			80,923			—			1,166,523
Selling, general and administrative expenses	—			188,788			441,072			—			629,860
Intangible amortization	225			2,624			20,379			—			23,228
Interest and other, net	(24,933		)	797,142			(773,557		)	—			(1,348		)
Income from continuing operations before income taxes	24,708			97,046			393,029			—			514,783
Provision for income taxes	—			9,053			40,041			—			49,094
Equity in earnings in subsidiaries	440,981			(55,992		)	148,946			(533,935		)	—
Net income	$	465,689		$	32,001		$	501,934		$	(533,935	)	$	465,689

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	$	(36,475	)	$	169,781	$	(133,306	)	$	148,910
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	30,063		64,298			50,828		(115,126		)	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	$	189,470	$	31,922		$	231,106	$	(263,028	)	$	189,470

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended December 31, 2014



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	152,899		$	28,448		$	144,301		$	(172,749	)	$	152,899
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(15,154		)	96,645			37,167			(133,812		)	(15,154		)
Unrealized loss on derivative instruments and other, net of zero tax	(22,797		)	(5,936		)	(22,797		)	28,733			(22,797		)
Comprehensive income	$	114,948		$	119,157		$	158,671		$	(277,828	)	$	114,948

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	$	(93,831	)	$	65,226		$	28,605		$	382,737
Other comprehensive income (loss):	0
Foreign currency translation adjustments, net of zero tax	2,579		7,113			(703		)	(6,410		)	2,579
Unrealized gain on derivative instruments and other, net of zero tax	17,782		9,883			17,782			(27,665		)	17,782
Comprehensive income (loss)	$	403,098	$	(76,835	)	$	82,305		$	(5,470	)	$	403,098

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Nine-Month Period Ended December 31, 2014



	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	465,689		$	32,001		$	501,934		$	(533,935	)	$	465,689
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(24,982		)	190,307			108,504			(298,811		)	(24,982		)
Unrealized loss on derivative instruments and other, net of zero tax	(14,505		)	(6,164		)	(14,505		)	20,669			(14,505		)
Comprehensive income	$	426,202		$	216,144		$	595,933		$	(812,077	)	$	426,202

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		$	(92,821	)	$	689,411					$	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		)	(91,009		)	—			(900,242		)
Investing cash flows to affiliates	(1,099,775		)	(994,387		)	(944,200		)	3,038,362			—
Other investing activities, net	(2,046		)	(23,270		)	26,713			—			1,397
Net cash used in investing activities	(1,101,821		)	(1,954,901		)	(1,294,424		)	3,038,367			(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			2,065,092			340,525			(3,038,367		)	—
Other financing activities, net	—			—			(49,742		)	—			(49,742		)
Net cash provided by financing activities	1,013,681			2,063,759			347,423			(3,038,367		)	386,496
Effect of exchange rates on cash and cash equivalents	4,101			4,231			(16,035		)	—			(7,703		)
Net increase (decrease) in cash and cash equivalents	259,143			20,268			(273,625		)	—			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		$	188,540		$	577,540		$	—		$	1,634,194

Condensed Consolidating Statements of Cash Flows for the Nine-Month Period Ended December 31, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(4,319	)	$	11,083		$	662,660		$	—		$	669,424
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(76,042		)	(88,340		)	(12		)	(164,394		)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business	—			(20,092		)	(38,040		)	—			(58,132		)
Investing cash flows from (to) affiliates	(1,163,617		)	(2,257,892		)	370,504			3,051,005			—
Other investing activities, net	(1,500		)	(10,597		)	580						(11,517		)
Net cash provided by (used in) investing activities	(1,165,117		)	(2,364,623		)	244,704			3,050,993			(234,043		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	223,000			—			11,523			—			234,523
Repayments of bank borrowings, long-term debt and capital lease obligations	(245,500		)	(1,686		)	(4,151		)	—			(251,337		)
Payments for repurchases of ordinary shares	(290,752		)	—			—			—			(290,752		)
Net proceeds from issuance of ordinary shares	12,341			—			—			—			12,341
Financing cash flows from (to) affiliates	1,575,271			2,340,819			(865,097		)	(3,050,993		)	—
Other financing activities, net	—			—			(29,135		)	—			(29,135		)
Net cash provided by (used in) financing activities	1,274,360			2,339,133			(886,860		)	(3,050,993		)	(324,360		)
Effect of exchange rates on cash and cash equivalents	(137,117		)	(5,893		)	145,482			—			2,472
Net decrease (increase) in cash and cash equivalents	(32,193		)	(20,300		)	165,986			—			113,493
Cash and cash equivalents, beginning of period	638,714			210,462			744,552			—			1,593,728
Cash and cash equivalents, end of period	$	606,521		$	190,162		$	910,538		$	—		$	1,707,221