SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONSOLIDATED 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 year ended March 31, 2016, 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 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		3,014,634			18,175,348		(24,005,408		)	—
Total assets	$	14,908,294	$	12,004,811		$	40,610,340	$	(55,138,464	)	$	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
Flextronics International Ltd. shareholders' equity	2,570,872		(445,272		)	24,450,680		(24,005,408		)	2,570,872
Noncontrolling interests	—		—			34,658		—			34,658
Total shareholders' equity	2,570,872		(445,272		)	24,485,338		(24,005,408		)	2,605,530
Total liabilities and shareholders' equity	$	14,908,294	$	12,004,811		$	40,610,340	$	(55,138,464	)	$	12,384,981

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		64,830			349,870		—			415,175
Other assets	2,210,669		155,172			2,131,523		(4,092,715		)	404,649
Investment in subsidiaries	1,799,956		1,654,226			16,640,427		(20,094,609		)	—
Total assets	$	11,045,624	$	10,413,000		$	35,657,120	$	(45,462,853	)	$	11,652,891
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	38,868	$	917		$	5,245	$	—		$	45,030
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	6,628,990		9,967,305			11,434,325		(21,275,529		)	6,755,091
Long term liabilities	2,055,820		2,102,483			2,435,962		(4,092,715		)	2,501,550
Flextronics International Ltd. shareholders' equity	2,360,814		(1,656,788		)	21,751,397		(20,094,609		)	2,360,814
Noncontrolling interests	—		—			35,436		—			35,436
Total shareholders' equity	2,360,814		(1,656,788		)	21,786,833		(20,094,609		)	2,396,250
Total liabilities and shareholders' equity	$	11,045,624	$	10,413,000		$	35,657,120	$	(45,462,853	)	$	11,652,891

Condensed Consolidating Statements of Operations for Fiscal Year Ended March 31, 2016



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	16,841,405		$	19,286,221		$	(11,708,741	)	$	24,418,885
Cost of sales	—			15,278,265			19,241,300			(11,708,741		)	22,810,824
Gross profit	—			1,563,140			44,921			—			1,608,061
Selling, general and administrative expenses	—			330,194			624,696			—			954,890
Intangible amortization	300			3,598			62,067			—			65,965
Interest and other, net	(191,859		)	1,016,302			(691,912		)	—			132,531
Income (loss) before income taxes	191,559			213,046			50,070			—			454,675
Provision for income taxes	26			(41,584		)	52,152			—			10,594
Equity in earnings in subsidiaries	252,548			(168,886		)	397,831			(481,493		)	—
Net income	$	444,081		$	85,744		$	395,749		$	(481,493	)	$	444,081

Condensed Consolidating Statements of Operations for Fiscal Year Ended March 31, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	19,016,750		$	19,543,163		$	(12,411,997	)	$	26,147,916
Cost of sales	—			17,502,863			19,511,710			(12,411,997		)	24,602,576
Gross profit	—			1,513,887			31,453			—			1,545,340
Selling, general and administrative expenses	—			258,212			586,261			—			844,473
Intangible amortization	300			3,808			27,927			—			32,035
Interest and other, net	10,086			901,059			(912,968		)	—			(1,823		)
Income (loss) before income taxes	(10,386		)	350,808			330,233			—			670,655
Provision for income taxes	—			14,143			55,711			—			69,854
Equity in earnings in subsidiaries	611,187			(141,074		)	471,575			(941,688		)	—
Net income	$	600,801		$	195,591		$	746,097		$	(941,688	)	$	600,801

Condensed Consolidating Statements of Operations for Fiscal Year Ended March 31, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	18,393,436		$	21,569,406		$	(13,854,235	)	$	26,108,607
Cost of sales	—			16,961,211			21,502,762			(13,854,235		)	24,609,738
Restructuring charges	—			9,609			49,039			—			58,648
Gross profit	—			1,422,616			17,605			—			1,440,221
Selling, general and administrative expenses	—			250,909			623,887			—			874,796
Intangible amortization	300			4,659			23,933			—			28,892
Restructuring charges	800			(271		)	16,134			—			16,663
Interest and other, net	(502,028		)	875,119			(253,675		)	—			119,416
Income (loss) before income taxes	500,928			292,200			(392,674		)	—			400,454
Provision for income taxes	52			42,950			(8,142		)	—			34,860
Equity in earnings in subsidiaries	(135,282		)	(262,871		)	368,268			29,885			—
Net income (loss)	$	365,594		$	(13,621	)	$	(16,264	)	$	29,885		$	365,594

Condensed Consolidating Statements of Comprehensive Income for Fiscal Year Ended March 31, 2016



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	444,081	$	85,744		$	395,749		$	(481,493	)	$	444,081
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	17,846		(16,979		)	(15,735		)	32,714			17,846
Unrealized loss on derivative instruments and other, net of zero tax	26,744		15,195			26,744			(41,939		)	26,744
Comprehensive income	$	488,671	$	83,960		$	406,758		$	(490,718	)	$	488,671

Condensed Consolidating Statements of Comprehensive Income for Fiscal Year Ended March 31, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income	$	600,801		$	195,591		$	746,097		$	(941,688	)	$	600,801
Other comprehensive income (loss):
Foreign currency translation adjustments, net of zero tax	(18,932		)	256,652			221,418			(478,070		)	(18,932		)
Unrealized loss on derivative instruments and other, net of zero tax	(35,417		)	(33,769		)	(35,417		)	69,186			(35,417		)
Comprehensive income	$	546,452		$	418,474		$	932,098		$	(1,350,572	)	$	546,452

Condensed Consolidating Statements of Comprehensive Income for Fiscal Year Ended March 31, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
	(in thousands)
Net income (loss)	$	365,594		$	(13,621	)	$	(16,264	)	$	29,885	$	365,594
Other comprehensive loss:
Foreign currency translation adjustments, net of zero tax	(34,683		)	(89,282		)	(89,635		)	178,917		(34,683		)
Unrealized loss on derivative instruments and other, net of zero tax	(13,992		)	(5,221		)	(13,993		)	19,214		(13,992		)
Comprehensive income (loss)	$	316,919		$	(108,124	)	$	(119,892	)	$	228,016	$	316,919

Condensed Consolidating Statements of Cash Flows for Fiscal Year Ended March 31, 2016



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by operating activities	$	162,275		$	427,259		$	546,911		$	—		$	1,136,445
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(151,383		)	(345,584		)	9			(496,958		)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business	—			(809,272		)	(101,515		)	—			(910,787		)
Investing cash flows to affiliates	(1,596,210		)	(1,609,342		)	(1,408,610		)	4,614,162			—
Other investing activities, net	(500		)	(31,011		)	42,880			—			11,369
Net cash used in investing activities	(1,596,710		)	(2,601,008		)	(1,812,829		)	4,614,171			(1,396,376		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	824,618			—			60,084			—			884,702
Repayments of bank borrowings and long-term debt and capital lease obligations	(179,920		)	(3,059		)	(7,242		)				(190,221		)
Payments for repurchases of ordinary shares	(420,317		)	—			—			—			(420,317		)
Proceeds from exercise of stock options	61,278			—			—			—			61,278
Financing cash flows from affiliates	1,240,145			2,162,840			1,211,186			(4,614,171		)	—
Other financing activities, net	—			(8,800		)	(77,000		)	—			(85,800		)
Net cash provided by financing activities	1,525,804			2,150,981			1,187,028			(4,614,171		)	249,642
Effect of exchange rates on cash and cash equivalents	34,529			2,697			(47,775		)	—			(10,549		)
Net increase (decrease) in cash and cash equivalents	125,898			(20,071		)	(126,665		)	—			(20,838		)
Cash and cash equivalents, beginning of period	608,971			168,272			851,165			—			1,628,408
Cash and cash equivalents, end of period	$	734,869		$	148,201		$	724,500		$	—		$	1,607,570

Condensed Consolidating Statements of Cash Flows for Fiscal Year Ended March 31, 2015



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	(73,356	)	$	75,775		$	791,615		$	—		794,034
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(85,876		)	(153,833		)	(15		)	(239,724		)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business	—			(20,589		)	(46,265		)	—			(66,854		)
Investing cash flows from (to) affiliates	(1,703,983		)	(1,900,810		)	796,493			2,808,300			—
Other investing activities, net	(1,500		)	(13,821		)	79,683			—			64,362
Net cash provided by (used in) investing activities	(1,705,483		)	(2,021,096		)	676,078			2,808,285			(242,216		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	303,000			4,737			11,805			—			319,542
Repayments of bank borrowings and long-term debt and capital lease obligations	(335,500		)	(3,127		)	(5,529		)	—			(344,156		)
Payments for early repurchase of long-term debt	—			—			—			—			—
Payments for repurchases of ordinary shares	(415,945		)	—			—			—			(415,945		)
Proceeds from exercise of stock options	23,497			—			11			—			23,508
Financing cash flows from (to) affiliates	2,420,952			1,904,164			(1,516,831		)	(2,808,285		)	—
Other financing activities, net	—			—			(98,966		)	—			(98,966		)
Net cash provided by (used in) financing activities	1,996,004			1,905,774			(1,609,510		)	(2,808,285		)	(516,017		)
Effect of exchange rates on cash and cash equivalents	(246,908		)	(2,643		)	248,430			—			(1,121		)
Net increase (decrease) in cash and cash equivalents	(29,743		)	(42,190		)	106,613			—			34,680
Cash and cash equivalents, beginning of period	638,714			210,462			744,552			—			1,593,728
Cash and cash equivalents, end of period	$	608,971		$	168,272		$	851,165		$	—		$	1,628,408

Condensed Consolidating Statements of Cash Flows for Fiscal Year Ended March 31, 2014



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	459,748		$	(126,813	)	$	882,974		$	551		1,216,460
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(222,197		)	(292,221		)	(585		)	(515,003		)
Acquisition and divestiture of businesses, net of cash acquired and cash held in divested business	—			(61,587		)	(171,845		)	—			(233,432		)
Investing cash flows from (to) affiliates	35,262			(1,237,006		)	(1,075,938		)	2,277,682			—
Other investing activities, net	—			(10,842		)	(24,655		)	—			(35,497		)
Net cash provided by (used in) investing activities	35,262			(1,531,632		)	(1,564,659		)	2,277,097			(783,932		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	1,066,359			277			17			—			1,066,653
Repayments of bank borrowings and long-term debt and capital lease obligations	(492,034		)	(525		)	(45,021		)	—			(537,580		)
Payments for early repurchase of long-term debt	(503,423		)	(41,417		)	—			—			(544,840		)
Payments for repurchases of ordinary shares	(475,314		)	—			—			—			(475,314		)
Proceeds from exercise of stock options	28,140			—			—			—			28,140
Financing cash flows from (to) affiliates	(277,594		)	1,681,559			873,683			(2,277,648		)	—
Other financing activities, net	—			—			52,149			—			52,149
Net cash provided by (used in) financing activities	(653,866		)	1,639,894			880,828			(2,277,648		)	(410,792		)
Effect of exchange rates on cash and cash equivalents	57,055			2,641			(74,791		)	—			(15,095		)
Net increase (decrease) in cash and cash equivalents	(101,801		)	(15,910		)	124,352			—			6,641
Cash and cash equivalents, beginning of period	740,515			226,372			620,200			—			1,587,087
Cash and cash equivalents, end of period	$	638,714		$	210,462		$	744,552		$	—		$	1,593,728