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, 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 July 1, 2016



	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	431,588	$	118,892		$	1,128,855	$	—		$	1,679,335
Accounts receivable	—		819,169			1,238,774		—			2,057,943
Inventories	—		1,536,360			2,058,477		—			3,594,837
Inter company receivable	9,624,074		5,918,488			12,736,490		(28,279,052		)	—
Other current assets	1,740		182,510			904,594		—			1,088,844
Total current assets	10,057,402		8,575,419			18,067,190		(28,279,052		)	8,420,959
Property and equipment, net	—		561,046			1,735,399		—			2,296,445
Goodwill and other intangible assets, net	100		60,173			1,264,341		—			1,324,614
Other assets	2,232,494		269,927			2,001,920		(4,037,835		)	466,506
Investment in subsidiaries	2,675,293		3,174,268			18,214,271		(24,063,832		)	—
Total assets	$	14,965,289	$	12,640,833		$	41,283,121	$	(56,380,719	)	$	12,508,524

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Bank borrowings and current portion of long-term debt	$	58,836	$	946		$	6,238	$	—		$	66,020
Accounts payable	—		1,477,964			2,839,607		—			4,317,571
Accrued payroll	—		136,897			240,630		—			377,527
Inter company payable	9,557,901		8,546,945			10,174,206		(28,279,052		)	—
Other current liabilities	26,524		809,796			1,030,265		—			1,866,585
Total current liabilities	9,643,261		10,972,548			14,290,946		(28,279,052		)	6,627,703
Long term liabilities	2,698,621		2,059,725			2,493,716		(4,037,835		)	3,214,227
Flextronics International Ltd. shareholders’ equity (deficit)	2,623,407		(391,440		)	24,455,272		(24,063,832		)	2,623,407
Noncontrolling interests	—		—			43,187		—			43,187
Total shareholders’ equity (deficit)	2,623,407		(391,440		)	24,498,459		(24,063,832		)	2,666,594
Total liabilities and shareholders’ equity	$	14,965,289	$	12,640,833		$	41,283,121	$	(56,380,719	)	$	12,508,524

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		3,010,111			18,175,348		(24,000,885		)	—
Total assets	$	14,908,294	$	12,000,288		$	40,610,340	$	(55,133,941	)	$	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 (deficit)	2,570,872		(449,795		)	24,450,680		(24,000,885		)	2,570,872
Noncontrolling interests	—		—			34,658		—			34,658
Total shareholders’ equity (deficit)	2,570,872		(449,795		)	24,485,338		(24,000,885		)	2,605,530
Total liabilities and shareholders’ equity	$	14,908,294	$	12,000,288		$	40,610,340	$	(55,133,941	)	$	12,384,981

Condensed Consolidating Statements of Operations for the Three-Month Period Ended July 1, 2016



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net sales	$	—		$	3,830,352		$	4,336,646		$	(2,290,185	)	$	5,876,813
Cost of sales	—			3,413,282			4,347,721			(2,290,185		)	5,470,818
Gross profit (loss)	—			417,070			(11,075		)	—			405,995
Selling, general and administrative expenses	—			69,969			169,577			—			239,546
Intangible amortization	75			717			20,806			—			21,598
Interest and other, net	(316,390		)	416,317			(71,999		)	—			27,928
Income (loss) from continuing operations before income taxes	316,315			(69,933		)	(129,459		)	—			116,923
Provision for income taxes	—			595			10,599			—			11,194
Equity in earnings in subsidiaries	(210,586		)	(727		)	(22,105		)	233,418			—
Net income (loss)	$	105,729		$	(71,255	)	$	(162,163	)	$	233,418		$	105,729

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	$	—		$	4,046,385		$	3,935,515		$	(2,415,652	)	$	5,566,248
Cost of sales	—			3,644,059			3,985,500			(2,415,652		)	5,213,907
Gross profit (loss)	—			402,326			(49,985		)	—			352,341
Selling, general and administrative expenses	—			63,559			145,826			—			209,385
Intangible amortization	75			960			6,636			—			7,671
Interest and other, net	(267,052		)	336,992			(53,271		)	—			16,669
Income (loss) from continuing operations before income taxes	266,977			815			(149,176		)	—			118,616
Provision for (benefit from) income taxes	—			9,099			(1,333		)	—			7,766
Equity in earnings in subsidiaries	(156,127		)	(17,826		)	37,047			136,906			—
Net income (loss)	$	110,850		$	(26,110	)	$	(110,796	)	$	136,906		$	110,850

Condensed Consolidating Statements of Comprehensive Income (Loss) for the Three-Month Period Ended July 1, 2016



	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Net income (loss)	$	105,729	$	(71,255	)	$	(162,163	)	$	233,418		$	105,729
Other comprehensive income:
Foreign currency translation adjustments, net of zero tax	9,861		17,709			24,763			(42,472		)	9,861
Unrealized gain on derivative instruments and other, net of zero tax	1,348		2,449			1,348			(3,797		)	1,348
Comprehensive income (loss)	$	116,938	$	(51,097	)	$	(136,052	)	$	187,149		$	116,938

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	$	110,850	$	(26,110	)	$	(110,796	)	$	136,906		$	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	$	(44,976	)	$	(118,864	)	$	163,840		$	126,462

Condensed Consolidating Statements of Cash Flows for the Three-Month Period Ended July 1, 2016



	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In thousands)
Net cash provided by (used in) operating activities	$	300,435		$	(217,862	)	$	181,392		$	(33	)	$	263,932
Cash flows from investing activities:
Purchases of property and equipment, net of proceeds from disposal	—			(39,399		)	(103,976		)	(6		)	(143,381		)
Acquisition of businesses, net of cash acquired	—			(8,888		)	(604		)	—			(9,492		)
Proceeds from divesture of business, net of cash held in divested business	—			—			14,828			—			14,828
Investing cash flows to affiliates	(481,875		)	(816,210		)	(653,366		)	1,951,451			—
Other investing activities, net	1			(1,260		)	27,520			—			26,261
Net cash used in investing activities	(481,874		)	(865,757		)	(715,598		)	1,951,445			(111,784		)
Cash flows from financing activities:
Proceeds from bank borrowings and long-term debt	74,972			—			46			—			75,018
Repayments of bank borrowings, long-term debt and capital lease obligations	(90,000		)	(1,152		)	(1,070		)				(92,222		)
Payments for repurchases of ordinary shares	(94,715		)	—			—			—			(94,715		)
Net proceeds from issuance of ordinary shares	3,966			—			—			—			3,966
Financing cash flows (to) from affiliates	(30,704		)	1,056,584			925,532			(1,951,412		)	—
Other financing activities, net	30,000			—			(17,099		)	—			12,901
Net cash (used in) provided by financing activities	(106,481		)	1,055,432			907,409			(1,951,412		)	(95,052		)
Effect of exchange rates on cash and cash equivalents	(15,361		)	(1,122		)	31,152			—			14,669
Net increase (decrease) in cash and cash equivalents	(303,281		)	(29,309		)	404,355			—			71,765
Cash and cash equivalents, beginning of period	734,869			148,201			724,500			—			1,607,570
Cash and cash equivalents, end of period	$	431,588		$	118,892		$	1,128,855		$	—		$	1,679,335

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	$	280,844		$	(4,684	)	$	86,116		$	—		$	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 divestiture of business, net of cash held in divested business	—			—			1,000			—			1,000
Investing cash flows to affiliates	(720,048		)	(162,774		)	(1,176,220		)	2,059,042			—
Other investing activities, net	—			(14,787		)	7,207			—			(7,580		)
Net cash used in investing activities	(720,048		)	(227,454		)	(1,273,536		)	2,059,042			(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			274,540			1,164,532			(2,059,042		)	—
Other financing activities, net	—			—			(25,252		)	—			(25,252		)
Net cash provided by financing activities	1,153,282			274,268			1,137,938			(2,059,042		)	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