1. CONFIDENTIAL Supplier Finance Program (SFP) Zuzana Dombovicova Corporate Treasury

2. 1 Agenda What does SFP mean? Costs for the Suppliers of SFP Benefits of SFP Implementation of SFP SFP Key flex Contacts FAQ

3. SFP as Solution for solving the Challenges! 2

4. What does SFP mean? 4

5. What does SFP mean? (1) 5 SFP is a partnership btw flex and a bank which enables flex´s suppliers a non-recourse sell of their flex receivables to the bank at attractive rate based on flex credit rating SFP provides to Suppliers an opportunity to receive the Invoices paid earlier as on the flex´s monthly payment date Process: 1. flex approves invoice in ERP 2. Invoice is in general automatically uploaded to Bank´s web portal 3. Supplier receives a notification from the Bank about approved Invoice for a future value date 4. Supplier decides if the Invoices has to be paid by the Bank before the monthly payment date or not 5. In case of an early payment, Bank automatically remits the funds (discounted for a fee) to the Supplier, typically same day instruction for next value day settlement. In case of a non early payment, Bank remits the funds (in full amount) to the Supplier on the monthly payment date 6. On the monthly payment date Bank automatically remits the funds from flex account (using direct debit) for the Invoice amount

6. What does SFP mean? (2) 6 Supplier does not need to be a client of the respective SFP Bank and is in general cases not forced to open any bank account with this Bank Supplier gets access to Bank´s web portal and is able to check status of the respective invoice and select invoices for an early payment In implementation stage Supplier can decide btw 2 payment options: –Automated Early Payment Option = by flex approved invoices and uploaded into Bank´s web portals are automatically always paid by the Bank to Supplier, typically one day after invoice upload. Supplier does not need to confirm the early payment –Optional Early Payment Option = Supplier can choose for each invoices if he wants to have the invoice paid before or on the monthly payment date Supplier needs to ensure that its flex receivables are free and clear of all security interests, liens or claims of any kind

7. Costs for the Suppliers of SFP 7 In case of an Early Payment selection, Supplier receives the invoice amount less a margin (discount) charged by the Bank. The margin is reflecting the flex credit rating ('BBB-' by S&P) and thus represents attractive financing for the Supplier. Formula: Example: Payment Term: 90 Days Invoice Due Date: May 19th Invoice Due Date with Octopus: June 2 nd Days to approve & upload the invoice: 15 $100,000 0.80%* + 1.25% USD LIBOR 3MMARGIN 0.51% of Invoice Value $506.81 Discount Charge X = (104 –15) 360 X

8. Benefits of SFP 7 SFP

9. Benefits for Suppliers 9 Early Payment Option instead of waiting for payment directly from flex Suppliers can obtain short-term funding at an attractive rate based on flex credit rating & without utilizing their own credit lines Cheap Liquidity Source Accelerate cash flows by reducing Accounts Receivables, shortened DSO On Non-Recourse basis / No Balance Sheet impact – it´s a True Sale so has no impact on Balance Sheet Flexibility Visibility of Invoice Status Time Saving – no payment chasers and invoice status requests to flex anymore

10. Implementation of SFP 9

11. 1) Supplier contacts and discusses with flex Procurement team possibility to join flex SFP program 2) flex Procurement aligns with flex Corporate Treasury 3) Supplier signs and acknowledges the enclosed document 4) Corporate Treasury gets the Bank in contact with the Supplier 5) Suppliers signs the respective Agreements with the Bank and get access to the Bank´s web portal 6) Bank completes set up at their end - implement flex site, Supplier and relevant Vendor codes 7) Change of payment method in flex ERP to SFP related one and upload first invoice file to the Bank Process 11

12. Describes the terms & conditions of the program and rights & duties btw flex and the Bank Debit Account Nr needs to be provided 2. Payment Services Agreement Documentation Describes the terms and conditions under which Supplier has the option to sell the receivable on a true sale basis Credit Account Nr has to be provided 3. Receivable Purchase Agreement Supplier Bank 1.Commercial supply contract (unchanged) 2. Payment Services Agreement 3. Receivable Purchase Agreement ! There can´t be any three way agreement/ arrangement btw Flex, Bank and the Supplier. There should be just an agreement btw Flex and Bank and a separate one btw the Bank and the Supplier. !

13. FAQ 12

14. How quickly will the Supplier get their funds from the Bank? The Supplier will receive an electronic payment same day or a day after the invoice is approved and uploaded to SFP portal by flex. What makes up the discount rate? The components of the discount rate are a combination of the benchmark rate (e.g. USD LIBOR for USD) and a spread earned by the Bank which covers the program cost and a credit cost associated with credit rating of flex. The actual rate/spread will be discussed and set in negotiations between the Bank and the Supplier. Is there any cost to the Supplier when no invoices are requested to pay earlier/ discounted? No. The charge = discount rate applies only for early paid invoices. How can the Bank provide a better financing rate through SFP? SFP eliminates most risks (such as performance risk of the Supplier, dilution, dispute risks) for the Bank except for flex's credit risk. This allows Bank to determine its financing rate based primarily on the credit risk of the buyer - not the Supplier. flex is rated as an investment grade company with excellent access to the debt capital markets at very competitive rates. Frequently Asked Questions (1) 14

15. How does SFP help Suppliers reduce working capital requirements? SFP is structured as a receivables purchase program. Once a Supplier receives the discounted payment, the Supplier should be able to reduce the receivables (A/R) on its balance sheet. In addition, SFP allows Suppliers to see future payments as soon as they are approved by flex. This allows Suppliers to reduce the amount of working capital (cash) maintained as a buffer against payment uncertainty. How long will it take a Supplier to be set up on the SFP platform? In order to participate in the SFP, Suppliers will need to execute a Receivable Purchase Agreement with the Bank as well as provide basic set up information. Generally Suppliers can be set up within 10 business days following receipt of their duly signed documentation. Is there any agreement that needs to signed between flex and Supplier? The commercial contract btw flex and the Supplier remains untouched and Supplier just needs to sign and acknowledge the document enclosed on slide 11. Other than this, the Supplier needs to execute the respective agreements with the Bank. Frequently Asked Questions (2) 15

16. Frequently Asked Questions (3) Who should be contacted for entering SFP? Supplier should contact the respective responsible flex Procurement person who will get in touch with flex Treasury. After an internal approval process is passed, Supplier will be directly contacted by the bank explaining further steps and providing the necessary agreements. 16

17. SFP Key flex Contacts 1)Corporate Treasury Zuzana Dombovicova Zuzana.Dombovicova@flextronics.com 2) Procurement Contact your flex Commodity Management team 3) GBS SFP Team Vinoth Vivekanandan Vinoth.Vivekanandan@flextronics.com

18. Thank you! 17