Flex Ltd at UBS Global Technology and AI Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: David Vogt - UBS AG - Analyst : So within agility, right? So that is heavily exposed to the cloud hyperscaler market. Maybe if you can touch on like what you've seen in your business trends -- every company that we've talked to you this week, as you can imagine, has seen an acceleration in demand trends, order rates, other metrics that you want to look at other KPIs. Maybe can you share with investors like what you're seeing, let's go back 12 months ago when we had this conversation 12 months ago versus today. How is the arc of that trend changed? And what are you seeing from key customers within, let's start within the utility related to the hyperscaler business?

Question: David Vogt - UBS AG - Analyst : Has that -- so to your point about the integration of compute, cooling, power, have those conversations changed in the last 12 months given this incredible dynamic of just megawatt -- like just the amount of power consumption that people are expecting over the next three to five years. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 4:35PM, FLEX.OQ - Flex Ltd at UBS Global Technology and AI Conference So at the pace of your conversations or the tone or tenor of your conversations changed with partners in terms of like, hey, we're going into this integrated solution route because we have to effectively?

Question: David Vogt - UBS AG - Analyst : So does that mean -- obviously, those conversations are picking up. And obviously, the lead times need to shrink, which you're helping enable from a construction perspective. So does that mean the overall lead times that you're getting from your partners are compressing as well because they're seeing out over the next two to three years or maybe it's not lead times a better board is visibility because they're seeing what their road map looks like from a build perspective, infrastructure allocation perspective, they need to be more aggressive. They need to be faster to your point, to stand these up quicker to start generating revenue, given the mass of capital commitments that have been sort of promised over the next three to five years. So are you seeing your customers asking for more faster? Or is it just really as they're moving as quickly as they can already and it doesn't really change kind of the dynamic that you're seeing?

Question: David Vogt - UBS AG - Analyst : Got it. And you mentioned visibility for each of the different components, so silicon providers, colo, hyperscalers. From a silicon provider perspective, is it just the fact that the compression of the cycle in compute and silicon improvement has compressed, that's giving you that degree of visibility from the silicon provider or you're just being brought in sooner earlier than maybe in historical cycles as we go from generation to generation to generation of silicon. I'm just trying to think about because it feels like the accelerated compute cycle is is increasingly compressed. So just is that factoring in to kind of the visibility in those lead times that you're getting in the facility?

Question: David Vogt - UBS AG - Analyst : Got it. And so one final point on sort of the data center market holistically. There's been a lot of discussion, market speculation about different partnerships different relationships, equity investments in different partnerships and relationships, this kind of holistic circular kind of dynamic. How does that affect Flex in any way? I would imagine it doesn't, maybe it accelerates innovation. It accelerates deployment. But from your perspective, I would imagine that you're somewhat agnostic kind of an arms dealer, if you will, to what's happening. But I just want to make sure I understand kind of is there any sort of outside of increasing the opportunity set for you. Is there any sort of relationship to these types of relationships that affect sort of what you're trying to do at Flex?

Question: David Vogt - UBS AG - Analyst : And maybe just as a follow-up, Kevin. So when you talk about staying disciplined and maintaining metrics and operating ratios and ROI, but given the wealth of opportunities that should present itself to a company like Flex over the next three to five years. Is there a little bit of financial maybe wiggle room or flexibility to -- I know Mike I just smiled on that question regarding so the opportunities seem to be fairly large to the cycle that Michael made. Should investors think that, look, there's if it's a significantly compelling opportunity that has an incredibly long tail that fits into your return characteristics, maybe it's not perfectly into that box, if you will but it's still value enhancing in other ways to the business? Is that something that you're thinking about and contemplating as we move forward?

Question: David Vogt - UBS AG - Analyst : Because we get asked by investors all the time, there's just a wealth of new programs that have been discussed, talked about chatter from cooling, accelerators, traditional compute with an accelerator.

Question: David Vogt - UBS AG - Analyst : Well, since you mentioned other businesses, so like within reliability, obviously, these are good businesses, currently do not have the same kind of growth dynamics that the data center colo silicon markets afford you. investors how should investors think about kind of the those end market growth, your competitive business sitting there, to your point, capital is not fine -- if capital is not infinite. Obviously, I think most people in this room here are much more technology-centric versus, let's say, industrial EV centric. So maybe just give us a sense for how you're thinking about the trends and the dynamics in those end markets in reliability, how we should think about

Question: David Vogt - UBS AG - Analyst : And then along those lines, obviously, they have different supply chains, different commodity input issues, but I think most people in this room are focused on the supply chain implications for the data center side. I know auto EV industrial automation is critical to the story. But for the sake of this audience, maybe what are you seeing from a supply chain perspective today given sort of the unevenness or maybe the variability in commodity costs. How is that affecting sort of your ability -- you mentioned input earlier, but your ability to scale up deliver at scale for your customers? And what is it doing for sort of the economics from the Flex perspective? And is basically everything to be able to pass through to the customer?

Question: David Vogt - UBS AG - Analyst : Does it change the bottom effectively, right, regionalization. I would imagine bringing more to US is more expensive than relying on China and Southeast Asia. So how do you think about that in that context?

Question: David Vogt - UBS AG - Analyst : So since you mentioned margin pass-through, how are you thinking about sort of the competitive landscape on program wins, profitability by end market, if you will, like cloud. It's a very competitive market. There's a lot of well-capitalized companies that are in kind of the same LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 4:35PM, FLEX.OQ - Flex Ltd at UBS Global Technology and AI Conference let's call it circle of what Flex does, both domestically and outside of the United States. Any change in like the pricing dynamic, what that means for margins in data center and cloud just to start.

Question: David Vogt - UBS AG - Analyst : So I know you're there now. So that is a sustainable, both above 6% number going forward without any degree of like cyclicality or variability

Question: David Vogt - UBS AG - Analyst : And so you're operating at margins given the mix in your business at above, let's say, other regional competitors or domestic competitors. Is there an opportunity for the entire industry to continue to mix higher and maybe be a little bit less you've done a really good job I'm trying LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 4:35PM, FLEX.OQ - Flex Ltd at UBS Global Technology and AI Conference to right these the right words without imputing the business like being less commodity centric, right? Is there anything else in the portfolio that's maybe a little bit too commodity-centric where you're not getting the appropriate value for what you provide to a customer that helps drive incremental to your point, incremental margins higher going forward.

Question: David Vogt - UBS AG - Analyst : One question I have that we get asked is capacity. How do you think about additional capacity in the context of obviously meeting the demands of customers, but also managing the margin dynamics that we're talking about, you're mixing up, your decreasing your reliance on lower-margin products, but capacity is obviously a key consideration as we think about this over the medium term. So how do we think about where your capacity focus is going forward and what that might mean for margins?

Question: David Vogt - UBS AG - Analyst : Got it. Maybe just in the final minute or 2. I'd like to ask companies like what is least understood, what is misunderstood about the story at this point, demand is great. Performance has been great from an execution perspective, margin accretion. What's maybe not quite fully appreciated about the Flex story at this point in your journey?

Question: David Vogt - UBS AG - Analyst : Great. I think we are out of time. Thank you, everyone. Thank you, Michael. Thank you, Kevin.