2015 INVESTOR & ANALYST DAY

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1 2015 INVESTOR & ANALYST DAY Creating Shareholder Value Chris Collier Chief Financial Officer May 6, 2015

2 What You Will Hear Today 1 Improved execution 2 Operating with discipline 3 Attractive business model 4 Capital allocation 5 Shareholder value creation 1

3 improved EXECUTION

4 3 Key commitments 5 Consistent Financial Principles 3

5 Key Commitments Enabled by Consistent Financial Principles 5-10% Annual Net Income Growth 5-Year Free Cash Flow Target $3 to $4 Billion (FY13-FY17) Return 50%+ of Free Cash Flow 15% FY15 $2B last 3 fiscal years 75% FY15 Financial Principles Revenue Growth Operating Profit Expansion EPS Accretion Strong Cash Flow Generation Solid Capital Structure 4

6 Our Improving Execution Revenue ($ in billions) Adj. Operating Income ($ in millions) Adj. EPS (per share) Free Cash Flow +11% ~$26B +23% $ % $ Year Target $3 - $4 Billion by FY17 ~$24B $611 $0.84 ~$2B FY13 FY15 FY13 FY15 FY13 FY15 FY13 FY15 FY17E Portfolio evolution continues HRS business grew 25% in the last 2 years IEI business grew 19% in the last 2 years 2 year adjusted operating profit growth of 23% 8 consecutive quarters of operating margin expansion Adjusted net Income growth of 15% in FY15 Achieved record annual adjusted EPS Generated ~$2 billion of free cash flow in the last 3 years On track to achieve 5-year target by FY17 5

7 operating with DISCIPLINE

8 Disciplined Expense Management Adj. SG&A 1 ($ in millions) $211 $212 $211 $212 $213 $213 $205 $205 $199 $199 $196 $196 $204 $203 $204 $203 Strong management focus on controllable elements SG&A contains our investments in R&D Strengthened business development capabilities Expect to remain in this range of quarterly spend Strong earnings leverage Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 1. Adjusted SG&A includes design and R&D expense but excludes stock compensation expense and restructuring charges 7

9 Disciplined Net Working Capital Management Net Working Capital 1 ($ in millions) 8% 6% 6.5% $1,542 $1, % $2,020 $2, % $1,866 $1,866 Continue to operate within our 6-8% targeted range Conversion cycle between days Strong credit worthy customer base Multiple levers to maintain this range FY13 FY14 FY15 Net Working Capital NWC % of Sales 1. Net Working Capital = Total A/R (including non-cash ABS) & inventory less A/P (excluding customer advances) 8

10 Disciplined Capital Investment Net Capex 1 ($ in millions) $394 $388 $394 $388 $435 $435 $515 $515 Avg. depreciation $425 million $347 $240 $240 $107 million proceeds FY15 net capex aided by over $100 million in proceeds Significant investment in the past 2 years to support our high-growth IEI & HRS businesses FY11 FY12 FY13 FY14 FY15 Effectively leveraging our strong global physical infrastructure Continue to operate at or below depreciation levels 1. Net Capex defined as is capital expenditure less proceeds from sale of property, plant & equipment 9

11 attractive BUSINESS model

12 Continued Portfolio Evolution CTG INS HRS IEI Target 1 42% 39% FY10 34% FY15 35% ~30% FY20E ~30% 13% 6% 17% 14% ~20% ~20% 19% 31% ~40% HRS + IEI $4.5B HRS + IEI $8.0B HRS + IEI ~$13.0B More predictable earnings and higher margins 1. Fiscal 2020 target represents our targeted long-term model (double-digit HRS & IEI growth, INS stable, CTG growing in-line with GDP 2.5%) 11

13 Driving Operating Income Expansion and Margin Expansion FY15 Adjusted Operating Income Target Adjusted Operating Margin Range FY15 Adjusted Operating Income HRS $228M 5% 7% IEI $132M 4% 6% 26% 31% INS CTG Corporate Services & Other 1 $257M $218M ($84M) 3% 2% 3% 4% 16% 27% 43% CTG INS HRS IEI Total $751M 1. Corporate services and other related to unallocated cost 12

14 Structured to Deliver Earnings Growth Target Model Features Target: Fiscal 2020 Potential Operating Profit Contribution HRS Revenue Growth Operating Margin Double digit 5-7% ~20% ~20% IEI Double digit 4-6% ~30% ~30% INS CTG Stable 3-4% Better mix 2-3% ~60% CTG INS HRS IEI 13

15 Strong Sustainable Cash Flow Generation Free Cash Flow Conversion 1 Free Cash Flow Yield 2 87% 87% 110% 110% 92% 92% 8% 7.8% 11% 11.4% 10% 10.2% 1 Yr 3 Yr 5 Yr 1 Yr 3 Yr 5 Yr FY15 FY13-15 FY11-15 FY15 FY13-15 FY Free cash flow conversion defined as free cash flow / adjusted net income 2. Free cash flow yield based on average market cap at fiscal year-end 14

16 On Target to Achieve Free Cash Flow Commitment Driven by: Improving earnings Disciplined working capital management Disciplined capital investment 5-Year Target $3 - $4 Billion by FY17 ~$2B Balanced capital allocation goals: Solid capital structure Strategic M&A investments Shareholder return commitment FY13 FY15 FY17E 15

17 Return on Invested Capital Guides our Business Return on Invested Capital 1 (ROIC %) 19% 19.0% 22% 22.1% 24% 23.7% Improving earnings efficiency Disciplined capital deployment Internal target threshold stands at 20% ROIC well above WACC FY13 FY14 FY15 1. Return on Invested Capital (ROIC) is calculated by dividing the Company's last twelve months after-tax Non-GAAP operating income by the net invested capital asset base as of each date. Aftertax non-gaap operating income excludes charges for stock-based compensation expense and restructuring charges. The net invested capital asset base is defined as the sum of shareholders' equity and net debt averaged over the last five quarters. 16

18 capital ALLOCATION

19 Balanced Capital Structure Debt Maturities ($ millions) (Calendar Year) 4.625% Notes $3.1B Total Liquidity Term Loans LIBOR bps 5% Notes $1.5B Revolver $1.6B Cash $593 $500 $500 $ Solid liquidity No near-term maturities Low cost of debt ~3% Strong credit metrics 18

20 Selective M&A Transactions Purchase Price >$100M 1 $25-$100M <$25M 2 4 Key Criteria Target capabilities Strategic customers Longer product lifecycles Barriers to entry Higher margins EPS accretive Primarily focused on investing to expand our HRS capabilities Reflects M&A transactions completed from FY13 to FY15, excludes OEM asset acquisitions 19

21 MCi Acquisition Meets Our Strategic and Financial Objectives Hits our key M&A investment criteria Compelling strategic rationale Solid financial framework Strong growing revenue LTM 200M (USD$216M 1 ), up 20% Positioned across all top 10 OEMs Over 90% of next 2 years of business booked Expand across FLEX business groups Accretive margin profile Well above HRS business margins Immediately accretive to EPS Greater than $0.01 per quarter Solid free cash flow generation Consideration of 457M (USD$494M 1 ) Multiple attractive funding options Will not impact our shareholder return commitment 1. Based on exchange rate of Euro/USD $

22 Unwavering Shareholder Return Commitment Share Repurchase ($ in millions) Repurchased ($ millions) Shares Outstanding % of Free Cash Flow Returned to Shareholders $400 $400 65M shares repurchased 684 $510 $510 82M shares repurchased 639 $322 $322 52M shares repurchased 591 $475 $475 60M shares repurchased 563 $416 $416 39M shares repurchased FY10 FY11 FY12 FY13 FY14 FY15 1 Yr FY15 3 Yr FY Yr FY % In the last 5 Years, we have repurchased ~ $2.1 Billion in stock ~ 297 Million shares ~ 31% of net shares outstanding 75% 75% Committed to returning over 50% of annual free cash flow to shareholders 21

23 shareholder VALUE creation

24 Shareholder Value Creation 1 Evolving our portfolio to provide more predictable earnings and higher margin 2 Committed to 5-10% annual net income growth 3 Strong sustainable free cash flow 4 Committed to return over 50% of annual free cash flow 23