Flex (FLEX) UBS Global Technology and AI Conference summary

Geopolitical and macro environment

• Tariffs and macro uncertainty are managed as pass-through costs, with scenario analysis and mitigation strategies in place for customers.

• Regionalization and supply chain resilience have been key trends, with a focus on moving manufacturing closer to demand.

• The company leverages its global scale and flexible footprint to adapt to shifting geopolitical and economic conditions.

Data center and AI market trends

• Data center and AI markets are expected to grow 20-30% annually, driven by cloud migration and AI adoption.

• The business is expanding market share in these sectors, focusing on solving power, heat, and scale challenges.

• Recent acquisitions have strengthened power and thermal management capabilities, including liquid cooling technology.

• Integrated solutions across power, cooling, and rack integration differentiate the company in the market.

Business transformation and margin expansion

• Transition from a pure EMS model to a mix of EMS, products, and services has driven margin improvement.

• Agility segment margins have risen from 2% to over 6%, with a sustainable target above 5%.

• Margin drivers include high-value product mix, value-add services, and productivity gains from automation and AI.

• Product and services businesses operate at higher margins than traditional EMS.