Benchmark Electronics, Inc. · NYSE:BHE

Benchmark Electronics — NYSE Healthcare & Technology Virtual Investor Conference (June 2023)

15 slides from Benchmark Electronics's conference presentation, Jun 22, 2023

  1. Slide 1: Benchmark Electronics Investor Presentation

    Benchmark Benchmark Electronics Investor Presentation June, 2023 | 1

  2. Slide 2: Forward-Looking Statements and Non-GAAP Financial Information

    Forward-Looking 2023 Statements Non-GAAP Financial Information This document contains forward-looking statements within the meaning of Section 27A of the Management discloses non‐GAAP information to provide investors with additional information to Securities Act of 1933, as amended and Section 21E o

  3. Slide 3: Benchmark By the Numbers

    Benchmark By the Numbers 2.9 billion * 2022 Sector Growth * $ 39% growth in Complex Industrial 2022 FY revenue 28% growth in Medical 31% growth * Including supply chain premium in Semi-Cap 21 Global Manufacturing 13,500+ Experts in complex products and adept at managing challenging regulatory enviro

  4. Slide 4: Sector Engagement

    Sector Engagement Participation Select Customers  Front-end Wafer Fabrication Equipment Semi-Cap  Material Handling and Control Systems  Fluid Management  Radiological and Optical Imaging Medical  Medical Robotics  Connected & Diagnostic Devices  Automation & Robotics Industrials   Control,

  5. Slide 5: Fiscal Year 2022 Financial Summary

    Fiscal Year 2022 Financial Summary (Dollars in millions, except ‘21 to ‘22 Dec. 31, 2022 Dec. 31, 2021 Y/Y EPS) change Net Sales $2,886 $2,255 $631 28% GAAP Gross Margin 8.8% 9.1% (30) bps GAAP SG&A $150.2 $136.7 $13.5 10% GAAP Operating Margin 3.1% 2.4% 70 bps GAAP Diluted EPS $1.91 $0.99 $0.92 93%

  6. Slide 6: Liquidity and Capital Resources

    Liquidity and Capital Resources For the Three Months Ended • Expanded revolver by $100M on Mar 31, Dec 31, Mar 31, existing terms (total $550M) Cash (In millions) 2023 2022 2022 • Cash Flow from Operations Cash Flows from (used in) Operations ($25) ($53) ($68) primarily impacted by inventory FCF (1)

  7. Slide 7: Second Quarter and FY 2023 Guidance

    Second Quarter and FY 2023 Guidance Q2-2023 Net Sales* $670 - $710 million Diluted EPS – GAAP $0.35 - $0.41 FY 2023 Diluted EPS – non-GAAP $0.43 - $0.49 Net Sales Growth * 7 – 9% Operating Margin – non-GAAP 3.9% - 4.1% Diluted EPS – GAAP $1.96 - $2.06 Other Expenses, Net $7 million Diluted EPS – non

  8. Slide 8: Sector Outlook

    Sector Outlook* Q2-23 FY2023 Sector Commentary Q/Q Y/Y • Strong demand in existing programs and new ramps in progress Medical • Improving supply chain • New wins start to ramp in 2H-23 Semi-Cap • Currently anticipate sequentially flat to up through rest of the year • Commercial aero strength and imp

  9. Slide 9: FY2022-2025 non-GAAP Financial Model

    FY2022-2025 non-GAAP Financial Model Revenue Growth Operating Margin Earnings Growth ~10% CAGR * 5.0%* to 5.5% * Growth Rate 2X Revenue Growth Rate 5.0%- 5.5% >$3.3B >$3.50 >$3.30 $2.6B 4.0% $2.11 $2.09 FY22 FY25E FY22 FY25E FY22E FY25E Mix shift to increase higher value business FY22 FY25E Operatio

  10. Slide 10: Long-Term Financial Model

    Long-Term Financial Model Capital Allocation Priorities Return on Capital Invested Other Model Inputs Free Cash Flow (FCF) $70M to $80M/Year 14%* to 15%* FY25E Targets 2025E estimated to be 400 bps above WACC Capital Spending 1.6% to 1.8% 1) Paydown revolver 14% -15% Inventory Turns 5.0-5.5x 2) Recu

  11. Slide 11: Appendix

    Appendix Benchmark 1 Copyright © 2023 by original author Benchmark Electronics, Inc. Not to be reproduced, distributed, or used in any means without written permission by Benchmark.

  12. Slide 12: Non-GAAP Financial Summary Excluding Supply Chain Premiums

    Non-GAAP Financial Summary Excluding Supply Chain Premiums (Dollars in millions, except EPS) See APPENDIX 1 and APPENDIX 2 for reconciliations of GAAP to non-GAAP Financial Results | 12

  13. Slide 13: Reconciliation of GAAP to non-GAAP Financial Results

    APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results (Dollars in Thousands, Except Per Share Data) – (UNAUDITED) Three Months Ended Year Ended Dec 31, Sept 30, June 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 2022 2022 2022 2022 2021 2021 2021 2021 2022 2021 Income from operatio

  14. Slide 14: Reconciliation of Supply Chain Premiums

    APPENDIX 2 - Reconciliation of Supply Chain Premiums (Dollars in Millions) – (UNAUDITED) Three Months Ended Year Ended Dec 31, Sept 30, June 30, Mar 31, Dec 31, Sept 30, June 30, Mar 31, Dec 31, 2022 2022 2022 2022 2021 2021 2021 2021 2022 2021 Sales (GAAP) $ 751 $ 772 $ 728 $ 636 $ 633 $ 572 $ 545

  15. Slide 15: Reconciliation of Supply Chain Premiums by Sector

    APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector (Dollars in Millions) – (UNAUDITED) Three Months Ended Mar 31, Dec 31, Mar 31, Sales (GAAP) 2023 2022 2022 Medical $ 137 $ 144 $ 117 Semi-Cap 149 178 183 A&D 79 90 82 Industrials 144 143 137 Advanced Computing 96 92 55 Next Gen Comms 90

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