Slide 1: Fiscal second quarter 2023 financial results
Fiscal second quarter 2023 financial results April 27, 2023
Slide 2: Safe harbor and fair disclosure statement
PLEXUS CORP. Safe harbor and fair disclosure statement Some of the statements made and information provided during our call as well as information included in the supporting materials will be forward looking statements, including, without limitation, those regarding revenue, gross margin, selling &
Slide 3: Fiscal second quarter results
PLEXUS CORP. Fiscal second quarter results Q2F23 Results Q2F23 Guidance Q1F23 Results Revenue $1.07 billion $1.02 to $1.07 billion $1.09 billion GAAP Diluted EPS $1.45(1) $1.06 to $1.24(1) $1.49(1) • Revenue, GAAP operating margin, GAAP EPS and free cash flow exceeded projections • Revenue growth of
Slide 4: PLEXUS CORP.
PLEXUS CORP.
Slide 5: Fiscal 2023 third quarter guidance
PLEXUS CORP. Fiscal 2023 third quarter guidance REVENUE GUIDE Q3F23 Guidance • Accelerated Q2 shipments to meet customer demand • Supply chain challenges Revenue $1.00 billion to $1.05 billion • Incremental weakness in SemiCap demand GAAP Diluted EPS $0.76 to $0.94* • Over $100M of unfulfilled custo
Slide 6: Performance by market sector
PLEXUS CORP. Performance by market sector Q2F23 Q1F23 Q3F23 Expectations Q2F23 vs. Q1F23 Apr 1, 2023 Dec 31, 2022 (percentage points) Industrial $439 41% $472 43% - 7% Down mid single Healthcare and Life Sciences $488 46% $488 45% Flat Down mid single Aerospace and Defense $144 13% $134 12% + 8% Dow
Slide 7: Manufacturing wins
PLEXUS CORP. Manufacturing wins Q2F23 wins: $275M New programs: 31 TFQ $847M Trailing Four Quarters (TFQ) Manufacturing Wins $1,200 40% 35% $1,000 30% $800 % of TFQ Sales 25% New Wins $M $600 20% Goal 15% 25% $400 10% $200 5% $0 0% Q3F22 Q4F22 Q1F23 Q2F23 TFQ Wins TFQ Wins % of TFQ Sales 7
Slide 8: Manufacturing wins by sector and region
PLEXUS CORP. Manufacturing wins by sector and region A/D $52M HC/LS EMEA $81M $72M AMER Q2F23 Q2F23 $132M APAC IND $71M $142M Sector and Regional Highlights • IND and A/D wins benefit AMER region • HC/LS wins support APAC region • EMEA trailing four quarters of wins approaches $300M 8
Slide 9: Fiscal second quarter wins highlights
PLEXUS CORP. Fiscal second quarter wins highlights AUTONOMOUS ROBOT (IND) ROBOTIC SURGICAL (HC/LS) • New logo desired higher service level • Artificial Intelligence (AI) platform • Production location: Guadalajara, Mexico • Production location: Kelso, Scotland VEHICLE ELECTRIFICATION (IND) SECURITY
Slide 10: Manufacturing funnel
PLEXUS CORP. Manufacturing funnel Funnel of Qualified Manufacturing Opportunities 4,500 4,216 A/D 4,000 $702M Revenue ($ millions) 3,633 3,371 3,361 3,389 3,500 3,316 3,325 3,109 Q2F23 HC/LS 3,000 IND $2,360M $1,154M 2,500 2,000 Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Qualified manufacturing
Slide 11: Operating performance
PLEXUS CONFIDENTIAL Operating performance Q2F23 GAAP Operating Margin: 5.3% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Operational versatility enables GAAP operating margin of 5.3% 11
Slide 12: Income statement
PLEXUS CORP. Income statement Q2F23 Comments Revenue $1.07 billion At the top end of guidance range of $1.02 to $1.07 billion Gross margin 9.6% Above guidance range of 8.8% to 9.2% Selling & administrative expenses $46.1 million Above guidance range of $44.5 to $45.5 million GAAP operating margin 5.
Slide 13: Cash flow and balance sheet
PLEXUS CORP. Cash flow and balance sheet Q2F23 Comments Cash from operations: $106.0 million Free cash flow $79.6 million Capital expenditures: $26.4 million Share repurchases $12.4 million Approximately 126,000 shares Cash balance $270 million Sequentially higher by $22 million Total debt $483 mill
Slide 14: Working capital trends
PLEXUS CORP. Working capital trends 180 160 140 120 100 Days 80 60 40 20 - Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Net Cash Cycle Days Inventory Days Contract Asset Days A/R Days A/P Days Customer Deposit Days Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Inventory Days 108 116 145 154 160
Slide 15: Fiscal third quarter 2023 guidance
PLEXUS CORP. Fiscal third quarter 2023 guidance Guidance Revenue $1.00 billion to $1.05 billion GAAP diluted EPS $0.76 to $0.94 Non-GAAP diluted EPS $1.05 to $1.23 Gross margin 8.9% to 9.3% Selling & administrative expenses $43.5 to $44.5 million Restructuring charges $9 million GAAP operating margi
Slide 16: Q&A Thank you.
Q&A Thank you. PLEXUS | ————