Slide 1: Strategic Update November 12, 2015
design develop deliver advanced technology Strategic Update November 12, 2015
Slide 2: Forward-Looking Statements
design develop deliver advanced technology 1 Forward - Looking Statements This document contains forward - looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “expect,” “estimate,” “anticipate,” “predict” and similar expressions, and t
Slide 3: Benchmark: Leading global integrated EMS player
design develop deliver advanced technology 2 Founded : 1986 Stock Symbol: NYSE: BHE Employees: 11,000 Locations: 20 facilities 7 countries Sales Mix: 48% United States 52% International Headquarters: Angleton, TX USA Benchmark: Leading global integrated EMS player Who We Are ► G lobal provider of en
Slide 4: Benchmark: Leading with Engineering Solutions
design develop deliver advanced technology 3 Traditional markets Higher value markets ► Strong Foundation & Diversification ▪ Complex Design and Manufacturing Solutions ▪ Leading Positions in Higher Value Markets ▪ Balanced Global Footprint ▪ Longstanding Customer Relationships ▪ Healthy High - Perf
Slide 5: Strong Track Record and Proven Execution
design develop deliver advanced technology 4 $2.6 LTM 9/30/15 6.3% 8.9% 9.6% 10.1% 2011 2012 2013 2014 $2.3 $2.5 $2.5 $2.8 2011 2012 2013 2014 Revenue ($bn) Strong Track Record and Proven Execution Return on Invested Capital 2011 – Present ► +7% Annual Revenue Growth ► +380bps Annual ROIC improvemen
Slide 6: Strategic Focus Areas
design develop deliver advanced technology 5 Strategic Focus Areas Portfolio Management Advancing Our Long - Term Strategy >10% Annual Growth in Higher Value Markets ▪ Focus on expansion in Key End Markets • Industrials (including aerospace & defense) • Medical Technologies • Test & Instrumentation
Slide 7: Committed to enhancing shareholder value
design develop deliver advanced technology 6 `` Committed to enhancing shareholder value 1. #1 strategic priority: continue shift to higher value business with engineering - led solutions 2. Benchmark is best positioned to capitalize on this opportunity and has managed this transition most effective
Slide 8: Outsourcing in higher value markets expected to grow >10% CAGR through 2017
design develop deliver advanced technology 7 Medical Aero/Defense Industrials Outsourcing in higher value markets is expected to grow >10% CAGR through 2017 $62 $65 23% 17% 22% ► Higher value markets provide stable growth well in excess of traditional markets ► Significantly underpenetrated markets
Slide 9: Shift to higher value mix has driven superior performance
design develop deliver advanced technology 8 Shift to higher value mix has driven superior performance Benchmark Peer median Current higher value mix Top 10 customer concentration change 1. TSR 2. Revenue CAGR % 3. Gross margin change 4. Operating margin change 5. FCF margin change 6. Cash conversio
Slide 10: Evolving our portfolio & managing traditional risk
design develop deliver advanced technology 9 Evolving our portfolio & managing traditional risk 32% 68% 2007 LTM 9/30/2015 Target mix 53% 47% 2 70% 30% $1.2bn $1.4bn $2.0bn $0.9bn Revenue $2.9bn Revenue $ 2.6bn Resulting mix = significant upside potential Source: Company filings Revenue >$3.0bn ▪ Fu
Slide 11: Significant progress in higher value markets
design develop deliver advanced technology 10 Significant progress in higher value markets $1.4bn Q3 - 15 New business wins Q4 - 15 Outlook Industrials ► Up high single digits Medical ► Up high single digits Test & Instrumentation ► Down mid double digits ► Significant new business wins in higher va
Slide 12: Successful M&A track record supports our strategy
design develop deliver advanced technology 11 2013 ► Aerospace, semi - cap, industrials, instrumentation, medical and communications 2013 ► Industrials, including aerospace and defense, medical and communications 2015 ► Industrials, including aerospace and defense Successful M&A track record support
Slide 13: Secure Technology acquisition = significant growth potential
design develop deliver advanced technology 12 Key business h ighlights ► LTM Revenue of ~$ 100mm, annual growth >10 % since 2012 ► Sustainable IP protects unique business model and market position ► Diverse portfolio of well - positioned programs and platforms Snapshot ► Encrypted and ruggedized com
Slide 14: Balanced capital deployment track record
design develop deliver advanced technology 13 Capex 29% M&A 41% Repurchases 30% Cumulative capital allocation FY11 – YTD 9/30/15 Balanced capital deployment track record Disciplined, shareholder - friendly and balanced approach to capital allocation ► Continue investing to drive growth and extend bu
Slide 15: Continuous working capital improvement
design develop deliver advanced technology 14 94 91 78 74 37 44 2011 LTM 9/30/15 2011 LTM 9/30/15 2011 LTM 9/30/15 Cash conversion cycle BHE Peers High mix peer Continuous working capital improvement 5 Note: Peers include Celestica, Flextronics, Jabil, Plexus, and Sanmina ► CCC is driven by end mark
Slide 16: Increase current and long-term shareholder value
design develop deliver advanced technology 15 Increase current and long - term shareholder value Consistently deliver on strategy to drive shareholder value Portfolio Management >10% Annual Growth in Higher Value Markets ▪ Focus on Expansion in Key End Markets • Industrials (including aerospace & de
Slide 17: Questions?
design develop deliver advanced technology 16 Questions ?
Slide 18: Appendix
design develop deliver advanced technology 17 Appendix
Slide 19: GAAP to Non-GAAP reconciliations
design develop deliver advanced technology 18 GAAP to Non - GAAP reconciliations 18 (In millions) 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015 Income from operations (GAAP) $ 90.3 ($ 166.5) $ 52.3 $88.4 $ 41.3 $ 75.6 $116.5 $ 100.1 $ 99.7 Goodwill impairment - 247.5 - - - - - - - Restructuring c