Slide 1: Benchmark Electronics
> Benchmark ball electronics
Slide 2: Forward-Looking Statements
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 the negatives thereof, often identify forward-look
Slide 3: Benchmark to Acquire Secure Technology
Benchmark to Acquire Secure Technology SECURE TECHNOLOGY COMPANY Secure Technology is a leading national industrial, aerospace, and defense company, with specialization in rugged, mission-critical communications and connectivity solutions. + Encrypted Communication Systems + LIM Revenue of ~$100M, a
Slide 4: Secure Meets our Acquisition Objectives
Secure Meets our Acquisition Objectives > Benchmark SECURE lecrones ese.sr oat Acquisition Focus | Characteristics + World-class technology and engineering expertise further enhance our capabilities + Alignment to Benchmark growth segments in industrial, Strategic aerospace and defense markets + Lon
Slide 5: Third Quarter 2015 Highlights
Third Quarter 2015 Highlights = Non-GAAP operating margin at 4.3% - a 30 basis point year-over-year and -a 10 basis point quarter-over-year improvement = Generated non-GAAP EPS of $0.41 = Strong operating cash flow of $78 million = Returned $18 million to shareholders through share repurchases = Ann
Slide 6: Portfolio Trends — Expanding Solutions
Portfolio Trends — Expanding Solutions Revenue Mix’ Growth Rates’ Long-Term Drivers 7 CAGR Firs Nine Months Ended Engineering-led solutions Greater outsourcing High mix/lower volume skills Longer product life cycles Value add + Manufacturing solutions oa = Fully outsourced 5% decline = Mid miximid v
Slide 7: Third Quarter 2015 New Business Wins
Third Quarter 2015 New Business Wins Q3 2015 Number of New Quarterly Estimated Annual Revenue Business Wins by Segment Run Rate for New Business Wins 160 120 80 40 o roa 3 ala aQl41als_2ais 3s ms (usDM) Traditional Markets Higher Growth Markets = Q3 2015: 37 new business bookings, including 16 engin
Slide 8: Third Quarter 2015 Financial Summary
Third Quarter 2015 Financial Summary For the Three Months Ended PETE Jun30,2015 sept s0,2014 Net Sales $630.2 $664.0 $731.3 Net Income — GAAP $20.6 $21.2 $16.9 Net Income — non-GAAP $21.2 $22.0 $23.2 Diluted EPS —- GAAP $0.40 $0.40 $0.31 Diluted EPS — non-GAAP $0.41 $0.42 $0.43 Operating Margin - GA
Slide 9: Trending Operating Income
Trending Operating Income Non-GAAP Operating Income ($in millions) =t% Revenue 42% am 35% 28% 23% 14% om 00% Mara3 Jund3 Sep-13 Dee-13 Martd Jumtd Sep Dec-14 MartS junds Sepas = Continued improvement in operating income percentage = Results from portfolio diversification and operational excellence i
Slide 10: Financial Statement Highlights
Financial Statement Highlights Balance Sheet and Cash Flows (in milions) [RS ax.PLaE Cash $462.1" $409.3" $420.2 Cash Flows from Operating Activities $78.2 $52.0 $28.2 Capital Expenditures $7.9 $8.2 $6.3 Depreciation & Amortization $12.0 $12.3 $11.8 Accounts Receivable $467.2 $500.7 $534.0 Days Sale
Slide 11: Working Capital Update
Working Capital Update EE (s<>+ 30, 2015 Accounts Receivable Days 67 68 Accounts Payable Days 42 42 Inventory Days 66 66 Cash Conversion Cycle Days 90 1 = Cash Conversion Cycle improved by one day — less than forecasted four-day improvement due to lower sales = Initiatives for working capital improv
Slide 12: Fourth Quarter 2015 Guidance
Fourth Quarter 2015 Guidance Net Sales (in millions) $620—-$640 Operating Margin — non-GAAP 43%-4.7% Effective Tax Rate ~22% Diluted EPS — non-GAAP. $0.39-$0.43 = Outlook is for the fourth quarter ending December 31, 2015.
Slide 13: Benchmark Market Overview
Benchmark Market Overview Industrial Controls 30% $201 31% $198 Up High Single Digits Medical 14% $90 | 14% $87 | Up High Single Digits Test & Instrumentation 9% $59 9% $58 | Down Mid Double Digits Total Revenue $350 $343 Traditional Markets June 30,2015 Sept 30, 2015 eine (%) Telecommunications 27%
Slide 14: Summary
Summary = Key Strategic Initiatives: o Portfolio Diversification o Leanand Operational Excellence o Working Capital Management = Secure Technology Acquisition: o Engineered products and solutions o Mission critical, highly regulated markets o Margin enhancing = Margin Expansion on track towards 4.5%
Slide 15: Reconciliation of GAAP to non-GAAP Financial Results
Reconciliation of GAAP to non-GAAP Financial Results (Amounts in Thousands, Except Per Share Data) - (UNAUDITED) ‘Three Months Ended Nine Months Ended Sep 30, Jun30, Sep30, September 30, wis 20152202014 Income from operations (GAAP) $26,148 $26,208 $21,915 $71,064 $71,491 Restructuring charges and i