Slide 1: Fiscal third quarter 2022 financial results
Fiscal third quarter 2022 financial results July 28, 2022
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: $5B revenue and 5.5% operating margin by F25
PLEXUS CORP. $5B REVENUE 5 and 5.5% by F25! $5,000 5.5% $4,000 OPERATING MARGIN $3,000 $2,000 F25 $1,000 $0 FISCAL YEAR F18 F19 F20 F21 F22* F23 F24 F25 *F22 includes midpoint of Q4F22 guidance 3
Slide 4: Fiscal third quarter results
PLEXUS CORP. Fiscal third quarter results Q3F22 Results Q3F22 Guidance Q2F22 Results Revenue ($ millions) $981 $885 to $925 $889 GAAP Diluted EPS $1.33(1) $1.02 to $1.18(1) $0.95(1) • Revenue, GAAP operating margin and GAAP EPS exceeded expectations • Revenue growth of 21% year-over-year • All secto
Slide 5: Fiscal 2022 fourth quarter guidance
PLEXUS CORP. Fiscal 2022 fourth quarter guidance REVENUE GUIDE Q4F22 Guidance • Unfilled backlog remains significant • Successful new program ramps Revenue $980 million to $1.020 billion • Demand outpacing supply GAAP Diluted EPS $1.19 to $1.35* EPS GUIDE • GAAP operating margin of 4.7% to 5.2% • Fo
Slide 6: Performance by market sector
PLEXUS CORP. Performance by market sector Q3F22 Q2F22 Q4F22 Expectations Q3F22 vs. Q2F22 Jul 2, 2022 Apr 2, 2022 (percentage points) Industrial $454 46% $415 47% + 10% Up low single Healthcare and Life Sciences $401 41% $353 40% + 13% Up mid single Aerospace and Defense $126 13% $121 13% + 4% Down l
Slide 7: Manufacturing wins
PLEXUS CORP. Manufacturing wins Q3F22 wins: $201M New programs: 47 TFQ $1.04B Trailing Four Quarters (TFQ) Manufacturing Wins $1,200 45% 40% $1,100 % of TFQ Sales New Wins $M 35% $1,000 30% $900 Goal 25% 25% $800 20% Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 TFQ Wins TFQ Wins % of TFQ Sales 7
Slide 8: Manufacturing wins by region and sector
PLEXUS CORP. Manufacturing wins by region and sector A/D EMEA $30M $53M HC/LS $86M Q3F22 AMER Q3F22 $108M APAC IND $40M $85M Regional and Sector Highlights • IND and HC/LS generated solid wins • All sectors contributed to strong AMER result • EMEA wins include strategic opportunities from customers
Slide 9: Fiscal third quarter wins highlights
PLEXUS CORP. Fiscal third quarter wins highlights POWER INVERTER (IND) NEXT GENERATION ULTRASOUND (HC/LS) • Electrification of heavy equipment • Supports women’s health • Production location: Appleton, Wisconsin • Production location: Oradea, Romania SEMICONDUCTOR CAPITAL EQUIPMENT (IND) COMMERCIAL
Slide 10: Manufacturing funnel
PLEXUS CORP. Manufacturing funnel Funnel of Qualified Manufacturing Opportunities 4,000 A/D $539M 3,500 3,371 3,325 3,361 Revenue ($ millions) 3,289 3,316 3,109 3,037 3,000 IND Q3F22 2,715 $777M HC/LS $2,045M 2,500 2,000 Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Qualified manufacturing funnel
Slide 11: Operating performance
PLEXUS CORP. Operating performance Q3F22 GAAP Operating Margin: 5.1% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Q4F22* Achieved Q3F22 GAAP operating margin >5% as revenue approached $1B *Represents midpoint of guidance 11
Slide 12: Income statement
PLEXUS CORP. Income statement Q3F22 Comments Revenue $981 million Above guidance range of $885 to $925 million Gross margin 9.5% Above guidance range of 8.9% to 9.3% Selling & administrative expenses $44.1 million Above guidance range of $40.0 to $41.0 million GAAP operating margin 5.1% Above guidan
Slide 13: Cash flow and balance sheet
PLEXUS CORP. Cash flow and balance sheet Q3F22 Comments Cash used in operations: $21 million Free cash flow ($42) million Capital expenditures: $21 million Share repurchases $12 million Approx. 149,000 shares at an average price of $79.27 per share Cash balance $278 million Sequentially lower by $31
Slide 14: Working capital trends
PLEXUS CORP. Working capital trends 200 180 160 140 120 Days 100 80 60 40 20 - Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Net Cash Cycle Days Inventory Days Contract Asset Days A/R Days A/P Days Customer Deposit Days Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Q3F22 Inventory Days 85 93 89 108 11
Slide 15: Fiscal fourth quarter 2022 guidance
PLEXUS CORP. Fiscal fourth quarter 2022 guidance Guidance Revenue $980 million to $1.02 billion GAAP diluted EPS $1.19 to $1.35 Gross margin 9.0% to 9.4% Selling & administrative expenses $42.5 to $43.5 million GAAP operating margin 4.7% to 5.2% Depreciation and amortization Approximately $17 millio
Slide 16: Q&A Thank you.
Q&A Thank you. PLEXUS | ————