Slide 1: Company Overview
fabrinet % ~~ a < [ U = TRUSTED MANUFACTURING PARTNER OF THE WORLD'S LEADING OEMS Company Overview May 4, 2020
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements other than statements of histori
Slide 3: Company Overview
Company Overview Global leader in advanced precision optical/ electronic/mechanical manufacturing services Fabrinet UK Calne, Wiltshire, UK Focus on high-mix/low-volume mission- VitroCom Mountain Lakes, NJ critical components and modules Fabrinet West Fabrinet AsiaCasix Santa Clara, CA Fuzhou, China
Slide 4: Products We Manufacture
Products We Manufacture Optical Industrial Lasers Automotive Optical Sensing Communications Transceivers Fiber Lasers Autonomous LIDAR Modulators Solid-State Lasers Vehicles 3D Sensing Optical Amplifiers Gas Lasers LED & Laser AR/VR Systems Lighting ROADM Ultrafast Lasers
Slide 5: Efficient Global Manufacturing Footprint
Efficient Global Manufacturing Footprint Scalable Optical & Electro-Mechanical Assembly Customized Optics Quick-turn NPI Services Bangkok, Thailand Fuzhou, China Santa Clara, USA Pinehurst campus Casix Fabrinet West New Jersey, USA Calne, UK Chonburi, Thailand Fabrinet UK Chonburi campus VitroCom 5
Slide 6: Investment Highlights
Investment Highlights Large & Growing Addressable Markets Differentiated Business Model with Significant Barriers to Entry Unique Expertise in Precision Manufacturing Technologies Geared To Next-Generation Products in Diverse Industries Strong Relationships With Industry Leading OEMs Demon
Slide 7: Strong Revenue
Strong Revenue Consolidated revenues US$MM Lasers, sensors and other revenues Optical communications 450.0 426.2 411.2 405.1 399.3 403.1 399.0 400.0 370.5 377.2 345.3 357.3 337.1 332.2 350.0 300.0 250.0 200.0 150.0 100.0 50.0 - Jun'17 Jun'18 Jun '19 Sep'17 Sep'18 Sep'19 Dec'17 Dec'18 Dec'19 Mar'18 M
Slide 8: Consistent Profitability Through the Cycles
Consistent Profitability Through the Cycles Non-GAAP gross margin and non-GAAP operating margin (1) % of Sales 14.0% 12.5% 12.5% 12.1% 11.7% 11.7% 11.2% 12.0% 9.6% 9.1% 9.5% 10.0% 8.4% 8.9% 8.2% 8.0% 6.0% 4.0% 2.0% 0.0% FY2016 FY2017 FY2018 FY2019 3Q19 3Q20 Gross margin Operating margin ROIC (2) (1)
Slide 9: Recent Financial Performance
Recent Financial Performance Key Financials US$MM, except per share figures 3 months ended Q3 revenue of $411.2 MM grew 3% 27-Mar-20 29-Mar-19 year-over-year and was within the Revenue 411.2 399.0 guidance range Y-o-Y change 3% 20% Q3 non-GAAP gross margin of 11.2% decreased from 12.1% in Gross
Slide 10: Balance Sheet Supports Growth
Balance Sheet Supports Growth Selected Items US$MM As of March 27, 2020 Cash, cash equivalents (1) 465.2 Working capital (2) 333.6 Property, plant & equipment, net 218.0 Total debt (3) 54.7 Total shareholders’ equity 933.4 (1) Cash & cash equivalents include marketable securities and restricted cash
Slide 11: Thank You
fabrinet . mm >) —< a TRUSTED MANUFACTURING PARTNER OF THE WORLD'S LEADING OEMS Thank You
Slide 12: Appendix
fabrinet . mm >) —< a TRUSTED MANUFACTURING PARTNER OF THE WORLD'S LEADING OEMS Appendix
Slide 13: Non-GAAP Reconciliation of Gross Margin and Operating Margin
Non-GAAP Reconciliation of Gross Margin and Operating Margin Reconciliation of GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin (in thousands of U.S. dollars) Three Months Ended Twelve Months Ended March 27, December 27, March 29, June 28, June 29, June 30,
Slide 14: Non-GAAP Reconciliation of Net Profit and EPS
Non-GAAP Reconciliation of Net Profit and EPS FQ3'20 FQ2'20 FQ3'19 (in thousands of U.S. dollars, except per share data) March 27,2020 December 27,2019 March 29,2019 GAAP and Non-GAAP EPS-Rolling 4 Quarters Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS GAAP measures 28,267 0.7
Slide 15: Revenue Mix
Revenue Mix F3Q18 F4Q18 F1Q19 F2Q19 F3Q19 F4Q19 F1Q20 F2Q20 F3Q20 Optical 72% 70% 74% 76% 75% 74% 76% 76% 75% Datacom 36% 35% 36% 32% 27% 28% 24% 23% 28% Telecom 64% 65% 64% 68% 73% 72% 76% 77% 72% Non- 28% 30% 26% 24% 25% 26% 24% 24% 25% Optical Optical and non-optical revenue mix presented as % of