Slide 1: Fiscal third quarter 2023 highlights
Fiscal third quarter 2023 highlights July 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 an
Slide 3: Fiscal third quarter results
PLEXUS CORP. Fiscal third quarter results Q3F23 Results Q3F23 Guidance Revenue $1.02 billion $1.00 to $1.05 billion GAAP Diluted EPS $0.56(1) $0.28 to $0.46(3) Non-GAAP Diluted EPS $1.32(2) $1.05 to $1.23(4) • Non-GAAP operating margin of 5.0%, including 37 bps of stock-based compensation, was at hi
Slide 4: Fiscal 2022 Highlights
Fiscal 2022 Highlights • Review on Plexus’ Sustainability web page • Manufacturing sites: 11.9% energy intensity reduction • L a u n c h e d 3 rd e m p l o y e e r e s o u r c e g r o u p S U S TA I N A B I L I T Y • Charitable foundation donated $1 million globally • C o m p l e t e d 3 rd p a r t
Slide 5: Fiscal 2023 fourth quarter guidance
PLEXUS CORP. Fiscal 2023 fourth quarter guidance REVENUE GUIDE Q4F23 Guidance • Robust commercial aerospace demand • Ongoing new program ramps Revenue $1.00 billion to $1.04 billion • Incremental weakness in semicap GAAP Diluted EPS $1.18 to $1.36* • Modest softening of some industrial markets • Ong
Slide 6: Performance by market sector
PLEXUS CORP. Performance by market sector Q3F23 Q4F23 Expectations Q3F23 vs. Q2F23 Jul 1, 2023 (percentage points) Industrial $428 42% - 3% Down mid-single Healthcare and Life Sciences $451 44% - 7% Flat Aerospace and Defense $143 14% - 1% Approx. up 10% Total Revenue $1,022 100% - 5% $1,000 to $1,0
Slide 7: Manufacturing wins
PLEXUS CORP. Manufacturing wins TFQ Q3F23 wins: $321M $968M New programs: 30 Trailing Four Quarters (TFQ) Manufacturing Wins $1,200 40% 35% $1,000 30% $800 % of TFQ Sales 25% Goal New Wins $M 25% $600 20% 15% $400 10% $200 5% $0 0% Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 TFQ Wins TFQ Wins %
Slide 8: Manufacturing wins by sector and region
PLEXUS CORP. Manufacturing wins by sector and region A/D $38M EMEA HC/LS $64M $90M Q3F23 APAC Q3F23 $58M AMER $199M IND $193M Sector and Regional Highlights • AMER wins almost $200M, Mexico operations recipient of strategic sourcing decisions • APAC region benefits from robust IND wins • EMEA traili
Slide 9: Fiscal third quarter wins highlights
PLEXUS CORP. Fiscal third quarter wins highlights COMMUNICATION PRODUCTS (IND) DEFIBRILLATORS (HC/LS) • Outsourcing of internal manufacturing • Family of products for new logo • Production location: Guadalajara, Mexico • Production location: Guadalajara, Mexico SEMICAP SUB-ASSEMBLIES (IND) AEROSPACE
Slide 10: Manufacturing funnel
PLEXUS CORP. Manufacturing funnel Funnel of Qualified Manufacturing Opportunities 4,500 4,216 3,979 A/D 4,000 $730M 3,633 Revenue ($ millions) 3,500 3,371 3,361 3,389 3,316 3,325 Q3F23 HC/LS IND 3,000 $2,305M $944M 2,500 2,000 Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 Qualified manufacturing f
Slide 11: Operating performance
PLEXUS CORP. Operating performance Q3F23 Non-GAAP Operating Margin: 5.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 Operational agility enabled non-GAAP operating margin of 5.0% 11
Slide 12: Income statement
PLEXUS CORP. Income statement Q3F23 Comments Revenue $1.02 billion Midpoint of guidance range of $1.00 to $1.05 billion Gross margin 9.2% Within guidance range of 8.9% to 9.3% Selling & administrative expenses $42.3 million Favorable to guidance range of $43.5 to $44.5 million At high-end of guidanc
Slide 13: Cash flow and balance sheet
PLEXUS CORP. Cash flow and balance sheet Q3F23 Comments Cash from operations: $18.8 million Free cash flow* ($11.5) million Capital expenditures: $30.3 million Share repurchases $13.5 million Approximately 150,000 shares Cash balance $254 million Sequentially lower by $17 million Total debt $492 mil
Slide 14: Working capital trends
PLEXUS CORP. Working capital trends 180 160 140 120 100 Days 80 60 40 20 - Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 Net Cash Cycle Days Inventory Days Contract Asset Days A/R Days A/P Days Customer Deposit Days Q4F21 Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Q2F23 Q3F23 Inventory Days 116 145 154 160 144
Slide 15: Fiscal fourth quarter 2023 guidance
PLEXUS CORP. Fiscal fourth quarter 2023 guidance Guidance Revenue $1.00 billion to $1.04 billion GAAP diluted EPS $1.18 to $1.36 Gross margin 8.9% to 9.3% Selling & administrative expenses $42.0 to $43.0 million GAAP operating margin 4.7% to 5.2% Depreciation and amortization Approximately $19 milli
Slide 16: Q&A Thank you.
Q&A Thank you. PLEXUS | ————