Slide 1: Q4-21 and CY2021 Earnings Results
Benchmark Electronics Q4-21 and CY2021 Earnings Results February 3, 2022
Slide 2: Forward-Looking Statements
Forward-Looking 2022 Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does
Slide 3: Q4-21 Overview
Q4-21 Overview Achieved 21% year-over-year revenue growth at $633 million - Strength from Semi-cap, Industrials and Computing sectors Realized Non-GAAP gross margin of 9.8% and Non-GAAP operating margin of 3.8% Grew Non-GAAP earnings 41% year-over-year delivering $0.48 per share Cash conversion cycl
Slide 4: Q4-21 New Business Wins
Q4-21 New Business Wins Medical Diagnostic instrumentation (process design & manufacturing) Cardiovascular systems (design) Cell therapy manufacturing (design & manufacturing) Semi-Cap Wafer handling system (design) Wafer processing tool (design) Aerospace & Defense RF signal processing system (desi
Slide 5: 2021: Delivering on Our Objectives
2021: Delivering on Our Objectives Grew annual revenues 10% (ahead of mid-term model) Fueled by record bookings of over $900 million Achieved >50% engineering attach rate to EMS deals 01 Grow Revenue 03 Grow Earnings Faster Than Revenue 02 Invest in Sustainable Infrastructure and Talent What We Said
Slide 6: Roop Lakkaraju, Chief Financial Officer
Roop Lakkaraju Chief Financial Officer
Slide 7: Fourth Quarter Revenue by Market Sector
Fourth Quarter Revenue by Market Sector Q4-21 Dec. 31, 2021 Revenue by Mix and Market Sector Sept. 30, 2021 Dec. 31, 2020 For the Three Months Ended Dollars in Millions Higher-Value Markets Mix % Revenue Mix % Revenue Q/Q Mix % Revenue Y/Y Medical 20% $127 21% $118 8% 21% $111 14% Semi-Cap 26% $163
Slide 8: Fourth Quarter 2021 Financial Summary
Fourth Quarter 2021 Financial Summary (In millions, except EPS) Dec. 31, 2021 Sept. 30, 2021 Q/Q Dec. 31, 2020 Y/Y Net Sales $633 $572 11% $521 21% GAAP Gross Margin 9.8% 9.4% 40 bps 9.7% 10 bps GAAP SG&A $37.7 $34.4 10% $32.4 16% GAAP Operating Margin 2.9% 2.1% 80 bps 2.3% 60 bps GAAP Diluted EPS $
Slide 9: 2021 Revenue by Market Sector
2021 Revenue by Market Sector CY-21 Revenue by Mix and Market Sector For the Twelve Months Ended Dollars in Millions Dec. 31, 2021 Dec. 31, 2020 Higher-Value Markets Mix % Revenue Mix % Revenue Y/Y Medical 20% $462 24% $498 (7%) Semi-Cap 24% $549 18% $369 49% Aerospace & Defense 17% $382 21% $424 (1
Slide 10: 2021 Financial Summary
2021 Financial Summary (In millions, except EPS) Dec. 31, 2021 Dec. 31, 2020 ‘20 to ‘21 change Y/Y Net Sales $2,255 $2,053 $202 10% GAAP Gross Margin 9.1% 8.5% 60 bps GAAP SG&A $136.7 $122.2 $14.5 12% GAAP Operating Margin 2.4% 1.2% 120 bps GAAP Diluted EPS $0.99 $0.38 $0.61 161% GAAP ROIC 5.4% 2.6%
Slide 11: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Accounts Receivable Days 52 53 49 48 49 51 Contract Asset Days 28 25 26 26 25 22 Inventory Days 66 63 69 75 83 82 Accounts Payable Days (54) (54) (64) (69) (70) (67) Advance Payments from Customers Days (11) (16) (15) (16) (16) (19) Ca
Slide 12: Liquidity and Capital Resources
Liquidity and Capital Resources (1) Free cash flow (FCF) defined as net cash provided by (used in) operations less capex Debt Structure (In millions) Senior Secured Term Loan $131 Revolving Credit Facility Drawn Amount $0 * Leverage ratio is Net debt/LTM adjusted EBITDA, as defined in the credit fac
Slide 13: Capital Allocation Update
Capital Allocation Update Capital Expenditures Share Repurchases Since 2018 invested $184M in additions to property, plant and equipment and software Strategic capital expenditures for future organic growth FY’21: paid $42M in capital expenditures FY’21: repurchased 1.4M shares for $40M Since 2018,
Slide 14: First Quarter 2022 Guidance
First Quarter 2022 Guidance * This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to our supply base, operations or customers. Guidance also assumes no material changes to end market conditions and our operations due to COVID.
Slide 15: 2022 Goals and Initiatives - Jeff Benck, CEO
2022 Goals and Initiatives Jeff Benck - CEO
Slide 16: 2022 Sector Outlook
2022 Sector Outlook Medical CY2021 Revenue Mix CY2022 Revenue Outlook $462M 20% Semi-Cap $549M 24% A&D $382M 17% Industrial $428M 19% Computing $199M 9% Telco $235M 10% Strong demand and ramping new programs Anticipate to be highest growth sector in 2022 CY2022 Sector Revenue Drivers Continued stren
Slide 17: 2022 Expectations to the Mid-Term Target Model
2022 Expectations to the Mid-Term Target Model 2022 Mid-Term Model Mid-Term Model for 2022 set in October of 2020 Steady progress through 2021; Q4-21 results show the potential in the model Annual growth of 10% in 2021 exceeded mid-term model growth rate Full year non-GAAP gross margins expected to
Slide 18: ESG/Sustainability Roadmap
ESG/Sustainability Roadmap October 2020 Formed ESG/Sustainability Council & Org Model February 2021 Mapped to SASB framework March 2021 Released SASB Fact Sheet April 2021 Updated ESG section of Proxy Statement Achieved EcoVadis Silver Medal Recognition July 2021 Mapped to GRI framework August 2021
Slide 19: 2022 Key Strategic Initiatives Update
2022 Key Strategic Initiatives Update 01 Grow Revenue Secure component supply to support growth objectives Increase engineering attach rate goal to >70% bookings Growth in all sectors for the full year 2022 except A&D Targeting high single digit growth in 2022 03 Grow Earnings Faster Than Revenue Im
Slide 20: Appendix
Appendix Benchmark. 20
Slide 21: Appendix 1 - Reconciliation of GAAP to non-GAAP Financial Results
(Amounts in Thousands, Except Per Share Data) – (UNAUDITED) APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results