Slide 1: Benchmark Electronics
Benchmark Benchmark Electronics Sidoti Virtual Conference March 23, 2023 | 1
Slide 2: Forward-Looking Statements / Non-GAAP Financial Information
Forward-Looking 2023 Statements Non-GAAP Financial Information This document contains forward-looking statements within the meaning of Section 27A of the Management discloses non‐GAAP information to provide investors with additional information to Securities Act of 1933, as amended and Section 21E o
Slide 3: Benchmark By the Numbers
Benchmark By the Numbers Sector Growth * $ 2.9 billion * 2022 FY revenue 28% growth 39% growth in Complex Industrial in Medical 31% growth * Including supply chain premium in Semi-Cap 21 Global Manufacturing 13,500+ Our Mission: Be our customers’ trusted partner; providing Team Members Worldwide Loc
Slide 4: Global Services Locations
Global Services Locations Product Design & Engineering Centers United States Europe Electronics 1. Concord, CA Manufacturing 1. Almelo, The Netherlands 2. Fremont, CA 2. Brasov, Romania Precision Technologies 3. Santa Ana, CA Manufacturing 4. Phoenix, AZ Centers of Excellence 5. Tempe, AZ (2) 6. Mes
Slide 5: Benchmark Strategy – When it Matters
Benchmark Strategy – When it Matters Deliver Our Vision Operational Excellence Solve unique high complexity Deliver best-in-class customer challenges experience Provide end-to-end product Apply lean principles everywhere realization services Unlock cash generation with inventory Partner
Slide 6: Growth Drivers
Growth Drivers > Benchmark | 6 Copyright © 2023 by original author Benchmark Electronics, Inc. Not to be reproduced, distributed, or used in any means without written permission by Benchmark.
Slide 7: EMS Market Summary
EMS Market Summary 2021 EMS Market Size Next-generation Outsourcing $544B Opportunities 2021–2026 EMS Medical < 50% Revenue CAGR Targeted Complex Markets A&D < 25% ~$100B 6.8% Industrials* < 30% Market Growth Supported by Increasing Outsourcing Opportunities Source: New Venture Research Corp r
Slide 8: Our Sector Focus
Our Sector Focus Pursuing the right business in high-growth, complex sectors Medical Aerospace and Defense Industrials Semi-Cap Advanced Computing Next Gen Communications | 8
Slide 9: Sector Engagement
Sector Engagement Participation Select Customers Front-end Wafer Fabrication Equipment Semi-Cap Material Handling and Control Systems Fluid Management Radiological and Optical Imaging Medical Medical Robotics Connected & Diagnostic Devices Automation & Robotics Control, Measurement &
Slide 10: Sector Evolution
Sector Evolution FY12 10% 5% 27% 25% 32% Medical Semi-Cap Industrials Telco Computing FY22 19% HC/LS 27% 18% I/C 13% 11% A/D 12% N/C 21% 30% 17% 14% Medical Semi-Cap Industrials A&D Telco Computing Excluding supply chain premium Highly complex products and demanding regulatory environments | 10
Slide 11: Sector Year-Over-Year Outlook
Sector Year-Over-Year Outlook* Fiscal Year 2022 Results ($MM) Outlook * Supply chain Revenue Revenue growth Total Revenue premiums adjusted for adjusted for Q1:23 FY2023 Sector Commentary (SCP) SCP * SCP* • Memory weakness and trade restrictions are impacting current demand and visibility Semi-Cap $
Slide 12: Invest for Sustainability
Invest for Sustainability | 12
Slide 13: Focused Investment Discipline
Focused Investment Discipline Investment Priorities Regulatory & Compliance Strategic Growth Capital Expenditures ($000) Capex% of revenue excluding supply chain premium 1.8% 1.9% 1.9% 1.5% Margin Accretive Capability $46,774 $39,519 $42,177 $35,118 Leading Edge Process Technologies FY 19 FY 20 FY 2
Slide 14: Sustainability is Core to Our Strategy
Sustainability is Core to Our Strategy Environmental Social Governance Second annual sustainability report Benchmark is an inclusive Independent Board operates published Feb. 2023 organization under a contemporary set of Set GHG intensity targets • 54% of our workforce are women published Co
Slide 15: Financial Model Discipline
Financial Model Discipline | 15
Slide 16: Delivering on Our Commitments
Delivering on Our Commitments ($Millions, except per share data) Revenue Growth Non-GAAP Operating Income Earnings Growth Mid-Term Model 5% Growth 3.4%* to 3.8%(1) Growth Rate > Revenue Growth FY22 4.0% (1, 2) 120% non-GAAP EPS Growth 28% Growth (2) 4.0% 28% 120% $2,618 3.2% $104 $2.09 $2,053 $2,175
Slide 17: Capital Allocation Trends
Capital Allocation Trends $105 $88 $40 $79 $25 $9 ($ Millions) $42 $47 $40 $23 $23 $23 FY20 FY21 FY22 Cash Dividend Capex Share Repurchase | 17
Slide 18: Driving Return on Invested Capital
Driving Return on Invested Capital * 9.9% 8.6% 6.2% FY20 FY21 FY22 * Non-GAAP ROIC = (Non-GAAP TTM income from operations + Stock-based compensation – Non-GAAP Tax Impact) ÷ [Average Invested Capital for last 5 quarters} | 18
Slide 19: Q1 Guidance and 2025 Target Model
Q1 Guidance and 2025 Target Model Q1 23 11-17% 3.6-3.8% $0.39-$0.45 Guidance Revenue Growth (1) Non-GAAP Operating Margin (2) Non-GAAP EPS 2025 8-12% 5.0-5.5% >$3.30 14-15% >$200M Target Model Compounded Annual Revenue Growth (2) Non-GAAP Non-GAAP Non-GAAP Cumulative 2023-2025 Operating Margin (2) E
Slide 20: Compelling Investment Opportunity
Compelling Investment Opportunity Macro & secular Unique capabilities Operational Strong, profitable growth growth drivers positioned to win excellence & margin expansion Strategic roadmap to Advanced global manufacturing, Transformed portfolio and Confidence in our ability to address multiple, supp
Slide 21: Benchmark, the partner you choose When it matters.
Benchmark, the partner you choose When it matters. | 21
Slide 22: APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results
APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED) Year Ended Dec 31, 2022 2021 2020 Income from operations (GAAP) $ 90,069 $ 53,062 $ 25,134 Amortization of intangible assets 6,384 6,384 9,099 Restructuring charges and other
Slide 23: APPENDIX 2 - Reconciliation of Supply Chain Premiums
APPENDIX 2 - Reconciliation of Supply Chain Premiums (Amounts in Millions) – (UNAUDITED) Yea r Ended Dec 31, 2022 2021 2020 Sa l es (GAAP) $ 2,886 $ 2,255 $ 2,053 Adjus tment for s uppl y cha i n premi ums (268) (80) - Non-GAAP s a l es a djus ted for s uppl y cha i n premi ums $ 2,618 $ 2,175 $ 2,0
Slide 24: APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector
APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector (Dollars in Millions) – (UNAUDITED) Year Ended Dec 31, Dec 31, Sales (GAAP) 2022 2021 Medical $ 593 $ 462 Semi-Cap 722 549 A&D 348 382 Industrials 593 428 Advanced Computing 310 199 Next Gen Comms 320 235 Total Sales (GAAP) $ 2,886 $ 2,2