Slide 1: Fiscal first quarter 2022 financial results
Fiscal first quarter 2022 financial results January 26, 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: Organizational changes
PLEXUS CORP. Organizational changes Steve Frisch Oliver Mihm President & Chief Strategy Officer Exec VP & Chief Operating Officer 3
Slide 4: Fiscal first quarter results
PLEXUS CORP. Fiscal first quarter results Q1F22 Results Q1F22 Preliminary Results Revenue ($ millions) $817 $815 to $820 GAAP Diluted EPS $0.82(1) $0.80 to $0.84(2) • Revenue below expectations due to unanticipated supply chain challenges in AMER region • EPS below expectations due to reduced revenu
Slide 5: Fiscal 2022 second quarter guidance
PLEXUS CORP. Fiscal 2022 second quarter guidance REVENUE GUIDE • Demand strong across all market sectors • Supply chain constraints limiting revenue Q2F22 Guidance EPS GUIDE • Pressured due to infrastructure in place to support robust Revenue $820 to $860 million revenue forecasts and seasonal compe
Slide 6: Performance by sector
PLEXUS CORP. Performance by sector Q1F22 Q4F21 Q2F22 Expectations Q1F22 vs. Q4F21 Jan 1, 2022 Oct 2, 2021 (percentage points) Industrial $364 45% $392 46% - 7% Up mid single Healthcare and Life Sciences $344 42% $333 40% + 3% Down low single Aerospace and Defense $109 13% $118 14% - 7% Up low double
Slide 7: Manufacturing wins
PLEXUS CORP. Manufacturing wins Q1F22 wins: $271M TFQ New programs: 41 $1.08B Trailing Four Quarters (TFQ) Manufacturing Wins $1,100 35% $1,000 30% $900 $800 Goal 25% 25% % of TFQ Sales $700 New Wins $M 20% $600 $500 15% $400 $300 10% $200 5% $100 $0 0% Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 TFQ Wins TFQ Win
Slide 8: Manufacturing wins by region and sector
PLEXUS CORP. Manufacturing wins by region and sector EMEA A/D $30M $46M APAC $45M Q1F22 Q1F22 HC/LS IND $152M $73M AMER $196M Region Sector AMER: HC/LS and A/D drove the region’s exceptional wins IND: Wins largely balanced across the regions APAC: Strong execution yielded wins from existing IND cust
Slide 9: Fiscal first quarter wins highlights
PLEXUS CORP. Fiscal first quarter wins highlights HIGH DENSITY SERVER (IND) SINGLE-USE CATHETER (HC/LS) • Reduction of supply chain carbon footprint • New manufacturing outsource • Production location: Oradea, Romania • Production location: Guadalajara, Mexico WAREHOUSE AUTOMATION PRODUCT (IND) TWO
Slide 10: Manufacturing funnel
PLEXUS CORP. Manufacturing funnel Funnel of Qualified Manufacturing Opportunities 3,500 3,289 3,316 3,325 3,037 3,109 3,000 A/D $631M 2,500 Revenue ($ millions) 2,000 Q1F22 HC/LS $1,772M 1,500 IND 1,000 $922M 500 - Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Qualified manufacturing funnel at a record level in exc
Slide 11: Thailand manufacturing expansion
PLEXUS CORP. Thailand manufacturing expansion • Located near Bangkok, Thailand • 400K ft2 manufacturing facility • Q3F22 completion on-time and on-budget • Key leadership in place • Initial manufacturing equipment being installed • Production qualification starts in Q3F22 11
Slide 12: Income statement
PLEXUS CORP. Income statement Q1F22 Comments Gross margin 8.6% Below guidance range of 8.9% to 9.3% Selling & administrative expenses $37.5 million Consistent with guidance range of $36.5 to $37.5 million Restructuring charges $2.0 million Severance related to a facility transition in our APAC regio
Slide 13: Cash flow and balance sheet
PLEXUS CORP. Cash flow and balance sheet Q1F22 Comments Share repurchases $10.2 million Approx. 110,000 shares at an average price of $91.74 per share Cash investment in operations: $89 million Free cash flow ($122) million Capital expenditures: $33 million Cash balance $218 million Sequentially low
Slide 14: Working capital trends
PLEXUS CORP. Working capital trends 160 140 120 100 Days 80 60 40 20 - Q2F20 Q3F20 Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Net Cash Cycle Days Inventory Days Contract Asset Days A/R Days A/P Days Customer Deposit Days Q2F20 Q3F20 Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Inventory Days 99 97 85 93 89 108 116
Slide 15: Fiscal second quarter 2022 guidance
PLEXUS CORP. Fiscal second quarter 2022 guidance Guidance Revenue $820 to $860 million GAAP diluted EPS $0.76 to $0.92 Gross margin 8.2% to 8.6% Selling & administrative expenses $38.5 to $39.5 million GAAP operating margin 3.6% to 4.0% Depreciation and amortization Approximately $16 million Non-ope
Slide 16: Q&A Thank you.
Q&A Thank you. PLEXUS | ————