Slide 1: Company Overview
COMPANY OVERVIEW February 5, 2024 1
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements other than statements of historical
Slide 3: Fabrinet Overview
Fabrinet Overview ❑ Global leader in advanced precision optical/ electronic/mechanical manufacturing services ❑ Focus on high-mix/low-volume mission-critical components and modules ❑ Serving growing industrial markets VitroCom Fabrinet West ▪ Telecom and Datacom Optical Communications Santa Clara Ne
Slide 4: Markets and Products
Markets and Products Optical Automotive Industrial Lasers Other Communications ◼ EV Charging ◼ Lasers ◼ Medical ◼ Transceivers Diagnostics ◼ LIDAR ◼ Solid-State Lasers ◼ Modulators ◼ Metrology & ◼ LED & Laser ◼ Gas Lasers ◼ Optical Amplifiers Lighting Instrumentation ◼ Ultrafast Lasers ◼ ROADM ◼ Saf
Slide 5: Efficient Global Manufacturing Footprint
Efficient Global Manufacturing Footprint Precision Optical and Electronic Quickturn NPI Services Packaging and Assembly Casix, China Vitrocom, NJ, USA Pinehurst Campus, Thailand Custom Optics Fabrinet Israel Fabrinet West, CA, USA Chonburi Campus, Thailand 5
Slide 6: Investment Highlights
Investment Highlights ✓ Large and growing addressable markets ✓ Differentiated business model with low-cost structure Highly differentiated expertise in precision manufacturing ✓ technologies enabling next-generation products ✓ Strong relationships with industry-leading OEMs ✓ Demonstrated track rec
Slide 7: Strong Revenue Trends
Strong Revenue Trends QUARTERLY CONSOLIDATED REVENUE ($M) 800 685.5 712.7 665.3 655.9 655.4 668.7 700 587.9 564.4 543.3 566.6 600 479.3 509.6 500 400 300 200 100 0 Mar'21 Mar'22 Mar'23 Jun '21 Jun '22 Jun '23 Sep'21 Sep'22* Sep'23 Dec'21 Dec'22 Dec'23 Optical communications Non-optical communication
Slide 8: Consistent Profitability
Consistent Profitability NON-GAAP GROSS MARGIN AND NON-GAAP OPERATING MARGIN (1) % of Sales 15.0% 12.6% 13.0% 13.0% 12.6% 10.3% 10.8% 10.9% 10.7% 10.0% 5.0% 0.0% FY2022 FY2023 2Q23 2Q24 Gross margin Operating margin RETURN ON INVESTED CAPITAL (2) 40.0% 34.9% 35.0% 32.6% 32.6% 33.0% 30.0% 25.0% 20.0%
Slide 9: Recent Financial Performance
Recent Financial Performance Key Financials • Q2 revenue of $712.7 million exceeded guidance, and was a $Millions (USD), except per share figures 3 months ended new record 29-Dec-23 30-Dec-22 Revenue $712.7 $668.7 • Q2 non-GAAP operating margin Y-o-Y change 7% 18% was 10.7% Gross profit (non-GAAP) (
Slide 10: Strong Balance Sheet Supports Growth Strategy
Strong Balance Sheet Supports Growth Strategy Selected Items $Millions (USD) As of Dec 29, 2023 Cash, cash equivalents(1) $740.6 Working capital (2) $622.8 Property, plant & equipment, net $306.0 Total debt (3) $6.1 Total shareholders’ equity $1,611.4 (1) Cash & cash equivalents include marketable s
Slide 11: Revenue Mix
Revenue Mix F1Q22 F2Q22 F3Q22 F4Q22 F1Q23 F2Q23 F3Q23 F4Q23 F1Q24 F2Q24 Optical Communications 79% 80% 78% 79% 76% 76% 76% 77% 78% 80% Datacom 21% 22% 19% 20% 19% 22% 24% 38% 45% 51% Telecom 79% 78% 81% 80% 81% 78% 76% 62% 55% 49% Non-Optical Communications 21% 20% 22% 21% 24% 24% 24% 23% 22% 20% Op
Slide 12: Revenue by Product Category
Revenue by Product Category Revenue in $Millions (USD) F2Q22 F3Q22 F4Q22 F1Q23 F2Q23 F3Q23 F4Q23 F1Q24 F2Q24 Optical $450.8 $440.0 $464.7 $497.6 $506.1 $502.6 $502.1 $533.3 $567.9 Communications Datacom 98.1 81.7 92.8 92.7 113.2 122.4 192.5 242.0 288.1 Telecom 352.7 358.3 371.9 404.9 392.9 380.2 309
Slide 13: Optical Communications Revenue
Optical Communications Revenue Revenue in $Millions (USD) F2Q22 F3Q22 F4Q22 F1Q23 F2Q23 F3Q23 F4Q23 F1Q24 F2Q24 Silicon Photonics $157.0 $144.9 $151.1 $138.9 $123.4 $108.7 $88.1 $88.5 $97.9 100-Gig 139.8 124.6 141.4 139.6 153.4 112.3 96.0 82.9 63.7 >=400-Gig 188.8 193.1 180.8 195.5 173.7 221.2 266.8
Slide 14: Appendix
Appendix 14
Slide 15: 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 December 29, September 29, December 30, June 30, 2023 June 2
Slide 16: Non-GAAP Reconciliation of Net Profit and EPS
Non-GAAP Reconciliation of Net Profit and EPS Reconciliation of GAAP measures to non-GAAP measures (in thousands of U.S. dollars, except per share data) FQ2'24 FQ1'24 FQ2'23 December 29,2023 September 29,2023 December 30,2022 Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS GAAP