Slide 1: Benchmark Electronics Q2-21 Earnings Results
Benchmark Electronics Q2-21 Earnings Results July 28, 2021
Slide 2: Forward-Looking Statements
Forward-Looking 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 (Exchange Act). These forward-looking statements are identified as any statement
Slide 3: Q2-21 Overview
Q2-21 Overview Achieved revenue of $545 million (11% year-over-year growth) - Strength from SemiCap, Industrials, and Telco sectors Realized Non-GAAP gross margin of 8.8% and Non-GAAP operating margin of 2.5% Overcame facility disruptions in Malaysia due to government restrictions related to COVID N
Slide 4: Q2-21 New Business Wins
Q2-21 New Business Wins Medical Cardiac monitoring (process design & manufacturing) Blood transfusion (process design & manufacturing) Invitro Diagnostics (design) Semi-Cap Process controller for coating equipment (manufacturing) Work cell handler (design) Power rack electronics (manufacturing) Aero
Slide 5: Roop Lakkaraju, Chief Financial Officer
Roop Lakkaraju Chief Financial Officer
Slide 6: Second Quarter Revenue by Market Sector
Second Quarter Revenue by Market Sector Q2-21 June 30, 2021 Revenue by Mix and Market Sector Mar. 31, 2021 June 30, 2020 For the Three Months Ended Dollars in Millions Higher-Value Markets Mix % Revenue Mix % Revenue Q/Q Mix % Revenue Y/Y Medical 20% $109 21% $109 - 27% $135 (19%) Semi-Cap 26% $139
Slide 7: Second Quarter 2021 Financial Summary
Second Quarter 2021 Financial Summary (In millions, except EPS) June 30, 2021 Mar. 31, 2021 Q/Q June 30, 2020 Y/Y Net Sales $545 $506 8% $491 11% GAAP Gross Margin 8.8% 8.3% 50 bps 7.1% 170 bps GAAP SG&A $34.0 $30.5 11% $28.5 19% GAAP Operating Margin 2.0% 2.4% (40 bps) (0.4%) 240 bps GAAP Diluted E
Slide 8: Cash Conversion Cycle Update
Cash Conversion Cycle Update Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Accounts Receivable Days 56 55 52 53 49 48 Contract Asset Days 28 28 28 25 26 26 Inventory Days 65 72 66 63 69 75 Accounts Payable Days (61) (61) (54) (54) (64) (69) Advance Payments from Customers Days (7) (10) (11) (16) (15) (16) Cas
Slide 9: Liquidity and Capital Resources
Liquidity and Capital Resources For the Three Months Ended Cash (In millions) June 30, 2021 Mar. 31, 2021 June 30, 2020 Cash Flows from (used in) Operations $4 $37 $23 FCF (1) $(9) $30 $13 Cash $370 $400 $356 International $235 $247 $162 US $135 $153 $194 (1) Free cash flow (FCF) defined as net cash
Slide 10: Capital Allocation Update
Capital Allocation Update Dividends Quarterly dividend of $0.16 per share totaling $5.8 million paid in April 2021 Recurring quarterly dividend of $0.165 per share paid to shareholders on July 14, 2021 Recurring quarterly dividends to continue until further notice Share Repurchases Share repurchases
Slide 11: Third Quarter 2021 Guidance
Third Quarter 2021 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 12: 2021 Revenue Trends and Key Initiatives
2021 Revenue Trends and Key Initiatives Jeff Benck - CEO
Slide 13: Trends by Market Sector
Trends by Market Sector Sector Q3-21 Revenue Guidance CY2021 Revenue Outlook Comments Medical Overall 2H-21 revenue greater than 1H-21 revenue Some new program ramps moving from 2021 into early next year Semi-Cap Q3 revenue is limited due to constraints at mechanical sub-tiers Expect continued stron
Slide 14: 2021 Key Strategic Initiatives Update
2021 Key Strategic Initiatives Update 01 Grow Revenue Strong bookings continue in all sectors Achieved >50% attach rate of engineering projects to manufacturing services bookings in Q2 Continued strength in Semi-Cap through 2021 and 2022 Will exceed >5% annual growth in 2021 03 Grow Earnings Faster
Slide 15: Highlights and 2H-21 Outlook
Highlights and 2H-21 Outlook Revising revenue outlook to high single digit growth in 2021 Strong SemiCap demand continues (expect >30% annual revenue growth) Second half High Performance Computing program ramps Improving demand and revenue in Industrials In all sectors, demand outpacing component su
Slide 16: Appendix
Appendix Benchmark. 16
Slide 17: 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
Slide 18: Reconciliation of Free Cash Flow
(Amounts in Thousands) – (UNAUDITED) APPENDIX 2 - Reconciliation of Free Cash Flow Three Months Ended June 30, 2021 Mar. 31, 2021 June 30, 2020 Net Cash Provided by Operations $3,660 $36,613 $23,027 Additions to property, plant and equipment and software (12,197) (6,422) (10,394) Free Cash Flow (Fre