Slide 1: Q4 2015 and Full Year 2015 Earnings Presentation
design develop deliver advanced technology Q4 - 2015 and Full Year 2015 Earnings Presentation February 9, 2016
Slide 2: Forward-Looking Statements
design develop deliver advanced technology 1 Forward - Looking Statements This document contains forward - looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “expect,” “estimate,” “anticipate,” “predict” and similar expressions, and t
Slide 3: President and CEO Update
design develop deliver advanced technology 2 President and CEO Update
Slide 4: Strategic Plan Execution Highlights
design develop deliver advanced technology 3 Strategic Plan Execution Highlights Priorities ► 55% of revenues from higher - value markets (medical, industrial, and test & instrumentation) ► Historic high for Benchmark 2015 Waypoint Targets Portfolio Shift to Higher - Value Markets Margin Expansion B
Slide 5: Evolving Our Portfolio with Engineering-led Solutions
design develop deliver advanced technology 4 Evolving Our Portfolio with Engineering - led Solutions 2015 Target mix 55% 45% 70% 30% $1.2bn $1.4bn $1.1bn $1.4bn Revenue $ 2.5bn Resulting mix = significant upside potential Source: Company filings Revenue >$3.0bn Traditional markets Higher - Value mar
Slide 6: Benchmark Results and Outlook by Market Segment
design develop deliver advanced technology 5 Higher - Value Markets 2016 Outlook* Industrials** > 10% Annual Growth Medical Test & Instrumentation Total Revenue Traditional Markets 2016 Outlook* Computing Decline – Macro Related Telecommunication s Total Revenue Benchmark Results and Outlook by Mark
Slide 7: First Quarter 2016 Guidance
design develop deliver advanced technology 6 Guidance Net Sales (in millions) $565 – $590 Operating Margin – non - GAAP 3.8% – 4.1% Interest Expense $2.3 million Effective Tax Rate 24 - 25% Diluted EPS – non - GAAP $0.29 – $0.33 ▪ Outlook is for the first quarter ending March 31, 2016. First Quarter
Slide 8: Q4 and 2015 Financial Highlights
design develop deliver advanced technology 7 Q4 and 2015 Financial Highlights
Slide 9: Fourth Quarter 2015 Financial Summary
design develop deliver advanced technology 8 (In millions, except EPS) Dec 31 , 2015 Sep 30, 2015 Dec 31 , 2014 Net Sales $625.7 $630.2 $709.5 Net Income – GAAP $39.4 $20.6 $23.3 Net Income – non - GAAP $23.0 $21.2 $22.5 Diluted EPS – GAAP $0.77 $0.40 $0.44 Diluted EPS – non - GAAP $0.45 $0.41 $0.42
Slide 10: Fiscal Year 2015 Financial Summary
design develop deliver advanced technology 9 (In millions, except EPS) Dec 31 , 2015 Dec 31 , 2014 Net Sales $2,540.9 $2,797.1 Net Income – GAAP $95.4 $81.2 Net Income – non - GAAP $84.1 $88.1 Diluted EPS – GAAP $1.83 $1.50 Diluted EPS – non - GAAP $1.61 $1.63 Operating Margin – GAAP 3.7% 3.6% Opera
Slide 11: Trending Operating Income
design develop deliver advanced technology 10 Trending Operating Income Revenue Diversification and Operational E xcellence D rive H igher M argins
Slide 12: Fourth Quarter 2015 New Business Wins
design develop deliver advanced technology 11 Q4 2015 Number of New Business Wins by Segment ▪ Q4 2015: 35 new business bookings, including 12 engineering projects ▪ Estimated annual revenue run rate between $115 - 135 million ▪ Continued new business wins in targeted markets Quarterly Estimated Ann
Slide 13: Benchmark Results and Outlook by Market Segment
design develop deliver advanced technology 12 Higher - Value Markets Sep 30 , 2015 Dec 31 , 2015 Q1 - 16 Outlook (%) Industrials* 31% $198 35% $223 Up Mid Single Digits Medical 14% $87 15% $92 Flat Test & Instrumentation 9% $58 8% $51 Flat Total Revenue $343 $366 Traditional Markets Sep 30 , 2015 De
Slide 14: Balance Sheet and Cash Flows
design develop deliver advanced technology 13 Balance Sheet and Cash Flows (In millions) ) Dec 31 , 2015 Sep 30, 2015 Dec 31, 2014 Cash $466.0* $462.1 $427.4 Debt $235.2 $9.0 $9.5 Cash Flows from Operating Activities $28.1 $77.6 $22.1 Capital Expenditures $5.2 $7.9 $8.8 Depreciation & Amortization $
Slide 15: Working Capital Update
design develop deliver advanced technology 14 Dec 31 , 2015 Sep 30 , 2015 Accounts Receivable Days 69 67 Accounts Payable Days 40 43 Inventory Days 64 66 Cash Conversion Cycle Days 93 90 ▪ Cash Conversion Cycle days greater by three days related to shipments later in the quarter than expected ▪ Ongo
Slide 16: Share Repurchases
design develop deliver advanced technology 15 Share Repurchases Continue to use U.S. cash for share buybacks $490 million returned to shareholders since 2007 ▪ $135 m illion remaining on authorized purchase plans Inception to 2015 2011 - 2015 2015 $US Stock Repurchases (M ) $490 $257 $68 Buyback % o
Slide 17: Appendix
design develop deliver advanced technology 16 Appendix
Slide 18: Reconciliation of GAAP to non-GAAP Financial Results
design develop deliver advanced technology 17 Reconciliation of GAAP to non - GAAP Financial Results (Amounts in Thousands, Except Per Share Data) – (UNAUDITED) Dec 31, Sep 30, Dec 31, 2015 2015 2014 2015 2014 21,905$ 26,148$ 28,653$ 92,969$ 100,144$ 6,308 1,095 955 13,861 7,131 - - (1,547) - (1,547