Slide 1: Fiscal fourth quarter 2021 financial results
Fiscal fourth quarter 2021 financial results October 28, 2021
Slide 2: Safe harbor and fair disclosure statement
PLEXUS CORP. Safe harbor and fair disclosure statement Any statements made during our call today and information included in the supporting material that is not historical in nature, such as statements in the future tense and statements that include "believe," "expect," "intend," "plan," "anticipate
Slide 3: Fiscal 2021 results
PLEXUS CORP. Fiscal 2021 results ROBUST GAAP EPS GROWTH AND MARGIN EXPANSION • GAAP EPS grew 21% year-over-year • GAAP operating margin of 5.2% exceeded previous target range of 4.7% to 5.0% • Establishing new GAAP operating margin target of 5.5% • GAAP operating margin was best result since fiscal
Slide 4: Our ESG efforts continue to gain traction
PLEXUS CORP. Our ESG efforts continue to gain traction • Giving back to our communities • Promoting STEM education • Establishing paid volunteer time off program Our people create our best Plexus. • Expansion of Employee Resource Groups Be you. Ingrained in our culture of We respect our people and e
Slide 5: Fiscal fourth quarter results
PLEXUS CORP. Fiscal fourth quarter results Q4F21 Results Q4F21 Guidance Q3F21 Results Revenue ($ millions) $843 $875 to $915 $814 GAAP Diluted EPS $1.16(1) $1.13 to $1.29(2) $0.95(3) Profitability and EPS met guidance on revenue shortfall • Worsening supply chain conditions and COVID-related labor s
Slide 6: Fiscal 2022 first quarter guidance
PLEXUS CORP. Fiscal 2022 first quarter guidance REVENUE GUIDE • HC/LS and IND demand strong • Supply chain constraints limiting revenue Q1F22 Guidance EPS GUIDE • GAAP operating margin of 4.6% to 5.0%, including 70 bps of Revenue $825 to $865 million stock-based compensation expense GAAP Diluted EPS
Slide 7: Performance by sector
PLEXUS CORP. Performance by sector Q4F21 Q3F21 Q1F22 Expectations Q4F21 vs. Q3F21 F21 vs. F20 Oct 2, 2021 Jul 3, 2021 (percentage points) Industrial $392 46% $372 46% + 5% + 2% Down low single Healthcare and Life Sciences $333 40% $324 40% + 3% + 5% Up mid single Aerospace and Defense $118 14% $118
Slide 8: Manufacturing wins
PLEXUS CORP. Manufacturing wins Q4F21 wins: $251M New programs: 38 TFQ $1.03B Trailing Four Quarters (TFQ) Manufacturing Wins $1,100 35% $1,000 30% $900 Goal $800 25% 25% % of TFQ Sales $700 New Wins $M 20% $600 $500 15% $400 $300 10% $200 5% $100 $0 0% Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 TFQ Wins TFQ Win
Slide 9: Manufacturing wins by region
PLEXUS CORP. AMER 180 100% 162 TFQ Wins % of TFQ Revenue 160 142 Revenue ($ millions) 136 80% 140 Manufacturing wins by region 119 120 100 89 60% 80 40% 60 40 20% 20 - 0% Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 EMEA Revenue TFQ Wins % of TFQ Revenue (MFG) $47M APAC 180 100% TFQ Wins % of TFQ Revenue 160 Reven
Slide 10: Manufacturing wins by sector
PLEXUS CORP. Manufacturing wins by sector HC/LS $44M Industrial Healthcare and Life Sciences 180 60% 180 60% 153 159 TFQ Wins % of TFQ Revenue TFQ Wins % of TFQ Revenue 160 160 Revenue ($ millions) Revenue ($ millions) 50% 50% A/D 140 108 108 140 119 $120M Q4F21 120 100 96 87 40% 30% 120 100 81 40%
Slide 11: Fiscal fourth quarter wins highlights
PLEXUS CORP. Fiscal fourth quarter wins highlights NEXT GENERATION CABLE ACCESS PRODUCT (IND) DIAGNOSTIC TEST INSTRUMENT (HC/LS) • Outsourced from internal manufacturing • COVID-19 PCR tester • Production location: Guadalajara, Mexico • Production location: Kelso, Scotland DATA COMPRESSION AND SECUR
Slide 12: Manufacturing funnel
PLEXUS CORP. Manufacturing funnel Funnel of Qualified Manufacturing Opportunities 3,500 3,289 3,316 3,037 3,109 3,000 2,715 A/D $708M 2,500 Revenue ($ millions) 2,000 HC/LS Q4F21 $1,670M 1,500 IND 1,000 $938M 500 - Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Qualified manufacturing funnel grows to a record $3.3B
Slide 13: Operating performance
PLEXUS CORP. Operating performance Q4F21 GAAP Operating Margin: 5.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% F16 F17 F18 F19 F20 F21 Exceptional F21 GAAP Operating Margin of 5.2% 13
Slide 14: Income statement
PLEXUS CORP. Income statement Q4F21 Comments Revenue $843 million Sequentially higher by 4% Gross margin 9.4% Sequentially improved by 30 basis points Selling & administrative expenses $36.6 million Favorable to guidance range of $39.0 to $40.0 million GAAP operating margin 5.0% At mid-point of guid
Slide 15: Cash flow and balance sheet
PLEXUS CORP. Cash flow and balance sheet Q4F21 Comments Cash from operations: $11 million Free cash flow ($12) million Capital expenditures: $23 million Share repurchases $29.3 million Approx. 331,000 shares at an average price of $88.39 per share Cash balance $271 million Sequentially lower by $37
Slide 16: Working capital trends
PLEXUS CORP. Working capital trends 140 120 100 80 Days 60 40 20 - Q1F20 Q2F20 Q3F20 Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Net Cash Cycle Days Inventory Days Contract Asset Days A/R Days A/P Days Customer Deposit Days Q1F20 Q2F20 Q3F20 Q4F20 Q1F21 Q2F21 Q3F21 Q4F21 Inventory Days 87 99 97 85 93 89 108 116 C
Slide 17: Fiscal first quarter 2022 guidance
PLEXUS CORP. Fiscal first quarter 2022 guidance Guidance Revenue $825 to $865 million GAAP diluted EPS $1.01 to $1.17 Gross margin 8.9% to 9.3% SG&A $36.5 to $37.5 million GAAP operating margin 4.6% to 5.0% Depreciation and amortization Approximately $16 million Non-operating expenses $3.8 to $4.2 m
Slide 18: Q&A Thank you.
Q&A Thank you. PLEXUS | ————