Steve Martens VP Investor Relations 2013 May / June

Transcription

1 Steve Martens VP Investr Relatins 2013 May / June

2 The Cnnectr Market Tp 3 Player in Fragmented Industry Psitined in large market $50B 2012 glbal cnnectr market A grwing market 5-7% CAGR past 20 years Differentiated prducts Many different types f cnnectrs >2,000 cmpanies ~8% Mlex 2-3% f end prduct cst Cnslidatin pprtunities 2 Tp 10 Cnnectr Cmpanies TE Cnnectivity Amphenl Mlex Incrprated Yazaki Fxcnn FCI JST Delphi Hirse JAE Tp 3 perate glbally and are diversified by end market Key Drivers fr Grwth Emerging markets Enterprise refresh cycle Aut / medical cntent Rising internet traffic Mre mbile devices

3 Mlex at a Glance Revenue by Market/Gegraphy Revenue $3.6B Emplyees 35, lcatins in 15 cuntries Prducts in prtfli >100,000 Market capitalizatin >$4.8B Dividend yield ~3-4% Nte: Fiscal year ends June 30th Medical / Military 3% Industrial 13% Autmtive 17% Market Breakdwn (F2012) Mbile Devices 16% Telecm 15% Cnsumer Electrnics 18% Well balanced by market Inftech 18% ~8% Gegraphic Breakdwn (F2012) Americas 26% Eurpe 14% Asia 60% Significant expsure t high grwth Asia Industry Leader in R&D Investment in R&D as % f revenue 5% Patents awarded in F New prducts last 3 years as % f FY2012 revenue Current prduct pipeline vs. past 35% Strnger 190 Drive Grwth Thrugh New Prducts 221 New Prduct Intrductins F2009 F2010 F2011 F2012 Lng histry f rganic grwth Recgnized by majr custmers New prducts driving abve market grwth in F2013 Leveraging industry-leading R&D 3

4 Full Year Financial Summary (US $ in millins, except per-share data) Average Seasnal Trend Sequential 10 year average Revenue Bkings Net revenue $3,007 $3,587 $3,489 Grss margin 29.7% 30.3% 30.6% Operating margin *9.4% 12.0% 11.4% EPS *$1.10 $1.70 $1.59 Q3 (March) (2) t (3)% 1 t 2% Q4 (June) 5 t 6% 4 t 5% Q1 (September) 2 t 3% 4 t 5% Q2 (December) 1 t 2% (2) t (3)% Strng perating margin vs. S&P 500 *See GAAP t Nn-GAAP recnciliatin US $ in millins Free Cash Flw Trend Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Cash Flw Frm Operatins $141.0 $138.9 $143.3 $167.4 $87.2 $(20.1) Less: Capital Expenditures $(52.3) $(54.4) $(77.7) $(69.4) $(78.6) $(55.9) Add: Japan Litigatin Settlement* $182.8 Recrd f Cnsistent Dividend Grwth $0.96 $0.15 $0.23 $0.30 $0.45 $0.61 $0.61 $0.70 $0.82 $0.88 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 Current Rate Target f 40% t 50% payut rati 4 Free Cash Flw (nn-gaap measure) $88.7 $84.5 $65.6 $98.0 $8.6 $106.8 *See unauthrized activities in Japan sectin f ur press release dated April 23, 2013

5 FY12 Cst f Sales Breakdwn Capital Expenditure Trend (% f revenue) Direct Labr 11% Variable Overhead 17% 15.9% Avid duplicatin f capacity Imprve design standardizatin Internal tling capability Japan, China Target: 6-7% f revenue Depreciatin 9% Other Material 33% 9.7% 9.1% 6.8% 6.9% 7.6% 7.3% 6.5% Fixed Overhead 16% Ttal square ftage Manufacturing Sq Ftage FY07 FY12 7.2M 8.3M Asia 3.7M 5.3M Americas 2.2M 2.3M Eurpe 1.3M 0.7M Number f lcatins Gld 7% Cpper Plastic 3% Resins 4% Manufacturing Ftprint by Gegraphy % 45% 25% Prduct Specific 50% f capex General Capacity 30% f capex General / Building 20% f capex Lw Cst Manufacturing 47% 30% FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Headcunt Mfg. Sq. Ft. 70% 57% 5 Fewer, but larger, fully-integrated facilities

6 Fcus Markets Grwth frm Adjacent Prducts Cntinue t diversify end market expsure Fcus n markets with lng prduct cycle, high margin and best grwth ptential Medical Industrial Autmtive Military Dedicate and acquire resurces t build mmentum Adjacent Prducts as % f Revenue Tday ~20% Existing custmer base lking fr supprt Lw incremental investment, high RONA Prducts Cnnectrs with embedded cmpnents Antennae LED lighting Acustics Cable prducts Greater Fcus n Acquisitins Acquisitin Fcus Specific technlgies r markets High margin prduct line Fiber ptics RF Select markets, lnger prduct lifecycle Medical Industrial Autmtive Military Vertically integrate Specialty wire and cable Psitining Strengths Grwth Summary Repsitined: Strng platfrm fr grwth Efficient, glbal structure, prduct fcused, lwer cst, faster tp line grwth Leveraging key strengths Well-psitined in grwth market, gaining share, excellent financial resurces Multiple initiatives driving grwth New custmers, prducts and markets, adjacent prducts and acquisitins 6 Target purchase price $30-$300 millin

7 FY13 Q3 Earnings Call Change in Revenue/Orders By Industry March Quarter REVENUE ORDERS Seq. Change YOY Change % Ttal Seq. Change YOY Change ~20% % Ttal Autmtive 10% 13% 20% 13% 14% 19% Inftech (6)% (10)% 17% 2% (7)% 17% Telecm (7)% (9)% 13% 3% (17)% 12% Mbile Devices (37)% 35% 19% (19)% 56% 21% Cnsumer Elect. (17)% (19)% 13% (6)% (18)% 13% Industrial 6% (5)% 13% 18% 1% 14% Medical/Military 2% 35% 5% (8)% 20% 4% TOTAL (12)% 2% 100% (1)% 4% 100% End Market Trend (US $ in millins) Orders Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Autmtive $134.9 $148.5 $133.1 $153.9 $149.1 $151.6 $155.8 $176.1 Inftech Telecm Mbile Devices Cnsumer Elect Industrial Medical/Military Ttal $906.0 $910.0 $815.3 $872.6 $901.0 $943.9 $919.7 $909.2 Revenue Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Autmtive $143.2 $143.9 $135.3 $151.0 $150.0 $150.9 $155.5 $171.3 Inftech Telecm Mbile Devices Cnsumer Elect Industrial Medical/Military Ttal $913.7 $936.0 $857.6 $837.1 $858.5 $916.9 $967.7 $

8 Revenue / Order Trend (US $ in millins) Financial Summary (US $ in millins, except per-share data) $936 $910 $858 $815 $873 $837 $901 $859 $944 $917 $968 $920 $909 $853 Mar 2013 Quarter Ended Dec 2012 Mar 2012 Net revenue $852.9 $967.7 $837.1 Grss margin 29.1% 29.9% 30.5% SG&A $167.4 $181.0 $163.9 Unauthrized activities in Japan $21.2 $1.6 $2.5 Incme frm peratins $59.9 $106.5 $88.8 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Revenue Orders Q3 Bk-t-Bill 1.07 t 1 Interest (expense) net $(1.6) $(1.1) $(1.2) Other (expense) incme $0.3 $(3.2) $1.6 Effective tax rate 23.6% 31.1% 27.2% Net incme $44.8 $70.4 $64.9 Earnings per diluted share $0.25 $0.39 $0.36 Balance Sheet and Operating Metrics (US $ in millins) Quarter Ended Revenue Outlk June Fiscal Quarter $870 t $910 millin Mar 2013 Dec 2012 Mar 2012 EPS $0.33 t $0.37 Cash and marketable securities $712.9 $716.8 $622.5 Ttal debt* $399.8 $341.9 $252.2 Net cash $313.1 $374.9 $370.3 Receivable days utstanding 70 Days 67 days 72 Days Assumes 30% t 32% effective tax rate Cnstant freign exchange rates and cmmdity prices Inventry days utstanding 89 Days 83 days 93 Days Research and develpment $46.2 $47.9 $ *Ttal debt equals lng-term debt plus current prtin f lng-term debt and shrt-term lans, less current prtin f capital leases

9 9 ~20%

10 Nn-GAAP Financial Measures In Mlex Incrprated s ( Mlex r the Cmpany ) cnference call n August 8, 2012 regarding the Cmpany s financial results fr the fiscal quarter and fiscal year ended June 30, 2012 and the fllwing slides, Mlex may refer t nn-gaap financial measures t describe earnings fr such perids excluding the items referenced in the relevant slides used during this cnference call. This is in additin t disclsing the mst directly cmparable measure fr such perids determined in accrdance with generally accepted accunting principles, r GAAP. Mlex believes that these nn-gaap financial measures prvide useful infrmatin t investrs because they prvide infrmatin abut the estimated financial perfrmance f Mlex s nging business and prvide fr greater transparency f supplemental infrmatin used by management in its financial and peratinal decisin-making. These nn-gaap financial measures may be different frm nn-gaap financial measures used by ther cmpanies. Nn-GAAP financial measures shuld nt be cnsidered as a substitute fr, r superir t, measures f financial perfrmance prepared in accrdance with GAAP. Investrs are encuraged t review the relevant slides recnciling the nn-gaap financial measures intended t be used in the cnference call t the mst cmparable GAAP measure. Nn-GAAP Measure (US$ in thusands) Fiscal year ended June 2010 Incme frm peratins $137,802 Restructuring csts and asset impairments 117,139 ~20% Unauthrized activities in Japan 26,898 Nn-GAAP incme frm peratins $281,839 Nn-GAAP incme frm peratins as a percent f sales 9.4% Nn-GAAP incme frm peratins is a nn-gaap financial measure. We refer t nn-gaap incme frm peratins t describe incme frm peratins excluding the items referenced abve. We believe that nn-gaap incme frm peratins prvides useful infrmatin t investrs because it prvides infrmatin abut the estimated financial perfrmance f Mlex s nging business. Nn-GAAP incme frm peratins is used by management in its financial and peratinal decisin-making and evaluatin f verall perating perfrmance and segment level cre perating perfrmance. Nn-GAAP incme frm peratins may be different frm similar measures used by ther cmpanies. Nn-GAAP Measure Fiscal year ended June 2010 Earnings per share $0.44 Restructuring csts and asset impairments 0.53 Unauthrized activities in Japan 0.10 Tax adjustment stck cmpensatin 0.03 Nn-GAAP earnings per share $1.10 Nn-GAAP earnings per share is a nn-gaap financial measure. We refer t nn-gaap earnings per share t describe earnings per share excluding the items referenced abve. We believe that nn-gaap earnings per share prvides useful infrmatin t investrs because it prvides infrmatin abut the estimated financial perfrmance f Mlex s nging business. Nn-GAAP earnings per share is used by management in its financial and peratinal decisinmaking and evaluatin f verall perating perfrmance and segment level cre perating perfrmance. Nn-GAAP earnings per share may be different frm similar measures used by ther cmpanies. 10