Fiscal fourth quarter 2023
highlights
October 25, 2023
PLEXUS CORP.
Safe harbor and fair disclosure statement
Some of the statements made and information provided during our call as well as information included in the supporting materials will be forward looking statements, including, without limitation, those regarding revenue, gross margin, selling and administrative expense, operating margin, other income and expense, taxes, cash cycle, capital allocation and future business outlook. Forward-looking statements are not guarantees since there are inherent difficulties in predicting future results, and actual results could differ materially from those expressed or implied in the forward-looking statements. For a list of factors that could cause actual results to differ materially from those discussed, please refer to the Company's periodic SEC filings, particularly the risk factors in our Form 10-K filing for the fiscal year ended October 01, 2022 as supplemented by our form 10-Q filings, and the Safe Harbor and Fair Disclosure statement in our press release detailing our quarterly results.
2
FISCA L FOURTH QUA RTER THEMES
Robust fiscal 2023
financial performance
Momentum in advancing
our sustainable and responsible business practices
Confident in achieving $5
billion in revenue with 5.5% GAAP operating margin by fiscal 2025
O U R V I S I O NO U R M I S S I O N
W E H E L P C R E A T E T H E P R O D UC T S T H A T B UI L D A B E T T E R W O R L D
T H E L E A D E R I N H I G H L Y C O M P L E X P R O D UC T S A ND D E M A ND I NG
R E G UL A T O R Y E NV I R O NM E NT S
PLEXUS CORP.
Enduring goal performance
PLXS | ||||||
Revenue | Non-GAAP | ROIC | ||||
CAGR | Op Margin * | |||||
Enduring Goal | 9-12% | 5.5% | 15.0% | |||
1 | Year (F23) | 10% | 5.2% | 13.4% | ||
5 | Year (F18-F23) | 8% | 4.9% | 13.8% | ||
- F23 revenue growth of >10%
- >5% F23 non-GAAP operating margin
- 16% F23 non-GAAP EPS growth
- F23 FCF of $62 million
Revenue ($ millions) | ||||||
4,500 | ||||||
4,000 | ||||||
3,500 | ||||||
3,000 | ||||||
2,500 | ||||||
2,000 | ||||||
1,500 | ||||||
1,000 | ||||||
500 | ||||||
0 | ||||||
F17 | F18 | F19 | F20 | F21 | F22 | F23 |
Revenue | ROIC |
Consistently strong performance!
ROIC
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
*Includes stock-based compensation expense and excludes restructuring and one-time charges 4
PLEXUS CORP.
Fiscal fourth quarter financial results
1,200
1,100
1,000
900
800
700
600
1,124
Revenue ($ millions)
1,094 1,071
1,022 1,024
Operating Margin (Non-GAAP) | |||||
7.0% | |||||
5.5% | |||||
6.0% | 5.2% | 5.3% | 5.0% | 5.2% | |
5.0% | |||||
4.0% | |||||
3.0% | |||||
2.0% | |||||
1.0% | |||||
0.0% | |||||
$2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00
Q4 F22 | Q1 F23 | Q2 F23 | Q3 F23 | Q4 F23 |
EPS (Non-GAAP)
$1.78
$1.49 | $1.45 | $1.44 |
$1.32 |
Q4 F22 | Q1 F23 | Q2 F23 | Q3 F23 | Q4 F23* |
Q4 F22 | Q1 F23 | Q2 F23 | Q3 F23 | Q4 F23* |
- 5th consecutive quarter with revenue in excess of $1 billion
- 6th consecutive quarter with non-GAAP operating margin exceeding 5%
- GAAP operating margin met the high end of guidance and GAAP EPS exceeded guidance
*Includes $0.21 of stock-based compensation expense
5
PLEXUS CORP.
Wins and funnel highlights
350
300
250
200
150
100
50
-
Wins ($ millions) | |||||||||||||
4,500 | |||||||||||||
321 | |||||||||||||
275 | 4,000 | ||||||||||||
3,500 | |||||||||||||
214 | 192 | 3,000 | |||||||||||
2,500 | |||||||||||||
158 | |||||||||||||
2,000 | |||||||||||||
1,500 | |||||||||||||
1,000 | |||||||||||||
500 | |||||||||||||
- | |||||||||||||
Q4F22 | Q1F23 | Q2F23 | Q3F23 | Q4F23 | |||||||||
Funnel ($ millions)
4,216 | ||||||||||
3,979 | ||||||||||
3,389 | 3,633 | 3,672 | ||||||||
Q4F22 | Q1F23 | Q2F23 | Q3F23 | Q4F23 |
- 30 new manufacturing program wins worth $192 million
- Funnel expanded nearly $300 million year-over-year to $3.7 billion
- Funnel contains a greater than typical number of large opportunities
6
PLEXUS CORP.
Fiscal 2024 first quarter guidance
1,200
1,100
1,000
900
800
700
600
Revenue ($ millions) | ||||||||||||||
7.0% | ||||||||||||||
1,094 | ||||||||||||||
1,071 | 6.0% | |||||||||||||
1,022 | 1,024 | 1,010 | ||||||||||||
5.0% | ||||||||||||||
4.0% | ||||||||||||||
3.0% | ||||||||||||||
2.0% | ||||||||||||||
1.0% | ||||||||||||||
0.0% | ||||||||||||||
Q1 F23 | Q2 F23 | Q3 F23 | Q4 F23 | Q1 F24* | ||||||||||
Operating Margin (Non-GAAP)
5.2% | 5.3% | 5.0% | 5.2% | 5.1% | ||||||||
Q1 F23 | Q2 F23 | Q3 F23 | Q4 F23 | Q1 F24* |
$1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00
EPS (Non-GAAP)
$1.49 | $1.45 | $1.44 | ||||||||||
$1.32 | $1.24 | ** | ||||||||||
Q1 F23 | Q2 F23 | Q3 F23 | Q4 F23 | Q1 F24* |
- Q1F24 revenue of $990 million to $1.03 billion
- Q1F24 GAAP operating margin of 4.8% to 5.3%
- Strong F24 demand in commercial aerospace and industrial; unfulfilled backlog remains significant
- Accelerating revenue growth and operating margin expansion as F24 progresses
*All charts reference midpoint of guidance ** Includes $0.19 of stock-based compensation expense
7
S U S T A I N A B L E A N D R E S P O N S I B L E B U S I N E S S P R A C T I C E S
FISCA L 2 0 2 3 HIGHLIGHT S
Over 19,000 volunteer hours (300% YoY increase)
Two new Employee Resource Groups, 15 new chapters created globally
Charitable foundation donated > $1 million globally
Expect to substantially exceed our 5% energy intensity reduction from operations goal following a 12% reduction in fiscal 2022
Bevi smart water dispenser - voted Coolest Thing Made in Wisconsin for 2023
8
PLEXUS CORP.
Market sector performance - Industrial
Revenue ($ millions) | ||||
600 | ||||
520 | ||||
500 | 472 | |||
439 | 428 | 417 | ||
400 | ||||
300
200
100
-
Q4F22 | Q1F23 | Q2F23 | Q3F23 | Q4F23 |
Q4F23 vs.
Q3F23
-2%
Q1F24
Expectations
Up high single
Wins ($ millions)
250 | |||||
193 | |||||
200 | |||||
142 | |||||
150 | |||||
90 | |||||
100 | |||||
74 | |||||
50 | 52 | ||||
- | |||||
Q4F22 | Q1F23 | Q2F23 | Q3F23 | Q4F23 | |
- Q4F23 exceeded expectations
- Some strengthening in semicap demand
- Expect high single digit growth for Q1F24
- Strong F23 wins of $461M
- Q4F23 wins highlights:
- Heavy vehicle charger system
- Power grid automation control
9
PLEXUS CORP.
Market sector performance - Healthcare/Life Sciences
Revenue ($ millions) | ||||
600 | ||||
467 | 488 | 488 | ||
500 | ||||
451 | 449 | |||
400 | ||||
300
200
100
-
Q4F22 | Q1F23 | Q2F23 | Q3F23 | Q4F23 |
- Q4F23 in-line with expectations
- F23 revenue growth of 20%
- Calendar year-end inventory corrections
Q4F23 vs.
Q3F23
-1%
Q1F24
Expectations
Down low
double
Wins ($ millions) | ||
120 | ||
101 | 104 | |
100 | ||
90 | ||
81
80
61
60
40
20
-
Q4F22 | Q1F23 | Q2F23 | Q3F23 | Q4F23 |
- Healthy F23 wins of $336M
- Q4F23 wins highlights:
- Neurostimulator bladder control
- Diagnostic laboratory equipment
10
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Disclaimer
Plexus Corporation published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 08:49:10 UTC.