2013 ir day full presentation

8/10/2019 2013 IR Day Full Presentation

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INVESTOR DAY

This presentation contains forward-looking statements that are subject to certain risks and

uncertainties that could cause actual results to differ materially from those projected. Pleasesee the Companys SEC filings for a discussion of these and other risks and uncertainties.

September 12, 2013


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SAFE HARBOR

Any statements made during our conference today that are not historical in nature, such as

statements in the future tense and statements that include "believe," "expect," "intend,"

"plan," "anticipate," and similar terms and concepts, are forward-looking statements. 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 major factors that could cause actual results to differ

materially from those projected, please refer to the Companys periodic SEC filings, particularly

the risk factors in our Form 10-K filing for the fiscal year ended September 29, 2012.

The Company provides non-GAAP supplemental information. For example, our meeting todaywill reference return on invested capital and free cash flow. These non-GAAP financial measures

are used for internal management assessments because they provide additional insight into

ongoing financial performance and the metrics that are driving management decisions. For a

full reconciliation of non-GAAP supplemental information please refer to our July 17, 2013 press

release and our periodic SEC filings.

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AGENDA

9:00 Welcome Ginger Jones

9:05 Plexus Strategy Dean Foate

9:35 Leveraging the Plexus Value Stream Todd Kelsey & Steve Frisch

10:25 Healthcare/Life Sciences Market Sector Mike Tendick & Jim McCusker

10:45 Defense/Security/Aerospace Market Sector Dan Lewis & Jim Anderson

11:05 Engineering Solutions Oliver Mihm

11:30 Financial Results & Outlook Ginger Jones

11:45 Q&A

12:00 Buffet Lunch with Plexus Sr. Management

1:00 Meeting Adjournment

1:15 Depart for Tour of Chicago Manufacturing Facility (meet at main entrance)

1:30 p.m. Site Visit / Tour

3:00 p.m. Tour concludes

3:20 p.m. Return to Hotel

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PLEXUS INVESTOR DAY

RENEWEDFOCUS ON $3 BILLIONDELIVER THE FINANCIAL MODEL

Dean FoateChairman, President & CEO


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Fiscal 2013Review

PlexusStrategy

Fiscal 2014Thoughts

DEANS AGENDA

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Well short of our goals

End-market weakness & dislocations

Strong New Business Wins

Stock Performance

Fiscal 2013Review

1

A CHALLENGING YEAR

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PERFORMANCE VS. GOALS

$1,062$884

$808

$1,041

$1,229

$1,432$1,546

$1,842

$1,617

$2,013

$2,231$2,307

$2,220

-5%

0%5%

10%

15%

20%

25%

30%

35%

$0

$500

$1,000

$1,500

$2,000

$2,500

F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13E

WACC

Revenue ($M) ROIC

Enduring Financial Goals:1. Organic Revenue Growth: 15% CAGR

2. ROIC > WACC + 500bps

Assumes mid-pt Q4F13 Guidance

Fiscal 2013 results (estimate):1. Revenue Growth: -3.8%

2. Economic Spread: 190bps

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F13 ANNUAL PLAN VS. YEAR-END ESTIMATE

$2,307

$2,660$2,530

$130$117

$190

$133

$2,220

$1,800

$1,900

$2,000

$2,100

$2,200

$2,300

$2,400

$2,500

$2,600

$2,700

$2,800

F12 F13

Base Forecast

New Business F13 Plan

Aug. 2012

JNPR N/C Other Sectors F13 Street

US$Millions

9.7%

15.3%

- 3.8%

Revenue contribution of

new business won during F13Base forecast includes ramps of

new business won during F12

End-markets

Slow Ramps


F13 Guidance

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REVENUE DISLOCATIONS

Approximate $Actuals/Forecast Estimated Headwind

F12 F13 F14 F13 F14

Juniper disengagement $370M $285M $85M $285M

Coke inventory reset $200M $80M $80M1 $120M

Total Juniper & Coke $570M $365M $80M $205M $285M

Total PLXS Revenue $2307M $2220M2 $2263M3

YoY 3.4% -3.8% 1.9%

Ex: Juniper & Coke $1737M $1855M $2183M

YoY Implied Growth 6.8% 17.7%

Notes:1 Assumes Flat Revenue for Coke2 Assumes mid-pt Q4F13 Guidance3Street Consensus

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SECTOR REVENUE PERFORMANCE

F13

Sector Revenue

$M

Growth

Result $M

Growth

Result %

Networking/

Communications

$817 ($87) -9%

Healthcare/

Life Sciences

$557 $63 13%

Industrial/

Commercial

$554 ($117) -17%

Defense/Security/

Aerospace

$292 $54 23%

Plexus $2,220 ($87) -4%

HC/LS25%

I/C

25%D/S/A

13%

N/C

37%

F12

Sector Revenue

$M

Growth

Result $M

Growth

Result %

Networking/

Communications

$904 ($126) -12%

Healthcare/

Life Sciences

$494 $24 5%

Industrial/

Commercial

$671 $143 27%

Defense/Security/

Aerospace

$238 $35 17%

Plexus $2,307 $76 3%

HC/LS21%

I/C

29%

D/S/A

10%

N/C

40%

Assumes mid-pt Q4F13 Guidance10


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REGIONAL REVENUE PERFORMANCE

F13

AMER

43%

EMEA

6%

APAC

51%

Region Revenue$M

GrowthResult $M

GrowthResult %

APAC $1,130 $18 2%

EMEA $125 $28 29%

AMER $965 ($133) -12%

Plexus $2,220 ($87) -4%

F12

AMER

48%

EMEA

4%

APAC48%

Region Revenue$M

GrowthResult $M

GrowthResult %

APAC $1,112 $45 4%

EMEA $97 $5 5%

AMER $1,098 $26 2%

Plexus $2,307 $76 3%


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STRONG NEW BUSINESS WINS

TFQ

$782M

0%

5%

10%

15%

20%

25%30%

35%

40%

45%

50%

$0

$100

$200

$300

$400

$500$600

$700

$800

$900

$1,000

ofTF

Sales

NewWins

$M

TFQ Wins TFQ Wins % of TFQ Sales Qtrly Wins

Goal

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Sep 2013 Revenue Enterprise Enterprise EV/Revenue

Competitor Revenue ($M) Rank Value (EV) Rank

Hon Hai $129,457 1 $24,769 1 0.2

Flextronics $23,569 2 $4,780 3 0.2

Jabil $18,054 3 $4,950 2 0.3

Celestica $5,934 4 $1,258 6 0.2

Sanmina-SCI $5,918 5 $1,636 4 0.3

Benchmark $2,405 6 $785 8 0.3

Plexus $2,227 7 $909 7 0.4

Venture $1,924 8 $1,345 5 0.7Kimball $1,200 9 $290 9 0.2

Zollner $1,114 10

AsteelFlash Group $900 11

Fabrinet $674 12

CTS Electronics Mfg. Solutions $614 13

Creation Technologies $552 14

Enics $524 15Ducommun (LaBarge Tech) $439 16

OnCore Mfg $420 17

Neways Electronics Intl $347 18

Partnertech $340 19

Kitron $269 20

MAINTAINED 7THPOSITION

Sources: Thomson One 4 Sep 2013

Yahoo Finance 4 Sep 2013

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PLXS FISCAL YTD VS. PEERS

PLXS

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A FEW FISCAL 2013 TAKEAWAYS

Revenue contraction disappointing given strength of our plan

Juniper disengagement was a significant challenge Competitors had dislocations too; we benefited from a couple of them

Customer end-markets, forecasts

Pulled back significantly as the first half of the fiscal year unfolded

Networking/Communications was particularly challenged (70% of our forecast decline)

Coke inventory adjustment disappointing; a reality of tepid end-markets

Stabilized with a slight positive bias in the second half

New business wins were strong and support our financial model

Should deliver sequential growth throughout F14

Exiting the fiscal year Better sector balance

Lower customer concentration risk

Positioned to return to performance in-line with our financial model

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Plexus Strategy

Bulls & Bears

PLXS long-term performance

Enduring Goals

PlexusStrategy

2

DELUSIONA BELIEF HELD WITH STRONG CONVICTION DESPITE

SUPERIOR EVIDENCE TO THE CONTRARY

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PLEXUS STRATEGY

Enduring Goals

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Customer Service: highly optimized, value-add

Quality: stringent regulatory, reliability

Manufacturing: mid-low volume, agility, flexibility

Supply Chain: complex, horizontal

Footprint: regional, integrated

Financial Model: better margins, lower capital turnover

Customer Service: fit into standard service model

Quality: less stringent regulatory

Manufacturing: high volume, velocity

Supply Chain: vertical, narrow

Footprint: huge low cost scale

Financial Model: low margins, high capital turnover

Higher Complexity Lower Complexity

MARKET FOCUS

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SHAREHOLDER VALUE PROPOSITIONTHE BULLS

Growth company, gaining market share

Superior margins with a focus on ROIC that delivers Economic Profit growth Self-funded growth generates excess cash

Proper and efficient use of the balance sheet

Return excess cash to shareholders (share repurchases)

Focused, Niche StrategyEnduring Coherentunderserved markets, customer service, engineering, regulatory expertise, average

program size, financial metrics, footprint, not vertical, etc.

Value stream solutions lead to higher returns and sticker customer relationships

Market sectors offer runway for long-term growth

Management Integrity, Trust Tell it like it is in good times & in bad

Disciplined, predictable, consistent, credible

Corporate Governance

PLXS Awarded a

Premium Multiple

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VALUE PROPOSITION UNDER THREATTHE BEARS

Growth has stalled, margins have contracted

Achieves margin targets only when growth is very strong, distant past

Not delivering on ROIC target, cash cycle laggard

Strong win rate, but is PLXS buying the business?

Will margins contract further or are they permanently impaired?

Lead N/C customer, JNPR, apparently defects for cheaper prices

Other customers have defected too (Starent, Avocent)

Are all N/C customers at risk of defection?

Will winning more business in the N/C space be viewed negatively as sector is increasingly

viewed as a commodity space?

Competition pursuing growth strategies in PLXS core markets, progress evident

Some competitors are improving their margins, is this evidence they are taking share?

Are PLXS core markets defensible?

Will continuing economic malaise drive more customers to seek lower prices elsewhere?

Just how sticky are PLXS customers?

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MY PERFORMANCE RATING

PLXS

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ENDURING GOALS?

$1,062$884

$808

$1,041

$1,229

$1,461$1,546

$1,842

$1,617

$2,013

$2,231$2,307

$2,220

-5%

0%

5%

10%

15%

20%

25%

30%

35%

$0

$500

$1,000

$1,500

$2,000

$2,500

F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12 F13E

WACC

Revenue ($M) ROIC

Just 3 of 8 were golden years

Transformation Current Strategy

ROIC Goal


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Implications of 12% versus 15% Growth

Still exceeds EMS market growth expectations

Attainable, but challenging stretch goal for broader management team

Acknowledges slower end-market growth; economic environment

Lessens temptation to reach too far and drift into commodity territory Acknowledges execution costs of ramping and integrating business in our sectors

Breathing room to focus on productivity, asset utilization and financial returns

Enables better resiliency in our financial model

- Planning process centered at delivering ROIC and operating margin targets at 50% of growth

target (or 6%)

Intended Outcome:

Consistent delivery of our Financial Model

leading to stronger growth in Economic Profit

REVISING REVENUE GROWTH GOAL

Maintaining Economic Spread: ROIC > WACC + 500 bps

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Deliver Shareholder Returns

Longerterm, $3 BillionFiscal 2014

3

A FEW CLOSING THOUGHTS

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DELIVER SHAREHOLDER RETURNS

Fiscal 2014 Planning Assumptions US GDP remains weak, end-market remain tepid (consistent with 2ndhalf F13)

New business wins performance consistent with our goal

No significant revenue dislocations

Fiscal 2014 Goals That Support Shareholder Returns Deliver sequential revenue throughout the year, resulting in modest YoY growth

Operating margin performance in-line with our financial model as we exit the year

Working Capital metrics improve

Better ROIC performance delivers strong Economic Profit growth

Better margins coupled with share repurchase deliver strong EPS growth

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LINE-OF-SIGHT TO $3 BILLION

Plexus Value Position remains intact, despite recent challenges

-Strong new business wins, including share gains from the competition

- Global platform uniquely focused on mid-low volume, higher complexity products

- Focus enables better service and flawless execution for our customers

- Engineering Solutions; powerful differentiator

- Deep regulatory and compliance expertise in our chosen sectors

- Continuing to enhance the value stream

Market Sectors offer ample runway for long-term growth

Current footprint supports growth to $3B

- Complete Wisconsin consolidation project

-Guadalajara in Q3F14

Consistent & Coherent Strategy

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THANK YOU

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LEVERAGING THE PLEXUS VALUE STREAMA PATH TO $3B AT THE MODEL

Todd Kelsey, Exec. VP and Chief Operating Officer

Steve Frisch, Exec. VP Global Customer Services

September 12, 2013


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Markets &Wins

A Path to $3Bat the Model

Conclusions

AGENDA

Our Focus: Mid-Low Volume, Higher Complexity

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A PATH TO $3B AT THE MODEL

Growth

Operational Excellence Cultureretain and grow our customers Utilize go-to-market resources on the best opportunities

Optimized footprint to meet customer needs - EMEA, Mexico, Neenah

Enormous leverage possible

Margin Expansion

Enhance ends of the value stream and high margin services Engineering Solutions

Sustaining Solutions

Micro-electronics

Rapid prototyping

Productivity

Supply Chain

Manufacturing

Two goals: Growth and margin expansion.

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0.25%

0.10%

0.13%

0.07%

0.15%

0.10%

0.10%

Operating Margin

Baseline

Supply

Chain

Facility

Simplifications

Improve

Sector Mix

ENG High

Growth

Micro-E Sustaining

Solutions

MFG Fixed

Leverage

Operating Margin

Goal

OPERATING MARGIN OPPORTUNITIES

Our 5% operating margin target is sustainable!

*Margin improvements are estimates

Long Term Opportunities

F14 Opportunities

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STREET CONSENSUS EMS GROWTH

Top Eight EMS Public Companies

2013 indicates revenue decline 2014 indicates slight revenue growth

$170,000

$175,000

$180,000

$185,000

$190,000

$195,000

$200,000

$205,000

2011 2012 2013E 2014E

Source: ThomsonOne Detailed Estimates on

FLEX, JBL, SANM, CLS, BHE, Hon Hai, Venture

and PLXS on 08/21/13

8.2% Y/Y

(3.7)% Y/Y 5.7% Y/Y

3% CAGR over 3 years

Analyst estimates somewhat conflict with market data.

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66.4 72.780.4 89.5

100.2 111.4

203.8211.8

223.7

236.9

258.5

278.5

$0

$50

$100

$150

$200

$250

$300

2011 2012 2013 2014 2015 2016

Revenue($M)

Plexus Sectors Overall Market

EMS MARKET GROWTH

EMS expected to grow 6.5% with stronger growth in our sectors.Source: IDC 2011, 2012

Notes: Tier 1 EMS only, excludes ODM players

11 16 Overall Market CAGR: 6.5 %

CAGR 3.9%

CAGR 10.9%

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$30 $10 $14 $9

$105

$33

$67 $68

$208

$100

$268

$204

$0

$50

$100

$150

$200

$250

$300

$350

Networking/

Communications

Healthcare/

Life Sciences

Industrial/

Commercial

Defense/

Security/

Aerospace

Billions

OUR CHOSEN MARKETS

Plexus Addressable Market vs. Market Served by EMS

20%29% 30% 14%

Plexus Addressable Market

EMS Market Penetration

Total Available Market

These markets are substantial and tightly align with our strategy!

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G O O S


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GROWTH RELATIVE TO PEERS

Sources: Thomson One 28 Feb 2013

C13 Wall Street Estimates

20.82% -2.08% -5.28% -1.88% -5.45% N/A4.34%5 yr - CAGR

Only PLXS, HonHai & JBL above pre-Great Recession peak revenue

7.82%-7.25%

Hon Hai Flextronics Jabil Circuit Sanmina-SCI Celestica Benchmark Plexus Venture Zollner

C07 $48,343 $33,376 $12,435 $10,318 $8,070 $2,916 $1,624 $2,571 $901

C08 $56,014 $33,141 $12,794 $6,849 $7,678 $2,590 $1,839 $2,677 $1,050

C09 $50,240 $23,753 $11,390 $5,237 $6,092 $2,089 $1,591 $2,349 $837

C10 $100,912 $27,761 $14,403 $6,603 $6,526 $2,402 $2,148 $2,347 $1,056

C11 $116,311 $29,920 $16,761 $6,442 $7,213 $2,553 $2,195 $1,962 $1,198

C12 $132,205 $24,670 $17,463 $6,086 $6,507 $2,468 $2,308 $1,979 $0

C13 $144,196 $22,753 $18,642 $5,943 $5,854 $2,355 $2,274 $2,023 $0

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

N/A

While results are short of goal, PLXS is a growth leader.

9.07% -2.35% -10.03% -4.57% 2.22% N/A-1.47%1 yr - Growth 6.75%-7.77%

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OPERATING MARGIN RELATIVE TO PEERS
http://www.zollner.de/de/funktionen/home.html


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OPERATING MARGIN RELATIVE TO PEERS

Plexus continues to generate industry leading margins

Sources: Thomson One 28 Feb 2013

Hon Hai Flextronics Jabil Circuit Sanmina-SCI Celestica Benchmark Plexus Venture Zollner

C08 4.40% 0.90% 2.40% 2.50% 3.30% 3.20% 5.60% 8.40%

C09 5.60% 0.50% 1.40% 1.20% 3.50% 2.90% 3.30% 5.30%

C10 2.90% 0.00% 2.70% 3.00% 3.50% 4.00% 4.90% 6.60%

C11 2.40% 2.20% 2.70% 3.60% 3.80% 2.20% 4.50% 6.20%

C12 2.70% 1.90% 3.60% 3.10% 3.20% 4.00% 4.40% 7.20%

0%

1%2%

3%

4%

5%

6%

7%

8%

9%

5%

Target

Data

N/A

PLXS is a margin leader, but we are committed to improvement

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http://www.zollner.de/de/funktionen/home.html


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WINS MODEL

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WINS TO FUEL GROWTH


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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

ofTF

Sales

NewWins$M

TFQ Wins TFQ Wins % of TFQ Sales

Trailing Four Quarters (TFQ) of New Manufacturing Wins

Qtrly Wins

WINS TO FUEL GROWTH

Goal

Goal adjusted to 25% to support CAGR of 12%

TFQ above goal for past 2 years

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QUARTERLY WINS PERSPECTIVE


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QUARTERLY WINS PERSPECTIVE

Quarterly Wins is a very short-term measure

Trailing Four Quarters (TFQ) is a better measure of future potential

Manufacturing Wins by Sector

$0

$20

$40

$60

$80

$100

$120

$140

$160

MFGWinsbySector($M)

HC/LS I/C N/C DSA

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IMPACTS TO WINS MODEL


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Well understood and quite predictable

We have little impact, but can adjust actions appropriately


Conversion of Wins: Contributing Factors

Price

Reductions

End of Life

Business

Replacement

Business

The

Economy

Revenue

Dislocations

5% 5% 20 - 30% of Wins1% GDP change

5% Revenue Impact

Significant Disengagements &

Forecast Reductions

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U S GDP IMPACT ON GROWTH


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U.S. GDP IMPACT ON GROWTH

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12

Legend

> 2.5% Green

02.5% YellowNeg Red

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Well understood and quite predictable

We have little impact, but can adjust actions appropriately

More within our control and must be managed


Conversion of Wins: Contributing Factors

Price

Reductions

End of Life

Business

Replacement

Business

The

Economy

Revenue

Dislocations

5% 5% 20 - 30% of Wins1% GDP change

5% Revenue Impact

Significant Disengagements &

Forecast Reductions

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SIGNIFICANT REVENUE DISLOCATIONS


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SIGNIFICANT REVENUE DISLOCATIONS

Disappointments

F12 F13 F14F13

Headwind

F14

Headwind

Juniper $370M $285M $0 $85M $285M

Coke *$200M *$80M *$80M $120M

Totals$570M $365M $80M

$205M $285M

*Indicates numbers are rough estimates

Impact: F13 growth stalled; F14 growth muted

Lost opportunity: F14 could have generated high teens percentage growth

Management focus area: Operational Excellence Culture

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WHAT DOES ALL THIS TELL US?


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WHAT DOES ALL THIS TELL US?

Win Metrics

Quarterly wins numbers will have volatility

Trailing Four Quarters provides a more stable view

There is a relationship between U.S. GDP and our growth

Likely a similar, but less pronounced, relationship to European economic growth

Our growth is not significantly correlated or dependent on GDP like some cyclical

industries

In a low GDP environment, growth profile shifts to a dependence on new wins

Organic growth of existing programs will be muted, pressuring margins

Economic stress can hasten new outsourcing

Pricing will be more competitive

Reducing customer disappointments is critical!

We must win intelligently, nurture wisely, proactively manage customer risk

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Growth

Margin Expansion

A PATH

to $3B

2

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GROWTHFOCUSED ON OUR CUSTOMERS AND OPTIMIZING THE FOOTPRINT

47

OPERATIONAL EXCELLENCE CULTURE


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Collaboration throughout Plexus

Think Customer first

Measure issues based on our

expectations of exceptional performance

Communicate problems and solve as a team

Proactively identify/manage customer risk

Goal based account strategies

Guiding Principles

Sector

Teams

OPERATIONAL EXCELLENCE CULTURE

Plexus SuccessRevenue Growth, ROIC, $$$

Customer SuccessOn Time Delivery, High Quality, Fair Price

EMEAAMEREngineering

SolutionsAPAC Supply Chain

Sites SitesSites

One Plexus committed to Customer Service Excellence 48


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EFFICIENT USE OF GO-TO-MARKET

RESOURCES

49

MANUFACTURING WINS VS REVENUE GROWTH


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MANUFACTURING WINS VS. REVENUE GROWTH

Acceptable wins performance from all 4 sectors

Strong growth in HC/LS, I/C and D/S/A

Despite strong wins, N/C contracts over past 3 years

3 of 4 sectors performing very well in the market

*F13 Consensus

$0

$200

$400

$600

$800

$1,000

$1,200

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

F08 F09 F10 F11 F12 *F13

TotalRevenuebySector($M)

Manu

facturingWinsbySector($M)

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SECTOR LEVERAGE


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SECTOR LEVERAGE

Go-to-market resources must be deployed in the areas that will most likely lead to

PLXS success

More selective with regards to Networking business

Emphasis on differentiated Industrial/Commercial business

Outsized growth in HC/LS and D/S/Acombined target 50% of PLXS

More consistent utilization of Engineering Solutions

Better use of go-to-market resources, resulting in higher productivity and

accelerated growth

Expand focus on the highest complexity marketsIndustrial/

Commercial

25%

Networking/

Communications

25%

D/S/A20%

Healthcare/

Life Sciences

30%

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INVEST IN D/S/A GROWTH


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INVEST IN D/S/A GROWTH

Put in place plans to achieve 30+% CAGR.

Create Limited Liability Company to support investigation into classified Defense

business

Engineering Solutions certifications to support product development

AS 9100, DO 254 and DO 178 certifications

Invest ahead of production ramp to ensure quality in early stages

Develop Quality User group to drive best practices across all Aerospace

manufacturing sites

Implement Aerospace specific manufacturing processes (conformal coat, class 3

solder, etc.) in Centers of Excellence

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GLOBAL FOOTPRINT

53

PLEXUS GLOBAL LOCATIONS


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PLEXUS GLOBAL LOCATIONS

An Optimized footprint

supporting our customers end-markets

F14 expansion in Guadalajara Leveraging EMEA investment 54

GUADALAJARA EXPANSION


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GUADALAJARA EXPANSION

Construction commenced August 2013

World-class resources and business

environment

Plexus quality and operational

excellence driving lowest landed cost

A growth engine in the AMER region

Expected completion Q3F14

265 K ft2 leased facility

in Guadalajara Technology Park

Enhanced low-cost AMER solutions

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EMEA

56

THE EMEA MARKET REGIONAL PERSPECTIVE


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THE EMEA MARKET REGIONAL PERSPECTIVE

Economic challenges causing evaluations of EMS strategy

Shifts in the competitor landscape creating opportunities

Factory outsource opportunities are an increasing strategic focus for companies

Mid size customers in Western Europe are seeking low cost country solutions(EMEA and/or APAC)

Increasing interest in Darmstadt Design Center; growing capacity combined with

greater propensity towards engineering outsourcing

Changes to strategies are creating opportunities for Plexus!

57

PLEXUS CAPABILITY IN THE MARKET


58/131

PLEXUS CAPABILITY IN THE MARKET

Livingston, Scotland

Kelso, Scotland

Oradea, Romania

Darmstadt, Germany

ENGINEERING SOLUTIONS MANUFACTURING SOLUTIONS

Plexus has a full complement of Product

Realization capability in EMEA

Kelso

Livingston

Oradea

Livingston

Design Center

Darmstadt

Design Center

OradeaDesign Center

Livingston, Scotland

Oradea, Romania

58

GROWTH ENABLERS IN EMEA


59/131

GROWTH ENABLERS IN EMEA

New Oradea facility opened in May 2013

Transition Completed in June 2013 Ramping new programs from large global customer

New Livingston location opened in March 2013

Enhances the UK Product Realization offering

Increased high quality white space

Darmstadt Design Center fully functional

Capability and capacity in place

First projects successfully completed

59

ENABLERS BEYOND THE FACILITIES


60/131

ENABLERS BEYOND THE FACILITIES

Leadership Team

UK and Romania Sourcing Organizations

Expanded Regional Capabilities in Place

Business Development

Customer Management

EMEA Contracts

EMEA Costing/Pricing

Leveraging the Global Plexus

Infrastructure in Place Beyond the Buildings

60

EMEA REVENUE GOALS VS. CAPACITY


61/131

EMEA REVENUE GOALS VS. CAPACITY

EMEA Revenue vs. Capacity

Efficiency Improvements

increases capacity

Leveraging the opportunities and investments

CAGR >30%

61


62/131

MARGIN EXPANSIONLEVERAGING OUR VALUE STREAM AND DRIVING PRODUCTIVITY

62

LEVERAGING THE VALUE STREAM


63/131

LEVERAGING THE VALUE STREAM

Opportunity for better returns and stickier relationships on both ends of the value stream

l Conceptualize l Design l Commercialize l Manufacture l Fulfill l Sustain l

ENGINEERING SOLUTIONS

SUSTAINING SOLUTIONS

MANUFACTURING SOLUTIONS



Broad based Engineering Solutions is a core competency

Higher Margin Manufacturing Services: Micro-electronics, Prototyping

Opportunity to differentiate in Sustaining Solutions

63

CAPABILITY EXPANSIONS


64/131

Final element of the Product Realization Value Stream

Repair, refurbishment, replenish, revitalization

Regional centers of excellence

Run as a standalone business

Invest in equipment and facilities

Engineering and Manufacturing opportunity

Boise Center of Excellence

Re-engineer and expand our service offering

Entrepreneurial business based on speed, agility, execution

Lead: Livingston; Follow: San Jose, Neenah

Initiatives

SustainingSolutions

Micro-Electronics

RapidPrototyping

CAPABILITY EXPANSIONS

Plexus Impact

500-800 basis pointhigher margin

500 basis pointhigher margin

200-500 basis pointhigher margin

StickyRelationships

64

MANUFACTURING PRODUCTIVITY CAPABILITIES


65/131

Staffing per focus factory

Cross-training

More replacements per SMT line

Reduced number of SMT lines

Low cost automated optical inspection

Alternate transition scenarios

Regional versus global support

Flexible HLA factory

Alternative focus factory

Plexus Impact

High laborcontribution

margin

Delayed capitalexpenditures

ReducedSG&A

Increasedcapacity

Initiatives

HumanCapital

Equipment

Process

MANUFACTURING PRODUCTIVITY CAPABILITIES

65

CAPACITY THROUGH PRODUCTIVITY


66/131

$M

$500M

$1,000M

$1,500M

$2,000M

$2,500M

$3,000M

$3,500M

$4,000M

$4,500M

$5,000M

F12 F13 F14 F15 F16 F17

Fiscal Year

PLXS

Revenue Future Max Capacity Current Max Capacity (flat rev/sq ft)

CAPACITY THROUGH PRODUCTIVITY

Ability to grow beyond $3B with current footprint!

Capacity

Increase

40% capacity increase through improved processes and equipment

Capital Expenditures reduce to $65M - $75M annually over next several years

Note: F13 and F14 represent analyst estimates

F15 F17 represent 12% growth

66

INVESTING IN SUPPLY CHAIN


67/131

Strong global leaders

Alignment to customers and sectors

Accountability defined

Aggregation of spend and contracting process Regional vs. global ownership of commodities

Migrate spend to Plexus Preferred Suppliers

Global best pricing

Drive productivity

Strong alignment between Supply Chain andCustomer Management

Kinaxis and JDE 9.1 deployment

Improve forecast accuracy

Improve resource utilization

Initiatives

Structure

Sourcing Strategy& Leadership

Material Costing

DemandManagement &

Planning

Plexus Impact

Standardizedwork

Efficientdeployment

20 - 30 basis points

2 days of inventory

10 percentagepoint

Win rateimprovement

4 days of inventory

Less materials labor

67

SEAMLESS TOOLSET


68/131

Supply Chain

QuoteWin

Global, integrated platform for customers and employees.

EnterpriseResource

PlanningBundle

Customer Real Time Data

Human Resources

Engineering Solutions

68

PLEXUS CASH CYCLE TREND
http://www.zycus.com/


69/131

-

10

20

30

40

50

60

70

80

90

100

Days

Fiscal Quarters

Inventory Days A/R Days A/P Days Customer Deposit Days Net Cash Cycle Days

Q1F10 Q2F10 Q3F10 Q4F10 Q1F11 Q2F11 Q3F11 Q4F11 Q1F12 Q2F12 Q3F12 Q4F12 Q1F13 Q2F13 Q3F13

Inventory Days 88 89 89 90 93 89 87 85 87 87 81 78 92 87 78

A/R Days 50 45 47 51 51 45 49 48 46 47 47 49 50 55 54

A/P Days 69 69 61 66 62 57 56 57 57 62 59 58 61 61 54

Customer Deposit Days 6 5 5 5 5 5 6 6 6 6 6 6 7 17 19

Net Cash Cycle Days 63 60 69 70 78 71 75 70 70 66 63 63 74 64 59

A focused effort by Supply Chain, Manufacturing and Customer Management!69


70/131

FINAL THOUGHTS

70

A HEALTHIER PORTFOLIO


71/131

Careful investment has resulted in a stronger portfolio

Strong growth from D/S/A, I/C and HC/LS

Less dependence on the volatile N/C space

Goal of 50% HC/LS and D/S/A achievable due to Plexus uniquecapabilities

Healthcare/

Life Sciences26%

Future Target: $3B+

Delivering a unique portfolio.

Industrial/

Commercial

27%

Industrial/

Commercial

25%

F08: $1.8B

I/C

16%

D/S/A

10%

HC/LS

21%

Network/

Comm

53%

F14: ?

D/S/A

16%Networking/

Communications

32%

Networking/

Communications

25%

D/S/A

20%

Healthcare/

Life Sciences

30%

71

OPERATING MARGIN OPPORTUNITIES


72/131

0.25%

0.10%

0.13%

0.07%

0.15%

0.10%

0.10%

Operating Margin

Baseline

Supply

Chain

Facility

Simplifications

Improve

Sector Mix

ENG High

Growth

Micro-E Sustaining

Solutions

MFG Fixed

Leverage

Operating Margin

Goal

Our 5% operating margin target is sustainable!

*Margin improvements are estimates

Long Term Opportunities

F14 Opportunities

72

A PATH TO $3B AT THE MODEL


73/131

Growth

Strong growth track record, supported by sustained wins Process enhancements to address risk in customer base and leverage Operational

Excellence Culture

Enhanced footprint with strategic, new geographies

Capacity is in place

Margin Expansion

Industry leader

Committed to 5% operating profit margin

Expanding differentiated, higher value service offerings

Supply Chain and Manufacturing improvements drive productivity

Capacity is in place which will drive leverage

PLXS at $3B is achievable!

73


74/131

THANK YOU

74


75/131

HEALTHCARE/LIFE SCIENCES SECTORMike Tendick, Market Sector Vice President

Jim McCusker, Customer Management Vice President

TOP FIVE INDUSTRY TRENDS DRIVING STRATEGY


76/131

Trends

Favorable developed market demographics

with aging populations

Impact

Market growth will be strong for the next 10

plus years

Large emerging market populations with

increased access to healthcareProjected OEM revenue growth rate in

emerging markets 15% - 20%

Increased focus on preventative healthcare

and early diagnosticsOEMs focused on technology driven

personalized healthcare management

Do more with less focus; providing state-of-

the-art healthcare at lower cost

Industry focus on lower cost devices , their

effectiveness, utilization, and patient

outcomes

Increasing global medical device regulatory

and quality standardsRe-evaluation of product launch strategies

and increased focus on risk

76

HEALTHCARE/LIFE SCIENCES DEVICE COMPANIES


77/131

Healthcare/Life Sciences OEMs are focused on increasing top line revenue while

preserving bottom line profitability

Top line (growth) drivers

Mergers and acquisitions

Expansion into emerging markets

Bottom line (profit) drivers

Organizational restructuring

Footprint rationalization

Increasing focus on core competencies

The Plexus Healthcare/Life Sciences strategy is designed to take

advantage of these drivers

77

PLEXUS HEALTHCARE/LIFE SCIENCES SOLUTION ADVANTAGE


78/131

Single integrated, accountable partner

Predictable time to market

Revolutionary product development capabilities

Unmatched breadth and depth of experience

Expands OEM market share; new products and emerging markets

New product introduction and clinical trial builds

Optimized manufacturing solutions

Proven quality and regulatory systems

Improved time to market increases OEM success

With over 30 years of experience in providing engineering and manufacturing

solutions to Healthcare/Life Science OEMs, Plexus is a differentiated partner

PLEXUS PRODUCT REALIZATION VALUE STREAM


78

OUR STRATEGY IS WORKING


79/131

The Healthcare/Life Sciences Sector is growing because Plexus is providing our

customers innovative solutions to meet market trends and challenges

$0

$100

$200

$300

$400

$500

$600

F05 F06 F07 F08 F09 F10 F11 F12 F13E

Healthcare/Life Sciences Revenue

E = Estimate

79



80/131

$0

$5

$10

$15

$20

$25

$30

F05 F06 F07 F08 F09 F10 F11 F12 F13E

Average Revenue Per Customer

Stable customer base with consistent growth

Plexus provides both manufacturing and engineering solutions to 90% of our largest

Healthcare/Life Sciences customers creating true long term partnerships

Average revenue per customer has increased from $13M in F05 to over $25M in F13

E = Estimate

80

BALANCED CUSTOMER PORTFOLIO


81/131

58%23%

14%5%

F05

33%

34%

18%

15%

F12

30%

30%

20%

20%

F17E

Imaging Monitoring Therapeutics Life Sciences

Continued focus on providing innovative engineering and manufacturing

solutions has provided Plexus with a balanced customer and product portfolio

81

HEALTHCARE/LIFE SCIENCES SUMMARY


82/131

Regarded as the leader in providing Product Realization services to

Healthcare/Life Sciences OEMs

Execution of best-in-class engineering and manufacturing solutions solidify

long term customer relationships

Current customer growth, new customer acquisition, and portfolio balancing

drives financial stability and revenue growth

82


83/131

THANK YOU

83


84/131

DEFENSE/SECURITY/AEROSPACE SECTOR

FOCUS: AEROSPACE SUB-SECTOR

Daniel Lewis, Market Sector Vice President

Jim Anderson, Customer Management Vice President

TOP FIVE INDUSTRY TRENDS DRIVING OUR AEROSPACESTRATEGY


85/131

STRATEGY

Trends Impact

Market growth will be strong for the next 10

to 20 years

Aerospace continues in enterprise

improvements and unified company

strategies

Maturing industry will create increased

outsourcing opportunities

Increase in aircraft production could strain an

industry with the most complex supply chain

Supply chain solutions and localization in low

cost countries will improve our positioning

long term

Industry transitioning from development

cycle to prolonged production cycleWe benefit by being in the right place and on

the right aircraft platforms

Market is forecasting approximately 37,000new aircraft deliveries in the commercial

aircraft market 2012-2030

Well positioned with market leaders

continue execution to increase market share

Aircraft retirements and increase in oil prices

drive the need for more fuel efficient aircraft

85

AEROSPACE INDUSTRY TRENDS


86/131

Aerospace OEMs are focused on increasing top line revenue while preserving

bottom line profitability

Top line (growth) drivers Commercial aircraft install base expected to double over the next two decades

Aircraft backlog now exceeds 8,000 aircraft and growing

Business jet market is starting to recover as corporate profits

and financial markets improve

Growing demand for more fuel efficient aircrafts

Bottom line (profit) drivers Global competition has emerged to take advantage of growing market -

Brazil, China, Japan, and Russia

Increased production rates require fundamental shifting of culture and organizational

behavior away from development and toward execution across the supply chain

Global expansion in emerging markets are the primary drivers of growth in theaerospace industry, accounting for half of the combined Boeing/Airbus backlog

Superior execution will continue to differentiate Plexus

86

PLEXUS AEROSPACE STRATEGY


87/131


INITIAL CUSTOMER ENGAGEMENT

DEVELOPING RELATIONSHIPS ALONG VALUE STREAM

l Conceptualize l Design l Commercialize l Manufacture l Fulfill l Sustain ll Conceptualize l Design l Commercialize l Manufacture l Fulfill l Sustain l

Currently, Plexus engages with PCBA work and then extends our service offerings

both to the left and right on the Product Realization Value Stream

PCBA/HLANPI SHIP

Penetrate new divisions and/or locations of our existing customers Exploit our engineering capabilities - continue to embed, improve stickiness,

expand our service offering

Defend our business through industry leading execution

Plexus is the leading Aerospace partner

87

PLEXUS AEROSPACE GROWTH GOALS


88/131

Continued focus on providing innovative engineering and manufacturing

solutions has provided Plexus consistent revenue growth

$25$48

$65

$99

$142$155

$193

$237

$284

$341

$410

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

F07 F08 F09 F10 F11 F12 F13E F14E F15E F16E F17E

$ MillionsAnnual Plexus Revenue of Top 10 Aerospace Customers

E = Estimate

88

PLEXUS AEROSPACE EXPERIENCE


89/131

Starter Generator

Bleed Air System

Engine Controls

Emergency Oxygen Control UnitsPassenger Seating Control Unit

Beverage & Oven Electronics

Cargo Handling

Sensors

Auxiliary Power Units

Emergency Locator Transmitter

Generator Control

Cockpit Avionics

Ground Proximity

Weather RadarEnvironmental Controls

Collision Avoidance

Electronic Flight Bag

Flight Control Processor

Display SystemsStall Warning Computer

Braking Control

Product Experience

Cabin Pressure Control System

In-Flight Entertainment

Cabin Lighting Systems

Airframe Experience

737/ 767/ 777/ 787

A320/ 330/ 350/ 380Embraer multiple models

Gulfstream multiple models

Bombardier multiple models

Cessna multiple models

Dassault multiple models

Eurocopter

UH- 60

AH-64

CH-47

P-8

B1C-5, C-17, C-130

F-16, F-18, F-35

COMAC 919

Fueling Systems

Refueling Systems

Actuation Systems

Liquid Cooling Systems

Inerting Systems

89



90/131

Our business is growing in an expanding marketplace Increasing revenue per customer: 32% CAGR

Expanding our engagements to meet our customers changing needs Leveraging the execution dividend to further grow our business

Successfully winning business on the new Airframes (Boeing 787, 737 and Airbus

A350, A380)

Plexus value proposition is aligned with the marketplace, proven track record ofquality/regulatory successes

AS9100, NADCAP

FAR 145 (Aerospace Repair Services)

Engineering Solutions delivering value to our customers

90

SUMMARY


91/131

The Market leader in Aerospace electronics outsourcing.

Protect and Grow our base Aerospace business.

Continue to grow with our customers and industry.

Persistent focus on operational performance.

Assure alignment with needs of the industry.

91


92/131

THANK YOU

92


93/131

ENGINEERING SOLUTIONS STRATEGYOliver Mihm, Senior Vice President - Global Engineering Solutions

OPENING THOUGHTS


94/131

Full Product Realization Value Stream continues to deliver results

Unmatched Product Realization capabilities

Optimized Commercialization services create customer value

Track record of delivering value establishes repeat customers

Global resources improve customer time to market

Planned investments to further differentiate Plexus as a world leader

Expanding footprint/capabilities to support EMEA regional growth

Regulatory/process additions in Aerospace

Capability investments in Life Sciences

94


95/131

Our Value Proposition

Our Strategic Intent

Engineering

Solutions

1

95

OUR VALUE PROPOSITION


96/131


PLEXUS PRODUCT REALIZATION VALUE STREAM

Stickiest Service

Occasional pricing power

Enables PLXS-MFG growth

Highly competitiveLower returns

Little pricing power

TRADITIONAL EMSENGINEERING SOLUTIONS

Plexus Engineering Solutions is uniquely positioned to assist OEMs with optimizing

the Time-To-Market and Total Cost of Ownership of their products.

96

ACCELERATING TIME TO MARKET


97/131

Automated lecture capture system that

enables playback from multiple hardware

platforms

The move from design to pre-production to production went very well. I am quite impressed

that there were no material issues and the minor ones that did come up were resolved in

tight coordination with our team.

Total cost of ownership is a very important element of our business... Plexus is now helping us

reduce BOM costs in more material ways so total MFG costs can come down over time.- Chief Operating Officer, Customer

Project Spotlight: Lecture Capture System

Startup company with critical challenge to meet market

window

Why did we win? Ability to quickly leverage complete

Product Realization value stream

Ramped and integrated resources across engineering,

supply chain and manufacturing

Reduced total Time-To-Market from 24 to 12 months

97

INTEGRATED GLOBAL LOCATIONS


98/131

Penang Design CenterBoulder Design Center

Raleigh Design Center

Neenah Design Center

Livingston Design Center

Darmstadt Design Center

Engineering Solutions

Manufacturing Solutions

Global Sourcing

Footprint allows us to leverage global teams to meet customer needs, wherever they are located

Locations operate under the same regulatory compliant quality system

Engineers efficiently execute with the same tools, processes and best practices

98

LEVERAGING GLOBAL RESOURCES


99/131

Power supply for sub-sea Oil

& Gas exploration that

communicates with surfaceequipment

Project Spotlight: Sub-sea Power Supply

Global supplier of Oil & Gas solutions with critical deliverable to

their customer

Why did we win? Delivered credible plan to achieve required

design/prototype milestones

Initial phase: Conceptual study and architecture report

Novel architecture solution exceeded Customer expectations

Commitment to aggressive schedule resulted in award for balance

of effort despite lower priced competition

Utilized engineering resources across five Design Centers

Fantastic work! I was very impressed with tight control of the time and resources and ability to

engage the team located in different locationsthis indicated not just good projectmanagement, but very good structure and systems in the background.

- Program Manager, Customer

99

ESTABLISHING REPEAT CUSTOMERS


100/131

The culmination of theprojectspeaks volumes to the hard work and dedication of the

entire Plexus team: Neenah, Raleigh, and Chicago. Plexus accepted the challenge and

demonstrated why they are The Product Realization Company.- Vice President, Customer

Project Spotlight: Medication dispensing system

Global health care delivery solutions company

Initial engagement began in F08 with a Time-To-Market challenge

Why did we win? Ability to quickly leverage complete Product

Realization value stream

Previous partner failed to design a viable product

Ability to meet aggressive schedule and ensure customers

commitments to Wall Street were met

An on-going partnership:

Modular design enabled product configurability and expansion options

Original project led to seven substantive projects since 2008including

New tray types and accessories to meet market demands

Product cost and performance improvements

Ongoing sustaining engineering support

Medication dispensing and

management system

100

ENGINEERING SOLUTIONS STRATEGIC INTENT


101/131

Generate Profitable Revenue We generate profit to enable investments in growth, meet our financial goals, and generate

shareholder value

Enhance the Plexus Brand We differentiate Plexus in the market by providing innovative, end-to-end solutions to

challenging problems We attract customers via a team of highly skilled engineers utilizing state-of-the-art tools,

processes, and capabilities

Create Customer Value We support our customers' objectives of timely introduction of optimized products into the

global marketplace by efficiently developing and transitioning world-class products and testsystems into Plexus Manufacturing Solutions

Develop Strong Talent We enable growth while maintaining a culture of customer service excellence through the

development of lean-minded business and technical leaders

101


102/131

Aerospace Regulatory Compliance

Life Sciences Investment

Planned

Investments

2

102

AGGRESSIVELY GROW ENGINEERING SOLUTIONS


103/131

Penang

Design

Center

Driving for aggressive growth in Engineering solutions Revenue

Substantial investments in Darmstadt & Livingston sites

Developing expanded capabilities

Aerospace and Life Sciences subsectors

Considering expanded Test Development offering

Recognized Benefits

Timely introduction of optimized products

Manufacturing production revenue creation

Customer relationship development and stickiness

Commercialization and Sustaining support for customer engineering teams

103

AEROSPACE REGULATORY COMPLIANCE


104/131

What It Is and Why It Is Important

Governs design of commercial and military Aerospace electronics

Becoming industry standard; now required by Boeing and Airbus

Fully adopted by Honeywell, GE Aviation, Goodrich, etc

Enabler for larger full Value Stream projects

Significant growth outlook in Aerospace

To capture additional business, we are investing in our internal processes and

Quality System:

AS9100: Aerospace Engineering and Manufacturing Quality Mgmt System

DO-254/178: Guidance for Complex HW and SW Development

Additional regulatory compliance will be an enabler for revenue growth in

Aerospace sub-sector.

104

LIFE SCIENCES CAPABILITY EXPANSION


105/131

Life Sciences is an ideal fit for Plexus high-mix, mid to low-volume strategy.

What It Is and Why Its Important

Analysis of DNA or proteins to diagnose diseases or conditions, increasingly

using automation

Key market growth area due to technology gains and demand for point-of-care

devices

Complex products requires significant engineering effort

Maximizing our Healthcare/Life Sciences Potential

Plexus is a global leader in medical device design

Investing in our Life Science design capabilities Specifically In-Vitro Diagnostics/Molecular Diagnostics

Leveraging our existing strength with targeted additionsto capabilities, partnerships, facilities and equipment

105


106/131

Summary ThoughtsSummary

4

106

SUMMARY THOUGHTS


107/131

Our ability to deliver value for our customers continues to ensure a high levelrepeat business and new business acquisition

Our focus on Time-to-Market and Total Cost of Ownership ensures a win-win

dynamic with our customers

Continued investments in our offering ensure future growth and competitive

differentiation

107


108/131

THANK YOU

108


109/131

FINANCIAL RESULTS AND OUTLOOKGinger Jones, Sr. Vice President & CFO

September 12, 2013


110/131

Plexus

FinancialModel

Measures ofSuccess

CapitalAllocation

LookingToward $3B

AGENDA

110


111/131

5-5 Model

Cash Cycle Days

Free Cash Flow

PlexusFinancial

Model

1

111

RECENT QUARTERLY FINANCIAL RESULTS


112/131

*Excluding Q4F12 Valuation Allowance

Summary Income Statement ($millions, except EPS)

Cash and short-term investments $ 285.6Total debt $ 261.7

Total debt/equity ratio 38.5%

Available Credit Facility $ 250.0

Strong Balance Sheet ($ Millions)(as of June 29, 2013)

Confirming Q4F13 Revenue Guidance of $545M- $575M

Increasing diluted EPS Guidance to $0.66 to $0.70

Cash Conversion Cycle Q3 F12 Q2 F13 Q3 F13

Days in Accounts Receivable 47 55 54

Days in Inventory 81 87 78

Days in Accounts Payable (59) (61) (54)

Days in Cash Deposits (6) (17) (19)

Annualized Cash Cycle 63 64 59

Cash Conversion Cycle

Q3F12 Q4F12* Q1F13 Q2F13 Q3F13

Sales $608.8 $594.8 $530.5 $557.8 $571.9Gross Profit 57.4 9.4% 56.2 9.4% 51.2 9.7% 52.0 9.3% 55.5 9.7%

SG&A 30.1 4.9% 28.9 4.9% 29.7 5.6% 28.8 5.2% 30.3 5.3%

Op Inc. 27.3 4.5% 27.3 4.6% 21.5 4.1% 23.2 4.2% 25.2 4.4%

Net Inc. $23.5 $23.5 $16.6 $18.0 $23.2

112

PLEXUS 5-5 FINANCIAL MODEL


113/131

5-5 financial model

5% Operating Margin Target

ROIC 500 basis points over WACC (11% for F14 or 16% ROIC target)

Focus is not on out-performing this model, focus is on consistently delivering themodel with moderate growth (6%, or 50% of growth target)

While we

Invest in new capabilities and footprint

Manage ramp-up of programs

Consider strategic acquisitions

Financial modeling supports that the 5-5 model is achievable through $3 billion inrevenue

We believe we will achieve this model as we exit F14

113

FINANCIAL RESULTS: CASH CYCLE DAYS


114/131

Cash Conversion Cycle Q4F10 Q4F11 Q4F12 Q3F13

Days in AR 51 46 49 54

Days in Inventory 90 86 78 78

Days in AP (66) (57) (58) (54)

Days in Cash Deposits (5) (5) (6) (19)

Annualized Cash Cycle 70 70 63 59

Significant improvement in cash cycle days; current levels of investment in cash

cycle are sustainable as we grow

114

WORKING CAPITAL COMPARISONS


115/131

Accounts Receivable Days Inventory Days

Accounts Payable Days Cash Cycle Days

Source: Company Filings

Note: Cash cycle days = A/R Days + Inv. Days A/P Days-Cash deposits

BHE : 70

CLS : 42

FLEX : 39

JBL : 21

PLXS : 54

VENT : 73

SANM : 55

20

30

40

50

60

70

80

90

Q4F11 Q1F12 Q2F12 Q3F12 Q4F12 Q1F13 Q2F13 Q3F13

BHE : 58CLS : 55

FLEX : 53JBL : 53

PLXS : 78

VENT : 96

SANM : 53

20

30

40

50

60

70

80

90

100

110

120


BHE : 49

CLS : 60

FLEX : 72

JBL : 70

PLXS : 54VENT : 56SANM : 60

30

40

50

60

70

80


BHE : 79

CLS : 38

FLEX : 19

JBL : 4

PLXS : 59

VENT : 113

SANM : 48

0

10

20

3040

50

60

70

80

90

100

110

120

130

140


115

FREE CASH FLOW


116/131

With better working capital management, have more consistently generated

significant free cash flow, while we have invested for future growth

F14 free cash flow improves on better margins and lower capital expenditures, while

supporting modestly higher dollars of working capital investment

F09 $113 million

F10 ($73 million) usage of cash

F11 $88 million

F12 $94 million

F13 est. $5560 million

F14 est. $7080 million

116


117/131

Shareholder Value Proposition

Economic Profit Focus

Growth and Value Creation

Measures of

Success

2

117

SHAREHOLDER VALUE PROPOSITION


118/131

Growth company, gaining market share

Superior margins with a focus on ROIC that delivers Economic Profit growth

Self-funded growth generates excess cash

Proper and efficient use of the balance sheet

Return excess cash to shareholders (share repurchases)

Focused, Niche StrategyEnduring

Coherentunderserved markets, customer service, engineering, regulatory expertise, averageprogram size, financial metrics, footprint, not vertical, etc.

Value stream solutions lead to higher returns and sticker customer relationships

Market sectors offer runway for long-term growth

Management Integrity, Trust

Tell it like it is in good times & in bad

Disciplined, predictable, consistent, credible

Corporate Governance

PLXS Awarded aPremium Multiple

118

EMS ROIC PERFORMANCE


119/131

FLEX, 7.9%

JBL, 15.5%

CLS, 11.2%SANM, 5.2%

PLXS, 15.9%

BHE, 7.2%

SMTX, 15.1%

Hon Hai12.9%

SGMA, 5.4%

CTS, 6.4%

Venture, 9.7%

SPA, 16.0%

SYPR, 17.3%

0%

2%

4%

6%

8%

0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x

OperatingMarginAfterTax

Invested Capital Turnover

Destroying Shareholder Value

Creating Shareholder Value

US EMS Industry WACC(1) = 10.9%

Source: Bank of America - CapitalIQ, Factset, Bloomberg, Wall Street research and company filings.

Note: Red data labels represent non-US competitors. ROIC = [Operating Profit x (1 - Tax Rate)] /

(Shareholders Equity + Total Debt Cash & Cash Equivalents).

(1) WACC assumes an equity market risk premium of 5.95% and 10-year treasury risk free rate;

calculated as weighted average of the listed US equity entities. Based on predicted betas from

Barras. May 2013

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VALUATION METRICS


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11.1x

14.7x

11.7x

9.3x 9.1x 9.0x8.3x

0.0x

4.0x

8.0x

12.0x

16.0x

PLXS BHE CLS SANMFLEX FN JBL

6.7x

6.1x5.7x 5.6x

5.4x

4.6x

4.4x

0.0x

2.0x

4.0x

6.0x

8.0x

PLXS BHE SANM FN CLS FLEX JBL

7.3x

6.8x

6.3x 6.2x6.0x

5.4x5.0x

0.0x

2.0x

4.0x

6.0x

8.0x

PLXS BHE FN CLS SANMFLEX JBL

1.8x

2.2x

2.0x1.8x

1.8x

1.3x

1.1x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

PLXS FLEX FN JBL CLS SANM BHE

1.1x

1.8x

1.5x

1.2x

0.7x 0.7x

0.6x

0.0x

0.4x

0.8x

1.2x

1.6x

2.0x

PLXS FN BHE CLS SANM JBL FLEX

1.2x

2.0x

1.7x

1.4x

0.8x 0.8x0.7x

0.0x

0.4x

0.8x

1.2x

1.6x

2.0x

2.4x

PLXS FN BHE CLS SANM JBL FLEX

15.5%

23.6%

20.1%19.1%

18.1%

12.6%

9.6%

0%

5%

10%

15%

20%

25%

PLXS FN FLEX CLS JBL SANM BHE

12.3x

17.3x

13.5x

11.8x

10.7x 10.2x9.9x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

PLXS BHE CLS FLEX SANM FN JBL

CY 2014E EV / EBITDA CY 2014E P/E CY 2014E PEG

EV / LQA IC

CY 2013E ROIC

Source: BofA Merrill Lynch 5 Sep 2013

CY 2013E EV / EBITDA CY 2013E P/E CY 2013E PEG

5.9x

12.2x

1.3x

1.7x

5.3x 10.3x

1.1x

17.2%

120

ECONOMIC PROFIT


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Focus on economic profit supports balanced approach to both

revenue growth and financial returns

F06 F07 F08 F09 F10 F11 F12 F13E

ROIC

28.8%

17.8%

20.1%

13.9%

19.5%

15.6%

15.5%

13.9%

Internal WACC

-15.0%

-15.0%

-15.0%

-15.0%

-15.0%

-13.5%

-12.5%

-12.0%

Return Spread

13.8%

2.8%

5.1%

-1.1%

4.5%

2.1%

3.0%

1.9%

Invested Capital

$277,033 $360,308 $427,510 $453,211 $506,773 $627,763 $623,021 $650,507

EP

$38,231 $9,992 $21,929 ($5,111)

$22,639 $13,303 $18,989 $12,286

Cumulative EP

$48,223 $70,152 $65,041 $87,680 $100,983 $119,973 $132,258

121


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Cash/Debt Summary

Capital Allocation Strategy

Capital

Allocation

3

122

CASH/DEBT SUMMARY


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F12 Q3F13

Debt/EBITDA 1.64 1.69

Debt Covenant Max. 3.00 3.00

Unused Rev. Capacity 160$ 160$

Debt/Total Capital 29.0% 28.0%

Credit Metrics

F12 Q3F13 Maturity

Revolver -$ -$ May-17

Term Loan 83 75 May-17

Notes 175 175 Jun-18

Other 13 12 2013-2017

Total Debt 270$ 262$

Cash 297 286

Net Debt (27)$ (24)$

Debt Composition

$ millions

Q3F13 of Total Interest

Debt Fixed Rate 262$ 100% 4.35%

Debt Variable Rate - 0% 0%

Total 262$ 100% 4.35%

Interest Rate Summary

$ millions

$176$242

$98$34

$23 $10

0

100

200

300

400

F12 Q3F13

$millions

Cash by Region

APAC AMER EMEA

$297 $286

123

CAPITAL ALLOCATION STRATEGY


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Annual review of cash flows by region in the annual planning process

In F13 we began a strategy to approve annual share repurchases, executedratably over the year

$50 million approved in F13, $30 million in F14 Less in F14 based on cash flow requirements for new investments (Guadalajara

and completion of Wisconsin consolidation site)

Value of this consistent approach More focus internally on forecasting cash

Implementing tax-efficient repatriation strategies for offshore cash

124

CAPITAL ALLOCATION: FOCUSED ON SHARE REPURCHASES


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F07 F08 F09 F10 F11 F12 F13Estimate

Beginning Outstanding Shares

46,217 46,402 39,326 39,548 40,403 34,544 35,097

Share repurchases (7,446) (6,308) (1,820)

Stock option issuances 185 370 222 855 449 553 400

Ending Outstanding Shares 46,402 39,326 39,548 40,403 34,544 35,097 33,677

Average share price of

repurchases

$26.87 $31.69 $27.47

27% reduction in outstanding shares since F07

Source: PLXS SEC Filings

125


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Takeaways

PLXS Outperforms

Looking

Toward $3B

4

126

RESILIENCENEW HEADSET


127/131

We do not rely on a financial model that only works when growth is in the mid-

teens percentage range!

Environment compels us to manage differently to deliver shareholder value

Financial model must be more resilient and deliver operating profit margin target and

EPS growth with lower revenue growth

Headset

Reset capacity utilization expectations to stretch current footprint to $3B and beyond

Reset cost structure and improve productivity to deliver operating profit margin target in F14

Achieve our capital employed turnover target to deliver meaningful ROIC and EP

127


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PLXS OUTPERFORMS!


129/131

129


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THANK YOU

130

LINE-OF-SIGHT TO $3 BILLION


131/131

Plexus Value Position remains intact, despite recent challenges

- Strong new business wins, including share gains from the competition

-Global platform uniquely focused on mid-low volume, higher complexity products

- Focus enables better service and flawless execution for our customers

- Engineering Solutions; powerful differentiator

- Deep regulatory and compliance expertise in our chosen sectors

- Continuing to enhance the value stream

Market Sectors offer ample runway for long-term growth

Current footprint supports growth to $3B

- Complete Wisconsin consolidation project

- Guadalajara in Q3F14

Consistent & Coherent Strategy

2013 ir day full presentation

Documents