August 7, 2013 August 7, 2013 Exhibit 99.2 FY13 Q4 Conference Call |
Page 1 Page 1 Forward-Looking Statement Statements in this release that are not historical are forward-looking and are subject to various risks and uncertainties that could cause actual results to vary materially from those stated. Words such as “expect,” “anticipate,” “utlook,” “forecast,” “could,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “should,” “may,” “assume,” “potential,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are based on currently available information and include, among others, the discussion under “Outlook.” These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Respective risks, uncertainties and assumptions that could affect the outcome or results of operations are described in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended June 30, 2012, and the Form 10-Q for the quarters ended September 30, 2012, December 31, 2012 and March 31, 2013, which are incorporated by reference and in other reports that Molex files or furnishes with the Securities and Exchange Commission. We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to management at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied, or forecast by our forward-looking statements. Reference is made in particular to forward-looking statements regarding growth strategies, industry trends, global economic conditions, success of customers, cost of raw materials, value of inventory, currency exchange rates, labor costs, protection of intellectual property, cost reduction initiatives, acquisition synergies, manufacturing strategies, product development introduction and sales, regulatory changes, competitive strengths, natural disasters, unauthorized access to data, government investigations and outcomes of legal proceedings. Except as required under the federal securities laws, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this report, whether as a result of new information, future events, changes in assumptions, or otherwise. |
In Molex Incorporated’s (“Molex” or the “Company”) conference call on August 7, 2013 regarding the Company’s financial results for the fiscal quarter and fiscal year ended June 30, 2013 and the following slides, Molex may refer to non-GAAP financial measures to describe earnings for such periods excluding the items referenced in the relevant slides used during this conference call. This is in addition to disclosing the most directly comparable measure for such periods determined in accordance with generally accepted accounting principles, or GAAP. Molex believes that these non-GAAP financial measures provide useful information to investors because they provide information about the estimated financial performance of Molex’s ongoing business and provide for greater transparency of supplemental information used by management in its financial and operational decision-making. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the relevant slides reconciling the non-GAAP financial measures intended to be used in the conference call to the most comparable GAAP measure. Page 2 Page 2 Non-GAAP Financial Measures |
Challenging quarter for Mobile Devices – Delayed production ramps by customers – All other end markets improved Daily order rates improving – Slow growth environment – Lead times remain tight Free Cash Flow > Net Income – Working capital metrics improved – Supports dividend FCT acquisition – Mixed layout custom I/O’s – Diverse end markets including Industrial and Medical Page 3 Page 3 FY13 Q4 Summary |
Page 4 Page 4 Q4 Book-to-Bill 1.0 to 1 Revenue / Order Trend |
REVENUE ORDERS Sequential Change YOY Change % Total Sequential Change YOY Change % Total Automotive 6% 22% 21% - 19% 20% Infotech 11% (3)% 18% 4% (1)% 18% Telecom 9% (8)% 13% 9% (1)% 14% Mobile Devices (18)% 16% 15% (32)% (25)% 15% Consumer Elect. 9% (17)% 14% 7% (15)% 14% Industrial 10% 1% 14% 2% 4% 14% Medical / Military 3% 36% 5% 11% 43% 5% TOTAL 4% 3% 100% (3)% (2)% 100% Page 5 Page 5 Change in Revenue / Orders By Industry – June Quarter |
Page 6 Page 6 Full Year 2013 2012 Net revenue $3,620 $3,489 Gross margin 29.4% 30.6% SG&A $685.6 $657.7 SG&A % 18.9% 18.9% Operating margin 9.7% 11.4% EPS $1.36 $1.59 (US$ in millions, except per-share data) Full Year Financial Summary |
Quarter Ended Jun 2013 Mar 2013 Jun 2012 Net revenue $882.9 $852.9 $858.5 Gross margin 29.1% 29.1% 30.0% SG&A $174.0 $167.4 $161.6 Unauthorized activities in Japan - $21.2 $3.1 Income from operations $83.0 $59.9 $92.9 Interest (expense) net $(1.0) $(1.6) $(0.7) Other (expense) income $2.6 $0.3 $2.9 Effective tax rate 32.4% 23.6% 24.3% Net income $57.1 $44.8 $72.0 Earnings per diluted share $0.32 $0.25 $0.40 (US$ in millions, except per-share data) Page 7 Page 7 Financial Summary |
Quarter Ended Jun 2013 Mar 2013 Jun 2012 Cash and marketable securities $721.9 $712.9 $652.2 Total debt* $364.2 $403.7 $254.9 Net cash $357.7 $309.2 $397.3 Receivable days outstanding 69 Days 70 Days 70 Days Inventory days outstanding 84 Days 89 Days 87 Days Return on net assets** 18.1% 18.6% 19.4% Research and development $45.3 $46.2 $46.7 (US$ in millions) *Total debt equals long-term debt plus current portion of long-term debt and short-term loans. Page 8 Page 8 **See GAAP to non-GAAP reconciliation Balance Sheet and Operating Metrics |
Page 9 Page 9 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Cash Flow From Operations $138.9 $143.3 $167.4 $87.2 $(20.1) $148.1 Less: Capital Expenditures $(54.4) $(77.7) $(69.4) $(78.6) $(55.9) $(58.9) Add: Japan Litigation Settlement* - - - - $182.8 - Free Cash Flow (non-GAAP measure) $84.5 $65.6 $98.0 $8.6 $106.8 $89.2 US $ in millions *See unauthorized activities in Japan section of our press release dated April 23, 2013 Free Cash Flow Trend |
September Fiscal Quarter Revenue $890 to $930 million EPS $0.35 to $0.39 Assumes – 30% to 32% effective tax rate – Constant foreign exchange rates and commodity prices Page 10 Page 10 Outlook |
Quarter Ended Jun 2013 Mar 2013 Dec 2012 Sep 2012 Jun 2012 Income from operations $82,946 $59,938 $106,515 $102,735 $92,948 Unauthorized activities in Japan - 21,210 1,627 2,561 3,093 Non-GAAP income from operations $82,946 $81,148 $108,142 $105,296 $96,041 (US$ in thousands) Non-GAAP income from operations is a non-GAAP financial measure. We refer to non-GAAP income from operations to describe income from operations excluding the items referenced above. We believe that non- GAAP income from operations provides useful information to investors because it provides information about the estimated financial performance of Molex’s ongoing business. Non-GAAP income from operations is used by management in its financial and operational decision-making and evaluation of overall operating performance and segment level core operating performance. Non-GAAP income from operations may be different from similar measures used by other companies. Operating income excluding restructuring and special charges Fixed assets + Inventory + A/R – A/P RONA = Non-GAAP Measure |
REVENUE ORDERS YTD Change % Total YTD Change % Total Automotive 15% 19% 15% 18% Infotech (6)% 17% (4)% 17% Telecom (8)% 13% (6)% 13% Mobile Devices 37% 21% 31% 21% Consumer Elect. (16)% 14% (15)% 14% Industrial (4)% 12% (1)% 13% Medical / Military 35% 4% 36% 4% TOTAL 4% 100% 4% 100% Change in Revenue / Orders By Industry – FY13 FY13 |
(US$ in millions) BOOKINGS Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Automotive $149.2 $133.4 $154.2 $150.9 $154.2 $159.5 $180.1 $179.4 Infotech 155.5 151.7 163.4 158.1 149.5 148.3 150.2 156.4 Telecom 122.0 121.0 134.3 122.0 128.9 108.1 111.0 121.2 Mobile Devices 168.0 126.6 120.4 170.5 221.2 231.0 187.6 127.9 Consumer Elect 175.6 147.2 146.5 149.9 150.5 126.9 119.2 127.7 Industrial 114.1 109.2 120.8 118.9 108.7 103.1 121.7 123.8 Medical/Military 25.6 26.2 33.0 30.7 30.9 42.8 39.4 43.6 TOTAL $910.0 $815.3 $872.6 $901.0 $943.9 $919.7 $909.2 $880.0 REVENUE Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Automotive $144.3 $135.8 $151.4 $150.4 $153.5 $157.8 $173.4 $184.1 Infotech 162.8 159.7 156.4 161.9 154.4 150.2 140.5 156.4 Telecom 130.8 134.9 119.6 127.6 131.7 116.5 108.2 117.7 Mobile Devices 167.4 137.1 122.1 117.1 182.1 262.2 165.5 136.1 Consumer Elect 178.1 154.9 140.9 150.1 149.9 137.1 113.9 124.5 Industrial 125.9 109.3 116.6 120.6 115.0 104.0 110.8 122.2 Medical/Military 26.7 25.9 30.1 30.8 30.3 39.9 40.6 41.9 TOTAL $936.0 $857.6 $837.1 $858.5 $916.9 $967.7 $852.9 $882.9 End market definitions are periodically updated End Market Trend |