Benchmark Electronics, Inc. (NYSE:BHE) Q2 2021 Earnings Conference Call July 28, 2021 5:00 PM ET Company Participants Lisa Weeks - Chief Strategy Officer & Head-Investor Relations Jeff Benck - Chief Executive Officer and President Roop Lakkaraju - Chief Financial Officer Conference Call Participants Jaeson Schmidt - Lake Street Anja Soderstrom - Sidoti Tyler Bailey - Needham Operator Good day, and welcome to the Benchmark Electronics, Inc. Second Quarter 2021 Earnings Conference Call. All participants will ...

Company Overview - Benchmark Electronics was founded in 1979 and has over 40 years of experience[4] - The company's revenue in 2020 was $2.05 billion[4] - Higher Value Market revenue accounted for over 80% of the total revenue in 2020[4] - The company has over 11,000 global team members[4] EMS Market - The 2019 EMS market size was $443 billion[5] - The 2019 Higher Value Markets were approximately $90 billion[5] - The EMS revenue is projected to have a CAGR of approximately 5% from 2019 to 2024[5] Financial Performance and Targets - The company is targeting annual revenue growth of approximately 5% in the mid-term[37] - The company is aiming to expand Non-GAAP gross margins to 9.3% - 9.7% in the mid-term[37] - The company anticipates $80-100 million in operating cash flow in 2021[30] Strategic Initiatives - The company is focused on growing revenue, investing in sustainable infrastructure and talent, and growing earnings faster than revenue[30] - The company achieved approximately 50% attach rate of engineering to manufacturing services in Q1[30]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |--------------------------------------------------------------------------------------|-----------------------------------------------------| | For the transition period from ...

Financial Performance - Benchmark achieved revenue of $506 million in Q1 2021[5] - The company's Non-GAAP gross margin was 8.3% and Non-GAAP operating margin was 2.3%[5] - Non-GAAP earnings per share were $0.21[5] - Operating cash flow was $37 million and free cash flow was $30 million[5] Revenue Analysis by Market Sector - Medical sector revenue was $109 million, representing 21% of total revenue, a decrease of 3% Q/Q and 8% Y/Y[15] - Semi-Cap sector revenue was $113 million, accounting for 22% of total revenue, an increase of 12% Q/Q and 37% Y/Y[16] - Aerospace & Defense sector revenue was $89 million, making up 18% of total revenue, a decrease of 19% Q/Q and 25% Y/Y[17] - Industrials sector revenue was $95 million, comprising 19% of total revenue, a decrease of 2% Q/Q and 7% Y/Y[18] Cash Conversion Cycle - The cash conversion cycle was 65 days[5] Capital Allocation - Share repurchases of $13 million were completed in Q1 2021[35] - A quarterly dividend of $0.16 per share, totaling $5.8 million, was paid in January 2021[35] Q2 2021 Guidance - Net sales are expected to be between $515 million and $555 million[37]

| --- | --- | --- | --- | --- | --- | |-----------------------------|-------|-------|-------|-------------------------------|-------| | | | | | | | | Large accelerated filer | ☑ | | | Accelerated filer | ☐ | | Non-accelerated filer | ☐ | | | Smaller reporting company | ☐ | | | | | | Emerging growth company | ☐ | UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal yea ...

UNITED STATES _______________ _______________ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to________________ Commission File Number: 1-10560 BENCHMARK ELECTRONICS, INC. (Exact name of registrant ...

UNITED STATES _______________ _______________ 56 South Rockford Drive 85281 Tempe, Arizona (Zip Code) (Address of principal executive offices) SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to__________ ...

UNITED STATES _______________ _______________ 56 South Rockford Drive 85281 Tempe, Arizona (Zip Code) (Address of principal executive offices) SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to_________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2019 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to | --- | --- | |--------------------------------------------------------------------|-----------------------------| | | | | Commission File Number | 1-10560 | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ FORM 10-Q _______________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to________________ Commission File Number: 1-10560 BENCHMARK ELECTRONICS, INC. (Exact name of registrant ...