Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MOLEX INC | d580979d8k.htm |
| EX-99.1 - EX-99.1 - MOLEX INC | d580979dex991.htm |
 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 |