Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MOLEX INC | d474293d8k.htm |
| EX-99.1 - EX-99.1 - MOLEX INC | d474293dex991.htm |
    January 23,
2013 January 23, 2013
Exhibit 99.2
FY13 Q2 Conference Call |
 Page
1 Page 1
Forward-Looking
Forward-Looking
Statement
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,” “outlook,”
“forecast,” “could,” “project,” “intend,” “plan,” “continue,” “believe,”
“seek,” “estimate,” “should,” “may,” “assume,”
“potential,” variations of such words and similar expressions are used to identify
these 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 quarter ended September 30, 2012, which is 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, availability of
credit, foreign 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, income tax fluctuations,
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
January
23, 2013 regarding the Company’s financial results for the second fiscal quarter
ended December 31, 2012 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.
Page 2
Page 2
Non-GAAP Financial Measures
Non-GAAP Financial Measures
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. |
 Record
revenue More normal seasonal order pattern
Investments in the future
Record operating metrics
Page 3
Page 3
FY13 Q2 Summary
FY13 Q2 Summary |
 Page
4 Page 4
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
$936
$858
$837
$859
$917
$968
$910
$815
$873
$901
$944
$920
Revenue
Orders
Revenue / Order Trend
Revenue / Order Trend
Q2 Book-to-Bill 0.95 to 1 |
 REVENUE
ORDERS
Sequential
Change
YOY
Change
%
Total
Sequential
Change
YOY
Change
%
Total
Automotive
3%
15%
16%
3%
17%
17%
Infotech
11%
31%
28%
(3)%
26%
27%
Telecom
15%
15%
27%
(2)%
19%
26%
Consumer
Elect.
(9)%
(11)%
14%
(15)%
(13)%
14%
Industrial
(9)%
(4)%
11%
(5)%
(5)%
11%
Medical /
Military
31%
54%
4%
38%
64%
5%
TOTAL
6%
13%
100%
(3)%
13%
100%
Page 5
Page 5
Change in Revenue / Orders
Change in Revenue / Orders
By Industry –
By Industry –
December Quarter
December Quarter |
 Quarter
Ended Dec 2012
Sep 2012
Dec 2011
Net revenue
$967.7
$916.9
$857.6
Gross margin
29.9%
29.3%
30.7%
SG&A
$181.0
$163.1
$163.1
Unauthorized activities in Japan
$1.6
$2.6
$2.7
Income from operations
$106.5
$102.7
$97.1
Interest (expense) net
$(1.1)
$(0.8)
$(2.1)
Other (expense) income
$(3.2)
$1.2
$1.5
Effective tax rate
31.1%
30.8%
33.7%
Net income
$70.4
$71.3
$64.0
Earnings per diluted share
$0.39
$0.40
$0.36
(US$ in millions, except per-share data)
Page 6
Page 6
Financial Summary
Financial Summary |
 Quarter
Ended Dec 2012
Sep 2012
Dec 2011
Cash and marketable securities
$716.8
$702.1
$618.6
Total debt*
$341.9
$221.2
$320.5
Net cash
$374.9
$480.9
$298.1
Receivable days outstanding
67 days
69 days
71 days
Inventory days outstanding
83 days
84 days
91 days
Return on net assets**
19.1%
18.7%
20.6%
Research and development
$47.9
$46.3
$44.8
(US$ in millions)
*Total debt equals long-term debt plus current portion of long-term
debt and short-term loans, less current portion of capital leases
Page 7
Page 7
**See GAAP to non-GAAP reconciliation
Balance Sheet and Operating Metrics
Balance Sheet and Operating Metrics |
 Page
8 Page 8
US $ in millions
0
20
40
60
80
100
Free Cash Flow Trend
Free Cash Flow Trend
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Cash Flow From Operations
$141.0
$138.9
$143.3
$167.4
$87.2
Less: Capital Expenditures
$52.3
$54.4
$77.7
$69.4
$78.6
Free Cash Flow (non-GAAP measure)
$88.7
$84.5
$65.6
$98.0
$8.6
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Free Cash Flow
Net Income |
 March Fiscal
Quarter Revenue
$900 to $930 million
EPS
$0.33 to $0.37
Assumes
–
30% to 32% effective tax rate
–
Constant foreign exchange rates and
commodity prices
Page 9
Page 9
Outlook
Outlook |
 |
 Quarter
Ended Dec
2012
Sep
2012
Jun
2012
Mar
2012
Dec
2011
Income from
operations
$106,515
$102,735
$92,948
$88,802
$97,141
Unauthorized
activities in Japan
1,627
2,561
3,093
2,521
2,723
Non-GAAP income
from operations
$108,142
$105,296
$96,041
$91,323
$99,864
(US$ 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. RONA =
Non-GAAP Measure
Non-GAAP Measure
Fixed assets + Inventory + A/R – A/P
Operating
income
excluding
restructuring
and
special
charges |