Fabrinet : Investor Presentation 1FQ24

COMPANY OVERVIEW

November 6, 2023

Disclaimer

This presentation and the accompanying oral presentation contain "forward-looking" statements that are based on management's

beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information concerning our business plans and objectives, potential growth opportunities, competitive position, industry environment and potential market opportunities.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors including, but not limited to: changes in general economic conditions, either globally or in our markets, and the risk of recession or an economic downturn; continued disruption to our supply chain, which could increase our costs and affect our ability to procure parts and materials; less customer demand for our products and services than forecasted; less growth in the optical communications, industrial lasers and sensors markets than we forecast; difficulties expanding into additional markets, such as the semiconductor processing, biotechnology, metrology and materials processing markets; increased competition in the optical manufacturing services markets; difficulties in delivering products and services that compete effectively from a price and performance perspective; our reliance on a small number of customers and suppliers; difficulties in managing our operating costs; difficulties in managing and operating our business across multiple countries (including Thailand, the People's Republic of China, Israel, and the U.S.); and other important factors as described in reports and documents we file from time to time with the Securities and Exchange Commission (SEC), including the factors described under the section captioned "Risk Factors" in our most recent annual and quarterly reports on Form 10-K and Form 10-Q. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These factors may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assume responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations, except as required by law.

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Fabrinet Overview

• Global leader in advanced precision optical/ electronic/mechanical manufacturing services
• Focus on high-mix/low-volumemission-critical components and modules
• Serving growing industrial markets
• • Telecom and Datacom Optical Communications
  • Automotive
  • Industrial Lasers
  • Medical and Other components and sub-systems
• Long-lastingcustomer relationships with programs extending from new product introduction (NPI) to volume production
• Highly seasoned management team with extensive and diversified manufacturing experience in OEM and EMS industries

Fabrinet West	VitroCom
New Jersey
Santa Clara	Fabrinet	Casix
		Israel	Fuzhou

Fabrinet

Pinehurst /

Chonburi

• Founded in 2000 by Chairman, Tom Mitchell (co- founder of Seagate Technologies)
• >14,000 employees
• >3 million sq. ft.
• Factories in Thailand, China, New Jersey, California, and Israel

CORE VALUESS

Total Customer Satisfaction	Sustainable Manufacturing
Positive Work Environment	Integrity

FN

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Markets and Products

Optical		Automotive	Industrial Lasers	Other
Communications
◼ EV Charging	◼ Lasers	◼ Medical
◼ Transceivers
◼	LIDAR	◼	Solid-State Lasers	Diagnostics
◼ Modulators
◼	LED & Laser	◼	Gas Lasers	◼ Metrology &
◼ Optical Amplifiers			Instrumentation
	Lighting	◼	Ultrafast Lasers
◼ ROADM
◼ Safety & Control
◼ Silicon Photonics		Sensors
◼ Line Cards	◼ Pressure &
◼ Network Systems		Temperature
		Sensors

Customized Optics and Passive Devices - Vertical Integration

• Beam Splitters, Prisms, Laser Crystals, Waveplates, Ferrules

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Efficient Global Manufacturing Footprint

Precision Optical and Electronic	Quickturn NPI Services
Packaging and Assembly

Casix, China

Vitrocom, NJ, USA

Pinehurst Campus, Thailand

Custom Optics

Chonburi Campus, Thailand	Fabrinet Israel	Fabrinet West, CA, USA
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Investment Highlights

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Large and growing addressable markets

Differentiated business model with low cost structure

Highly differentiated expertise in precision manufacturing technologies enabling next-generation products

Strong relationships with industry-leading OEMs

Demonstrated track record of growth and profitability

Experienced management team with history of execution

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Strong Revenue Trends

QUARTERLY CONSOLIDATED REVENUE ($M)

800
668.7	665.3			655.9	655.4	685.5
700
566.6	564.4	587.9		543.3
600
453.8	479.3	509.6
500
400
300
200
100
0
Dec'20 Dec'21 Dec'22		Mar'21 Mar'22 Mar'23		Jun '21 Jun '22 Jun '23	Sep'21 Sep'22*	Sep'23
			Optical communications		Non-optical communications

OPTICAL COMMUNICATIONS REVENUE ($M)	NON-OPTICAL COMMUNICATIONS REVENUE ($M)
600	506.1	502.6	502.1	533.3		200
			162.7
	497.6
		450.8		175					157.9152.2
500		440.0	464.7	427.3		162.6		153.8
		150
400		347.8	361.7	387.8				124.4	123.2	116.0
				125		115.8
					117.6
300							100	106.0	121.7
200							75
						50
100
						25
0							0

*The quarter ended September 30, 2022 benefited from an additional week in the quarter

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Consistent Profitability

NON-GAAP GROSS MARGIN AND NON-GAAP OPERATING MARGIN (1)

% of Sales	15.0%	12.6%	13.0%	12.9%	12.6%
	10.0%	10.3%	10.8%	10.7%	10.5%
	5.0%
	0.0%
	FY2022		FY2023		1Q23	1Q24
					Gross margin		Operating margin

RETURN ON INVESTED CAPITAL (2)

40.0%	32.6%	32.6%	35.6%	32.4%
30.0%
20.0%
10.0%
0.0%
FY22	FY23	1Q23	1Q24

1. Excludes share based compensation, executive separation cost, depreciation of fair value uplift/intangibles, restructuring costs, etc. See Appendix for a reconciliation to most comparable GAAP measures.
2. Return on Invested Capital = non-GAAP net income divided by average invested capital. Invested capital = total debt + shareholder equity - cash & equivalents, marketable securities and restricted cash. For ROIC in the current fiscal quarter and the prior year fiscal quarter, non-GAAP net income is annualized by multiplying the fiscal quarter's non-GAAP net income by 4. See Appendix for a reconciliation to most comparable GAAP measures.

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Recent Financial Performance

Key Financials

$Millions (USD), except per share figures	3 months ended
	29-Sep-23	30-Sep-222
Revenue	685.5	655.4
Y-o-Y change	5%	21%
Gross profit (non-GAAP)(1)	86.6	84.7
Gross margin (non-GAAP)(1)	12.6%	12.9%
Operating profit (non-GAAP)(1)	71.7	70.0
Operating margin (non-GAAP)(1)	10.5%	10.7%
Net Income (GAAP)	65.1	64.6
Net Income (non-GAAP)(1)	72.8	72.4
Diluted EPS (GAAP)	1.78	1.76
Diluted EPS (non-GAAP)(1)	2.00	1.97

1. See Appendix for a reconciliation to most comparable GAAP measure
2. The quarter ended September 30, 2022 benefited from an additional week in the quarter
   .

• Q1 revenue of $685.5 million exceeded guidance, and was a new record
• Q1 non-GAAP operating margin was 10.5%
• Q1 non-GAAP EPS of $2.00 exceeded guidance, and was a new record

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Strong Balance Sheet Supports Growth Strategy

Selected Items

$Millions (USD)	As of Sep 29, 2023
Cash, cash equivalents(1)	670.8
Working capital (2)	618.0
Property, plant & equipment, net	306.7
Total debt (3)	9.1
Total shareholders' equity	1,530.2

1. Cash & cash equivalents include marketable securities and restricted cash
2. Calculated as Trade accounts receivable + Inventory - Trade accounts payable
3. Calculated as the sum of current & long-term debt, net of unamortized debt issuance costs

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