Electronic Manufacturing Services March 2018 SECTORWATCH

SECTORWATCH: Electronic Manufacturing Services March 2018 SECTORWATCH:

Electronic Manufacturing 7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only in conjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. All data cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7M Securities make warranties or Services representations as to the accuracy or completeness of third-party data contained herein. This document should be treated as confidential and for the use of the intended recipient only. Please March 2018 notify 7 Mile Advisors if it was distributed in error.

. Sector Dashboard

. Public Basket Performance

. Operational Metrics

. Valuation Comparison

. Recent Deals

. Appendix OVERVIEW

Dashboard

summary metrics on the sector, with commentary on About Us market momentum by comparing the most recent 12- 7MA provides Investment Banking & Advisory Services to the month performance against the last 3-year averages Business Services and Technology Industries globally.

We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we Public Basket Performance help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. summary valuation and operating metrics for a basket of comparable public companies

Sectorwatch We publish sectorwatch, a review of M&A and operational trends in the industries we focus. Valuation Comparison

a more graphical, detailed comparison of valuation multiples for the public basket Let us know if we can help Contact us if there are ways we can assist your M&A or financing strategy.

Recent Deals the most recently announced sector deals

Revenue Growth Momentum Median TEV / LTM Revenue 7.7% 1 - year revenue growth compared to revenue growth 1.6% average for last 3 years Current revenue growth rate exceeds the average of the last 3 years by this amount, indicating that market momentum is increasing Median LTM GP Margin % 5.1% Pricing / Gross Margin Momentum 1 - year gross profit % compared to gross profit % Median LTM EBITDA Margin % -0.31% average for last 3 years 4.1% Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power 0% 2% 4% 6% 8%

Profitability Momentum Valuation -0.4% 1 - year EBITDA % compared to EBITDA % average for last 3 years Median TEV / LTM EBIT Current EBITDA margin is less than the average of the last 3 years EBITDA 11.6x margins, which may signal further consolidation Median Price / LTM Earnings 8.1x PUBLIC BASKET CONSTITUENTS nyse:bhe NasdaqGS:PLXS nyse:jbl Median TEV / LTM EBITDA 7.0x tsx:cls NasdaqGS:SANM NasdaqGS:FLEX

Median TEV / LTM Revenue 0.4x

Rev LTM Rev Growth TEV / Rev TEV / Rev / FTE Company TEV $m $m YoY GP % EBITDA % X EBITDA X # FTEs $k

Benchmark Electronics, Inc. 997 2,467 7% 9% 5% 0.4 7.4 10,600 233

Celestica Inc. 1,304 6,111 2% 7% 4% 0.2 5.4 23,400 261

Plexus Corp. 1,852 2,570 0% 10% 7% 0.7 10.7 16,000 161

Sanmina Corporation 2,144 6,893 3% 7% 5% 0.3 6.5 35,500 194

Jabil Inc. 6,331 19,544 7% 8% 7% 0.3 4.9 170,000 115

Flex Ltd. 11,357 24,893 5% 7% 5% 0.5 9.9 200,000 124

Average 3,998 10,413 4% 8% 5% 0.4 7.5 75,917 181

Median 1,998 6,502 4% 8% 5% 0.4 7.0 29,450 177 share price as of 15Mar18

PUBLIC BASKET VALUATION TRENDS 9x 8x 7x 9x 6x 5x 8x 4x 3x 7x 2x 1x

6x 0x

Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

Sep-13 Sep-14 Sep-15 Sep-16 Sep-17

Dec-15 Dec-13 Dec-14 Dec-16 Dec-17

Mar-15 Mar-16 Mar-17 Mar-18 5x 6.6x Mar-14 TEV/EBITDA - Median TEV/EBITDA - Average

4x Public Revenue Multiples Over Time 3x 0.5x

2x 0.4x

0.3x 1x 0.3x 0.2x 0x

0.1x

Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

Sep-13 Sep-14 Sep-15 Sep-16 Sep-17

Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 0.0x TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

Sep-16 Sep-13 Sep-14 Sep-15 Sep-17

Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

TEV/Revenue - Median TEV/Revenue - Average

LTM REVENUE GROWTH % LTM GROSS PROFIT MARGIN % LTM EBITDA %

Jabil Inc. 7.1% Plexus Corp. 9.9% Plexus Corp. 6.7%

Benchmark Electronics, Benchmark Electronics, Jabil Inc. 6.7% Inc. 6.8% Inc. 9.2%

Benchmark Electronics, Flex Ltd. 4.7% Jabil Inc. 8.1% Inc. 5.4%

Sanmina Corporation 3.4% Sanmina Corporation 7.2% Sanmina Corporation 4.8%

Celestica Inc. 1.6% Celestica Inc. 6.8% Flex Ltd. 4.6%

Plexus Corp. (0.2%) Flex Ltd. 6.7% Celestica Inc. 4.1%

Median 4.1% Median 7.7% Median 5.1%

(10%) - 10% 20% - 5% 10% 15% - 2% 4% 6% 8% 10%

LTM Rev. per FTE x 000's Accounts receivable turnover Avg days sales outstanding

Benchmark Electronics, 64.90 Celestica Inc. $261 Jabil Inc. 12.80 Inc.

Benchmark Electronics, Sanmina Corporation 55.84 Inc. $233 Celestica Inc. 7.86

Sanmina Corporation $194 Flex Ltd. 7.84 Plexus Corp. 48.04

Plexus Corp. $161 Plexus Corp. 7.58 Flex Ltd. 46.58

Sanmina Flex Ltd. $124 Celestica Inc. 46.45 Corporation 6.52

Benchmark Jabil Inc. $115 Jabil Inc. 28.52 Electronics, Inc. 5.62

Median $177 Median 7.71 Median 47.31

$- $100 $200 $300 0 5 10 15 - 20 40 60 80 100

TEV / LTM Revenue TEV / LTM EBITDA Price / LTM Earnings

Plexus Corp. 0.7 Plexus Corp. 10.7 Flex Ltd. 18.9

Flex Ltd. 0.5 Flex Ltd. 9.9 Plexus Corp. 14.5

Benchmark Electronics, Benchmark 0.4 Jabil Inc. Inc. Electronics, Inc. 7.4 11.8

Jabil Inc. 0.3 Sanmina Benchmark Corporation 6.5 Electronics, Inc. 11.4

Sanmina Sanmina Corporation 0.3 Celestica Inc. 5.4 Corporation 10.3

Celestica Inc. 0.2 Jabil Inc. 4.9 Celestica Inc. 7.6

Median 0.4 Median 7.0 Median 11.6

0.0x 0.4x 0.8x 1.2x 0x 5x 10x 15x 0x 10x 20x 30x

Historical Valuation Multiples versus Gross Profit Historical Valuation Multiples versus Revenue Growth Rate

12x 12% 12x 8% 9.9% 7.1% 6.8% 7% 10x 9.2% 10% 10x 6% 8.1% 4.7% 8x 7.2% 8% 8x 5%

4% 6x 6.8% 6.7% 6% 6x 3% (0.2%) 4x 4% 4x 3.4% 2%

1.6% 1% 2x 2% 2x 0%

5x 5x 7x 7x 10x 11x 5x 5x 7x 7x 10x 11x

EBITDA(x)

LTM GP% LTM EBITDA(x)

0x 0% 0x -1% RGR% LTM

EBITDA(x) LTM GP% EBITDA(x) LTM RGR%

Date Target Buyer Total Transaction Value Target Revenue TEV / Revenue TEV / EBITDA

13Mar18 Magnum Electronics Limited Hindley Circuits Limited - - - - 22Feb18 Procond Elettronica SRL De'Longhi S.p.A.; Shenzhen H&T Intelligent 9.49 66.03 - - Control Co., Ltd. 21Feb18 iCAM Solution Pvt. Ltd. SFO Technologies Pvt. Ltd. - - - - 20Feb18 Corfin Industries LLC Behrman Capital - - - - 15Feb18 Stadium Group plc TT Electronics plc 79.27 79.03 0.9x 10.1x 30Jan18 Camtronics Vale Limited - 0.86 2.47 0.3x - 24Jan18 Atrenne Integrated Solutions, Inc. Celestica Inc. 139.00 - - - 2Jan18 Key Assets And Agreements of IoT Group of Anaren, - - - - - Inc. (nka:Atmosphere IoT Corp.) 29Dec17 NSG Technology, Inc. FOXCONN CZ, s.r.o. 42.67 - - - 11Dec17 Concurrent Manufacturing Solutions, LLC Cypress Holdings, Inc. - - - - 1Dec17 Anaren, Inc. TTM Technologies, Inc. 775.00 - - - 14Nov17 Innovolt, Inc. East West Manufacturing, LLC - - - - 25Oct17 PowerbyProxi Limited Apple Inc. - - - - 6Oct17 Portfolio of Four Retail Warehouse Parks Ediston Property Investment Company plc 187.82 - - - 31Jul17 Procond Elettronica SRL De'Longhi S.p.A. 9.07 - - - 1Aug17 Syncroness, Inc. Alten SA - - - - 27Jun17 Pacific Insight Electronics Corp. Methode Electronics, Inc. 110.36 100.65 1.0x 9.2x 19Jun17 Innovative Laser Technologies Inc. IPG Photonics Corporation 40.00 22.00 1.8x - 12May17 Kinpo Electronics (Philippines), Inc. Cal-Comp Technology (Philippines), Inc. 99.90 - - - 2May17 Avatar Engineering, Inc. Pivot International, Inc. - - - - 6Apr17 STI Enterprises Limited Integrated Micro-Electronics UK Limited 28.53 73.68 0.5x - 31Mar17 Smart Technologies Inc. Hon Hai Precision Industry Co., Ltd. 271.47 331.81 0.7x 27.3x 28Mar17 ICsense Micronas GmbH - - - - 17Aug16 VIA optronics GmbH Integrated Micro-Electronics, Inc. 53.42 38.30 1.8x 27.4x 5Dec12 Universe Group plc, Contract Electronics Manufacturing Custom Keyboard Electronics Limited 0.10 2.58 0.0x - Division 3Dec12 Flextronics Automotive USA, Inc. Flextronics International Ltd. (nka:Flex Ltd.) 208.70 300.00 0.7x - 3Dec12 NOTE AB Lifco AB 48.83 164.01 0.3x - 15Nov12 Orb Optronix, Inc. CSA Group - - - - 13Nov12 Technical Mandala Zebulon Solutions, LLC - - - - 7Nov12 Pi Shurlok (Pty) Ltd. PFK Electronics (Pty) Ltd. - 45.08 - - 31Oct12 Höntzsch GmbH DMT GmbH & Co. KG - - - - 2Nov12 Onyx EMS, LLC (nka:Sparton Onyx, LLC) Sparton Corporation 50.12 50.23 1.0x 11.6x 28Oct12 EEMS Suzhou Technology Ltd. and EEMS Suzhou Co. Wuxi Taiji Industry Company Ltd. 42.39 - - - Ltd. 26Oct12 Realise Tech-Service Co., Ltd. Action Electronics Co., Ltd. - - - - 25Oct12 DSP Design Ltd. Season Group International Co., Ltd. - - - - 18Oct12 Simclar Inc., Assets in Hialeah, Florida; Ozark, Missouri; Balmoral Funds LLC - - - - and Matamoros, Mexico (nka:Concurrent Manufacturing Services, LLC)

Appendix: Public Basket Constituents Revenue Multiples - Benchmark Electronics, Inc. 0.6x PUBLIC BASKET CONSTITUENTS 0.5x 0.4x Benchmark Electronics, Inc. 0.3x 0.2x Benchmark Electronics, Inc., together with its subsidiaries, provides 0.1x engineering services, integrated technology solutions, and 0.0x manufacturing services in the Americas, Asia, and Europe. The company offers engineering services and technology solutions, including new product design, prototype, testing, and related TEV/Revenue Average engineering services; and custom testing, and automation equipment design and build services. It also provides electronics manufacturing and testing services, such as printed circuit board assembly and test EBITDA Multiples - Benchmark Electronics, Inc. solutions, assembly of subsystems, circuitry and functionality testing of 10 printed assemblies, environmental and stress testing, and component 8 reliability testing; component engineering services; manufacturing defect analysis, in-circuit testing, functional testing, flexible test 6 solutions, environmental stress tests of assemblies of boards or 4 systems; and failure analysis. In addition, the company offers precision 2 machining, metal joining, and electromechanical manufacturing 0 services; and subsystem and system integration services, including assembly, configuration, and testing of industrial equipment, telecommunication equipment, computers, and related products. Further, it provides value-added support systems; supply chain TEV/EBITDA Average management solutions; direct order fulfillment; and aftermarket non- warranty services, including repair, replacement, refurbishment, P/E Multiples - Benchmark Electronics, Inc. remanufacturing, exchange, systems upgrade, and spare parts 30 manufacturing throughout a product’s life cycle. The company serves original equipment manufacturers of industrial control equipment, 24 telecommunication equipment, and computers and related products for 18 business enterprises, medical devices, and testing and instrumentation 12 products. Benchmark Electronics, Inc. sells its products primarily 6 through direct sales force. The company was formerly known as Electronics, Inc. Benchmark Electronics, Inc. was founded in 1979 and 0 is headquartered in Scottsdale, Arizona.

P/E Average

Celestica Inc. 0.2x

Celestica Inc. provides design, manufacturing, hardware platform, and 0.1x supply chain solutions in Canada and internationally. The company 0.0x offers a range of services, including design and development, engineering, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, TEV/Revenue Average complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, and after-market repair and return services. Its products and services are used in various applications, EBITDA Multiples - Celestica Inc. such as servers, networking and telecommunications equipment, 10 storage systems, converged systems, optical equipment, aerospace 8 and defense electronics, healthcare products and applications, semiconductor equipment, and industrial and alternative energy 6 products. The company serves customers in the aerospace and 4 defense, industrial, smart energy, healthcare, semiconductor 2 equipment, consumer, communications, and enterprise end markets. Celestica Inc. was incorporated in 1996 and is headquartered in 0 Toronto, Canada.

TEV/EBITDA Average Date Key Development Headline 1/23/18 Celestica Inc. (TSX:CLS) entered into a definitive agreement to acquire Atrenne Integrated Solutions, Inc. for P/E Multiples - Celestica Inc. 50 approximately $140 million. 10/26/17 Celestica Seeks Acquisitions 40 8/8/17 Microsemi Corporation Announces Collaboration with 30 Mellanox Technologies, Ltd. and Celestica to Develop 20 Innovative NVMe-oF Architectures 10 0

P/E Average

14 All Rights Reserved to 7 Mile Advisors Revenue Multiples - Plexus Corp. PUBLIC BASKET CONSTITUENTS 1.0x 0.8x Plexus Corp. 0.6x 0.4x Plexus Corp., together with its subsidiaries, provides electronic 0.2x manufacturing services in the Americas, Europe, the Middle East, 0.0x Africa, and the Asia-Pacific. It offers product conceptualization solutions; and product design and value-engineering solutions, including program management, feasibility studies, specification development for TEV/Revenue Average product features and functionality, circuit design, field programmable gate array design, printed circuit board layout, embedded software design, mechanical design, test specifications development and product EBITDA Multiples - Plexus Corp. verification testing, and automated production solutions and complex 15 automation design. The company also provides commercialization 12 solutions, such as prototyping, new product introduction, design for supply chain, test development, and transition management; 9 manufacturing solutions; and fulfillment and logistics solutions. In 6 addition, it offers sustaining solutions, which include aftermarket 3 services, such as screening, loaner program, part harvesting, in/out warranty repair, advanced exchange, part repair, upgrade, demo unit 0 management, warranty redemption, refurbishment, recycling, part fulfillment, decontamination, destruction, part fulfillment with warranty redemption, complaint handling, and part sales. The company provides TEV/EBITDA Average its solutions to companies in the networking/communications, healthcare/life sciences, industrial/commercial, and P/E Multiples - Plexus Corp. defense/security/aerospace sectors. Plexus Corp. was founded in 1979 30 and is headquartered in Neenah, Wisconsin. 24 18 12 6 0

P/E Average

15 All Rights Reserved to 7 Mile Advisors Revenue Multiples - Sanmina Corporation 0.6x PUBLIC BASKET CONSTITUENTS 0.5x 0.4x Sanmina Corporation 0.3x 0.2x Sanmina Corporation provides integrated manufacturing solutions, 0.1x components, products and repair, logistics, and after-market services 0.0x worldwide. The company offers product design and engineering solutions, including concept development, detailed design, prototyping, validation, preproduction, and manufacturing design release; TEV/Revenue Average manufacturing solutions of components, subassemblies, and complete systems; final system assembly and test services; direct order fulfillment and logistics services; after-market product service and EBITDA Multiples - Sanmina Corporation support; and supply chain management services. It also provides 12 interconnect systems, such as printed circuit board fabrication, backplane, cable assemblies, and plastic injection moldings; 9 mechanical systems comprising enclosures and precision machining; 6 memory, radio frequency, optical, and microelectronic solutions; defense and aerospace products; storage solutions; and cloud-based 3 manufacturing execution software. Sanmina Corporation offers its solutions primarily to original equipment manufacturers in the 0 communications networks, computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, energy, and automotive industries. The company TEV/EBITDA Average was formerly known as Sanmina-SCI Corporation and changed its name to Sanmina Corporation in November 2012. Sanmina Corporation P/E Multiples - Sanmina Corporation was founded in 1980 and is headquartered in San Jose, California. 25 20 Date Key Development Headline 15 1/29/18 Sanmina Corporation Seeks Acquisitions 10 9/6/17 Sanmina Seeks Acquisitions 6/6/17 Sanmina Corp. Seeks Acquisitions 5 0

P/E Average

16 All Rights Reserved to 7 Mile Advisors Revenue Multiples - Jabil Inc. PUBLIC BASKET CONSTITUENTS 0.5x 0.4x Jabil Inc. 0.3x 0.2x Jabil Inc. provides electronic manufacturing services and solutions 0.1x worldwide. The company operates through two segments, Electronics 0.0x Manufacturing Services and Diversified Manufacturing Services. It offers electronics design, production, and product management services. The company provides electronic circuit design services, such TEV/Revenue Average as application-specific integrated circuit design, firmware development and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed EBITDA Multiples - Jabil Inc. circuit board assemblies (PCBA). It also specializes in three- 8 dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as offers various 6 industrial design, advance mechanism development, and tooling 4 management services. In addition, the company provides computer- assisted design services consisting of PCBA design, and PCBA design 2 validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and 0 assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services that include product system, product safety, regulatory compliance, and reliability tests, as TEV/EBITDA Average well as manufacturing test solution development services. Jabil Inc. was founded in 1966 and is headquartered in St. Petersburg, Florida. P/E Multiples - Jabil Inc. 100 Date Key Development Headline 80 9/4/17 MGS Mfg. Group, Inc. acquired 125,000-square-foot 60 injection molding facility in Juarez from Jabil Inc. (NYSE:JBL). 40 9/1/17 Enviroleach Announces Strategic Global Partnership with 20 Jabil for E-Waste Processing 0 8/10/17 Jabil Circuit Team Up with eyeSight Technologies to Develop Next-Generation In-Car Sensing Technology P/E Average

17 All Rights Reserved to 7 Mile Advisors Revenue Multiples - Flex Ltd. 0.6x PUBLIC BASKET CONSTITUENTS 0.5x 0.4x Flex Ltd. 0.3x 0.2x Flex Ltd. provides design, engineering, manufacturing, and supply chain 0.1x services and solutions to original equipment manufacturers worldwide. 0.0x It offers innovation services, such as innovations labs for supporting customer design and product development services from early concept stages; collective innovation platform, an ecosystem of technology TEV/Revenue Average solutions; Lab IX, a startup accelerator program; centers of excellence solutions in critical areas; interconnect technology center for printed circuits; and CloudLabs that enables customers to accelerate a EBITDA Multiples - Flex Ltd. spectrum of cloud, converged infrastructure, and datacenter strategies. 12 The company also provides design and engineering services, including contract design and joint development manufacturing services, which 9 cover various technical competencies, such as system architecture, 6 user interface and industrial design, mechanical engineering, technology, enclosure systems, thermal and tooling design, electronic 3 system design, reliability and failure analysis, and component level development engineering; and systems assembly and manufacturing 0 services.. Flex Ltd. was founded in 1990 and is based in Singapore.

TEV/EBITDA Average Date Key Development Headline 7/27/17 i.am.plus electronics, inc. acquired Wink, Inc. from Flex Ltd. (NasdaqGS:FLEX). P/E Multiples - Flex Ltd. 5/16/17 Flex Enters into Joint Development and Licensing 40 Agreement with Caruma Technologies, Inc 32 4/3/17 Flex Ltd. (NasdaqGS:FLEX) completed the acquisition of 24 AGM Automotive from Triangle Capital Corporation, Trive 16 Capital and others for approximately $220 million. 8 0

P/E Average

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close-knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. Securities offered through 7M Securities LLC. Leroy Davis, Partner 704.899.5962 [email protected] Tripp Davis, Partner 704.899.5762 [email protected] Andy Johnston, Partner 704.899.5961 [email protected] Tom Dinnegan, Managing Director 310. 426.2410 [email protected] Ben Lunka, Managing Director 704.496.2995 [email protected] Jeff Stoecklein, Managing Director 312-373-3737 [email protected] Kristina Sergueeva, Director 704.899.5149 [email protected] Neil Churman, Director 704.899.5960 x 121 [email protected] John Cooper, Director 704.973.3996 [email protected] Tim Frye, Director 704.973.3994 [email protected] Casey Augustine, Business Development - Manager 704.973.3999 [email protected] Nicholas Prendergast, Financial Analyst 704.899.5960 [email protected] Ariail Siggins, Marketing Director 704.899.5960 x 123 [email protected] Rory Julyan, Associate 704.899.5960 [email protected] Chevonese Dacres, Analyst 360.499.1502 [email protected] Charlotte | Los Angeles | Tampa | Houston | Chicago