SMTC CEO, Ed Smith, presents at FOM 2023 Boston.

1. 2023
REGAINING CONTROL IN THE NEW SUPPLY CHAIN
THE VIEWS AND OPINIONS EXPRESSED IN THIS
DOCUMENT ARE THOSE OF THE SPEAKERS AND DO NOT
NECESSARILY REFLECT THE VIEWS OR POSITIONS OF ARROW
ELECTRONICS AND ITS ENTITIES.

2. Supporting a
Dynamic Marketplace
Chief Executive Officer
SMTC
ED
SMITH
BOSTON, MA
20
23

3. SUPPORTING A DYNAMIC
MARKETPLACE
Edward Smith
President & Chief Executive Officer
SMTC

4. Product Cancellations
Strictly Confidential

5. Sales Performance MoM
Strictly Confidential

6. FREIGHT PRICES
GLOBAL SUPPLY CHAIN PRESSURE INDEX
Supply chain pressures are beginning to
ease, but tangible effects to participants
at SMTC’s position in the “chain” are still
working their way through the funnel
based on current trends. Improvement in
NWC is expected next year.
Seeing leading indicators of supply
chain improvement but impacts
on participants near end of the
“chain” like SMTC take time to
work through given current length
of the “chain” . In SMTC’s case,
showing material resolution of
supply chain improving in the back
half of ’23.
Supply Chain Pressures
Strictly Confidential

7. Q2 Inventory Tracker Points to Another Record High
Strictly Confidential

8. Inventory Benchmarking
Strictly Confidential
Inventory Turns (Q2 ‘23)
2.8x 3.6x 3.3x 4.3x 3.5x 3.4x 1.6x 4.1x 3.0x
Inventory Days Delta
21
-29
16
18
-31
-4
73
-3
7
6
-29
4
6
-56
-19
69
-6
14
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
70
Benchmark Celestica Flex Jabil Key Tronic Kimball Plexus Sanmina SMTC
vs 12/31/21 vs 12/31/21
vs 12/31/22 vs 12/31/22
Inventory Days (Q2 ‘23)
129
101
110
85
103
108
88
123
Benchmark
Celestica
Flex
Jabil
Key Tronic
Kimball
Plexus
Sanmina
SMTC
231

9. While it will vary by customer based on a variety of factors, an overall goal of 25%+ coverageof inventory by customer deposits
seems to be industry standard
Customer Deposits
Company Q1 ’22 Q1 ’23 Δ Delta Inc. (x)
Benchmark 21% 20% -1% 1.0x
Celestica 22% 32% 9% 1.4x
Flex 23% 27% 4% 1.2x
Jabil 17% 26% 9% 1.5x
Plexus 23% 25% 2% 1.1x
Mean 21% 26% 5% 1.2x
Q2 ‘22 vs Q2 ‘23 Customer Deposits (% of Total Inventory)
While it will vary by customer based on a variety of factors, an overall goal of 25%+
coverage of inventory by customer deposits seems to be industry standard.

10. Thank You
Edward Smith
President & Chief Executive Officer
SMTC
Connect with me
on LinkedIn