Slide 1: Fourth Quarter Fiscal 2016 Results
Fourth Quarter Fiscal 2016 Results Quarter Ended October 1, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the first quarter fiscal year 2017, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q4'16 (A) Q4'16 Outlook Revenue: $1.67B $1.675 - $1.725B Non-GAAP Diluted earnings per share: $0.72 $0.64 - $0.68 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Periods Twelve Month Periods ($ in millions, exc ept per share data) Q4'16 Q3'16 Q4'15 FY'16 FY'15 GAAP: Revenue $1,666 $1,669 $1,637 $6,481 $6,375 Gross profit $127 $127 $122 $514 $484 Operating expense $72 $72 $69 $289 $281 Operating income $55 $55 $53 $22
Slide 5: Segment Reporting – Revenue and Non-GAAP Gross Margin Q-Q
Segment Reporting – Revenue and Non-GAAP Gross Margin* Q-Q ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services Integrated Manufacturing Solutions Components, Products & Services PCB Assembly & Test Components Products Final System Assembly & Test ‒ Interconne
Slide 6: Non-GAAP P&L Metrics Q-Q
Non-GAAP P&L Metrics Q-Q ($ in Millions) Gross Profit / Margin Operating Income / Margin 6
Slide 7: Non-GAAP P&L Metrics Y-Y
Non-GAAP P&L Metrics Y-Y ($ in Millions) Gross Profit / Margin Operating Income / Margin 7
Slide 8: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 10/1/16 7/2/16 10/3/15 Cash and cash equivalents $398 $410 $412 Accounts receivable, net $974 1,000 $937 Inventories $946 913 $919 Property, plant and equipment, net $618 616 $591 Deferred tax assets $514 465 $497 Other assets $175 174 $137 Total assets $3,625 $
Slide 9: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns Inventory turns (annualized are calculated as the ratio of four times cost of sales for the quarter to average inventory). Cash Cycle Days Pre-Tax ROIC Cash cycle days is calculated as days inventory on hand (ratio o
Slide 10: Cash Utilization
Cash Utilization ($ in Millions) Cash Flow from Operations Utilization of Cash Flow from Operations M&A Stock 9% Repurchase 20% Gross Capital Expenditures 27% Debt Reduction 44% 10
Slide 11: Share Repurchase Program
Share Repurchase Program Last three years: $337 million in share repurchases $213 million authorized for future repurchases 11
Slide 12: Book Value Per Share
Book Value Per Share ey \ SANMINA $22.04 $19.48 FY'12 FY'13 FY'14 FY'15 FY'16 12
Slide 13: Q1'17 Outlook
Q1’17 Outlook(1) The following outlook is for the first fiscal quarter ending December 31, 2016. These statements are forward-looking and actual results may differ materially. Revenue: $1.675 - $1.725B Non-GAAP EPS: $0.65 - $0.70 (1) Outlook for the quarter ending December 31, 2016 is provided only
Slide 14: CEO Remarks
Pa wall SANMINA CEO Remarks Communications Networks e Industrial e« MedicalSystems e Defense & Aerospace « Embedded Computing & Storage What we make, makes a difference™
Slide 15: Q4'16 Revenue Breakdown By End-Market
Q4’16 Revenue Breakdown By End-Market Communications Networks 37% Industrial/Medical/ Defense 46% Embedded Computing & Storage 17% Industrial/Medical/Defense Communications Networks Embedded Computing & Storage (Industrial equipment, energy, oil and gas, (Networking, optical & wireless infrastructur
Slide 16: Q1'17 End-Market Outlook
Q1’17 End-Market Outlook Collaborative Integrated Direct Order Interconnect Mechanical Optical / RF Products and Design and Manufacturing Fulfillment Systems Systems Solutions Services Engineering Solutions and Logistics Industrial/Medical/Defense FLAT (Industrial equipment, energy, oil and gas and
Slide 17: Summary
Summary Q4’16: Solid operating margin improvement – up 50 bps Q-Q and 40 bps Y-Y EPS exceeded expectations – up 15% Q-Q and 26% Y-Y Strong cash flow FY’16: Pleased with our performance EPS expanded 15% Y-Y Solid cash flow from operations of $390M, $274M in free cash flow Diversifie
Slide 18: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended October 1, 2016
Slide 19: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet October 1, October 3, 2016 2015 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 398,288 $ 412,253 Accounts receivable, net 973,680 936,952 Inventories 946,239 918,728 Prepaid expenses and other current assets 57,445 55,047 Total current assets
Slide 20: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Twelve Months Ended October 1, October 3, October 1, October 3, (in thousands, except per share data) 2016 2015 2016 2015 Net sales $ 1,665,819 $ 1,636,578 $ 6,481,181 $ 6,374,541 Cost of sales 1,538,548 1,514,893 5,9
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods Twelve Month Periods ($ in thousands, except per share data) Q4'16 Q3'16 Q4'15 FY16 FY15 GAAP Gross Profit $ 127,271 $ 126,661 $ 121,685 $ 514,282 $ 483,856 GAAP gross margin 7.6% 7.6% 7.4% 7.9% 7.6% Adjustments Stock compensation e
Slide 22: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow Three Month Periods Twelve Month Periods Q4'16 Q4'15 FY16 FY15 GAAP Net Income $ 100,805 $ 315,382 $ 187,838 $ 377,261 Depreciation and amortization 29,682 26,378 111,910 100,567 Other, net* (38,968) (264,675) 11,666 (221,341) Change in net working capital 11,815 (78
Slide 23: What we make, makes a difference
What we make, makes a difference” pa wat SANMINA