Slide 1: Third Quarter Fiscal 2017
Third Quarter Fiscal 2017 Quarter Ended July 1, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the fourth quarter fiscal year 2017 and expectations for fiscal year 2017, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securiti
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q3'17 (A) Q3'17 Outlook Revenue: $1.71B $1.70 - $1.80B Non-GAAP Diluted earnings per share: $0.74 $0.72 - $0.77 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Periods ($ in millions, exc ept per share data) Q3'17 Q2'17 Q3'16 GAAP: Revenue $1,711 $1,682 $1,669 Gross profit $131 $133 $127 Operating expense $64 $75 $72 Operating income $67 $58 $55 Other expense $4 $1 $5 Taxes $26 $25 $20 Net income $36 $32 $30 Dilute
Slide 5: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services Integrated Manufacturing Solutions Components, Products & Services PCB Assembly & Test Components Products Final System Assembly & Test ‒ Interconnect S
Slide 6: Non-GAAP P&L Metrics
Non-GAAP P&L Metrics ($ in Millions) Gross Profit / Margin Operating Income / Margin 6
Slide 7: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 7/1/17 4/1/17 7/2/16 Cash and cash equivalents $436 $433 $410 Accounts receivable, net 1,036 971 1,000 Inventories 1,047 1,019 913 Property, plant and equipment, net 643 623 616 Deferred tax assets 484 501 465 Other assets 164 173 174 Total assets $3,809 $3,720
Slide 8: Balance Sheet Metrics
Balance Sheet Metrics ($ 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 Non-GAAP Pre-Tax ROIC Cash cycle days is calculated as days inventory on hand
Slide 9: Q4'17 Outlook
Q4’17 Outlook The following outlook is for the fourth fiscal quarter ending September 30, 2017. These statements are forward-looking and actual results may differ materially. Revenue: $1.725 - $1.775B GAAP Diluted EPS(1) : $0.61 - $0.67 Non-GAAP Diluted EPS: $0.73 - $0.79 (1) Includes stock-based co
Slide 10: CEO Remarks
SANMINA CEO Remarks — A ee \ : e bie q a . : fi “ Industrial Medical Systems Defense & Aerospace Communications Networks Computing & Storage
Slide 11: Q3'17 Revenue Breakdown By End-Market
Q3’17 Revenue Breakdown By End-Market Communications Networks 39% Embedded Computing & Storage 16% Industrial/Medical/ Embedded Computing Defense 45% & Storage 17% Industrial/Medical/Defense Communications Networks Embedded Computing & Storage (Industrial equipment, energy, oil and gas, (Networking,
Slide 12: Q4'17 End-Market Outlook
Q4’17 End-Market Outlook Collaborative Integrated Direct Order Interconnect Mechanical Optical / RF Products and Design and Manufacturing Fulfillment Systems Systems Solutions Services Engineering Solutions and Logistics Industrial/Medical/Defense (Industrial equipment, energy, oil and gas and med
Slide 13: Summary
Summary Q3’17: Good quarter Consistent operation margin Solid cash flow from operations YTD revenue growth of 6.2%, and non-GAAP EPS YTD growth of 23% Q4’17: Good demand continues New programs ramping Expect improvements in CPS gross margins FY’17: Confident in operational impr
Slide 14: Consolidated Financial Statements Reconciliation of GAAP vs Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs Non-GAAP Quarter Ended July 1, 2017
Slide 15: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet July 1, October 1, ($ in thousands) 2017 2016 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 435,500 $ 398,288 Accounts receivable, net 1,036,049 973,680 Inventories 1,046,842 946,239 Prepaid expenses and other current assets 45,940 57,445 To
Slide 16: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Nine Months Ended July 1, July 2, July 1, July 2, ($ in thousdands, except per share data) 2017 2016 2017 2016 Net sales $ 1,711,377 $ 1,669,474 $ 5,113,616 $ 4,815,362 Cost of sales 1,580,689 1,542,813 4,717,556 4,42
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q3'17 Q2'17 Q3'16 GAAP Gross Profit $ 130,688 $ 133,210 $ 126,661 GAAP gross margin 7.6% 7.9% 7.6% Adjustments Stock compensation expense (1) 1,880 2,035 1,542 Amortization of intangible asset
Slide 18: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q3 FY17 GAAP operating income $ 66,576 x 4 Annualized GAAP operating income 266,304 Average invested capital (1) ÷ 1,197,667 GAAP pre-tax ROIC 22.2% Non-GAAP operating income $ 71,377 x 4 Annualized non-GAAP operating income 285,508 Average inves
Slide 19: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods ($ in thousands) Q3'17 Q2'17 Q3'16 GAAP Net Income $ 36,404 $ 31,717 $ 29,534 Depreciation and amortization 29,271 29,277 28,785 Other, net* 24,010 19,021 16,495 Net change in net working capital (30,664) 8,706 6,659 Cash provided by o
Slide 20: What we make, makes a difference
What we make, makes a difference” pa wat SANMINA