Slide 1: Fourth Quarter and Fiscal Year 2021 Results
Fourth Quarter and Fiscal Year 2021 Results November 8, 2021
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Kurt Adzema Chairman & CEO EVP & CFO
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including our expectations for fiscal year 2022, the financial outlook for the first quarter of fiscal year 2022, our expectations for an improvement in margins and revenue and expectations for future inventory levels, constitut
Slide 4: Financial Review
Financial Review Kurt Adzema
Slide 5: Q4'21 Financial Highlights
Q4’21 Financial Highlights Q4’21 Outlook WAS Revenue $1.64B $1.65B - $1.75B Non-GAAP Gross Margin 8.2% 8.1% - 8.6% Non-GAAP Operating Margin 4.8% 4.6% - 5.2% Non-GAAP Diluted EPS $0.95 $0.93 - $1.03 5
Slide 6: P&L Q/Q Performance
P&L Q/Q Performance ($ in Millions, except per share data) Revenue Non-GAAP Gross Profit / Margin $1,875 $156 $1,755 $1,700 $146 $146 $141 $1,658 $1,644 $135 8.3% 8.3% 8.6% 8.5% 8.2% Q4'20* Q1'21 Q2'21 Q3'21 Q4'21 Q4'20* Q1'21 Q2'21 Q3'21 Q4'21 Non-GAAP Operating Income / Margin Non-GAAP Diluted Ear
Slide 7: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,541 $1,458 $1,365 $1,342 $1,320 $365 $366 $350 $357 $324 7.6% 14.2% 7.2% 7.3% 12.4% 12.4% 12.8% 6.9% 6.8% 11.1% Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'20 Q1'21 Q2'
Slide 8: Summary Financial Results
Summary Financial Results ($ in Millions, except per share data) Q4'21 Q3'21 Q4'20* FY'21 FY'20** Y/Y Revenue $1,644 $1,658 $1,875 $6,757 $6,960 -2.9% GAAP Gross Profit $131 $137 $152 $552 $526 5.0% Gross Margin % 8.0% 8.2% 8.1% 8.2% 7.6% 60 bps Operating Income $67 $74 $82 $281 $228 23.5% Operating
Slide 9: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns $1,037 $861 $893 $819 $785 $624 $650 $516 $575 7.3x 7.7x 7.7x $481 7.2x 6.3x Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Annualized Inventory turns (a measure of how quickly we sell inventory) are cal
Slide 10: Consistent Cash Generation
Consistent Cash Generation ($ in Millions) Cash Flow From Operations $383 Q4’21 $338 $301 Cash flow from operations: $92M Free cash flow: $65M FY'19 FY'20 FY'21 Free Cash Flow Proven Track Record in a $256 $274 $236 Dynamic Supply Environment FY'19 FY'20 FY'21 Detailed cash flow statement provid
Slide 11: Net Capital Expenditures
Net Capital Expenditures ($ in Millions) Net Capital Expenditures Q4’21: $29.5M Leveraging existing manufacturing capacity $127 Continue to invest where needed to support organic growth $72 $64 FY'19 FY'20 FY'21 Continue to Invest in Technology/Capabilities 11
Slide 12: Expanded Share Repurchase Program
Expanded Share Repurchase Program Q4 FY’21: Repurchased 827,000 shares for $32M FY’21: Repurchased 1.5M shares for $54M Since FY’14: Repurchased 34.3M shares for approximately $869M At the end of Q4: $81M remained authorized under existing programs Board authorized additional repurchase of
Slide 13: Q1'22 Outlook
Q1’22 Outlook The following outlook for the first fiscal quarter ended January 1, 2022. These statements are forward-looking and actual results may differ Demand remains strong materially. Expect continued supply challenges Revenue: $1.6B - $1.7B Confident that our lean manufacturing business
Slide 14: CEO Remarks
CEO Remarks - Jure Sola \ : SANMINA }
Slide 15: Y/Y Non-GAAP Financial Highlights
Y/Y Non-GAAP Financial Highlights ($ in Millions, except per share data) Gross Profit / Margin Operating Income / Margin Diluted Earnings Per Share Free Cash Flow $3.97 $274 $569 $236 $538 $334 $291 $3.05 8.4% 7.7% 4.9% 4.2% FY'20 FY'21 FY'20 FY'21 FY'20 FY'21 FY'20 FY'21 Gross margin 70 bps O
Slide 16: Revenue by End-Market
Revenue by End-Market Communications Networks & Cloud Infrastructure Q4’21 Q3’21 Q4’20* FY’21 FY’20 44% ($ in Millions) Communications Networks & $724 $701 $759 $2,867 $2,833 Cloud Infrastructure Industrial/Medical/ Q4’21 Defense/Automotive $920 $957 $1,116 $3,890 $4,128 Total $1,644 $1,658 $1,875 $
Slide 17: Q1'22 End-Market Outlook
Q1’22 End-Market Outlook Communications Networks and Cloud Infrastructure Q/Q: Slightly UP I/M/D/A Q/Q: Slightly Q/Q: FLAT to UP UP 17
Slide 18: Q1 and FY'22 Outlook
Q1 and FY’22 Outlook Q1’22 Outlook FY’22 Outlook Revenue Revenue $1.6B - $1.7B Growth Non-GAAP Gross Margin 8.0% - 8.6% Non-GAAP Margin EPS Diluted EPS Non-GAAP $0.90 - $1.00 Expansion Growth Operating Margin 4.6% - 5.2% Cash Generation Cash Generation Positive In line with FY’21 18
Slide 19: Management Priorities - FY'22 and Beyond
Management Priorities - FY’22 and Beyond Focused on Maximizing Shareholder Value 19
Slide 20: Summary
Summary FY’21 non-GAAP margin expansion of 70 bps, non-GAAP EPS growth of 30% and $338M cash flow from operations Diverse portfolio of leading technology and solutions Operating with agility, successfully navigating market dynamics Strong balance sheet provides financial flexibility Well Pos
Slide 21: Consolidated Financial Statements Reconciliation of GAAP to Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP to Non-GAAP Quarter Ended October 2, 2021
Slide 22: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) October 2, October 3, 2021 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 650,026 $ 480,526 Accounts receivable, net 1,192,434 1,043,334 Contract assets 348,741 396,583 Inventories 1,036,511 861,281
Slide 23: Condensed Consolidated Statements of Income
Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended Twelve Months Ended October 2, October 3, October 2, October 3, 2021 2020 2021 2020 Net sales $ 1,643,976 $ 1,874,958 $ 6,756,643 $ 6,960,370 Cost of sales 1
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
Sanmina Corporation Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts) (Unaudited) Three Month Periods Twelve Month Periods Q4'21 Q3'21 Q2'21 Q1'21 Q4'20 FY21 FY20 GAAP Gross Profit $ 130,882 $ 136,590 $ 143,098 $ 141,235 $ 151,931 $ 551,805 $ 525,707 GAAP gross mar
Slide 25: Pre-tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-tax Return on Invested Capital (ROIC) (in thousands) (Unaudited) Three Month Periods Q4 FY21 Q3 FY21 Q2 FY21 Q1 FY21 Q4 FY20 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 66,753 $ 74,265 $ 64,723 $ 75,559 $ 82,034 x 4.0 4.0 4.0 4.0 3.7 Annualized GAAP oper
Slide 26: Condensed Consolidated Cash Flow Statement
Sanmina Corporation Condensed Consolidated Cash Flow Statement (in thousands) (Unaudited) Three Month Periods Twelve Month Periods Q4'21 Q3'21 Q2'21 Q1'21 Q4'20 FY21 FY20 FY19 GAAP Net Income $ 56,565 $ 117,375 $ 47,037 $ 48,021 $ 51,606 $ 268,998 $ 139,713 $141,515 Depreciation and amortization 27,
Slide 27: SANMINA
SANMINA