Slide 1: Second Quarter Fiscal 2017
Second Quarter Fiscal 2017 Quarter Ended April 1, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the third quarter fiscal year 2017 and expectations for the second half of fiscal 2017, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q2'17 (A) Q2'17 Outlook Revenue: $1.68B $1.675 - $1.725B Non-GAAP Diluted earnings per share: $0.76 $0.67 - $0.72 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Periods ($ in millions, exc ept per share data) Q2'17 Q1'17 Q2'16 GAAP: Revenue $1,682 $1,720 $1,611 Gross profit $133 $132 $137 Operating expense $75 $74 $76 Operating income $58 $59 $61 Other expense $1 $4 $6 Taxes $25 $10 $25 Net income $32 $45 $30 Dilute
Slide 5: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ 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) 4/1/17 12/31/16 4/2/16 Cash and cash equivalents $433 $405 $407 Accounts receivable, net 971 993 999 Inventories 1,019 964 923 Property, plant and equipment, net 623 621 612 Deferred tax assets 501 513 476 Other assets 173 172 182 Total assets $3,720 $3,668 $3,5
Slide 8: Balance Sheet Metrics
Balance Sheet Metrics ($ 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: Q3'17 Outlook
Q3’17 Outlook The following outlook is for the third fiscal quarter ending July 1, 2017. These statements are forward-looking and actual results may differ materially. Revenue: $1.7 - $1.8B GAAP Diluted EPS(1) : $0.65 - $0.70 Non-GAAP Diluted EPS: $0.72 - $0.77 (1) Includes stock-based compensation
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: Q2'17 Revenue Breakdown By End-Market
Q2’17 Revenue Breakdown By End-Market Communications Networks 37% Embedded Computing & Storage 17% Industrial/Medical/ Embedded Computing Defense 46% & Storage 17% Industrial/Medical/Defense Communications Networks Embedded Computing & Storage (Industrial equipment, energy, oil and gas, (Networking,
Slide 12: Q3'17 End-Market Outlook
Q3’17 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 13: Summary
Summary Q2’17: Consistent gross and operating margin Non-GAAP EPS expanded Solid cash flow from operations Q3’17: Good demand Remain focused on quality of growth FY’17: Solid first half, expect stronger second half fiscal 2017 Continue to drive improvements and shareholder value
Slide 14: Consolidated Financial Statements Reconciliation of GAAP vs Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs Non-GAAP Quarter Ended April 1, 2017
Slide 15: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet April 1, October 1, (in thousdands) 2017 2016 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 432,527 $ 398,288 Accounts receivable, net 971,363 973,680 Inventories 1,019,155 946,239 Prepaid expenses and other current assets 54,362 57,445 Tota
Slide 16: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, (in thousands, except per share data) 2017 2016 2017 2016 Net sales $ 1,682,262 $ 1,611,174 $ 3,402,239 $ 3,145,888 Cost of sales 1,549,052 1,474,462 3,136,867 2,88
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q2'17 Q1'17 Q2'16 GAAP Gross Profit $ 133,210 $ 132,162 $ 136,712 GAAP gross margin 7.9% 7.7% 8.5% Adjustments Stock compensation expense (1) 2,035 2,863 1,932 Amortization of intangible asset
Slide 18: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q2 FY17 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 58,166 x 4 Annualized GAAP operating income 232,664 Average invested capital (1) ÷ 1,180,950 GAAP pre-tax ROIC 19.7% Non-GAAP operating income $ 70,929 x 4 Annualized non-G
Slide 19: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods (in thousands) Q2'17 Q1'17 Q2'16 GAAP Net Income $ 31,717 $ 44,864 $ 30,361 Depreciation and amortization 29,277 28,972 27,692 Other, net* 19,021 14,098 8,933 Net change in net working capital 8,706 (34,007) 75,663 Cash provided by ope
Slide 20: What we make, makes a difference
What we make, makes a difference” pa wat SANMINA