Celestica Inc. · TSX:CLS
Celestica — Q4 2020 Earnings Presentation
20 slides from Celestica's earnings presentation, Jan 27, 2021
Slide 1: Fourth Quarter 2020 Financial Results
Fourth Quarter 2020 Financial Results January 27, 2021 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward- Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to our future growth; trends in the electronics manufacturing services (EMS) industry and our segments (including the components thereof), and the
Slide 3: CEO Remarks
CEO Remarks 3
Slide 4: Lifecycle Solutions
Lifecycle Solutions Revenue = ATS Segment Revenue + HPS Revenue Lifecycle Solutions Lifecycle Solutions Revenue 2017 2020 ATS HPS Lifecycle Solutions Lifecycle Solutions 39% 51% Core Core CCS** CCS** 61% 49% Long program lifecycles Extensive patent portfolio Highly regulated Product roadmaps
Slide 5: Q4 2020 Highlights
Q4 2020 Highlights $US Q4 2020 Comments 7% YTY Decrease; Revenue $1.39B 12% YTY Decrease in ATS 4% YTY Decrease in CCS IFRS Net Earnings $20.1M Up $27.1M YTY IFRS Earnings per Share - diluted $0.16 Up 21 cents YTY Non-IFRS Operating Margin 3.6% Up 0.7% YTY1 Non-IFRS Adjusted EPS – diluted $0.26 Up 8
Slide 6: ATS and CCS Segment Revenue and Profitability
ATS1 and CCS2 Segment Revenue and Profitability Q4 2019 Revenue 4 Q4 2020 Revenue 5 Year over 4Q20 Revenue $ Sequential Year ATS Down 2% Down 12% ATS ATS CCS Down 15% Down 4% 39% 37% CCS CCS Communications Down 15% Up 2% 61% 63% Enterprise3 Down 14% Down 13% Segment 4Q19 4Q20 Income6 Q4 2019 % of To
Slide 7: Q4 2020 Highlights
Q4 2020 Highlights¹ B/(W) QTQ B/(W) YTY $US Millions (Except for per share amounts and %) Q4 2020 (vs. Q3 2020) (vs. Q4 2019) Revenue $1,387 ($163.9) ($105.1) IFRS Net Earnings $20.1 ($10.3) $27.1 IFRS Earnings per Share - diluted $0.16 ($0.08) $0.21 Non-IFRS Adjusted Gross Margin 8.4% 0.3% 1.4% Non
Slide 8: Working Capital / Capex / Non-IFRS Free Cash Flow
Working Capital / Capex / Non-IFRS Free Cash Flow1 Q4 2020 ($US) Inventory turns decreased by 0.3x sequentially 4.4 inventory turns2 (Inventory down $114M sequentially and up $99M YTY) $19M Capex ~1% of Revenue $18.5M Free Cash Flow1 Strong FY20 Free Cash Flow of $126M Cash Cycle Days2 4Q19 3Q20 4Q2
Slide 9: Balance Sheet
Balance Sheet $US At December 31, 2020 Cash and cash equivalents $464M Revolver (excluding L/Cs) - Term Loans $470M Net Debt: $6M As of December 31, 2020, Celestica’s non-IFRS debt leverage ratio was 1.6x. See the Appendix for a reconciliation of non-IFRS debt leverage ratio to the most directly com
Slide 10: Q1 2021 Outlook
Q1 2021 Outlook1 $US Revenue $1.175B - $1.275B 3.4% Non-IFRS Operating Margin at the mid-point of revenue and non-IFRS adjusted EPS guidance ranges Non-IFRS Adjusted EPS – diluted $0.18 - $0.24 Non-IFRS Adjusted SG&A $51M - $53M Q1 2021 Non-IFRS Tax Rate Estimate Non-IFRS Adjusted Effective Tax Rate
Slide 11: Q1 2021 End Market Revenue Outlook
Q1 2021 End Market Revenue Outlook Year over Year Revenue % Change ATS1 Decrease mid-single digit Communications Decrease high-single digit Enterprise2 Decrease low-teens 1 ATS consists of A&D, Industrial, Energy, HealthTech, and Capital Equipment. 2 Enterprise consists of Servers and Storage. 11
Slide 12: Concluding Remarks
Concluding Remarks ‘Celestica”
Slide 13: ee . Celestica”
ee . Celestica” a on
Slide 14: Fourth Quarter 2020 Financial Results
Fourth Quarter 2020 Financial Results January 27, 2021
Slide 15: Appendix
Appendix oy ‘Celestica”
Slide 16: Segment Income and Margin
Segment Income and Margin1 * *Refers to notes to our Q4 2020 unaudited interim condensed consolidated financial statements (Q4 2020 Interim Financial Statements) 1 Segment income is defined as a segment’s net revenue less its cost of sales and its allocable portion of selling, general and administra
Slide 17: IFRS to non-IFRS Reconciliation
IFRS to non-IFRS Reconciliation* 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2019 FY 2020 IFRS Revenue $ 1,433.1 $ 1,445.6 $ 1,517.9 $ 1,491.7 $ 1,318.6 $ 1,492.4 $ 1,550.5 $ 1,386.6 $ 5,888.3 $ 5,748.1 Net earnings (loss) 90.3 (6.1) (6.9) (7.0) (3.2) 13.3 30.4 20.1 70.3 60.6
Slide 18: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q2020 2Q2020 3Q 2020 4Q 2020 FY 2019 FY 2020 IFRS Net earnings (loss) $ 90.3 $ (6.1) $ (6.9) $ (7.0) $ (3.2) $ 13.3 $ 30.4 $ 20.1 $ 70.3 $ 60.6 As a percentage of revenue 6.3% (0.4%) (0.5%) -0.5% (0.2%) 0.9% 2.0% 1.4% 1.2% 1
Slide 19: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* (1) IFRS earnings (loss) per diluted share is calculated by dividing IFRS net earnings (loss) by the number of diluted weighted average shares outstanding (DWAS). In order to calculate IFRS loss per diluted share for Q1 2020, we used a DWAS of 129.0 million
Slide 20: Fourth Quarter 2020 Financial Results
Fourth Quarter 2020 Financial Results January 27, 2021