Slide 1: Q3 FY23 Financial Results
Q3 FY23 Financial Results July 31, 2023
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Kurt Adzema Chairman & CEO EVP & CFO 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including our financial outlook for the fourth quarter and our expectations for growth in revenue and non-GAAP earnings per share in fiscal 2023 should such outlook be achieved, constitute forward-looking statements within the m
Slide 4: Financial Overview
Financial Overview Kurt Adzema
Slide 5: Q3'23 Non-GAAP Actual Results vs Outlook
Q3’23 Non-GAAP Actual Results vs Outlook Q3’23 Outlook WAS Revenue $2.21B $2.2B - $2.3B Gross Margin 8.6% 8.2% - 8.7% Operating Margin 5.7% 5.5% - 6.0% Diluted EPS $1.55 $1.50 - $1.60 Solid Execution Refer to GAAP to non-GAAP reconciliation on slide 21. 5
Slide 6: Y/Y P&L Performance
Y/Y P&L Performance ($ in millions, except per share data) Non-GAAP Non-GAAP Non-GAAP Revenue Gross Profit / Margin Operating Income / Margin Diluted Earnings Per Share $189 $1.55 9% $2,207 23% $2,023 $166 $126 $107 $1.26 8.6% 8.2% 5.7% 5.3% Q3'22* Q3'23 Q3'22* Q3'23 Q3'22* Q3'23 Q3'22* Q3'23 *Resta
Slide 7: Q/Q and Y/Y P&L Performance
Q/Q and Y/Y P&L Performance ($ in millions, except per share data) Three Month Periods Q3’23 Q2’23 Q3’22* GAAP: Revenue $2,207 $2,320 $2,023 Gross profit $183 $191 $162 Gross margin 8.3% 8.2% 8.0% Operating income $107 $121 $92 Operating margin 4.9% 5.2% 4.5% Diluted earnings per share $1.28 $1.33 $
Slide 8: Nine-Month P&L Performance
Nine-Month P&L Performance ($ in millions, except per share data) Non-GAAP Non-GAAP Non-GAAP Revenue Gross Profit / Margin Operating Income / Margin Diluted Earnings Per Share 21% $6,883 46% $4.84 $584 $402 $5,695 $462 $282 $3.31 8.5% 5.8% 8.1% 4.9% FY'22* FY'23 FY'22* FY'23 FY'22* FY'23 FY'22* FY'2
Slide 9: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in millions) Integrated Manufacturing Solutions Components, Products and Services $1,938 $1,930 $463 $458 $1,806 $1,822 $432 $431 $419 $1,625 14.5% 11.1% 11.8% 8.3% 10.2% 7.3% 7.1% 6.9% 7.5% 8.8% Q3'22** Q4'22** Q1'23** Q2'23 Q3'23 Q3'22** Q4
Slide 10: Strong Balance Sheet
Strong Balance Sheet ($ in millions) 7/1/2023 Key Takeaways: Cash and cash equivalents $ 657 Accounts receivable, net 1,280 Cash flow from operations: $57M Contract assets 459 Inventories 1,489 Net CapEx: $52M Property, plant and equipment, net 632 Shares repurchased in Q3: ~970,000 shares for
Slide 11: Balance Sheet Metrics
Balance Sheet Metrics Cash Cycle Days Non-GAAP Pre-Tax ROIC 58.5 38.0% 55.2 31.7% 33.5% 33.9% 49.8 48.2 52.3 29.7% Q3'22* Q4'22* Q1'23* Q2'23 Q3'23 Q3'22* Q4'22* Q1'23* Q2'23 Q3'23 Cash cycle days (a measure of how quickly we convert investments in inventory to cash) is calculated as days inventory
Slide 12: Q4'23 Outlook
Q4’23 Outlook The following outlook is for the fourth fiscal quarter ending September 30, 2023*. Q4’23 Revenue: $2.1B - $2.2B GAAP Diluted EPS: $1.24 - $1.34 Non-GAAP Diluted EPS: $1.47 - $1.57 *The outlook and certain statements made during this presentation, including our financial outlook for the
Slide 13: Business Overview
SANMINA ~ ey | Business Overview Jure Sola
Slide 14: Revenue by End-Market
Revenue by End-Market ($ in millions) Communications Networks & Cloud Q3’23 Y/Y Infrastructure Q3’22 Q2’23 Q3’23 Performance 39% Industrial/Medical/Defense and $1,222 $1,362 $1,344 10.0% Aerospace/Automotive Communications Networks and Q3’23 $801 $958 $863 7.7% Cloud Infrastructure Total $2,023
Slide 15: Q4'23 and FY'23 End-Market Outlook
Q4’23 and FY’23 End-Market Outlook I/M/D/A: Q4’23 FY’23 Strength in automotive and defense Y/Y Outlook Outlook Industrial and medical is stable Industrial/Medical/Defense and Slightly Up Up Aerospace/Automotive Communications/Cloud: Communications lower revenue due to inventory Communicati
Slide 16: Q4'23 and FY'23 Outlook
Q4’23 and FY’23 Outlook* Q4’23 Revenue Outlook Q4’23 Non-GAAP EPS Outlook $2.1B - $2.2B $1.47 - $1.57 ~35% ~14% $7.92B $6.88B $4.84 $4.68 Q1 – Q3 Q1 – Q3 FY'22** FY'23 (Outlook) FY'22** FY'23 (Outlook) Expect Strong Performance for FY’23 *The outlook and certain statements made during this presentat
Slide 17: Summary
Summary Our strategy continues to deliver results Customer base and pipeline of opportunities remain solid FY’23 expect to deliver revenue and non-GAAP EPS growth Investing to support long-term growth opportunities Focused on quality, delivery and consistently meeting the needs of our cust
Slide 18: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: July 1, 2023
Slide 19: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) July 1, October 1, 2023 2022 Restated (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 656,588 $ 529,857 Accounts receivable, net 1,279,966 1,138,894 Contract assets 459,145 475,721 Inventories 1,489,200 1,
Slide 20: Condensed Consolidated Statements of Income
Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended Nine Months Ended July 1, July 2, July 1, July 2, 2023 2022 2023 2022 Restated Restated Net sales $ 2,207,118 $ 2,023,361 $ 6,883,029 $ 5,694,757 Cost of sal
Slide 21: 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 Nine Month Periods Q3'23 Q2'23 Q1'23 Q4'22 Q3'22 FY23 FY22 Restated Restated Restated Restated GAAP Gross profit $ 183,208 $ 191,189 $ 195,386 $ 172,229 $ 162,185
Slide 22: Condensed Consolidated Cash Flow
Sanmina Corporation Condensed Consolidated Cash Flow ($ in thousands) (GAAP) (Unaudited) Three Month Periods Q3'23 Q2'23 Q1'23 Q4'22 Q3'22 Restated Restated Restated GAAP Net income before noncontrolling interest $ 81,737 $ 85,307 $ 95,114 $ 58,364 $ 77,222 Depreciation and amortization 29,898 29,28
Slide 23: Pre-Tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-Tax Return on Invested Capital (ROIC) ($ in thousands) (Unaudited) Three Month Periods Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Restated Restated Restated GAAP operating income $ 107,365 $ 120,601 $ 128,426 $ 103,350 $ 91,614 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP operating inc
Slide 24: Thank You
SANMINA ~ ey Thank You