Slide 1: Q3 FY’22 Financial Results
Q3 FY’22 Financial Results August 1, 2022
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 outlook for the fourth quarter and fiscal year 2022 constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could
Slide 4: Financial Review
Financial Review Kurt Adzema
Slide 5: Q3’22 Non-GAAP Financial Highlights
Q3’22 Non-GAAP Financial Highlights Q3’22 Outlook WAS Revenue $2.02B $1.825B - $1.925B Gross Margin 8.4% 8.0% - 8.5% Operating Margin 5.5% 4.8% - 5.3% Diluted EPS $1.30 $1.05 - $1.15 Strong Demand and Solid Execution 5
Slide 6: P&L Performance
P&L Performance ($ in Millions, except per share data) Revenue Non-GAAP Gross Profit / Margin $169 $2,019 $149 $156 $1,912 $141 $135 $1,757 $1,658 $1,644 8.5% 8.5% 8.4% 8.2% 8.1% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Non-GAAP Operating Income / Margin Non-GAAP Diluted Earnings
Slide 7: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $428 $1,558 $1,625 $390 $1,342 $1,320 $1,425 $367 $350 $357 7.6% 7.5% 7.3% 12.8% 12.1% 11.9% 6.8% 7.0% 11.1% 11.6% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'
Slide 8: Strong Balance Sheet
Strong Balance Sheet ($ in Millions) 7/2/2022 Cash and cash equivalents $ 493 Accounts receivable, net 1,228 Debt to cash ratio: 0.64x Contract assets 459 Inventories 1,591 Liquidity: $1.3B Property, plant and equipment, net 546 Cash flow from operations: $102M Deferred tax assets 212 Other as
Slide 9: Balance Sheet Metrics
Balance Sheet Metrics Cash Cycle Days Non-GAAP Pre-Tax ROIC 58.4 58.1 31.6% 57.1 57.3 27.9% 56.4 25.9% 26.4% 23.8% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Cash cycle days (a measure of how quickly we convert investments in inventory to cash) is calculated as days inventory on han
Slide 10: Q4’22 Outlook
Q4’22 Outlook The following outlook for the fourth fiscal quarter ending October 1, 2022*. Q4’22 Revenue: $1.95B - $2.05B GAAP Diluted EPS: $1.09 - $1.19 Non-GAAP Diluted EPS: $1.27 - $1.37 *The outlook and certain statements made during this presentation constitute forward-looking statements within
Slide 11: CEO Remarks
CEO Remarks e Jure Sola S . Z SANMINA ;
Slide 12: Q3’22 Revenue by End-Market
Q3’22 Revenue by End-Market Communications Networks & Cloud Infrastructure Q3’22 Growth % Q2’22 Q1’22 Q4’21 Q3’21 40% ($ in Millions) Communications Networks & Q/Q: 5.9% $801 $757 $702 $724 $701 Cloud Infrastructure Y/Y: 14.4% Industrial/Medical/ Q3’22 Q/Q: 5.5% $1,218 $1,155 $1,055 $920 $957 Defens
Slide 13: Q4’22 End-Market Outlook
Q4’22 End-Market Outlook Broad-based Demand 13
Slide 14: Q4’22 and FY’22 Outlook
Q4’22 and FY’22 Outlook Q4’22 Revenue Outlook Q4’22 Non-GAAP EPS Outlook $1.95B - $2.05B $1.27 - $1.37 $6.76B $5.69B $3.97 $3.52 Q1 – Q3 Q1 – Q3 FY'21 FY'22 (Outlook) FY'21 FY'22 (Outlook) FY’22 To Be A Good Growth Year 14
Slide 15: Summary
Summary Q3’22 – Revenue: $2.02B, exceeded outlook - 5.6% sequentially, 21.8% y/y – Non-GAAP operating margin: 5.5% - expanded 50 bps – Non-GAAP diluted EPS: $1.30, exceeded outlook - 14.4% sequentially, 31.7% y/y – Free cash flow: $65M Q4’22 – Demand remains strong – Continue to work thr
Slide 16: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended July 2, 2022
Slide 17: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) July 2, October 2, 2022 2021 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 493,305 $ 650,026 Accounts receivable, net 1,228,435 1,192,434 Contract assets 459,306 348,741 Inventories 1,591,111 1,036,511 P
Slide 18: 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 2, July 3, July 2, July 3, 2022 2021 2022 2021 Net sales $ 2,019,059 $ 1,657,741 $ 5,687,914 $ 5,112,667 Cost of sales 1,853,870 1,521
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
Sanmina Corporation Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts) (Unaudited) Q3'22 Q2'22 Q1'22 Q4'21 Q3'21 GAAP Gross Profit $ 165,189 $ 152,447 $ 144,489 $ 130,882 $ 136,590 GAAP gross margin 8.2% 8.0% 8.2% 8.0% 8.2% Adjustments Stock compensation expense (1)
Slide 20: Condensed Consolidated Cash Flow
Sanmina Corporation Condensed Consolidated Cash Flow (In thousands) (Unaudited) Three Month Periods Q3'22 Q2'22 Q1'22 Q4'21 Q3'21 GAAP Net Income $ 79,543 $ 53,220 $ 58,634 $ 56,565 $ 117,375 Depreciation and amortization 27,065 27,567 27,465 27,452 27,373 Other, net 18,739 15,429 12,101 9,673 3,339
Slide 21: Pre-Tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-Tax Return on Invested Capital (ROIC) (In thousands) (Unaudited) Three Month Periods Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 94,618 $ 82,226 $ 81,433 $ 66,753 $ 74,265 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP oper
Slide 22: Sanmina
SANMINA