Slide 1: Sanmina Q2 FY'18 Results
Sanmina Q2 FY’18 Results April 23, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
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 2018 and improvements in the second half of 2018, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Sec
Slide 3: Financial Results
Financial Results (Unaudited) Three Month Period ($ in millions, except per share data) Q2’18 Q1’18 Q2’17 GAAP: Revenue $1,676 $1,745 $1,682 Gross profit $115 $109 $133 Operating expense $66 $96 $75 Operating income $49 $14 $58 Other expense $7 $3 $1 Taxes $17 $166 $25 Net income (loss) $25 ($155) $
Slide 4: 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 $1,408 $1,440 $1,429 $1,382 $1,375 $365 $350 $357 $357 $346 7.6% 7.3% 6.5% 6.3% 10.2% 5.8% 8.8% 9.1% 8.4% 7.3% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q3'17 Q4'17 Q
Slide 5: Non-GAAP P&L Performance
Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $1,755 $1,745 $1,711 $136 $133 $1,682 $1,676 $126 $117 $112 8.1% 7.8% 7.2% 7.0% 6.4% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Operating Income / Margin Earnings Per Share $71 $71 $61 $0.7
Slide 6: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 3/31/18 12/30/17 Cash and cash equivalents $405 $405 Accounts receivable, net 1,088 1,122 Inventories 1,122 1,080 Property, plant and equipment, net 635 635 Deferred tax assets 355 357 Other assets 175 161 Total assets $3,779 $3,759 Accounts payable $1,224 $1,26
Slide 7: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns $1,080 $1,122 $1,019 $1,047 $1,052 $433 $436 $407 $405 $405 6.2x 6.1x 6.2x 6.1x 5.7x Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Inventory turns (annualized) are calculated as the ratio of four times
Slide 8: Q3'18 Outlook
Q3’18 Outlook The following outlook is for the third fiscal quarter ending June 30, 2018. These statements are forward- looking and actual results may differ materially. Revenue: $1.70B - $1.75B GAAP Diluted EPS(1) : $0.34 - $0.42 Non-GAAP Diluted EPS: $0.53 - $0.61 (1) Includes stock-based compensa
Slide 9: Sanmina CEO Remarks
Sanmina CEO Remarks April 23, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 10: Q2'18 Revenue Breakdown By End-Market
Q2’18 Revenue Breakdown By End-Market Industrial/Medical/ Defense 45% Communications Networks 38% Embedded Computing & Storage 17% Industrial/Medical/Defense Communications Networks Embedded Computing & Storage (Industrial equipment, energy, oil and gas, medical (Networking, optical & wireless infra
Slide 11: Q3'18 End-market Outlook
Q3’18 End-market Outlook Industrial/Medical/Defense (Industrial equipment, energy, oil and gas and medical equipment, aerospace & defense) Communications Networks FLAT (Networking, optical & wireless infrastructure) Embedded Computing & Storage (Casino gaming equipment, set-top boxes, cinematogr
Slide 12: Summary
Summary Q2’18 – Seasonally soft quarter – Results were better than expected – Cost structure improved – Yields improved – Access to critical components remained challenging – Sequential and year over year growth in Medical, Defense and Automotive Q3’18 – New programs will continue ramp – Solid p
Slide 13: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Sanmina Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended March 31, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 14: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet March 31, September 30, ($ in thousands) 2018 2017 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 405,277 $ 406,661 Accounts receivable, net 1,087,713 1,110,334 Inventories 1,122,018 1,051,669 Prepaid expenses and other current assets 55,510
Slide 15: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Six Months Ended March 31, April 1, March 31, April 1, ($ in thousands, except per share data) 2018 2017 2018 2017 Net sales $ 1,675,629 $ 1,682,262 $ 3,420,429 $ 3,402,239 Cost of sales 1,560,931 1,549,052 3,196,265
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q2'18 Q1'18 Q4'17 Q3'17 Q2'17 GAAP Gross Profit $ 114,698 $ 109,466 $ 123,851 $ 130,688 $ 133,210 GAAP gross margin 6.8% 6.3% 7.1% 7.6% 7.9% Adjustments Stock compensation expense (1) 1,851 2,
Slide 17: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q2 FY18 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 48,774 x 4 Annualized GAAP operating income 195,096 Average invested capital (1) ÷ 1,321,166 GAAP pre-tax ROIC 14.8% Non-GAAP operating income $ 52,127 x 4 Annualized non-G
Slide 18: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods ($ in thousands) Q2'18 Q1'18 Q2'17 GAAP Net Income $ 24,632 $ (154,910) $ 31,717 Depreciation and amortization 29,879 29,623 29,277 Other, net* 11,676 171,685 19,021 Net change in net working capital (40,504) (37,958) 8,706 Cash provid
Slide 19: What we make, makes a difference
What we make, makes a difference” <_ wat SANMINA