Slide 1: First Quarter Fiscal 2017
First Quarter Fiscal 2017 Quarter Ended December 31, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the second quarter fiscal year 2017 and expectations for fiscal 2017 being another growth year, constitute forward-looking statements within the meaning of the safe harbor provisions of Sectio
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q1'17 (A) Q1'17 Outlook Revenue: $1.72B $1.675 - $1.725B Non-GAAP Diluted earnings per share: $0.75 $0.65 - $0.70 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Periods ($ in millions, exc ept per share data) Q1'17 Q4'16 Q1'16 GAAP: Revenue $1,720 $1,666 $1,535 Gross profit $132 $127 $124 Operating expense $74 $72 $70 Operating income $59 $55 $54 Other expense $4 $3 $6 Taxes $10 ($49) $21 Net income $45 $101 $27 Dil
Slide 5: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ 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) 12/31/16 10/1/16 Cash and cash equivalents $405 $398 Accounts receivable, net $993 $974 Inventories $964 $946 Property, plant and equipment, net $621 $618 Deferred tax assets $513 $514 Other assets $172 $175 Total assets $3,668 $3,625 Accounts payable $1,171 $1,
Slide 8: Balance Sheet Metrics
Balance Sheet Metrics ($ 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: Q2'17 Outlook
Q2’17 Outlook(1) The following outlook is for the second fiscal quarter ending April 1, 2017. These statements are forward-looking and actual results may differ materially. Revenue: $1.675 - $1.725B Non-GAAP EPS: $0.67 - $0.72 (1) Outlook for the quarter ending April 1, 2017 is provided only on a no
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: Q1'17 Revenue Breakdown By End-Market
Q1’17 Revenue Breakdown By End-Market Communications Networks 38% Embedded Computing & Storage 17% Industrial/Medical/ Embedded Computing Defense 45% & Storage 17% Industrial/Medical/Defense Communications Networks Embedded Computing & Storage (Industrial equipment, energy, oil and gas, (Networking,
Slide 12: Q2'17 End-Market Outlook
Q2’17 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 Stable (Industrial equipment, energy, oil and gas an
Slide 13: R&D, NPI to Direct Fulfillment – One-Stop Shop
R&D, NPI to Direct Fulfillment – “One-Stop Shop” New Product Volume Sustaining R&D Introduction Manufacturing Engineering, EOL Design & Introduction Regional Manufacturing Logistics Close to Customer Transfer for Best Solution BTO, CTO, Direct Fulfillment Product Design, DFx, Global/Region
Slide 14: Summary
Summary Q1’17: Revenue growth – In line with guidance Consistent operating margin EPS expanded– up 4% sequentially and 30% year-over-year Solid cash flow from operations Q2’17: Good demand Continue to generate cash FY’17: Strong first half, expect strong second half fiscal 2017
Slide 15: Reconciliation of GAAP vs Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs Non-GAAP Quarter Ended December 31, 2016
Slide 16: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet December 31, October 1, (in thousands) 2016 2016 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 405,240 $ 398,288 Accounts receivable, net 993,049 973,680 Inventories 963,905 946,239 Prepaid expenses and other current assets 55,394 57,445 Tot
Slide 17: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended December 31, January 2, (in thousands, except per share data) 2016 2016 Net sales $ 1,719,977 $ 1,534,714 Cost of sales 1,587,815 1,411,076 Gross profit 132,162 123,638 Operating expenses: Selling, general and adminis
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q1'17 Q4'16 Q1'16 GAAP Gross Profit $ 132,162 $ 127,271 $ 123,638 GAAP gross margin 7.7% 7.6% 8.1% Adjustments Stock compensation expense (1) 2,863 2,471 1,405 Amortization of intangible asset
Slide 19: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q1 FY17 GAAP operating income $ 58,656 x 4 Annualized GAAP operating income 234,624 Average invested capital (1) ÷ 1,170,448 GAAP pre-tax ROIC 20.0% Non-GAAP operating income $ 71,730 x 4 Annualized non-GAAP operating income 286,920 Average inves
Slide 20: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods (in thousands) Q1'17 Q1'16 GAAP Net Income $ 44,864 $ 27,138 Depreciation and amortization 28,972 25,751 Other, net* 14,098 17,648 Net change in net working capital (34,007) (7,877) Cash provided by operating activities 53,927 62,660 N
Slide 21: What we make, makes a difference
What we make, makes a difference” pa wat SANMINA