Sanmina Corporation · NASDAQ:SANM

Sanmina — Investor Day (May 2018)

95 slides from Sanmina's investor day presentation, May 22, 2018

1. Slide 1: Sanmina Everywhere, Everyday Investor and Analyst Day

   Sanmina I Everywhere, Everyday Investor and Analyst Day 1

2. Slide 2: Safe Harbor Statement

   Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the third quarter and the fiscal year 2018, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual

3. Slide 3: Today's Agenda

   Today’s Agenda  Sanmina Business Overview  Mission Critical Markets – Panel  Innovation and Sanmina 4.0 – Panel  Sanmina Financial Overview  Summary and Closing Remarks  Q&A 3

4. Slide 4: Business Overview

   Sanmina I Everywhere, Everyday Business Overview 4

5. Slide 5: Today's Goals

   Today’s Goals  Meet the Team  Sanmina Value Proposition  Opportunities for Growth  Target Financial Model 5

6. Slide 6: Management Here Today

   Management Here Today Bob Eulau Dave Anderson Gerry Fay Marco Gonzalez Mike Landy Manesh Patel Anca Thompson CEO CFO CBO COO, Americas COO, EMEA & Asia CIO CQO Charlie Mason Mike Underwood Geoff Gagne Max Klein, PhD Richard Vincent Gelston Howell Paige Bombino SVP, Medical President, SCI VP, Enginee

7. Slide 7: Agenda

   Agenda  Sanmina Profile  Vision and Mission  Customers and Markets  Technology Innovation  Sanmina 4.0  Summary 7

8. Slide 8: Sanmina Profile

   Sanmina Profile 1980 75+ 46K 3,000 $6.9 Founded in Factories in 23 Collaborators New Products Billion USD San Jose, CA Countries Launched / Yr Revenue FY17 TECHNOLOGY, ENGINEERING & MANUFACTURING GLOBAL SUPPLY CHAIN LEADERSHIP 8

9. Slide 9: Agenda

   Agenda  Sanmina Profile  Vision and Mission  Customers and Markets  Technology Innovation  Sanmina 4.0  Summary 9

10. Slide 10: Sanmina's Vision

    Sanmina’s Vision The trusted leader in providing products, services and supply chain solutions to accelerate customer success. 12

11. Slide 11: Sanmina's Mission

    Sanmina’s Mission Provide competitive advantage for customers with mission critical products, services and supply chain needs while driving value for customers, employees, and investors. 11

12. Slide 12: Sanmina's Business Strategy

    Sanmina’s Business Strategy  Target High Mix Markets with Mission Critical Products  Capture Operating Leverage in Our Model  Leverage Our Decades of Engineering Experience to Solve Problems  Invest in Design, Engineering and Technology Sustainable Profitable Growth 12

13. Slide 13: Financial Performance

    Financial Performance Revenue (in millions) Non-GAAP EPS $6,869 $2.87 $6,481 $2.54 $6,375 $6,217 $2.21 $1.99 $5,917 $1.44 FY'13 FY'14 FY'15 FY'16 FY'17 FY'13 FY'14 FY'15 FY'16 FY'17 13

14. Slide 14: Cash Flow From Operations

    Cash Flow From Operations ($ in Millions) $390 $318 $309 $251 $175 FY'13 FY'14 FY'15 FY'16 FY'17 Continue to Drive Strong Cash Flow 14

15. Slide 15: Operating Segments

    Operating Segments Components, Products & Integrated Manufacturing Services Solutions + Design & Engineering + SCI + Communications + Industrial + Interconnect Systems + Newisys + Medical + Automotive + Mechanical Systems + Viking + Cloud Solutions + Defense & Aerospace + Global Services + 42Q 15

16. Slide 16: The Value We Provide

    The Value We Provide Time to Market / Competitive Advantage / Supply Chain Simplification / Supply Agility & Visibility MARKET EXPERTISE TECHNOLOGY END TO END SOLUTIONS OPERATIONS INTELLIGENCE 16

17. Slide 17: Agenda

    Agenda  Sanmina Profile  Vision and Mission  Customers and Markets  Technology Innovation  Sanmina 4.0  Summary 17

18. Slide 18: EMS Market Growth

    EMS Market Growth 5.5% 354 Revenue forecast ($bn) 2016 2021E 272 5.1% 178 139 9.9% 4.1% 4.5% 58 (2.9%) 3.6% 16.2% 6.8% 36 (0.1%) 19 24 24 30 16 14 12 14 15 21 4 4 5 10 Computers Peripherals Consumer Servers & Networking Telecom Automotive Medical Industrial Total Devices Storage Source: IDC (Oct 201

19. Slide 19: End-Markets Served

    End-Markets Served 5) SANMINA COMMUNICATIONS MEDICAL CLOUD SOLUTIONS AUTOMOTIVE DEFENSE & AEROSPACE @ 19

20. Slide 20: Sanmina Target Markets

    Sanmina Target Markets 5.5% 354 Revenue forecast ($bn) 2016 2021E 272 5.1% 178 139 9.9% 4.1% 4.5% 58 (2.9%) 3.6% 16.2% 6.8% 36 (0.1%) 19 24 24 30 16 14 12 14 15 21 4 4 5 10 Computers Peripherals Consumer Servers & Networking Telecom Automotive Medical Industrial Total Devices Storage Source: IDC (Oc

21. Slide 21: Market Segment Transformation

    Market Segment Transformation Medical Medical 12% 16% Communications Communications Networks Networks Cloud Cloud Solutions 48% Solutions 38% 22% 10% FY2013 Q2 2018 I/A/D I/A/D 18% 36% Communications Networks Industrial/Automotive/Defense Medical Cloud Solutions (Networking, optical & wireless infra

22. Slide 22: Mission Critical Video

    Mission Critical Video “5 SANMINA 22

23. Slide 23: Medical: Value Proposition

    Medical: Value Proposition Dedicated RA/QA Life Cycle Support Global Medical Footprint Broad Product Expertise Organization (Design, Mfg, Logistics) Medical Regulatory 19 Certified Facilities Manufacturing Class 1,2 & 3, Finished Support Automation Product Expertise  Reduced regulatory risk  Great

24. Slide 24: Medical: End-to-End Services

    Medical: End-to-End Services Surgical Therapy Ultrasound JDM: High Volume Products Blood Diagnostic System Turnkey Product Design PCBA, Enclosures, Display Manufacturing Automation Manufacture & Repair Test Development Local NPI/Quickturn Sanmina Transfers to Volume Production & Complex Repair & Sup

25. Slide 25: Automotive Electronics Manufacturing: 20 Years of Experience

    Automotive Electronics Manufacturing: 20 Years of Experience  11 Automotive Manufacturing Facilities  LIDAR System Designs  Electric Vehicle Subsystems  High Volume, Fully Automated Production 25

26. Slide 26: Automotive: Diverse Product Mix

    Automotive: Diverse Product Mix Body Controllers Meter Clusters Steering Column LED Lighting Systems Climate Control Connected Car INFOTAINMENT  TOLL TAGS  REMOTE CONTROLS  ELECTRIC VEHICLES CONTROL UNITS  WINDOW LIFTS STEERING COLUMN ELECTRONICS  DOOR LOCKS  PARK ASSIST SENSORS  ELECTRIC VEH

27. Slide 27: Agenda

    Agenda  Sanmina Profile  Vision and Mission  Customers and Markets  Technology Innovation  Sanmina 4.0  Summary 27

28. Slide 28: Components, Products & Services

    Components, Products & Services 28

29. Slide 29: Technology Video

    Technology Video io SANMINA 29

30. Slide 30: Design & Engineering

    Design & Engineering 100 1,000s Turnkey Designs Complete System Level Sub-assembly Last Year Designs Per Year Designs Per Year Vending & Kiosks 100 Joint Development + Ongoing Design Consulting Joint Projects Designs Last Year Designs Ultrasound JDM 400+ 50 33 12 Technology PCB / PCBA Enclosure Cabl

31. Slide 31: Engagement Models & Examples

    Engagement Models & Examples Full Turnkey Design Aerospace Network Applicance Storage Server Vending & Kiosks Joint Development Ultrasound Power Inverter Gaming Robotic Surgery Technology Solutions Radar Module ATE PCB Power Inverter Enclosure Complex Cables VAVE / Test Infotainment X-Ray VAVE Comms

32. Slide 32: Turnkey: SCI Products

    Turnkey: SCI Products  TOCNET ® : Mission Critical Communications  FIRECOMM® & ISWICS: Secure Aircraft Intercommunications  DCU: Data Concentrator Unit Chinook Helicopter, landing at SCI in Huntsville as part of a U.S. Army  AIU: Aircraft Interface Unit for Aviation Platforms recognition and app

33. Slide 33: Technology: Advanced PCB

    Technology: Advanced PCB Project Scope & Challenge  Quick turn design for PCB to accommodate latest, fine pitch BGA’s  High density, fine pitch, fast I/O Approach  Selected materials from high speed pre-qualified laminate materials  Broad range of qualified embedded passives saved board space Re

34. Slide 34: VAVE: Supply Chain Re-Design - Automotive

    VAVE: Supply Chain Re-Design - Automotive Project Scope & Challenge  Tier 1 automotive OEM, 15 infotainment products  25 high risk obsolete & single source components Approach  Proprietary Sanmina risk analysis tool used  Multiple sources developed, with lower cost components Result  Significan

35. Slide 35: Sanmina Brands: Our Product Divisions

    Sanmina Brands: Our Product Divisions Defense & Aerospace Cloud Solutions Optical & Memory Cloud Manufacturing Solutions Solution  Tactical & aircraft products  Custom storage servers  Microelectronics  Digital factory transformation  Homeland security  Back-up to enterprise  DRAM, SSD/Flash

36. Slide 36: Global Services: 20+ Years Experience

    Global Services: 20+ Years Experience ENGINEERING INTEGRATION AND FULFILLMENT SERVICES AFTERMARKET SERVICES INFORMATION  2,800 Employees TECHNOLOGY  57 Dedicated Service Sites  20,000+ Units Shipped Daily  One Global IT System END-OF-LIFE SERVICES SUPPLY CHAIN 36

37. Slide 37: Agenda

    Agenda  Sanmina Profile  Vision and Mission  Customers and Markets  Technology Innovation  Sanmina 4.0  Summary 37

38. Slide 38: Sanmina 4.0 Video

    Sanmina 4.0 Video “5 SANMINA

39. Slide 39: 42Q: Backbone for Sanmina 4.0

    42Q: Backbone for Sanmina 4.0 Before  Operator: Paper request to warehouse  Parts manually delivered to SMT line After  Predictive: SMT “knows” reels are low  Automatic SMT to IT/warehouse signal  Autonomous vehicle delivers reels to SMT Guided Vehicle, controlled by 42Q delivers reels to the r

40. Slide 40: Conscious Factory in a Box Uses 42Q

    : ‘Conscious Factory in a Box’ Uses 42Q “With our conscious factory in a box and 42Q, I can see in real-time what happens in production and I can optimize the process. It’s a complete game changer.” Johannes Giloth, SVP, Global Operations and Chief Procurement Officer at Nokia 40

41. Slide 41: Quality at Sanmina

    Quality at Sanmina  Global Quality Systems  Proven and Refined for Over 25 Years – Customer Focus Team Structure – Supplier Quality Management – Continuous Improvement – Global Certifications 41

42. Slide 42: Global Certifications

    Global Certifications Continuous Recertification and Audits Drive Quality & Improvement TS 16949 MIL-A-28870 Automotive QMS General Military PWB Specifications AS 9100 ISO 14001 Aerospace QMS Environmental Management TL 9000 FDA Telecommunications QMS Food & Drug Administration MIL-PRF-31032 ISO 900

43. Slide 43: Sanmina Supply Chain Management

    Sanmina Supply Chain Management Immediate benefit to our customers:  Immediate Access: Broad range of qualified global & regional suppliers  Global Footprint: All major regions worldwide  One Integrated Procurement System: Global visibility  Simplification of Supply Chain: Fewer vendors to manag

44. Slide 44: One IT Platform

    One IT Platform Visibility Real-Time Collaboration Connectivity Globally Connected Communications ASICS SUPPLIERS CUSTOMERS Medical Actives Automotive Passives Defense & Memory Aerospace Power Industrial Cloud Solutions Speed Flexibility Consistency Security 44

45. Slide 45: Agenda

    Agenda  Sanmina Profile  Vision and Mission  Customers and Markets  Technology Innovation  Sanmina 4.0  Summary 45

46. Slide 46: Summary

    Summary  Target Markets Have Not Changed  Mission Critical Product Focus  Differentiated Technology and Engineering Capabilities  Sanmina 4.0 is Fundamental to Our Success  Strong, Experienced and Dedicated Team 46

47. Slide 47: The Value We Provide

    MARKET EXPERTISE TECHNOLOGY END TO END SOLUTIONS OPERATIONS INTELLIGENCE THE VALUE WE PROVIDE Time to Market I Competitive Advantage I Supply Chain Simplification I Agility & Intelligence

48. Slide 48: Financial Update

    Sanmina I Everywhere, Everyday Financial Update 48

49. Slide 49: Agenda

    Agenda  Financial Results  Balance Sheet and Capital Structure  Segment Financial Results  Why Invest in Sanmina?  Summary 49

50. Slide 50: Revenue

    Revenue ($ in Millions) $6,869 $1,745 $1,700 - $1,750 $6,481 $6,375 $1,676 FY'15 FY'16 FY'17 Q1'18 Q2'18 Q3'18 Guidance Strong Pipeline of New Program Wins Q3’18 Guidance is as of our last earnings call on April 23, 2018. 50

51. Slide 51: Sanmina Target Markets

    Sanmina Target Markets 5.5% 354 Revenue forecast ($bn) 2016 2021E 272 5.1% 178 139 9.9% 4.1% 4.5% 58 (2.9%) 3.6% 16.2% 6.8% 36 (0.1%) 19 24 24 30 16 14 12 14 15 21 4 4 5 10 Computers Peripherals Consumer Servers & Networking Telecom Automotive Medical Industrial Total Devices Storage Source: IDC (Oc

52. Slide 52: Market Segment Transformation

    Market Segment Transformation Medical Medical 12% 16% Communications Communications Networks Networks Cloud Cloud Solutions 48% Solutions 38% 22% 10% FY2013 Q2 2018 I/A/D I/A/D 18% 36% Communications Networks Industrial/Automotive/Defense Medical Cloud Solutions (Networking, optical & wireless infra

53. Slide 53: Non-GAAP Gross Profit/Margin

    Non-GAAP Gross Profit/Margin ($ in Millions) $519 $532 $502 7.9% 8.0% 7.7% $112 $117 7.3% 7.5% 7.4% 7.0% 6.9% - 7.3% 6.4% FY'15 FY'16 FY'17 Q1'18 Q2'18 Q3'18 Guidance SANM Industry Average Margins Starting to Recover Q3’18 Guidance is as of our last earnings call on April 23, 2018. 53

54. Slide 54: Non-GAAP Operating Expense

    Non-GAAP Operating Expense ($ in Millions) $256 $262 $256 4.0% 4.0% 3.9% 3.7% 3.7% $65 $65 FY'15 FY'16 FY'17 Q1'18 Q2'18 Leveraging our OPEX 54

55. Slide 55: R&D Investment

    R&D Investment ($ in Millions) $37 $33 $33 $8 $8 0.6% 0.5% 0.5% 0.5% 0.4% FY'15 FY'16 FY'17 Q1'18 Q2'18 Investing in Design, Engineering & Technology 55

56. Slide 56: Non-GAAP Operating Margin

    Non-GAAP Operating Margin 3.9% 4.0% 4.0% 3.1% - 3.5% 3.1% 2.7% FY'15 FY'16 FY'17 Q1'18 Q2'18 Q3'18 Guidance Operating Margins are Improving Q3’18 Guidance is as of our last earnings call on April 23, 2018. 56

57. Slide 57: Non-GAAP Other Income and Expense

    Non-GAAP Other Income and Expense ($ in Millions) $23 $23 $13 $7 $3 FY'15 FY'16 FY'17 Q1'18 Q2'18 57

58. Slide 58: Non-GAAP Tax Expense/Rate

    Non-GAAP Tax Expense/Rate ($ in Millions) $38 $35 $33 18.0% 18.0% 14.9% 14.8% 14.4% $8 $8 FY'15 FY'16 FY'17 Q1'18 Q2'18 FY’18 Tax Rate – Impacted by Geographic Profit Mix 58

59. Slide 59: Impact of U.S. Tax Cuts and Jobs Act (Tax Act)

    Impact of U.S. Tax Cuts and Jobs Act (Tax Act)  Q1’18 non-cash tax charge of $162.4 million: – Driven primarily by corporate tax rate change from 35% to 21%  No deemed repatriation tax cash impact: – Efficient cash repatriation will continue – 58% of our cash balance was in US at end of Q2’18  No

60. Slide 60: Non-GAAP EPS

    Non-GAAP EPS $2.87 $2.54 $0.53 - $0.61 $2.21 $0.48 $0.50 FY'15 FY'16 FY'17 Q1'18 Q2'18 Q3'18 Guidance Expect EPS to Improve in Second Half of FY’18 Q3’18 Guidance is as of our last earnings call on April 23, 2018. 60

61. Slide 61: Non-GAAP Pre-Tax ROIC

    Non-GAAP Pre-Tax ROIC 23.7% 20.9% 19.9% 15.8% 14.9% FY'15 FY'16 FY'17 Q1'18 Q2'18 Pre-Tax ROIC is Recovering 61

62. Slide 62: Agenda

    Agenda  Financial Results  Balance Sheet and Capital Structure  Segment Financial Results  Why Invest in Sanmina?  Summary 62

63. Slide 63: Balance Sheet

    Balance Sheet ($ in Millions) Q2’18 FY’17 FY’16 FY’15 Cash and cash equivalents $405 $407 $398 $412 Accounts receivable, net 1,088 1,110 974 937 Inventories 1,122 1,052 946 919 Property, plant and equipment, net 635 640 618 591 Deferred tax assets 355 477 514 497 Other assets 175 162 175 137 Total a

64. Slide 64: Cash Flow From Operations

    Cash Flow From Operations ($ in Millions) $390 $251 $175 FY'15 FY'16 FY'17 Solid Cash Flow Generation 64

65. Slide 65: Inventory/Inventory Turns

    Inventory/Inventory Turns ($ in Millions)  Inventory Grew ~ $150M since $1,122 Q1’17: $1,052 $1,080 – First signs of supply constraints $919 $946 started in Q2’17 – Supply constraints & new program ramps continue to negatively impact turns 6.6x 6.2x 6.2x 6.1x – One turn: ~ $150M of Cash 5.7x FY'15

66. Slide 66: Cash Utilization

    Cash Utilization ($ in Millions) M&A 8% Debt $390 Reduction 7% CapEx $251 35% $175 Share Repurchases FY'15 FY'16 FY'17 50% 66

67. Slide 67: Share Repurchases

    Share Repurchases ($ in Millions) Shares Outstanding (M) 84.2 82.1 78.1 73.0 71.7 68.6 $160 $141 $121 $109 $75 $0 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 YTD Last 3 Year Payout Ratio - 82.7%; Competitor Median – 51.6% 67

68. Slide 68: Net CAPEX

    Net CAPEX ($ in Millions) $116 $108 $89 $48 ~$30 $22 FY'15 FY'16 FY'17 Q1'18 Q2'18 Q3'18 Guidance Investing in High Growth Target Markets Q3’18 Guidance is as of our last earnings call on April 23, 2018. 68

69. Slide 69: Gross Leverage Ratio & Long Term Debt

    Gross Leverage Ratio & Long Term Debt ($ in Millions)  Gross leverage below 2.0x  $375M of long term debt is due $424 $434 in June, 2019 $391 $392 $393  Upsized credit facility to $500M & extended term to Feb, 2023 1.9x 1.7x 1.6x  Credit facility has $375M 1.3x 1.2x additional uncommitted term l

70. Slide 70: Agenda

    Agenda  Financial Results  Balance Sheet and Capital Structure  Segment Financial Results  Why Invest in Sanmina?  Summary 70

71. Slide 71: IMS and CPS Breakdown

    IMS and CPS Breakdown Revenue Gross Profit Components, Products and 22% 21% 20% 19% 20% 23% 24% 27% 27% 27% Services Integrated 78% 79% 80% 81% 80% 77% 76% 73% 73% 73% Manufacturing Solutions FY'15 FY'16 FY'17 Q1'18 Q2'18 FY'15 FY'16 FY'17 Q1'18 Q2'18 IMS segment and CPS category includes inter-segm

72. Slide 72: Integrated Manufacturing Solutions

    Integrated Manufacturing Solutions Revenue and Non-GAAP Gross Margin ($ in Millions)  New program ramps & supply $5,645 $5,157 $5,298 constraints: – Impact on margins started in Q4’17  Expect gross margin improvement 7.1% 7.5% 7.2% to historical 7.0% range 6.3% 5.8% $1,429 $1,375 FY'15 FY'16 FY'17

73. Slide 73: Components, Products and Services

    Components, Products and Services Revenue and Non-GAAP Gross Margin ($ in Millions)  Automotive, Medical and Industrial growth is offsetting wireless decline $1,415 $1,372 $1,422  CPS contribution margin currently ranges from 20 to 25% 9.5% 8.9% 8.9% 9.1% 8.4% $357 $346 FY'15 FY'16 FY'17 Q1'18 Q2'

74. Slide 74: Agenda

    Agenda  Financial Results  Balance Sheet and Capital Structure  Segment Financial Results  Why Invest in Sanmina?  Summary 74

75. Slide 75: Why Invest in Sanmina?

    Why Invest in Sanmina?  Valuation  Operating leverage  Proven ability to generate cash  Strong balance sheet 75

76. Slide 76: LTM Price/Book Value

    LTM Price/Book Value Competitor Mean – 1.8x 5.0x 2.5x 2.1x 2.1x 1.2x 1.4x 1.0x A B SANM C D E S&P 500 Sanmina’s Price/Book Value is below Competitor’s Mean Bank of America Merrill Lynch – Market data versus peer group as of May 4, 2018. 76

77. Slide 77: LTM P/E

    LTM P/E Competitor Mean – 13.1x 21.5x 16.3x 14.4x 12.8x 12.8x 11.4x 10.4x A B SANM C D E S&P 500 Sanmina’s P/E Ratio is below Competitor’s Mean Bank of America Merrill Lynch – Market data versus peer group as of May 4, 2018. 77

78. Slide 78: Why Invest in Sanmina?

    Why Invest in Sanmina?  Valuation  Operating leverage  Proven ability to generate cash  Strong balance sheet 78

79. Slide 79: Why Invest in Sanmina? - Operating Leverage

    Why Invest in Sanmina? - Operating Leverage Operating Leverage  Leverage ~25% contribution margin  Absorb Overhead by Filling Components, the Plants Products and Services  Contain OPEX as we Capacity Grow Utilization  Sanmina 4.0 OPEX Leverage  Ramp New Target Market Programs Improved Efficienc

80. Slide 80: Why Invest in Sanmina? – Target Model (2-3 years)

    Why Invest in Sanmina? – Target Model (2-3 years) Business Unit Operating Margin Comments Target Components, Products and Services (CPS) 6 - 8%  ~25% contribution margin  Revenue growth of 10 to 15% annually  Gross margins benchmark in the mid-teens  Products and services benchmark well  Vertic

81. Slide 81: Why Invest in Sanmina?

    Why Invest in Sanmina?  Valuation  Operating leverage  Proven ability to generate cash  Strong balance sheet 81

82. Slide 82: Cash Flow From Operations

    Cash Flow From Operations ($ in Millions) $390 $251 $175 FY'15 FY'16 FY'17 Solid Cash Flow Generation 82

83. Slide 83: Why Invest in Sanmina?

    Why Invest in Sanmina?  Valuation  Operating leverage  Proven ability to generate cash  Strong balance sheet 83

84. Slide 84: Balance Sheet

    Balance Sheet ($ in Millions) Q2’18 FY’17 FY’16 FY’15 Cash and cash equivalents $405 $407 $398 $412 Accounts receivable, net 1,088 1,110 974 937 Inventories 1,122 1,052 946 919 Property, plant and equipment, net 635 640 618 591 Deferred tax assets 355 477 514 497 Other assets 175 162 175 137 Total a

85. Slide 85: Gross Leverage Ratio Under 2.0x

    Gross Leverage Ratio Under 2.0x ($ in Millions) $424 $434 $391 $392 $393 1.9x 1.7x 1.6x 1.3x 1.2x FY'15 FY'16 FY'17 Q1'18 Q2'18 Maintaining a Strong Capital Structure 85

86. Slide 86: Share Repurchases – Excellent Return of Capital

    Share Repurchases – Excellent Return of Capital ($ in Millions) Shares Outstanding (M) 84.2 82.1 78.1 73.0 71.7 68.6 $160 $141 $121 $109 $75 $0 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 YTD Last 3 Year Payout Ratio - 82.7%; Competitor Median – 51.6% 86

87. Slide 87: Agenda

    Agenda  Financial Results  Balance Sheet and Capital Structure  Segment Financial Results  Why Invest in Sanmina?  Summary 87

88. Slide 88: Compelling Investment Opportunity

    Summary  Strong operating leverage potential  Proven ability to generate cash  Strong balance sheet, capital structure and return of capital  EMS Industry is undervalued relative to the S&P 500  Sanmina is undervalued Compelling Investment Opportunity 88

89. Slide 89: The Value We Provide

    MARKET EXPERTISE TECHNOLOGY END TO END SOLUTIONS OPERATIONS INTELLIGENCE THE VALUE WE PROVIDE Time to Market I Competitive Advantage I Supply Chain Simplification I Agility & Intelligence

90. Slide 90: Summary

    Sanmina I Everywhere, Everyday Summary 90

91. Slide 91: Summary

    Summary  Strong and Passionate Team  Mission Critical Product Focus  Sanmina 4.0 Benefit to Customers and Sanmina  IMS Margins Are Recovering  CPS Target Margins Are Achievable in Next 2-3 Years 91

92. Slide 92: Q3'18 Expectations

    Q3’18 Expectations Medical  (MRI, CT scan, blood glucose meters, infusion and ultrasound) Industrial/Automotive/Defense  (Industrial equipment, energy, oil and gas, LIDAR, infotainment, control systems and defense & aerospace) Communications Networks FLAT (Networking, optical & wireless infrastruc

93. Slide 93: Driving Profitable Growth

    Driving Profitable Growth  Revenue Momentum Is Building  Recovery in IMS – Target: 4-5% Operating Margin  Achievable CPS Model – Target: 6-8% Operating Margin  Segment Mix Will Change Significant Operating Leverage 93

94. Slide 94: Window of Opportunity

    The Time Is Now  Solid Foundation  Focused Strategy  Momentum Is Building  Valuation Is Low Window of Opportunity 94

95. Slide 95: Sanmina Everywhere, Everyday

    Sanmina I Everywhere, Everyday 95

Sanmina — Investor Day (May 2018) on 6ix