Slide 1: Sanmina Q4 & FY'18 Results
Sanmina Q4 & FY’18 Results October 29, 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 first quarter fiscal 2019 results and statements regarding the expected impact of the new revenue recognition standard, constitute forward-looking statements within the meaning of the safe
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q4'18 (A) Q4'18 Outlook WAS Revenue: $1.88B $1.825 - $1.875B Non-GAAP Diluted EPS: $0.67 $0.63 - $0.69 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Period Twelve Month Period ($ in millions, except per share data) Q4’18 Q3’18 Q4’17 FY’18 FY’17 GAAP: Revenue $1,876 $1,813 $1,755 $7,110 $6,869 Gross profit $127 $119 $124 $470 $520 Operating expense $111 $71 $81 $344 $293 Operating income $16 $47 $43 $125
Slide 5: Q4'18 Revenue By End-Market
Q4’18 Revenue By End-Market Sequential Y-Y $ in Millions Q4’18 Growth Growth Medical Communications Networks 18% Communications (Networking, optical & wireless infrastructure) $690 2.6% (3.3%) Networks 37% Industrial/Automotive/Defense Cloud (Industrial equipment, energy, oil and gas, LIDAR, $664 4.
Slide 6: FY'18 Revenue By End-Market
FY’18 Revenue By End-Market Y-Y $ in Millions FY’18 FY’17 Growth Medical 16% Communications Networks $2,685 $2,651 1.3% Communications (Networking, optical & wireless infrastructure) Networks 38% Industrial/Automotive/Defense Cloud (Industrial equipment, energy, oil and gas, LIDAR, $2,522 $2,459 2.6
Slide 7: Segment Reporting - Revenue and Non-GAAP Gross Margin
Segment Reporting - Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,554 $382 $1,440 $1,490 $375 $1,429 $365 $357 $1,375 $346 6.5% 6.3% 6.3% 5.8% 5.7% 9.1% 8.8% 8.4% 8.4% 8.2% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3
Slide 8: Non-GAAP P&L Performance
Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $1,876 $126 $130 $1,813 $117 $117 $1,755 $1,745 $112 $1,676 7.2% 7.0% 6.9% 6.4% 6.4% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Operating Income / Margin Earnings Per Share $65 $61 $52 $54
Slide 9: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 9/29/18 6/30/18 9/30/17 Cash and cash equivalents $420 $405 $407 Accounts receivable, net 1,177 1,154 1,110 Inventories 1,363 1,187 1,052 Property, plant and equipment, net 643 636 640 Deferred tax assets 343 346 477 Other assets 127 165 162 Total assets $4,073
Slide 10: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns $1,363 $1,187 $420 $1,052 $1,080 $1,122 $407 $405 $405 $405 6.2x 6.1x 5.7x 5.9x 5.5x Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Inventory turns (annualized) are calculated as the ratio of four times
Slide 11: Q1'19 Outlook
Q1’19 Outlook The following outlook is for the first fiscal quarter ending December 29, 2018. These statements are forward-looking and actual results may differ materially. Revenue: $1.875B - $1.925B GAAP Diluted EPS(1) : $0.57 - $0.63 Non-GAAP Diluted EPS: $0.68 - $0.74 (1) Includes stock-based com
Slide 12: CEO Remarks
Sanmina CEO Remarks WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence 12
Slide 13: New End-Market View
New End-Market View Original NEW Communications Networks Medical 37% 18% Communications Networks Cloud 37% Solutions Cloud Solutions 10% 10% Q4’18 Q4’18 Industrial/Automotive/ Industrial/Medical/ Defense Defense/Automotive 35% 53% Aligned with Our Focus on High-Complexity, Heavily Regulated Markets
Slide 14: Q1'19 End-Market Outlook
Q1’19 End-Market Outlook Communications Networks (Networking, optical & wireless infrastructure) Industrial/Medical/Defense/Automotive (Industrial equipment, energy, oil and gas, MRI, CT scan, blood glucose meters, infusion and ultrasound, LIDAR, infotainment, control systems and defense & aeros
Slide 15: Summary
Summary Q4’18 – Revenue up 3.5% sequentially and up 6.9% Y-Y – Operating margin expanded 50 basis points sequentially – Non-GAAP diluted earnings per share of $0.67, up 21.3% sequentially and up 4.8% Y-Y FY’18 – Revenue up 3.5% – Challenging year, impacted by program ramps and constrained compon
Slide 16: Consolidated Financial Statements, Reconciliation of GAAP vs. Non-GAAP
Sanmina Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended September 29, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 17: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet September 29, September 30, 2018 2017 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 419,528 $ 406,661 Accounts receivable, net 1,177,219 1,110,334 Inventories 1,363,004 1,051,669 Prepaid expenses and other current assets 43,676 47,586 Total
Slide 18: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Twelve Months Ended Sept. 29, Sept. 30, Sept. 29, Sept. 30, 2018 2017 2018 2017 Net sales $ 1,876,335 $ 1,755,003 $ 7,110,130 $ 6,868,619 Cost of sales 1,749,252 1,631,152 6,640,347 6,348,708 Gross profit 127,083 123,
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods Twelve Month Periods ($ in thousands, except per share data) Q4'18 Q3'18 Q2'18 Q1'18 Q4'17 FY18 FY17 GAAP Gross Profit $ 127,083 $ 118,536 $ 114,698 $ 109,466 $ 123,851 $ 469,783 $ 519,911 GAAP gross margin 6.8% 6.5% 6.8% 6.3% 7.1%
Slide 20: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q4 FY18 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 15,819 x 4 Annualized GAAP operating income 63,276 Average invested capital (1) ÷ 1,337,450 GAAP pre-tax ROIC 4.7% Non-GAAP operating income $ 64,749 x 4 Annualized non-GAA
Slide 21: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods Twelve Month Periods ($ in thousands) Q4'18 Q3'18 Q4'17 FY18 FY17 GAAP Net Income (loss) $ 5,382 $ 33,963 $ 25,848 $ (90,933) $138,833 Depreciation and amortization 29,686 29,632 31,231 118,820 118,751 Other, net* 38,326 18,516 22,871
Slide 22: What we make, makes a difference
What we make, makes a difference” <_ wat SANMINA