Slide 1: Fourth Quarter and Full Year FY22 SGH Financial Results
FOURTH QUARTER AND FULL YEAR FY22 SGH FINANCIAL RESULTS October 4, 2022 © 2022 SGH | 1
Slide 2: Disclaimer
Disclaimer This presentation and oral communications made during the course of this presentation will contain Statement Regarding Use of Non-GAAP Financial Measures: “forward-looking statements,” including, among other things, statements regarding future events and the SGH management uses non-GAAP m
Slide 3: Speakers
Mark Adams President and CEO SGH SPEAKERS Ken Rizvi SVP and CFO SGH © 2022 SGH | 3
Slide 4: FY22 Highlights
FY22 Highlights § Record Revenue − FY22 revenue totaled $1.8 billion, up 21% vs FY21 § Record Gross Margin − GAAP gross margin of 24.9%, up 440 bp vs FY21 − Non-GAAP gross margin of 25.9%, up 370 bp YoY vs FY21 § Record Adjusted EBITDA − FY22 adjusted EBITDA of $263 million, up 40% vs FY21 § Record
Slide 5: Q4 FY22 Highlights
Q4 FY22 Highlights Q4 FY22 Revenue of Q4 FY22 Non-GAAP Q4 FY22 Non-GAAP $438 Million Gross Margin of 24.6% EPS of $0.80 • See appendix for GAAP to non-GAAP reconciliation © 2022 SGH | 5
Slide 6: Our Business Lines
OUR BUSINESS LINES © 2022 SGH | 6
Slide 7: Intelligent Platform Solutions
Intelligent Platform Solutions § Performance review − Q4 FY22 record revenue of $145 million, up 52% sequentially; up 48% vs year ago − FY22 services revenue of $97 million, up 59% vs FY21 § Industry recognition − Scientific Computing World highlighted Penguin Computing’s Cloud technology practice §
Slide 8: LED Solutions
LED Solutions § Performance review − Q4 FY22 revenue of $83 million − Results affected by headwinds in China as COVID- related policies contributed to supply chain constraints and impacted demand § Key target markets − Specialty: high-value applications such as entertainment and horticulture − Video
Slide 9: Memory Solutions
Memory Solutions § Performance review − Q4 FY22 revenue of $210 million − Sales driven by core DDR3, DDR4, and Flash products for the networking, telecom, and storage end markets § Product Highlights − SATA SSD design-ins are increasing − Growing interest in DDR5 specialty form factors − Launched fi
Slide 10: Financial Review
FINANCIAL REVIEW Ken Rizvi, SVP and CFO © 2022 SGH | 10
Slide 11: FY22 Revenue by Business Line
FY22 Revenue by Business Line Record annual revenues of $1.82 billion Intelligent Platform Solutions LED Solutions Memory Solutions Up 28% YoY to a record First full year with Cree LED Up 5% YoY to $441 million $403 million $975 million © 2022 SGH | 11
Slide 12: Non-GAAP FY22 Results
Record non-GAAP gross margin of 25.9%, up 370 bp vs FY21 Non-GAAP FY22 Results Record non-GAAP EPS of $3.62 Record adjusted EBITDA of $263M • All per share measures reflect the February 2022 two-for-one share split • See appendix for GAAP to non-GAAP reconciliation © 2022 SGH | 12
Slide 13: Non-GAAP Quarterly Results
Non-GAAP Non-GAAP Non-GAAP Revenue Gross Margin EPS Quarterly Results Q4 FY22 $438M 24.6% $0.80 Results Key financial metrics at or above midpoint of guidance Q4 $420-$460M 23.5-25.5% $0.65 +/- $0.10 Guidance • Guidance provided on Q3 FY22 earnings call which took place on June 29, 2022 • Note: all
Slide 14: Q4 FY22 Non-GAAP Operating Results
Q4 FY22 Non-GAAP Operating Results ($M) Q4 FY22 Q3 FY22 Q4 FY21 Revenue $437.7 $462.5 $467.7 Intelligent Platform Solutions $144.7 $95.3 $97.6 Memory Solutions $209.8 $265.9 $247.3 LED Solutions $83.1 $101.3 $122.8 Gross profit $107.8 $118.9 $123.6 Operating expenses $61.1 $64.6 $57.0 Net income $40
Slide 15: Q4 FY22 Balance Sheet Highlights
Q4 FY22 Balance Sheet Highlights Working Cash Capital Q3 FY22 Q4 FY22 Q3 FY22 Q4 FY22 Q3 FY22 Q4 FY22 Capital Flow Expenditures Net Accounts Cash & $357M $410M $387M $363M CapEx $9.2M $8.9M Receivable Equivalents (at period end) Days Sales 31 days 47 days CF from Depreciation $10.6M $10.8M Outstandi
Slide 16: Our Guidance
OUR GUIDANCE © 2022 SGH | 16
Slide 17: Q1 FY 2023 Guidance
Q1 FY 2023 Guidance GAAP Non-GAAP Outlook Adjustments Outlook Net Sales $425 to $475 million ‒ $425 to $475 million Gross Margin 24.5% to 26.5% 1% (A) 25.5% to 27.5% Diluted EPS $0.14 ± $0.15 $0.46 (A,B,C) $0.60 ± $0.15 Diluted Shares 51 million ‒ 51 million Non-GAAP adjustments (in millions): (A) S
Slide 18: Powering Growth. Expanding Possibilities.
POWERING GROWTH. EXPANDING POSSIBILITIES. © 2022 SGH | 18
Slide 19: Appendix
APPENDIX © 2022 SGH | 19
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2022 SGH 20
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2022 SGH 21
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2022 SGH 22
Slide 23: Convertible Dilution
Convertible Dilution Convertible Net Share Stock Price Share Dilution Capped Call Dilution to SGH $16 — — — $17 — — — $18 — — — $19 — — — $20 — — — $21 0.41 (0.41) — $22 0.95 (0.95) — $23 1.44 (1.44) — $24 1.90 (1.90) — $25 2.31 (2.31) — Note: Dilution in millions of shares © 2022 SGH | 23