Sanmina Corporation · NASDAQ:SANM
Sanmina — Q3 FY2020 Earnings Presentation
21 slides from Sanmina's earnings presentation, Jul 31, 2020
Slide 1: Q3 FY20 Results
WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence Sanmina July 29, 2020 Q3 FY20 Results
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the fourth quarter fiscal 2020 financial results, constitutes forward - looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1
Slide 3: Q3 FY20 Non-GAAP P&L Summary
Q3 FY20 Non - GAAP P&L Summary 3
Slide 4: Q3 FY20 Financial Information (Unaudited)
Q3 FY20 Financial Information (Unaudited) 4
Slide 5: Non-GAAP P&L Performance
Non - GAAP P&L Performance ($ in Millions, except per share data ) 5
Slide 6: Segment Reporting - Revenue and Non-GAAP Gross Margin
6 Segment Reporting - Revenue and Non - GAAP Gross Margin* ($ in Millions)
Slide 7: Revenue By End-Market
pa [| SANMINA Revenue By End-Market Sequential $ in Millions Q3 FY20 % of Sales Change Industrial/Medical/Defense/Automotive ee eee ese (3.0%) 57% ‘defense & acrospace) Communications Networks : {Mletworeng, opiical and wireless inFsebucture) $595 19.0% 36% Cloud Solutions bes saul) $124 (1.7%) 1% T
Slide 8: Strong Balance Sheet
Strong Balance Sheet sy SANMINA = Cash flow from operations: $64 million = Free cash flow: $54 million = Cash and cash equivalents: $1.1 billion = Debt to cash ratio: 0.9x = Repurchased 667,000 shares for approximately $17.5 million
Slide 9: Summary Balance Sheet
9 Summary Balance Sheet ($ in Millions)
Slide 10: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) 10
Slide 11: Q4 FY20 Outlook
11 Q4 FY20 Outlook* *The outlook and statements made in this slide constitute forward - looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual res ult s could differ materially from those projected in these statements as a re
Slide 12: CEO Remarks
WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence Sanmina CEO Remarks 12
Slide 13: Q4 FY20 End-Market Outlook
13 Q4 FY20 End - Market Outlook ▪ Focused on High - Complexity, Heavily Regulated Markets ▪ Communications Networks ▪ Industrial/Medical/Defense/Automotive ▪ Cloud Solutions Relatively Stable Demand Across All Segments
Slide 14: Key Initiatives
pa [| SANMINA Key Initiatives = Focus on customers * Critical for new in high-complexity, Profitable Market Leading program wins and mission-critical end Revenue Onboarding time to revenue markets Growth Processes = Supports attractive ® Flexibility to invest in i Lean and margins regardless : ‘ of
Slide 15: Summary
Summary Se SANMINA Q3 FY20 » Revenue, margins and EPS exceeded expectations = Generated free cash flow of $54 million = Healthy balance sheet Q4 FY20 = Revenue outlook of $1.73 billion - $1.83 billion = Non-GAAP diluted EPS outlook of $0.73 - $0.83 = Expect to generate free cash flow = Focused on cu
Slide 16: What we make, makes a difference
What we make, makes a difference” pra wat SANMINA
Slide 17: GAAP Condensed Consolidated Balance Sheet
17 GAAP Condensed Consolidated Balance Sheet June 27, September 28, 2020 2019 ASSETS Current assets: Cash and cash equivalents 1,117,217$ 454,741$ Short-term investments 30,000 - Accounts receivable, net 1,042,011 1,128,379 Contract assets 381,249 396,300 Inventories 883,670 900,557 Prepaid expenses
Slide 18: GAAP Condensed Consolidated Statement of Operations
18 GAAP Condensed Consolidated Statement of Operations (Unaudited) June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Net sales 1,654,691$ 2,026,995$ 5,085,412$ 6,341,652$ Cost of sales 1,523,218 1,879,200 4,711,636 5,891,418 Gross profit 131,473 147,795 373,776 450,234 Operating expenses: Sell
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non - GAAP Measures (Unaudited) 19 ($ in thousands, except per share data) Q3'20 Q2'20 Q1'20 Q4'19 Q3'19 GAAP Gross Profit 131,473$ 107,421$ 134,882$ 141,704$ 147,795$ GAAP gross margin 7.9% 6.8% 7.3% 7.5% 7.3% Adjustments Stock compensation expense (1) 2,772 2,582 2,912 2,711 2,72
Slide 20: Pre-tax Return on Invested Capital (ROIC)
20 Pre - tax Return on Invested Capital (ROIC) (Unaudited) ($ in thousands) Q3 FY20 Pre-tax Return on Invested Capital (ROIC) GAAP operating income 64,103$ x 4 Annualized GAAP operating income 256,412 Average invested capital (1) ÷ 1,247,777 GAAP pre-tax ROIC 20.5% Non-GAAP operating income 75,831$
Slide 21: Condensed Consolidated Cash Flow
21 Condensed Consolidated Cash Flow (Unaudited) ($ in thousands) Q3'20 Q2'20 Q3'19 GAAP Net Income 44,880$ 4,882$ 42,921$ Depreciation and amortization 28,886 28,042 29,561 Other, net* 15,532 16,029 9,960 Net change in net working capital (25,531) 86,775 83,024 Cash provided by operating activities