Sanmina Corporation · NASDAQ:SANM
Sanmina — Q2 FY2023 Earnings Presentation
22 slides from Sanmina's earnings presentation, May 11, 2023
Slide 1: Q2 FY23 Financial Results
Q2 FY23 Financial Results May 11, 2023
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Kurt Adzema Chairman & CEO EVP & CFO 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation concerning our financial outlook for the third quarter fiscal 2023 and cost overruns under certain contracts for one of our divisions and the resultant pending restatement of certain prior period financial result constitute forwa
Slide 4: Financial Overview
Financial Overview Kurt Adzema
Slide 5: Q2'23 Non-GAAP Actual Results vs Outlook
Q2’23 Non-GAAP Actual Results vs Outlook Q2’23 Outlook WAS Revenue $2.32B $2.2B - $2.3B Gross Margin 8.4% 8.2% - 8.7% Operating Margin 5.8% 5.5% - 6.0% Diluted EPS $1.59 $1.50 - $1.60 Strong Financial Performance 5
Slide 6: Q/Q and Y/Y P&L Performance
Q/Q and Y/Y P&L Performance ($ in millions, except per share data) Three Month Period Q2’23 Q1’23* Q2’22* GAAP: Revenue $2,320 $2,356 $1,915 Gross profit $191 $195 $146 Gross margin 8.2% 8.3% 7.6% Operating income $121 $128 $76 Operating margin 5.2% 5.5% 4.0% Diluted earnings per share $1.33 $1.54 $
Slide 7: Trended P&L Performance
Trended P&L Performance* ($ in millions, except per share data) Non-GAAP Non-GAAP Non-GAAP Revenue Gross Profit / Margin Operating Income / Margin Diluted Earnings Per Share $7,920 $638 $399 $4.70 $4,676 $395 $276 $3.31 8.5% 8.1% 5.9% 5.0% FY22 1H FY23 FY22 1H FY23 FY22 1H FY23 FY22 1H FY23 Strong S
Slide 8: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in millions) Integrated Manufacturing Solutions Components, Products and Services** $6,414 $1,655 13.2% $3,868 10.6% $889 7.2% 7.2% FY22 1H FY23 FY22 1H FY23 *Revenue and non-GAAP gross margin for IMS segment and CPS category includes inter-s
Slide 9: Strong Balance Sheet
Strong Balance Sheet ($ in Millions) Cash and cash equivalents $ 4/1/2023 718 Key Takeaways: Accounts receivable, net 1,209 Contract assets 486 Solid cash position Inventories 1,553 No borrowings under $800M revolver Property, plant and equipment, net 617 Cash flow from operations: $65M Deferr
Slide 10: Balance Sheet Metrics
Balance Sheet Metrics Cash Cycle Days Non-GAAP Pre-Tax ROIC 56.2 55.2 38.0% 49.9 52.3 49.8 33.5% 33.9% 31.7% 26.9% Q2'22* Q3'22* Q4'22* Q1'23* Q2'23 Q2'22* Q3'22* Q4'22* Q1'23* Q2'23 Cash cycle days (a measure of how quickly we convert investments in inventory to cash) is calculated as days inventor
Slide 11: Q3'23 Outlook
Q3’23 Outlook The following outlook for the third fiscal quarter ending July 1, 2023*. Q3’23 Revenue: $2.2B - $2.3B GAAP Diluted EPS: $1.29 - $1.39 Non-GAAP Diluted EPS: $1.50 - $1.60 *The outlook and certain statements made during this presentation including any statements concerning cost overruns
Slide 12: Business Overview
SANMINA ~ ey | Business Overview Jure Sola
Slide 13: Revenue by End-Market
Revenue by End-Market ($ in millions) Communications Networks & Cloud Infrastructure Q2’23 Q2’22* Q1’23* Q2’23 41% Performance Industrial/Medical/ Q/Q: 2% $1,158 $1,340 $1,362 Defense/Automotive Y/Y: 18% Q2’23 Communications Networks & Q/Q: (6%) $757 $1,016 $958 Cloud Infrastructure Y/Y: 27% Q/Q: (2
Slide 14: Q3'23 and FY23 Outlook
Q3’23 and FY23 Outlook Q3’23 Q3’23 Y/Y Outlook Expect growth Y/Y Industrial/Medical/ Growth Defense/Automotive Customer backlog remains healthy Communications Networks & Supply constraints continue to improve Cloud Infrastructure Growth FY23 On track to deliver Y/Y mid-teens revenue growth
Slide 15: Summary
Summary Q2’23 strong top and bottom line results Our priorities have not changed Our strategy is working and delivering results Continue to make investments for future growth We are excited about our future We Remain Confident in Our FY23 Profitable Growth Objectives 15
Slide 16: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: April 1, 2023
Slide 17: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) April 1, October 1, 2023 2022 Restated (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 718,203 $ 529,857 Accounts receivable, net 1,208,808 1,138,894 Contract assets 486,290 461,739 Inventories 1,552,568 1
Slide 18: Condensed Consolidated Statements of Income
Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended Six Months Ended April 1, April 2, April 1, April 2, 2023 2022 2023 2022 Restated Restated Net sales $ 2,320,103 $ 1,915,070 $ 4,675,911 $ 3,671,396 Cost of
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
Sanmina Corporation Reconciliation of GAAP to Non-GAAP Measures ($ in thousands, except per share amounts) (Unaudited) Q2'23 Q1'23 Q4'22 Q3'22 Q2'22 Q1'22 Restated Restated Restated Restated Restated GAAP Revenue $ 2,320,103 $ 2,355,808 $ 2,224,865 $ 2,023,361 $ 1,915,070 $ 1,756,326 Adjustments Dis
Slide 20: Condensed Consolidated Cash Flow
Sanmina Corporation Condensed Consolidated Cash Flow ($ in thousands) (Unaudited) Three Month Periods Q2'23 Q1'23 Q4'22 Q3'22 Q2'22 Restated Restated Restated Restated GAAP Net Income before NCI $ 85,307 $ 95,114 $ 58,364 $ 77,222 $ 48,621 Depreciation and amortization 29,282 28,536 26,686 27,065 27
Slide 21: Pre-Tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-Tax Return on Invested Capital (ROIC) ($ in thousands) (Unaudited) Three Month Periods Q2 FY23 Q1 FY23 Q4 FY22 Q3 FY22 Q2 FY22 Restated Restated Restated Restated GAAP operating income $ 120,601 $ 128,426 $ 103,350 $ 91,614 $ 76,274 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP opera
Slide 22: Thank You
SANMINA ~ ey Thank You