Slide 1: Sanmina Q1 FY'19 Results
Sanmina Q1 FY’19 Results January 28, 2019 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 second quarter fiscal 2019 results, the Company’s expectations for continuation of supply chain constraints and expectations for full fiscal 2019 revenue growth constitute forward-looking
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q1'19 (A) Q1'19 Outlook WAS Revenue: $2.19B $1.875 - $1.925B Non-GAAP Diluted EPS: $0.83 $0.68 - $0.74 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Period ($ in millions, except per share data) Q1’19 Q4’18 Q1’18 GAAP: Revenue $2,188 $1,876 $1,745 Gross profit $149 $121 $109 Operating expense $72 $111 $96 Operating income $78 $10 $14 Other expense $14 $6 $3 Taxes $26 $3 $166 Net (loss) income $38 $1 ($15
Slide 5: Q1'19 Revenue By End-Market
Q1’19 Revenue By End-Market Sequential Y-Y Communications $ in Millions Q1’19 Growth Growth Networks Medical 36% Communications Networks $780 13.0% 14.9% Communications (Networking, optical & wireless infrastructure) Networks Cloud Industrial/Medical/Defense/Automotive Solutions Cloud Solutions (Ind
Slide 6: Segment Reporting - Revenue and Non-GAAP Gross Margin
Segment Reporting - Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,793 $456 $1,554 $375 $382 $1,429 $1,490 $357 $1,375 $346 6.3% 6.3% 6.2% 9.1% 8.9% 5.8% 5.7% 8.4% 8.4% 6.6% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4
Slide 7: Non-GAAP P&L Performance
Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $151 $2,188 $1,745 $1,813 $1,876 $1,676 $124 $112 $117 $117 7.0% 6.9% 6.4% 6.4% 6.6% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Operating Income / Margin Earnings Per Share $0.83 $86 $0.60
Slide 8: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 12/29/18 9/29/18 Cash and cash equivalents $409 $420 Accounts receivable, net 1,345 1,177 Contract Assets 419 - Inventories 1,054 1,374 Property, plant and equipment, net 644 643 Deferred tax assets 324 344 Other assets 122 127 Total assets $4,317 $4,085 Account
Slide 9: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns* $1,374 $1,443 $420 $1,080 $1,122 $1,187 $405 $405 $405 $409 $1,054 6.1x 5.9x 6.7x 5.7x 5.5x 5.6x Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'19 Old New Inventory turns (annualized) are calculated
Slide 10: Q2'19 Outlook
Q2’19 Outlook The following outlook is for the second fiscal quarter ending March 30, 2019. These statements are forward- looking and actual results may differ materially. Revenue: $1.9B - $2.0B GAAP Diluted EPS(1) : $0.59 - $0.69 Non-GAAP Diluted EPS: $0.70 - $0.80 (1) Includes stock-based compensa
Slide 11: CEO Remarks
Sanmina CEO Remarks WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence 11
Slide 12: Q2'19 End-Market Outlook
Q2’19 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 13: Summary
Summary Q1’19 – Revenue up 16.6% sequentially and up 25.4% Y-Y – Operating margin expanded 80 basis points sequentially to 3.9% – Solid demand across all of our end-markets Q2’19 – Good outlook – Healthy pipeline – Continue to make operational improvements that support our overall financial perf
Slide 14: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Sanmina Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended December 29, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 15: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet December 29, September 29, 2018 2018 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 409,290 $ 419,528 Accounts receivable, net 1,344,536 1,177,219 Contract assets 419,484 - Inventories 1,054,166 1,374,004 Prepaid expenses and other current as
Slide 16: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Dec. 29, Dec. 30, 2018 2017 Net sales $ 2,188,018 $ 1,744,800 Cost of sales 2,038,681 1,635,334 Gross profit 149,337 109,466 Operating expenses: Selling, general and administrative 63,028 63,603 Research and developme
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q1'19 Q4'18 Q3'18 Q2'18 Q1'18 GAAP Gross Profit $ 149,337 $ 121,083 $ 118,536 $ 114,698 $ 109,466 GAAP gross margin 6.8% 6.5% 6.5% 6.8% 6.3% Adjustments Stock compensation expense (1) 1,735 1,
Slide 18: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q1 FY19 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 77,543 x4 Annualized GAAP operating income 310,172 Average invested capital (1) ÷ 1,419,489 GAAP pre-tax ROIC 21.9% Non-GAAP operating income $ 85,790 x4 Annualized non-GAA
Slide 19: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods ($ in thousands) Q1'19 Q4'18 Q1'18 GAAP Net Income $ 37,952 $ 782 $(154,910) Depreciation and amortization 29,792 29,686 29,623 Other, net* 17,752 36,926 171,685 Net change in net working capital (163,932) (6,850) (37,958) Cash provide
Slide 20: What we make, makes a difference
What we make, makes a difference” <_ wat SANMINA