Slide 1: Q2 FY'24 Financial Results
Q2 FY’24 Financial Results April 29, 2024
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Jon Faust Chairman & CEO EVP & CFO 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement Certain statements made during this presentation, including our financial outlook for the third quarter fiscal 2024 and our expectations for sequential improvement in 2024 generally, constitute forward-looking statements within the meaning of the safe harbor provisions of Secti
Slide 4: Financial Overview
Financial Overview Jon Faust 4
Slide 5: Non-GAAP P&L Highlights
Non-GAAP P&L Highlights Q2’24 Outlook WAS Revenue $1.83B $1.825B - $1.925B Gross Margin 8.9% 8.3% - 8.8% Operating Margin 5.4% 5.2% - 5.6% Diluted EPS $1.30 $1.20 - $1.30 Solid Financial Results – In Line With Outlook Refer to GAAP to non-GAAP reconciliation on slide 19. 5
Slide 6: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in millions) Integrated Manufacturing Solutions Components, Products and Services $1,930 $1,822 $431 $440 $1,639 $419 $398 $1,506 $394 $1,461 13.0% 12.9% 11.8% 10.8% 7.5% 8.3% 8.0% 7.6% 7.7% 8.8% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'2
Slide 7: Balance Sheet Key Takeaways: Industry Leading Balance Sheet
Balance Sheet ($ in millions) 3/30/2024 Cash and cash equivalents $ 651 Key Takeaways: Accounts receivable, net 1,138 Contract assets 449 Strong cash position Inventories 1,384 No borrowings under $800M Revolver at quarter end Property, plant and equipment, net 641 Substantial liquidity: $1.5B
Slide 8: Second Quarter FY'24 Cash Flow Highlights
Second Quarter FY’24 Cash Flow Highlights Cash Flow From Operations ($ in millions) $235 $198 Cash Flow from Operations: $72 million $30 million Net CapEx: Disciplined ROI based approach FY'23 YTD FY'24 Free Cash Flow: $43 million Capital Expenditures ($ in millions) Non-GAAP EBITDA: $130
Slide 9: Q3'24 Outlook
Q3’24 Outlook The following outlook is for the third fiscal quarter ending June 29, 2024*. Q3’24 Revenue: $1.8B - $1.9B GAAP Diluted EPS: $0.95 - $1.05 Non-GAAP Diluted EPS: $1.22 - $1.32 *The outlook and certain statements made during this presentation, including our financial outlook for the third
Slide 10: Business Overview
Business Overview Jure Sola 10
Slide 11: Overview
Overview Q2: Overall met outlook Market: Seeing stabilization in some of our end-markets Slightly slower recovery than expected Macroeconomic uncertainty remains Sanmina’s Advantage in This Dynamic Market: Well diversified in growth markets Aligned to adapt to market dynamics Stron
Slide 12: Revenue by End-Market
Revenue by End-Market ($ in millions) Communications Networks & Cloud Infrastructure Q2’23 Q1’24 Q2’24 Change 33% Industrial/Medical/ Q/Q: (2.5%) Defense and Aerospace/ $1,362 $1,257 $1,226 Y/Y: (10.0%) Automotive Communications Networks/ Q/Q: (1.5%) $958 $618 $609 Cloud Infrastructure Y/Y: (36.4%)
Slide 13: Faster Growing and Higher Margin End-Markets
Faster Growing and Higher Margin End-Markets Cloud Infrastructure AI/ML – new opportunities Upgrades to cloud networks to meet AI traffic needs Sanmina is well positioned to benefit from growth in AI Defense & Aerospace Continue to see solid demand New program wins Medical Digital health
Slide 14: Sanmina – AI / ML End to End
Sanmina — Al / ML End to End SANMINA Consumption of Al / ML Automotive / Transportation Safety / Security ¥ ! 7, i } nade Airport Monitoring Video Surveillance Health Care/ Research Defense / Aerospace Ana = imaging Drone interdiction
Slide 15: Summary
Summary Q2’24 Solid execution Revenue: $1.83B, in line with our outlook Non-GAAP operating margin: 5.4% Non-GAAP diluted EPS: $1.30, high end of outlook Q3’24 Revenue: $1.8B - $1.9B Non-GAAP diluted EPS: $1.22 - $1.32 2024 Sequential improvement as we progress through 2024 Driving Cont
Slide 16: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: March 30, 2024 16
Slide 17: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) (Unaudited) March 30, September 30, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 650,858 $ 667,570 Accounts receivable, net 1,138,413 1,230,771 Contract assets 449,419 445,757 Inventories 1,383,739 1,477,
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 N March 30, April 1, March 30, April 1, 2024 2023 2024 2023 Net sales $ 1,834,595 $ 2,320,103 $ 3,709,393 $ 4,675,911 Cost of sales 1,679,83
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) Three Month Periods Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 GAAP Gross profit $ 154,757 $ 160,840 $ 173,428 $ 183,208 $ 191,189 GAAP Gross margin 8.4 % 8.6 % 8.5 % 8.3 % 8.2 % Adjustments Stock
Slide 20: Condensed Consolidated Cash Flow
Sanmina Corporation Condensed Consolidated Cash Flow (in thousands) (GAAP) (Unaudited) Three Month Periods Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 GAAP Net income before noncontrolling interest $ 55,309 $ 60,364 $ 65,355 $ 81,737 $ 85,307 Depreciation and amortization 30,274 30,726 30,521 29,898 29,282 Other,
Slide 21: Pre-Tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-Tax Return on Invested Capital (ROIC) ($ in thousands) (Unaudited) Three Month Periods Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 GAAP Operating income $ 75,961 $ 87,576 $ 99,266 $ 107,365 $ 120,601 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP Operating income 303,844 350,304 397,064 429,460 482
Slide 22: Reconciliation of GAAP to Non-GAAP Measures: EBITDA
Sanmina Corporation Reconciliation of GAAP to Non-GAAP Measures: EBITDA (in thousands) (Unaudited) Three Months Ended March 30, December 30, April 1, 2024 2023 2023 EBITDA GAAP Operating Income $ 75,961 $ 87,576 $ 120,601 Depreciation and amortization 30,274 30,726 29,282 GAAP EBITDA $ 106,235 $ 118
Slide 23: Thank You
SANMINA ~ ey Thank You