Slide 1: Sanmina Q3 FY'19 Results
Sanmina Q3 FY’19 Results July 29, 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 fourth quarter fiscal 2019 results and its expectations relating to the materials environment, constitute forward-looking statements within the meaning of the safe harbor provisions of Sec
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q3'19 (A) Q3'19 Outlook WAS Revenue: $2.027B $1.925 - $2.025B GAAP Diluted EPS: $0.60 $0.60 - $0.70 Non-GAAP Diluted EPS(1): $0.82 $0.72 - $0.82 (1)See slide 17 for non-GAAP reconciliation. 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Period ($ in millions, except per share data) Q3’19 Q2’19 Q3’18 GAAP: Revenue $2,027 $2,127 $1,813 Gross profit $148 $153 $119 Operating expense $80 $75 $71 Operating income $67 $78 $47 Other expense $9 $9 $6 Taxes $16 $28 $7 Net income $43 $41 $34 Diluted e
Slide 5: Q3'19 Revenue By End-Market
Q3’19 Revenue By End-Market Communications $ in Millions Q3’19 Sequential Y-Y Networks Medical 36% Communications Networks Communications (Networking, optical & wireless infrastructure) $736 (3.2%) 9.4% Networks Cloud Industrial/Medical/Defense/Automotive Solutions Cloud 9% Solutions (Industrial equ
Slide 6: Segment Reporting - Revenue and Non-GAAP Gross Margin
Segment Reporting - Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,793 $1,793 $1,720 $456 $1,554 $375 $382 $395 $1,490 $362 11.2% 6.3% 6.4% 6.4% 10.2% 6.2% 8.9% 5.7% 8.4% 6.6% Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19
Slide 7: Non-GAAP P&L Performance
Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $151 $155 $150 $2,188 $2,127 $2,027 $1,813 $1,876 $124 $117 7.3% 7.4% 6.9% 6.4% 6.6% Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Operating Income / Margin Earnings Per Share $0.91 $0.83 $0.8
Slide 8: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 6/29/19 3/30/19 9/29/18 Cash and cash equivalents $414 $405 $420 Accounts receivable, net 1,235 1,313 1,177 Contract Assets 387 402 - Inventories 915 1,007 1,374 Property, plant and equipment, net 635 640 643 Deferred tax assets 308 312 344 Other assets 125 128
Slide 9: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns* $1,374 $1,444 $1,388 $1,281 $1,187 $420 $409 $405 $414 $1,054 $1,007 $405 $915 7.7x 7.8x 5.9x 6.7x 5.5x 5.6x 5.5x 5.6x Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q1'19 Q2'19 Q2'19 Q3'19 Q3'19 Old New Old New Ol
Slide 10: Q4'19 Outlook
Q4’19 Outlook The following outlook is for the fourth fiscal quarter ending September 28, 2019. These statements are forward-looking and actual results may differ materially. Revenue: $1.9B - $2.0B GAAP Diluted EPS: $0.61 - $0.71 Non-GAAP Diluted EPS: $0.73 - $0.83 10
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: End-Market Outlook
End-Market Outlook Q4’19 FY’19 Communications Networks (Networking, optical & wireless infrastructure) Industrial/Medical/Defense/Automotive FLAT (Industrial equipment, energy, oil and gas, MRI, CT scan, blood glucose meters, infusion and ultrasound, LIDAR, infotainment, control systems and de
Slide 13: Summary
Summary Q3’19 – Result at the high-end of expectations – Operating margin of 4.0%, within the 4.0%+ range – CPS gross margins: 100 basis point Q/Q improvement – Solid free cash flow of $139.3 million Q4’19 – More normalized demand levels – Stabilization in the materials environment – Focused on
Slide 14: Consolidated Financial Statements, Reconciliation of GAAP vs. Non-GAAP
Sanmina Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended June 29, 2019 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 15: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet June 29, September 29, 2019 2018 ($ in thousands) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 414,273 $ 419,528 Accounts receivable, net 1,234,987 1,177,219 Contract assets 387,293 - Inventories 915,155 1,374,004 Prepaid expenses and other
Slide 16: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Nine Months Ended June 29, June 30, June 29, June 30, ($ in thousands, except per share data) 2019 2018 2019 2018 Net sales $ 2,026,995 $ 1,813,366 $ 6,341,652 $ 5,233,795 Cost of sales 1,879,200 1,694,830 5,891,418 4
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q3'19 Q2'19 Q1'19 Q4'18 Q3'18 GAAP Gross Profit $ 147,795 $ 153,102 $ 149,337 $ 121,083 $ 118,536 GAAP gross margin 7.3% 7.2% 6.8% 6.5% 6.5% Adjustments Stock compensation expense (1) 2,729 2,
Slide 18: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) ($ in thousands) Q3 FY19 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 67,374 x 4 Annualized GAAP operating income 269,496 Average invested capital (1) ÷ 1,458,770 GAAP pre-tax ROIC 18.5% Non-GAAP operating income $ 81,087 x 4
Slide 19: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods ($ in thousands) Q3'19 Q2'19 Q3'18 GAAP Net Income $ 42,921 $ 40,885 $ 33,963 Depreciation and amortization 29,561 29,088 29,632 Other, net* 9,960 18,687 18,516 Net change in net working capital 83,024 17,078 (20,354) Cash provided by
Slide 20: What we make, makes a difference
What we make, makes a difference” pa wat SANMINA