Slide 1: Sanmina Q4 & FY'17 Results
Sanmina Q4 & FY’17 Results October 30, 2017 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 first quarter fiscal year 2018, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results
Slide 3: Financial Results Compared to Outlook
Financial Results Compared to Outlook Q4'17 (A) Q4'17 Outlook Revenue: $1.76B $1.725 - $1.775B Non-GAAP Diluted EPS: $0.64 $0.73 - $0.79 3
Slide 4: Financial Results
Financial Results (Unaudited) Three Month Period Twelve Month Period ($ in millions, except per share data) Q4’17 Q3’17 Q4’16 FY’17 FY’16 GAAP: Revenue $1,755 $1,711 $1,666 $6,869 $6,481 Gross profit $124 $131 $127 $520 $514 Operating expense $81 $64 $72 $293 $289 Operating income $43 $67 $55 $226 $
Slide 5: IMS Non-GAAP Revenue and Gross Margin
IMS Non-GAAP Revenue and Gross Margin* Q-Q ($ in Millions) Integrated Manufacturing Solutions Revenue increased 2.3% Q/Q and $1,440 $1,414 $1,382 $1,408 5.0% Y/Y $1,371 Gross margin impacted by new program ramps 7.7% 7.6% 7.3% 7.3% 6.5% Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 *Non-GAAP revenue and gross m
Slide 6: CPS Non-GAAP Revenue and Gross Margin
CPS Non-GAAP Revenue and Gross Margin* Q-Q ($ in Millions) Components, Products and Services Revenue increased 2.2% Q/Q and 6.7% Y/Y $365 $351 $350 $357 $342 Improved gross margin 150 bps Q/Q and 110 bps Y/Y 10.2% 9.5% 8.8% 7.7% 7.3% Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 *Non-GAAP revenue and gross marg
Slide 7: Q-Q Non-GAAP P&L Performance
Q-Q Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $1,755 $136 $136 $132 $133 $126 $1,720 $1,711 $1,682 $1,666 7.9% 7.9% 8.1% 7.8% 7.2% Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Operating Income / Margin Earnings Per Share $69 $72 $71
Slide 8: Y-Y Non-GAAP P&L Performance
Y-Y Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $6,869 $6,481 $532 $6,375 $496 $502 $519 $6,217 $436 $5,917 8.0% 8.0% 7.9% 7.7% 7.4% FY'13 FY'14 FY'15 FY'16 FY'17 FY'13 FY'14 FY'15 FY'16 FY'17 Operating Income / Margin Earnings Per Share $2.87 $275 $
Slide 9: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 9/30/17 7/1/17 10/1/16 Cash and cash equivalents $407 $436 $398 Accounts receivable, net 1,110 1,036 974 Inventories 1,052 1,047 946 Property, plant and equipment, net 640 643 618 Deferred tax assets 477 484 514 Other assets 162 164 175 Total assets $3,847 $3,80
Slide 10: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns $433 $436 $1,019 $1,047 $1,052 $398 $405 $407 $946 $964 6.6x 6.6x 6.2x 6.1x 6.2x Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Inventory turns (annualized) are calculated as the ratio of four times cost
Slide 11: Cash Utilization
Cash Utilization ($ in Millions) Cash Flow from Operations Utilization of Cash Flow from Operations Over Past Four Years $390 $307 M&A $251 Stock 13% Repurchase 43% Debt Reduction $175 9% Capital Expenditures 35% FY'14 FY'15 FY'16 FY'17 11
Slide 12: Capital Expenditures
Capital Expenditures ($ in Millions) Net Capital Expenditures* New program ramps $116 $108 Investing in our future $89 $63 FY'14 FY'15 FY'16 FY'17 * Net of proceeds from asset sales. 12
Slide 13: Share Repurchase Program
Share Repurchase Program $200 million stock repurchase plan announced September 18, 2017 Q4’17 repurchased 3.8 million common shares for $139 million and 4.3 million shares for $159.6 million in FY’17 $497 million share repurchases since FY’14 $253 million authorized for future purchases Sha
Slide 14: Q1'18 Outlook
Q1’18 Outlook The following outlook is for the first fiscal quarter ending December 30, 2017. These statements are forward-looking and actual results may differ materially. Revenue: $1.75 - $1.80B GAAP Diluted EPS(1) : $0.58 - $0.64 Non-GAAP Diluted EPS: $0.68 - $0.74 (1) Includes stock-based compen
Slide 15: Sanmina CEO Remarks
Sanmina CEO Remarks October 30, 2017 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 16: Q4'17 Revenue Breakdown By End-Market
Q4’17 Revenue Breakdown By End-Market Communications Networks 41% Embedded Computing & Storage 16% Industrial/Medical/ Defense 43% Industrial/Medical/Defense Communications Networks Embedded Computing & Storage (Industrial equipment, energy, oil and gas, medical (Networking, optical & wireless infra
Slide 17: End-market Diversification
End-market Diversification Embedded Computing & Storage 17% 25% Communications 39% Networks 47% 44% Industrial/Medical/ 28% Defense FY'13 FY'17 Industrial/Medical/Defense Communications Networks Embedded Computing & Storage (Industrial equipment, energy, oil and gas, medical (Networking, optical & w
Slide 18: Q1'18 End-market Outlook
Q1’18 End-market Outlook Industrial/Medical/Defense (Industrial equipment, energy, oil and gas and medical equipment, aerospace & defense) Communications Networks (Networking, optical & wireless infrastructure) Embedded Computing & Storage (Casino gaming equipment, set-top boxes, cinematograph
Slide 19: FY'17 Summary
FY’17 Summary Q4’17: – Revenue and cash generation in line with expectations – Operating margin and EPS challenged by new program introductions FY’17 – Overall, successful year – Revenue growth 6% Y/Y – Non-GAAP EPS expansion of 13% Y/Y – Healthy cash generation provides flexibility to fund the
Slide 20: Consolidated Financial Statements: Reconciliation of GAAP vs. Non-GAAP
Sanmina Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended September 30, 2017 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 21: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet September 30, October 1, ($ in thousands) 2017 2016 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 406,661 $ 398,288 Accounts receivable, net 1,110,334 973,680 Inventories 1,051,669 946,239 Prepaid expenses and other current assets 47,586 57,
Slide 22: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Twelve Months Ended Sept. 30, Oct. 1, Sept. 30, Oct. 1, ($ in thousdands, except per share amounts) 2017 2016 2017 2016 Net sales $ 1,755,003 $ 1,665,819 $ 6,868,619 $ 6,481,181 Cost of sales 1,631,152 1,538,548 6,348
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods Twelve Month Periods ($ in thousands, except per share data) Q4'17 Q3'17 Q4'16 FY17 FY16 GAAP Gross Profit $ 123,851 $ 130,688 $ 127,271 $ 519,911 $ 514,282 GAAP gross margin 7.1% 7.6% 7.6% 7.6% 7.9% Adjustments Stock compensation e
Slide 24: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q4 FY17 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 43,069 x 4 Annualized GAAP operating income 172,276 Average invested capital (1) ÷ 1,229,493 GAAP pre-tax ROIC 14.0% Non-GAAP operating income $ 61,146 x 4 Annualized non-G
Slide 25: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods Twelve Month Periods ($ in thousands) Q4'17 Q4'16 FY17 FY16 GAAP Net Income $ 25,848 $100,805 $138,833 $187,838 Depreciation and amortization 31,231 29,682 118,751 111,910 Other, net* 22,871 (38,968) 80,000 11,666 Net change in net wor
Slide 26: What we make, makes a difference
What we make, makes a difference” <_ wat SANMINA