Slide 1: Sanmina Q3 FY'18 Results
Sanmina Q3 FY’18 Results July 30, 2018 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 and expected improvements in fourth quarter fiscal year 2018 results, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Ex
Slide 3: Financial Results
Financial Results (Unaudited) Three Month Period ($ in millions, except per share data) Q3’18 Q2’18 Q3’17 GAAP: Revenue $1,813 $1,676 $1,711 Gross profit $119 $115 $131 Operating expense $71 $66 $64 Operating income $47 $49 $67 Other expense $6 $7 $4 Taxes $7 $17 $26 Net income $34 $25 $36 Diluted e
Slide 4: Segment Reporting - Revenue and Non-GAAP Gross Margin
Segment Reporting - Revenue and Non-GAAP Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,490 $1,408 $1,440 $1,429 $375 $1,375 $365 $357 $357 $346 7.6% 6.5% 6.3% 5.8% 5.7% 8.8% 8.4% 9.1% 8.4% 7.3% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q3'17 Q4'17 Q1'18 Q2
Slide 5: Non-GAAP P&L Performance
Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $1,813 $133 $1,755 $1,745 $126 $1,711 $117 $117 $112 $1,676 7.8% 7.2% 7.0% 6.4% 6.4% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Operating Income / Margin Earnings Per Share $71 $61 $0.74 $5
Slide 6: Summary Balance Sheet
Summary Balance Sheet ($ in Millions) 6/30/18 3/31/18 9/30/17 Cash and cash equivalents $405 $405 $407 Accounts receivable, net 1,154 1,088 1,110 Inventories 1,187 1,122 1,052 Property, plant and equipment, net 636 635 640 Deferred tax assets 346 355 477 Other assets 165 175 162 Total assets $3,893
Slide 7: Balance Sheet Metrics
Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns $1,187 $1,122 $1,047 $1,052 $1,080 $436 $407 $405 $405 $405 6.1x 6.2x 6.1x 5.9x 5.7x Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Inventory turns (annualized) are calculated as the ratio of four times
Slide 8: Q4'18 Outlook
Q4’18 Outlook The following outlook is for the fourth fiscal quarter ending September 29, 2018. These statements are forward-looking and actual results may differ materially. Revenue: $1.825B - $1.875B GAAP Diluted EPS(1) : $0.50 - $0.56 Non-GAAP Diluted EPS: $0.63 - $0.69 (1) Includes stock-based c
Slide 9: Sanmina CEO Remarks
Sanmina CEO Remarks July 30, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 10: Q3'18 Revenue Breakdown By End-Market
Q3’18 Revenue Breakdown By End-Market Sequential Y-Y YTD Growth Growth Growth Medical 17% Communications Networks 4.8% 0.5% 3.0% Communications (Networking, optical & wireless infrastructure) Networks 37% Industrial/Automotive/Defense Cloud (Industrial equipment, energy, oil and gas, LIDAR, infotain
Slide 11: Q4'18 Expectations
Q4’18 Expectations Communications Networks Slightly (Networking, optical & wireless infrastructure) Industrial/Automotive/Defense (Industrial equipment, energy, oil and gas, LIDAR, infotainment, control systems and defense & aerospace) Medical (MRI, CT scan, blood glucose meters, infusion and
Slide 12: Summary
Summary Q3’18 – Strong revenue and good progress on new program ramps – Profit impacted by under-utilized capacity, and inefficiencies due to material shortages Q4’18 – Demand remains strong – Improved profitability as we better utilize capacity and reduce our cost inefficiencies – Pipeline of n
Slide 13: Consolidated Financial Statements: Reconciliation of GAAP vs. Non-GAAP
Sanmina Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended June 30, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence
Slide 14: GAAP Condensed Consolidated Balance Sheet
GAAP Condensed Consolidated Balance Sheet June 30, September 30, ($ in thousands) 2018 2017 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 404,777 $ 406,661 Accounts receivable, net 1,153,930 1,110,334 Inventories 1,187,006 1,051,669 Prepaid expenses and other current assets 48,279 4
Slide 15: GAAP Condensed Consolidated Statement of Operations
GAAP Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended Nine Months Ended June 30, July 1, June 30, July 1, ($ in thousands, except per share amounts) 2018 2017 2018 2017 Net sales $ 1,813,366 $ 1,711,377 $ 5,233,795 $ 5,113,616 Cost of sales 1,694,830 1,580,689 4,891,095
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (Unaudited) Three Month Periods ($ in thousands, except per share data) Q3'18 Q2'18 Q1'18 Q4'17 Q3'17 GAAP Gross Profit $ 118,536 $ 114,698 $ 109,466 $ 123,851 $ 130,688 GAAP gross margin 6.5% 6.8% 6.3% 7.1% 7.6% Adjustments Stock compensation expense (1) 2,055 1,
Slide 17: Pre-tax Return on Invested Capital (ROIC)
Pre-tax Return on Invested Capital (ROIC) (Unaudited) Q3 FY18 Pre-tax Return on Invested Capital (ROIC) GAAP operating income $ 47,060 x 4 Annualized GAAP operating income 188,240 Average invested capital (1) ÷ 1,346,374 GAAP pre-tax ROIC 14.0% Non-GAAP operating income $ 54,465 x 4 Annualized non-G
Slide 18: Condensed Consolidated Cash Flow
Condensed Consolidated Cash Flow (Unaudited) Three Month Periods ($ in thousands) Q3'18 Q2'18 Q3'17 GAAP Net Income $ 33,963 $ 24,632 $ 36,404 Depreciation and amortization 29,632 29,879 29,271 Other, net* 18,516 11,676 24,010 Net change in net working capital (20,354) (40,504) (30,664) Cash provide
Slide 19: What we make, makes a difference
What we make, makes a difference” <_ wat SANMINA