Slide 1: Fourth Quarter and Fiscal Year 2022 Results
Fourth Quarter and Fiscal Year 2022 Results November 7, 2022
Slide 2: Today's Presenters
Today’s Presenters Jure Sola Kurt Adzema 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 first quarter and expectations for fiscal year 2023 constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of
Slide 4: Q4 and FY'22 Overview
Q4 and FY’22 Overview Strong broad-based revenue growth Margin expansion and EPS growth Solid cash generation Ongoing supply constraints Macro-economic uncertainty Exceptional Job By The Sanmina Team 4
Slide 5: Sanmina and Reliance Joint Venture
Sanmina and Reliance Joint Venture ‘Make in India’ Closed on October 3, 2022 Partnership with well known Indian company Focused on high technology, mission critical markets Established state-of-the-art manufacturing technology center of excellence – Sanmina’s 100-acre campus Leveraging Rel
Slide 6: Financial Overview
Financial Overview Kurt Adzema
Slide 7: Q4'22 Non-GAAP Actual Results vs Outlook
Q4’22 Non-GAAP Actual Results vs Outlook Q4’22 Outlook WAS Revenue $2.2B $1.95B - $2.05B Gross Margin 8.3% 8.1% - 8.6% Operating Margin 5.6% 5.0% - 5.6% Diluted EPS $1.50 $1.27 - $1.37 Strong Demand and Solid Execution 7
Slide 8: Q/Q P&L Performance
Q/Q P&L Performance ($ in millions, except per share data) Revenue Non-GAAP Gross Profit / Margin $182 $2,203 $169 $2,019 $149 $156 $1,912 $135 $1,757 $1,644 8.5% 8.4% 8.3% 8.2% 8.1% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Non-GAAP Operating Income / Margin Non-GAAP Diluted Earni
Slide 9: Segment Reporting – Revenue and Non-GAAP Gross Margin
Segment Reporting – Revenue and Non-GAAP Gross Margin* ($ in millions) Integrated Manufacturing Solutions Components, Products and Services $447 $1,800 $428 $1,558 $1,625 $390 $1,425 $367 $1,320 $357 7.5% 7.3% 7.0% 7.2% 12.8% 11.6% 12.1% 11.9% 11.9% 6.8% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'
Slide 10: Y/Y P&L Performance
Y/Y P&L Performance ($ in millions, except per share data) Revenue Non-GAAP Gross Profit / Margin $7,890 $656 $6,960 $6,757 $538 $569 8.4% 8.3% 7.7% FY'20 FY'21 FY'22 FY'20 FY'21 FY'22 Non-GAAP Operating Income / Margin Non-GAAP Diluted Earnings Per Share $417 $4.99 $334 $3.97 $291 5.3% $3.05 4.9% 4
Slide 11: Strong Balance Sheet
Strong Balance Sheet ($ in Millions) 10/1/2022 Cash and cash equivalents Accounts receivable, net $ 530 1,139 Key Takeaways: Contract assets 504 Inventories 1,691 Solid cash position Property, plant and equipment, net Deferred tax assets 575 199 Substantial liquidity: $1.4B Other assets 222 Re
Slide 12: Cash Flow and Capital Allocation
Cash Flow and Capital Allocation Capital Allocation Cash Flow from Q4 FY’22: $82M Priorities: Operations: FY’22: $331M Net CapEx: Q4 FY’22: $48M Fund organic growth FY’22: $130M Investing in growth markets, technology and Strategic transactions capabilities Debt reduction Free Cash F
Slide 13: Q1'23 Outlook
Q1’23 Outlook The following outlook for the first fiscal quarter ending December 31, 2022*. Q1’23 Revenue: $2.1B - $2.2B GAAP Diluted EPS(1): $1.22 - $1.32 Non-GAAP Diluted EPS(1): $1.41 - $1.51 (1) Reflects the non-cash reduction in net income of an estimated $2.5 million for partner’s equity inter
Slide 14: Business Overview
SANMINA ~ ey | Business Overview Jure Sola
Slide 15: Y/Y Financial Highlights
Y/Y Financial Highlights ($ in millions, except per share data) Revenue Non-GAAP Operating Income / Margin Non-GAAP Diluted Earnings Per Share 16.8% 5.3% 25.6% 4.9% $4.99 $7,890 $417 $3.97 $6,757 $334 FY'21 FY'22 FY'21 FY'22 FY'21 FY'22 Positive Momentum In Our Business Refer to GAAP to non-GAAP rec
Slide 16: Revenue by End-Market
Revenue by End-Market ($ in millions) Q4’22 FY’22 Y/Y Q4’21 Q3’22 Q4’22 Growth % of FY’21 FY’22 % of Growth Sales Sales Industrial/Medical/ Q/Q: 5.7% $920 $1,218 $1,288 58.5% $3,890 $4,715 21.2% 59.8% Defense/Automotive Y/Y: 40.0% Communications Q/Q: 14.2% Networks & Cloud $724 $801 $915 Y/Y: 26.3%
Slide 17: Sanmina's Competitive Advantage
Sanmina’s Competitive Advantage Key Differentiator: Customer centric Deep technical market expertise Complex, mission critical end-to-end solutions Design and engineering through entire lifecycle Embedded resilience Supply chain simplification – vertical integration Regional manufactur
Slide 18: Industrial Market
Industrial Market Focus Areas: Inverters and renewable energy systems Test and measurement Security and public safety equipment Optical inspection and industrial x-ray equipment Semiconductor capital equipment Why Excited: Diverse and growing market Early stages of outsourcing Govern
Slide 19: Medical Market
Medical Market Focus Areas: Diagnostic imaging Patient monitoring Laboratory/biotech Therapeutic Surgical Medical delivery systems Why Excited: Continued outsourcing opportunities Growth market Industry expertise Stringent medical registrations and certifications 19
Slide 20: Defense and Aerospace Market
Defense and Aerospace Market Focus Areas: Aircraft defense and commercial systems Tactical communications Unmanned aerial systems Satellite systems Other… Why Excited: Products, components and EMS offerings Long product life-cycle High complexity, heavily regulated market Rigorous
Slide 21: Automotive Market
Automotive Market Focus Areas: E-motor power systems Safety systems LIDAR and radar systems Electronic control systems Charging stations Infotainment Why Excited: Growth in EV and advanced automotive electronics More technology going into cars Industry expertise Heavily regulated
Slide 22: Communications Networks and Cloud Infrastructure
Communications Networks and Cloud Infrastructure Focus Areas: 5G mobile networks Optical packaging Switching and IP routing Cloud infrastructure Why Excited: Deep industry expertise Demand for greater bandwidth and faster data Greater need for storage Long-term relationships with key
Slide 23: Q1'23 End-Market Outlook
Q1’23 End-Market Outlook Industrial Medical Defense & Aerospace Automotive Communications Networks Cloud Infrastructure Strong Demand Across All End-Markets 23
Slide 24: FY'23 Outlook
FY’23 Outlook Excited About Sanmina’s Future Growth from new and existing programs Diversification in growth markets Margin expansion driven by: Revenue growth in IMS and CPS Manufacturing efficiencies OPEX leverage Cash generation to fund growth 24
Slide 25: Priorities Have Not Changed
Priorities Have Not Changed Proven to Deliver Results Leading Technology, Lean and Sustainable Profitable Maximizing Customer Centric Flexible Global Structure Revenue Growth Cash Flow Generation Shareholder Value Attract and retain long-term A competitive advantage that Focused on customers i
Slide 26: Summary
Summary Solid execution – consistent and predictable results Will continue to diversify revenue Well positioned to navigate market dynamics Healthy balance sheet to build on Strong cash generation to fund future growth Expect Revenue and EPS Growth and Margin Expansion in FY’23 26
Slide 27: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: October 1, 2022
Slide 28: Condensed Consolidated Balance Sheets
Sanmina Corporation Condensed Consolidated Balance Sheets ($ in thousands) (GAAP) October 1, October 2, 2022 2021 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 529,857 $ 650,026 Accounts receivable, net 1,138,894 1,192,434 Contract assets 503,674 348,741 Inventories 1,691,081 1,036,
Slide 29: Condensed Consolidated Statements of Income
Sanmina Corporation Condensed Consolidated Statements of Income ($ in thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended Twelve Months Ended October 1, October 2, October 1, October 2, 2022 2021 2022 2021 Net sales $ 2,202,561 $ 1,643,976 $ 7,890,475 $ 6,756,643 Cost of sales
Slide 30: 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 Twelve Month Periods Q4'22 Q3'22 Q2'22 Q1'22 Q4'21 FY22 FY21 FY20 GAAP Gross Profit $ 178,389 $ 165,189 $ 152,447 $ 144,489 $ 130,882 $ 640,514 $ 551,805 $ 525,7
Slide 31: Condensed Consolidated Cash Flow
Sanmina Corporation Condensed Consolidated Cash Flow ($ in thousands) (Unaudited) Three Month Periods Twelve Month Periods Q4'22 Q3'22 Q2'22 Q1'22 Q4'21 FY22 FY21 GAAP Net Income $ 64,724 $ 79,543 $ 53,220 $ 58,634 $ 56,565 $ 256,121 $ 268,998 Depreciation and amortization 26,686 27,065 27,567 27,46
Slide 32: Pre-Tax Return on Invested Capital (ROIC)
Sanmina Corporation Pre-Tax Return on Invested Capital (ROIC) ($ in thousands) (Unaudited) Three Month Periods Q4 FY22 Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 GAAP operating income $ 109,510 $ 94,618 $ 82,226 $ 81,433 $ 66,753 x 4.0 4.0 4.0 4.0 4.0 Annualized GAAP operating income 438,040 378,472 328,904 32
Slide 33: Thank You
SANMINA ~ ey Thank You