Sanmina Q1 FY18 Results January 29, 2018 WHAT WE MAKE, MAKES A - PowerPoint PPT Presentation

Sanmina Q1 FY’18 Results January 29, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence

Safe Harbor Statement Certain statements made during this presentation, including the Company's outlook for the second quarter fiscal year 2018, and expectations for the second half of fiscal 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 could differ materially from those projected in these statements as a result of a number of factors, including adverse changes to the key markets we target; risks arising from our international operations; competition that could cause us to lose sales; consolidation among our customers and suppliers that could adversely affect our business; and the other factors set forth in the Company's annual and quarterly reports filed with the Securities Exchange Commission (“SEC”). In addition, during the course of today's presentation, we will refer to certain non-GAAP financial information. The corresponding GAAP financial information and a reconciliation of the non-GAAP results disclosed during this presentation to their more directly comparable GAAP measures are included on slide 19 of this presentation. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this presentation, the press release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law. 2

Financial Results (Unaudited) Three Month Period ($ in millions, except per share dat a) Q1’18 Q4’17 Q1’17 Revenue GAAP: Revenue $1,745 $1,755 $1,720  Late in quarter cancellations/push-outs Gross profit $109 $124 $132 primarily in communications segment Operat ing expense $96 $81 $74 Profitability Operat ing income $14 $43 $59 Ot her expense $3 $3 $4  IMS business shipment mix worst in a Taxes $166 $14 $10 number of years Net income (loss) ($155) $26 $45  High fixed costs associated with new Dilut ed earnings (loss) per share ($2.16) $0.33 $0.58 program ramps – under absorption Non-GAAP (1) :  CPS impacted predominantly by Oil Revenue $1,745 $1,755 $1,720 and Gas Gross profit $112 $126 $136 Operat ing expense $65 $65 $64 Operat ing income $47 $61 $72 Ot her expense $3 $3 $4 Taxes $8 $8 $10 Net income $36 $50 $58 Dilut ed earnings per share $0.48 $0.64 $0.75 (1) Non-GAAP financial results exclude charges or gains relating to: stock-based compensation expenses, restructuring costs (including employee severance and benefits costs and charges related to excess facilities and assets), acquisition and integration costs (consisting of costs associated with the acquisition and integration of acquired businesses into our operations), asset impairment charges, amortization expense and amounts associated with distressed customers, litigation settlements, gains on sales of assets and redemptions of debt and adjustments for deferred tax and discrete tax items. Please refer to “Reconciliation of Non-GAAP Measures” on slide 19 of this presentation. Numbers may not foot due to rounding. 3

Segment Reporting - Revenue and Gross Margin* ($ in Millions) Integrated Manufacturing Solutions Components, Products and Services $1,440 $1,429 $1,414 $1,408 $1,382 $365 $357 $357 $351 $350 7.6% 7.3% 7.3% 6.5% 10.2% 9.5% 5.8% 8.8% 8.4% 7.3% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Integrated Manufacturing Solutions Components, Products & Services   PCB Assembly & Test Components  Products  ‒ Interconnect Systems Final System Assembly & Test ‒ Computing & Storage  • High Technology Printed Circuits ‒ Defense & Aerospace Direct Order Fulfillment • Backplane Assemblies ‒ Memory & SSD Modules • Cable Assemblies ‒ Optical & RF Modules ‒ Mechanical Systems  Services • Precision Machining ‒ Design & Engineering • Enclosures ‒ Logistics • Plastics ‒ Repair *Non-GAAP revenue and gross margin for IMS segment and CPS category includes inter-segment revenues that are eliminated under GAAP and excludes the same GAAP items that are excluded from the calculation of non-GAAP gross margin for the consolidated business. The reconciliation of non-GAAP gross margin for the consolidated business to GAAP gross margin is shown on slide 19. 4

Non-GAAP P&L Performance ($ in Millions, except per share data) Revenue Gross Profit / Margin $1,755 $136 $136 $1,745 $133 $126 $1,720 $1,711 $112 $1,682 8.1% 7.9% 7.8% 7.2% 6.4% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Earnings Per Share Operating Income / Margin $72 $71 $71 $0.76 $61 $0.75 $0.74 $47 $0.64 4.2% 4.2% 4.2% 3.5% $0.48 2.7% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 5

Summary Balance Sheet ($ in Millions) 12/30/17 9/30/17 Cash and cash equivalents $405 $407 Accounts receivable, net 1,122 1,110 Inventories 1,080 1,052 Property, plant and equipment, net 635 640 Deferred tax assets 357 477 Other assets 161 162 Total assets $3,759 $3,847 Accounts payable $1,260 $1,280 Short-term debt 169 88 Long-term debt 392 391 Other liabilities 435 440 Total stockholders' equity 1,502 1,648 Total liabilities and stockholders' equity $3,759 $3,847 6

Balance Sheet Metrics ($ in Millions) Cash and Cash Equivalents Inventory $ / Turns $1,080 $1,052 $436 $1,047 $1,019 $433 $407 $964 $405 $405 6.6x 6.2x 6.1x 6.2x 6.1x Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Invent ory t urns (annualized) are calculat ed as t he rat io of four t imes cost of sales for t he quart er t o average invent ory. Cash Cycle Days Non-GAAP Pre-Tax ROIC 24.5% 24.0% 23.8% 19.9% 46.1 42.8 42.3 14.9% 41.9 40.4 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Cash cycle days is calculat ed as days invent ory on hand (rat io of average invent ory for t he quart er t o average daily Refer t o slide 20 for pre-t ax ROIC calculat ion. cost of sales for t he quart er) plus days sales out st anding (rat io of average net account s receivable t o average daily net sales for t he quart er) minus account s payable days (rat io of 365 days divided by account s payable t urns - rat io of four 7 t imes cost of sales for t he quart er t o average account s payable).

Share Repurchase Program  Q1’18 repurchased 1 million common shares for $34.3 million at an average share price of $33.62  $531.0 million share repurchases since FY’14  $219.0 million authorized for future purchases at the end of Q1’18  Opportunistic plan Shares Repurchased (M) 6.8 5.8 4.3 4.2 1.0 0 FY'13 FY'14 FY'15 FY'16 FY'17 Q1'18 8

U.S. Tax Cuts and Jobs Act (Tax Act) – Impact to Sanmina  Supportive of tax reform  Believe it will immediately improve competitiveness of the U.S.  Q1’18 non-cash charge of $162.4 million, primarily result of estimated reduction in carrying value of deferred tax asset  No immediate plans for incremental cash repatriation – company already has an effective business model for the efficient repatriation of cash  Global Intangible Low-Taxed Income (GILTI) Provision – applies to Sanmina’s fiscal year 2019. No tax cash impact expected. Impact on GAAP tax rate not expected to be material  Q1’18 GAAP loss per share of $2.27, no additional material charges expected  SEC guidance allows use of “reasonable estimate” within a one year measurement period from quarter of enactment of the US Tax Cuts and Jobs Act 9

Consolidated Restructuring Plan  Decision to optimize and re-align cost structure across the Company to support our long term profitable growth strategy  3 Facilities – Owego, New York – Two facilities in China  Cash restructuring charges of approximately $35 million, paid through calendar 2019  $23.3 million recorded in Q1’18  Estimated $2 to $4M incremental cost savings beginning in Q4’18 from Owego, New York facility 10

Q2’18 Outlook The following outlook is for the second fiscal quarter ending March 31, 2018. These statements are forward- looking and actual results may differ materially. Revenue: $1.60B - $1.70B (1) : GAAP Diluted EPS $0.20 - $0.30 Non-GAAP Diluted EPS: $0.40 - $0.50 (1) Includes stock-based compensation expense of $0.17 and amortization of intangible assets and restructuring costs of $0.03. 11

Sanmina CEO Remarks January 29, 2018 WHAT WE MAKE, MAKES A DIFFERENCE Concept to Delivery / Advanced Technology / Manufacturing & Global Supply Chain Solutions / Systems & Intelligence

Q1’18 Revenue Breakdown By End-Market Industrial/Medical/ Defense 46% Communications Networks 39% Embedded Computing & Storage 15% Industrial/Medical/Defense Communications Networks Embedded Computing & Storage (Indust rial equipment , energy, oil and gas, medical (Net working, opt ical & wireless infrast ruct ure) (Casino gaming equipment , set -t op boxes, cinemat ography, point -of- equipment and aerospace & defense) sale equipment , aut omot ive elect ronics and st orage syst ems)  4.9%  4.9%  4.4% Sequential Numbers may not foot due to rounding. Top 10 Customers – 54.4% of Revenue 13