Celestica Inc. · TSX:CLS
Celestica — Merger or Acquisition (September 2021)
18 slides from Celestica's merger presentation, Sep 22, 2021
Slide 1: Celestica to Advance High Growth, High-Margin Strategy with Acquisition of PCI
Celestica to Advance High Growth, High-Margin Strategy with Acquisition of PCI Investor Presentation September 22, 2021 + 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward - Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to our future growth, prospects and possible future actions; trends in the electronics manufacturing services (EMS) industry and our segments (an
Slide 3: Non-IFRS Financial Measures, PCI Information and Selected Peer Information
Non-IFRS Financial Measures, PCI Information and Selected Peer Information Non-IFRS Financial Measures In addition, this presentation refers to non-International Financial Reporting Standards (IFRS), non-US GAAP and non-Singapore Financial Reporting Standards (International) (“SFRS(I)”) financial me
Slide 4: Today's Speakers
Today’s Speakers Rob Mionis Mandeep Chawla Eng Lin (“EL”) Teo Chief Executive Officer Chief Financial Officer Chief Executive Officer Celestica Celestica PCI Limited 4
Slide 5: Strong Foundation to Drive Shareholder Value
Strong Foundation to Drive Shareholder Value Reshaped our portfolio to better Disengaged from $1.25B in non-strategic revenue align with our strategy Drove $75M network-wide efficiencies program, Engaged in restructuring actions to 1 Transformation decrease cost base supporting 6 consecutive qua
Slide 6: PCI: One of the Largest Asia EMS Providers with an Exclusive Focus on Diversified Markets
PCI: One of the Largest Asia EMS Providers with an Exclusive Focus on Diversified Markets COMPANY OVERVIEW MANUFACTURING SITES & DESIGN CENTERS FOOTPRINT • Based in Singapore with five design and manufacturing centers strategically located in Asia • 50 years of operational expertise with a deep unde
Slide 7: Compelling Benefits to Long-term Strategy
Compelling Benefits to Long-term Strategy Provides Foothold In Attractive Markets Will increase engineering capabilities, customer diversification and talent Strengthens approach toward engineering-focused engagements, including full Telematics Industrial product development in the following areas
Slide 8: PCI Acquisition Directly Aligned with M&A Criteria
PCI Acquisition Directly Aligned with M&A Criteria Purchase • $306 million in cash Price • Represents attractive EV/Adj. EBITDA(1) multiple of less than 7x • Accretive to non-IFRS adjusted EPS(2) in the first year Financial Impact • ROI(3) expected to exceed Celestica’s cost of capital by the second
Slide 9: PCI's Strong Outlook is Expected to be Accretive to Celestica's Financial Metrics
PCI’s Strong Outlook is Expected to be Accretive to Celestica’s Financial Metrics PCI FINANCIAL OVERVIEW 2021 Projected Revenue(1) $325M Revenue CAGR (3-year)(2) 10% Diversified % 100% 2021 Projected Adj. EBITDA(3) $45M 2021 Projected Adj. EBITDA Margin(3) 13.9% Note: Year-to-date PCI financial info
Slide 10: Compelling, High Growth Business That Accelerates Celestica's Strategy
Compelling, High Growth Business That Accelerates Celestica’s Strategy Celestica Plexus Benchmark ATS + PCI ATS + PCI will be comparable in size and diversification to Plexus and Total Revenue $2.4bn $3.4bn $2.1bn Benchmark. Long Term 5% 10% 9%-12% ATS + PCI will have a targeted revenue Growth T
Slide 11: Steady Margin Expansion Creates Opportunity to Unlock Shareholder Value
Steady Margin Expansion Creates Opportunity to Unlock Shareholder Value Celestica non-IFRS Adjusted Gross Margin(1) LTM Gross Margin(2)(3) vs. LTM EV/EBITDA(4) 10.0 Plexus 8.8% +40bps II I 9.0 Benchmark LTM EV / adj. EBITDA 8.0 6.6% Flex +180 bps 7.0 6.0 Jabil Sanmina 5.0 4.0 III IV 3.0 3Q19 2Q21 7.
Slide 12: Raising 2022 Outlook
Raising 2022 Outlook (1) Reflects Expected Top-line Growth and Non-IFRS Operating Margin(2) Expansion as a Result of PCI Acquisition Celestica (Pre-PCI) Celestica (Post-PCI) Revenue outlook $6.0B, or more $6.3B, or more Non-IFRS operating margin range 3.75%-4.50% 4.0%-5.0% ATS segment revenue Not Pr
Slide 13: PCI will immediately increase Celestica's exposure to new high-growth markets
PCI will immediately increase Celestica’s exposure to new high-growth markets and provides capability platforms for its existing ATS businesses Radio PCI Platforms IoT HMI Embedded Systems Frequency Smart Home Industrial Equipment PCI end markets Telematics Specialty Equipment Industrial & Smart Ene
Slide 14: ~ Celestica-
~ Celestica- a ~~
Slide 15: Appendix
Appendix “Celestica’ alors
Slide 16: Appendix: Definitions of non-IFRS financial measures and assumptions
Appendix Definitions of non-IFRS financial measures and assumptions used in forecasting • Celestica’s non-IFRS operating margin is defined as non-IFRS operating earnings (adjusted EBIAT) as a percentage of revenue. Celestica’s non-IFRS operating earnings (adjusted EBIAT) is defined as earnings (loss
Slide 17: Appendix: Definitions of non-IFRS financial measures (continued)
Appendix Definitions of non-IFRS financial measures and assumptions used in forecasting …continued. • PCI’s non-SFRS(I) adjusted EBITDA as of the date of determination is defined as earnings (loss) before income taxes, PCI Other Charges (recoveries) (defined below), finance costs, amortization of in
Slide 18: Appendix: Assumptions Used in Forecasted Financial Measures
Appendix Definitions of non-IFRS financial measures and assumptions used in forecasting…continued. Assumptions Used in Forecasted Financial Measures for Celestica and PCI • In estimating certain forecasted metrics, including; (1) Celestica’s revenues and gross margin for 2021 (footnote (1), Slide 11