Celestica Inc. · TSX:CLS
Celestica — Q1 2022 Earnings Presentation
23 slides from Celestica's earnings presentation, Apr 28, 2022
Slide 1: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results April 28, 2022 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; trends in the electronics manufacturing services (EMS) industry and our segments (and/or their constituent businesses), and
Slide 3: CEO Remarks
CEO Remarks ‘Celestica”
Slide 4: Q1 2022 Highlights
Q1 2022 Highlights $US Q1 2022 Comments Aggregate 27% YTY Increase; Revenue $1.57B 31% YTY Increase in ATS 24% YTY Increase in CCS Non-IFRS Operating Margin1 4.4% Up 0.9% YTY Non-IFRS Adjusted EPS – diluted1 $0.39 Up 17 cents YTY IFRS financial measures (Directly comparable to non-IFRS financial mea
Slide 5: ATS and CCS Segment Revenue and Profitability
ATS1 and CCS2 Segment Revenue and Profitability Q1 2021 Revenue 4 Q1 2022 Revenue 5 Year over 1Q22 Revenue $ Sequential Year ATS Up 10% Up 31% ATS ATS CCS Down 1% Up 24% CCS 43% CCS 44% 56% Communications Down 1% Up 18% 57% Enterprise3 Flat Up 36% Segment 1Q21 1Q22 Income6 $ Q1 2021 % of Total Segme
Slide 6: Q1 2022 Highlights
Q1 2022 Highlights¹ $US Millions (Except for per share amounts and %) Q1 2022 B/(W) QTQ (vs. Q4 2021) B/(W) YTY (vs. Q1 2021) Revenue $1,567 $55 $332 Non-IFRS Adjusted Gross Margin 8.8% (0.8%) 0.2% Non-IFRS Adjusted SG&A $56.7 $3.2 ($3.1) Non-IFRS Operating Earnings (adjusted EBIAT) $69.3 ($5.0) $26
Slide 7: Working Capital / Capex / Non-IFRS Free Cash Flow
Working Capital / Capex / Non-IFRS Free Cash Flow1 Q1 2022 ($US) Inventory turns decreased by 0.3x sequentially 3.2 inventory turns2 (Inventory up $781M YTY and up $238M sequentially) $16.4M Capex 1% of Revenue $0.5M Non-IFRS Free Cash Flow1 Achieved positive free cash flow for the 13th consecutive
Slide 8: Balance Sheet: Net Debt $309M
Balance Sheet $US At March 31, 2022 Cash and cash equivalents $347M Revolver (excluding L/Cs) - Term Loans $656M Net Debt: $309M As of March 31, 2022, Celestica’s (i) gross debt to trailing twelve month (TTM) earnings before income taxes ratio (IFRS debt leverage ratio) was 4.3x; and (ii) gross-debt
Slide 9: Q2 2022 Guidance
Q2 2022 Guidance1 $US Revenue $1.575B - $1.725B 4.6% Non-IFRS Operating Margin at the mid-point of revenue and non-IFRS adjusted EPS guidance ranges Non-IFRS Adjusted EPS – diluted $0.38 - $0.44 Non-IFRS Adjusted SG&A $62M - $64M Q2 2022 Non-IFRS Tax Rate Estimate1 Non-IFRS Adjusted Effective Tax Ra
Slide 10: Q2 2022 End Market Revenue Outlook
Q2 2022 End Market Revenue Outlook Year-over-Year Revenue % Change ATS1 Increase low twenties Communications Increase low double-digit Enterprise2 Increase high-teens 1 ATS consists of A&D, Industrial (consisting of base industrial, PCI and energy), HealthTech, and Capital Equipment. 2 Enterprise co
Slide 11: Updated 2022 Outlook
Updated 2022 Outlook1 $US Revenue outlook At least $6.5B Non-IFRS operating margin range 4.0%-5.0% Non-IFRS Adjusted EPS targeted range $1.60 - $1.75 1 Outlook assumes that the severity of supply chain constraints does not worsen. Outlook is effective on the date provided and will only be updated th
Slide 12: Concluding Remarks
‘Celestica” Concluding Remarks
Slide 13: Higher Lifecycle Solutions revenue concentration is enabling long term profitable growth
Higher Lifecycle Solutions revenue (non-IFRS)1 concentration is enabling long term profitable growth Lifecycle Solutions Lifecycle Solutions Revenue (non-IFRS) 1 as % of Total 100% 90% 80% 67% 70% 61% 60% ATS HPS 50% 41% 47% 51% 44% 40% 41% 36% 30% 39% 33% 20% 10% 20% 23% 15% 8% 8% 0% FY 18 FY 19 FY
Slide 14: Celestica
e . Celestica™ a >
Slide 15: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results April 28, 2022
Slide 16: Appendix
Appendix oy ‘Celestica”
Slide 17: Segment Income and Margin
Segment Income and Margin1 * *Refers to notes to our Q1 2022 unaudited interim condensed consolidated financial statements (Q1 2022 interim Financial Statements) 1 Segment income is defined as a segment’s net revenue less its cost of sales and its allocable portion of selling, general and administra
Slide 18: Non-IFRS Supplementary Information
Non-IFRS Supplementary Information In addition to disclosing detailed operating results in accordance with International Financial Reporting Standards (IFRS), Celestica provides supplementary non-IFRS financial measures (including ratios based on non-IFRS financial measures) to consider in evaluatin
Slide 19: IFRS to non-IFRS Reconciliation
IFRS to non-IFRS Reconciliation* 2Q 2020 3Q 2020 4Q 2020 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 FY 2021 IFRS Revenue $ 1,492.4 $ 1,550.5 $ 1,386.6 $ 1,234.9 $ 1,420.3 $ 1,467.4 $ 1,512.1 $ 1,566.9 $ 5,634.7 Net earnings (loss) 13.3 30.4 20.1 10.5 26.3 35.2 31.9 21.8 103.9 Earnings (loss) per share - dil
Slide 20: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 FY 2021 IFRS Net earnings (loss) $ 10.5 $ 26.3 $ 35.2 $ 31.9 $ 21.8 $ 103.9 As a percentage of revenue 0.9% 1.9% 2.4% 2.1% 1.4% 1.8% Non-IFRS adjusted net Employee stock-based compensation expense 10.1 5.5 8.6 9.2 14.6 33.
Slide 21: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* (1) Management uses non-IFRS operating earnings (adjusted EBIAT) as a measure to assess performance related to our core operations. Non-IFRS operating earnings (adjusted EBIAT) is defined as earnings (loss) before income taxes, Other Charges (recoveries) (d
Slide 22: Non-IFRS Supplementary Information…continued
Non-IFRS Supplementary Information…continued The following table sets forth a reconciliation of our IFRS tax expense and IFRS effective tax rate to our non-IFRS adjusted tax expense and our non-IFRS adjusted effective tax rate for the periods indicated, in each case determined by excluding the tax b
Slide 23: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results April 28, 2022