Celestica Inc. · TSX:CLS
Celestica — Q1 2021 Earnings Presentation
22 slides from Celestica's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results April 29, 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; trends in the electronics manufacturing services (EMS) industry and our segments (including the components thereof), and the
Slide 3: CEO Remarks
CEO Remarks ‘Celestica”
Slide 4: Q1 2021 Highlights
Q1 2021 Highlights $US Q1 2021 Comments Aggregate 6% YTY Decrease; (Aggregate 7% YTY Increase in non-Cisco revenues1) Revenue $1.23B 3% YTY Decrease in ATS 9% YTY Decrease in CCS IFRS Net Earnings $10.5M Up $13.7M YTY IFRS Earnings per Share - diluted $0.08 Up 10 cents YTY Non-IFRS Operating Margin
Slide 5: ATS and CCS Segment Revenue and Profitability
ATS1 and CCS2 Segment Revenue and Profitability Q1 2020 Revenue 5 Q1 2021 Revenue 6 Year over 1Q21 Revenue $ Sequential Year ATS Up 4% Down 3% ATS ATS CCS Down 19% Down 9% 41% 43% CCS CCS Non-Cisco CCS3 Down 16% Up 16% 59% 57% Communications4 Down 16% Down 2% Enterprise4 Down 27% Down 21% Segment 1Q
Slide 6: Q1 2021 Highlights
Q1 2021 Highlights¹ B/(W) QTQ B/(W) YTY $US Millions (Except for per share amounts and %) Q1 2021 (vs. Q4 2020) (vs. Q1 2020) Revenue $1,235 ($151.7) ($83.7) Non-Cisco2 ($118.4) $79.7 IFRS Net Earnings $10.5 ($9.6) $13.7 IFRS Earnings per Share - diluted $0.08 ($0.08) $0.10 Non-IFRS Adjusted Gross M
Slide 7: Working Capital / Capex / Non-IFRS Free Cash Flow
Working Capital / Capex / Non-IFRS Free Cash Flow1 Q1 2021 ($US) Inventory turns decreased by 0.4x sequentially 4.0 inventory turns2 (Inventory up $62M sequentially and up $81M YTY) $13M Capex ~1% of Revenue $20.9M Free Cash Flow1 Achieved positive free cash flow for the 9th consecutive quarter Cash
Slide 8: Net Cash: $9M
Balance Sheet $US At March 31, 2021 Cash and cash equivalents $449M Revolver (excluding L/Cs) - Term Loans $440M Net Cash: $9M As of March 31, 2021, Celestica’s non-IFRS debt leverage ratio was 1.4x. See the Appendix for a reconciliation of non-IFRS debt leverage ratio to the most directly comparabl
Slide 9: Q2 2021 Outlook and Non-IFRS Tax Rate Estimate
Q2 2021 Outlook1 $US Revenue $1.325B - $1.425B 3.5% Non-IFRS Operating Margin at the mid-point of revenue and non-IFRS adjusted EPS guidance ranges Non-IFRS Adjusted EPS – diluted $0.21 - $0.27 Non-IFRS Adjusted SG&A $54M - $56M Q2 2021 Non-IFRS Tax Rate Estimate Non-IFRS Adjusted Effective Tax Rate
Slide 10: Q2 2021 End Market Revenue Outlook
Q2 2021 End Market Revenue Outlook Year over Year Revenue % Change ATS1 Increase mid teens Communications Decrease low double-digit Enterprise2 Decrease low thirties 1 ATS consists of A&D, Industrial, Energy, HealthTech, and Capital Equipment. 2 Enterprise consists of Servers and Storage. 10
Slide 11: Concluding Remarks
Concluding Remarks ‘Celestica”
Slide 12: Higher Lifecycle Solutions revenue concentration is enabling long term profitable growth
Higher Lifecycle Solutions revenue concentration is enabling long term profitable growth Lifecycle Solutions Lifecycle Solutions Revenue as % of Total 59% 51% 47% ATS HPS 39% 41% • Long program lifecycles • Extensive patent portfolio FY2017 FY2018 FY2019 FY2020 1Q21 • Highly regulated • Product road
Slide 13: ee . Celestica”
ee . Celestica” a on
Slide 14: YTY Non-IFRS Operating Margin Progression
YTY Non-IFRS Operating Margin Progression Non-IFRS Operating Margin1 vs Prior Year Quarter 3.9% 3.6% 3.5% 3.4% 2.9% 2.9% 2.9% 2.8% 2.5% 2.4% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Prior Year Quarter Non-IFRS Operating Margin Non-IFRS Operating Margin Q1 2021 was the fifth consecutive quarter of YTY
Slide 15: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results April 29, 2021
Slide 16: Appendix
Appendix oy ‘Celestica”
Slide 17: Segment Income and Margin
Segment Income and Margin1 * * *Refers to notes to our Q1 2021 unaudited interim condensed consolidated financial statements (Q1 2021 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 administ
Slide 18: IFRS to non-IFRS Reconciliation
IFRS to non-IFRS Reconciliation* 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q2021 FY 2020 IFRS Revenue $ 1,318.6 $ 1,492.4 $ 1,550.5 $ 1,386.6 $ 1,234.9 $ 5,748.1 Net earnings (loss) (3.2) 13.3 30.4 20.1 10.5 60.6 Earnings (loss) per share - diluted $ (0.02) $ 0.10 $ 0.24 $ 0.16 $ 0.08 $ 0.47 - W.A. # of shar
Slide 19: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* 1Q2020 2Q2020 3Q 2020 4Q 2020 1Q2021 FY 2020 IFRS Net earnings (loss) $ (3.2) $ 13.3 $ 30.4 $ 20.1 $ 10.5 $ 60.6 As a percentage of revenue (0.2%) 0.9% 2.0% 1.4% 0.9% 1.1% Employee stock-based compensation expense 11.3 7.7 1.7 5.1 10.1 25.8 Non-IFRS adjuste
Slide 20: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* Non-IFRS operating margin (non-IFRS operating earnings as a percentage of revenue) reconciliation to IFRS earnings (loss) before income taxes as a percentage of revenue 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q2021 IFRS Revenue $ 1,
Slide 21: IFRS to non-IFRS Reconciliation…continued
IFRS to non-IFRS Reconciliation…continued* (1) IFRS earnings (loss) per diluted share is calculated by dividing IFRS net earnings (loss) by the number of diluted weighted average shares outstanding (DWAS). In order to calculate IFRS loss per diluted share for Q1 2020, we used a DWAS of 129.0 million
Slide 22: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results April 29, 2021