Celestica Inc (CLS) 2022 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Celestica Q2 2022 Earnings Conference Call. (Operator Instructions) This call is being recorded on Tuesday, July 26, 2022.

女士們，先生們，早上好，歡迎參加 Celestica 2022 年第二季度收益電話會議。 （操作員說明）此通話將於 2022 年 7 月 26 日星期二進行錄音。

I would now like to turn the call over to Mr. Craig Oberg. Please go ahead.

我現在想把電話轉給 Craig Oberg 先生。請繼續。

Good morning, and thank you for joining us on Celestica's Second Quarter 2022 Earnings Conference Call. On the call today are Rob Mionis, President and Chief Executive Officer; and Mandeep Chawla, Chief Financial Officer.

早上好，感謝您參加 Celestica 2022 年第二季度收益電話會議。今天的電話會議是總裁兼首席執行官 Rob Mionis；和首席財務官 Mandeep Chawla。

As a reminder, during this call, we will make forward-looking statements within the meanings of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Such forward-looking statements are based on management's current expectations, forecasts and assumptions, which are subject to risks, uncertainties and other factors that could cause actual outcomes and results to differ materially from conclusions, forecasts or projections expressed in such statements. For identification and discussion of such factors and assumptions as well as further information concerning forward-looking statements, please refer to yesterday's press release, including the cautionary note regarding forward-looking statements therein, our most recent Annual Report on Form 20-F and other public filings, which can be accessed at sec.gov and sedar.com. We assume no obligation to update any forward-looking statement, except as required by law.

提醒一下，在本次電話會議中，我們將根據 1995 年美國私人證券訴訟改革法案和適用的加拿大證券法作出前瞻性陳述。此類前瞻性陳述基於管理層當前的預期、預測和假設，這些預期、預測和假設受到風險、不確定性和其他可能導致實際結果和結果與此類陳述中表達的結論、預測或預測存在重大差異的因素的影響。有關此類因素和假設的識別和討論以及有關前瞻性陳述的進一步信息，請參閱昨天的新聞稿，包括其中有關前瞻性陳述的警告說明、我們最近的 20-F 表格年度報告和其他公開文件，可在 sec.gov 和 sedar.com 上訪問。除法律要求外，我們不承擔更新任何前瞻性陳述的義務。

In addition, during this call, we will refer to various non-IFRS financial measures, including ratios based on non-IFRS financial measures consisting of non-IFRS operating earnings, non-IFRS operating margin, adjusted gross margin, adjusted return on invested capital or adjusted ROIC, adjusted free cash flow, gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio, adjusted net earnings, adjusted earnings per share or adjusted EPS, adjusted SG&A, Lifecycle Solutions revenue and adjusted effective tax rate.

此外，在本次電話會議中，我們將參考各種非 IFRS 財務指標，包括基於非 IFRS 財務指標的比率，包括非 IFRS 營業收益、非 IFRS 營業利潤率、調整後毛利率、調整後投資資本回報率或調整後的投資回報率、調整後的自由現金流、總債務與非國際財務報告準則過去 12 個月調整後的 EBITDA 槓桿比率、調整後的淨收益、調整後的每股收益或調整後的每股收益、調整後的 SG&A、生命週期解決方案收入和調整後的有效稅率。

Listeners should be cautioned that references to any of the foregoing measures during this call denote non-IFRS financial measures whether or not specifically designated as such. These non-IFRS financial measures do not have any standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other public companies that report under IFRS or report under U.S. GAAP and use non-GAAP financial measures to describe similar operating metrics.

聽眾應注意，在本次電話會議中提及任何上述措施均指非國際財務報告準則財務措施，無論是否明確指定為非國際財務報告準則財務措施。這些非 IFRS 財務指標不具有 IFRS 規定的任何標準化含義，並且可能無法與其他根據 IFRS 報告或根據美國公認會計原則報告並使用非 GAAP 財務指標描述類似運營指標的上市公司提出的類似指標相比較。

We refer you to yesterday's press release and our Q2 2022 earnings presentation, which are available at celestica.com under the Investor Relations tab for more information about these and certain other non-IFRS financial measures, including a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures from our financial statements. Unless otherwise specified, all references to dollars on this call are to U.S. dollars and per share information is based on diluted shares outstanding.

我們向您推薦昨天的新聞稿和我們的 2022 年第二季度收益報告，可在 celestica.com 的“投資者關係”選項卡下獲取有關這些和某些其他非 IFRS 財務指標的更多信息，包括歷史非 IFRS 財務指標的對賬與我們財務報表中最直接可比的 IFRS 財務指標。除非另有說明，否則本次電話會議中所有提及的美元均為美元，每股信息基於已發行的攤薄股份。

Let me now turn the call over to Rob.

現在讓我把電話轉給 Rob。

Thank you, Craig. Good morning, everyone, and thank you for joining us on today's conference call. After a strong start to the year, we have carried forward that momentum into the second quarter, delivering another quarter of solid performance. Our results met or exceeded our expectations across both our ATS and CCS segments, despite challenges presented by the macro environment. Our solid performance in the second quarter was driven by double-digit year-over-year revenue growth in both our ATS and CCS segments and higher year-over-year revenues across all of our end-markets.

謝謝你，克雷格。大家早上好，感謝您參加今天的電話會議。在今年的強勁開局之後，我們將這一勢頭延續到了第二季度，又一個季度取得了穩健的業績。儘管宏觀環境面臨挑戰，但我們的結果在 ATS 和 CCS 領域均達到或超過了我們的預期。我們第二季度的穩健表現得益於我們 ATS 和 CCS 部門的兩位數同比收入增長以及我們所有終端市場的同比收入增長。

Additionally, we are pleased to have delivered strong adjusted free cash flow in a highly volatile environment. We believe that the current environment continues to present significant opportunities for us with customer demand remaining strong. However, we remain cautious and vigilant given the risks presented by the current supply chain situation, macroeconomic challenges and other potential hurdles related to the COVID-19 and geopolitical tensions. I am pleased to say that our team has done an excellent job navigating these challenges, and we believe that our business is well-positioned to weather any further challenges on these fronts.

此外，我們很高興在高度波動的環境中提供了強勁的調整後自由現金流。我們相信，當前環境繼續為我們提供重要機遇，客戶需求依然強勁。但是，鑑於當前供應鏈形勢、宏觀經濟挑戰以及與 COVID-19 和地緣政治緊張局勢相關的其他潛在障礙所帶來的風險，我們仍保持謹慎和警惕。我很高興地說，我們的團隊在應對這些挑戰方面做得非常出色，我們相信我們的業務已做好準備，以應對這些方面的任何進一步挑戰。

In early June, our Batam, Indonesia facility experienced a fire in their warehouse. Thankfully, no one was hurt and the facility was back online a few weeks later. Although we lost inventory in the fire, we anticipate the site will be at pre-incident production rates as we exit the year. The financial impact to the second quarter was minimal, and we expect that the impact to our 2022 annual top line will be less than $100 million, and will be made up in 2023. We have insurance that largely covers the impact of the fire, including building restoration, inventory and disruption to the business.

6 月初，我們在印度尼西亞巴淡島的工廠的倉庫發生火災。值得慶幸的是，沒有人受傷，幾週後該設施恢復了在線狀態。儘管我們在火災中損失了庫存，但我們預計，當我們退出今年時，該站點將處於事故前的生產速度。對第二季度的財務影響微乎其微，我們預計對我們 2022 年年度收入的影響將低於 1 億美元，並將在 2023 年彌補。我們的保險主要涵蓋火災的影響，包括建立恢復、庫存和業務中斷。

Given the solid demand backdrop across our businesses and our demonstrated ability to navigate the present challenges, we are pleased to raise our full-year 2022 guidance to $6.7 billion or more in revenue and tighten our non-IFRS adjusted EPS range to between $1.65 and $1.75.

鑑於我們業務的強勁需求背景以及我們應對當前挑戰的能力，我們很高興將我們的 2022 年全年收入指引提高到 67 億美元或更多，並將我們的非 IFRS 調整後每股收益範圍收窄至 1.65 美元至 1.75 美元之間.

Before offering some additional color on our outlook for each of our businesses, I would like to turn the call over to Mandeep, who will provide additional details on our financial performance in the second quarter as well as our guidance for the third quarter. Over to you, Mandeep.

在為我們每項業務的前景提供一些額外顏色之前，我想將電話轉給 Mandeep，他將提供有關我們第二季度財務業績的更多細節以及我們對第三季度的指導。交給你了，曼迪普。

Thank you, Rob, and good morning, everyone. Second quarter 2022 revenue came in at $1.72 billion, at the high-end of our guidance range. Revenue was up 21% year-over-year and up 10% sequentially, fueled by revenue growth across our end-markets. We delivered non-IFRS operating margin of 4.8%, 20 basis points higher than the midpoint of our revenue and non-IFRS adjusted EPS guidance ranges driven by solid results in both our ATS and CCS segment. Non-IFRS operating margin was up 90 basis points year-over-year, and up 40 basis points sequentially. Non-IFRS adjusted earnings per share were $0.44, at the high-end of our guidance range and up $0.14 year-over-year and up $0.05 sequentially.

謝謝你，Rob，大家早上好。 2022 年第二季度的收入為 17.2 億美元，處於我們指導範圍的高端。在我們終端市場收入增長的推動下，收入同比增長 21%，環比增長 10%。我們實現了 4.8% 的非國際財務報告準則營業利潤率，比我們的收入中點和非國際財務報告準則調整後的每股收益指導範圍高 20 個基點，這得益於我們的 ATS 和 CCS 部門的穩健業績。非國際財務報告準則營業利潤率同比增長 90 個基點，環比增長 40 個基點。非國際財務報告準則調整後每股收益為 0.44 美元，處於我們指導範圍的高端，同比增長 0.14 美元，環比增長 0.05 美元。

ATS segment revenue was up 24% year-over-year in the second quarter, above our expectations of low 20 percentage year-over-year increase. Sequentially, ATS segment revenue was flat. The year-over-year growth in ATS segment revenue was driven by higher revenue across all ATS businesses, with particular strength in Capital Equipment and our Industrial business. The year-over-year performance also benefited from the addition of PCI.

第二季度 ATS 部門收入同比增長 24%，高於我們對同比低 20% 的預期。隨後，ATS 部門的收入持平。 ATS 部門收入的同比增長是由所有 ATS 業務的收入增加推動的，尤其是資本設備和我們的工業業務。同比表現也受益於 PCI 的加入。

Our CCS segment delivered another strong quarter with revenue up 19% year-over-year driven by strength from our Communications and Enterprise markets led by our HPS business. CCS segment revenue was 17% higher sequentially.

在我們的 HPS 業務引領的通信和企業市場的強勁推動下，我們的 CCS 部門實現了又一個強勁的季度，收入同比增長 19%。 CCS 部門收入環比增長 17%。

Our HPS business delivered revenue of $459 million in the second quarter, up 52% year-over-year, driven by strong demand and new program ramps with service providers, supported by continuing capital investments in data centers. Communications revenue was up 12% year-over-year, in line with our expectations of a low double-digit percentage increase and was up 14% sequentially. Year-over-year and sequential growth was driven by our HPS business.

我們的 HPS 業務在第二季度實現了 4.59 億美元的收入，同比增長 52%，這得益於強勁的需求和服務提供商的新計劃增加，以及對數據中心的持續資本投資。通信收入同比增長 12%，符合我們預期的低兩位數百分比增長，環比增長 14%。我們的 HPS 業務推動了同比和連續增長。

Enterprise revenue in the quarter was up 36% year-over-year, better than our expectation of a high-teens percentage increase. Sequentially, Enterprise revenue was 25% higher. The year-over-year increase was driven by strong demand across both compute and storage customers, fueled by demand in our HPS business and new program ramps.

本季度企業收入同比增長 36%，好於我們預期的 10% 以上的增長。隨後，企業收入增長了 25%。同比增長是由計算和存儲客戶的強勁需求推動的，這得益於我們對 HPS 業務的需求和新計劃的增加。

Turning to segment margins. ATS segment margin was 4.5% in the second quarter, up 40 basis points year-over-year, and down 50 basis points sequentially. The year-over-year margin increase was driven by improved operating leverage from higher volumes and the addition of PCI.

轉向段邊距。第二季度 ATS 部門利潤率為 4.5%，同比增長 40 個基點，環比下降 50 個基點。利潤率同比增長是由於銷量增加帶來的運營槓桿提高和 PCI 的增加。

PCI segment margin of 5.0%, our highest recorded CCS segment margins ever, was up 130 basis points year-over-year and up 110 basis points sequentially. The year-over-year and sequential margin increase was driven by improved leverage from higher volume and improved mix due to growth in our HPS business.

PCI 部門利潤率為 5.0%，是我們有史以來最高的 CCS 部門利潤率，同比增長 130 個基點，環比增長 110 個基點。由於我們的 HPS 業務增長，更高的銷量和改善的組合推動了利潤率的同比和環比增長。

Moving on to some additional financial metrics. IFRS net earnings for the quarter were $36 million, or $0.29 per share compared to net earnings of $26 million or $0.21 per share in the same quarter last year and net earnings of $22 million or $0.17 per share last quarter. Adjusted gross margin was 9.0%, up 60 basis points year-over-year and up 20 basis points sequentially. The year-over-year improvement was driven by improved operating leverage due to higher volumes in both segments as well as more favorable mix.

繼續討論一些額外的財務指標。本季度的國際財務報告準則淨收益為 3600 萬美元或每股 0.29 美元，而去年同期的淨收益為 2600 萬美元或每股 0.21 美元，上一季度的淨收益為 2200 萬美元或每股 0.17 美元。調整後的毛利率為 9.0%，同比增長 60 個基點，環比增長 20 個基點。由於兩個細分市場的銷量增加以及更有利的組合，運營槓桿的提高推動了同比增長。

Non-IFRS operating earnings were $83 million, up $28 million year-over-year and up $13 million sequentially. Our non-IFRS adjusted effective tax rate for the second quarter was 22%, 2% higher year-over-year and 3% higher sequentially as a result of unfavorable jurisdictional mix. For the second quarter, non-IFRS adjusted net earnings were $54 million, up $16 million year-over-year and up $6 million sequentially. Second quarter non-IFRS adjusted ROIC of 16.2% was up 2.5% year-over-year and up 2.3% sequentially.

非國際財務報告準則營業收入為 8300 萬美元，同比增長 2800 萬美元，環比增長 1300 萬美元。由於不利的司法管轄區組合，我們第二季度的非 IFRS 調整後有效稅率為 22%，同比增長 2%，環比增長 3%。第二季度，非國際財務報告準則調整後的淨收益為 5400 萬美元，同比增長 1600 萬美元，環比增長 600 萬美元。第二季度非國際財務報告準則調整後的投資回報率為 16.2%，同比增長 2.5%，環比增長 2.3%。

Moving on to working capital. Our inventory at the end of the second quarter was $2.1 billion, up $173 million sequentially and up $883 million year-over-year. Our inventory has increased recently. I will note that our revenue for the first half of 2022 was up 24% compared to 2021, and we continue to anticipate strong revenue growth in the second half of 2022. Given this anticipated level of growth, coupled with ongoing material constraints, we have been investing in our inventory levels to ensure we can better service customer demand. We are also continuing to work with our customers to help offset the working capital impact of our inventory purchases by providing higher levels of cash deposits. As of the second quarter, our cash deposits were up over $300 million year-over-year with more than 150% increase.

轉向營運資金。我們在第二季度末的庫存為 21 億美元，環比增長 1.73 億美元，同比增長 8.83 億美元。我們的庫存最近有所增加。我會注意到，我們 2022 年上半年的收入與 2021 年相比增長了 24%，我們繼續預計 2022 年下半年的收入將強勁增長。鑑於這種預期的增長水平，加上持續的物質限制，我們有一直投資於我們的庫存水平，以確保我們能夠更好地滿足客戶需求。我們還將繼續與客戶合作，通過提供更高水平的現金存款來幫助抵消我們購買庫存的營運資金影響。截至第二季度，我們的現金存款同比增長超過 3 億美元，增幅超過 150%。

Capital expenditures for the second quarter were $21.6 million or just over 1% of revenue, while our capital expenditures in the first half of 2022 have been lower than our annual target of 1.5% to 2% of revenue. We do anticipate higher capital expenditures in the second half of 2022 to support new strategic program ramps and anticipated strong growth in Lifecycle Solutions.

第二季度的資本支出為 2160 萬美元，略高於收入的 1%，而我們 2022 年上半年的資本支出低於我們 1.5% 至 2% 的年度目標。我們確實預計 2022 年下半年的資本支出會增加，以支持新的戰略計劃增長和生命週期解決方案的預期強勁增長。

Non-IFRS adjusted free cash flow was $43.3 million in the second quarter compared to $31.2 million in the prior year period and $0.5 million last quarter. Cash cycle days were 69 in the second quarter, an improvement of 2 days year-over-year and 7 days sequentially. Cash cycle days improved on a year-over-year basis as higher repeated and higher cash deposited more than offset higher inventory days.

第二季度非國際財務報告準則調整後的自由現金流為 4330 萬美元，而去年同期為 3120 萬美元，上一季度為 50 萬美元。第二季度現金循環天數為 69 天，同比增加 2 天，環比增加 7 天。現金周期天數同比有所改善，因為更高的重複和更高的現金存款抵消了更高的庫存天數。

Moving on to some additional key metrics. Our cash balance at the end of the second quarter was $365 million, down $102 million year-over-year and up $19 million sequentially. Combined with approximately $600 million of availability under our revolver, we believe that our current liquidity of approximately $1 billion is sufficient to meet our anticipated business needs.

繼續討論一些額外的關鍵指標。我們在第二季度末的現金餘額為 3.65 億美元，同比減少 1.02 億美元，環比增加 1900 萬美元。再加上我們左輪手槍下約 6 億美元的可用性，我們相信我們目前約 10 億美元的流動性足以滿足我們預期的業務需求。

We ended the quarter with gross debt of $651 million, down $4 million from the previous quarter, leaving us with a net debt position of $286 million. Our second quarter gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio was 1.7x, down 0.1 turn sequentially and up 0.3 turns from the same quarter last year. At June 30, 2022, we are compliant with all financial covenants under our credit agreement.

我們在本季度末的總債務為 6.51 億美元，比上一季度減少了 400 萬美元，淨債務為 2.86 億美元。我們第二季度的總債務與非 IFRS 過去 12 個月調整後的 EBITDA 槓桿比率為 1.7 倍，環比下降 0.1 倍，比去年同期上升 0.3 倍。在 2022 年 6 月 30 日，我們遵守了我們的信貸協議下的所有財務契約。

During the second quarter, we repurchased approximately 1 million shares for cancellation at a cost of $9.8 million. We ended the quarter with 123.2 million shares outstanding, a reduction of approximately 3% from the prior year period.

在第二季度，我們以 980 萬美元的成本回購了大約 100 萬股股票進行註銷。我們在本季度末發行了 1.232 億股流通股，比去年同期減少了約 3%。

Our capital allocation strategy remains unchanged. Over the long-term, we aim to return 50% of our adjusted free cash flow to our shareholders, while investing 50% in our business. However, moving forward, our capital allocation priority will focus on reducing our net debt while continuing to be opportunistic with respect to share repurchases under our NCIB.

我們的資本配置策略保持不變。從長遠來看，我們的目標是將調整後自由現金流的 50% 返還給我們的股東，同時將 50% 的資金投資於我們的業務。然而，展望未來，我們的資本配置優先事項將集中在減少我們的淨債務，同時繼續在我們的 NCIB 下的股票回購方面保持機會主義。

Now turning to our guidance for the third quarter of 2022. We are guiding third quarter revenue to be in the range of $1.65 billion to $1.8 billion. If the midpoint of this range is achieved, revenue would be up 18% year-over-year and approximately flat sequentially. Third quarter non-IFRS adjusted earnings per share are expected to range from $0.41 to $0.47 per share. If the midpoint of our revenue and non-IFRS adjusted EPS guidance ranges are achieved, non-IFRS operating margin would be approximately 4.8%, an increase of 60 basis points year-over-year and flat sequentially. Non-IFRS adjusted SG&A expense for the third quarter is expected to be in the range of $64 million to $66 million. We anticipate our non-IFRS adjusted effective tax rate to be approximately 21%.

現在轉向我們對 2022 年第三季度的指導。我們將第三季度的收入指導在 16.5 億美元至 18 億美元之間。如果達到這一範圍的中點，收入將同比增長 18%，環比增長大致持平。第三季度非國際財務報告準則調整後的每股收益預計在每股 0.41 美元至 0.47 美元之間。如果我們的收入和非 IFRS 調整後每股收益指導範圍的中點實現，非 IFRS 營業利潤率將約為 4.8%，同比增長 60 個基點，環比持平。第三季度非國際財務報告準則調整後的 SG&A 費用預計在 6400 萬美元至 6600 萬美元之間。我們預計我們的非國際財務報告準則調整後的有效稅率約為 21%。

Now turning to our end market outlook for the third quarter of 2022. In our ATS end market, we anticipate revenue to be up in the high-teens percentage range year-over-year, driven by demand strength and new program ramps in Capital Equipment and Industrial. In CCS, we anticipate our Communications end market revenue to be up in the mid-to-teen percentage range year-over-year, driven by strong demand from service provider customers supported by our HPS offering. In our Enterprise end market, we anticipate revenue to also increase in the mid-teens percentage range year-over-year, supported by demand strength in our storage market and the continued growth in our HPS business.

現在轉向我們對 2022 年第三季度的終端市場展望。在我們的 ATS 終端市場中，我們預計收入將同比增長 10% 以上，這主要是由於需求強勁和資本設備新項目的增加和工業。在 CCS 中，由於我們的 HPS 產品支持的服務提供商客戶的強勁需求，我們預計我們的通信終端市場收入將同比增長 10%。在我們的企業終端市場，我們預計收入也將同比增長百分之十左右，這得益於我們存儲市場的需求強勁和我們 HPS 業務的持續增長。

I will now turn the call back over to Rob for additional color on our businesses and overall outlook.

我現在將電話轉回給 Rob，以了解我們的業務和整體前景。

Thank you, Mandeep. We believe that Celestica is a more diversified and resilient business today than at any point in our company's history. Recently, investors have heightened their focus on a number of mounting macroeconomic risks, which include interest rate hikes, inflation, supply chain constraints and the potential for a recession. Given this, I think it may be instructive for us to provide additional color for each of our businesses.

謝謝你，曼迪普。我們相信，今天的 Celestica 是一個比我們公司歷史上任何時候都更加多元化和有彈性的業務。最近，投資者更加關註一些不斷增加的宏觀經濟風險，包括加息、通貨膨脹、供應鏈限制和經濟衰退的可能性。鑑於此，我認為為我們的每項業務提供額外的顏色可能對我們具有指導意義。

One of the core pillars of our strategy has been to grow our Lifecycle Solutions business, which represented 67% of our total revenue in the second quarter of this year, up from approximately 40% of revenues compared to 5 years ago. We believe that our shift towards Lifecycle Solutions businesses has resulted in a more diversified company with healthier margins, more attractive long-term growth profile, and less exposure to consumer markets. We also believe that these characteristics position Celestica to effectively execute in a recessionary environment and gives us confidence in our long-term outlook of 10% annual Lifecycle Solutions revenue growth and 10% annual EPS growth through 2025.

我們戰略的核心支柱之一是發展我們的生命週期解決方案業務，該業務占我們今年第二季度總收入的 67%，高於 5 年前的約 40%。我們相信，我們向生命週期解決方案業務的轉變導致了一家更加多元化的公司，擁有更健康的利潤率、更具吸引力的長期增長概況以及更少的消費市場敞口。我們還認為，這些特徵使 Celestica 能夠在經濟衰退的環境中有效執行，並使我們對到 2025 年生命週期解決方案年收入增長 10% 和 EPS 年增長 10% 的長期前景充滿信心。

Turning to our outlook for our businesses. Our Capital Equipment business has continued its strong performance in Q2 2022, driven by strong secular demand, new program ramps and market share gains. We anticipate this strong performance to continue in the second half of the year.

轉向我們對業務的展望。在強勁的長期需求、新項目的增加和市場份額增長的推動下，我們的資本設備業務在 2022 年第二季度繼續保持強勁表現。我們預計這種強勁的表現將在下半年繼續。

While the trajectory of capital spending growth in the wafer fab equipment market is expected to moderate in 2023, we believe that the current semiconductor component shortages are a positive indicator of continued intended investment over the coming years. The tailwinds underpinning growth in semiconductor demand are structural rather than cyclical in our view, and while spending on trailing edge technologies, greater than 7-nanometer are likely to be impacted negatively by a recession, we believe that the demand we are seeing in leading-edge technologies, less than 7-nanometer, which represent nearly 80% of our semiconductor business is robust and far less sensitive to a broader slowdown in the economy. Additionally, we believe that our strong backlog fueled by new program wins and customer mix position us to outperform expectations for the broader wafer fab equipment market in the coming years.

雖然晶圓廠設備市場的資本支出增長軌跡預計將在 2023 年放緩，但我們認為當前的半導體元件短缺是未來幾年持續預期投資的積極指標。在我們看來，支撐半導體需求增長的順風是結構性的，而不是周期性的，雖然在超過 7 納米的前沿技術上的支出可能會受到經濟衰退的負面影響，但我們認為，我們在領先 -占我們半導體業務近 80% 的小於 7 納米的邊緣技術非常穩健，對更廣泛的經濟放緩的敏感性要低得多。此外，我們相信，新項目的勝利和客戶組合推動了我們強大的積壓工作，使我們能夠在未來幾年超越對更廣泛的晶圓廠設備市場的預期。

Moving on to our Industrial business. Our Industrial business remains a primary driver of our ATS segment revenue growth. As an example, over the past few years, we have won a number of new programs in the energy storage and generation markets, which are anticipated to generate strong revenue growth in the coming years. While the industrial market is not immune to a recession, we believe that the majority of our Industrial portfolio is not exposed to markets typically more sensitive to economic slowdowns.

繼續我們的工業業務。我們的工業業務仍然是我們 ATS 部門收入增長的主要驅動力。例如，在過去幾年中，我們在儲能和發電市場贏得了許多新項目，預計這些項目將在未來幾年產生強勁的收入增長。雖然工業市場不能倖免於衰退，但我們認為，我們的大部分工業投資組合併未暴露於通常對經濟放緩更為敏感的市場。

Additionally, we believe our growth drivers such as automotive connectivity and green energy are long-term secular investment trends and there are less likely to see major fluctuations in a recession.

此外，我們認為汽車連接和綠色能源等增長動力是長期投資趨勢，不太可能在衰退中出現重大波動。

A&D market continues to show year-over-year improvement spurred by an increase in activity in the commercial aerospace market along with increased defense investment. Within our business specifically, we believe that new defense wins along with a recovery in the commercial and business jet markets will support revenue growth moving forward. We also believe that the majority of our A&D business is somewhat insulated from a recession given the long-term nature of aircraft fleet and defense spending investment decisions.

由於商業航空市場活動的增加以及國防投資的增加，A&D 市場繼續呈現逐年改善。特別是在我們的業務中，我們相信新的防禦勝利以及商業和公務機市場的複蘇將支持收入增長。我們還認為，鑑於飛機機隊的長期性和國防開支投資決策，我們的大部分 A&D 業務在一定程度上不會受到衰退的影響。

Now I'll shift to HealthTech. We believe that our HealthTech business continues to present attractive growth opportunities as demand in areas such as surgical instruments and patient monitoring devices continue to support growth in 2022. Even in recessionary times people get sick, and we believe that the demand for the goods and services we provide should continue to grow as the population ages. Overall, we are pleased with the positioning of our ATS portfolio as we look to the second half of 2022.

現在我將轉向健康科技。我們相信，隨著手術器械和患者監護設備等領域的需求在 2022 年繼續支持增長，我們的健康科技業務將繼續呈現有吸引力的增長機會。即使在經濟衰退時期，人們也會生病，我們相信對商品和服務的需求隨著人口老齡化，我們提供的應該會繼續增長。總體而言，展望 2022 年下半年，我們對 ATS 產品組合的定位感到滿意。

Now turning to our CCS segment. Our HPS business continues to perform remarkably well recording 64% growth year-to-date compared to the prior year period and achieving approximately $820 million in revenue in the first half of 2022 with strong margins. The exceptional demand strength continues to be driven by investment in data center expansion from our service provider customers, a current trend that we believe is likely to persist for at least the near term. Our positive outlook is supported by the capital investment plans of several of our key customers and our solid order book. Additionally, our HPS business continues to gain market share from ODMs.

現在轉向我們的 CCS 部分。我們的 HPS 業務繼續表現出色，與去年同期相比增長了 64%，並在 2022 年上半年實現了約 8.2 億美元的收入，利潤率很高。我們的服務提供商客戶對數據中心擴展的投資繼續推動了異常的需求強度，我們認為目前的趨勢可能至少在短期內持續。我們的幾個主要客戶的資本投資計劃和穩固的訂單支持了我們的積極前景。此外，我們的 HPS 業務繼續從 ODM 獲得市場份額。

Given the long-term horizon and strategic nature of service providers customers capital investment plans as well as what we believe are secular rather than cyclical trend supporting data center growth, it is our view that demand in our HPS business will remain resilient in the near-term.

鑑於服務提供商客戶資本投資計劃的長期視野和戰略性質，以及我們認為支持數據中心增長的長期而非週期性趨勢，我們認為 HPS 業務的需求將在近期內保持彈性學期。

Demand in the Communications end market largely comprise of service provider customers, is expected to be robust throughout the remainder of 2022 driven by networking customers and continued strong demand for our 400G switches. Our HPS business continues to account for an increasing share of our Communications end market.

通信終端市場的需求主要由服務提供商客戶組成，在網絡客戶和對我們的 400G 交換機的持續強勁需求的推動下，預計在 2022 年剩餘時間內將保持強勁。我們的 HPS 業務繼續在我們的通信終端市場中佔據越來越大的份額。

And in our Enterprise end market, largely comprised of OEM customers, the year-over-year growth we are seeing in storage and compute is expected to continue at least in the near-term supported by a strong order book with industry leaders. However, we remain cautious in our outlook as enterprise demand has historically been more prone to cyclicality and the slowing economy.

在我們的企業終端市場（主要由 OEM 客戶組成）中，我們在存儲和計算方面看到的同比增長預計至少在短期內將繼續，這得益於行業領導者的強勁訂單支持。然而，由於企業需求歷來更容易受到週期性和經濟放緩的影響，我們對前景保持謹慎。

We believe that Celestica is built for success over the long-term. As we look ahead to the second half of 2022, I firmly believe that our business is well-positioned to take advantage of the numerous growth opportunities across our markets. Importantly, however, we believe we are also capable of weathering the macroeconomic challenges that we may encounter.

我們相信，Celestica 是為長期成功而打造的。展望 2022 年下半年，我堅信我們的業務已做好充分準備，可以利用我們市場的眾多增長機會。然而，重要的是，我們相信我們也有能力經受住可能遇到的宏觀經濟挑戰。

I continue to have great appreciation for the tireless work of our entire global team, their commitment to our values and their consistent execution have helped make our strategic vision into a reality. Our company's talent and culture instill me with the confidence that we will continue to set a high bar for the future and that we will achieve those expectations.

我繼續非常感謝我們整個全球團隊的不懈努力，他們對我們價值觀的承諾以及他們一貫的執行力幫助我們的戰略願景變為現實。我們公司的人才和文化讓我相信，我們將繼續為未來設定高標準，我們將實現這些期望。

With that, I would now like to turn the call over to the operator for questions.

有了這個，我現在想把電話轉給接線員提問。

(Operator Instructions) Your first question comes from Robert Young with Canaccord Genuity.

（操作員說明）您的第一個問題來自 Canaccord Genuity 的 Robert Young。

I was hoping that you could just talk a little bit on visibility. You gave us some comments in the prepared comments, but I just wanted to see if you've had any changes from last quarter on the visibility you're seeing in the semi-cap, particularly, are you still seeing the same -- getting the same build schedule and length of -- yes?

我希望你能談談能見度。你在準備好的評論中給了我們一些評論，但我只是想看看你在半帽中看到的可見性與上個季度相比是否有任何變化，特別是，你是否仍然看到相同的 - 得到相同的構建時間表和長度——是嗎？

Rob, yes, with specifically in semi-cap, we are -- currently customers are giving us when you're going to forecast, visibility is about 3x normal levels. Right now, even customers, because they are so anxious to get their units, they are authorizing us to ship some product, truck parts and we catch it up before it hits the fabs. There is no doubt I think, broadly speaking within Capital Equipment that there a slowdown in the memory devices, but we see that being backfilled with foundry logic orders, i.e. leading edge, that's from 7-nanometer. And as we mentioned on the call that makes about 80% of our business, combined with that mix, our strong order book and new programs, we are poised to outperform the market strongly to this year and we feel that we're well-positioned for '23 and '24 as well.

Rob，是的，特別是在半盤股中，我們是——目前客戶在你要預測時給我們，可見度大約是正常水平的 3 倍。現在，即使是客戶，因為他們非常渴望得到他們的產品，他們正在授權我們運送一些產品、卡車零件，我們在它到達工廠之前趕上它。毫無疑問，我認為，從廣義上講，Capital Equipment 內存設備的增長速度有所放緩，但我們看到，代工邏輯訂單（即來自 7 納米的領先優勢）的回填。正如我們在電話會議中提到的那樣，我們的業務約占我們業務的 80%，再加上這種組合、我們強大的訂單和新計劃，我們準備在今年強勁地跑贏市場，我們認為我們處於有利地位'23 和 '24 也是如此。

Great. And then second question for me would be on the CCS margins, which are very strong again this quarter. If you were to remove the impact of HPS, I was curious if the remaining business is still operating in that 2% to 3% target level? Is there any thought of changing the target level? And outside of HPS, how is that performing?

偉大的。然後對我來說第二個問題是 CCS 利潤率，本季度再次非常強勁。如果您要消除 HPS 的影響，我很好奇剩餘的業務是否仍在那個 2% 到 3% 的目標水平上運行？有沒有想過改變目標水平？在 HPS 之外，它的表現如何？

Rob, so HPS is performing very well, and we are very pleased with it. The margins right now are accretive to our target range. And so our target range for the company is 4% to 5% and HPS right now is operating pretty close to the high-end of that and sometimes even higher.

Rob，所以 HPS 的表現非常好，我們對此非常滿意。現在的利潤率正在增加我們的目標範圍。因此，我們對公司的目標範圍是 4% 到 5%，而 HPS 目前的運營非常接近高端，有時甚至更高。

That being said, the non-HPS portfolio within CCS continues to be very healthy and we're seeing strong growth with both service provider as well as enterprise customers. We have the ability to continue to refine the portfolio as we go, and so we're very pleased with the book of business that we have. And so that 2% to 3% historically was set with HPS being a very small contributor. And so the outsized growth is being driven by HPS and so you can back into the fact that the rest of the portfolio is operating in line with expectations.

話雖如此，CCS 中的非 HPS 產品組合仍然非常健康，我們看到服務提供商和企業客戶都在強勁增長。我們有能力在發展過程中繼續完善投資組合，因此我們對我們擁有的商業賬簿感到非常滿意。因此，歷史上設定的 2% 到 3% 是 HPS 的一個非常小的貢獻者。因此，HPS 推動了巨大的增長，因此您可以回到這樣一個事實，即投資組合的其餘部分正在按照預期運行。

In terms of going forward, clearly CCS continues to operate above that 2% to 3% range. We are considering when the right time is to adjust that. ATS is a little bit outside of its range and we would like ATS to consistently be in this range before we go and make changes to our overall targets. But very pleased with the momentum in CCS and we expect that we're going to see strong margins going forward as well.

就未來而言，顯然 CCS 繼續在 2% 至 3% 的範圍內運行。我們正在考慮何時進行調整。 ATS 有點超出其範圍，我們希望 ATS 始終處於此範圍內，然後再對我們的總體目標進行更改。但對 CCS 的發展勢頭非常滿意，我們預計未來我們也會看到強勁的利潤率。

And last question, just on the ATS margins. What would be the key areas of drag there? I assume it's A&D is still operating at below optimal levels, is that the key drag on margins in the ATS business, or are there any other areas now?

最後一個問題，就在 ATS 邊緣。那裡的阻力的關鍵領域是什麼？我認為它的 A&D 仍在低於最佳水平運行，這是 ATS 業務利潤率的關鍵拖累，還是現在還有其他領域？

You're right. A&D is not yet operating at its target margin levels. You know that it's a very heavy fixed cost business. That being said, we're very pleased with the sequential increases that we're seeing in A&D and we are starting to see the benefits of the recovery. And so we are very confident that A&D will be able to return back to its historical strong margins.

你是對的。 A&D 尚未達到其目標利潤率水平。你知道這是一項非常沉重的固定成本業務。話雖如此，我們對 A&D 的連續增長感到非常滿意，並且我們開始看到復甦的好處。因此，我們非常有信心 A&D 將能夠恢復其歷史上的強勁利潤率。

That being said, it is one of the drags on the quarter. But other than that was primarily ramping programs, we're very pleased with the revenue growth that we're seeing in ATS right now. It's exceeding our expectations, and we're expecting strong growth going into the second half. Some of that growth is being fueled by new wins that we have in the Industrial business, and we are investing forward before those programs really turn to revenue. So as we continue to ramp new programs in the back half of the year, we do expect some opportunities on the margin side.

話雖如此，這是本季度的拖累之一。但除了主要是增加計劃外，我們對目前在 ATS 中看到的收入增長感到非常滿意。它超出了我們的預期，我們預計下半年將實現強勁增長。我們在工業業務中取得的新勝利推動了其中的一些增長，我們正在這些計劃真正轉向收入之前進行投資。因此，隨著我們在今年下半年繼續推出新項目，我們確實希望在利潤方面有一些機會。

Your next question comes from Ruplu Bhattacharya with Bank of America.

您的下一個問題來自美國銀行的 Ruplu Bhattacharya。

Mandeep, you're raising the guidance for the full year by $200 million on the revenues. It looks like inventory was up about 9% sequentially. Can you comment on working capital requirements? I mean, do you think inventory now is at a level where you can maintain or reduce this level? And how should we think about free cash flow given the higher growth expectations?

Mandeep，您將全年的收入指導提高了 2 億美元。看起來庫存環比增長了約 9%。你能評論營運資金要求嗎？我的意思是，您認為現在的庫存處於可以維持或降低該水平的水平嗎？鑑於更高的增長預期，我們應該如何看待自由現金流？

Yes. So the inventory is elevated relative to last quarter, and to your point, it's being driven by a lot of the growth that we're seeing. As Rob mentioned in the prepared remarks, we are seeing significant growth in the first half of this year, which we are expecting to continue into next year. Inventory that you buy today is not always just for the quarter in front of you or even 2 quarters, sometimes you're looking forward to early parts of 2023. And so I think the inventory, one way to look at it is, it's a good leading indicator for the growth that we're expecting as we finish this year and going into next year.

是的。因此，相對於上一季度，庫存有所增加，就您而言，這是由我們所看到的大量增長推動的。正如 Rob 在準備好的評論中提到的，我們在今年上半年看到了顯著的增長，我們預計這種增長將持續到明年。您今天購買的庫存並不總是只針對您面前的一個季度甚至兩個季度，有時您會期待 2023 年的早期部分。所以我認為庫存，一種看待它的方式是，它是良好的領先指標，我們預計今年結束並進入明年的增長。

Will it stabilize at these levels or will it go dramatically different? I think it's a function of how quickly we're able to get the right parts in, because one of the reasons that we do have elevated inventory as you know is because we continue to work with our suppliers to square off the kits. But as material availability becomes better, we would expect to see some improvement in overall turns.

它會穩定在這些水平還是會發生巨大的變化？我認為這取決於我們能夠以多快的速度獲得正確的零件，因為如您所知，我們確實增加庫存的原因之一是因為我們繼續與供應商合作以整理套件。但隨著材料可用性變得更好，我們預計整體周轉率會有所改善。

From a free cash flow perspective, we're happy with the free cash flow generation that we've had to-date about $43 million, $44 million. As we mentioned last quarter, we are still targeting positive free cash flow in the back end of this year. Although, we would like to do $100 million or more, expectations should be set that we may do less than that, and the numbers that we provided last quarter was $75 million for the full year, and I think that's still the right number to keep in front of you.

從自由現金流的角度來看，我們對迄今為止產生的自由現金流感到滿意，大約 4300 萬美元，4400 萬美元。正如我們上個季度提到的那樣，我們仍然以今年年底的正自由現金流為目標。雖然，我們希望做 1 億美元或更多，但應該設定我們可能做得更少的預期，我們上個季度提供的全年數字是 7500 萬美元，我認為這仍然是正確的數字在你面前。

Going forward though, we think that with the order book that we have as well as with the opportunity for inventory to start unwinding, we're in a very strong position to generate good cash flow in '23 and beyond, above our $100 million target.

不過，展望未來，我們認為，憑藉我們擁有的訂單以及開始清理庫存的機會，我們處於非常有利的位置，可以在 23 年及以後產生良好的現金流，超過我們 1 億美元的目標.

Ruplu, I would also add that on the supply chain environment, just to Mandeep's point, we are starting to see the light at the end of the tunnel, if you will, due to some of the consumer products having some inflationary peregrine and the markets cooling off, we are seeing more availability on some of the components that we use. So things are starting to gradually ease up, so we're cautiously optimistic on that front.

Ruplu，我還要補充一點，在供應鏈環境中，就 Mandeep 而言，我們開始看到隧道盡頭的曙光，如果你願意的話，由於一些消費品有一些通貨膨脹的遊隼和市場冷靜下來，我們看到我們使用的一些組件的可用性更高。所以事情開始逐漸緩和，所以我們在這方面持謹慎樂觀的態度。

Okay. Can I follow-up on enterprise demand, you saw a strong 36% year-on-year growth. Can you help us understand where that demand came from, was it more on servers or storage? And do you see that sustaining over the rest of the year?

好的。能否跟進企業需求，你看到同比強勁增長36%。您能否幫助我們了解這種需求來自哪裡，更多是在服務器還是存儲上？你認為這種情況在今年剩下的時間裡會持續嗎？

Yes. So in Q2, as both storage and service, particularly non-x86 proprietary compute and in terms of the third quarter, again, we see some strong demand, largely in storage due to tough comps, we see compute on a year-over-year basis cooling off.

是的。因此，在第二季度，作為存儲和服務，特別是非 x86 專有計算，就第三季度而言，我們再次看到一些強勁的需求，主要是由於艱難的競爭，我們看到計算同比增長基礎降溫。

Got it. And for my last question can I ask on HPS? You're seeing strong growth and that has good margins. Is there a target percent of revenue that you're targeting for that business? Can it continue to gain share? What are some of the drivers that are driving that growth and what level of investment do you need to make to keep driving growth in HPS business?

知道了。對於我的最後一個問題，我可以問 HPS 嗎？你看到了強勁的增長，而且利潤率很高。您是否有針對該業務的目標收入百分比？能否繼續獲得份額？推動這種增長的驅動因素有哪些？您需要進行多少投資才能繼續推動 HPS 業務的增長？

Yes, Ruplu, so as I think the word for use in the script was remarkable performance in HPS, and that is what we are seeing, very strong growth overall. I would tie your question back to Lifecycle Solutions though in totality, Lifecycle Solutions, which is made up of the HPS business and ATS. We are expecting to grow at a 10% growth rate over the next number of years. ATS is very much tied to the end markets that they're in as well as the increasing level of outsourcing, plus we're having market share gains in a lot of areas which is helping us do very, very well this year and we expect it will help us continue that growth going forward.

是的，Ruplu，所以我認為腳本中使用的詞是 HPS 中的出色表現，這就是我們所看到的，整體增長非常強勁。我會將您的問題與生命週期解決方案聯繫起來，但總的來說，生命週期解決方案由 HPS 業務和 ATS 組成。我們預計未來幾年的增長率將達到 10%。 ATS 與他們所在的終端市場以及不斷提高的外包水平密切相關，此外，我們在很多領域都獲得了市場份額增長，這有助於我們今年做得非常非常好，我們預計它將幫助我們繼續這種增長。

On the HPS side, it's very much tied to data center growth rates and our view right now is that data center build-outs are going to continue at a double-digit rate, at least in the near-term. And as Rob has mentioned, we have a good level of visibility with our specific customers. So far in the first half of the year, Lifecycle Solutions I think is up between 25% and 30% year-over-year revenues. And so clearly, we're operating above the 10% mark. We do anticipate some of that strength is going to continue into the back half of the year, but the way to think about Lifecycle Solutions as we go into '23 and beyond, is that the 10% growth number we're feeling pretty confident on that.

在 HPS 方面，它與數據中心的增長率密切相關，我們目前的觀點是，數據中心的擴建將繼續以兩位數的速度增長，至少在短期內是這樣。正如 Rob 所提到的，我們對特定客戶的知名度很高。今年上半年到目前為止，我認為 Lifecycle Solutions 的收入同比增長了 25% 到 30%。很明顯，我們的運行率高於 10%。我們確實預計這種優勢將持續到今年下半年，但是隨著我們進入 23 年及以後，考慮生命週期解決方案的方式是，我們對 10% 的增長數字感到非常有信心那。

Your next question comes from Thanos Moschopoulos with BMO.

您的下一個問題來自 BMO 的 Thanos Moschopoulos。

Rob, appreciate all your commentary on the macro, so maybe just to summarize, if we think about sort of the customer discussions you're having now versus 3 months ago, does it sound pretty consistent in terms of demand outlook and visibility or any significant changes you would highlight just thinking to your conversations now versus last quarter?

Rob，感謝您對宏觀的所有評論，所以也許只是總結一下，如果我們考慮一下您現在與 3 個月前進行的客戶討論，在需求前景和可見性或任何重要方面聽起來是否相當一致與上個季度相比，您會在對話中強調的變化是什麼？

Yes, good question, Thanos. Thank you. We've just -- with all the noise in the market, we've just completed an exhaustive review of our entire portfolio by end market. We took the time to truly understand the demand drivers for each of our businesses. We understand the buying behaviors of our customers, we engage customers at multiple levels and align with them in our outlook. The cost correlated in our outlook with our views, with our supply chain partners and based on that the message to your point is fairly consistent quarter-over-quarter. We have at least to the end of 2022, confidence in our outlook. And as such, we raised our expectations for the full year.

是的，好問題，滅霸。謝謝你。我們剛剛 - 由於市場上的所有噪音，我們剛剛完成了對終端市場的整個投資組合的詳盡審查。我們花時間真正了解我們每項業務的需求驅動因素。我們了解客戶的購買行為，我們在多個層面吸引客戶，並在我們的前景中與他們保持一致。在我們的展望中，成本與我們的觀點、我們的供應鏈合作夥伴相關，並且基於您所傳達的信息，季度環比相當一致。至少到 2022 年底，我們對我們的前景充滿信心。因此，我們提高了對全年的預期。

And in the mid-term, we think our portfolio is fairly resilient. Remember this is, we're calling it the new Celestica, we're a much more diversified business. Lifecycle Solutions in Q2 was 67% of our business and our strategic goals are to take it north of that. We're not in consumer-oriented markets, we're somewhat more insulated from the downturn and we've been operating very well with our Celestica operating system, which has been approved model to kind of manage supply chain constraints and some of the other macro issues.

從中期來看，我們認為我們的投資組合相當有彈性。請記住，我們將其稱為新的 Celestica，我們是一家更加多元化的企業。第二季度的生命週期解決方案占我們業務的 67%，我們的戰略目標是超越這一點。我們不在以消費者為導向的市場中，我們在一定程度上不受經濟衰退的影響，並且我們的 Celestica 操作系統運行得非常好，該操作系統已被批准用於管理供應鏈約束和其他一些限制宏觀問題。

So again, the resiliency of our portfolio will be really a function of the depth and the duration of any potential recession. But based on the homework that we've done and the conversations we had, you know for 2022 we feel pretty good. And then moving into '23 and '24, we think we have a fairly resilient portfolio.

因此，我們投資組合的彈性實際上將取決於任何潛在衰退的深度和持續時間。但根據我們所做的功課和我們進行的對話，你知道 2022 年我們感覺很好。然後進入'23 和'24，我們認為我們有一個相當有彈性的投資組合。

Yes. And on the Q3 guidance, you're guiding for revenues to be roughly flat sequentially, though I thought that you've been supply constrained, and it sounds like the supply backdrop is getting a little bit better. So why would that not lead to sequential revenue uptick or are there other kind of puts and takes to think about it in that regards?

是的。在第三季度的指導中，你指導收入大致持平，儘管我認為你一直受到供應限制，而且聽起來供應背景正在好轉一些。那麼，為什麼這不會導致收入連續上升，或者在這方面是否有其他類型的看跌期權和考慮因素呢？

Yes. Thanos, I think it's really an end market by end market conversation. We are starting to see some levels of improved material supply, and what that's trading into though is a reduction in lead times, not necessarily that we're able to secure materials immediately. We think the 17.25%, what I would really point you towards less about the sequential revenue growth, but the year-over-year revenue growth. At 18% it is still a tremendous amount of growth on a year-over-year basis. And that growth thankfully is being fueled across our end markets in both HPS as well as ATS.

是的。滅霸，我認為這真的是一個終端市場的終端市場對話。我們開始看到材料供應在一定程度上有所改善，而這帶來的是交貨時間的減少，不一定是我們能夠立即獲得材料。我們認為 17.25%，我真正指出的不是連續收入增長，而是同比收入增長。在 18% 的情況下，它仍然是一個巨大的同比增長。幸運的是，這種增長正在我們的 HPS 和 ATS 終端市場得到推動。

The other thing I'd also mention though is PCI. We did talk about how the impact in the second quarter was negligible, but the revenue impact in the back half of the year is expected to be less than $100 million. So we are seeing that impact in the third quarter, really happy that we're able to continue to maintain very strong profitability despite those inefficiencies.

我還要提到的另一件事是PCI。我們確實談到了第二季度的影響可以忽略不計，但下半年的收入影響預計不到 1 億美元。因此，我們在第三季度看到了這種影響，儘管效率低下，我們仍然能夠繼續保持非常強勁的盈利能力，對此我們感到非常高興。

Your next question comes from Jim Suva with Citigroup.

您的下一個問題來自花旗集團的 Jim Suva。

Congratulations to you and your team. As we look at your strong results and your guidance and outlook, I just want to get a little bit of commentary or color of your discussions you're getting with your customers. Are they all kind of like business is, good supply is short, we just want to get stuff into the fulfillment system? Or is there any kind of overview or a little bit of tempering about macro concerns as we've heard from some other companies about some macro concerns?

祝賀你和你的團隊。當我們看到您的強勁成果以及您的指導和展望時，我只想對您與客戶進行的討論進行一些評論或色彩。他們是不是都像生意一樣，好的供應短缺，我們只是想把東西放進履行系統？或者，正如我們從其他一些公司那裡聽到的關於一些宏觀問題的看法一樣，是否有任何關於宏觀問題的概述或一點緩和？

Jim, yes, the conversations we've had are really the former. We have across Capital Equipment, Industrial, A&D, HealthTech and on our HPS business, our customers are very eager to get their product. We have strong backlogs. We're still material constrained, although slowly easing across all of these product lines and they're fairly bullish in the short-term. We're talking to them about mid-term, and it's a market-by-market dynamic, but in most cases and these markets, HPS specifically, these are not -- they're telling us these are not short-cycle decisions that they are making, and that the investment in the cloud and data center expansion maybe with strategic investments they are underpinned by growth in cloud, by advertising, by augmented reality, all these maybe strategic anchors and that's something that I don't want to fall behind to any environment. They're also pretty flush with cash, this customer base. So we are continuing their investment.

吉姆，是的，我們的對話確實是前者。我們在資本設備、工業、A&D、HealthTech 以及我們的 HPS 業務中都有業務，我們的客戶非常渴望獲得他們的產品。我們有大量的積壓工作。我們仍然受到物質限制，儘管所有這些產品線都在緩慢放鬆，而且它們在短期內相當看漲。我們正在與他們談論中期，這是一個逐個市場的動態，但在大多數情況下，這些市場，特別是 HPS，這些不是——他們告訴我們這些不是短期決策他們正在做，對雲計算和數據中心擴張的投資可能是戰略投資，他們的基礎是雲計算、廣告、增強現實的增長，所有這些可能都是戰略錨點，這是我不想放棄的東西落後於任何環境。他們的客戶群也非常充裕。所以我們正在繼續他們的投資。

Similarly, in Capital Equipment, leading edge equipment is still in short supply, largely driven by some of the data center customers, our leading-edge componentry and industrial. And once again, we're largely -- of course, logic comes from green energy. We're very material constrained right now and very strong backlogs in A&D, the long-cycle business; and HealthTech, as you mentioned, is fairly recession-proof type of segment.

同樣，在資本設備中，領先的設備仍然供不應求，主要是由一些數據中心客戶、我們的領先組件和工業驅動。再一次，我們在很大程度上——當然，邏輯來自綠色能源。我們現在的材料非常有限，而且在 A&D（長周期業務）方面的積壓非常多；正如您所提到的，健康科技是相當抗衰退的細分市場。

So based on our mix of business, the conversations that we're having with them, it's business as normal. They are concerned about the macro environment, but they're asking us to fulfill their demand pretty quickly.

因此，根據我們的業務組合，我們與他們進行的對話，這是正常的業務。他們擔心宏觀環境，但他們要求我們盡快滿足他們的需求。

Jim, one thing I would maybe just add to Rob's comments, the backlog for many of our customers continues to be multiple quarters out, and we have many of our customers who are still asking for more product than we're able to deliver. And of course, the gating item there is material constraints. And an interesting point is that we continue to see some customers want to pay expedite fees in order to get the materials. So although there are slowdowns in parts of the macroeconomic environment, we're not necessarily seeing it at a grand scale within our customer base.

吉姆，我可能會在 Rob 的評論中添加一件事，我們的許多客戶的積壓訂單仍然持續好幾個季度，而且我們的許多客戶仍然要求比我們能夠交付的產品更多的產品。當然，門控項目也有材料限制。有趣的一點是，我們繼續看到一些客戶想要支付加急費用以獲得材料。因此，儘管宏觀經濟環境的某些部分出現放緩，但我們不一定會在我們的客戶群中大規模地看到它。

Okay. And then my quick follow-up, the component constraints are they kind of the similar ones as like last quarter kind of like power management-type items or have some resolved and others popped up about new constraints, just generally speaking, I'm just kind of curious?

好的。然後我的快速跟進，組件約束與上個季度類似，類似於電源管理類型的項目，或者已經解決了一些問題，而其他一些則彈出了新的約束，一般來說，我只是有點好奇？

I think generally are consistent, Jim. We're seeing same areas, passives, some have higher lead times and semiconductor still have higher lead times. We've seen the lead times stabilize. They haven't gotten any worse. And we're seeing a little bit, as Mandeep mentioned, improvement in availability. We're also seeing our supply the same, some slots are opening up at the foundries which has enabled them hopefully to fulfill supply a little quicker than originally anticipated in the future quarters. So again, we're cautiously optimistic, but it's the same type of componentry as previous quarters.

我認為總體上是一致的，吉姆。我們看到相同的領域，無源器件，一些具有更長的交貨時間，而半導體仍然具有更長的交貨時間。我們已經看到交貨時間穩定下來。他們沒有變得更糟。正如 Mandeep 所提到的，我們看到可用性有所提高。我們也看到我們的供應情況相同，代工廠正在開放一些插槽，這使他們有望在未來幾個季度比最初預期的更快地完成供應。因此，我們再次謹慎樂觀，但這與前幾個季度的組件類型相同。

Again, congratulations to you and your team at Celestica.

再次祝賀您和您在 Celestica 的團隊。

(Operator Instructions) Your next question comes from Todd Coupland with CIBC.

（操作員說明）您的下一個問題來自 CIBC 的 Todd Coupland。

I wanted to ask you about 2 things. First on HPS, in your a business review, what kind of recession scenario would cause that business to pull back? It sounds like modest recession not going to have an impact, have you had those kinds of conversations with customers on what would be required to see actual pullback in that business?

我想問你兩件事。首先在 HPS 上，在您的業務審查中，什麼樣的衰退情況會導致該業務回落？聽起來適度的衰退不會產生影響，您是否與客戶進行過此類對話，以了解該業務實際回落所需的條件？

Yes, we've had, Todd. Right now, what we're seeing from them is good order visibility, approximately 6 months, sometimes more. Mandeep mentioned earlier that in many cases they are still paying premiums, they are still authorizing airfreight, which means that they have confidence to requirement. And they have seen no change in the conversation right now is based on a little bit more availability of supply. We have seen some rebalancing of supply, just as the case where they might have too many optics versus the number of switches. Again, the impact on us has been fairly moderate, because we tend to focus more on the higher value areas of the data center. So the rebalancing has been more on the lower value areas of the data center.

是的，我們有過，托德。現在，我們從他們那裡看到的是良好的訂單可見性，大約 6 個月，有時甚至更長。 Mandeep前面提到，在很多情況下，他們仍在支付保費，他們仍在授權空運，這意味著他們對要求有信心。他們沒有看到現在對話的變化是基於更多的供應可用性。我們已經看到了一些供應的重新平衡，就像他們可能有太多的光學器件而不是開關的數量一樣。同樣，對我們的影響相當溫和，因為我們傾向於更多地關注數據中心的高價值領域。因此，再平衡更多地集中在數據中心的低價值領域。

In terms of them pulling back, they haven't mentioned any of that. They all view this as a long-term cycle decisions. They get land, they construct a business, they start building the infrastructure. So based on these lead times to construct and expand data centers, it doesn't feel like it's going to be a falling off the cliff or a sudden or reverse base. If anything, it might be a gradual slowing down over time. So in the mid-term, we certainly haven't seen any signs of that.

至於他們撤退，他們沒有提到任何這些。他們都認為這是一個長期循環的決定。他們獲得土地，建立業務，開始建設基礎設施。因此，基於構建和擴展數據中心的這些前置時間，感覺不會是從懸崖上掉下來或突然或倒退。如果有的話，它可能會隨著時間的推移逐漸放緩。所以在中期，我們當然沒有看到任何跡象。

And when we think about the customers here, the hyper-scalers, but it is for the web services and not the social media platforms. So that's the right customer base to think about?

當我們考慮這裡的客戶時，超大規模的，但它是針對網絡服務而不是社交媒體平台的。那麼這是需要考慮的正確客戶群嗎？

I would think it's all service provider customers, including everyone that you mentioned.

我認為這是所有服務提供商的客戶，包括你提到的每個人。

Okay. As a reminder, Todd, we do business with 8 of the top 10.

好的。提醒一下，托德，我們與前 10 名中的 8 家有業務往來。

Yes. And then my second question was on working capital. It's great to see the free cash flow, but if I did my math right, the inventory investment was more or less offset by stretching accounts payable. So is that how you sort of get there in the second half of the year if you still have to make those investments in inventory? So then really it's the step-up in free cash flow is when that starts to unwind whenever that happens. Just a little color on that.

是的。然後我的第二個問題是關於營運資金。很高興看到自由現金流，但如果我的數學計算正確，庫存投資或多或少會被應付賬款的延伸所抵消。如果你仍然需要在庫存上進行這些投資，那麼這就是你在下半年實現目標的方式嗎？因此，實際上，自由現金流的增加是在發生這種情況時開始放鬆的時候。只是一點點顏色。

Yes, it's a dynamic situation that we're working through quarter-by-quarter. The other 2 items that you did mention there Todd were deposits as well as receivables. On the deposit side, we're very pleased with the performance that we've been seeing. Year-over-year, our deposits were up $325 million and we continue to work with our customers as we make strategic decisions around inventory buying on how much of it can be customer-funded.

是的，這是一個動態的情況，我們每個季度都在努力。你在托德那裡提到的另外兩項是存款和應收賬款。在存款方面，我們對所看到的表現非常滿意。與去年同期相比，我們的存款增加了 3.25 億美元，我們將繼續與客戶合作，圍繞庫存購買做出戰略決策，確定其中有多少可以由客戶資助。

The other point, of course, is receivables and we're pleased with the receivables performance. And if you look at the breakdown on the cash cycle days, we are seeing an improvement on a year-over-year basis. So we need to be very disciplined on managing our working capital in this type of environment. So far, we're pleased with the performance, and we think that that discipline as it continues into the second half should lead towards positive free cash flow.

當然，另一點是應收賬款，我們對應收賬款的表現感到滿意。如果您查看現金周期天數的細分，我們會看到同比有所改善。因此，在這種環境下，我們需要非常自律地管理我們的營運資金。到目前為止，我們對業績感到滿意，我們認為這種紀律持續到下半年應該會帶來正的自由現金流。

Your next question comes from Paul Treiber with RBC.

您的下一個問題來自 RBC 的 Paul Treiber。

Just wanted to follow-up on a couple of comments that you made on the impact of the fire in Indonesia. It looks like guidance for '22 includes the less than $100 million revenue impact, but then you also mentioned that the cost of it, or the impact would be covered by insurance. So how do we think about the impact to EPS this year?

只是想跟進您對印度尼西亞火災影響的一些評論。看起來 '22 的指導包括不到 1 億美元的收入影響，但你還提到它的成本，或者影響將由保險承擔。那麼我們如何看待今年對 EPS 的影響呢？

Yes. Paul, so we're pleased that we have insurance coverage for almost all of the exposure within the Batam facility. One of the things you'll see as you had some time to start going through our financial statements is we had about a $90 million inventory impact, all of which we believe is covered by insurance and so we're actively in the process right now and working with our insurers.

是的。保羅，所以我們很高興我們為巴淡島設施內的幾乎所有風險提供保險。當您有一些時間開始查看我們的財務報表時，您會看到的一件事是我們產生了大約 9,000 萬美元的庫存影響，我們認為所有這些都包含在保險範圍內，因此我們現在正在積極處理並與我們的保險公司合作。

There is some level of business interruption in insurance and what that really means is that we don't expect that the fixed cost structure that we have tied to the Batam facility is going to put a material drag on the earnings. And so right now I think the way to think about it is that the contribution from that $100 million will be typical floater rates that you would normally see. So if 5% to 10% of an impact that goes with the $100 million, but we do believe that the insurance is going to help us not move into a loss position in the site in the back half of the year.

保險業存在一定程度的業務中斷，這真正意味著我們預計與巴淡島設施相關的固定成本結構不會對收益造成重大拖累。所以現在我認為考慮它的方式是，這 1 億美元的貢獻將是你通常會看到的典型浮動利率。因此，如果 5% 到 10% 的影響與 1 億美元有關，但我們確實相信保險將幫助我們在今年下半年避免在網站上陷入虧損狀態。

Okay. That's helpful. And then secondly, when you look at the bigger picture outlook for the second half of the year in terms of revenue versus cost, you raised revenue guidance, but then just tightened EPS guidance. What is that you're seeing on the cost side that doesn't allow the higher revenue that you're guiding to drop to the bottom line and also drive higher EPS versus your previous range?

好的。這很有幫助。其次，當你從收入與成本的角度審視下半年的宏觀前景時，你提高了收入指引，但隨後只是收緊了每股收益指引。您在成本方面看到了什麼，不允許您引導的更高收入下降到底線，並且與之前的範圍相比，也推動了更高的每股收益？

Yes. So when we were doing the $1.55 to $1.75 at the beginning of the year, Paul, it was with a combination of scenarios between margin and revenue. I think more importantly, what I would talk to, is the current performance. So at 4.8% EBIAT in the second quarter, which is also our guide now for the third quarter, that's the second highest EBIAT performance the company has had since its IPO-ed, the highest was in the fourth quarter of last year at 4.9%. So pretty close. And so maintaining that 4.8% in the third quarter, and you can make your assumptions on the fourth quarter, what it implies is that we are operating in the 4.5% to 5% range, which is the highest the company's ever done on a full year level. And so the EPS lends itself towards the higher end of that range.

是的。所以當我們在年初做 1.55 美元到 1.75 美元的時候，保羅，它是在利潤率和收入之間的組合情況下進行的。我認為更重要的是，我要談論的是當前的表現。因此，第二季度的 EBIAT 為 4.8%，這也是我們現在對第三季度的指導，這是該公司自 IPO 以來的第二高 EBIAT 表現，最高的是去年第四季度的 4.9% .如此接近。因此，在第三季度保持 4.8%，您可以在第四季度做出假設，這意味著我們在 4.5% 到 5% 的範圍內運營，這是該公司有史以來的最高水平年水平。因此每股收益適合該範圍的高端。

Do we have the ability to maintain this margin performance in 2023? We're certainly targeting to do so. And then, I'd also point you back to our commentary on how we look at the future, we are continuing to target 10% EPS growth off of that number going into 2023. So steady as it goes, I think, it's how we're looking at it and we're pleased quarter by quarter how the performance is coming in.

我們是否有能力在 2023 年保持這種利潤率表現？我們的目標當然是這樣做。然後，我還要向你指出我們對未來的看法，我們將繼續以 10% 的每股收益增長為目標，直到 2023 年。我認為，這就是我們的方式'正在查看它，我們對每個季度的表現感到高興。

And then just lastly for me, just also on the cost side as well, can you just provide an update on what you're seeing in terms of wage pressures and other costs, excluding supply chain and other costs that may be impacting your fixed cost structure and how you're managing that?

最後對我來說，也是在成本方面，您能否提供有關工資壓力和其他成本方面的最新情況，不包括可能影響您的固定成本的供應鍊和其他成本結構以及您如何管理它？

Yes. We've certainly seen wage inflation across the board. For the most part, we've been trying to recover that and have been recovering that in our forward pricing. Many of our contracts have quarterly repricing points and the ones that don't, we are engaging with our customers in these discussions, to put in premiums or things along those lines to cover the cost of inflation -- labor inflation in our forward pricing.

是的。我們當然已經看到了全面的工資上漲。在大多數情況下，我們一直在努力恢復這一點，並一直在我們的遠期定價中恢復這一點。我們的許多合同都有季度重新定價點，而那些沒有的，我們正在與我們的客戶進行這些討論，以支付保費或類似的東西來支付通貨膨脹成本 - 我們的遠期定價中的勞動力通貨膨脹。

Your next question comes from Daniel Chan with TD Securities.

您的下一個問題來自道明證券的 Daniel Chan。

Mandeep, you guys are talking about improving supply constraints. As we start to see that inventory unwind, and you have more flexibility on your use of capital, should we expect that your share buybacks to accelerate or is there other thoughts for that capital as the overall environment improves?

Mandeep，你們正在談論改善供應限制。隨著我們開始看到庫存減少，並且您在使用資本方面有更大的靈活性，我們是否應該期望您的股票回購加速，或者隨著整體環境的改善，該資本是否還有其他想法？

Yes, Dan, I'd point back to our capital allocation remarks. As you know, we have a very strong track record on share buybacks. We returned more than 50% of our free cash flow over the last 10 years or so back to shareholders. Our approach towards free cash flow generation and capital structuring is relatively consistent with the last few quarters. We want to generate strong positive free cash flow, but our focus in the near-term is really to pay down debt.

是的，丹，我想回到我們的資本配置評論。如您所知，我們在股票回購方面有著非常出色的記錄。在過去 10 年左右的時間裡，我們將超過 50% 的自由現金流返還給了股東。我們對自由現金流產生和資本結構的方法與過去幾個季度相對一致。我們希望產生強勁的正自由現金流，但我們近期的重點是償還債務。

We see multiple benefits of doing that. Of course, a rising environment becomes a bigger drag on your P&L from an interest expense perspective. We'd like to manage that as we focus on growing EPS, but it also allows us to continue to build dry powder.

我們看到了這樣做的多重好處。當然，從利息支出的角度來看，上升的環境對您的損益有更大的拖累。當我們專注於增長 EPS 時，我們希望管理這一點，但它也使我們能夠繼續製造乾粉。

We have both the balance sheet as well as the management capacity to take on more business and for the right target we are willing to act. And so it gives us that optionality. That being said, on the share buyback programs, since we launched the program in the fourth quarter of last year, we bought back 1.7 million shares, and we have done that we think at a very favorable price as the market has had depressed multiples. We will continue to be opportunistic as you look forward. As a reminder, we actually have the ability to buy up to 6 million shares under this program, which doesn't expire until the end of November, and we've bought back again less than 2 million. So we have the ability to act when we need to act. But in the absence of a very volatile stock, our preference is to put that down towards debt repayment.

我們既有資產負債表，也有管理能力來承擔更多業務，並為我們願意採取行動的正確目標。所以它給了我們這種選擇權。話雖如此，在股票回購計劃上，自從我們去年第四季度推出該計劃以來，我們回購了 170 萬股股票，並且我們認為這是一個非常有利的價格，因為市場已經低迷了倍數。在您期待的過程中，我們將繼續投機取巧。提醒一下，根據該計劃，我們實際上有能力購買多達 600 萬股，直到 11 月底才到期，而我們再次回購的股票不到 200 萬股。因此，我們有能力在需要採取行動時採取行動。但在沒有非常波動的股票的情況下，我們傾向於將其用於償還債務。

Mr. Mionis, there are no further questions at this time. Please proceed.

米奧尼斯先生，目前沒有其他問題。請繼續。

Thank you. We continued our strong start to the year by posting another solid quarter of results. We continue to execute well through a difficult supply chain and macro environment. I'm also pleased we are able to raise our financial outlook for the full year and feel confident in our customer's demand profile in order to do so.

謝謝你。通過發布又一個穩健的季度業績，我們延續了今年的強勁開局。我們在艱難的供應鍊和宏觀環境中繼續保持良好的執行力。我也很高興我們能夠提高全年的財務前景，並對我們客戶的需求狀況充滿信心，從而做到這一點。

I'd like to thank our global team for another strong quarter and thank you all for joining today's call. We look forward to updating you as we progress throughout the year.

我要感謝我們的全球團隊又一個強勁的季度，並感謝大家加入今天的電話會議。隨著我們全年的進展，我們期待著更新您。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and ask that you please disconnect your lines.

女士們，先生們，今天的電話會議到此結束。我們感謝您的參與，並要求您斷開線路。