Celestica Inc (CLS) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Celestica Q4 2022 Earnings Conference Call. (Operator Instructions) This call is being recorded on Thursday, January 26, 2023.

早安，女士們、先生們，歡迎參加天弘 2022 年第四季財報電話會議。 （操作員說明）此通話錄音時間為 2023 年 1 月 26 日星期四。

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

我現在想把會議交給克雷格·奧伯格。請繼續。

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

早安，感謝您參加天弘集團 2022 年第四季財報電話會議。今天參加電話會議的有總裁兼執行長 Rob Mionis 和財務長 Mandeep Chawla。謹此提醒，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做出前瞻性陳述。

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.

此類前瞻性陳述是基於管理階層目前的預期、預測和假設，這些預期、預測和假設受到風險、不確定性和其他因素的影響，這些因素可能導致實際結果和結果與此類陳述中表達的結論、預測或預測有重大差異。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更多信息，請參閱昨天的新聞稿，包括其中有關前瞻性陳述的警示性說明、我們最新的 20-F 表格年度報告和其他公開文件，可在sec.gov 和sedar.com 上存取。

We assume no obligation to update any forward-looking statement, except as required by law. 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 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 earnings per share or adjusted EPS, adjusted SG&A expense, life cycle solutions revenue and adjusted effective tax rate. 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 who report under U.S. GAAP and use non-GAAP financial measures to describe similar operating metrics.

除法律要求外，我們不承擔更新任何前瞻性聲明的義務。此外，在本次電話會議中，我們將參考各種非國際財務報告準則財務指標，包括基於非國際財務報告準則財務指標的比率，包括非國際財務報告準則營業利潤率、調整後毛利率、調整後投資資本回報率或調整後投資回報率、調整自由現金流、總債務與非國際財務報告準則的過去12 個月調整後EBITDA 槓桿率、調整後每股收益或調整後每股收益、調整後SG&A 費用、生命週期解決方案收入和調整後有效稅率。應提醒聽眾，本次電話會議中提及的任何上述措施均表示非 IFRS 財務措施，無論是否明確指定為此類措施。這些非 IFRS 財務指標沒有 IFRS 規定的任何標準化意義，並且可能無法與根據 IFRS 報告或根據美國 GAAP 報告並使用非 GAAP 財務指標描述類似營運指標的其他上市公司提出的類似指標進行比較。

We refer you to yesterday's press release and our Q4 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.

我們建議您參閱昨天的新聞稿和我們的2022 年第四季度收益演示文稿，您可以在celestica.com 的“投資者關係”選項卡下查看這些演示文稿，以了解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 財務指標的調節表與我們的財務報表中最直接可比較的國際財務報告準則財務指標。除非另有說明，本次電話會議中所有提及的美元均指美元，每股資訊基於稀釋後的已發行股票。

Let me now turn the call over to Rob.

現在讓我把電話轉給羅布。

Thank you, Craig, and good morning, everyone, and thank you for joining us on today's call. Celestica had a strong fourth quarter as we continue to drive solid performance despite continuing challenges presented by the macro environment. Our fourth quarter revenue of $2.04 billion and non-IFRS adjusted EPS of $0.56 were both above the high end of our guidance ranges. In addition, our fourth quarter non-IFRS operating margin and non-IFRS adjusted EPS were the highest in the company's history. 2022 was an extraordinary year for Celestica, where we achieved a number of important milestones.

謝謝克雷格，大家早安，謝謝您參加今天的電話會議。儘管宏觀環境持續帶來挑戰，天弘第四季表現強勁，我們繼續推動穩健的業績。我們第四季的營收為 20.4 億美元，非 IFRS 調整後每股收益為 0.56 美元，均高於我們指引範圍的上限。此外，我們第四季的非國際財務報告準則營業利潤率和非國際財務報告準則調整後每股盈餘均為公司歷史最高水準。 2022 年對天弘來說是不平凡的一年，我們實現了許多重要的里程碑。

First, we returned to top line revenue growth on an annual basis for the first time since 2018, following the completion of our multiyear portfolio transformation initiative. Revenue grew 29% overall and 24% organically compared to 2021 as we surpassed $7 billion in annual revenue for the first time since 2011. Second, we recorded our highest ever annual non-IFRS operating margin of 4.9%, reflecting our ability to win and deliver on higher value-added programs in alignment with our strategy. And finally, we achieved our highest ever annual non-IFRS adjusted EPS of $1.90, a 46% improvement compared to 2021.

首先，在完成多年的投資組合轉型計畫後，我們自 2018 年以來首次恢復了年度營收成長。與2021 年相比，我們的年收入首次超過70 億美元，整體營收成長了29%，有機成長了24%。反映出我們有能力贏得和提供符合我們策略的更高附加價值計劃。最後，我們實現了有史以來最高的年度非 IFRS 調整後每股收益 1.90 美元，與 2021 年相比提高了 46%。

Our Lifecycle Solutions portfolio continues to be the primary driver of our growth in revenue and profitability, reflecting our strategic focus on high-value markets where we see the long-term tailwinds supporting sustainable growth. Our life cycle solutions portfolio now represents roughly 2/3 of our business, achieving 39% year-over-year revenue growth as both our HPS business and our ATS segment recorded their highest revenues ever in 2022. Our ATS segment recorded 29% annual revenue growth coming in at approximately $3 billion in revenue in 2022. With our strategic diversification and exposure to markets with strong secular tailwinds, we expect strong growth fundamentals at ATS to continue in 2023.

我們的生命週期解決方案組合仍然是我們收入和獲利能力成長的主要驅動力，反映出我們對高價值市場的策略重點，我們認為這些市場具有支持永續成長的長期優勢。我們的生命週期解決方案組合目前約占我們業務的2/3，實現了39% 的同比收入成長，因為我們的HPS 業務和ATS 部門均在2022 年創下了有史以來的最高收入。的年收入為29%到2022 年，營收成長將達到約30 億美元。 。

Our CCS segment also demonstrated substantial growth in 2022, recording 29% year-over-year revenue growth and segment margin of 5.1%, the highest ever. Our strong CCS performance continues to be driven in large part by our HPS business, which achieved revenues of $1.83 billion in 2022, representing 59% year-over-year revenue growth. This growth has been supported by strong demand from our service provider customers for our differentiated offerings. We are confident that our strategic initiatives over the past several years focused on diversifying our business and growing our exposure to high-value markets will help us sustain our trajectory of strong financial performance into 2023 and over the long term.

我們的 CCS 業務在 2022 年也實現了大幅成長，營收年增 29%，業務利潤率達到 5.1%，創歷史新高。我們強勁的 CCS 業績在很大程度上繼續由我們的 HPS 業務推動，該業務在 2022 年實現收入 18.3 億美元，同比收入增長 59%。這種成長得益於我們的服務提供者客戶對我們差異化產品的強烈需求。我們相信，過去幾年專注於業務多元化和增加高價值市場敞口的策略舉措將有助於我們在 2023 年和長期保持強勁的財務業績軌跡。

Before I offer some additional color on the outlook for each of our markets, I would like to turn the call over to Mandeep, who will provide details on our financial performance in the fourth quarter as well as our guidance for the first quarter of 2023. Over to you, Mandeep.

在我對每個市場的前景提供更多資訊之前，我想將電話轉給 Mandeep，他將提供有關我們第四季度財務業績的詳細資訊以及我們對 2023 年第一季度的指導。 ，曼迪普。

Thank you, Rob, and good morning, everyone. Fourth quarter revenue came in at $2.04 billion. This exceeded the high end of our guidance range and was 35% higher year-over-year, supported by revenue growth across each of our businesses. We achieved fourth quarter non-IFRS operating margin of 5.3%, 40 basis points higher year-over-year. The strong performance was driven in large part by record profitability in our CCS segment and represented the highest quarterly non-IFRS operating margin in the company's history. Non-IFRS adjusted earnings per share were $0.56 for the fourth quarter, above the high end of our guidance range and up $0.12 year-over-year driven by higher volumes and improved mix.

謝謝你，羅布，大家早安。第四季營收為 20.4 億美元。這超出了我們指導範圍的上限，並且在我們各項業務收入成長的支持下同比增長了 35%。我們第四季的非 IFRS 營業利潤率為 5.3%，較去年同期高出 40 個基點。強勁的業績在很大程度上得益於 CCS 部門創紀錄的獲利能力，並且代表了公司歷史上最高的季度非國際財務報告準則營業利潤率。第四季非 IFRS 調整後每股收益為 0.56 美元，高於我們指導範圍的上限，並且由於產量增加和組合改善，同比增長 0.12 美元。

ATS segment revenue was up 30% year-over-year in the fourth quarter, higher than our expectations of a mid-20s percentage year-over-year increase. Year-over-year growth in ATS segment revenue was driven by the strong performance of our Industrial and A&D businesses, supported by solid demand, new program ramps and improved materials availability. ATS segment revenue accounted for 40% of total revenues in the fourth quarter.

第四季 ATS 部門營收年增 30%，高於我們預期的 20% 左右的年增幅。 ATS 部門收入的同比增長是由我們的工業和 A&D 業務的強勁表現推動的，並受到穩定的需求、新項目的增加和材料可用性改善的支持。 ATS部門收入佔第四季總收入的40%。

Our CCS segment delivered another quarter of robust growth with revenue up 39% year-over-year, driven by outperformance in both our communications and enterprise end markets. Our HPS business continues to deliver strong results, recording revenues of $491 million in the fourth quarter, up 40% year-over-year. The growth in HPS revenue was driven by market share gains and strong demand from our service provider customers as they have continued to make significant investments in expanding data center capacity. HPS revenues were 24% of total company revenues in the fourth quarter, up from 20% in 2021.

在我們的通訊和企業終端市場表現出色的推動下，我們的 CCS 部門又實現了一個季度的強勁成長，營收年增 39%。我們的 HPS 業務持續取得強勁業績，第四季營收達 4.91 億美元，年增 40%。 HPS 收入的成長是由市場佔有率的成長和我們的服務供應商客戶的強勁需求所推動的，因為他們繼續在擴大資料中心容量方面進行大量投資。第四季 HPS 營收占公司總營收的 24%，高於 2021 年的 20%。

Communications end market revenue was up 34% year-over-year, just ahead of our expectations of a low 30s percentage increase, driven by program ramps in our HPS business and improved materials availability. Enterprise end market revenue in the quarter was up 49% year-over-year, well above our expectations of a mid-20s percentage increase, driven primarily by new RAC programs, increased demand in compute and improved materials availability.

通訊終端市場營收年增 34%，略高於我們預期的 30% 的成長百分比，這主要得益於 HPS 業務計劃的增加和材料可用性的提高。本季企業終端市場營收年增 49%，遠高於我們對 20 多歲百分比成長的預期，這主要是由新的 RAC 計劃、計算需求增加和材料可用性提高所推動的。

Turning to segment margins. ATS segment margin was 4.4% in the fourth quarter, 120 basis points lower year-over-year. The decline in segment margin was driven by late quarter demand shifts in capital equipment, compounded by a large number of ramping programs in Industrial, partially offset by a sequential improvement in PCI. Our expectation is for ATS segment margins to expand in the coming quarters. CCS segment margin of 5.9% was up 150 basis points year-over-year. The increase was driven by strong HPS mix and operational productivity, driven by improved material flow, strong service billings and volume leverage.

轉向細分市場利潤。第四季 ATS 部門利潤率為 4.4%，年減 120 個基點。部門利潤率下降的原因是季度末資本設備需求變化，再加上工業領域的大量產能提升計劃，部分被 PCI 的連續改善所抵消。我們預計 ATS 部門的利潤率將在未來幾季擴大。 CCS 業務利潤率為 5.9%，年成長 150 個基點。這一成長是由強大的 HPS 組合和營運生產力所推動的，而這又是由改善的物料流、強勁的服務帳單和銷售槓桿所推動的。

Moving on to some additional financial metrics. IFRS net earnings for the quarter were $42 million or $0.35 per share compared to net earnings of $32 million or $0.26 per share in the same quarter last year. Adjusted gross margin for the fourth quarter was 9.4%, down 20 basis points year-over-year, primarily due to higher variable compensation. Our non-IFRS adjusted effective tax rate for the fourth quarter was 22.7%. Non-IFRS adjusted ROIC was 20.7% for the fourth quarter, up 4.1% year-over-year and our highest results since 2017.

接下來討論一些額外的財務指標。根據國際財務報告準則，本季淨利為 4,200 萬美元，即每股 0.35 美元，而去年同期淨利為 3,200 萬美元，即每股 0.26 美元。第四季調整後毛利率為 9.4%，年減 20 個基點，主要是因為可變薪酬較高。我們第四季的非 IFRS 調整後有效稅率為 22.7%。第四季非 IFRS 調整後的 ROIC 為 20.7%，年成長 4.1%，是自 2017 年以來的最高表現。

Moving on to working capital. Our inventory at the end of the fourth quarter was $2.35 billion, up $24 million sequentially and up $653 million year-over-year. While the challenging supply chain environment has contributed and continue to contribute in driving up our inventory levels, a substantial portion of the increase is also attributable to our strong sales growth over the past 2 years. We continue to work collaboratively with our customers to help fund the growth in inventory as evidenced by over $800 million in customer cash deposits at the end of the fourth quarter, an increase of approximately $200 million sequentially and nearly $400 million year-over-year. When offsetting inventory by cash deposits, our inventory balance actually decreased by approximately $150 million compared to the previous quarter.

轉向營運資金。截至第四季末，我們的庫存為 23.5 億美元，季增 2,400 萬美元，年增 6.53 億美元。雖然充滿挑戰的供應鏈環境已經並將繼續推高我們的庫存水平，但增加的很大一部分也歸因於我們過去兩年的強勁銷售成長。我們繼續與客戶合作，為庫存成長提供資金，第四季末客戶現金存款超過 8 億美元，較上季增加約 2 億美元，較去年同期增加近 4 億美元。當用現金存款抵消庫存時，我們的庫存餘額實際上比上一季減少了約 1.5 億美元。

Cash cycle days were 64% during the fourth quarter, 1 day higher than the third quarter and 11 days lower than the prior year period. We are also seeing continuing signs of supply chain constraints improving with fewer material constraints compared to previous quarters and early signs of material lead times being reduced from record levels. While we remain diligent and proactive, we do expect to see improvements in working capital in 2023.

第四季現金週期天數為 64%，比第三季增加 1 天，比去年同期減少 11 天。我們還看到供應鏈限制持續改善的跡象，與前幾季相比，材料限制減少，材料交貨時間從創紀錄水平縮短的早期跡象。儘管我們仍然勤奮和積極主動，但我們確實預計 2023 年營運資金將會有所改善。

Capital expenditures for the fourth quarter were $32 million or approximately 1.6% of revenue compared with 1.1% in the fourth quarter of 2021. This increase was in line with our previously communicated expectations for slightly elevated investment in the back half of the year. The increased expenditures were primarily to fund investments in our Southeast Asia and Mexico facilities in support of new program wins.

第四季的資本支出為 3,200 萬美元，約佔收入的 1.6%，而 2021 年第四季的資本支出為 1.1%。增加的支出主要用於資助我們在東南亞和墨西哥設施的投資，以支持新項目的勝利。

Non-IFRS adjusted free cash flow was $43 million in the fourth quarter compared to $36 million in the prior year period. Fiscal 2022 non-IFRS adjusted free cash flow totaled $94 million, ahead of our expectations due to strong working capital management. Our expectations are to achieve at least $100 million in non-IFRS adjusted free cash flow in 2023, consistent with our long-term goal.

第四季非 IFRS 調整後自由現金流為 4,300 萬美元，去年同期為 3,600 萬美元。 2022 財年，非國際財務報告準則調整後的自由現金流總計 9,400 萬美元，由於強大的營運資本管理，超出了我們的預期。我們的預期是到 2023 年實現至少 1 億美元的非 IFRS 調整後自由現金流，這與我們的長期目標一致。

Moving on to some additional key metrics. Our cash balance at the end of the year was $375 million, down $19 million year-over-year and up $12 million sequentially. Our cash balance, in addition to our approximately $600 million of borrowing capacity under our revolver provide us with liquidity of approximately $1 billion, which we believe is sufficient to meet our anticipated business needs.

繼續討論一些其他關鍵指標。年末我們的現金餘額為 3.75 億美元，年減 1,900 萬美元，較上季增加 1,200 萬美元。我們的現金餘額，加上我們的循環貸款下約 6 億美元的借款能力，為我們提供了約 10 億美元的流動性，我們相信這足以滿足我們預期的業務需求。

We ended the year with gross debt of $627 million, down $20 million from the previous quarter, leaving us with a net debt position of $252 million. Our fourth quarter gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio was 1.3 turns, down 0.2 turns sequentially and down 0.7 turns compared to the same quarter of last year. At December 31, 2022, we were compliant with all financial covenants under our credit agreement.

年底，我們的總負債為 6.27 億美元，比上一季減少 2,000 萬美元，淨負債部位為 2.52 億美元。我們第四季的總債務與非國際財務報告準則的過去 12 個月調整後 EBITDA 槓桿率為 1.3 倍，比上一季下降 0.2 倍，與去年同期相比下降 0.7 倍。截至 2022 年 12 月 31 日，我們遵守了信用協議下的所有財務契約。

During the fourth quarter, we purchased approximately 1.2 million shares for cancellation at a cost of approximately $12 million. We repurchased a total of 3.4 million shares for $35 million for cancellation during 2022. In December of 2022, the TSX accepted our new NCIB program, which permits us to purchase up to 8.8 million shares over the next 12 months. Our return of capital strategy remains consistent as we aim to return 50% of our non-IFRS adjusted free cash flow to shareholders and reinvest 50% into the business over the long term.

第四季度，我們購買了約 120 萬股股票並註銷，成本約為 1200 萬美元。我們以3500 萬美元的價格回購了總計340 萬股股票，並於2022 年取消。最多880 萬股股票。我們的資本回報策略保持一致，因為我們的目標是將 50% 的非 IFRS 調整後自由現金流返還給股東，並將 50% 長期再投資於業務。

Now turning to our guidance for the first quarter of 2023. Our first quarter revenues are expected to be in the range of $1.725 billion to $1.875 billion. If the midpoint of this range is achieved, revenue will be up 15% year-over-year. First quarter non-IFRS adjusted earnings per share are expected to be in the range of $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 will be approximately 5.0%, which will represent an increase of 60 basis points over the prior year period. Non-IFRS adjusted SG&A expense for the first quarter is expected to be in the range of $56 million to $58 million. We anticipate our non-IFRS adjusted effective tax rate to be approximately 21% for the first quarter, excluding any impact from taxable foreign exchange.

現在轉向我們對 2023 年第一季的指導。如果達到該範圍的中點，營收將年增 15%。第一季非 IFRS 調整後每股收益預計為每股 0.41 美元至 0.47 美元。如果我們的收入和非國際財務報告準則調整後每股收益指引範圍的中點達到，非國際財務報告準則營業利潤率將約為 5.0%，這將比去年​​同期增加 60 個基點。預計第一季非 IFRS 調整後的 SG&A 費用將在 5,600 萬美元至 5,800 萬美元之間。我們預計第一季的非 IFRS 調整後有效稅率約為 21%，不包括應稅外匯的影響。

Now turning to our end market outlook for the first quarter of 2023. In our ATS end market, we anticipate revenue to be up in the low single-digit percentage range year-over-year, driven by double-digit growth in Industrial and A&D partially offset by softer demand in capital equipment. In our CCS segment, we anticipate revenues in our communication end market to be up in the high-teens percentage range year-over-year, driven by continued strong demand from service provider customers, supported by our HPS offering. Finally, in our enterprise end market, we anticipate revenue growth in the mid-30 percentage range year-over-year, supported by strong demand in compute.

現在轉向我們對2023 年第一季的終端市場展望。內成長部分被資本設備需求疲軟所抵銷。在我們的 CCS 領域，我們預期通訊終端市場的營收將年增十幾個百分點，這得益於服務供應商客戶持續強勁的需求，以及我們的 HPS 產品的支援。最後，在我們的企業終端市場，在強勁的運算需求的支持下，我們預計營收年增將在 30% 左右。

I'll now turn the call back over to Rob to provide additional color on our markets and our overall outlook.

現在我將把電話轉回給 Rob，以提供有關我們的市場和整體前景的更多資訊。

Thank you, Mandeep. After a banner year for Celestica in 2022, I'd like to start off by reaffirming our outlook for 2023, which we shared during our October conference call. To reiterate, our 2023 outlook is for revenue of at least $7.5 billion, while we are targeting non-IFRS adjusted EPS in the range of $1.95 to $2.05. These results, if achieved, would represent improvements on a year in which the company achieved record financial results in the areas of revenue, non-IFRS operating margin and non-IFRS adjusted EPS. Our anticipated 2023 non-IFRS operating margin range is between 4.5% and 5.5%, up 50 basis points from 2022.

謝謝你，曼迪普。在 2022 年對天弘來說是輝煌的一年之後，我想先重申我們在 10 月的電話會議上分享的 2023 年展望。重申一下，我們對 2023 年收入的展望是至少 75 億美元，而我們的目標是非 IFRS 調整後每股收益在 1.95 美元至 2.05 美元之間。這些成果如果實現，將意味著該公司在收入、非國際財務報告準則營業利益率和非國際財務報告準則調整後每股收益方面取得創紀錄財務業績的一年有所改善。我們預期 2023 年非國際財務報告準則營業利益率範圍在 4.5% 至 5.5% 之間，較 2022 年上升 50 個基點。

While the broad market continues to be dynamic, we are confident in our planning and execution as well as the resiliency of our diversified portfolio. We feel that our business is positioned to continue to outperform our broader markets and achieve strong financial results going forward. We are pleased that we are ahead of the non-IFRS adjusted EPS objective we set in our March 2022 investor call, which was to grow non-IFRS adjusted EPS at 10% or more per year for 2022 through 2025. In 2022, we grew non-IFRS adjusted EPS substantially and at the midpoint of the targeted range for 2023, our 2-year average annual growth rate would be 24% for 2022 and 2023.

儘管廣闊的市場繼續充滿活力，但我們對我們的規劃和執行以及多元化投資組合的彈性充滿信心。我們認為，我們的業務將繼續跑贏更廣闊的市場，並在未來取得強勁的財務表現。我們很高興我們領先於我們在2022 年3 月投資者電話會議中設定的非IFRS 調整後每股收益目標，該目標是在2022 年至2025 年期間將非IFRS 調整後每股收益每年增長10 % 或以上。 %。

For 2024 through 2025, our average annual non-IFRS adjusted EPS growth rate objective continues to be 10% or more. To incentivize our continuing focus on driving profitable growth, we have restructured our long-term incentive plan for senior executives by adding a non-IFRS adjusted EPS as a key performance measure.

2024年至2025年，我們的年均非國際財務報告準則調整後每股盈餘成長率目標仍為10%或以上。為了激勵我們繼續專注於推動獲利成長，我們重組了高階主管的長期激勵計劃，增加了非國際財務報告準則調整後的每股盈餘作為關鍵績效指標。

Now I would like to turn to our outlook for each of our businesses. 2022 was a great year for both ATS and CCS and we expect to build on that momentum in 2023, with ATS segment revenue growing in the high single digits and CCS segment revenue growing in the low single digits. In our ATS segment, our industrial business continues to post strong results, with 24% organic growth in 2022 compared to 2021 with sequential improvement in each quarter throughout the year. Also, PCI continued to impress in 2022 as it posted strong operating results and exceeded our year 1 synergy targets.

現在我想談談我們對每項業務的展望。 2022 年對於 ATS 和 CCS 來說都是偉大的一年，我們預計在 2023 年將繼續保持這一勢頭，ATS 部門收入將實現高個位數增長，CCS 部門收入將實現低個位數增長。在我們的 ATS 領域，我們的工業業務持續取得強勁業績，與 2021 年相比，2022 年有機成長 24%，全年每季均取得季比改善。此外，PCI 在 2022 年繼續給人留下深刻印象，因為它公佈了強勁的營運業績並超越了我們第一年的協同目標。

The outlook for our industrial business remains robust as demand is expected to continue to benefit from secular tailwinds in the green energy market, including electrical vehicles, where we are ramping a number of new programs. We expect our industrial business to have strong growth in 2023, with approximately 75% of that anticipated growth coming from green energy programs.

我們的工業業務前景仍然強勁，因為需求預計將繼續受益於綠色能源市場的長期順風，包括電動車，我們正在該領域推出一些新項目。我們預計我們的工業業務將在 2023 年實現強勁成長，其中約 75% 的預期成長來自綠色能源計畫。

Turning to capital equipment. Our capital equipment business had solid performance in 2022, driven by secular demand, market share gains and strong operational execution. On our previous call, we highlighted the expectation for wafer fab equipment spending to reduce in 2023 after several years of rapid growth, with the majority of the decline coming from the memory market. We are now seeing estimates for the overall wafer fab equipment market to decline by approximately 20% in 2023, with the majority of the decline still in memory. While the overall market is expected to be down materially, we anticipate our capital equipment revenues to be down slightly in 2023 compared to 2022. The benefits of our business mix, market share gains and new program wins are expected to enable us to outperform the broader market. Looking beyond 2023, we are encouraged that the current market outlook anticipates the wafer fab equipment market to return to growth in 2024.

轉向資本設備。在長期需求、市場佔有率成長和強勁營運執行力的推動下，我們的資本設備業務在 2022 年表現穩健。在我們先前的電話會議中，我們強調了晶圓廠設備支出在經歷了幾年的快速成長後，到 2023 年將減少的預期，其中大部分下降來自記憶體市場。我們現在預計整個晶圓廠設備市場到 2023 年將下降約 20%，其中大部分下降仍來自記憶體。雖然整體市場預計將大幅下滑，但我們預計2023 年我們的固定設備收入將比2022 年略有下降。市場市場。展望 2023 年以後，我們感到鼓舞的是，目前的市場前景預計晶圓廠設備市場將在 2024 年恢復成長。

Turning to A&D. Our A&D business saw a strong recovery in 2022, showing sequential improvement in each quarter and double-digit annual revenue growth. In our commercial aerospace business, we continue to see a normalization of commercial air traffic towards pre-covid levels, a trend which is anticipated to continue through 2023. Revenue in our defense business saw a double-digit growth in 2022 and is expected to maintain a solid trajectory in 2023, supported by increased military spending and investments in equipment upgrades from European and North American governments amid rising geopolitical tensions. Our Health Tech business is experiencing strong growth. Due to the nature of demand for health care goods and services, we believe the outlook for our Health Tech business is less sensitive to recessionary pressures. We anticipate year-over-year revenue growth in 2023, supported by new project ramps in surgical, imaging and patient monitoring devices.

轉向 A&D。我們的 A&D 業務在 2022 年強勁復甦，每季都呈現季比改善，年營收成長達到兩位數。在我們的商業航空航太業務中，我們繼續看到商業空中交通向新冠疫情前的水平正常化，預計這一趨勢將持續到2023 年。將維持在地緣政治緊張局勢加劇的情況下，歐洲和北美政府增加了軍事開支和設備升級投資，為 2023 年的發展奠定了堅實的基礎。我們的健康科技業務正在強勁成長。由於醫療保健產品和服務需求的性質，我們認為我們的健康科技業務的前景對經濟衰退壓力較不敏感。我們預計，在手術、影像和患者監護設備新項目的支持下，2023 年收入將實現同比增長。

Now turning to our CCS segment. Our HPS business has exhibited remarkable growth over the past 3 years, posting an annualized growth rate of 56%, more than tripling in size. The substantial capital investments in data center expansion made by our service provider customers and our ability to gain market share from ODMs with our differentiated offerings has supported this exceptional period of performance. Based on our current market outlook, we expect to see a moderation of growth in service provider customer programs in 2023. This is primarily the result of more difficult comps after a record 2022 as well as a potential softening of demand in light of the current economic environment. Our expectation is for our HPS business to continue to see growth in 2023, however, at more moderate levels. Our outlook for our communications end market is aligned with that of our HPS business, given that it has been the primary driver of growth in recent quarters. We expect communications business to grow in 2023, but at more moderate levels due to tougher comps.

現在轉向我們的 CCS 部分。我們的HPS業務在過去3年中表現出顯著的成長，年化成長率達到56%，規模增加了兩倍多。我們的服務供應商客戶對資料中心擴展進行了大量資本投資，以及我們透過差異化產品從 ODM 獲得市場份額的能力，支持了這段特殊時期的表現。根據我們目前的市場前景，我們預計 2023 年服務提供者客戶計畫的成長將放緩。我們預計 HPS 業務將在 2023 年持續成長，但成長水準較為溫和。鑑於通訊終端市場一直是最近幾季成長的主要推動力，我們對通訊終端市場的前景與 HPS 業務的前景一致。我們預期通訊業務將在 2023 年成長，但由於競爭更加激烈，成長水準將較為溫和。

Finally, in our enterprise end market, we expect the business to grow in 2023 as a result of new program ramps, but again at more moderate levels due to tougher comps. I am very pleased with what we have accomplished in 2022 and have confidence in our ability to achieve our 2023 objectives. That confidence is underpinned by our portfolio diversification, investments we have made to support meaningful growth opportunities and our proven ability to consistently execute across our global network.

最後，在我們的企業終端市場，我們預計由於新計劃的推出，業務將在 2023 年實現增長，但由於競爭更加嚴格，業務將再次保持在較為溫和的水平。我對我們 2022 年的成就感到非常滿意，並對我們實現 2023 年目標的能力充滿信心。這種信心的基礎是我們的投資組合多元化、為支持有意義的成長機會而進行的投資以及我們在全球網路中持續執行的經過驗證的能力。

I would like to close out the call by acknowledging the efforts and accomplishments of our global team who have tirelessly worked towards the implementation and execution of our vision. The successes over the past year would not be possible without their dedication.

在結束這次電話會議時，我想對我們的全球團隊所做的努力和所取得的成就表示認可，他們為實現和執行我們的願景而努力​​不懈。過去一年的成功離不開他們的奉獻。

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

現在，我想將電話轉給接線員詢問問題。謝謝。

Thank you. Ladies and gentlemen, we'll now begin the question-and-answer session. (Operator Instructions) Your first question comes from James Suva from Citigroup.

謝謝。女士們、先生們，我們現在開始問答環節。 （操作員說明）您的第一個問題來自花旗集團的 James Suva。

(inaudible) so much for the details. My question is, you have had tremendous success with sales to the cloud and hyperscalers over the past several years. Just wondering what type of demand indicators are you getting from that type of demand product. You mentioned that you expect enterprise, I believe you said to grow towards the end of your prepared comments. But I'm just curious about kind of hyperscalers and cloud And are you seeing any competitive changes in that area? Thank you.

（聽不清楚）細節就這麼多。我的問題是，過去幾年，你們在雲端和超大規模企業的銷售方面取得了巨大的成功。只是想知道您從該類型的需求產品中獲得什麼類型的需求指標。您提到您期望企業，我相信您在準備好的評論的末尾說過要成長。但我只是對超大規模和雲端感到好奇，您是否看到該領域有任何競爭變化？謝謝。

Hi, Jim, thanks for the question. Yes, broadly speaking, with the hyperscalers and the cloud, what we're seeing in the current environment is order visibility is back to kind of normal levels. We're seeing growth tempering for most products. Some increasing due to expanded use cases, i.e., it could have been part of the back pain and now it's part of the fabric. We're seeing China hyperscalers doing a little bit of a reset and creating some demand softness. But on the flip side, we're still seeing growth, more moderate growth, though coming from just about all of the hyperscalers, China side. And we're still seeing customers paying premiums for air freight at lower levels than previous quarters, but still relatively strong given the current environment.

嗨，吉姆，謝謝你的提問。是的，從廣義上講，透過超大規模和雲端運算，我們在當前環境中看到的是訂單可見性回到了正常水平。我們看到大多數產品的成長放緩。一些增加是由於用例的擴大，即它可能是背痛的一部分，現在它是織物的一部分。我們看到中國的超大規模企業進行了一些調整，並造成了一些需求疲軟。但另一方面，我們仍然看到成長，而且成長更為溫和，儘管成長來自幾乎所有的超大規模企業，即中國方面。我們仍然看到客戶支付的空運保費水準低於前幾季度，但考慮到當前環境，仍然相對強勁。

Great. Thank you. And as a follow-up, are you seeing any competitive changes, not just on the cloud hyperscalers, but like overall business because it seems like during covid, when nobody could get the golden screw or the missing key parts, pricing was less competitive. I'm just wondering now that availability is becoming of supply more available is pricing changing at all in the industry? I know it's always a competitive industry, but I'm wondering or is the industry kind of turn the page to be a lot more disciplined compared to some past cycles?

偉大的。謝謝。 作為後續行動，您是否看到任何競爭變化，不僅是在雲端超大規模方面，而且就像整個業務一樣，因為似乎在新冠疫情期間，當沒有人能夠獲得金螺絲或丟失的關鍵部件時，定價競爭力就會降低。我現在只是想知道，供應量變得越來越多，產業內的定價是否改變了？我知道這始終是一個競爭激烈的行業，但我想知道，或者與過去的一些週期相比，該行業是否會翻過新的一頁，變得更加自律？

It's a good question. Given the fact that a large majority of our CCS business is now HPS, and we've established ourselves as innovative with exceptional execution. We're not seeing -- I'll call it, extreme pricing pressure just because of the stickiness and the design nature of the products and services that we provide to our customers.

這是一個好問題。鑑於我們 CCS 業務的大部分現在都是 HPS，而且我們已經確立了自己的創新能力和卓越的執行力。我們沒有看到——我稱之為極端的定價壓力，只是因為我們向客戶提供的產品和服務的黏性和設計性質。

Thank you so much for the details and clarifications. And congratulations to you and all your teams.

非常感謝您提供的詳細資訊和澄清。恭喜您和您的所有團隊。

Thanks, Jim.

謝謝，吉姆。

Your next question comes from Thanos Moschopoulos.

你的下一個問題來自薩諾斯·莫斯霍普洛斯。

Rob, maybe just stepping back on the macro, obviously, a dynamic environment. So if we think about just the change in what you're seeing over the last 3 months, it sounds like -- I mean, my take away from your commentary is that demand is kind of pretty consistent maybe with the exception of some softening incrementally in capital equipment and then supply chain showing some improvement versus last quarter. Would that be fair? I mean, just again, thinking about the changes versus last quarter, anything else you'd call out or are those were key takeaways?

羅布，也許只是回到宏觀上，顯然是一個動態的環境。因此，如果我們考慮一下您在過去3 個月中所看到的變化，聽起來就像——我的意思是，我從您的評論中得出的結論是，除了逐漸軟化之外，需求相當一致資本設備和供應鏈方面與上季相比有所改善。這樣公平嗎？我的意思是，再一次考慮一下與上個季度相比的變化，您還有什麼要說的嗎？

Yes, that's right. So within ATS, we're seeing growth across all the verticals with the exception of being capital equipment. And we expect that to be mildly down in 2023, largely driven by the fact that we have new program ramps. And some of them are even with new lithography customers, which shows that we're actually diversifying our capital equipment customer base, which is a huge positive. And within CCS, frankly, the comps are just really tough from '22, going to '23, but we are seeing growth across comps and enterprise and HPS certainly into Q1 and for the full year.

是的，沒錯。因此，在 ATS 內部，我們看到除資本設備之外的所有垂直領域都在成長。我們預計這一數字將在 2023 年略有下降，這主要是由於我們有了新的計劃。其中一些甚至擁有新的光刻客戶，這表明我們實際上正在使我們的資本設備客戶群多樣化，這是一個巨大的積極因素。坦白說，在 CCS 內部，從 22 年到 23 年，競爭非常艱難，但我們看到競爭和企業以及 HPS 的成長肯定會進入第一季和全年。

And then on the CCS margins, which were obviously exceptionally strong, any onetime things that may have benefited Q4? Or is this coming margin strength sustainable as we think about the first half of the year?

然後，CCS 利潤率明顯異常強勁，有哪些曾經可能使第四季受益的事情？或者，正如我們對今年上半年的看法，這種即將到來的利潤率優勢是否可持續？

Yes. Hi, Thanos. I wouldn't say that there's onetime items to call out, but what I would say is that our broader teams have done an exceptional job in this tough environment on maximizing pricing. And so there are a level of service billings that we've been seeing through 2022 for great service that we're providing our customers. As the supply chain environment starts to normalize as lead times come in, there'll be less opportunity for those types of service billings. And so we do think that there'll be a slight moderation of CCS margins as we go into next year. But obviously, the performance this year has been exceptional. So I think that would also be expected.

是的。嗨，薩諾斯。 我不會說有一些一次性的項目值得一提，但我想說的是，我們更廣泛的團隊在這個艱難的環境中在最大化定價方面做得非常出色。因此，到 2022 年，我們為客戶提供的優質服務的服務帳單水準已經達到了一定水準。隨著交付週期的到來，供應鏈環境開始正常化，此類服務計費的機會將會減少。因此，我們確實認為，進入明年，CCS 利潤率將會略有放緩。但顯然，今年的表現非常出色。所以我認為這也是可以預料的。

Great I'll pass the line. Congrats on the quarter.

太好了，我會過線的。恭喜本季。

Thanks, Thanos.

謝謝，薩諾斯。

Thanks, Thanos.

謝謝，薩諾斯。

Your next question comes from Paul Treiber from RBC Capital Markets.

您的下一個問題來自 RBC 資本市場的 Paul Treiber。

Just wanted to hone in on your comment about the late quarter demand shift that you saw in capital equipment. Can you just elaborate a bit more there? And then perhaps just indicate how that changed -- what led to the change versus your prior expectations going into this quarter?

只是想詳細談談您對資本設備中季度末需求變化的評論。能再詳細說明一下嗎？然後也許只是指出這種變化是如何變化的——與您之前對本季的預期相比，是什麼導致了這種變化？

Sure, Paul. Yes. So within capital equipment, early December, late November, one of our customers notified us that they had some inventory kind of built up in their supply chain as such, they wanted to defer some orders from the fourth quarter into the first quarter. So given it happened late, we were unable to kind of flex our costs in the last couple of weeks of the month. So that kind of led to a little bit of pressure. That issue is now corrected, if you will, and we kind of have a beat on what we think Q1 will be and the full year will be and supply and demand, we think, is relatively aligned.

當然，保羅。是的。因此，在資本設備方面，12 月初、11 月底，我們的一位客戶通知我們，他們的供應鏈中累積了一些庫存，因此他們希望將一些訂單從第四季度推遲到第一季。因此，鑑於事情發生得較晚，我們無法在該月的最後幾週調整成本。所以這導致了一點壓力。如果你願意的話，這個問題現在已經得到糾正，我們對第一季和全年的情況有所了解，我們認為供需相對一致。

Yes. Paul, if you'll recall, when the China export controls challenges came out, they came out right at the end of October, while we were announcing our results. And so we provided the color that our customers had at that point. As the understanding of that became more through the quarter, our customers were able to go and reassess their near-term delivery schedules. And that's why we had some of that late demand churn closer to the second half of the quarter.

是的。保羅，如果你還記得的話，當中國出口管制挑戰出現時，它們是在十月底出現的，當時我們正在宣布我們的結果。因此我們提供了客戶當時擁有的顏色。隨著整個季度對這一點的了解越來越多，我們的客戶能夠重新評估他們的近期交付計劃。這就是為什麼我們在接近本季下半年時出現了一些後期需求流失的原因。

Okay. That's helpful (inaudible) get an understanding. As we think about '23 and the linearity of growth within capital equipment, I mean, do you see a reacceleration or a return to growth steadily through the year? Is it back-end loaded? Like how should we think about that?

好的。這對於理解很有幫助（聽不清楚）。當我們思考 23 世紀以及資本設備內的線性成長時，我的意思是，您認為這一年會重新加速還是穩定恢復成長？是後端載入的嗎？例如我們該如何思考這個問題？

Yes. I would say within capital equipment, broadly speaking, we think that our base business will be down on a year-over-year business, but the new program ramps will be supplementing or offsetting some of those headwinds and that will be more back-end loaded and front-end loaded.

是的。我想說的是，在資本設備方面，從廣義上講，我們認為我們的基礎業務將同比下降，但新的計劃將補充或抵消其中的一些不利因素，這將更多地影響後端已加載和前端已載入。

Yes. Paul, from a market perspective, as you would know, what we're seeing in the overall market is that memory is down significantly. You're aware that we have less exposure in memory, a lot more exposure to logic. And then as we go through the year, what we're hearing from our customer base is that there is an expectation that there will be some demand strength as we exit '23. And so right now, we are outlooking 2023 based on what Robert just said, but the longer or medium-term fundamentals for the semi market continue to be attractive.

是的。保羅，從市場角度來看，如你所知，我們在整個市場中看到的是記憶體顯著下降。你知道我們對記憶的了解較少，對邏輯的了解較多。然後，當我們度過這一年時，我們從客戶群那裡聽到的是，預計隨著我們退出 23 年，需求將會增加。因此，現在，我們根據羅伯特剛才所說的對 2023 年進行展望，但半成品市場的長期或中期基本面仍然有吸引力。

Just non-life cycle revenue was very strong in Q4, and I think it's also a strong Q3. What are the reasons for the growth in that piece of the business?

第四季的非生命週期收入非常強勁，我認為第三季也很強勁。該業務成長的原因是什麼？

It's primarily driven by data center growth rates as well. As you know, we do multiple things for our customers. So we can have a customer where we're doing both HPS programs and non-HPS programs with them. We actually find that being able to provide those both services, create stickier relationships. And so when we've been seeing growth in our non-HPS programs, they're with largely hyperscaler customers for data center deployments.

它也主要由資料中心成長率驅動。如您所知，我們為客戶做很多事情。因此，我們可以為客戶提供 HPS 專案和非 HPS 專案。我們實際上發現，能夠提供這兩種服務可以建立更牢固的關係。因此，當我們看到非 HPS 計劃的成長時，他們主要是針對資料中心部署的超大規模客戶。

That's helpful. Thank you.

這很有幫助。謝謝。

Thanks, Paul.

謝謝，保羅。

Thanks, Paul.

謝謝，保羅。

Your next question comes from Robert Young from Canaccord Genuity.

您的下一個問題來自 Canaccord Genuity 的 Robert Young。

I was just curious about the supply chain. It sounds like there's -- you're expecting to be better in 2023. And I'm just curious how it -- how that evolution impacts your visibility. You benefited a lot from maybe better understanding of your customers' build schedules. And then as footprints are changing, people shifting towards onshore, maybe away from China, how does your footprint match up with where your customers want to go. (inaudible) double -- 2 questions related to supply chain there.

我只是對供應鏈感到好奇。聽起來您期望在 2023 年會變得更好。您可能因更好地了解客戶的建置計劃而受益匪淺。然後，隨著足跡的變化，人們轉向陸上，甚至遠離中國，您的足跡如何與客戶想去的地方相匹配。 （聽不清楚）雙 - 有 2 個與供應鏈相關的問題。

Thanks, Rob. Yes, from a supply chain perspective, the constraints have certainly eased from last quarter. And as we enter 2023, I think we're getting close to pre-covid levels. Nevertheless, supply lead times are still elevated, especially on some of the older chip technologies, such as an aerospace and some automotive products as it relates to at least us as it supports the EV market. With respect to giving us visibility on build schedules, build schedules and visibility is really a function of lead times. So given that lead times are still relatively high, again, semiconductor lead times are about 15 weeks. They are now about 34 weeks coming off a high of 40. So based on the increased lead times for semiconductors, we still have increased lead times and visibility into our customers' forecast which is a positive.

謝謝，羅布。是的，從供應鏈的角度來看，限制因素肯定比上季有所緩解。當我們進入 2023 年時，我認為我們正在接近新冠疫情之前的水平。儘管如此，供應週期仍然較長，特別是在一些較舊的晶片技術上，例如航空航天和一些汽車產品，因為它至少與我們相關，因為它支援電動車市場。關於讓我們了解建置計劃，建置計劃和可見性實際上是交付時間的函數。因此，考慮到交貨時間仍然相對較長，半導體的交貨時間約為 15 週。現在距離 40 週的高點已經過去了大約 34 週。

And regarding our footprint, we think we're really well positioned right now. We announced some expansions in Malaysia to support some growth there, and we also announced some expansions in Mexico to support some growth there, and that's really to facilitate customers wanting supply chain resilience and having multiple nodes supporting them and also to support additional onshoring.

就我們的足跡而言，我們認為我們現在處於有利位置。我們宣佈在馬來西亞進行一些擴張，以支持那裡的成長，我們也宣佈在墨西哥進行一些擴張，以支持那裡的成長，這實際上是為了方便那些希望供應鏈彈性並擁有多個節點來支持他們的客戶，同時也支持更多的本土業務。

Okay. And then second question, I wanted to dig into the EPS guide for 2023. You said that EPS -- adjusted EPS is now a key performance measure. And so it seems odd that the guide for 2023 is 5% growth and 10% at the midpoint -- 5% at the midpoint and then 10% in 2024 and 2025. So I'm just curious what the driver is that leads you to be a little more cautious on EPS growth in 2023?

好的。然後是第二個問題，我想深入研究 2023 年每股盈餘指南。因此，2023 年的指導方針是成長5%，中點成長10%，然後2024 年和2025 年成長5%，然後成長10%，這似乎很奇怪。因素是什麼對 2023 年每股盈餘成長更加謹慎嗎？

Yes. Rob. So we've been consistent with our EPS outlook for 2023 from what we had provided in October, $1.95 to $2.05. To your point, when you look after -- off of the very strong results that we had in 2022, it's a single-digit growth rate. 2022, as you know, is an exceptional year. If you looked at our EPS growth on a 2-year stack basis, we're above 20% growth. What we are seeing right now is continuing growth going into next year on the top line. We are being prudent to be very frank at this moment given it's January only of 2023. And we would hope that we would continue to see strong performance even as we exit Q1 and going into the rest of the year. So we will provide updates along the way. But right now, as you can see with our guide in Q1, the near-term visibility is quite robust.

是的。搶。因此，我們與 10 月提供的 2023 年每股收益預期保持一致，即 1.95 美元至 2.05 美元。就您而言，當您考慮 2022 年我們取得的非常強勁的業績時，您會發現成長率僅為個位數。如你所知，2022 年是不平凡的一年。如果您以 2 年為基礎查看我們的 EPS 成長，您會發現我們的成長超過 20%。我們現在看到的是明年營收將持續成長。鑑於現在只是 2023 年 1 月，我們目前非常謹慎地坦率地說。因此，我們將一路提供更新。但現在，正如您在第一季的指南中看到的那樣，近期能見度相當強勁。

Okay. And just last quickly on PCI. I think you said that you had a recovery there. Did you recover everything from the fire? And is that back to normal, then I'll pass the line?

好的。最後在 PCI 上快速完成。我想你說過你在那裡康復了。你從火災中恢復了一切嗎？恢復正常後我就可以通過了嗎？

Yes. Hi, Rob. As we exited Q4, we're now at, call it, pre-incident levels from a production point of view. So yes, we feel really good that we remained on plan to our -- original plan with respect to getting back to pre-incident levels as we exited the year.

是的。嗨，羅布。當我們退出第四季度時，從生產的角度來看，我們現在處於事件前的水平。所以，是的，我們感覺非常好，我們仍然按照原來的計劃，在今年結束時恢復到事件發生前的水平。

Your next question comes from Todd Coupland from CIBC.

您的下一個問題來自 CIBC 的 Todd Coupland。

I wanted to ask a couple of questions. I'll first start out on capital allocation. You've had a good experience with the PCI acquisition. It's now integrated and you're surpassing synergy targets. Is there -- are there any other M&A opportunities you are considering? And could you give us a general idea what might fit with your footprint at the moment?

我想問幾個問題。我先從資本配置開始。您在 PCI 收購中獲得了很好的體驗。現在它已經集成，並且您正在超越協同目標。您是否正在考慮其他併購機會？您能否給我們一個大概的了解，什麼可能適合您目前的足跡？

Sure. I'll start off and I'll let Rob add on as he wishes. So we're pleased with the overall strength of the balance sheet. Gross leverage now is at 1.3x, which is -- gives us a lot of flexibility. We're pleased with the free cash flow that we were able to generate, Todd, this year, $94 million. We're targeting over $100 million next year as well. And we want to continue to be opportunistic along the way. So you know our long-term strategy is to return half of our free cash flow to our shareholders. We were active in 2022 on buying back stock when the stock wasn't trading at levels that really made sense, and I say that from a multiples perspective. So we continue to have that flexibility going into 2023.

當然。我先開始，然後讓羅布按照他的意願添加。因此，我們對資產負債表的整體實力感到滿意。現在的總槓桿率為 1.3 倍，這給了我們很大的靈活性。托德，我們對今年能夠產生 9,400 萬美元的自由現金流感到滿意。我們明年的目標也超過 1 億美元。我們希望一路上繼續保持機會主義。所以你知道我們的長期策略是將一半的自由現金流回饋給股東。我們在 2022 年積極回購股票，當時該股的交易價格沒有真正有意義，我是從市盈率的角度這麼說的。因此，我們將在 2023 年繼續保持這種靈活性。

In terms of M&A, so first off, we're extremely pleased with the performance of PCI. The business has been doing very well. They surpassed our first year synergy target as was mentioned in the script, and that business continues to have a very robust outlook as well. We have a very active funnel. We're continuing to look for primarily capability-based acquisitions, largely tied to our life cycle solutions portfolio. So looking at targets in most of the end markets in ATS with the exception of capital equipment, it's not really an area that we're looking to lean into from an M&A perspective, but now also looking at targets in the HPS side we haven't pulled the trigger in 12 months. And the reason for that is just because we continue to have a very robust filter.

在併購方面，首先，我們對 PCI 的表現非常滿意。生意一直做得很好。正如腳本中所提到的，他們超出了我們第一年的協同目標，並且該業務也繼續擁有非常強勁的前景。我們有一個非常活躍的漏斗。我們正在繼續尋找主要基於能力的收購，很大程度上與我們的生命週期解決方案組合相關。因此，從併購的角度來看，除了資本設備之外，ATS 的大多數終端市場的目標並不是我們真正希望涉足的領域，但現在我們也著眼於 HPS 方面的目標。動了扳機。原因只是因為我們仍然擁有一個非常強大的過濾器。

The very first thing is does it line up with our strategic road maps, and then we want to ensure that it's meeting our other financial filters. And so we continue to be open to it. We have the balance sheet flexibility to do it, but we're going to be disciplined.

首先是它是否符合我們的策略路線圖，然後我們要確保它符合我們的其他財務過濾器。因此我們繼續對此持開放態度。我們的資產負債表具有足夠的靈活性來做到這一點，但我們將遵守紀律。

Okay. That's helpful. Thank you. And then if we could just step back from 2023 and if we think about the business in sort of a 3-year time frame, what type of production shifts do you expect to take place from Asia Pac to North America? And how would you anticipate Celestica participating in that?

好的。這很有幫助。謝謝。然後，如果我們可以從 2023 年退一步，如果我們以 3 年的時間框架來考慮業務，您預計會發生什麼類型的生產從亞太地區轉移到北美？您預計天弘會如何參與其中？

Yes, thanks. I think over a period of time, we'll see China -- might be multinationals in China that are selling products into China or Chinese customers in China serving China requirements. I think the production that has been in China, multinationals are looking to either move those Southeast Asia or into North America or into whether that's Mexico or other requirements in North America. So the broad shift, I think, is China going down, Southeast Asia growing, Mexico and North America is certainly growing. And based on our footprint, we have very little exposure to China, which works well for us. I think about less than 10% of our sales are coming from China. And we have expansions going on in Malaysia, and we certainly have been expanding our Mexico facility. And last year, we opened up our new facility in Richardson, Texas, and that is filling up very nicely with a very strong pipeline.

是的，謝謝。我認為在一段時間內，我們會看到中國——可能是在中國向中國銷售產品的跨國公司，或是在中國滿足中國需求的中國客戶。我認為跨國公司正在尋求將中國的生產轉移到東南亞或北美，或轉移到墨西哥或北美的其他需求地區。因此，我認為，廣泛的轉變是中國正在下降，東南亞正在成長，墨西哥和北美肯定在成長。根據我們的足跡，我們對中國的接觸很少，這對我們來說很有利。我認為我們的銷售額中不到 10% 來自中國。我們正在馬來西亞擴張，當然我們也一直在擴大我們的墨西哥工廠。去年，我們在德州理查森開設了新工廠，該工廠擁有非常強大的管道，非常完善。

So you'll just see this -- I guess your perspective is those are the trends that are happening, and you're already positioned. So you'll -- you just need to evolve with them as opposed to having to make any material step outs.

所以你會看到這一點——我想你的觀點是這些是正在發生的趨勢，而且你已經做好了定位。所以你會——你只需要與他們一起發展，而不是做出任何實質的退出。

It's well put.

說得很好。

(Operator Instructions) There are no further questions at this time. You may proceed, Mr. Mionis.

（操作員說明） 目前沒有其他問題。您可以繼續了，米奧尼斯先生。

Thank you. I'm pleased with our performance in the fourth quarter and for all of 2022. In 2022, we grew our adjusted EPS by 46%, marking another strong year of performance. In fact, over the past 3 years, Celestica has grown adjusted EPS by over 50%, a true testament to our ability to execute in difficult markets. I'm encouraged with the momentum we have as we enter 2023. We are well skilled at managing our business through economic cycles and feel confident in our ability to navigate through economic uncertainties.

謝謝。我對我們第四季和 2022 年全年的業績感到滿意。事實上，在過去 3 年裡，天弘的調整後每股盈餘成長了 50% 以上，這真正證明了我們在困難市場中的執行能力。進入 2023 年，我們的發展勢頭令我深受鼓舞。

Thank you again for joining today's call, and I look forward to updating you as we progress throughout the year.

再次感謝您參加今天的電話會議，我期待著向您通報我們全年進展的最新情況。

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，並請您斷開線路。