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.

女士們先生們，早上好，歡迎來到 Celestica 2022 年第四季度收益電話會議。 （操作員說明）此通話記錄於 2023 年 1 月 26 日星期四。

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

我現在想將會議轉交給 Craig Oberg。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.

早上好，感謝您加入 Celestica 的 2022 年第四季度收益電話會議。今天參加電話會議的有總裁兼首席執行官 Rob Mionis 和首席財務官 Mandeep Chawla。提醒一下，在本次電話會議期間，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、預測或預測存在重大差異。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。

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.

除非法律要求，否則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 IFRS 財務指標，包括基於非 IFRS 財務指標的比率，包括非 IFRS 營業利潤率、調整後的毛利率、調整後的投資資本回報率或調整後的 ROIC，自由調整現金流量、總債務與非 IFRS 的尾隨 12 個月調整後的 EBITDA 槓桿率、調整後的每股收益或調整後的每股收益、調整後的 SG&A 費用、生命週期解決方案收入和調整後的有效稅率。應提醒聽眾，在本次電話會議中提及任何上述措施均表示非 IFRS 財務措施，無論是否明確指定為非 IFRS 財務措施。這些非 IFRS 財務指標沒有 IFRS 規定的任何標準化含義，可能無法與其他根據 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 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，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 財務措施的更多信息，包括歷史非 IFRS 財務措施的對賬與我們財務報表中最直接可比的 IFRS 財務指標相比較。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，每股信息均基於稀釋後的流通股。

Let me now turn the call over to Rob.

現在讓我把電話轉給 Rob。

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.

謝謝你，克雷格，大家早上好，感謝你參加今天的電話會議。 Celestica 第四季度表現強勁，儘管宏觀環境持續帶來挑戰，但我們繼續推動穩健的業績。我們第四季度的收入為 20.4 億美元，經非 IFRS 調整後的每股收益為 0.56 美元，均高於我們指導範圍的上限。此外，我們第四季度的非 IFRS 營業利潤率和非 IFRS 調整後的每股收益是公司歷史上最高的。 2022 年對 Celestica 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，在我們多年的投資組合轉型計劃完成後，我們自 2018 年以來首次實現年度收入增長。自 2011 年以來，我們的年收入首次超過 70 億美元，與 2021 年相比，整體收入增長了 29%，有機增長了 24%。其次，我們錄得有史以來最高的年度非 IFRS 營業利潤率 4.9%，反映了我們贏得和贏得勝利的能力根據我們的戰略提供更高附加值的計劃。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產品組合繼續成為我們收入和盈利能力增長的主要驅動力，反映出我們對高價值市場的戰略重點，我們認為這些市場的長期順風支持可持續增長。我們的生命週期解決方案組合現在約占我們業務的 2/3，實現了 39% 的同比收入增長，因為我們的 HPS 業務和 ATS 部門在 2022 年創下了有史以來的最高收入。我們的 ATS 部門的年收入增長了 29%到 2022 年，收入將增長約 30 億美元。憑藉我們的戰略多元化和對具有強勁長期順風的市場的敞口，我們預計 ATS 的強勁增長基本面將在 2023 年繼續。

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 部門在 2022 年也實現了大幅增長，收入同比增長 29%，部門利潤率為 5.1%，創歷史新高。我們強勁的 CCS 業績在很大程度上繼續受到我們的 HPS 業務的推動，該業務在 2022 年實現了 18.3 億美元的收入，同比增長 59%。我們的服務提供商客戶對我們差異化產品的強烈需求支持了這一增長。我們相信，過去幾年我們專注於業務多元化和增加對高價值市場的敞口的戰略舉措將幫助我們在 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.

在我對我們每個市場的前景提供一些額外的顏色之前，我想把電話轉給 Mandeep，他將提供我們第四季度財務業績的詳細信息以及我們對 2023 年第一季度的指導。交給你了，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.

謝謝羅布，大家早上好。第四季度收入為 20.4 億美元。這超出了我們指導範圍的上限，同比增長 35%，這得益於我們每項業務的收入增長。我們在第四季度實現了 5.3% 的非 IFRS 營業利潤率，同比增長 40 個基點。強勁的業績在很大程度上是由我們 CCS 部門創紀錄的盈利能力推動的，代表了公司歷史上最高的季度非 IFRS 營業利潤率。第四季度非 IFRS 調整後每股收益為 0.56 美元，高於我們指導範圍的上限，並且在銷量增加和組合改善的推動下同比增長 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.

第四季度 ATS 部門收入同比增長 30%，高於我們預期的 20 多歲的同比增長百分比。 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，這得益於穩健的需求、新項目的增加和材料可用性的提高。 ATS部門收入佔第四季度總收入的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.

我們的 CCS 部門在我們的通信和企業終端市場的出色表現的推動下，又實現了另一個季度的強勁增長，收入同比增長 39%。我們的 HPS 業務繼續取得強勁業績，第四季度收入達到 4.91 億美元，同比增長 40%。 HPS 收入的增長是由市場份額的增加和我們的服務提供商客戶的強勁需求推動的，因為他們繼續在擴大數據中心容量方面進行大量投資。第四季度 HPS 收入占公司總收入的 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.

通信終端市場收入同比增長 34%，略高於我們預期的 30% 的低增長率，這主要得益於我們的 HPS 業務的計劃增加和材料可用性的提高。本季度企業終端市場收入同比增長 49%，遠高於我們預期的 20 多歲百分比增長，主要受新 RAC 計劃、計算需求增加和材料可用性提高的推動。

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.

轉向部門利潤率。第四季度 ATS 部門利潤率為 4.4%，同比下降 120 個基點。分部利潤率下降的原因是資本設備在季度末的需求變化，以及工業領域的大量提升計劃，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個季度擴大。 CCS 部門利潤率為 5.9%，同比增長 150 個基點。這一增長是由強大的 HPS 組合和運營生產力推動的，這是由改進的材料流、強勁的服務賬單和數量槓桿驅動的。

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.

繼續討論一些額外的財務指標。本季度的 IFRS 淨收益為 4200 萬美元或每股 0.35 美元，而去年同期為 3200 萬美元或每股 0.26 美元。第四季度調整後毛利率為 9.4%，同比下降 20 個基點，主要原因是可變薪酬較高。我們第四季度的非國際財務報告準則調整後有效稅率為 22.7%。第四季度非國際財務報告準則調整後的 ROIC 為 20.7%，同比增長 4.1%，是我們自 2017 年以來的最高業績。

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。第四季度末我們的庫存為 23.5 億美元，環比增加 2400 萬美元，同比增加 6.53 億美元。雖然充滿挑戰的供應鏈環境已經並將繼續推動我們的庫存水平上升，但增加的很大一部分也歸因於我們過去 2 年的強勁銷售增長。我們繼續與客戶合作，為庫存增長提供資金，第四季度末客戶現金存款超過 8 億美元，環比增加約 2 億美元，同比增加近 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度減少了約 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.

第四季度現金周轉天數為 64%，比第三季度高 1 天，比去年同期低 11 天。我們還看到供應鏈限制持續改善的跡象，與前幾個季度相比，材料限制減少，材料交貨時間從創紀錄水平減少的早期跡象。在我們保持勤奮和積極主動的同時，我們確實希望在 2023 年看到營運資金的改善。

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.

第四季度的資本支出為 3200 萬美元，約佔收入的 1.6%，而 2021 年第四季度為 1.1%。這一增長符合我們之前傳達的下半年投資略有增加的預期。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.

第四季度非國際財務報告準則調整後的自由現金流為 4300 萬美元，而去年同期為 3600 萬美元。由於強大的營運資本管理，2022 財年非 IFRS 調整後的自由現金流總額為 9400 萬美元，超出了我們的預期。我們的預期是在 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。我們年底的現金餘額為 3.75 億美元，同比減少 1900 萬美元，環比增加 1200 萬美元。我們的現金餘額，加上我們循環貸款下約 6 億美元的借貸能力，為我們提供了約 10 億美元的流動資金，我們認為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.

我們年底的總債務為 6.27 億美元，比上一季度減少 2000 萬美元，淨債務頭寸為 2.52 億美元。我們第四季度的總債務與非國際財務報告準則的跟踪 12 個月調整後 EBITDA 槓桿比率為 1.3 倍，環比下降 0.2 倍，與去年同期相比下降 0.7 倍。截至 2022 年 12 月 31 日，我們遵守了信貸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.

在第四季度，我們以大約 1200 萬美元的成本購買了大約 120 萬股註銷股票。我們在 2022 年以 3500 萬美元的價格回購了總計 340 萬股股票以註銷。2022 年 12 月，多倫多證券交易所接受了我們新的 NCIB 計劃，該計劃允許我們在未來 12 個月內購買多達 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% 的資金長期再投資於業務。

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 年第一季度的指導。我們第一季度的收入預計在 17.25 億美元至 18.75 億美元之間。如果達到這個範圍的中點，收入將同比增長 15%。第一季度非 IFRS 調整後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達到，非 IFRS 營業利潤率將約為 5.0%，這將比去年同期增加 60 個基點。第一季度非 IFRS 調整後的 SG&A 費用預計在 5600 萬至 5800 萬美元之間。我們預計第一季度我們的非 IFRS 調整後有效稅率約為 21%，不包括應稅外彙的任何影響。

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 年第一季度的終端市場展望。在我們的 ATS 終端市場，我們預計在工業和 A&D 兩位數增長的推動下，收入將同比增長在較低的個位數百分比範圍內部分被資本設備需求疲軟所抵消。在我們的 CCS 部分，我們預計在我們的 HPS 產品支持下，在服務提供商客戶持續強勁需求的推動下，我們通信終端市場的收入將同比增長十幾%。最後，在我們的企業終端市場，在強勁的計算需求的支持下，我們預計收入同比增長 30% 左右。

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

我現在將電話轉回給 Rob，以提供有關我們市場和整體前景的更多信息。

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 Celestica 來說是標誌性的一年之後，我想首先重申我們在 10 月的電話會議上分享的 2023 年展望。重申一下，我們 2023 年的收入前景至少為 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。如果實現這些結果，將代表公司在收入、非 IFRS 營業利潤率和非 IFRS 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。我們預計 2023 年的非 IFRS 營業利潤率範圍在 4.5% 至 5.5% 之間，比 2022 年高 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.

雖然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我們多元化投資組合的彈性充滿信心。我們認為，我們的業務有望繼續跑贏更廣泛的市場，並在未來取得強勁的財務業績。我們很高興我們提前實現了我們在 2022 年 3 月的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 調整後每股收益以每年 10% 或更高的速度增長。2022 年，我們增長了非國際財務報告準則大幅調整了每股收益，在 2023 年目標範圍的中點，我們 2022 年和 2023 年的 2 年平均年增長率將為 24%。

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.

從 2024 年到 2025 年，我們的年均非 IFRS 調整後每股收益增長率目標將繼續保持在 10% 或更高。為了激勵我們繼續專注於推動盈利增長，我們重組了高級管理人員的長期激勵計劃，將非 IFRS 調整後的每股收益作為一項關鍵績效指標。

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 ATS 和 CCS 來說都是偉大的一年，我們預計 2023 年將在此勢頭的基礎上再接再厲，ATS 部門收入以高個位數增長，CCS 部門收入以低個位數增長。在我們的 ATS 部門，我們的工業業務繼續取得強勁業績，與 2021 年相比，2022 年實現了 24% 的有機增長，全年每個季度都出現了環比改善。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經營業績並超過了我們第 1 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依然強勁，因為預計需求將繼續受益於綠色能源市場的長期順風，包括電動汽車，我們正在推動許多新項目。我們預計我們的工業業務將在 2023 年實現強勁增長，其中約 75% 的預期增長來自綠色能源計劃。

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、市場份額增加和強大的運營執行力的推動下，我們的資本設備業務在 2022 年表現穩健。在我們之前的電話會議上，我們強調了晶圓廠設備支出在經歷了幾年的快速增長後將在 2023 年減少的預期，其中大部分下降來自內存市場。我們現在預計整個晶圓廠設備市場到 2023 年將下降約 20%，其中大部分下降仍在內存中。雖然預計整體市場將大幅下滑，但我們預計 2023 年我們的資本設備收入將比 2022 年略有下降。我們的業務組合、市場份額增長和新項目的勝利預計將使我們的表現優於更廣泛的市場。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 年恢復增長。

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 年實現了強勁復甦，顯示出每個季度的連續改善和兩位數的年度收入增長。在我們的商業航空航天業務中，我們繼續看到商業空中交通向疫情前的水平正常化，這一趨勢預計將持續到 2023 年。我們的國防業務收入在 2022 年實現兩位數增長，預計將保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軍費開支和對設備升級的投資支持了 2023 年的穩健軌跡。我們的健康科技業務正在強勁增長。由於對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不太敏感。我們預計 2023 年的收入將實現同比增長，這得益於外科、成像和患者監測設備的新項目增加。

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 年中取得了顯著增長，年增長率達到 56%，規模增長了兩倍多。我們的服務提供商客戶對數據中心擴展的大量資本投資以及我們通過差異化產品從 ODM 那裡獲得市場份額的能力支持了這一特殊時期的業績。根據我們目前的市場前景，我們預計 2023 年服務提供商客戶計劃的增長將放緩。這主要是由於 2022 年創紀錄之後比較困難以及鑑於當前經濟形勢下需求可能疲軟的結果環境。我們預計我們的 HPS 業務將在 2023 年繼續增長，但增長幅度將更為溫和。我們對通信終端市場的展望與我們的 HPS 業務一致，因為它一直是最近幾個季度增長的主要驅動力。我們預計通信業務將在 2023 年增長，但由於競爭更加激烈，增長將更加溫和。

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，我們預計該業務將在 2023 年由於新計劃的增加而增長，但由於更嚴格的競爭，業務將再次處於更溫和的水平。我對我們在 2022 年取得的成就感到非常高興，並對我們實現 2023 年目標的能力充滿信心。這種信心得益於我們的投資組合多元化、我們為支持有意義的增長機會而進行的投資以及我們在全球網絡中持續執行的可靠能力。

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.

我想通過感謝我們的全球團隊為實現和執行我們的願景不懈努力所付出的努力和取得的成就來結束電話會議。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.

有了這個，我現在想把電話轉給接線員提問。謝謝你。

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.

謝謝你。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）細節就這麼多。我的問題是，在過去幾年中，您在向雲計算和超大規模應用程序的銷售方面取得了巨大的成功。只是想知道您從那種類型的需求產品中得到了什麼類型的需求指標。你提到你期望企業，我相信你說過要在你準備好的評論結束時成長。但我只是對超大規模和雲的種類感到好奇，你是否看到該領域的任何競爭變化？謝謝你。

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，對於超大規模和雲計算，我們在當前環境中看到的是訂單可見性恢復到正常水平。我們看到大多數產品的增長放緩。由於使用案例的擴展，一些增加，即它可能是背部疼痛的一部分，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重置，並創造了一些需求疲軟。但另一方面，我們仍然看到增長，更溫和的增長，儘管來自中國方面的幾乎所有超大規模。我們仍然看到客戶為空運支付的保費低於前幾個季度，但在當前環境下仍然相對強勁。

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。謝謝你。作為後續行動，您是否看到任何競爭變化，不僅僅是在雲超大規模上，而且像整體業務一樣，因為它似乎在 covid 期間，當沒有人能夠獲得金螺絲或缺少關鍵部件時，定價競爭力較低。我只是想知道，現在可用性正在變得越來越可用，行業內的價格是否正在發生變化？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，這個行業是否有點翻頁變得更加自律？

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.

這是個好問題。鑑於我們的大部分 CCS 業務現在都是 HPS，我們已經確立了自己的創新精神和卓越的執行力。我們沒有看到——我稱之為極端定價壓力，僅僅是因為我們向客戶提供的產品和服務的粘性和設計性質。

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信息和說明。祝賀你和你所有的團隊。

Thanks, Jim.

謝謝，吉姆。

Your next question comes from Thanos Moschopoulos.

你的下一個問題來自 Thanos Moschopoulos。

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?

Rob，也許只是回到宏觀上，顯然是一個動態的環境。因此，如果我們只考慮您在過去 3 個月中看到的變化，這聽起來像是——我的意思是，我從您的評論中得出的結論是，除了逐漸走軟之外，需求是相當一致的在資本設備和供應鏈方面與上一季度相比有所改善。這樣公平嗎？我的意思是，再次考慮與上一季度相比發生的變化，還有什麼你想說的，或者那些是關鍵要點？

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.

恩，那就對了。因此，在 ATS 內部，我們看到所有垂直領域都在增長，但資本設備除外。我們預計 2023 年會略有下降，這主要是由於我們有新的計劃坡道。其中一些甚至有新的光刻客戶，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。在 CCS 內部，坦率地說，從 22 年到 23 年，comps 真的很艱難，但我們看到 comps 和 enterprise 以及 HPS 的增長肯定會進入第一季度和全年。

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?

然後在明顯異常強勁的 CCS 利潤率上，任何曾經使第四季度受益的事情？或者，當我們考慮今年上半年時，這種即將到來的利潤率強度是否可持續？

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。我不會說有一次性項目需要調用，但我要說的是，我們更廣泛的團隊在這種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，我們已經看到了一定程度的服務賬單，以表彰我們為客戶提供的優質服務。隨著交貨時間的到來，供應鏈環境開始正常化，這些類型的服務計費機會將會減少。因此，我們確實認為，隨著我們進入明年，CCS 利潤率會略有下降。但顯然，今年的表現非常出色。所以我認為這也是意料之中的。

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

太好了，我會通過的。祝賀這個季度。

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?

只是想深入了解您對資本設備中看到的季度末需求變化的評論。你能再詳細說明一下嗎？然後也許只是說明它是如何變化的——是什麼導致了變化與你之前對本季度的預期相比？

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，在資本設備中，12 月初、11 月下旬，我們的一位客戶通知我們，他們的供應鏈中存在一些庫存，他們希望將一些訂單從第四季度推遲到第一季度。因此，鑑於它發生的時間較晚，我們無法在本月的最後幾週內降低成本。所以這導致了一點壓力。這個問題現在已經得到糾正，如果你願意的話，我們對我們認為的第一季度和全年將會有一個節拍，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，當中國出口管制挑戰出現時，它們就在 10 月底出現，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。隨著本季度對此的了解越來越多，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度下半年時出現了一些後期需求流失。

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。這有助於（聽不清）獲得理解。當我們考慮 23 年和資本設備內的線性增長時，我的意思是，你是否看到全年重新加速或穩步恢復增長？後端加載了嗎？比如我們應該如何考慮？

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，但新項目的增加將補充或抵消其中的一些不利因素，這將是更多的後端加載和前端加載。

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，從市場的角度來看，正如你所知，我們在整個市場上看到的是內存顯著下降。你知道我們在記憶中的暴露較少，而在邏輯上的暴露更多。然後當我們度過這一年時，我們從我們的客戶群那裡聽到的是，我們期望在我們退出 23 年時會有一些需求強度。所以現在，我們根據羅伯特剛才所說的展望 2023 年，但半導體市場的長期或中期基本面仍然具有吸引力。

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?

第四季度的非生命週期收入非常強勁，我認為第三季度也很強勁。該業務增長的原因是什麼？

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.

它也主要受數據中心增長率的推動。如您所知，我們為客戶做很多事情。所以我們可以有一個客戶，我們正在與他們一起做 HPS 程序和非 HPS 程序。我們實際上發現，能夠同時提供這兩種服務，可以建立更牢固的關係。因此，當我們看到我們的非 HPS 計劃有所增長時，它們主要是針對數據中心部署的超大規模客戶。

That's helpful. Thank you.

這很有幫助。謝謝你。

Thanks, Paul.

謝謝，保羅。

Thanks, Paul.

謝謝，保羅。

Your next question comes from Robert Young from Canaccord Genuity.

你的下一個問題來自 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。聽起來好像有——你期望在 2023 年會變得更好。我只是很好奇——這種演變如何影響你的知名度。您可能會更好地了解客戶的構建計劃，從而受益匪淺。然後隨著足蹟的變化，人們轉向陸上，也許遠離中國，你的足跡如何與你的客戶想去的地方相匹配。 （聽不清）雙重 - 那裡有 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，限制肯定比上個季度有所緩解。隨著我們進入 2023 年，我認為我們正在接近疫情前的水平。儘管如此，供應交貨期仍然很長，尤其是一些較舊的芯片技術，例如航空航天和一些汽車產品，因為它至少與我們相關，因為它支持電動汽車市場。關於讓我們了解構建計劃，構建計劃和可見性實際上是交貨時間的函數。因此，鑑於交貨時間仍然相對較長，半導體交貨時間大約為 15 週。他們現在大約有 34 週，從 40 週的高點回落。因此，基於半導體交貨時間的增加，我們仍然增加了交貨時間和對客戶預測的可見性，這是積極的。

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.

關於我們的足跡，我們認為我們現在確實處於有利地位。我們宣佈在馬來西亞進行一些擴張以支持那裡的一些增長，我們還宣佈在墨西哥進行一些擴張以支持那裡的一些增長，這實際上是為了促進客戶需要供應鏈彈性並擁有多個節點支持他們，並支持額外的在岸外包。

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 年的每股收益指南。你說每股收益——調整後的每股收益現在是一個關鍵的績效指標。因此，2023 年的指南是 5% 的增長和中點 10% 似乎很奇怪 -- 中點 5%，然後 2024 年和 2025 年 10%。所以我很好奇是什麼驅動因素導致你對 2023 年 EPS 增長要謹慎一點？

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，我們與我們在 10 月份提供的 2023 年每股收益展望保持一致，即 1.95 美元至 2.05 美元。就你的觀點而言，當你照顧時——從我們在 2022 年取得的非常強勁的結果來看，這是個位數的增長率。如您所知，2022 年是不平凡的一年。如果您在 2 年的基礎上查看我們的 EPS 增長，我們的增長超過 20%。我們現在看到的是明年的收入將持續增長。鑑於現在只是 2023 年的 1 月，我們現在非常坦率地謹慎行事。我們希望即使我們退出第一季度並進入今年剩餘時間，我們也能繼續看到強勁的表現。因此，我們將一路提供更新。但是現在，正如您在第一季度的指南中看到的那樣，近期的可見性非常強勁。

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。並在 PCI 上快速持續。我想你說過你在那裡康復了。你把火災中的一切都找回來了嗎？如果恢復正常，那麼我會通過電話嗎？

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，我們現在處於事件發生前的水平。所以，是的，我們感覺非常好，因為我們仍然按照我們的計劃 - 在我們退出這一年時恢復到事件前水平的原始計劃。

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。我將首先從資本配置開始。您在 PCI 收購方面有很好的經驗。它現在已集成，您正在超越協同目標。有沒有 - 您正在考慮的任何其他併購機會？你能給我們一個大概的想法嗎？什麼可能適合你目前的足跡？

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。我會開始，我會讓 Rob 按他的意願添加。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。我們對今年能夠產生的自由現金流感到滿意，托德，9400 萬美元。我們明年的目標也超過 1 億美元。我們希望在此過程中繼續保持機會主義。所以你知道我們的長期戰略是將我們一半的自由現金流返還給我們的股東。我們在 2022 年積極回購股票，當時股票的交易價格沒有達到真正合理的水平，我是從倍數的角度說的。因此，我們在 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。生意一直做的很好。正如劇本中提到的，他們超過了我們第一年的協同目標，而且該業務的前景也非常強勁。我們有一個非常活躍的漏斗。我們將繼續尋找主要基於能力的收購，主要與我們的生命週期解決方案組合相關。因此，除了資本設備外，看看大多數 ATS 終端市場的目標，從併購的角度來看，這並不是我們真正想要涉足的領域，但現在也在關注我們還沒有的 HPS 方面的目標。 t 在 12 個月內扣動了扳機。這樣做的原因只是因為我們繼續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戰略路線圖，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。我們有資產負債表的靈活性來做到這一點，但我們會受到紀律處分。

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。謝謝你。然後，如果我們可以從 2023 年退後一步，如果我們在 3 年的時間框架內考慮業務，您希望從亞太地區到北美髮生什麼樣的生產轉移？您如何看待 Celestica 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.

是啊謝謝。我認為在一段時間內，我們會看到中國——可能是在中國銷售產品到中國的跨國公司，或者是在中國滿足中國需求的中國客戶。我認為一直在中國生產的跨國公司正在尋求將那些東南亞或北美轉移到墨西哥或北美的其他要求。因此，我認為大的轉變是中國在走下坡路，東南亞在增長，墨西哥和北美肯定在增長。根據我們的足跡，我們對中國的接觸很少，這對我們很有效。我認為我們只有不到 10% 的銷售額來自中國。我們在馬來西亞正在進行擴張，我們當然一直在擴大我們的墨西哥工廠。去年，我們在得克薩斯州的理查森開設了我們的新工廠，並且擁有非常強大的管道，非常好。

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.

所以你只會看到這個——我想你的觀點是那些正在發生的趨勢，你已經定位了。所以你會 - 你只需要與他們一起發展，而不是必須做出任何實質性的步驟。

It's well put.

放得很好。

(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。 Mionis 先生，您可以繼續了。

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.

謝謝你。我對我們在第四季度和 2022 年全年的表現感到滿意。2022 年，我們調整後的每股收益增長了 46%，標誌著又一個強勁的表現年。事實上，在過去 3 年裡，Celestica 的調整後每股收益增長了 50% 以上，這真實地證明了我們在困難市場中的執行能力。進入 2023 年，我們所擁有的勢頭令我感到鼓舞。我們擅長通過經濟周期管理我們的業務，並對我們應對經濟不確定性的能力充滿信心。

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，我期待著在我們全年取得進展時為您提供最新消息。

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。