Celestica Inc (CLS) 2022 Q1 法說會逐字稿

Good morning. My name is Julianne, and I will be your conference operator today.

早上好。我叫 Julianne，今天我將擔任您的會議接線員。

At this time, I would like to welcome everyone to Celestica's Q1 2022 Earnings Conference Call. (Operator Instructions)

在這個時候，我想歡迎大家參加 Celestica 的 2022 年第一季度收益電話會議。 （操作員說明）

Craig Oberg, Vice President of Investor Relations and Corporate Development, you may begin your conference.

投資者關係和企業發展副總裁 Craig Oberg，您可以開始您的會議了。

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

早上好，感謝您參加 Celestica 2022 年第一季度收益電話會議。今天的電話會議是總裁兼首席執行官 Rob Mionis；和首席財務官 Mandeep Chawla。

As a reminder, during this call we will make forward-looking statements within the meanings of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Such forward-looking statements are based on management's current expectations, forecasts and assumptions, which are subject to risks, uncertainties and other factors that could cause actual outcomes and results to differ materially from conclusions, forecasts or projections expressed in such statements.

提醒一下，在本次電話會議中，我們將根據 1995 年美國私人證券訴訟改革法案和適用的加拿大證券法作出前瞻性陳述。此類前瞻性陳述基於管理層當前的預期、預測和假設，這些預期、預測和假設受到風險、不確定性和其他可能導致實際結果和結果與此類陳述中表達的結論、預測或預測存在重大差異的因素的影響。

For identification and a discussion of such factors and assumptions as well as further information concerning forward-looking statements, please refer to yesterday's press release, including the cautionary note regarding forward-looking statements therein, our most recent annual report on Form 20-F and other public filings which can be accessed at sec.gov and sedar.com. We assume no obligation to update any forward-looking statement except as required by law.

有關此類因素和假設的識別和討論以及有關前瞻性陳述的進一步信息，請參閱昨天的新聞稿，包括其中有關前瞻性陳述的警告說明、我們最近的 20-F 表格年度報告和可在 sec.gov 和 sedar.com 訪問的其他公開文件。除法律要求外，我們不承擔更新任何前瞻性陳述的義務。

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

此外，在本次電話會議中，我們將參考各種非 IFRS 財務指標，包括基於非 IFRS 財務指標的比率，包括營業收入、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、自由現金流量、總債務與非 IFRS 過去 12 個月調整後的 EBITDA 槓桿比率、調整後的淨收益、調整後的每股收益或調整後的每股收益、調整後的 SG&A、生命週期解決方案收入和調整後的有效稅率。

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

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

We refer you to yesterday's press release and our Q1 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.

我們向您推薦昨天的新聞稿和我們的 2022 年第一季度收益報告，可在 celestica.com 的“投資者關係”選項卡下獲取有關這些和某些其他非 IFRS 財務指標的更多信息，包括歷史非 IFRS 財務指標的對賬衡量我們財務報表中最直接可比的 IFRS 財務指標。

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.

除非另有說明，否則本次電話會議中所有提及的美元均為美元，每股信息基於已發行的攤薄股份。

Let me now turn the call over to Rob.

現在讓我把電話轉給 Rob。

Thank you, Craig. Good morning, everyone, and thank you for joining us on today's conference call.

謝謝你，克雷格。大家早上好，感謝您參加今天的電話會議。

Our strong performance for the first quarter of 2022 was a great start to the year and a testament to the execution of our multiyear journey. In spite of a dynamic macro environment, Celestica continues to execute well on our key objectives while advancing our long-term strategy.

我們在 2022 年第一季度的強勁表現是今年的一個良好開端，也證明了我們多年旅程的執行。儘管宏觀環境充滿活力，Celestica 在推進我們的長期戰略的同時繼續很好地執行我們的主要目標。

Both our first quarter revenue and non-IFRS adjusted EPS came in above the high end of our guidance ranges, and our non-IFRS operating margin exceeded the midpoint of our guidance ranges. Furthermore, our non-IFRS operating margin of 4.4% represents the ninth consecutive quarter of year-over-year operating margin improvement.

我們的第一季度收入和非 IFRS 調整後的每股收益都高於我們指導範圍的高端，我們的非 IFRS 營業利潤率超過了我們指導範圍的中點。此外，我們 4.4% 的非國際財務報告準則營業利潤率是連續第九個季度實現營業利潤率同比增長。

And Q1 2022 was another strong quarter for our CCS segment, achieving 24% revenue growth compared to the first quarter of 2021. Hardware Platform Solutions, or HPS, continues to exhibit very strong growth, as we continue to gain market share. Our HPS business is expected to remain a driver of growth in CCS for all of 2022.

2022 年第一季度是我們 CCS 部門的另一個強勁季度，與 2021 年第一季度相比，收入增長了 24%。隨著我們繼續獲得市場份額，硬件平台解決方案 (HPS) 繼續表現出非常強勁的增長。我們的 HPS 業務預計將在 2022 年全年繼續成為 CCS 增長的驅動力。

Our ATS segment also had a solid quarter, achieving 31% revenue growth as compared to the first quarter of last year. Our success in ATS was driven primarily by our growth in our Industrial and Capital Equipment businesses, including our first full quarter of results from PCI. We're also pleased to see our A&D business returning to growth from trough levels in 2021.

我們的 ATS 部門也有一個穩健的季度，與去年第一季度相比，收入增長了 31%。我們在 ATS 方面的成功主要是由於我們在工業和資本設備業務方面的增長，包括我們第一個完整季度的 PCI 業績。我們也很高興看到我們的 A&D 業務從 2021 年的低谷水平恢復增長。

While we are operating in a challenging supply chain environment, we believe we will build on the positive momentum we have established in the first quarter by executing on our strategic and operational objectives and achieve another year of strong financial performance in 2022.

雖然我們在充滿挑戰的供應鏈環境中運營，但我們相信，我們將通過執行我們的戰略和運營目標來鞏固我們在第一季度建立的積極勢頭，並在 2022 年實現又一年的強勁財務業績。

Based on robust year-to-date demand and the assumption that the supply chain environment does not materially worsen, we are pleased to have raised our full year 2022 revenue outlook to $6.5 billion, or more. If achieved, this would represent 15% year-over-year growth.

基於年初至今強勁的需求以及供應鏈環境沒有實質性惡化的假設，我們很高興將 2022 年全年收入預期提高至 65 億美元或更多。如果實現，這將代表 15% 的同比增長。

In addition, as a result of the higher revenue outlook, we have tightened the range on our full year non-IFRS adjusted EPS range to between $1.60 and $1.75.

此外，由於收入前景較高，我們已將全年非國際財務報告準則調整後每股收益範圍收窄至 1.60 美元至 1.75 美元之間。

Before I offer some additional detail on our business outlook, I'd like to turn the call over to Mandeep, who will provide you with additional color on our first quarter financial performance as well as our guidance for the next quarter and details on our 2022 outlook. Over to you, Mandeep.

在我提供有關我們業務前景的更多詳細信息之前，我想將電話轉給 Mandeep，他將為您提供有關我們第一季度財務業績的更多信息，以及我們對下一季度的指導以及我們 2022 年的詳細信息外表。交給你了，曼迪普。

Thank you, Rob, and good morning, everyone.

謝謝你，Rob，大家早上好。

First quarter 2022 revenue came in at $1.57 billion, above the high end of our guidance range. Revenue was up 27% year-over-year and up 4% sequentially, fueled by double-digit revenue growth in both of our segments.

2022 年第一季度的收入為 15.7 億美元，高於我們指導範圍的高端。在我們兩個部門的兩位數收入增長的推動下，收入同比增長 27%，環比增長 4%。

We delivered non-IFRS operating margin of 4.4%, 20 basis points ahead of the midpoint of our revenue and non-IFRS adjusted EPS guidance ranges, driven by strong performance in both segments. Non-IFRS operating margin was up 90 basis points year-over-year and down 50 basis points sequentially.

在這兩個部門的強勁表現的推動下，我們實現了 4.4% 的非國際財務報告準則營業利潤率，比我們的收入和非國際財務報告準則調整後每股收益指導範圍的中點高出 20 個基點。非國際財務報告準則營業利潤率同比上升 90 個基點，環比下降 50 個基點。

Non-IFRS adjusted earnings per share were $0.39, above the high end of our guidance range of $0.31 to $0.37, and up $0.17 year-over-year and down $0.05 sequentially.

非國際財務報告準則調整後每股收益為 0.39 美元，高於我們指導範圍 0.31 美元至 0.37 美元的上限，同比增長 0.17 美元，環比下降 0.05 美元。

ATS segment revenue was up 31% year-over-year, above our expectations of a low-20s percentage year-over-year increase. Organically, ATS revenue was up 12% year-over-year. Sequentially, total ATS segment revenue was up 10%.

ATS 部門收入同比增長 31%，高於我們對同比增長 20% 的預期。有機地，ATS 收入同比增長 12%。隨後，ATS 部門的總收入增長了 10%。

The year-over-year and sequential revenue growth in ATS was driven by continued strength in Capital Equipment, organic growth in our base Industrial business and a full quarter of revenue from PCI. We are pleased that ATS has achieved over 10% year-over-year organic revenue growth for each of the past 4 quarters.

ATS 的同比和連續收入增長是由資本設備的持續強勁、我們基礎工業業務的有機增長以及整個季度來自 PCI 的收入推動的。我們很高興 ATS 在過去四個季度中的每個季度都實現了超過 10% 的有機收入增長。

Our CCS segment continued to deliver strong top line growth, with revenue up 24% year-over-year and down 1% sequentially. Year-over-year growth was driven by strength from across our Communications and Enterprise markets, led by our HPS business.

我們的 CCS 部門繼續實現強勁的收入增長，收入同比增長 24%，環比下降 1%。在我們的 HPS 業務的引領下，我們的通信和企業市場的實力推動了同比增長。

Our HPS business delivered revenue of $362 million in the first quarter, up 81% year-over-year, led by demand strength and new program ramps with service providers, supported by continuing data center growth.

我們的 HPS 業務在第一季度實現了 3.62 億美元的收入，同比增長 81%，這主要得益於需求強勁和服務提供商的新計劃增加，以及數據中心的持續增長。

Communications revenue was up 18% year-over-year, in line with our expectations of a high-teens percentage increase, [then was] down 1% sequentially. Year-over-year growth was driven by growth in our HPS business.

通信收入同比增長 18%，符合我們對高青少年百分比增長的預期，[然後]環比下降 1%。同比增長是由我們的 HPS 業務增長推動的。

Enterprise revenue in the quarter was up 36% year-over-year, better than our expectation of a mid-teens percentage increase. Sequentially, Enterprise revenue was approximately flat. The year-over-year increase was driven by strong demand across both compute and storage customers and a less-than-anticipated seasonality impact.

本季度企業收入同比增長 36%，好於我們預期的 10% 左右增長。隨後，企業收入大致持平。同比增長是由計算和存儲客戶的強勁需求以及低於預期的季節性影響推動的。

Turning to segment margins. ATS delivered a segment margin of 5.0% in the first quarter, up 100 basis points year-over-year and down 60 basis points sequentially. The year-over-year margin increase was driven by improved operating leverage from higher volumes and productivity.

轉向段邊距。 ATS 第一季度的部門利潤率為 5.0%，同比增長 100 個基點，環比下降 60 個基點。利潤率的同比增長是由於更高的產量和生產力提高了運營槓桿。

CCS segment margin of 3.9% was up 80 basis points year-over-year and down 50 basis points sequentially. The year-over-year margin increase was driven by higher volume and stronger mix related to our HPS business.

CCS 部門利潤率為 3.9%，同比上升 80 個基點，環比下降 50 個基點。利潤率同比增長是由與我們的 HPS 業務相關的更高的銷量和更強大的組合推動的。

Moving on to some additional financial metrics. IFRS net earnings for the quarter were $22 million, or $0.17 per share, compared to net earnings of $11 million, or $0.08 per share, in the same quarter of last year and net earnings of $32 million, or $0.26 per share, last quarter.

繼續討論一些額外的財務指標。 IFRS 本季度的淨收益為 2200 萬美元，即每股 0.17 美元，而去年同期的淨收益為 1100 萬美元，即每股 0.08 美元，上一季度的淨收益為 3200 萬美元，即每股 0.26 美元。

Adjusted gross margin was 8.8%, up 20 basis points year-over-year and down 80 basis points sequentially. The year-over-year improvement was driven by strong operating leverage as a result of higher volumes and cost productivity efforts, partly offset by inefficiencies from material constraints.

調整後的毛利率為 8.8%，同比上升 20 個基點，環比下降 80 個基點。同比增長是由更高的產量和成本生產力努力導致的強勁運營槓桿推動的，部分被材料限制導致的效率低下所抵消。

Non-IFRS operating earnings were $69 million, up $26 million year-over-year and down $5 million sequentially.

非國際財務報告準則營業收入為 6900 萬美元，同比增長 2600 萬美元，環比下降 500 萬美元。

Our non-IFRS adjusted effective tax rate for the first quarter was 19%, 2% lower year-over-year but 3% higher sequentially.

我們第一季度的非 IFRS 調整後有效稅率為 19%，同比下降 2%，但環比上升 3%。

For the first quarter, non-IFRS adjusted net earnings were $48 million, up $20 million year-over-year and down $7 million sequentially.

第一季度，非國際財務報告準則調整後的淨收益為 4800 萬美元，同比增長 2000 萬美元，環比下降 700 萬美元。

First quarter non-IFRS adjusted ROIC of 13.9% was up 3.1% year-over-year and down 2.7% sequentially.

第一季度非國際財務報告準則調整後的投資回報率為 13.9%，同比增長 3.1%，環比下降 2.7%。

Moving on to working capital. Our inventory at the end of the quarter was $1.93 billion, up $781 million year-over-year and up $238 million sequentially. We continue to maintain higher inventory levels to support growth across our Lifecycle Solutions business, while also increasing strategic inventory purchases in light of the constrained supply chain environment.

轉向營運資金。我們在本季度末的庫存為 19.3 億美元，同比增長 7.81 億美元，環比增長 2.38 億美元。我們繼續保持較高的庫存水平以支持整個生命週期解決方案業務的增長，同時鑑於供應鏈環境受限，我們還增加了戰略性庫存採購。

To offset the working capital impacts of higher inventory, we have more than doubled the cash deposits from our customers year-over-year and will continue to work with them to obtain higher cash deposits when appropriate.

為了抵消庫存增加對營運資金的影響，我們將客戶的現金存款同比增加了一倍以上，並將繼續與他們合作，在適當的時候獲得更高的現金存款。

Inventory turns in the first quarter were 3.2x, down from 4.0 turns in the prior year period and down from 3.5 turns last quarter.

第一季度的庫存周轉率為 3.2 倍，低於去年同期的 4.0 週，低於上一季度的 3.5 週。

Capital expenditures for the first quarter were $16.4 million, or 1% of revenue.

第一季度的資本支出為 1640 萬美元，佔收入的 1%。

Non-IFRS free cash flow was $0.5 million in the first quarter, compared to $20.9 million in the prior year period and $35.6 million last quarter. This is our 13th consecutive quarter of delivering positive non-IFRS free cash flow.

第一季度非國際財務報告準則自由現金流為 50 萬美元，而去年同期為 2090 萬美元，上一季度為 3560 萬美元。這是我們連續第 13 個季度提供正的非 IFRS 自由現金流。

Cash cycle days were 76 in the first quarter, an improvement of 6 days year-over-year and up 1 day sequentially. Cash cycle days decreased on a year-over-year basis, as higher inventory was more than offset by higher A/P days and higher cash deposit days.

第一季度現金循環天數為 76 天，同比增加 6 天，環比增加 1 天。現金周期天數同比減少，因為較高的庫存被較高的應付賬款天數和較高的現金存款天數所抵消。

Moving on to some additional key metrics. Our cash balance at the end of the first quarter was $347 million, down $102 million year-over-year and down $47 million sequentially. Combined with approximately $600 million available under our revolver, we believe that our current liquidity of nearly $1 billion is sufficient to meet our anticipated business needs.

繼續討論一些額外的關鍵指標。我們在第一季度末的現金餘額為 3.47 億美元，同比減少 1.02 億美元，環比減少 4700 萬美元。再加上我們左輪手槍下大約 6 億美元的可用資金，我們相信我們目前近 10 億美元的流動性足以滿足我們預期的業務需求。

We ended the quarter with gross debt of $656 million, down $4 million from the previous quarter, leaving us with a net debt position of $309 million.

我們在本季度末的總債務為 6.56 億美元，比上一季度減少了 400 萬美元，淨債務為 3.09 億美元。

Our first quarter gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio was 1.8x, down 0.2 turns sequentially and up 0.4 turns from the same quarter of last year.

我們第一季度的總債務與非 IFRS 過去 12 個月調整後的 EBITDA 槓桿比率為 1.8 倍，環比下降 0.2 倍，比去年同期上升 0.4 倍。

At March 31, 2022, we were compliant with all financial covenants under our credit agreement.

截至 2022 年 3 月 31 日，我們遵守了信貸協議項下的所有財務契約。

During the quarter, we repurchased approximately 700,000 shares for cancellation, at a cost of $7.8 million. We ended the quarter with 124.1 million shares outstanding, a reduction of approximately 3% from the prior year period.

在本季度，我們以 780 萬美元的成本回購了大約 700,000 股股票進行註銷。我們在本季度末發行了 1.241 億股流通股，比去年同期減少了約 3%。

Our long-term capital allocation strategy remains consistent. We intend to return 50% of our non-IFRS free cash flow to our shareholders, while investing 50% in our business over the long term. However, our focus in 2022 as a result of our acquisition of PCI will be to reduce our net debt while continuing to be opportunistic towards share repurchases.

我們的長期資本配置策略保持一致。我們打算將 50% 的非 IFRS 自由現金流返還給我們的股東，同時將 50% 的資金長期投資於我們的業務。然而，由於我們收購 PCI，我們在 2022 年的重點將是減少我們的淨債務，同時繼續為股票回購提供機會。

Now turning to our guidance for the second quarter of 2022. We are projecting second quarter revenue to be in the range of $1.575 billion to $1.725 billion. If the midpoint of the range is achieved, revenue would be up 16% year-over-year and up 5% sequentially.

現在轉向我們對 2022 年第二季度的指導。我們預計第二季度的收入將在 15.75 億美元至 17.25 億美元之間。如果達到該範圍的中點，收入將同比增長 16%，環比增長 5%。

Second quarter non-IFRS adjusted earnings per share are expected to range from $0.38 to $0.44 per share.

第二季度非國際財務報告準則調整後的每股收益預計在每股 0.38 美元至 0.44 美元之間。

If the midpoint of our revenue and non-IFRS adjusted EPS guidance ranges are achieved, non-IFRS operating margin would be approximately 4.6%, an increase of 70 basis points year-over-year and an increase of 20 basis points sequentially.

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導範圍的中點實現，非國際財務報告準則營業利潤率將約為 4.6%，同比增長 70 個基點，環比增長 20 個基點。

Non-IFRS adjusted SG&A expense for the second quarter is expected to be in the range of $62 million to $64 million.

第二季度非國際財務報告準則調整後的 SG&A 費用預計在 6200 萬美元至 6400 萬美元之間。

We anticipate our non-IFRS adjusted effective tax rate to be approximately 20%, excluding any impacts from taxable foreign exchange or unanticipated tax settlements.

我們預計我們的非國際財務報告準則調整後的有效稅率約為 20%，不包括應稅外匯或意外稅收結算的任何影響。

Turning to our end market outlook for the second quarter of 2022. In our ATS end market, we anticipate revenue to be up in the low-20s percentage range year-over-year, driven by demand (inaudible) Capital Equipment and Industrial, including the acquisition of PCI.

談到我們對 2022 年第二季度的終端市場展望。在我們的 ATS 終端市場中，我們預計收入將同比增長 20% 的百分比範圍，這主要是受需求（聽不清）資本設備和工業的推動，包括收購PCI。

In CCS, we anticipate our Communications end market revenue to be up in the low-double-digit percentage range year-over-year, driven by strong demand from service provider customers, supported by our HPS business.

在 CCS 中，我們預計我們的通信終端市場收入將在低兩位數的百分比範圍內同比增長，這得益於服務提供商客戶的強勁需求，以及我們的 HPS 業務的支持。

In our Enterprise end market, we anticipate revenue to increase in the high-teens percentage range year-over-year, supported by [print] and servers.

在我們的企業終端市場中，我們預計收入將在 [打印] 和服務器的支持下同比增長 10% 以上。

Finally, as Rob mentioned, we are pleased to have raised our revenue outlook for 2022 to at least $6.5 billion based on our strong execution, robust demand to date and the current supply chain environment. We will continue to evaluate our 2022 outlook throughout the year, and should the supply chain environment materially improve we will update our outlook accordingly.

最後，正如 Rob 所提到的，基於我們強大的執行力、迄今為止強勁的需求和當前的供應鏈環境，我們很高興將 2022 年的收入前景提高到至少 65 億美元。我們將全年繼續評估我們的 2022 年展望，如果供應鏈環境出現實質性改善，我們將相應地更新我們的展望。

We continue to anticipate non-IFRS operating margin between 4% and 5% and are now targeting non-IFRS adjusted EPS of between $1.60 and $1.75 for the full year.

我們繼續預計非國際財務報告準則的營業利潤率在 4% 至 5% 之間，現在的目標是全年非國際財務報告準則調整後的每股收益在 1.60 美元至 1.75 美元之間。

I'll now turn the call back over to Rob for additional color on our end market and overall business outlook.

我現在將電話轉回給 Rob，為我們的終端市場和整體業務前景提供更多色彩。

Thank you, Mandeep.

謝謝你，曼迪普。

With our transformation behind us, we are looking ahead and remain committed to our long-term vision of becoming the undisputed industry leader in our high-value markets. To achieve this objective, we will continue to focus on the core pillars of our strategy.

隨著我們的轉型，我們展望未來並繼續致力於成為我們高價值市場無可爭議的行業領導者的長期願景。為實現這一目標，我們將繼續專注於我們戰略的核心支柱。

First, we will continue to grow where we are market leaders or have specific competitive advantages, what we call our Lifecycle Solutions business. We are already executing well against this strategy, as our Lifecycle Solutions business represented 67% of our total revenue at the end of the first quarter of 2022, up from 59% in the first quarter of 2021. Looking forward to the remainder of 2022, we reiterate our expectation for strong growth in Lifecycle Solutions.

首先，我們將在我們成為市場領導者或具有特定競爭優勢的地方繼續發展，我們稱之為生命週期解決方案業務。我們已經很好地執行了這一戰略，因為截至 2022 年第一季度末，我們的生命週期解決方案業務占我們總收入的 67%，高於 2021 年第一季度的 59%。展望 2022 年剩餘時間，我們重申對 Lifecycle Solutions 強勁增長的預期。

The second core pillar of our strategy is to invest for growth by continuing to enhance our capabilities across the value chain and to develop new capabilities to further expand our set of solutions for our customers. We have recently made significant organic and inorganic investments in our capabilities, including our Richardson, Texas, and Maple Grove, Minnesota, facilities as well as our acquisition of PCI. All 3 of these investments are examples of bolstering our capabilities across our Lifecycle Solutions business, and we intend to make prudent investments in our capabilities in the quarters to come.

我們戰略的第二個核心支柱是通過繼續增強我們在整個價值鏈中的能力並開發新能力以進一步擴展我們為客戶提供的解決方案集來投資增長。我們最近對我們的能力進行了重大的有機和無機投資，包括我們在德克薩斯州理查森和明尼蘇達州楓樹林的設施以及我們對 PCI 的收購。所有這三項投資都是增強我們生命週期解決方案業務能力的例子，我們打算在未來幾個季度對我們的能力進行審慎的投資。

And finally, we will continue to advance the Celestica operating system to drive excellence across the global network. Operational excellence is the cornerstone of our success and will continue to be a top priority across our global network.

最後，我們將繼續推進 Celestica 操作系統，以推動全球網絡的卓越發展。卓越運營是我們成功的基石，並將繼續成為我們全球網絡的重中之重。

Although we are confident in our future, we believe that the component shortages will continue to gate our true growth potential, as we expect the supply chain environment will remain constrained for at least the remainder of the year. We believe the demand backdrop with our customers would support significantly higher revenues in the absence of these challenges.

儘管我們對未來充滿信心，但我們相信零部件短缺將繼續限制我們真正的增長潛力，因為我們預計供應鏈環境至少在今年剩餘時間內仍將受到限制。我們相信，在沒有這些挑戰的情況下，我們客戶的需求背景將支持顯著更高的收入。

Our second quarter guidance and full year 2022 outlook have accounted for these macro conditions to the best of our ability.

我們的第二季度指引和 2022 年全年展望已盡我們所能考慮到這些宏觀狀況。

Now turning to the outlook for our segments. Our ATS segment achieved impressive growth in the first quarter as we continue to benefit from strong demand and new program growth. For 2022, as a result of anticipated continued growth, we continue to expect ATS segment revenue of approximately $2.8 billion, or more, and segment margin between 5% and 6%. If our ATS segment revenue outlook is achieved, this would represent approximately 20% growth compared to 2021.

現在轉向我們細分市場的前景。由於我們繼續受益於強勁的需求和新項目的增長，我們的 ATS 部門在第一季度取得了令人矚目的增長。 2022 年，由於預期的持續增長，我們繼續預計 ATS 部門收入約為 28 億美元或更多，部門利潤率在 5% 至 6% 之間。如果我們的 ATS 部門收入前景實現，與 2021 年相比，這將代表約 20% 的增長。

Our Capital Equipment business continued its impressive trajectory in Q1 2022, driven by market share gains, new wins and robust secular tailwinds. Wafer fabrication equipment demand is strong, and we continue to believe that these dynamics support additional runway for continued growth.

在市場份額增長、新的勝利和強勁的長期順風的推動下，我們的資本設備業務在 2022 年第一季度繼續其令人印象深刻的發展軌跡。晶圓製造設備的需求強勁，我們仍然相信這些動態會為持續增長提供額外的跑道。

Our Industrial business is expected to continue to be a large contributor to our growth this year. We are currently well positioned with 6 leading EV charger OEMs and are also building a strong presence in the energy storage market. We have already begun significant ramps in this space, which are anticipated to continue throughout 2022 and beyond. Additionally, our acquisition of PCI has already begun to yield cross-selling synergies as we work together to deliver and expand our range of capabilities to our customers.

我們的工業業務預計將繼續為我們今年的增長做出重要貢獻。我們目前與 6 家領先的 EV 充電器 OEM 處於有利地位，並且還在儲能市場建立強大的影響力。我們已經開始在這個領域進行重大升級，預計將在 2022 年及以後繼續。此外，我們對 PCI 的收購已經開始產生交叉銷售協同效應，因為我們共同努力為客戶提供和擴展我們的能力範圍。

The recovery in the A&D market continues, as we are experiencing an increase in demand from commercial aerospace. As stated in previous calls, given A&D was the largest component of our ATS segment prior to the pandemic, we believe there is significant runway for growth as the A&D market continues its recovery. Moreover, new wins and logos in our defense, space and UAV businesses are expected to drive even further growth in A&D.

隨著商業航空航天需求的增加，A&D 市場的複蘇仍在繼續。正如之前的電話會議所述，鑑於 A&D 是大流行之前我們 ATS 部門的最大組成部分，我們相信隨著 A&D 市場繼續復甦，增長空間很大。此外，我們的國防、太空和無人機業務的新勝利和標誌預計將推動 A&D 的進一步增長。

We believe that our HealthTech business is a very attractive business with significant growth opportunities with an accretive margin profile. Our expertise across a wide array of end markets, extensive site certifications and automation provide a foundation for future growth in existing and new markets.

我們相信，我們的健康科技業務是一項非常有吸引力的業務，具有顯著的增長機會和可增加的利潤率。我們在各種終端市場的專業知識、廣泛的現場認證和自動化為現有市場和新市場的未來增長奠定了基礎。

Now turning to CCS. Our CCS segment continues to achieve excellent results, growing 24% year-over-year. Our HPS business grew 81% year-to-year, driven by service provider and communications customers. Moreover, our opportunity funnel and general market outlook remains very positive in HPS.

現在轉向 CCS。我們的 CCS 部門繼續取得優異成績，同比增長 24%。在服務提供商和通信客戶的推動下，我們的 HPS 業務同比增長 81%。此外，我們的機會漏斗和總體市場前景對 HPS 仍然非常樂觀。

In our Communications end market, demand is expected to remain strong throughout the year, largely driven by networking customers.

在我們的通信終端市場，預計全年需求將保持強勁，主要受網絡客戶的推動。

In our Enterprise end market, the strong demand we are seeing in storage and compute is expected to continue in the second quarter.

在我們的企業終端市場，我們在存儲和計算方面看到的強勁需求預計將在第二季度繼續。

Today, I can proudly say we are stronger than ever. We are a more diversified, yet focused, company, operating in markets with strong growth profiles and where we have a competitive advantage. We are built to win, and we have a long-term strategy in place intended to ensure that we continue our trajectory.

今天，我可以自豪地說我們比以往任何時候都更強大。我們是一家更加多元化但專注的公司，在具有強勁增長前景和我們具有競爭優勢的市場中運營。我們為勝利而生，我們制定了長期戰略，旨在確保我們繼續前進。

This progress could not have been accomplished without the hard work and perseverance of our employees. I want to thank all of our employees for their continued support and commitment, enabling us to achieve our goals.

這一進步離不開我們員工的辛勤工作和堅持不懈的努力。我要感謝我們所有員工的持續支持和承諾，使我們能夠實現目標。

And with that, I would now like to turn the call over to the Operator for Q&A.

有了這個，我現在想把電話轉給接線員進行問答。

(Operator Instructions) Our first question comes from Ruplu Bhattacharya, from Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Ruplu Bhattacharya。

Is there a way to quantify what the revised full year guidance on the top line and bottom line assumes in terms of disruption from the supply chain issues as well as from the war in Ukraine? What have you assumed in terms of headwind, both on the top line and on the bottom line?

有沒有辦法量化修訂後的全年營收和利潤指引在供應鏈問題和烏克蘭戰爭中斷方面的假設？您對頂線和底線的逆風有什麼假設？

Ruplu, Mandeep here. It's a tough one to answer, in the sense that, as you know, it's dynamic and it changes quarter-to-quarter. As you saw with Q1, we ended up beating our guidance range because we were able to execute very well in the supply environment. For the guidance that we've provided into Q2, we are making an assumption right now that the supply environment is going to be relatively consistent to where it is today. So really, the status quo. And we're holding that assumption forward for the back half of the year.

魯普魯，曼迪普在這裡。這是一個很難回答的問題，從某種意義上說，如您所知，它是動態的，並且每季度都會發生變化。正如您在第一季度看到的那樣，我們最終超出了我們的指導範圍，因為我們能夠在供應環境中執行得非常好。對於我們在第二季度提供的指導，我們現在假設供應環境將與今天相對一致。所以真的，現狀。我們將在今年下半年保持這一假設。

To your specific point on the Ukraine and Russia, it has had a very minimal impact on the company to date. And so we're expecting something similar going into the back half of the year because we know what suppliers are coming out of the Ukraine and we know which ones of our customers have programs that are exposed to the Ukraine, and those assumptions are consistent.

就您對烏克蘭和俄羅斯的具體觀點而言，迄今為止，它對公司的影響非常小。因此，我們預計今年下半年會出現類似情況，因為我們知道哪些供應商來自烏克蘭，我們知道我們的哪些客戶有涉及烏克蘭的項目，並且這些假設是一致的。

Okay. Got it. Can I ask -- it looks like inventory was up 14% sequentially. And now given the higher revenue growth assumptions for the year, how should we think about cash conversion cycle and free cash flow for the full year?

好的。知道了。我可以問 - 看起來庫存連續增長了 14%。現在考慮到今年更高的收入增長假設，我們應該如何考慮全年的現金轉換週期和自由現金流？

So inventory is up this year, as you mentioned. Deposits are also up. Deposits are up almost 150% year-over-year. So it is helping to fund some of the build.

因此，正如您所提到的，今年的庫存增加了。存款也漲了。存款同比增長近 150%。因此，它有助於為一些建設提供資金。

We really view inventory right now as an asset. Our ability to secure this inventory is leading us to be able to fulfill demand from our customers, which is very robust and continuing through the year. We anticipate that inventory is likely going to remain elevated through 2022.

我們現在確實將庫存視為資產。我們確保這種庫存的能力使我們能夠滿足客戶的需求，這種需求非常強勁，並且持續到一年。我們預計到 2022 年庫存可能會保持高位。

We were targeting $100 million or more of free cash flow when we were indicating $6.3 billion of revenue for the year. Now that we're seeing our ability to fulfill more demand and that we've raised our revenue outlook, we likely will be less than $100 million for the year, but we are still targeting positive free cash flow for Q2 through to Q4.

當我們指出今年的收入為 63 億美元時，我們的目標是實現 1 億美元或更多的自由現金流。現在我們看到了滿足更多需求的能力並且我們提高了收入前景，我們今年的收入可能不到 1 億美元，但我們仍將第二季度至第四季度的自由現金流設為正數。

Got it. And if I can just sneak one more in. The CCS segment operating margin was again higher than the 2% to 3% long-term range. What are some of the drivers for this? And how should we think about that over the next couple of quarters?

知道了。如果我可以再偷偷摸摸的話。CCS 部門的營業利潤率再次高於 2% 到 3% 的長期範圍。有哪些驅動因素？在接下來的幾個季度中，我們應該如何考慮這一點？

Most simplistically, I would just point to HPS. HPS, as you know, grew 81% year-over-year in the first quarter. The demand profile continues to be very strong. There's a very good level of adoption of the products that we have brought to market. And so that will continue through 2022.

最簡單地說，我只想指出 HPS。如您所知，HPS 在第一季度同比增長 81%。需求狀況繼續非常強勁。我們推向市場的產品的採用率非常高。因此，這種情況將持續到 2022 年。

Overall, what I would say is that HPS is accretive to CCS margins. It's also accretive to the company margins. And so as HPS continues to be a larger part of the pie, we do expect that we have margin benefits in CCS.

總的來說，我想說的是 HPS 可以增加 CCS 的利潤。這也增加了公司的利潤。因此，隨著 HPS 繼續佔據更大份額，我們確實希望我們在 CCS 中獲得利潤。

Great. Thank you for all the details, and congrats on the strong execution in the quarter.

偉大的。感謝您提供所有詳細信息，並祝賀本季度的強勁執行。

Our next question comes from Thanos Moschopoulos, from BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Thanos Moschopoulos。

Supply chain had less of a top line impact than in Q4. And so just in terms of that sequential improvement, does that reflect better component availability? Or does that have more to do with mix or with the mitigating actions that you guys were able to take?

與第四季度相比，供應鏈對收入的影響較小。因此，就順序改進而言，這是否反映了更好的組件可用性？還是這與混合或你們能夠採取的緩解措施有更多關係？

Thanos, as with COVID, we're becoming pretty adept at managing through supply chain constraints. I would say the overall macro supply chain environment is still quite constrained, and it's similar in dynamic relative to Q4. Lead times are still extended. We're seeing some increase in [passives]. That being said, we've been navigating through them quite well, and things are pretty much consistent with last quarter.

滅霸與 COVID 一樣，我們正變得非常擅長通過供應鏈限制進行管理。我想說整體宏觀供應鏈環境仍然受到很大限制，並且與第四季度相比動態相似。交貨時間仍在延長。我們看到[被動]有所增加。話雖如此，我們一直在很好地瀏覽它們，而且情況與上個季度幾乎一致。

And our expectation right now, Thanos, is that that will continue through the year. As Rob mentioned, when we look at the constrained environment within semiconductors, as an example, lead times right now are relatively consistent in the first quarter as they were with the fourth quarter. Where we are seeing some additional dynamics is on the [passives] side. Capacitors and resistors lead times are extending. But for the most part, we'd say that the environment is relatively consistent.

我們現在的期望是，滅霸，這將持續到這一年。正如 Rob 所提到的，當我們以半導體內部的受限環境為例時，第一季度的交貨時間與第四季度相對一致。我們在[被動]方面看到了一些額外的動態。電容器和電阻器的交貨時間正在延長。但在大多數情況下，我們會說環境是相對一致的。

And how have the lockdowns in China impacted the business, if at all? I mean, I know you have a presence there. Is there any incremental impact from the lockdowns?

如果有的話，中國的封鎖對業務有何影響？我的意思是，我知道你在那裡。封鎖是否有任何增量影響？

To date, the impact to operations has been immaterial. Our attendance at our sites is in the 90% range in the China sites. But we are keeping a watchful eye on our suppliers, especially as it relates to inbound and outbound logistics. It is a dynamic situation, Thanos, but we believe that any of the risks are factored into our guidance.

迄今為止，對運營的影響並不重大。我們在我們的站點的出席率在中國站點的 90% 範圍內。但我們正在密切關注我們的供應商，尤其是涉及到入站和出站物流的供應商。這是一個動態的情況，滅霸，但我們相信任何風險都已納入我們的指導。

And then finally, (inaudible) report suggesting that the average lead time on semi equipment is now something like 18 months. Just curious if that's consistent with what you're seeing.

最後，（聽不清）報告表明，半導體設備的平均交貨時間現在大約是 18 個月。只是好奇這是否與您所看到的一致。

It is. And I would say our customers' backlogs are at record highs. The visibility that we have into our order book has increased, which is helping us do effective planning, and also (inaudible) material shorts as we continue to post impressive growth out of that business.

這是。我會說我們客戶的積壓訂單處於歷史最高水平。我們在訂單簿中的可見度有所提高，這有助於我們進行有效的計劃，並且（聽不清）材料短缺，因為我們繼續在該業務中取得令人矚目的增長。

Our next question comes from Jim Suva, from Citigroup.

我們的下一個問題來自花旗集團的 Jim Suva。

If I do my math right, it kind of looks like your revenues this year are going to be up ballpark 15% or so, if that's correct. Can you help us just dissect it about organic versus kind of, I believe the PCI acquisition is going to be fully folded in this year, so kind of organic versus total? Then I'll probably have a follow-up.

如果我的數學計算正確，看起來你今年的收入將增長 15% 左右，如果這是正確的話。你能幫我們剖析一下有機還是那種，我相信 PCI 收購將在今年完全折疊，那麼有機還是整體？然後我可能會有後續行動。

Jim, when we closed the PCI acquisition we had indicated that revenue was being targeted in about the $325 million range. And so when we say $6,500 million, if you back that out that's probably about 5% of the growth. So the 15% grows closer to 10% on an organic basis.

吉姆，當我們完成對 PCI 的收購時，我們曾表示收入目標在 3.25 億美元左右。因此，當我們說 65 億美元時，如果你支持它，那可能是增長的 5% 左右。因此，這 15% 在有機基礎上增長接近 10%。

Great. And is that PCI revenue trajectory or plan still consistent? I didn't know if it's kind of changed a little bit in the past few months or so.

偉大的。 PCI 收入軌跡或計劃是否仍然一致？我不知道在過去的幾個月左右它是否有點改變。

No. And if I can maybe talk about PCI for a moment, we're very pleased with how the business is performing. The revenue is on track to the business case. In fact, it's slightly exceeding it right now. We're seeing strong demand across their customer group. And joining up with Celestica's supply chain expertise, we're helping them also clear a lot of material shorts.

不。如果我可以談談 PCI，我們對業務的表現非常滿意。收入符合商業案例。事實上，它現在略微超過它。我們在他們的客戶群中看到了強勁的需求。結合 Celestica 的供應鏈專業知識，我們還幫助他們清理大量材料短缺。

We're also really pleased from an integration perspective. Controls are integrated, but we're also starting to see some benefits on the synergy side. We've booked our first synergistic win between PCI and Celestica before it was PCI, a Celestica customer that is going into a PCI facility. And we have a very long list of other targets that we're working to do the same thing on.

從集成的角度來看，我們也非常高興。控件是集成的，但我們也開始看到協同方面的一些好處。我們已經預訂了 PCI 和 Celestica 之間的第一次協同勝利，然後是 PCI，Celestica 的客戶正在進入 PCI 設施。我們有一長串其他目標，我們正在努力做同樣的事情。

Great. And then my last question is, you mentioned more customer deposits and inventory. Obviously, it seems like you'd rather have more inventory now rather than less. Is this structural in nature, where the just-in-time model is kind of changing? And do you think there's going to be a [permanent built-in] of deposits in more inventory? I'm just kind of curious if this is kind of a structural change, not to you but maybe the whole industry.

偉大的。然後我的最後一個問題是，您提到了更多的客戶存款和庫存。顯然，您現在似乎寧願擁有更多庫存而不是更少。這在本質上是結構性的嗎，即時模型正在發生變化？你認為會有更多庫存中的[永久內置]存款嗎？我只是有點好奇這是否是一種結構性變化，不是對你，而是對整個行業。

I'll start off and I'll let Mandeep finish, Jim. I would say in today's environment inventory is more of an asset than anything else. It enables us to grow, enables us to gain share, either protect or gain share. And we've been carefully working with our customers in partnership with them to make sure we get cash deposits that protect their growth and also to help protect and/or grow our market share. So it's somewhat of a win-win when it comes to that.

我會開始，我會讓曼迪普結束，吉姆。我想說在今天的環境中，庫存比其他任何東西都更像是一種資產。它使我們能夠成長，使我們能夠獲得份額，無論是保護還是獲得份額。我們一直在與客戶密切合作，與他們合作，確保我們獲得現金存款，以保護他們的成長，並幫助保護和/或增加我們的市場份額。因此，就這一點而言，這在某種程度上是雙贏的。

That being said, it is still somewhat of a very dynamic supply chain environment, and we do get caught from a timing perspective when we think we're going to be able to ship some product and then it gets stuck for a little bit of time until we can clear the last-minute shortages.

話雖如此，它仍然是一個非常動態的供應鏈環境，從時間的角度來看，當我們認為我們將能夠運送一些產品然後它會卡住一段時間時，我們確實會陷入困境直到我們可以清除最後一分鐘的短缺。

So there's still inefficiency in there, but the way we're looking at it is we're managing it fairly well relative to everyone else and as proven by our strong growth over the last several quarters.

所以那裡仍然效率低下，但我們看待它的方式是，相對於其他所有人，我們管理得相當好，過去幾個季度的強勁增長證明了這一點。

Jim, maybe if I was to point to something structural or that could be a structural change is we are seeing much higher levels of visibility from our customers as we go through this year and, frankly, into next year. In some cases, customers are giving us visibility on what their demand profile is 18 months or even more out. And they're backing it up contractually, where they want us to bring in the material to support the demand outlook that they are providing. And they know that if that does not materialize that they're ultimately on the hook for the inventory. We haven't traditionally seen order windows go out that far. And so it will be interesting to see as the supply chain environment normalizes whether that's a new norm.

吉姆，如果我要指出一些結構性的或者可能是結構性變化的東西，那麼我們在今年以及坦率地說，到明年的過程中看到客戶的知名度要高得多。在某些情況下，客戶可以讓我們了解他們 18 個月甚至更長時間的需求情況。他們以合同方式支持它，他們希望我們帶來材料以支持他們提供的需求前景。他們知道，如果這沒有實現，他們最終將陷入庫存的困境。傳統上，我們還沒有看到訂單窗口走出那麼遠。因此，隨著供應鏈環境正常化這是否是一種新規範，這將是一件有趣的事情。

Okay. Then my last question is, it looks like you guys took your revenue guidance up higher and then you, what would be the right word, narrowed the EPS range by taking the lower end up, but you didn't change the higher end. Is that just due to, like, more shipping costs and logistic costs about why you wouldn't also adjust the higher end of earnings?

好的。然後我的最後一個問題是，看起來你們把你的收入指導提高了，然後你，什麼是正確的詞，通過提高低端來縮小每股收益範圍，但你沒有改變高端。這僅僅是因為更多的運輸成本和物流成本導致你不調整較高的收益嗎？

No, it's just a reflection of the dynamic environment that we're in right now. So to your point, we took it to $6.5 billion, or more, and we tightened the range from $1.55 to $1.75 to $1.60-$1.75. What we're trying to say is that extra $200 million of revenue we know is going to yield, at minimum, an additional $0.05. And is there an opportunity to go above the range? It'll probably be tied to how much more revenue we could do over $6.5 billion.

不，這只是我們現在所處的動態環境的反映。所以就你的觀點而言，我們將其提高到 65 億美元或更多，我們將範圍從 1.55 美元收窄到 1.75 美元到 1.60 美元到 1.75 美元。我們想說的是，我們知道額外的 2 億美元收入將至少產生 0.05 美元的額外收入。是否有機會超越該範圍？這可能與我們可以在 65 億美元以上的收入中增加多少有關。

Our next question comes from Paul Treiber, from RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場的 Paul Treiber。

Obviously, the demand environment that you're seeing is quite strong right now. Just hoping that you could provide any indication that you may have on the sustainability of demand. I mean, there's a lot of macro concerns beyond just technology, but across the board. Have you seen any signs of customers either reducing the extended forecast or pulling purchase orders, anything that would suggest some sign of conservatism for the second half of the year or even in 2023?

顯然，您現在看到的需求環境非常強勁。只是希望你能提供任何關於需求可持續性的跡象。我的意思是，除了技術之外，還有很多宏觀問題，而且是全面的。您是否看到任何跡象表明客戶降低了延長的預測或取消了採購訂單，是否有任何跡象表明下半年甚至 2023 年有一些保守的跡象？

Paul, that's certainly something that's at the top of our minds to be wareful of. But frankly, across our markets we have seen no signs of that. Within ATS, we see record backlogs, very strong visibility. The same with Industrial, same with HealthTech and the same with Aerospace & Defense. And within our CCS business, specifically, our HPS business. As Mandeep mentioned earlier, we have very strong visibility, with firm POs for a really good period of time relative to prior year. So we have seen no softening to date.

保羅，這當然是我們最需要提防的事情。但坦率地說，在我們的市場中，我們沒有看到任何跡象。在 ATS 中，我們看到了創紀錄的積壓工作，可見度非常高。工業也是如此，健康科技也是如此，航空航天與國防也是如此。在我們的 CCS 業務中，特別是我們的 HPS 業務。正如 Mandeep 之前提到的，我們有非常強的知名度，與去年相比，我們在很長一段時間內都有堅定的採購訂單。因此，迄今為止我們沒有看到任何軟化。

And Paul, maybe what I would just add is if we -- as a reminder from the discussion we had during the Investor Day about a month ago or so, what we had talked about was our confidence in the company's portfolio is really driven by the mix of the portfolio.

保羅，也許我要補充的是，如果我們 - 作為我們在大約一個月前投資者日的討論中的提醒，我們所談論的是我們對公司投資組合的信心實際上是由組合的組合。

So today, in Q1, 67%, or let's call it 2/3, of our revenue came from Lifecycle Solutions, which you know is built between ATS and HPS. On the ATS side, our long-term view of that market has not changed. We do believe that there are fundamentals in place which will grow the ATS markets and our share of it at 10% or more over the long term.

所以今天，在第一季度，我們 67% 或我們稱之為 2/3 的收入來自生命週期解決方案，你知道它是在 ATS 和 HPS 之間建立的。在 ATS 方面，我們對該市場的長期看法沒有改變。我們確實相信，從長遠來看，ATS 市場和我們在其中的份額將增長 10% 或更多的基本面已經到位。

And then when we look at HPS with the traction that we have right now and the amount of revenue share that we've been able to take, we also believe that that business has the ability to grow at 10% or more over the long term.

然後，當我們以我們現在擁有的牽引力和我們能夠獲得的收入份額來看待 HPS 時，我們也相信該業務有能力在長期內增長 10% 或更多.

Clearly, it's playing out in 2022. And right now, we continue to feel confident going into '23 that Lifecycle Solutions can grow double digits.

顯然，它會在 2022 年上演。現在，我們繼續對進入 23 世紀充滿信心，Lifecycle Solutions 可以實現兩位數的增長。

That's helpful. A bit of a follow-up to Jim's question on the cash deposits and the structural change. Would you say, all else equal, that the larger amount of cash deposits is creating perhaps stickier demand or at least better visibility to future demand?

這很有幫助。對吉姆關於現金存款和結構變化的問題的一點跟進。您是否會說，在其他條件相同的情況下，更多的現金存款可能會創造出更具粘性的需求，或者至少可以更好地了解未來的需求？

Yes. Because what we, going to one of the remarks I made, when a customer is giving us an order outlook that can go for 12 to 18 to 24 months and they want us to bring in inventory that they may not be able to consume in the next 6 to 12 months, there's a funding equation that we have to work out with the customer, and deposits is a lever that we go to. Because they are asking us, "Please bring in the inventory, please secure it, because I want to make sure that you can [square my kit] a year from now."

是的。因為我們，談到我所說的一個評論，當客戶給我們一個可以持續 12 到 18 到 24 個月的訂單前景並且他們希望我們引入他們可能無法消費的庫存時在接下來的 6 到 12 個月內，我們必須與客戶一起制定一個資金等式，而存款是我們的一個槓桿。因為他們在問我們，“請把庫存帶進來，請妥善保管，因為我想確保一年後你可以[整理我的裝備]。”

But deposits aren't the only thing that we turn to. We also, in some cases, get additional pricing from customers. And in some cases, we get early payments on receivable.

但存款並不是我們唯一求助的東西。在某些情況下，我們還會從客戶那裡獲得額外的定價。在某些情況下，我們會提前收到應收款項。

And at the end of the day, our approach to commercial accounts is the same as it's been for many years, which is we're an ROIC-driven company. And so we want to ensure that if we're bringing in excess inventory, that is more than covered either through other offsets in working capital or through pricing.

歸根結底，我們對商業賬戶的處理方式與多年來相同，這就是我們是一家由 ROIC 驅動的公司。因此，我們希望確保，如果我們引入過多的庫存，那麼無論是通過營運資本的其他抵消還是通過定價，都可以彌補這一點。

And Paul, I would just add, back to your first question, the increased cash deposit is really a proxy for the confidence that our customers have in their demand profile. And the fact that it's up on a year-over-year basis is a testament to that.

保羅，我想補充一下，回到你的第一個問題，增加的現金存款實際上代表了我們的客戶對他們的需求狀況的信心。它逐年上升的事實證明了這一點。

(Operator Instructions) Our next question comes from Todd Coupland, from CIBC.

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

I also wanted to ask about the demand environment, but more from a strategic perspective. When you see this extended supply chain that keeps getting pushed out in terms of relief, you have geopolitical issues, does that make you rethink what kind of footprint is appropriate globally and whether or not you should have more production in North America? Just your thoughts on that.

我還想從戰略角度詢問需求環境。當你看到這條延伸的供應鏈在救濟方面不斷被推出時，你就會遇到地緣政治問題，這是否會讓你重新思考什麼樣的足跡在全球範圍內是合適的，以及是否應該在北美增加生產？只是你對此的想法。

Good question. The regionalization trend, we've seen present here for over a year-plus, and we've been working with our customers to help improve the resiliency of their supply chain. And we have a very diversified footprint. And as we think about helping customers create that contingency plans and resiliency plans across their supply chain, it has been shifting some of our capacity into the Americas, if you will, Mexico and North America, outside of Asia. And we're constantly kind of looking at our network strategy to see where we need to add capacity and/or take capacity out. Right now, we feel very comfortable in where we're at. That being said, we probably will need to look to make incremental investments if we continue on this impressive growth profile that we have been over the last several quarters.

好問題。區域化趨勢，我們已經在這裡看到了一年多，我們一直在與我們的客戶合作，以幫助提高他們供應鏈的彈性。我們擁有非常多元化的足跡。當我們考慮幫助客戶在他們的供應鏈中製定應急計劃和彈性計劃時，它已經將我們的一些產能轉移到了美洲，如果你願意的話，還有墨西哥和北美，以及亞洲以外的地方。我們一直在關注我們的網絡戰略，看看我們需要在哪裡增加容量和/或減少容量。現在，我們對自己所處的位置感到非常自在。話雖如此，如果我們繼續保持過去幾個季度的令人印象深刻的增長態勢，我們可能需要尋求增加投資。

Right. And if that trend continues, how does that impact the footprint that you have in Asia-Pac at the moment? Does that -- can you imagine that getting downsized? Or are you making choices on different countries?

正確的。如果這種趨勢繼續下去，這將如何影響您目前在亞太地區的足跡？那 - 你能想像縮小規模嗎？還是您在不同國家/地區做出選擇？

No, at this stage of the game we don't see any downsizing in the cards. We really see more just capacity expansion, specifically, probably in Mexico and also in other parts of Asia. But in terms of contraction, based on the growth that we see we don't see that in the cards, at least in the near to midterm.

不，在遊戲的這個階段，我們看不到牌的任何縮小。我們確實看到更多只是產能擴張，特別是可能在墨西哥和亞洲其他地區。但就收縮而言，基於我們看到的增長，我們看不到這一點，至少在近期和中期是這樣。

Todd, what I would say is that we continue to see customers have a strong desire to be in Southeast Asia. And because of our dominant footprint in Thailand and Malaysia, we're able to satisfy the demand. We're seeing customers, some of those customers who want to be in Southeast Asia also have a dual-node strategy. So they also want similar programs run out of North America. And so we're seeing a lot of those go towards Mexico. But the footprint we have right now, the feedback we're getting is it's quite strategic for our customers.

托德，我想說的是，我們繼續看到客戶有強烈的進入東南亞的願望。由於我們在泰國和馬來西亞的主要足跡，我們能夠滿足需求。我們看到客戶，其中一些想要進入東南亞的客戶也有雙節點策略。所以他們也希望類似的項目在北美跑完。所以我們看到很多人去墨西哥。但是我們現在擁有的足跡，我們得到的反饋對我們的客戶來說非常具有戰略意義。

Right. And just to update us on sort of the cost advantage. So you would see Thailand and Malaysia at a material cost advantage over Mexico in the current environment.

正確的。只是為了讓我們了解一些成本優勢。因此，在當前環境下，您會看到泰國和馬來西亞相對於墨西哥具有物質成本優勢。

To some extent, from a labor perspective, yes, there are differences. But what I would also say is, historically, what we would see is also parts going back and forth over the ocean. And so it's interesting that if you go beyond just labor cost and you look at landed cost and total cost of ownership, in some situations, depending on where the customer's product is going, it actually sometimes could be on par or even cheaper to do it in North America.

在某種程度上，從勞工的角度來看，是的，是有區別的。但我還要說的是，從歷史上看，我們所看到的也是在海洋上來回移動的部分。因此，有趣的是，如果您不僅僅考慮勞動力成本，還考慮到岸成本和總擁有成本，在某些情況下，取決於客戶產品的去向，實際上有時可能會達到同等水平甚至更便宜在北美。

I would also add that our customers, if there is a cost difference between various regions, our customers are more than willing to understand the differences and pay for those differences in the name of creating more resiliency in their supply chain.

我還要補充一點，我們的客戶，如果不同地區之間存在成本差異，我們的客戶非常願意了解差異並以在他們的供應鏈中創造更多彈性的名義為這些差異付費。

That makes sense. And then just last question for me. Aerospace has been on a slow recovery. You talked about it being, you having muted expectations for that. Yet, it seems like you're hinting it's getting better. Is that a change? Or is that -- are you still being fairly conservative about the recovery there?

那講得通。然後是我的最後一個問題。航空航天一直在緩慢復甦。你談到了它，你對此的期望很低。然而，你似乎在暗示它正在變得更好。那是變化嗎？或者是——你對那裡的複蘇仍然相當保守嗎？

I think in Aerospace we're expecting a stronger second half versus first half. I would say it's a dynamic of commercial versus defense. On commercial, we see a steady recovery, getting better sequentially quarter-to-quarter-to-quarter. And on the defense side, we have some new programs that we've won that will be ramping towards the back half of the year.

我認為在航空航天領域，我們預計下半年會比上半年更強勁。我會說這是商業與防禦的動態。在商業方面，我們看到了穩定的複蘇，逐季改善。而在防守端，我們有一些我們贏得的新項目將在今年下半年開始。

When you go into segments, business (inaudible) is very hot right now. It has been. And commercial aerospace, I think in North America air traffic is recovering. In China and Europe, it's lagging a little bit relative to North America, but I think it's steady growth.

當您進入細分市場時，業務（聽不清）現在非常火爆。它一直。而商業航空，我認為北美的空中交通正在復蘇。在中國和歐洲，它相對於北美有點落後，但我認為它是穩定的增長。

And then what we'd also say, though, is we're pleased with the sequential improvement that we're seeing in A&D. It probably won't get back to full recovery until 2024, though. And so as Capital Equipment over time may moderate, we do believe that we have an offset that can happen in the outer years with A&D.

不過，我們還要說的是，我們對在 A&D 中看到的連續改進感到滿意。不過，它可能要到 2024 年才能完全恢復。因此，隨著時間的推移，資本設備可能會緩和，我們確實相信我們有可能在 A&D 的外部年份發生抵消。

Our next question comes from Robert Young, from Canaccord Genuity.

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

If I could just continue that line of questioning on the recovery you think might happen in A&D in the second half, what kind of implication would that have on the margins? Or is it at a stage where it's still a drag to that 5% to 6% margin structure in ATS?

如果我可以繼續對您認為下半年 A&D 可能發生的複蘇提出質疑，那麼這會對邊緣產生什麼樣的影響？還是處於仍然拖累 ATS 5% 到 6% 保證金結構的階段？

It's a drag today, but we expect it to hold its own as we get towards the back end of the year. So right now, as you know, Rob, A&D has a very heavy fixed-cost structure. And we purposely decided to hold on to capabilities during this downturn. We do need some more revenue growth in order to get that business to margins that we would normally see.

今天這是一個拖累，但我們預計它會在我們接近年底時保持自己的狀態。所以現在，如你所知，Rob，A&D 有一個非常沉重的固定成本結構。我們特意決定在這次低迷時期保持能力。我們確實需要更多的收入增長才能使該業務達到我們通常會看到的利潤率。

Our expectations for ATS in total is that we will see some sequential margin improvement as we go through the year. As you would have seen, we did 5.0% in the first quarter. We are still targeting to be in the 5% to 6% range, and we think that we can improve as we go through the year.

我們對 ATS 的總體預期是，隨著這一年的發展，我們將看到一些連續的利潤率改善。正如你所看到的，我們在第一季度做了 5.0%。我們的目標仍然是在 5% 到 6% 的範圍內，並且我們認為我們可以在這一年中有所改進。

Okay. And then my second question is around a comment you made, I think, last quarter about higher renewal rates because of the difficulty that your customers are seeing transferring work between vendors in a more difficult supply chain. Is that still a factor? And is there a pricing dynamic or benefit that comes along with that?

好的。然後我的第二個問題是關於你在上個季度發表的關於更高續訂率的評論，因為你的客戶很難在更困難的供應鏈中看到供應商之間的工作轉移。這仍然是一個因素嗎？是否有隨之而來的定價動態或好處？

Yes, to both questions, Rob. It is still a factor. When a customer thinks about switching ponies, if you will, it's very hard for a new supplier, if you will, or provider to establish (inaudible) supply chain. So it is creating stickier relationships. And to some extent, it does create pricing advantage, but I wouldn't say that's a main driver.

是的，對於這兩個問題，Rob。這仍然是一個因素。當客戶考慮更換小馬時，如果您願意，新供應商（如果您願意）或供應商很難建立（聽不清）供應鏈。所以它正在創造更粘的關係。在某種程度上，它確實創造了定價優勢，但我不會說這是主要驅動力。

And Rob, that stickiness is reflective of the supply chain environment. But frankly, a lot of that stickiness would be there without. It's the reason that we focus on Lifecycle Solutions. There are very high barriers to entry. You need a lot of investment for a number of years in order to get to a certain level of capabilities. And so even in a normalized environment, we think 2/3 of the company, which is Lifecycle Solutions, that's stickier revenue than traditional EMS.

Rob，這種粘性反映了供應鏈環境。但坦率地說，沒有很多粘性。這就是我們專注於生命週期解決方案的原因。進入門檻非常高。您需要多年的大量投資才能達到一定的能力水平。因此，即使在正常化的環境中，我們認為公司 2/3 的生命週期解決方案的收入比傳統的 EMS 更具粘性。

Okay. And last question for me. Just it seems to me in my conversations that the confidence in the semi cap cycle is weakening a little bit, but you still seem to be very confident on your visibility in 2022. Just curious, are you seeing any signs that the visibility or the durability of the semi cap cycle you're benefiting from, is it 2022 and 2023? Is there any color on how long you think it may last? If you have any confidence to give any kind of outlook there, that would be helpful.

好的。最後一個問題。在我看來，在我的談話中，對半帽週期的信心正在減弱一點，但你似乎仍然對 2022 年的能見度非常有信心。只是好奇，你是否看到任何跡象表明能見度或持久性在您受益的半帽週期中，是 2022 年和 2023 年嗎？你認為它可以持續多長時間有什麼顏色嗎？如果您有信心在那裡發表任何看法，那將很有幫助。

We're very confident in the Capital Equipment business. As I mentioned earlier, the backlogs with our customers are very high. The visibility that they're giving us is also very good. We're also growing faster than the market, driven by our high-level assembly capability, our diversified footprint, our vertical integration that we have. So overall, we're very bullish on our Capital Equipment, at least this year and also going into next year as well.

我們對資本設備業務非常有信心。正如我之前提到的，我們客戶的積壓工作非常高。他們給我們的能見度也很好。我們的增長速度也快於市場，這得益於我們的高水平組裝能力、多元化的足跡以及我們擁有的垂直整合。所以總的來說，我們非常看好我們的資本設備，至少今年和明年也是如此。

UBS' forecast basically says for the entire industry, a strong '22, flattening out a little bit in '23. But again, our outlook is that we're going to be growing faster than the market based on some of those reasons I mentioned.

瑞銀的預測基本上表明整個行業在 22 年表現強勁，在 23 年略微趨於平緩。但同樣，我們的前景是，基於我提到的一些原因，我們的增長速度將超過市場。

And Rob, when you're hearing remarks from others that the semi cycle may be slowing a little bit, as you know, we produce equipment in the wafer fab equipment space. Both memory and equipment that was going into logic/foundry were on fire last year. Memory has started to plateau in 2022, but the equipment that's going into logic and foundry continues to be very high in terms of demand. And so that's why 2022 still has good overall growth characteristics. And then that logic/foundry growth in 2022, that may moderate as we go into 2023, but there's still some very good fundamentals in place for the remainder of this year.

Rob，當你聽到其他人說半週期可能會稍微放緩時，如你所知，我們在晶圓廠設備領域生產設備。去年進入邏輯/代工廠的內存和設備都著火了。內存在 2022 年開始趨於平穩，但進入邏輯和代工的設備在需求方面仍然非常高。這就是為什麼 2022 年仍然具有良好的整體增長特徵的原因。然後是 2022 年的邏輯/代工增長，隨著我們進入 2023 年，這種增長可能會放緩，但今年剩餘時間仍有一些非常好的基本面。

Great. That's helpful. And then the other side of the Capital Equipment, the display market, is that still something that could become healthier in 2023?

偉大的。這很有幫助。那麼資本設備的另一面，即顯示器市場，在 2023 年是否仍然會變得更健康？

Maybe. Right now, due to the very strong growth that we're having in semi cap, we're repurposing a lot of the capabilities that we have in Korea to support the semi cap growth. And given that over about 40% of all capital is kind of purchased through folks in that region, Samsung, Hynix, if you will, it plays very well into a regionalization play. So while the display market is down, we're using the capabilities and the capacity we have in the area to support the tremendous growth that we have within Capital Equipment, semi cap.

也許。目前，由於我們在半市值方面的強勁增長，我們正在重新利用我們在韓國擁有的許多能力來支持半市值增長。鑑於超過 40% 的資本是通過該地區的人購買的，三星、海力士，如果你願意的話，它在區域化方面發揮了很好的作用。因此，當顯示器市場下滑時，我們正在利用我們在該領域的能力和能力來支持我們在資本設備（Capital Equipment）中的巨大增長，半帽。

We have no further questions in queue. I'd like to turn the call back over to Rob Mionis for any closing remarks.

我們在隊列中沒有其他問題。我想將電話轉回給 Rob Mionis 以獲取任何結束語。

Thank you. We're off to a strong start in 2022, and I'm pleased that the execution of our strategy continues to yield results. And we continue to execute well through a difficult supply chain environment. I'm also pleased that we're able to raise our full year financial outlook. I'd like to thank our global team for a strong first quarter, and thank you all for joining today's call. We look forward to updating you as we progress throughout the year.

謝謝你。我們在 2022 年開局良好，我很高興我們的戰略執行繼續取得成果。我們在艱難的供應鏈環境中繼續保持良好的執行力。我也很高興我們能夠提高全年的財務前景。我要感謝我們的全球團隊第一季度的強勁表現，並感謝大家加入今天的電話會議。隨著我們全年的進展，我們期待著更新您。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。