Celestica, Inc.

Good morning. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to Celestica's fourth quarter 2021 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's presentation, there will be a question and answer session. If you'd like to ask a question at this time, please press star followed by the number one on your telephone keypad. If you have any difficulties hearing the conference, please press star zero. Thank you. Craig Oberg, Vice President of Investor Relations and Corporate Development. You may begin your conference.

Good morning, and thank you for joining us on Seleska's fourth quarter 2021 earnings conference call. On the call today are Rob Mayonis, 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. 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 20F, and other public filings, which can be accessed at sec.gov and cdar.com. We assume no obligation to update any forward-looking statements except as required by law. In addition, during this call, we will refer to various non-IFRS financial measures, including 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 EPS, adjusted SG&A, lifecycle solutions revenue, and adjusted effective tax rates. 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 use IFRS or who report under U.S. GAAP and use non-GAAP financial measures to describe similar operating metrics. We refer you to yesterday's press release and our Q4 2021 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 US dollars and per share information is based on diluted shares outstanding. Let me now turn the call over to Rob.

Thank you, Craig. Good morning, everyone, and thank you for joining us on today's conference call. In the fourth quarter, Bustic achieved several important milestones, capping a challenging but successful year. A company closed the acquisition of PCI, our first acquisition in three years, which has been immediately accretive to our financial performance. and accelerated our portfolio diversification efforts. We achieved a return to top-line year-over-year revenue growth in the fourth quarter after successfully disengaging with Cisco, and we recorded the highest non-IFRS operating margin ever for the second straight quarter in a row. In spite of our dynamic macro environment, Celestica continues to execute well on our key objectives while advancing our long-term strategy. Our fourth quarter revenue came in at $1.51 billion, slightly higher than the midpoint of our guidance. While non-IFRS adjusted EPS of $0.44, our highest quarterly adjusted EPS in more than 20 years came in well above the high end of our guidance range. Our non-IFRS operating margin of 4.9% was another high watermark for Celestrica. This represented our eighth consecutive quarter of yearly operating margin improvement and was higher than the guidance midpoint of 4.5%. With our solid progress on margin expansion over the last two years, we believe we are in a strong position to maintain our operating margin in our target range of 4% to 5% for 2022. 2021 was a great year for our CCS segment. as our hardware platform solutions business, or HPS, achieved a record 1.15 billion in sales, which represented growth of 34% compared to 2020, as we continue to gain share and grow faster than the market. Despite the challenges presented by the constrained global supply chain environment, demand from service providers in our HPS business is expected to remain a driver of growth in CCS for 2022. Our HPS segment saw strong revenue growth in 2021, led by our capital equipment business, which achieved sales of approximately $750 million. We also experienced a return to growth in the fourth quarter of 2021 in our industrial business. Looking ahead to 2022, we expect revenue growth in ATS of 10% or more. Our outlook is supported by continued strength in our capital equipment business, incremental growth in our industrial business, further accelerated by the addition of PCI, and continuing commercial aerospace recovery aided by new program ramps in defense. While 2022 is by no means anticipated to be without its share of challenges, we expect to build on the positive momentum we have established in 2021 and lead the company to another strong year of financial performance by executing on our strategic and operational objectives. Before I offer some additional detail on our business outlook, I would like to turn the call over to Mandeep, who will provide you with additional color on our fourth quarter financial performance, as well as our guidance for the first quarter and our outlook for 2022. Mandeep, over to you.