Celestica, Inc.

Good morning, ladies and gentlemen, and welcome to the Celestica Q2 2022 earnings conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If you require immediate assistance at any time, please press star zero for the operator. This call is being recorded on Tuesday, July 26, 2022. I would now like to turn the call over to Mr. Craig Oberg. Please go ahead.

Good morning, and thank you for joining us on Seleska's second quarter 2022 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 risk 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 scc.gov and CDAR.com. 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 earnings, non-IFRS operating margin, adjusted gross margin, adjusted return on invested capital or adjusted ROIC, adjusted free cash flow, gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio, adjusted net earnings, adjusted earnings per share or adjusted EPS, adjusted SG&A, lifecycle solutions revenue, and adjusted effective tax rate. 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. We refer you to yesterday's press release and our Q2 2022 earnings presentation, which are available at Celestica.com under the Investor Relations tab. for more information about these and certain other non-IFRS financial measures, including a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures from our financial statements. Unless otherwise specified, all references to dollars on this call are to U.S. dollars and per share information is based on diluted shares outstanding. 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. After a strong start to the year, we have carried forward that momentum into the second quarter, delivering another quarter of solid performance. Our results met or exceeded our expectations across both our ATS and CCS segments, despite challenges presented by the macro environment. Our solid performance in the second quarter was driven by double-digit year-over-year revenue growth, in both our ATS and CCS segments and higher year-over-year revenues across all of our end markets. Additionally, we are pleased to have delivered strong adjusted free cash flow in a highly volatile environment. We believe that the current environment continues to present significant opportunities for us with customer demand remaining strong. However, we remain cautious and vigilant given the risks presented by the current supply chain situation macroeconomic challenges, and other potential hurdles related to the COVID-19 and geopolitical tensions. I am pleased to say that our team has done an excellent job navigating these challenges, and we believe that our business is well positioned to weather any further challenges on these fronts. In early June, our Batam Indonesia facility experienced a fire in their warehouse. Thankfully, no one was hurt. and the facility was back online a few weeks later. Although we lost inventory in the fire, we anticipate the site will be at pre-incident production rates as we exit the year. The financial impact to the second quarter was minimal, and we expect that the impact to our 2022 annual top line will be less than $100 million and will be made up in 2023. We have insurance that largely covers the impact of the fire, including building restoration, inventory, and disruption to the business. Given the solid demand backdrop across our businesses and our demonstrated ability to navigate the present challenges, we are pleased to raise our full year 2022 guidance to $6.7 billion or more in revenue and tighten our non-IFRS adjusted EPS range to between $1.65 and $1.75. Before offering some additional color on our outlook for each of our businesses, I would like to turn the call over to Mandeep, who will provide additional details on our financial performance in the second quarter, as well as our guidance for the third quarter. Over to you, Mandeep.