SMART Global Holdings, Inc. (NASDAQ:SGH) Q4 2021 Earnings Conference Call October 12, 2021 4:30 PM ET Company Participants Suzanne Schmidt - IR Mark Adams - President & CEO Ken Rizvi - SVP & CFO Conference Call Participants Thomas O'Malley - Barclays Brian Chin - Stifel Kevin Cassidy - Rosenblatt Securities Rajvindra Gill - Needham & Company Sidney Ho - Deutsche Bank Mark Lipacis - Jefferies Operator Good day and thank you for standing by. Welcome to the SGH Fourth Quarter and Full-Year Fiscal 2021 Results ...

| --- | --- | --- | |--------------------------------------------------|-------|-------| | | | | | Q4 FY2021 SGH FINANCIAL RESULTS OCTOBER 12, 2021 | | | Disclaimer This presentation and oral communications made during the course of this presentation will contain "forwardlooking statements," including, among other things, statements regarding future events and the future financial performance of SGH (including the business outlook for the next fiscal quarter) and statements regarding growth drivers in SGH's ...

| --- | --- | --- | --- | --- | |-----------------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | Q3 FY2021 Financial Results Conference Call July 6, 2021 | | | | | Disclaimer This presentation and oral communications made during the course of this presentation contain "forwardlooking statements" including among other things, statements regarding future events and the future financial performance of SMART Global Holdings, Inc. ("SGH"), includ ...

SMART Global Holdings, Inc. (NASDAQ:SGH) Q3 2021 Earnings Conference Call July 6, 2021 4:30 PM ET Company Participants Suzanne Schmidt - IR Mark Adams - President & CEO Ken Rizvi - SVP & CFO Jack Pacheco - EVP, COO SGH & President SMART Modular Technologies Conference Call Participants Tom - Barclays Investment Bank Brian Chin - Stifel Sidney Ho - Deutsche Bank Raji Gill - Needham & Company Kevin Cassidy - Rosenblatt Securities Operator Good day and thank you for standing by. Welcome to the SGH Third Quarte ...

Financial Performance - Net sales increased by $156.4 million, or 55.6%, for the three months ended May 28, 2021, and by $208.1 million, or 25.2%, for the nine months ended May 28, 2021, primarily due to $101.8 million in revenue from the newly acquired LED business [270]. - The company reported a net loss of $6.7 million for the three months ended May 28, 2021, compared to a net income of $0.8 million in the same period last year [269]. - Cash provided by operating activities was $105.3 million for the nine months ended May 28, 2021, compared to $62.2 million for the same period in the prior year [281][286]. Cost and Expenses - Cost of sales rose by $126.2 million, or 55.6%, for the three months ended May 28, 2021, and by $177.6 million, or 26.7%, for the nine months ended May 28, 2021, driven by higher material costs and additional costs from the LED business [271]. - Gross profit margin remained stable at 19.3% for the three-month periods but decreased to 18.4% for the nine months ended May 28, 2021, compared to 19.4% in the prior year, mainly due to increased material costs [273]. - Research and development expenses increased by $2.3 million, or 15.8%, for the three months ended May 28, 2021, but decreased by $11.5 million, or 26.1%, for the nine months ended May 28, 2021, influenced by costs from the LED business and financial credits from Brazil [274]. - Selling, general and administrative expenses rose by $18.7 million, or 63.0%, for the three months ended May 28, 2021, and by $26.3 million, or 28.6%, for the nine months ended May 28, 2021, primarily due to costs from the LED business and higher share-based compensation [275]. Acquisition and Business Development - The company acquired the Cree LED Business for a total consideration of $50 million in cash, plus an earn-out payment of up to $125 million based on performance [266]. - The acquisition of the LED business is expected to enhance the company's product offerings and market position in the LED segment [266]. Market and Operational Challenges - The company experienced reduced sales volumes in certain product lines due to the COVID-19 pandemic, impacting operations and product development [268]. - The company anticipates ongoing challenges related to supply shortages and rising material costs due to the pandemic and increased demand in various segments [268]. Interest and Taxation - Interest expense increased by $2.0 million, or 63.2%, for the three months ended May 28, 2021, compared to the same period in the prior year [276]. - Provision for income taxes increased by $1.3 million and $4.1 million for the three and nine months ended May 28, 2021, respectively [279]. Cash Flow and Financial Position - Net cash used in investing activities was $68.4 million during the nine months ended May 28, 2021, primarily for property and equipment purchases and the LED acquisition [287]. - Net cash provided by financing activities was $1.3 million during the nine months ended May 28, 2021, with significant proceeds from borrowings and share issuances [288]. - As of May 28, 2021, the company had cash and cash equivalents of $189.0 million, with approximately $164.2 million held outside the United States [281]. - The company expects existing cash and cash equivalents, line of credit, and cash generated by operating activities to be sufficient for operations for at least the next twelve months [284]. Currency Exposure - Approximately 32% of net sales during the nine months ended May 28, 2021, originated in Brazilian reais [301]. Interest Rate Sensitivity - Each 1.0% increase in interest rates on variable rate borrowings would result in an increase in annual interest expense of $1.5 million [303].

A P R I L 6 , 2 0 2 1 Q2 FY2021 Financial Results Conference Call Disclaimer 2 This presentation and oral communications made during the course of this presentation contain "forward-looking statements" including among other things, statements regarding future events and the future financial performance of SMART Global Holdings, Inc. ("SGH), including the business outlook for the next fiscal quarter, and statements regarding growth drivers in SGH'S industries and markets. These statements are only prediction ...

SMART Global Holdings, Inc. (NASDAQ:SGH) Q2 2021 Earnings Conference Call April 6, 2021 4:30 PM ET Company Participants Suzanne Schmidt - Investor Relations Mark Adams - Chief Executive Officer Jack Pacheco - Chief Operating Officer Ken Rizvi - Chief Financial Officer Conference Call Participants Tom O’Malley - Barclays Brian Chin - Stifel Kevin Cassidy - Rosenblatt Raji Gill - Needham & Company Sidney Ho - Deutsche Bank Mark Lipacis - Jefferies Operator Thank you for standing by, and welcome to the SMART G ...

Financial Performance - Net sales for the three months ended February 26, 2021, were $304,009,000, an increase of 11.8% compared to $272,042,000 for the same period in 2020[14] - Gross profit for the six months ended February 26, 2021, was $106,099,000, slightly up from $105,826,000 for the same period in 2020[14] - Net income for the three months ended February 26, 2021, was $5,844,000, compared to a net loss of $9,720,000 for the same period in 2020[14] - Basic earnings per share for the three months ended February 26, 2021, was $0.24, a significant improvement from a loss of $0.41 per share in the same period of 2020[14] - Net income for the six months ended February 26, 2021, was $7.871 million, compared to a net loss of $9.496 million for the same period in 2020, representing a significant turnaround[23] Expenses and Cost Management - Research and development expenses decreased to $8,852,000 for the three months ended February 26, 2021, from $14,702,000 in the same period of 2020, representing a reduction of 39.0%[14] - The company paid $2.955 million in interest during the period, a decrease from $9.754 million in the same period last year, suggesting lower debt servicing costs[23] - Share-based compensation expense for the three months ended February 26, 2021, was $5.398 million, compared to $4.647 million for the same period in 2020[82] Assets and Liabilities - Total assets increased to $820,807,000 as of February 26, 2021, compared to $786,608,000 as of August 28, 2020, reflecting a growth of 4.3%[12] - Total liabilities rose to $562,248,000 as of February 26, 2021, up from $504,504,000 as of August 28, 2020, indicating an increase of 11.4%[12] - Total shareholders' equity decreased to $258,559,000 as of February 26, 2021, from $282,104,000 as of August 28, 2020[12] Cash Flow and Investments - Net cash provided by operating activities increased to $55.990 million, up from $48.601 million year-over-year, indicating improved operational efficiency[23] - Capital expenditures for the six months ended February 26, 2021, were $34.795 million, compared to $9.368 million in the prior year, reflecting increased investment in growth[23] - Cash and cash equivalents decreased to $139,803,000 as of February 26, 2021, from $150,811,000 as of August 28, 2020[12] Market Presence and Operations - The company has operations in multiple countries, including the United States, Brazil, and several Asian and European nations, indicating a broad market presence[27] - The company operates in three segments: Specialty Memory Products, Brazil Products, and Specialty Compute and Storage Solutions, diversifying its revenue streams[27] Revenue Recognition and Deferred Revenue - Gross billings to customers for the six months ended February 26, 2021, were $871,338 thousand, up 3.9% from $838,949 thousand for the same period in 2020[46] - Deferred revenue increased by $4,724 thousand from $20,124 thousand as of August 28, 2020, to $24,848 thousand as of February 26, 2021[48] - Remaining performance obligations expected to be recognized within one year amount to $20,400 thousand[51] Acquisitions and Divestitures - The Company completed the divestiture of its LED Business for a total purchase price of $50 million in cash and a $125 million promissory note, with potential earn-out payments of up to $125 million based on future performance[97] - The acquisition of SMART Embedded Computing, Inc. was completed for a base purchase price of approximately $75 million, with potential earn-out payments of up to $10 million based on revenue targets[100] - SMART Global Holdings acquired SMART Wireless Computing for a total purchase price of approximately $14.6 million, which included $3.2 million in cash and $9.1 million in shares[109] Debt and Financing - The Company recognized a loss on extinguishment of debt in other expense, net of $6.6 million due to early repayment of term loans[168] - The Amended Credit Agreement provides for $165 million of initial term loans with a maturity date of August 9, 2022, and $50 million of revolving loans with a maturity date of February 9, 2021[155] - The FINEP Credit Agreement provides a total of R$102.2 million (approximately $18.7 million) for technology innovation projects in Brazil[185] Stock Options and Compensation - The expected volatility for stock options granted was 52.07% for the six months ended February 26, 2021, compared to 46.10% for the same period in 2020[204] - The total intrinsic value of employee stock options exercised was $2.0 million for the three months ended February 26, 2021, and $2.4 million for the six months ended February 26, 2021[206] - The share-based compensation expense related to RSAs, RSUs, and PSUs was approximately $3.2 million for the three months ended February 26, 2021, and $12.2 million for the six months ended February 26, 2021[210]

J A N U A R Y 2 0 2 1 Investor Presentation Forward-looking Statements 2 This presentation and oral communications made during the course of this presentation contain statements that constitute forward-looking statements. Many of these forward-looking statements can be identified by the use of forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. Forward-looking statements include, but are not limited to, statements re ...

SMART Global Holdings, Inc. (NASDAQ:SGH) Q1 2021 Earnings Conference Call January 5, 2021 4:30 PM ET Company Participants Suzanne Schmidt - IR Mark Adams - President & CEO Jack Pacheco - EVP, COO and CFO Conference Call Participants Kevin Cassidy - Rosenblatt Securities Raji Gill - Needham & Company Brian Chin - Stifel Sidney Ho - Deutsche Bank Operator Ladies and gentlemen, thank you for standing by and welcome to the SMART Global Holdings First Quarter Fiscal 2021 Earnings Conference Call. At this time, ...