Vishay Intertechnology, Inc. · NYSE:VSH

Vishay Intertechnology — Q3 2018 Earnings Presentation

20 slides from Vishay Intertechnology's earnings presentation, October 2018

1. Slide 1: Financial Results Q3 2018

   FINANCIAL RESULTS Q3 2018 © 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.

2. Slide 2: Notes on Forward-Looking Statements

   NOTES ON FORWARD-LOOKING STATEMENTS Comments in this presentation other than statements of historical fact may constitute forward-looking statements. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should” or other simil

3. Slide 3: Highlights Q3 2018

   Q3 FINANCIAL INFORMATION HIGHLIGHTS Q3 2018  Revenues Q3: $781 million.  Gross margin Q3: 30.3%.  Operating margin Q3: 17.7%.  EPS Q3: $0.51; adjusted EPS: $0.60.  Guidance Q4: Revenues $745 to $785 million and gross margins of 28.0%-29.5%, based on Q3 x-rates.  Repatriated $450 million net of

4. Slide 4: Cash Repatriation 2018 & Related Foreign Tax

   Q3 FINANCIAL INFORMATION CASH REPATRIATION 2018 & RELATED FOREIGN TAX  In 2018 received $724 million in the US.  Paid down “revolver” to zero, paid down intercompany debts and paid $14 million US transition tax.  Paid $157 million in related foreign taxes impacting cash flow from operations.  No

5. Slide 5: Cash Flow Impacted by Cash Repatriation

   Q3 FINANCIAL INFORMATION CASH FLOW IMPACTED BY CASH REPATRIATION in millions Q3 2018 TTM Q3 2018 Year 2017 Depreciation $37 $151 $149 Amortization $3 $13 $14 U.S. transition tax ($14) Repatriation taxes ($65) ($157) Cash from operations $71 $232 $369 CapEx $50 $212 $170 Free Cash* $21 $29 $200 * Cas

6. Slide 6: Authorization for Convert Repurchase

   Q3 FINANCIAL INFORMATION AUTHORIZATION FOR CONVERT REPURCHASE Board authorized repurchase of certain converts.  Subject to market and business conditions, legal requirements and other factors.  Not obligated to acquire any particular amount of convertible debt instruments.  May be terminated or s

7. Slide 7: Sharecount for EPS Calculation

   Q3 FINANCIAL INFORMATION SHARECOUNT FOR EPS CALCULATION Projected Average Stock Diluted Price in million Shares $12.00 146 Total shares outstanding 144 $13.00 146 Related to RSUs etc. <1 $14.00 147 $15.00 148 $16.00 148 $17.00 149 $18.00 149 $19.00 150 The three converts issued 2010-12 become diluti

8. Slide 8: Sales Split Q3 2018

   Q3 FINANCIAL INFORMATION SALES SPLIT Q3 2018 29% AUTOMOTIVE 36% INDUSTRIAL 6% CONSUMER 8% COMPUTING 5% POWER SUPPLIES 5% MILITARY/AERO 7% TELECOM 4% MEDICAL END MARKETS 40% ASIA 58% DISTRIBUTION 35% OEM 25% AMERICAS 7% EMS 35% EUROPE GEOGRAPHY SALES CHANNELS 8 © 2018 VISHAY INTERTECHNOLOGY, INC. ALL

9. Slide 9: Appendix

   Q3 FINANCIAL INFORMATION APPENDIX © 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 9

10. Slide 10: Quarterly Financial Results

    Q3 FINANCIAL INFORMATION QUARTERLY FINANCIAL RESULTS in millions, except per share amounts Q3 2018 Q2 2018 Q3 2017* Net revenues $781 $761 $678 Gross profit $236 $227 $190 30.3% 29.9% 28.0% Operating income (loss) $138 $123 $95 17.7% 16.2% 14.1% Net earnings (loss) attributable to Vishay stockholder

11. Slide 11: Adjusted Quarterly Financial Results

    Q3 FINANCIAL INFORMATION ADJUSTED QUARTERLY FINANCIAL RESULTS in millions, except per share amounts Q3 2018 Q2 2018 Q3 2017* Net revenues $781 $761 $678 Gross profit $236 $227 $190 30.3% 29.9% 28.0% Adjusted operating income $138 $123 $99 17.7% 16.2% 14.6% Adjusted net earnings attributable to Visha

12. Slide 12: Reconciliation of GAAP to Adjusted

    Q3 FINANCIAL INFORMATION RECONCILIATION OF GAAP TO ADJUSTED in millions Q3 2018 Q2 2018 Q3 2017* GAAP NET EARNINGS (loss) $78 $103 $64 attributable to Vishay stockholders Reconciling items affecting operating income Restructuring and severance costs - - $3 Reconciling items affecting other income (e

13. Slide 13: Long Term Debt

    Q3 FINANCIAL INFORMATION LONG TERM DEBT as of September 29, 2018 Outstanding in millions Comments Interest Debt Long term incl. current portion $589 Revolving Debt - Available through December 10, 2020 LIBOR plus 1.50% up to $640 million Cash coupon 2.25% of principal or $14 million $600 million pri

14. Slide 14: Book-to-Bill Detail

    Q3 FINANCIAL INFORMATION BOOK-TO-BILL DETAIL Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Book-to-bill VISHAY 0.95 1.17 1.22 1. 28 1. 11 Book-to-bill distribution 0.80 1.23 1.28 1.40 1.15 Book-to-bill OEMs 1.15 1.08 1.16 1.13 1.06 Book-to-bill semiconductors 0.87 1.06 1.26 1.40 1.13 Book-to-bill passive

15. Slide 15: Operational Metrics

    Q3 FINANCIAL INFORMATION OPERATIONAL METRICS Q3 2018 Q2 2018 Q1 2018 Q4 2017* Q3 2017* Change in ASP vs. prior year total Vishay 0.5 0.7 (0.9) (2.3) (2.4) Change in ASP vs. prior year semis 0.7 1.0 (0.8) (2.7) (2.7) Change in ASP vs. prior year passives 0.2 0.3 (0.9) (1.9) (2.1) FX effect on revenue

16. Slide 16: Vishay Revenues and Gross Margin % Quarterly

    Q3 FINANCIAL INFORMATION VISHAY REVENUES AND GROSS MARGIN % QUARTERLY $ in millions excl. Spin-Off Vishay Precision Group in 2010 % 800 40 750 36 700 32 650 28 600 24 550 20 500 16 450 12 400 8 350 4 300 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2004

17. Slide 17: Vishay Revenues Quarterly by Product Segment

    Q3 FINANCIAL INFORMATION VISHAY REVENUES QUARTERLY BY PRODUCT SEGMENT $ in millions $ in millions 300 300 250 250 200 200 150 150 100 100 50 50 0 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20

18. Slide 18: Vishay Revenues Yearly by Product Segment

    Q3 FINANCIAL INFORMATION VISHAY REVENUES YEARLY BY PRODUCT SEGMENT $ in millions $ in millions 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 MOSFETs Diodes Opto Resistors/Inductors Capacitors © 2018 V

19. Slide 19: Vishay Gross Margins Quarterly by Product Segment

    Q3 FINANCIAL INFORMATION VISHAY GROSS MARGINS QUARTERLY BY PRODUCT SEGMENT % % 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 MOSFET

20. Slide 20: Vishay Gross Margins Yearly by Product Segment

    Q3 FINANCIAL INFORMATION VISHAY GROSS MARGINS YEARLY BY PRODUCT SEGMENT % % 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 MOSFETs Diodes Opto Resistors/Inductors Capacitors © 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERV

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