Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Jefferies 2020 Virtual Industrials Conference
19 slides from Vishay Precision's conference presentation, Aug 5, 2020
Slide 1: Vishay Precision Group
Vishay Precision Group PERFORMANCE THROUGH PRECISION Jefferies Virtual Industrials Conference August 5, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement From time to time, information provided by us, including but not limited to statements in this report, or other statements made by or on our behalf, may contain "forward- looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such state
Slide 3: Investment Highlights
Investment Highlights Proven Financial Performance • Addresses the growing sensor market for 2017-2019: industrial technology applications 3-Year Sales • Serving diversified niches of broad set of markets with organic growth vectors Growth (CAGR) 8% • Deep competitive moats through differentiated 32
Slide 4: VPG Focuses on Key Niches of the Global Sensor Market
VPG Focuses on Key Niches of the Global Sensor Market VPG Applications for VPG products Temperature Force Optical and systems are increasing Infrared Weight due to: $180B • Increasing regulation – requiring more Global Sensor automated monitoring and data Humidity Market1 collection Pressure Ultraso
Slide 5: Serving a Diversified and Broadening Set of Markets
Serving a Diversified and Broadening Set of Markets Other Markets 17% Transportation • Agriculture VPG Value to Customers: 13% • Construction • Consumer • Medical Optimization Safety / Productivity of Systems Regulation Steel 12% 2019 Industrial Revenue Weighing 19% Not reliant on a single market Ge
Slide 6: Productivity
Productivity Semiconductor Test: Helping to maximize the productivity of Automatic Test Equipment (ATE) for Semiconductor products VPG’s high-precision foil resistors help deliver the highest signal accuracy required for effective semiconductor chip testing, providing better precision and stability
Slide 7: Safety and Monitoring
Safety and Monitoring Medical: Helping to improve patient monitoring By precisely monitoring a patient’s weight on hospital beds, VPG’s load cell sensors help nursing staff regulate medication dosage as well as reduce potential falls which are among the highest patient risks during hospital stays PE
Slide 8: Optimization/Precision
Optimization/Precision Consumer: VPG’s solutions provide performance in consumer applications VPG’s advanced sensors are used to precisely measure torque in real- time to enable professional and recreational bike riders to track their training progress in all kinds of weather and road conditions PER
Slide 9: Why VPG Wins
Why VPG Wins Technology Applications Operational Global Innovation Knowledge Excellence Footprint • A pioneer in foil • Engineer-to-engineer • Focus on quality, • 2,400 employees in technology since solutions delivery, and cost 12 countries 1962 • Design-in wins • Key investments in • 2019 sales by
Slide 10: Multi-Year Strategic Initiatives Are Underway
Multi-Year Strategic Initiatives Are Underway • Advanced sensors for high-volume opportunities Organic Growth • TruckWeigh & VanWeigh overload protection for Aftermarket • Force Sensors for OEMs • Manufacturing transition of Force Sensors to Asia Operational Excellence • New FTP manufacturing facili
Slide 11: Advanced Sensor Technology; The World's Smallest, Most Reliable Strain Gage
Advanced Sensor Technology; The World’s Smallest, Most Reliable Strain Gage VPG’s Advanced Sensors feature smaller size, more Potential new applications complex design, higher for advanced sensor resistance, lower energy technology include: consumption, and multi-axis • Consumer measurement capabili
Slide 12: Aftermarket Opportunity for Truck Overload Protection
Aftermarket Opportunity for Truck Overload Protection • Sold in the aftermarket, VPG’s TruckWeigh and VanWeigh onboard weighing system uses real-time sensors and indicators to keep truck Indicator operators within regulated vehicle load limits. • Aftermarket success in UK Air pressure sensor and Fra
Slide 13: Recap of 2Q20 Highlights
Recap of 2Q20 Highlights Revenue & Book-to-Bill • Revenues of $59.1 million were in-line with our $90 1.40 guidance $80 1.20 ◦ Strong performance in FTP segment driven by $70 advanced sensors and precision foil resistors 1.00 Bookings / Revenue $60 ◦ COVID-19 impact on Force Sensors segment 0.80 Mil
Slide 14: VPG Sales by Market Reflects Mixed Picture and Impact of COVID-19
VPG Sales by Market Reflects Mixed Picture and Impact of COVID-19 Fiscal quarter ended June 27, 2020 June 29, 2019 March 28, 2020 Test & Measurement $ 14.0 $ 18.0 $ 14.3 Avionics, Military, Space 6.7 3.9 6.2 Transportation 5.2 10.4 8.2 Industrial Weighing 8.6 14.2 12.5 General Industrial 3.6 5.2 4.0
Slide 15: Quarterly Financial Model Reflects Operating Leverage
Quarterly Financial Model Reflects Operating Leverage Quarterly Financial Model Revenue $65M - $70M $70M - $75M $75M - $80M $80M - $85M Adj. GM% 37% - 39% 39% - 40% 40% - 42% 42% - 45% Adj. Op. Margin 4.4% - 8.1% 8.1% - 10.7% 10.7% - 14.5% 14.5% - 19.1% Adj. EBITDA ($) $5.8M - $8.7M $8.7M- $11.0M $1
Slide 16: Investment Highlights
Investment Highlights • Addresses the growing sensor market for industrial technology applications • Serving diversified niches of broad set of markets with organic growth vectors • Deep competitive moats through differentiated technology and strong brands • Business model provides operating margin
Slide 17: Appendix
Appendix PERFORMANCE THROUGH PRECISION 17 17
Slide 18: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS - Quarter
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - Quarter Net Earnings Attributable to Gross Profit Operating Income VPG Stockholders Diluted Earnings Per share Three months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27,
Slide 19: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS - YTD
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - YTD Net Earnings Attributable to Gross Profit Operating Income VPG Stockholders Diluted Earnings Per share Six fiscal months ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27,
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