Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — 16th Annual Needham Virtual Technology and Media Conference (May 2021)
26 slides from Vishay Precision's conference presentation, May 17, 2021
Slide 1: Vishay Precision Group Investor Presentation
Vishay Precision Group PERFORMANCE THROUGH PRECISION Investor Presentation May 17, 2021 1/13/21 PERFORMANCE THROUGH PRECISION
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 statem
Slide 3: Highlights
Highlights Proven Financial Performance • Addresses the growing sensor market for 2017-2020: industrial technology applications 5% 4-Year Sales • Leader in diversified niches across broad set of Growth markets with organic growth drivers (CAGR) • Effective business model and demonstrated 16% resilie
Slide 4: VPG Focuses on Key Niches of the Global Sensor Market
VPG Focuses on Key Niches of the Global Sensor Market Foil Technology Products VPG: a leader in proprietary • Foil Resistors • Strain gages-advanced sensors sensor and sensor-based • Data acquisition systems systems solutions addressing demanding applications in a diversified Force Sensors Weighing
Slide 5: Serving a Diversified and Broadening Set of Markets
Serving a Diversified and Broadening Set of Markets Other Markets 21% Transportation • Agriculture 11% VPG Value to Customers: • Construction • Consumer • Medical Industrial Optimization Safety / Weighing Productivity of Systems Regulation 2020 16% Revenue Not reliant on a single market Steel 14% by
Slide 6: 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 6
Slide 7: Productivity
Productivity Agriculture: Sensors improve the yield of the world’s farmers VPG's high-quality load cells help improve crop yields by ensuring seeds are planted at consistent and optimal soil depths 7 PERFORMANCE THROUGH PRECISION
Slide 8: 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 9: Performance
Performance Aerospace: Built to withstand extreme conditions in Space To help the Mars Rover’s robotic grippers retrieve samples from the Martian surface, VPG’s multi-axis sensors built with Advanced Sensors Technology can measure six different forces simultaneously. 9 PERFORMANCE THROUGH PRECISION
Slide 10: Optimization/Regulation
Optimization/Regulation Transportation: Sensors help monitor truck loads for overload protection Sold on the aftermarket, VPG’s TruckWeigh solution helping truck operators optimize their loads while avoiding fines. 10 PERFORMANCE THROUGH PRECISION
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: Multi-Year Strategic Growth and Cost Initiatives Underway
Multi-Year Strategic Growth and Cost Initiatives Underway Strategy/Milestones Organic Sales Growth of Strategic Initiatives • Ongoing product and sales growth 2017-2020 Organic (CAGR) Growth • Investment in key growth 4-Year Sales CAGR 2017-2020 initiatives 44% • Manufacturing consolidations and 33%
Slide 13: Strategic Growth and Cost Initiatives Driving VPG's Financial Performance
Strategic Growth and Cost Initiatives Driving VPG’s Financial Performance 4-Year CAGR 2017-2020 15% 16% 10% 6% 5% Sales Adj. Gross Adj. Operating Adj. EPS Adj. EBITDA Profit Profit • Adjusted Gross margin, Adjusted Operating margin, Adjusted Diluted EPS, and Adjusted EBITDA exclude purchase accounti
Slide 14: Strong Cash Flow Generation
Strong Cash Flow Generation Cumulative Cash from Operations 2016 - 2020 $160 • VPG generated $136 million in $140 Cash From $136 cash from operations from 2016 Operations $120 through 2020 Adj. Free Cash $100 Flow* $100 • Historically strong cash flow has funded key acquisitions of $ Millions $80 $7
Slide 15: Strong Cash Flow and Balance Sheet Support Clear Capital Allocation Strategy
Strong Cash Flow and Balance Sheet Support Clear Capital Allocation Strategy To Build Shareholder Value 1. Invest in organic growth and cost reduction initiatives: e.g., new FTP manufacturing facility to support Advanced Sensors Core growth, other manufacturing consolidations Capital Allocation 2. B
Slide 16: Quarterly Financial Model Reflects Operating Leverage in Normal Business Environment
Quarterly Financial Model Reflects Operating Leverage in Normal Business Environment 1Q21 Quarterly Financial Model Actual Revenue $70.6M $65M - $70M $70M - $75M $75M - $80M $80M - $85M Adj. GM% 40.5% 37% - 39% 39% - 40% 40% - 42% 42% - 45% Adj. Op. Margin 8.7% 4.4% - 8.1% 8.1% - 10.7% 10.7% - 14.5%
Slide 17: Investment Highlights
Investment Highlights • Addresses the growing sensor market for industrial technology applications • Leader in diversified niches across broad set of markets with organic growth drivers • Effective business model and demonstrated resilience during global pandemic • Steps already in place to realize
Slide 18: Thank You
Thank You 18 PERFORMANCE THROUGH PERFORMANCE THROUGH PRECISION PRECISION 18
Slide 19: Appendix
Appendix PERFORMANCE THROUGH PERFORMANCE THROUGH PRECISION PRECISION 19 19
Slide 20: Consolidated Results/Market Trends
Consolidated Results/Market Trends Financial Highlights Revenue by Market ($ in millions) Fiscal quarter ended ($ in millions) Fiscal quarter ended April 3, March 28, December 31, April 3, March 28, December 2021 2020 2020 2021 2020 31, 2020 Test & Measurement $ 14.4 $ 14.3 $ 13.3 Net revenues $ 70.
Slide 21: Segment Results/Trends
Segment Results/Trends Weighing and Control Foil Technology Products Force Sensors Systems ($ in millions) Q1 Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 2021 2020 2020 2021 2020 2020 2021 2020 2020 Net revenues $ 32.7 $ 30.5 $ 36.5 $ 16.9 $ 14.7 $ 16.3 $ 20.9 $ 22.5 $ 22.7 Gross profit $ 13.0 $ 11.2 $ 14.0 $ 6.0 $ 3.6
Slide 22: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS
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 March 28, March 28, March 28, March 28, Three months ended April 3, 2021 2020 April
Slide 23: Reconciliation of Adjusted Gross Profit by Segment
Reconciliation of Adjusted Gross Profit by Segment 2021 2020 2020 Q1 Q1 Q4 Foil Technology Products As reported - GAAP $ 13,039 $ 11,201 $ 14,023 As reported - GAAP Margins 39.9 % 36.7 % 38.4 % COVID-19 impact 53 — 163 Start-up costs $ 129 As Adjusted - Non GAAP $ 13,221 $ 11,201 $ 14,186 As Adjuste
Slide 24: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share – Fiscal Years Net Earnings Attributable to VPG Gross Profit Operating Income Stockholders Diluted Earnings Per share Fiscal Year Ended December 31, 2020 2019 2020 2019 2020 2019 2020 2019 As repor
Slide 25: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Calculation of EBITDA and Adjusted EBITDA In $ (000), except percentages Years Ended December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 Net Earnings 10,787 22,188 23,646 14,345 6,404 Interest Expense 1,366 1,
Slide 26: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA PERFORMANCE THROUGH PRECISION 26