Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Sidoti Fall Virtual Small Investor Conference 2021
20 slides from Vishay Precision's conference presentation, September 2021
Slide 1: Vishay Precision Group Fall Investor Conference
Vishay Precision Group PERFORMANCE THROUGH PRECISION Fall Investor Conference September 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 4-Year Sales • Leader in diversified niches across broad set of markets with organic growth drivers Growth (CAGR) 5% • 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: 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% 31% 33% • Manufacturing consolidations
Slide 7: 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 8: 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 9: 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 10: DTS – The Newest Addition to the VPG Platform
DTS – The Newest Addition to the VPG Platform DTS specializes in miniature DAQ and portable data logger solutions, which are engineered for extreme test environments to enable product development, performance validation and safety testing. Key Markets/Applications: • Automotive • Avionics, Military
Slide 11: Safety Testing
Safety Testing Testing: Helping to improve safety and survivability Engineered for extreme test environments, DTS’ rugged compact data loggers and sensors are integrated into crash dummies for use in automotive, aerospace, and defense safety testing. 11 PERFORMANCE THROUGH PRECISION
Slide 12: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights • Revenues of $75.3 million vs. $70.6 million in 1Q21 ▪ Sales grew sequentially across all three reporting segments • Orders of $105.4 million grew 23.3% sequentially, including $7.1 million of DTS backlog • Book-to-bill ratio of 1.40 and backlog of $130.9 million indi
Slide 13: Thank You
Thank You 18 PERFORMANCE THROUGH PERFORMANCE THROUGH PRECISION PRECISION 13
Slide 14: Appendix
Appendix PERFORMANCE THROUGH PERFORMANCE THROUGH PRECISION PRECISION 14 14
Slide 15: 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 July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 July 3, 202
Slide 16: 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 July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020 July 3, 20
Slide 17: Reconciliation of Adjusted Gross Profit by Segment
Reconciliation of Adjusted Gross Profit by Segment 2021 2020 2021 Q2 Q2 Q1 Foil Technology Products As reported - GAAP $ 12,942 $ 13,286 $ 13,039 As reported - GAAP Margins 38.9 % 41.8 % 39.9 % COVID-19 impact 94 (38) 53 Start-up costs $ 1,159 $ 129 As Adjusted - Non GAAP $ 14,195 $ 13,248 $ 13,221
Slide 18: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Fiscal quarter ended July 3, 2021 June 27, 2020 April 3, 2021 Net earnings attributable to VPG stockholders $ 3,920 $ 1,759 $ 4,961 Interest Expense 273 267 305 Income tax expense 262 684 1,764 Depreciation 2,829 2,509 2,907 Amortization 757 604 6
Slide 19: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS – Fiscal Years
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 20: 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,
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