IPG Photonics Corporation · NASDAQ:IPGP
IPG Photonics — Q4 2021 Earnings Presentation
11 slides from IPG Photonics's earnings presentation, Feb 15, 2022
Slide 1: Earnings Call Presentation Fourth Quarter 2021
Earnings Call Presentation Fourth Quarter 2021 February 15, 2022 10:00 am ET • By phone: 877-407-6184 in the US or 201-389-0877 internationally • A live webcast of the call will be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com © 2022 I
Slide 2: Safe Harbor Statement
Safe Harbor Statement Information and statements provided by IPG and its employees, including statements in this presentation, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this presentation that
Slide 3: Q4 '21 Highlights
Q4 '21 Highlights THE WORLD • Increased demand in Europe, North America and Japan drove Q4 revenue to exceed top LEADER IN end of the guidance FIBER LASERS ◦ Total revenue increased 8% YoY ◦ Higher sales in welding, marking, 3D printing and cleaning applications ◦ Significant growth in high power cu
Slide 4: Financial Review
Financial Review • Gross margin increased due to In millions except per share Q4 '21 Q4 '20 Y/Y Q3 '21 Q/Q the absence of additional inventory charge, offset by Revenue $364.5 $336.6 8% $379.2 (4)% increased shipping costs and lower fixed costs absorption Gross Margin 45.5% 43.6% 49.0% • Operating e
Slide 5: Revenue by Power
Revenue by Power • Revenue growth was driven by pulsed and medium power 200.0 lasers, systems, medical and beam delivery 180.0 • High power (more than 1kW) sales declined as strong growth in welding and cutting applications in Europe, North America and 160.0 Japan was offset by softer demand in cutt
Slide 6: Revenue by Geography
Revenue by Geography 160.0 300.0 140.0 250.0 120.0 200.0 In millions In millions 100.0 80.0 150.0 60.0 100.0 40.0 50.0 20.0 0.0 0.0 North America Europe China Other Asia China RoW Q4 '20 Q3 '21 Q4 '21 Q4 '20 Q4 '21 • RoW revenue showed strong increase, accounting for 69% of total sales • Higher reve
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q4 '21 • Maintaining strong balance sheet and cash flow generation Cash and Short-term Investments $1,515 • High cash conversion ratio* Inventories $461 • Increased inventories to build a safety stock of components due to supply chain constraints and T
Slide 8: Strong Balance Sheet and Cash Flow Generation
Strong Balance Sheet and Cash Flow Generation Operating Cash Flow and Capital Allocated Exceptional Balance Sheet 500.0 2000.0 400.0 1500.0 300.0 200.0 In millions In millions 1000.0 100.0 0.0 500.0 -100.0 0.0 -200.0 -300.0 -500.0 Q4 '20 Q4 '21 Q4 '20 Q4 '21 YTD Cash from operations Cash YTD CapEx S
Slide 9: Financial Guidance
Financial Guidance Q1 '22 Outlook • Q4 book-to-bill was close to 1 • Expect higher sales in emerging Revenue $320M - $350M growth products Gross Margin 46% - 48% • High power cutting sales in China are expected to stabilize Operating Expenses $84M - $86M at lower levels EPS $0.85 - $1.15 Tax Rate ~2
Slide 10: Vertical Integration Provides Competitive Edge
VERTICAL THE WORLD INTEGRATION LEADER IN PROVIDES FIBER LASERS COMPETITIVE EDGE EXPANDING ENABLING INTO LASER & GREATER NON-LASER AUTOMATION APPLICATIONS STRONG HIGH ELECTRICAL MARGINS, EFFICIENCY ENABLES BALANCE SHEET LOWER CUSTOMER & CASH FLOW ENERGY USE © 2022 IPG Photonics 10
Slide 11: Thank you
Thank you © 2021 IPG Photonics