Vishay Intertechnology, Inc. · NYSE:VSH
Vishay Intertechnology — Investor Day (April 2024)
87 slides from Vishay Intertechnology's investor day presentation, Apr 2, 2024
Slide 1: Vishay 3.0 Investor Day
Vishay 3.0 Customer First. Business Minded. Growth Driven. I N V E S TO R D AY April 2, 2024
Slide 2: Forward-Looking Statements
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 similar words
Slide 3: Welcome to Vishay 3.0
01 Welcome to Vishay 3.0 J O E L S M E J K AL President & Chief Executive Officer
Slide 4: A New Vishay
Customer First A New Vishay… Business Minded A Well Funded Start Up Growth Driven
Slide 5: Executive Team
Executive Team Joel Smejkal Jeff Webster Dave McConnell Roy Shoshani Mike O’Sullivan Peter Henrici President & Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Chief Executive Officer & Chief Operating Officer Chief Financia
Slide 6: Leadership Team Driving Change
Leadership Team Driving Change Vishay 3.0 Operations Customers & Markets Cash Flow P&L Fulfill Orders Anticipate Customer Needs
Slide 7: Agenda
Joel Smejkal Welcome to Vishay 3.0 President & CEO Joel Smejkal Manufacturing, Capacity Expansion Plans President & CEO Jeff Webster Channel Management Strategy COO Agenda Q&A / BREAK Silicon Carbide Strategy Roy Shoshani CTO Roy Shoshani Vishay 3.0 Product and Technology Development Plans CTO Dave
Slide 8: Broadest Line of Discrete Semiconductors and Passive Components
Broadest Line of Discrete Semiconductors and Passive Components DISCRETE SEMICONDUCTORS PASSIVE COM PONENTS LOWEST VOLT AGE DIODE HIGHEST ENERGY CAPACIT OR In power applications, we can populate ~80% of our customers’ Bill of Material
Slide 9: Trusted by...
Trusted by... OEM EMS DISTRIBUTION
Slide 10: Our customers want more from Vishay
Our customers want more from Vishay The "new" Vishay is an amazing company. The partnership with Vishay It’s been refreshing to truly partner with a The partnership with Vishay Vishay has become a forward-looking Intertechnology Inc. has been important to company like Vishay who are laser Intertechn
Slide 11: Serving Multiple Channels and End Markets
CHANNELS END M ARKETS % 2023 Revenues % 2023 Revenues Serving 18% Multiple 40% 4% 37% Channels 53% 7% and End Markets 7% 34% Industrial Automotive Distribution EMS OEM Aerospace/Defense Medical * Power Supplies, Telecom, Consumers, Computing
Slide 12: Serving Engineers' needs in all Regions
REGIONS PRODUCT TYPE % 2023 Revenues % 2023 Revenues Serving 22% Engineers’ 37% 37% 47% needs in all Regions 31% 26% Asia Americas Europe Certified Custom Commodity Certified is equivalent to non-commodity as reported to the SEC.
Slide 13: e-mobility—Key 800V BEV Power Applications
e-mobility—Key 800V BEV Power Applications HIGH VOLTAGE BATTERY 800V MAIN INVERTER 800V SiC Modules, SiC MOSFETs for Diodes: TVS, ESD, Schottky active discharge Inductors for SMPS and as EMI Filters Inductors: common mode custom Capacitors: Safety caps, HV MLCC, filter (HV) charge balance capacitors
Slide 14: Sustainability—Key Power Applications
Sustainability—Key Power Applications TRANSM I SSI O N SO LAR ENERG Y Capacitors: Micro inverter High energy MOSFETs Resistors: Diodes: rectifiers, TVS High power Optocouplers, SSR Resistors: Melf, chips WIND POWER Inductors MOSFETs: IGBT Inverter modules, HV MOSFETs Power modules Diodes: TVS, recti
Slide 15: Strategic Growth Levers
Strategic Growth Levers Serve Market Internal Capacity Enhanced Expansion Channel Management External Capacity Expansion Broaden Innovation our Portfolio Optimizing Global Vishay Solutions Manufacturing Footprint Increased M&A Technical Headcount
Slide 16: Financial Goals
2028 TOTAL REVENUE GROSS M ARGIN OPERATING M ARGIN Financial 2023 2023 2023 $3.4B 28.6% 14.3% Goals CAGR 9-11% 31–33% 19–21% ADJ. EBITDA M ARGIN ROIC CAPITAL INTENSITY 2023 2023 2023 19.5% 11.2% 9.7% 25–27% ≥14% 6–7%
Slide 17: Manufacturing and Capacity Expansion Plans
Coming Up Manufacturing and Capacity Expansion Plans
Slide 18: Manufacturing, Capacity Expansion Plans
02 Manufacturing, Capacity Expansion Plans JEFF WEBSTER Chief Operating Officer
Slide 19: Scaling and Enhancing Operations
Scaling and WHO WE WERE Enhancing Allocation/ Manufacturing Single product Focused on Maximize Capacity focused line facilities internal Utilization Operations constrained production WHERE WE’RE GOING Capacity Customer and Optimized Balancing Maximize Ready service driven global between profitabilit
Slide 20: Investing in Capacity Readiness
$/M Investing in 1000 5–8% 9–15% 5–10% 20% Capacity Readiness 800 16% Investing $2.6 billion, 2023–2028 600 12% Investing 70% of CapEx in capacity expansion 400 8% Focused on growth product lines 200 4% 0 0% GOAL 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 80% utilization on growth p
Slide 21: Internal Capacity Expansion
Itzehoe, Germany Newport, UK Internal Juarez, Mexico Turin, Italy Taipei, Taiwan Capacity La Laguna, Mexico Expansion Philippines FUTURE SITE Regionally Diverse Addressing customer needs
Slide 22: Technology Capacity Expansion
Technology Capacity Newport Campus Wales, UK Expansion BUILDING PRODUCTS 3,650 m2 • Fab MOSFETS, SiC, GaN opto & thin film resistors PRO DUCTI O N STAR T Commercial Q4 ‘24 Automotive Q1 ‘25
Slide 23: Fully Automated 12" Silicon Expansion
Fully Automated 12” Silicon Itzehoe Campus Germany Expansion BUILDING PRODUCTS 4000 m2 • Fab MOSFETs, IC’s PRO DUCTI O N STAR T Commercial Q2’26 Automotive Q2’26
Slide 24: Passive Capacity Expansion
Passive Capacity La Laguna Campus Mexico Expansion BUILDING PRODUCTS 18,000 m2 • Assembly Inductors, resistors PRO DUCTI O N STAR T Commercial Q1 ‘24 Automotive Q2 ‘24
Slide 25: Resistors Capacity Expansion
Resistors Capacity Juarez Campus Mexico Expansion BUILDING PRODUCTS 10,800 m2 • Assembly Resistors PRO DUCTI O N STAR T Commercial Q1 ‘24 Automotive Q2 ‘24
Slide 26: External Capacity Expansion
External SEMICONDUCTORS PASSIVES WAFER FAB ASSEM BLY Capacity 4% 40% 24% Expansion 2023 2023 2023 10% 40% 45% 2028 Revenue 2028 Production 2028 Production Primarily resistors, Add capacity with Move more product for through combination Newport and Itzehoe all business lines of buy-resale and subcont
Slide 27: Maximizing Profitability
Maximizing 100% Profitability Product Category 80% High Performers Technically leading, used in growth markets 60% Internal capacity expansion: >75% Mature 40% Leading products with limited growth potential. Cost Reduction/Price Management 20% Legacy 0% Older products with low growth potential. High
Slide 28: Increasing Capacity
Increasing Capacity % Increase 2023-2028 % Increase 2023-2028 Business Segments Products Utilization 150% 150% High Performers 90%-100% 70%-80% 2022 2028 100% 100% Mature 90%-100% 70%-80% 2022 2028 50% 50% Legacy 70%-80% 50%-60% 2022 2028 0% 0% MOSFETs Diodes Opto Resistors Inductors Capacitors High
Slide 29: Customer First. Business Minded. Growth Driven.
Customer First. Capacity Customer and Optimized Balancing Maximize Ready service driven global between profitability Business operations— regionally internal and external Minded. diverse campuses production Growth Driven.
Slide 30: Channel Management Strategy
Coming Up Channel Management Strategy
Slide 31: Channel Management Strategy
03 Channel Management Strategy J O E L S M E J K AL President & Chief Executive Officer
Slide 32: The Customers want more from Vishay
Enhancing Channel Management and Vishay’s Profitable The Customers want more from Vishay
Slide 33: OEM
OEM … Key supplier and Vishay’s renewed focus and Vishay is at the forefront of Vishay’s innovation has technology leader for investments in capacity MOSFET technology and been instrumental in Assurance of essential components (ex. strengthen the strategic the first resource I turn to assisting Nort
Slide 34: EMS
EMS As Flex Procurement Leader, I am delighted to Vishay is a valued partner that has acknowledge the strengthened partnership demonstrated significant improvements in Assurance of between Vishay and Flex over the past couple of leadership and customer service since their capacity to scale years. Th
Slide 35: Distribution
Distribution Today’s customers require solutions to support efficient We’ve had a highly valued 19 Vishay under the leadership designs along with the manufacturing capacity to speed year relationship with Vishay. of Joel Smejkal has Best-in-class new their time to market. Vishay’s comprehensive offe
Slide 36: Growth in each end market
Growth in each end market AUTOMOTIVE INDUSTRIAL MEDICAL AEROSPACE/DEFENSE OTHER $/M $/M $/M $/M $/M 3000 2500 300 600 950 CAGR CAGR CAGR CAGR CAGR 11–13% 9–11% 1–2% 7–9% 6–8% 558 1216 153 272 1203 0 0 0 0 0 2023 2028 2023 2028 2023 2028 2023 2028 2023 2028
Slide 37: Growth in each channel
Growth in each channel OEM EMS DISTRIBUTION $/M $/M $/M CAGR CAGR CAGR 2500 9–11% 530 13–15% 3500 8–10% 1378 1798 226 0 0 0 2023 2028 2023 2028 2023 2028
Slide 38: Accelerating Revenue Growth
Accelerating Revenue Growth ($/M) 6000 CAGR 9–11% CAGR 3.6% 3497 3402 3240 3035 2668 2502 0 2018 2019 2020 2021 2022 2023 2028
Slide 39: Q&A
Q&A Joel Smejkal Jeff Webster President & Executive Vice President & Chief Executive Officer Chief Operating Officer
Slide 40: Break
Break
Slide 41: Silicon Carbide Strategy
Coming Up Silicon Carbide Strategy
Slide 42: Silicon Carbide Strategy
04 Silicon Carbide Strategy R O Y S H O S H AN I Chief Technical Officer
Slide 43: Driving Innovation
Technical Customer Engagement Solutions focus Enhanced Driving R&D execution Innovation Universities & R&D institutes collaboration Increased investment
Slide 44: Power SiC Device Market
Power $M $10,000 MARKET SIZE SiC device Market $8,000 $6,000 $4,000 $2,000 $0 2020 2021 2022 2023 2024 2025 2026 2027 2028 * Based on Yole Intelligence 2024
Slide 45: SiC Market & Applications
SiC E-MOBILITY SUSTAINABILITY Market & AUTOM OTIVE INDUSTRIAL Applications Onboard charger Solar Main inverter Motor drives DC/DC converter Heat pumps Heat pumps EV charging Energy storage systems Datacenters power supply
Slide 46: Innovating SiC Strategy
DEVICE PACKAGE INTEGRATION/SOLUTION Innovating SiC Strategy MOSFET Discrete 650V, 750V, 1200V, 1700V Power packages Schottky Diode Known Good Die Power Modules 650V, 1200V
Slide 47: Laying the foundation of SiC
Laying the foundation of SiC MaxPower Highly skilled & experienced team Acquisition 2026 MaxSiC4 Extensive IP 2025 MaxSiC3 2023 Proven MOSFET MaxSiC2 technologies for both 2018 Planar & Trench MaxSiC1
Slide 48: Trench vs. Planar MOSFET Structure
Trench vs. Planar PLANAR MOSFET TRENCH MOSFET MOSFET Structure Source Metal Poly Silicon Source Metal N+ N+ N+ P+ P+ P P P P N P N P Shiel d Drift Region Drift Region Buffer N+ Buffer N+ N++ Substrate N++ Substra te Drain Metal Drain Metal
Slide 49: Planar SiC MOSFET Device Structure & Design
SINGLE CELL CROSS SECTION DIE LAYOUT Planar SiC MOSFET Device Structure & Design 6 µm - 4.8 µm DIE WAFER
Slide 50: Trench SiC MOSFET Device Structure & Design
SINGLE CELL CROSS SECTION DIE LAYOUT Trench SiC MOSFET Device Structure & Design 3.2 µm - 1.8 µm DIE WAFER
Slide 51: SiC MOSFET RON Area Development
S P E C I F I C O N - R E S I S T A N C E , R ON. A ( m Ω - c m 2) VISHAY GEN2 SiC MOSFET VISHAY GEN3 VISHAY GEN4 RON Area Development
Slide 52: Dual Shielded Trench MOSFET Advantages
Enhanced reliability Rugged design with maximum efficiency Dual Shielded Trench Improved performance MOSFET Scalable for future roadmap Advantages Simplified process Compared to other trench competitors
Slide 53: SiC Operations Strategy
SiC Operations SiC Substrate EPI FAB Packaging Test Power Module Strategy Vishay Owned Hybrid model Factories Combined Vishay operations and foundry partners Diversified supply chain Supporting customer resilience Partners Foundry & Subcontractor
Slide 54: SiC Production Plan
PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 SiC Production Planning Development Qualification 6” Production 8” Production Plan Planning stage Module development Qualification 6” Production line 8” Production line Capability Production 8” Pilot line Process integration ramp up Capacity Yield optimization
Slide 55: SiC Operation Plan
FAB EPI SUBSTRATE MODULE Newport, Wales, UK Borgaro, Italy SiC ► Clean room space enable ► Up to 50,000 ft2 ► Engaged with ► Transfer mold line Operation capacity up to 30k 8-inch of available room 4 suppliers for wafers per month space within the Long-Term campus Agreement supply Plan ► 3 phase cap
Slide 56: Highly experienced SiC support team
Highly Reliability Device experienced SiC Leading professor with over 30 years Leading professor with over 20 years support team experience in SiC device & reliability experience in SiC device EPI Substrate Leading PhD with over 25 years Leading professor with over 30 years experience in SiC EPI exp
Slide 57: SiC Growth Plan
MARKET SHARE SiC 5% Growth Plan 2023 2028
Slide 58: Product and Technology Development Plans
Coming Up Product and Technology Development Plans
Slide 59: Product and Technology Development Plans
05 Product and Technology Development Plans R O Y S H O S H AN I Chief Technical Officer
Slide 60: Driving Innovation
Technical Customer Engagement Solutions focus Enhanced Driving R&D execution Innovation Universities & R&D institutes collaboration Increased investment
Slide 61: Innovation Reference Designs
Innovation Reference Designs
Slide 62: 11kW On Board Charger - Reference Design
11kW On Board Charger - Reference Design RESONANT TRANSFORMERS SAFETY CAPACITORS DC-LINK FILM CAPACITORS E RESONANT FILM OUTPUT FILTER COMMON MODE CHOKE & PFC SHUNTS CAPACITORS INDUCTORS IHLP CHOKE VISHAY content > 90% of total OBC Bill of Material
Slide 63: 3.2kW On Board Charger for low speed 48V EV - Reference Design
3.2kW On Board Charger for low speed 48V EV - Reference Design COMMON MODE CHOKE CDMA THICK FILM RESISTOR SAFETY FILM CAPACITORS PFC INDUCTOR SHUNT PTC FOR IN-RUSH 0 CURRENT PROTECTION DC-LINK ALUMINUM CAPACITORS OUTPUT INDUCTOR RESONANT FILM RESONANT CAPACITORS TRANSFORMER VISHAY content > 70% (310
Slide 64: 25kW Traction Inverter - Reference Design
25kW Traction Inverter for micromobility, low speed 48V EV - Reference Design SHOTTKY DIODE E-FUSE POWER-IC MOSFET PPAK8x8L TOP SIDE COOLING ALUMINUM POLYMER HYBRID WSLP SHUNT CAPACITOR RESISTOR VISHAY content > 60% (390 components) of total Bill of Material
Slide 65: 800V Heat Pump power stage inverter - Reference Design
800V Heat Pump power stage inverter - Reference Design F I LT E R S S i C M O S F E Ts S A F E T Y C A PA C I T O R S FILM C A PA C I T O R S SHUNT RESISTORS
Slide 66: Innovation Focus Applications
Innovation Focus Applications
Slide 67: Optical Sensors for E-Mobility
Human Machine Interface (HMI) Driver Monitoring Optical Sensors for E-Mobility Force Sensing Display Dimming Astral Series - VSMAxx High Power Infra-red LEDs Smart Glass Rain Light Sensor VEML6031X00 Ambient Light Sensor Turn Knobs Smart Mirror VCNL4030X01 TCUT1630X01 Heads Up Display Proximity & Tr
Slide 68: Optoelectronics for E-Mobility
EV Charger On Board Charger Optoelectronics for E-Mobility VOMA617A VOMA617A 400V, 800V, 1500 V 400V, 800V, 1500 V Wall Box Optocoupler, Optocoupler, Phototransistor Phototransistor VCLN4200 Proximity / ALS E - Fuse Pre - Charge Ground Separation Cell Balancing Pre-Charge On Board Charger VOMDA1271
Slide 69: MOSFETs for E-Mobility
48V POWER SYSTEMS LEADING TECHNOLOGIES Leading P-Ch Gen IV Starter Generator MOSFET, 40V, 60V, 80V, 100V Load switches and BLDC Inverters MOSFETs for Battery Management E-Mobility Leading N-Ch Gen V MOSFET, Low resistance and optimized 40V / 60V / 80V / 100V / 150V switching losses Smart Electric O
Slide 70: Vishay MOSFET Technology landscape
Silicon (Si) Super Junction VISHAY MOSFET Technology SiC landscape IGBT GaN
Slide 71: M&A Strategy
M&A Strategy Innovation, technology, Accelerate engineering talent profitable growth portfolio expansion Synergies Strategic acquisitions Vertical integration Highly accretive enhances organic growth for improved cost and supply guarantee
Slide 72: CTO Summary
Enhance Increased Acceleration Strategic technical design of R&D acquisitions customer opportunities programs CTO engagement Summary
Slide 73: Financial Targets & Capital Allocation
Coming Up Financial Targets & Capital Allocation
Slide 74: Financial Targets & Capital Allocation
06 Financial Targets & Capital Allocation D AV E M C C O N E L L Chief Financial Officer
Slide 75: Accelerating revenue growth
Accelerating revenue growth TO TAL REVENUE SEMICONDUCTOR PASSI VES $/B CAGR $/B $/B 6 9–11% 4 4 CAGR CAGR 10–12% 8–10% 3.4 1.7 1.7 0 0 0 2023 2028 2023 2028 2023 2028
Slide 76: Growth in all business segments
Growth in all business segments MOSFETS CAGR DIODES CAGR OPTO CAGR $/M 12-14% $/M 8-10% $/M 10-12% 2500 1500 500 691 243 779 0 0 0 2023 2028 2023 2028 2023 2028 RESISTORS INDUCTORS CAPACI TORS CAGR CAGR CAGR $/M 2000 8-10% $/M 600 8-10% $/M 900 7-9% 843 347 499 0 0 0 2023 2028 2023 2028 2023 2028
Slide 77: Improving Gross Margin
G RO SS M ARG I N EXPANSI O N 31–33% Improving Gross Margin 29% 2023 Volume ASP Cost Depreciation Other 2028 Target Reductions/ Efficiencies
Slide 78: Managing SG&A Investments
SG &A AS % REVENUE 20% 14% Managing 12% SG&A Investments 0% 2023 2028
Slide 79: Investing for higher cash generation
Investing for higher cash generation O PERATI NG CASH FLO W CAPEX FREE CASH FLO W $/M $/M $/M 1200 600 700 600 1000 500 500 800 400 400 329 600 300 300 366 184 200 400 200 100 37 200 100 0 0 0 -100 2023 2024 2025 2026 2027 2028 2023 2024 2025 2026 2027 2028 2023 2024 2025 2026 2027 2028 CapEx Deprec
Slide 80: Capital Allocation Strategy
Capital CAPI TAL STOCKHOLDER M&A EXPENDITURES RETURNS Allocation 2023-2025 Target to distribute Highly selective & Strategy accretive $1.4B ≥70% Focused on of free cash flow to 2028 Available Innovation liquidity of ~$2B 2023-2028 stockholders Technology in the form of dividends $2.6B Compliance net
Slide 81: Tax Strategy
ADJUSTED INCOME TAX RATE COMPONENTS 25% 22.9% 22.9% 20% 15% Tax 10% Strategy 5% 5.2% 2.8% 2.4% 3.1% 2.4% 0% -1.6% -5% 2023 - 29.3% 2028 - 30.8% By Country Pre-tax Income Impact – German cash repatriation Impact – Israel cash repatriation Other
Slide 82: Financial Goals
TOTAL REVENUE GROSS M ARGIN OPERATING M ARGIN 2028 Financial 2023 2023 2023 $3.4B 28.6% 14.3% Goals CAGR 9-11% 31–33% 19–21% ADJ. EBITDA M ARGIN ROIC CAPITAL INTENSITY 2023 2023 2023 19.5% 11.2% 9.7% 25–27% ≥14% 6–7%
Slide 83: Closing Remarks
Coming Up Venay Closing Remarks
Slide 84: Closing Remarks
Closing Remarks
Slide 85: A New Vishay
Customer First A New Vishay… Business Minded A Well Funded Start Up Growth Driven
Slide 86: Q&A
Q&A Joel Smejkal Jeff Webster Dave McConnell Roy Shoshani President & Executive Vice President & Executive Vice President Executive Vice President Chief Executive Officer Chief Operating Officer & Chief Financial Officer Chief Technical Officer
Slide 87: Appendix: Reconciliation of EBITDA and Free Cash
VISHAY INTERTECHNOLOGY, INC. Reconciliation of EBITDA and Adjusted EBITDA (Unaudited - In thousands) Year ended December 31, 2023 GAAP net earnings attributable to Vishay stockholders $ 323,820 Net earnings attributable to noncontrolling interests 1,693 Net earnings $ 325,513 Interest expense $ 25,1