Slide 1: Q4 2023 Earnings Release
Q4 2023 EARNINGS RELEASE January 30, 2024 1
Slide 2: Disclaimers
DISCLAIMERS Important Information About Littelfuse, Inc. This presentation does not constitute or form part of, and should not be construed as, an offer or solicitation to purchase or sell securities of Littelfuse, Inc. and no investment decision should be made based upon the information provided he
Slide 3: Business Update
BUSINESS UPDATE Dave Heinzmann, President & CEO
Slide 4: Executive Summary
EXECUTIVE SUMMARY Resilient performance & record cash generation Revenue $2.4 billion -6% YoY despite channel destocking; reflects portfolio diversification, technology leadership Adj. Operating Margin 16.5%; reflects continued focus on operational execution Record cash generation Secure
Slide 5: 2021 – 2025 Growth Strategy
2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our capabilities, investments & diversification deliver significant value Littelfuse, Inc. © 2024 5
Slide 6: Revisiting Our 2021 – 2025 Framework
REVISITING OUR 2021 – 2025 FRAMEWORK EXECUTING ON OUR GROWTH STRATEGY CAPITAL REVENUE EARNINGS CASH FLOW ROIC ALLOCATION • Double-digit • EPS growth • 100%+ free • 5-year goal: • Return 40% revenue > revenue cash flow high-teens of free cash CAGR growth conversion ROIC % flow to shareholders • 17 –
Slide 7: Electronics End Markets
ELECTRONICS END MARKETS RESILIENT PERFORMANCE, LONG-TERM TAILWINDS 2023 Highlights Benefiting from increasingly diversified portfolio & technology leadership Continued execution driving resilient Electronics margins Expecting destocking to continue into the year…return to growth during 2024
Slide 8: Industrial End Markets
INDUSTRIAL END MARKETS MEANINGFUL TRACTION ACROSS DIVERSE SECTORS 2023 Highlights Breadth of technical expertise driving momentum across broad base of industrial sector exposures Strength from energy storage, industrial drives & power supplies Near term softness – HVAC, construction Customer
Slide 9: Transportation End Markets
TRANSPORTATION END MARKETS WELL ROUNDED TECHNOLOGY LEADERSHIP 2023 Highlights Balanced content momentum driving strong global passenger vehicle growth Ongoing electrification & core low voltage momentum Electronification remains key secular growth theme Strong core product traction in China
Slide 10: Financial Update
FINANCIAL UPDATE Meenal Sethna, EVP & CFO
Slide 11: Q4 2023 Total Company Financial Performance
Q4 2023 TOTAL COMPANY FINANCIAL PERFORMANCE (in millions) Revenue Highlights Revenue (-13%) vs PY, Organic (-14%) F/X +1% GAAP op margin 12.1%; Adj op margin $613 $534 13.2%, (-420bps) vs PY Operating cash flow $144m; Free cash flow $121m Q4-22 Q4-23 GAAP EPS $3.74 $1.71 Effective tax rate
Slide 12: FY 2023 Total Company Financial Performance
FY 2023 TOTAL COMPANY FINANCIAL PERFORMANCE (in millions) Revenue Highlights Revenue (-6%) vs PY, Organic (-10%) GAAP op margin 15.3%; Adj. op margin 16.5%, (-520bps) vs PY $2,514 $2,363 Ex. F/X impact, ~17% adj. op margin Effective tax rate: GAAP 21.0%; Adj. 20.1% +150bps higher than proj
Slide 13: Q4 2023 Electronics Segment Financial Performance
Q4 2023 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE (in millions) Q4 2023 Revenue FY 2023 Revenue $371 $1,493 $1,350 $298 Q4-22 Q4-23 FY-22 FY-23 Op Margin 24.8% 18.0% Op Margin 28.9% 22.3% EBITDA% 29.9% 24.7% EBITDA% 33.5% 28.1% Revenue (-20%) / Organic (-21%) Revenue (-10%) / Organic (-16%) Co
Slide 14: Q4 2023 Transportation Segment Financial Performance
Q4 2023 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE (in millions) Q4 2023 Revenue FY 2023 Revenue $716 $678 $168 $163 Q4-22 Q4-23 FY-22 FY-23 Op Margin 3.5% 4.7% Op Margin 8.9% 5.0% EBITDA% 10.1% 10.8% EBITDA% 15.0% 11.2% Revenue (-3%) / Organic (-5%) Revenue (-5%) / Organic (-5%) Passenger v
Slide 15: Q4 2023 Industrial Segment Financial Performance
Q4 2023 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE (in millions) Q4 2023 Revenue FY 2023 Revenue $334 $74 $73 $305 Q4-22 Q4-23 FY-22 FY-23 Op Margin 12.0% 12.7% Op Margin 16.0% 16.4% EBITDA% 14.9% 18.2% EBITDA% 18.9% 21.1% Revenue (-1%) / Organic (-5%) Revenue +10% / Organic +5% Weaker end marke
Slide 16: Q1 2024 Guidance
Q1 2024 GUIDANCE (in millions) Revenue Highlights Expect market challenges to continue into 2024 Electronics & Comm. Vehicle…channel inventory destocking Further weakness in industrial end markets $610 $534 Consumer market & China remain soft $530 - $505 Q1 Sales: $505m - $530m (-15%) vs
Slide 17: Full Year 2024 Considerations / Expectations
FULL YEAR 2024 CONSIDERATIONS / EXPECTATIONS F/X – immaterial impact to FY sales / ~$.07 earnings headwind at current rates 2024 Sales & Margin assumptions Return to sales growth during 2024, despite portfolio pruning headwind ~2 - 3% Company impact ~6 - 8% Transportation Segment impact (h
Slide 18: Diversification Delivers Double-Digit Revenue & Earnings CAGR
DIVERSIFICATION OF TECHNOLOGIES, END MARKETS & GEOGRAPHIES DELIVERS DOUBLE-DIGIT REVENUE & EARNINGS CAGR Expanding leadership in 15-year* CAGR: core markets while Sales +10% prioritizing strategic EPS +18% investments to bolster diversified portfolio Flexible cost structure drives improved profi
Slide 19: Appendix
APPENDIX Littelfuse, Inc. © 2024 19
Slide 20: Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION Littelfuse, Inc. © 2024 20
Slide 21: Supplemental Financial Information Cont'd
SUPPLEMENTAL FINANCIAL INFORMATION CONT’D Littelfuse, Inc. © 2024 21
Slide 22: Supplemental Financial Information Cont'd
SUPPLEMENTAL FINANCIAL INFORMATION CONT’D Littelfuse, Inc. © 2024 22
Slide 23: Supplemental Financial Information Cont'd
SUPPLEMENTAL FINANCIAL INFORMATION CONT’D Littelfuse, Inc. © 2024 23
Slide 24: Supplemental Financial Information Cont'd
SUPPLEMENTAL FINANCIAL INFORMATION CONT’D Littelfuse, Inc. © 2024 24
Slide 25: Supplemental Financial Information Cont'd
SUPPLEMENTAL FINANCIAL INFORMATION CONT’D Littelfuse, Inc. © 2024 25