Slide 1: Earnings Call Presentation Fourth Quarter 2023
Earnings Call Presentation Fourth Quarter 2023 February 13, 2024 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 © 2024 I
Slide 2: Note Regarding Forward Looking Statements and Use of Non-GAAP Financials
Note Regarding Forward Looking Statements and Use of Non-GAAP Financials 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 unce
Slide 3: Q4 '23 Highlights
Q4 '23 Highlights • Growth in welding, cleaning, 3D printing and medical was offset by soft industrial THE WORLD demand and lower sales to e-mobility and solar cell manufacturing LEADER IN FIBER LASERS ◦ Q4 revenue declined 10% YoY due to lower revenue in cutting applications in China and Europe; FX
Slide 4: Financial Review
Financial Review • Gross margin increased driven by the In millions except per share Q4 '23 Q4 '22 Y/Y Q3 '23 Q/Q absence of inventory related charges and lower shipping costs and tariffs, Revenue $298.9 $333.5 (10)% $301.4 (1)% offset by lower manufacturing cost absorption and higher cost of produc
Slide 5: Revenue by Power
Revenue by Power • High power (more than 1kW) sales declined due to lower sales 140 in cutting applications in China and Europe; sales of ultra-high power lasers (more than 6kW) represented 48% of high power 120 lasers • Pulsed lasers sales declined due to lower demand in solar cell 100 manufacturin
Slide 6: Revenue by Geography
Revenue by Geography 120 300 100 250 80 200 In millions In millions 60 150 40 100 20 50 0 0 North America Europe China Other Asia China RoW Q4 '22 Q3 '23 Q4 '23 Q4 '22 Q4 '23 • Sales decreased modestly in North America year over year due to lower demand in cutting applications, partially offset by g
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q4 '23 • Returning capital to shareholders while maintaining a strong balance sheet Cash and Short-term Investments $1,177 • Focusing on inventory management Inventories $454 • Capital Allocation • Using cash to fund future growth opportunities by Tota
Slide 8: Balance Sheet and Cash Flow Generation
Balance Sheet and Cash Flow Generation Operating Cash Flow and Capital Allocated Exceptional Balance Sheet 400 1,500 300 200 100 1,000 0 In millions In millions -100 500 -200 -300 -400 0 -500 -600 -700 -500 2022 2023 Dec 2022 Dec 2023 YTD Cash from operations Cash and cash equivalents YTD CapEx Shor
Slide 9: Financial Guidance
Financial Guidance Q1 '24 Outlook • Q4 book-to-bill was below 1 Revenue $235M - $265M Gross Margin 37% - 40% Operating Expenses $80M - $83M EPS $0.30 - $0.60 Tax Rate ~25% Diluted common shares ~46M VERTICAL INTEGRATION PROVIDES COMPETITIVE EDGE © 2024 IPG Photonics 9
Slide 10: Vertical Integration Provides Competitive Edge
VERTICAL THE WORLD INTEGRATION LEADER IN PROVIDES FIBER LASERS COMPETITIVE EDGE EXPANDING ENABLING LASER & GREATER DISPLACING AUTOMATION NON-LASER APPLICATIONS STRONG HIGH ELECTRICAL MARGINS, EFFICIENCY ENABLES BALANCE SHEET LOWER CUSTOMER & CASH FLOW ENERGY USE © 2024 IPG Photonics 10
Slide 11: Thank you
Thank you © 2021 IPG Photonics