Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Investor Presentation (January 2017)
14 slides from Vishay Precision's investor presentation, January 2017
Slide 1: Vishay Precision Group
Vishay Precision Group January 2017
Slide 2: Safe Harbor Statement
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 Ac
Slide 3: Company Overview
Company Overview Major Manufacturing Footprint • A niche resistive sensor technology company providing components, sensors, and sensor-based solutions to multiple, growing markets. • Approximately 2,150 employees. • Three reporting segments: Foil Technology Products, Force Sensors, Weighing and Cont
Slide 4: Our Business Segments
Our Business Segments Force Sensors Foil 26% 2015A Revenue Technology Products $232 million 45% Weighing & Control Systems 29% Foil Technology Products(1) Force Sensors Weighing & Control Systems(1) Foil resistor and strain gage products based Load cells and force measurement Systems comprised of lo
Slide 5: Overview of Business Segments
Overview of Business Segments Foil Technology Products Force Sensors Strain gage based product lines including load cells, Foil Resistors Foil Strain Gages and DAQ integrated weighing system subassemblies, weighing Stable and precise resistors for critical electronic Precision sensors for meas
Slide 6: Overview of Business Segments
Overview of Business Segments Weighing & Control Systems Process Weighing & Force Measurement Onboard Weighing Steel Mill Systems High-end solutions for process weighing and batching Load cell-based and accelerometer-based integrated State-of-the-art electro-mechanical systems and load with hi
Slide 7: Strategy
Strategy ORGANIC TOP-LINE GROWTH MID-SINGLE DIGITS IN ga IMPROVED GLOBAL ECONOMIC ENVIRONMENT SCALABLE BUSINESS MODEL COST STRUCTURE TO LEVERAGE THE BENEFIT OF HIGHER VOLUMES ACQUISITIONS TARGET: * ~$5-60M; >35% GROSS MARGIN + MID-TEENS IRR HURDLE RATE * ACCRETIVE WITHIN 12 MONTHS vPo> PERFORMANCE T
Slide 8: New Product Success
New Product Success VPG has a proven track record of success in bringing innovative, relevant products and technologies to market that address market needs VanWeigh / TruckWeigh Advanced Sensors In 2012, VPG launched its VanWeigh and TruckWeigh Launched in 2012 with VPG sampling new gages with p
Slide 9: Efficient Cost Structure
Efficient Cost Structure Cost structure in place to accelerate earnings growth • November 2015 announced a global cost reduction program. • Savings of approximately $6M pre-tax income. • March 2016 announced closure of Costa Rica manufacturing facility. • Savings of approximately $0.7M in 2016 pre-t
Slide 10: Overview of Capital Expenditures
Overview of Capital Expenditures Near-term increase in capital expenditure driven by investments in infrastructure and product innovation along with restructuring initiatives will optimize VPG’s long-term cost structure and operational scalability Capital Expenditures Capital Expenditures by Type G&
Slide 11: Cash Generation
Cash Generation Cash paid for restructuring: $0.0 $0.5 $0.4 $2.0 $3.6 11
Slide 12: Acquisitive Growth
Acquisitive Growth VPG has a successful track record supplementing organic growth with opportunistic acquisitions of market leaders and technological innovators Announced acquisition of George Kelk Corp. (“Kelk”) on December 18, 2012 for ~$50 million Produces mission critical measure and control
Slide 13: Q3 2016 Highlights
Q3 2016 Highlights • Third quarter earnings per diluted share of $0.08. • Adjusted earnings per diluted share of $0.21. • Cash generated from operations for the third quarter of 2016 was $6.3 million and free cash flow was $4.5 million. • Force Sensors segment achieved gross profit margins of 31.0%
Slide 14: Thank you!
Thank you! 14
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