Slide 1: 4Q 2023 Earnings Conference Call
4Q 2023 Earnings Conference Call February 7, 2024 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..
Slide 2: Notes on Forward-Looking Statements
NOTES ON 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 simil
Slide 3: Revenue Mix – By End Market, Sales Channel, & Region
Revenue Mix – By End Market, Sales Channel, & Region End Market Sales Channel Region 5% 4% 4% 100% 6% 7% 8% 9% 8% 7% 25% 25% 31% 80% 15% 16% 20% 43% 42% 37% 60% 38% 38% 37% 37% 31% 36% 40% 51% 51% 55% 20% 34% 35% 38% 37% 37% 33% 0% 4Q23 3Q23 4Q22 4Q23 3Q23 4Q22 4Q23 3Q23 4Q22 Industrial Automotive O
Slide 4: 4Q 2023 Highlights
4Q 2023 Highlights • 4Q 2023 revenues of $785.2 million Total Revenues ($M) 950 • 4Q 2023 EPS of $0.37 900 853.7 855.3 • 4Q 2023 book-to-bill of 0.75 850 800 785.2 • Backlog at quarter end was 5.3 months 750 700 • Returned a total of $34.8 million to stockholders 650 600 • FY 2023 capex of $329.4 mi
Slide 5: 4Q 2023 Income Statement Highlights
4Q 2023 Income Statement Highlights Adjusted Net Earnings 4Q 2023 vs 3Q 2023 $M • Gross margin of 25.6% 90 84 $M 90 80 80 (4) 70 70 • SG&A expenses of $122.8 million 60 2 51 60 3 50 50 (27) 40 (0) 40 (6) • Operating margin of 9.9% 30 30 20 20 10 10 • EBITDA margin of 16.3% 0 0 • EPS of $0.37 © VISHA
Slide 6: Segment Results ($/M)
Segment Results ($/M) MOSFETs Diodes Opto Gross Book to Gross Book to Gross Book to Revenues Revenues Revenues Margin Bill Margin Bill Margin Bill 4Q 2023 $168.2 27.3% 0.62 4Q 2023 $163.3 24.1% 0.61 4Q 2023 $53.9 12.1% 0.59 3Q 2023 $205.0 33.5% 0.50 3Q 2023 $176.8 26.7% 0.58 3Q 2023 $64.4 28.1% 0.57
Slide 7: Cash Conversion Cycle
Cash Conversion Cycle DSO DIO 55 105 50 100 45 40 95 35 90 30 25 85 4Q23 3Q23 4Q22 4Q23 3Q23 4Q22 DPO Cash Conversion Cycle 34 130 32 120 30 110 100 28 90 26 80 24 70 22 60 20 50 4Q23 3Q23 4Q22 4Q23 3Q23 4Q22 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 7
Slide 8: History of Strong Cash Flow Generation
History of Strong Cash Flow Generation Cash Flow from Operations ($/M) Capex ($/M) 180 550 160 400 160 140 500 350 140 120 120 300 450 100 100 250 400 80 80 60 200 60 350 40 40 150 20 300 20 100 0 TTM TTM 0 TTM TTM 4Q23 3Q23 4Q22 2023 2022 4Q23 3Q23 4Q22 2023 2022 Free Cash Flow ($/M) Stockholder Re
Slide 9: Guidance
Guidance • 1Q 2024 total revenue range of $735 million +/- 20 million. • 1Q 2024 gross profit margin range: 24.0% +/- 50 basis points. • 1Q 2024 SG&A: $130 million plus/minus $2 million. FY 2024 approx. $528 million plus/minus $5 million (at current exchange rates). • FY 2024 normalized effective ta
Slide 10: Near Term Initiatives
Near Term Initiatives 1. Develop go-to-market strategies for 30 key product lines across all business segments 2. Increase capacities • Internal: capex of $329 million in 2023, primarily on expansion projects • External: outsource production of commodity products to subcontractors 3. Enhance channel
Slide 11: 2023 Takeaways
2023 Takeaways By the end of 2023 650V and 1200V Implemented go-to- Qualified planar SiC Prepare 3-year market strategies subcontractors MOSFETs samples strategic plan for 30 key products available © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 11
Slide 12: Appendix
APPENDIX © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..
Slide 13: More than 60% of Revenues for Non-Commodity and Custom
More than 60% of Revenues for Non-Commodity and Custom 12 Trailing Months 4Q23 100% Hundreds 15% 22% 29% 80% 31% 18% 43% 60% 40% 52% 47% 20% 42% 0% Vishay Total Passives Semiconductors Non-commodity Commodity Custom Commodity products: completely interchangeable with competitors’ products Non-commod
Slide 14: Broad Customer Base
Broad Customer Base OEM EMS DISTRIBUTION © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 14
Slide 15: Broadest Line of Discrete Semiconductors and Passive Components
BROADEST LINE OF DISCRETE SEMICONDUCTORS AND PASSIVE COMPONENTS INDUCTORS Source: Company estimates = Major Position = Minor Position © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 15
Slide 16: P&L 4Q 2023
P&L In millions, except per share amounts 4Q 2023 3Q 2023 4Q 2022 Net revenues $785.2 $853.7 $855.3 Cost of products sold 584.6 616.0 606.2 Gross profit 200.7 237.6 249.1 Gross margin 25.6% 27.8% 29.1% SG&A 122.8 122.5 113.8 Operating income 77.8 115.1 135.3 Operating margin 9.9% 13.5% 15.8% Other i
Slide 17: P&L FY 2023
P&L In millions, except per share amounts FY 2023 FY 2022 Net revenues $3,402.0 $3,497.4 Cost of products sold 2,427.6 2,438.4 Gross profit 974.5 1,059.0 Gross margin 28.6% 30.3% SG&A 488.3 443.5 Operating income 486.1 615.5 Operating margin 14.3% 17.6% Other income (expense): Interest expense (25.1
Slide 18: Reconciliation of GAAP net earnings to Adjusted net earnings
Reconciliation of GAAP net earnings to Adjusted net earnings In millions, except for per share amounts 4Q 2023 3Q 2023 4Q 2022 GAAP net earnings attributable to Vishay stockholders $51.5 $65.5 $72.8 Reconciling items affecting other income (expense): Loss on early extinguishment of debt - 18.9 - Rec
Slide 19: Reconciliation of GAAP net earnings to Adjusted net earnings
Reconciliation of GAAP net earnings to Adjusted net earnings In millions, except for per share amounts FY 2023 FY 2022 GAAP net earnings attributable to Vishay stockholders $323.8 $428.8 Reconciling items affecting gross profit: Impact of the COVID-19 pandemic - 6.7 Other reconciling items affecting
Slide 20: Reconciliation of Free Cash
Reconciliation of Free Cash In millions 4Q 2023 3Q 2023 4Q 2022 Net cash provided by operating activities $6.3 $122.3 $166.5 Proceeds from sale of property and equipment 0.1 0.0 0.7 Less: Capital expenditures (145.3) (66.8) (153.1) Free cash $(138.9) $55.5 $14.1 © VISHAY INTERTECHNOLOGY, INC. ALL RI
Slide 21: Reconciliation of Free Cash
Reconciliation of Free Cash In millions FY 2023 FY 2022 Net cash provided by operating activities $365.7 $484.3 Proceeds from sale of property and equipment 1.2 1.2 Less: Capital expenditures (329.4) (325.3) Free cash $37.4 $160.2 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 21
Slide 22: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA In millions 4Q 2023 3Q 2023 4Q 2022 GAAP net earnings attributable to Vishay stockholders $51.5 $65.5 $72.8 Net earnings attributable to noncontrolling interests 0.5 0.4 0.4 Net earnings $52.0 $66.0 $73.2 Interest expense $6.5 $7.2 $4.5 Interest income (9
Slide 23: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA In millions FY 2023 FY 2022 GAAP net earnings attributable to Vishay stockholders $323.8 $428.8 Net earnings attributable to noncontrolling interests 1.7 1.7 Net earnings $325.5 $430.5 Interest expense $25.1 $17.1 Interest income (31.4) (7.6) Income taxes
Slide 24: Net Earnings Adjusted – 4Q 2023 vs 4Q 2022
Net Earnings Adjusted – 4Q 2023 vs 4Q 2022 $M $M 120 120 99 1 100 100 80 80 51 60 60 2 10 0 (51) 40 40 (9) 20 20 0 0 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 24
Slide 25: Vishay – The DNA of tech.
Vishay – The DNA of tech. TM © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..