Littelfuse, Inc. · NASDAQ:LFUS

Littelfuse — Investor Day (December 2016)

78 slides from Littelfuse's investor day presentation, Dec 9, 2016

  1. Slide 1: Littelfuse 2016 Analyst & Investor Day

    Littelfuse 2016 Analyst & Investor Day December 9, 2016 1

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements 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 informat

  3. Slide 3: Speaker Lineup

    Speaker Lineup Delivering Shareholder Value Capitalizing on Growth in Electronics and Driving Innovation Gordon Hunter Ian Highley Chairman of the Board of Directors, Senior Vice President, General Manager President and Chief Executive Officer and Chief Technology Officer Building on Success and Fin

  4. Slide 4: Reiterating Our Q4 2016 Guidance

    Reiterating Our Q4 2016 Guidance* Q4 Revenue $270 - $280 million Q4 Adjusted EPS $1.45 - $1.59 2016 Adjusted Tax Rate 18% *See the Company’s November 3, 2016 press release for further details. Littelfuse provides some guidance on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may inc

  5. Slide 5: Delivering Shareholder Value

    Delivering Shareholder Value Gordon Hunter Chairman of the Board of Directors, President and Chief Executive Officer PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 5

  6. Slide 6: What We Told You Four Years Ago

    What We Told You Four Years Ago: 2012 Corporate Strategy Recap Mission Leverage our global leadership position in circuit protection to double our business by 2017 and become a leader in power control and sensing. Sales Growth 2012-2017 2012-2016F MEGATRENDS PROTECT Targets Pro Forma*  Value of Hum

  7. Slide 7: What We Accomplished: Setting the Foundation for Growth

    What We Accomplished: Setting the Foundation for Growth Created Broadened Diversified Global Sensor Products, Platform, Generating Power Control Geographies and Platform ~$160M of Revenue End Markets Built Foundation for Continued to Strengthen Greater Successful Innovation & Customer & Channel Acqu

  8. Slide 8: Acquisition Recap

    Acquisition Recap: Bolstering Core Business and Establishing New Growth Vectors * PolySwitch ON Semi Portfolio 2012 2013 2014 2015 2015 2016 2016 2016 Core Consolidation   Technology       Geographic / Market Access        Platform Building        Products Commercial IGBT Circu

  9. Slide 9: What We Said and What We Delivered

    What We Said and What We Delivered: Financial Highlights 2012-2016 Double Digit Strong Profit Strong Operating Balanced Capital Sales Growth Margins Cash Flow Allocation 15% revenue CAGR: High teens Return 35% of free Cash flow from cash flow (FCF) to What We 5% organic + operating margin; operation

  10. Slide 10: What We Delivered: Sales Will Exceed $1 Billion in 2016

    What We Delivered: Sales Will Exceed $1 Billion in 2016 ($ in millions) 1000 $1,047* $852 $868 $758 $668 2012 2013 2014 2015 2016F *Based on midpoint of guidance provided in the Company’s November 3, 2016 press release PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 10

  11. Slide 11: What We Delivered: 167% Total Shareholder Return

    What We Delivered: 167% Total Shareholder Return Littelfuse Stock Price December 2, 2016 $146.01 LFUS +167% NASDAQ +76% Littelfuse Stock Price December 10, 2012 S&P 500 +55% $57.00 $3 Billion+ Market Cap Source: Bloomberg PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 11

  12. Slide 12: Leadership Team Delivering Results

    Leadership Team Delivering Results Gordon Hunter Chairman of the Board of Directors, President and Chief Executive Officer Meenal Sethna Dave Heinzmann Ryan Stafford Executive Vice President and Chief Operating Officer Executive Vice President and Chief Chief Financial Officer Legal and Human Resour

  13. Slide 13: Performance-Oriented Culture: Our Winning Formula

    Performance-Oriented Culture: Our Winning Formula PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 13

  14. Slide 14: Go-Forward Strategy: Accelerated Organic Growth

    Go-Forward Strategy: Building On Success to Continue Double Digit Growth Leverage Our Protect Position Within Control Accelerated Global Mega Trends Sense Organic Growth 5% - 7% Grow Accelerate Safety Connectivity Circuit Protection Power Control Complemented with Strategic Double M&A Energy Sensor

  15. Slide 15: Compelling Investment Proposition

    Compelling Investment Proposition: A Proven Source of Growth and Value Creation Strong global partnerships Focus on high margin niches High growth markets Operational excellence Leverage favorable mega trends Strong working capital management Enthusiastic, Double digit revenue growth via Passionate

  16. Slide 16: Building on Success & Industrial Segment Update

    Building on Success & Industrial Segment Update Dave Heinzmann Chief Operating Officer PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 16

  17. Slide 17: Building on Success to Achieve Double Digit Growth

    Building on Success to Achieve Double Digit Growth Safety Energy Efficiency Connectivity Grow Circuit Protection – Accelerate Power Control – Double Sensor Platform Accelerated Organic Growth Complemented with Strategic M&A Underpenetrated Cross- Content & Increased Strategic Geographies & Segment S

  18. Slide 18: Continue to Diversify Portfolio

    Continue to Diversify Portfolio: Accelerate Power Control and Double Sensor Platform Sensors Sensors Sensors Power Circuit Control Protection Power Power Control Control Circuit Protection Circuit Protection 2012 Revenue: 2016F Revenue: 2021 Target: Double Digit $668 million $1,047 million* Annual R

  19. Slide 19: Grow Circuit Protection

    Grow Circuit Protection: Path to Accelerated Organic Growth Underpenetrated Content & Share Gains Innovation Geographies & Markets  Internet of Things  Japan  Next generation products  Automotive electronics  Data center and cloud  Expands served market infrastructure  Electrification of vehi

  20. Slide 20: Accelerated Power Control

    Accelerated Power Control: Path to Accelerated Organic Growth Underpenetrated Content & Share Gains Innovation Geographies & Markets  Rugged, high current and  Commercial vehicle  Power control modules high voltage electrical products beyond North systems America  New material platforms  Power

  21. Slide 21: Double Sensor Platform

    Double Sensor Platform: Path to Accelerated Organic Growth Underpenetrated Content & Share Gains Innovation Geographies & Markets  Occupant safety  Appliances & white goods  Pulse wave guide technology  Solar sensing  Internet of Things  Tunneling magneto  Position sensing  Automotive opport

  22. Slide 22: Investing to Drive Cross-Segment Opportunities

    Investing to Drive Cross-Segment Opportunities: Leveraging Technologies and Customer Relationships Automotive Electronics Automotive Electronics EV / Charging Energy Conversion / Storage & Motor Control Industrial PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 22

  23. Slide 23: Selectively Diversify and Grow

    Selectively Diversify and Grow: Continue to Acquire and Integrate the Right Businesses Core Circuit Consolidation Protection Power Control Technology Commercial Vehicle Products Geographic / Select Market Automotive Industrial Regions Access Sensors Electronics Markets Platform Power Control Buildin

  24. Slide 24: Operational Excellence

    Operational Excellence: A Foundational Element of Our Success; Recognized Externally Lean Six Sigma Culture Association of Manufacturing Supplier Quality Excellence Award Excellence Award Manufacturing Littelfuse New Product Excellence Operating Introduction System Quality Achievement Award Supplier

  25. Slide 25: What We Expect to Deliver

    What We Expect to Deliver: Continued Strong Financial Performance Double Digit Double Digit Free Cash Flow Balanced Capital Sales Growth EPS Growth Approximates Allocation Net Income  5% - 7%  17% - 19%  Strong track record  Return 40% of accelerated organic operating margins of free cash flow f

  26. Slide 26: Industrial Segment Update

    Industrial Segment Update PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 26

  27. Slide 27: Industrial Segment Overview

    Industrial Segment Overview ~$105M 2016F Revenue  ~ $1.5 Billion market* Fuse Products  GDP growth, adjusted for negative impact of oil & gas Protection Relays and mining Market Custom Products Information  Current portfolio largely North America based  Heavy industry  Brand reputation for exce

  28. Slide 28: Industrial Segment Strategy

    Industrial Segment Strategy: Increase Profitability and Assess Acquisition Opportunities Return to Focus on Additional Double Digit Growth Operating Margins Opportunities Expand End Market / Geographic Product Breadth Diversification Via Acquisitions PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016

  29. Slide 29: Why We Will Succeed in Industrial

    Why We Will Succeed in Industrial  Global expansion opportunity  Cross-segment and inorganic growth opportunities  Increased exposure to less cyclical markets  Improved cost structure 2% - 4% Long-Term Organic Revenue Growth PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 29

  30. Slide 30: Extending our Lead in Automotive

    Extending our Lead in Automotive Dieter Roeder Senior Vice President and General Manager PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 30

  31. Slide 31: Automotive Segment Overview

    Automotive Segment Overview ~$415M 2016F Revenue $206M 2012 Revenue Passenger Car Fuse Products Passenger Car Fuse Products Automotive Sensor Products Automotive Sensor Products Commercial Vehicle Products Commercial Vehicle Products PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 31

  32. Slide 32: Automotive Segment Overview

    Automotive Segment Overview ~$415M 2016F Revenue  ~ $2.5 Billion market* Passenger Car Fuse Products  Content increase drives Automotive Sensor Products growth in excess of car Market builds Commercial Vehicle Products Information  OEMs value supply chain on a global basis  Electrification of ve

  33. Slide 33: Automotive Focus Areas

    Automotive Focus Areas: Leveraging Global Reach and Expertise to Increase Product Breadth Power Distribution Sensors Modules in Japanese OEMs Electrification of Commercial and Tier 1s Vehicles Vehicles PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 33

  34. Slide 34: Strategic Growth Opportunity: Volt / Hybrid / EV

    Strategic Growth Opportunity: 48 Volt / Hybrid / EV Have Significantly Higher Content Why the Market is Why Littelfuse Will Growth Plan Attractive Succeed  Significant expected  New product development  Ability to drive growth due to improved  Collaborate with specifications fuel efficiency batt

  35. Slide 35: Automotive Sensor Focus Areas

    Automotive Sensor Focus Areas: Leveraging Positive Market Trends to Drive Growth Market Trends Littelfuse Applications  Solar sensing Comfort & Convenience  Powered tailgate position  Powered application position sensing  Selective Catalytic Reduction level and Efficiency quality sensing  Trans

  36. Slide 36: Strategic Growth Opportunity: Occupant Safety Market

    Strategic Growth Opportunity: Expand Presence in Occupant Safety Market Why the Market is Why Littelfuse Will Growth Plan Attractive Succeed  Safety ratings  Expand existing regional  Brand reputation  Global market growth customer relationships  Established customer globally base  Adjacent ma

  37. Slide 37: Why We Will Succeed in Automotive

    Why We Will Succeed in Automotive  Strong global relationships with OEMs & Tier 1 customers  Brand reputation for quality and safety  Content gains  Leadership in targeted sensor technologies  Global expansion opportunities 7% - 9% Long-Term Organic Revenue Growth PROTECT | CONTROL | SENSE Litt

  38. Slide 38: Break

    Break PROTECT CONTROL SENSE P/4 Littelfuse Expertise Applied | Answers Delivered

  39. Slide 39: Capitalizing on Growth in Electronics and Driving Innovation

    Capitalizing on Growth in Electronics and Driving Innovation Ian Highley Senior Vice President, General Manager, and Chief Technology Officer PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 39

  40. Slide 40: Electronics Segment Overview

    Electronics Segment Overview ~$525M 2016F Revenue $329M 2012 Revenue Passive Products Passive Products Semiconductor Products Semiconductor Products Sensor Products PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 40

  41. Slide 41: Electronics Segment Overview

    Electronics Segment Overview ~$525M 2016F Revenue  ~ $4.0 Billion market* Passive Products  Growing number of applications Semiconductor Products requiring circuit protection Market Sensor Products Information  Market need for innovative power control products  Electronification  Brand strength

  42. Slide 42: Global Channel Partnerships

    Global Channel Partnerships: Provide Competitive Advantage Profitable, growing business Long “tail” Strong New product Difficult to for channel of customers mindshare introduction replicate partners & Regional Distributors PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 42

  43. Slide 43: Electronics Focus Areas

    Electronics Focus Areas: Diversified Set of Global Growth Opportunities Automotive Industrial IoT LED Lighting Appliances Electronics LED Lighting PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 43

  44. Slide 44: Strategic Growth Opportunity: Industrial – IGBT & Silicon Carbide

    Strategic Growth Opportunity: Industrial – IGBT & Silicon Carbide Why the Market is Why Littelfuse Will Growth Plan Attractive Succeed  Market growth driven by  Focus on high power devices –  Well established access to improved power conversion IGBT and Silicon Carbide OEMs & service reputation e

  45. Slide 45: Strategic Growth Opportunity: Automotive Electronics

    Strategic Growth Opportunity: Automotive Electronics Why the Market is Why Littelfuse Will Growth Plan Attractive Succeed  Strong market growth  Leverage Tier 1 relationships  Customer relationships  Energy conservation and  Dedicated global organization  Compliance expertise emissions reducti

  46. Slide 46: Why We Will Succeed in Electronics

    Why We Will Succeed in Electronics  Global leader in circuit protection with broadest product portfolio  Deep channel partnerships and direct touch with strategic OEMs  Diversity of customer base and end markets  Differentiated technologies for power control  Cost competitive global manufacturi

  47. Slide 47: Driving Innovation

    Driving Innovation PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 47

  48. Slide 48: Innovation: Driving Accelerated Organic Growth

    Innovation: Driving Accelerated Organic Growth GOAL APPROACH RESULTS  Meet future market  Balance short and  Accelerated requirements long-term focus organic growth  Extend existing  Leverage expertise  Higher margins technologies in new across business through markets segments differentiation

  49. Slide 49: Innovation Growth Opportunity: Silicon Carbide Power Semiconductors

    Innovation Growth Opportunity: Silicon Carbide Power Semiconductors Opportunity Action Result  Silicon Carbide has inherent  Investment in Monolith  New product platform launches performance benefits and Semiconductor to access  MOSFET switching device improves system costs technology  Schottky

  50. Slide 50: Innovation Growth Opportunity: Magnetic Sensing

    Innovation Growth Opportunity: Magnetic Sensing Opportunity Action Result  Tunneling magneto resistance  Cross-business unit project to  TMR devices now being (“TMR”) for sensing provides evaluate external partnerships designed into systems for advantages over Hall effect speed, position, directi

  51. Slide 51: Why We Will Succeed

    Why We Will Succeed  Commitment to innovation to accelerate organic growth  Leverage technologies across businesses to grow pipeline  Phased approach and diverse portfolio to mitigate risk  Acquisitions / partnerships to supplement organic development PROTECT | CONTROL | SENSE Littelfuse, Inc. ©

  52. Slide 52: Financial Strategy for Exceptional Performance

    Financial Strategy for Exceptional Performance Meenal Sethna Executive Vice President and Chief Financial Officer PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 52

  53. Slide 53: Strong Track Record of Revenue Growth

    Strong Track Record of Revenue Growth… ($ in millions) 1000$1,047* $852 $868 $758 $668 2012 2013 2014 2015 2016F *Based on midpoint of guidance provided in the Company’s November 3, 2016 press release PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 53

  54. Slide 54: Drives Strong Earnings and Cash Generation

    …Drives Strong Earnings and Cash Generation ($ in millions, except per share data) Adjusted Earnings Per Share* Cash Flow from Operations $6.21 ^ $166 $116 $3.82 2012 2016F 2012 2015 *See appendix for GAAP to non-GAAP reconciliation ^Based on midpoint of guidance provided in the Company’s November 3

  55. Slide 55: Continuing Best-In-Class Financial Performance

    Continuing Best-In-Class Financial Performance Double Digit Double Digit Free Cash Flow Balanced Capital Sales Growth EPS Growth Approximates Allocation Net Income  5% - 7%  17% - 19%  Strong track record  Return 40% of accelerated organic operating margins of free cash flow free cash flow to re

  56. Slide 56: Driving Double Digit Revenue Growth

    Driving Double Digit Revenue Growth Accelerate Organic Growth Continue Strategic Acquisitions Content and Underpenetrated Share Gains Geographies and Markets Accelerated Organic Growth Cross Segment Increased Opportunities Innovation PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 56

  57. Slide 57: Investing For The Future

    Investing For The Future: Driving Growth and Making Foundational Investments for Scale Organic Scale Innovation Growth Investments PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 57

  58. Slide 58: Target Financial Model

    Target Financial Model: Best-In-Class Margins Drive Double Digit EPS Growth FY 2015* FY 2016F*^ Target Range Organic Sales Growth 6% 3% 5% – 7% Adj. Gross Margin % 38.7% TBA ~40% Adj. Operating Margin % 17.2% TBA 17% – 19% 17% – 19% Adj. Effective Tax Rate 23.9% 18% for foreseeable future Adj. EPS $

  59. Slide 59: Operational Focus: Driving Sustained Cash Generation

    Operational Focus: Driving Sustained Cash Generation High Teens Attractive Operating Margins Tax Profile Sustained Cash Generation to Fund Acquisitions and Maintain Return of Strong Capital to Shareholders Working Balanced Capital Capital Investment Management PROTECT | CONTROL | SENSE Littelfuse, I

  60. Slide 60: Dividend Growth

    Dividend Growth: Track Record of Double Digit Dividend Increases $1.24 $1.08 $0.94 $0.84 $0.76 $0.66 $0.60 2010 2011 2012 2013 2014 2015 2016 Annualized* Continue to Grow Dividend in Line with Earnings *Initiated dividend in Q4 2010 PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 60

  61. Slide 61: Long-Term Maturities Providing Financial Flexibility

    Long-Term Maturities Providing Financial Flexibility (€/$ in millions) Capital Structure Summary Maturity Schedule Credit Facility 10/1/2016 Renewal Weighted average Pro Forma interest rate on Senior Notes ~ 2.25% 1.14% Cash $223 Euro Notes 3.74% 1.83% Credit Facility/Other 115 US Euro Notes Notes P

  62. Slide 62: Capital Deployment

    Capital Deployment: Balancing Reinvestment with Return to Shareholders 2013 – 2016 Q3YTD Future Free Cash Flow Cash Priorities Free Cash Deployment Deployment Disciplined Reinvestment to Share Repurchase 12% Drive Organic Growth Share Repurchase Target Debt / EBITDA Leverage 20% Dividends Remains 1.

  63. Slide 63: Continuing Best-In-Class Financial Performance

    Continuing Best-In-Class Financial Performance Double Digit Double Digit Free Cash Flow Balanced Capital Sales Growth EPS Growth Approximates Allocation Net Income  5 - 7% accelerated  17 - 19% operating  Strong track record  Return 40% of organic revenue margins of free cash flow free cash flow

  64. Slide 64: Recap

    Recap PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 64

  65. Slide 65: Go-Forward Strategy: Accelerated Organic Growth

    Go-Forward Strategy: Building On Success to Continue Double Digit Growth Leverage Our Protect Position Within Control Accelerated Global Mega Trends Sense Organic Growth 5% - 7% Grow Accelerate Safety Connectivity Circuit Protection Power Control Complemented with Strategic Double M&A Energy Sensor

  66. Slide 66: Littelfuse Investment Proposition

    Littelfuse Investment Proposition: A Proven Source of Growth and Value Creation Enthusiastic, Passionate and Dedicated Culture Strong Shareholder Returns PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 66

  67. Slide 67: Q&A

    Q&A PROTECT CONTROL SENSE P/4 Littelfuse Expertise Applied | Answers Delivered

  68. Slide 68: Appendix

    Appendix PROTECT | CONTROL | SENSE Littelfuse, Inc. © 2016 68

  69. Slide 69: Gordon Hunter

    Gordon Hunter Chairman of the Board of Directors, President and Chief Executive Officer  Joined Littelfuse in 2002; in current role since 2005  Prior experience at Littelfuse: Board member, COO; serves as Chairman of the Technology Committee  Experience prior to Littelfuse: Vice President, Commun

  70. Slide 70: Dave Heinzmann

    Dave Heinzmann Chief Operating Officer  Joined Littelfuse in 1985; in current role since January 2014  Prior experience at Littelfuse: VP, Global Operations; VP and General Manager, Automotive Segment; Director of Global Operations, Electronics; Technical Services Manager, Plant Manager  Educatio

  71. Slide 71: Matt Cole

    Matt Cole Senior Vice President and General Manager, Industrial Segment  Joined Littelfuse in 2015  Experience prior to Littelfuse includes 20 years in a variety of businesses within AMETEK, Danaher, and Honeywell  Education  B.S. Engineering Science, Vanderbilt University  Masters of Engineeri

  72. Slide 72: Ian Highley

    Ian Highley Senior Vice President , General Manager, Semiconductor Business and Chief Technology Officer  Joined Littelfuse 2002; in current role since 2009  Prior experience at Littelfuse: Director of Product Marketing - Electronics and Product Line Director - Semiconductor Products  Experience

  73. Slide 73: Deepak Nayar

    Deepak Nayar Senior Vice President and General Manager, Electronics Business  Joined Littelfuse 2005; in current role since 2011  Prior experience at Littelfuse: Global Sales Director  Experience prior to Littelfuse includes 17 years at Raychem and Tyco Electronics in R&D, Marketing and Global Sa

  74. Slide 74: Dieter Roeder

    Dieter Roeder Senior Vice President and General Manager, Automotive Segment  Joined Littelfuse in 2005; in current role since 2007  Prior experience at Littelfuse: Head of European Automotive Sales  Experience prior to Littelfuse includes over 20 years in the automotive industry at Raychem, Tyco

  75. Slide 75: Mike Rutz

    Mike Rutz Senior Vice President, Global Operations  Joined Littelfuse in 2014 in current role  Experience prior to Littelfuse includes 3 years as SVP, Global Supply Chain at WMS Gaming and 16 years with Motorola in the paging, cellular, and networking groups, serving most recently as VP, Networks

  76. Slide 76: Meenal Sethna

    Meenal Sethna Executive Vice President and Chief Financial Officer  Joined Littelfuse in 2015; in current role since March 2016. Overall responsibility for company’s financial strategy and performance, including accounting, planning and reporting, treasury activities, tax planning, internal audit,

  77. Slide 77: Ryan Stafford

    Ryan Stafford Executive Vice President and Chief Legal and Human Resources Officer  Joined Littelfuse in 2007 in current role. Prior to Littelfuse, served as Group General Counsel and Vice President of China Operations at Tyco International  Experience at Littelfuse: Overall responsibility for com

  78. Slide 78: GAAP – Non GAAP Reconciliation

    GAAP – Non GAAP Reconciliation Littelfuse has provided Q4 2016 earnings-per-share guidance [$1.45 - $1.59] and 2016 tax rate guidance [18%] on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may include the impact of items including acquisition and integration costs, impairment and se

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