Slide 1: Earnings Call Presentation Second Quarter 2024
Earnings Call Presentation Second Quarter 2024 July 30, 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
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 uncertainties. Any statements in this presentation that
Slide 3: Q2 '24 Summary
Q2 '24 Summary • Revenue declined year over year due to lower demand in general industrial and in e-mobility markets as well as inventory management by OEM customers, but sequential performance was more stable ◦ Total revenue decreased 24% YoY mostly due to lower sales in cutting and welding applica
Slide 4: Summary by Application
Summary by Application • Welding – was more stable sequentially, but YoY performance was still negatively impacted by lower sales in e-mobility and flat sales to general industrial applications, offset by strong growth in handheld applications Cutting • Cutting – continued to decline due to softer W
Slide 5: Financial Review
Financial Review In millions except per share Q2 '24 Q2 '23 Y/Y Q1 '24 Q/Q • Lower sales and lower gross margin reduced operating Revenue $257.6 $340.0 (24)% $252.0 2% income • FX transaction loss decreased operating income by $3 million Gross Margin 37.3% 43.4% 38.7% while gain on sale of assets in
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 Q2 '23 Q1 '24 Q2 '24 Q2 '23 Q1 '24 Q2 '24 • Sales declined slightly YoY in North America due to lower revenue in welding, cleaning and cutting applications, but
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q2 '24 Cash and Short-term Investments $1,064 • Strong balance sheet with over $1 billion in cash and short-term investments Inventories $401 • Continued to focus on inventory control, reducing it Total Debt $— by $31M in the quarter Net Income to IPG
Slide 8: Balance Sheet and Cash Flow Generation
Balance Sheet and Cash Flow Generation 150 150 1,500 100 100 1,000 In millions 50 50 In millions In millions 0 0 500 -50 -50 -100 -100 0 YTD 2023 YTD 2024 Dec 2023 Jun 2024 Cash and cash equivalents Cash from operations CapEx Free cash flow Short-term investments • Continued to generate strong cash
Slide 9: Financial Guidance
Financial Guidance Q3 '24 Outlook Revenue $210M - $240M Gross Margin 34% - 37% Operating Expenses $82M - $84M EPS $0.00 - $0.30 Tax Rate ~25% Diluted common shares ~45M • Q2 book-to-bill was below 1 • Expect soft demand to continue into 2H24 9 © 2024 IPG PHOTONICS 9
Slide 10: The World Leader in Fiber Lasers
VERTICAL THE WORLD INTEGRATION LEADER IN PROVIDES FIBER COMPETITIVE LASERS EDGE EXPANDING LASER & ENABLING DISPLACING GREATER NON-LASER AUTOMATION APPLICATIONS STRONG HIGH ELECTRICAL MARGINS, EFFICIENCY ENABLES BALANCE SHEET LOWER CUSTOMER & CASH FLOW ENERGY USE 10 © 2024 IPG PHOTONICS
Slide 11: Thank you
Thank you