Vishay Intertechnology, Inc. · NYSE:VSH
Vishay Intertechnology — Q2 2024 Earnings Presentation
22 slides from Vishay Intertechnology's earnings presentation, Aug 7, 2024
Slide 1: 2Q 2024 Earnings Conference Call
2Q 2024 Earnings Conference Call August 7, 2024 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.
Slide 2: Notes on Forward-Looking Statements
NOTES ON FORWARD-LOOKING STATEMENTS 2 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 sim
Slide 3: Revenue Mix by End Market
3 Revenue Mix 100% By End Market 5% 5% 4% 8% 11% 11% 80% 12% 12% 16% INDUSTRIAL AUTOM OTIVE + 6% - 20% - 7% - 14% QoQ YoY QoQ YoY 60% • Tier1 suppliers pulled 36% 39% 35% • Inventory destocking less from scheduling continued agreements on lower 40% • Received follow on BEV production in order for sm
Slide 4: Revenue Mix by Sales Channel
4 Revenue Mix By Sales Channel 100% 7% 7% 7% DISTRIBUTION OEM 80% + 8% - 16% - 11% - 19% 38% 42% 39% QoQ YoY QoQ YoY • Continue to increase 60% SKU count at • Lower volumes from distribution: +10k part industrial & auto numbers QoQ customers, mostly in 40% Europe & Americas 55% 51% 54% 20% EMS + 1%
Slide 5: Revenue Mix by Region
5 Revenue Mix By Region 100% 26% 26% 27% EUROPE ASIA 80% - 2% - 19% 0% - 12% QoQ YoY QoQ YoY 60% Ongoing Flat with some bright 38% 38% 36% macroeconomic spots developing in challenges AI and industrial 40% 20% 36% 37% 36% AM ERICAS + 1% - 20% QoQ YoY 0% 2Q24 1Q24 2Q23 Improved demand from distributi
Slide 6: 2Q 2024 Highlights
56 2Q 2024 Highlights TOTAL REVENUES ($M) 2Q 2024 REVENUES 2Q 2024 BOOK-TO-BILL 950 $892.1 $741.2 M 0.86 900 850 FOR 0.82 SEMICONDUCTORS 800 GROSS MARGIN $741.2 $746.3 FOR PASSIVE 750 22.0% 0.90 COMPONENTS 700 including negative impact of 650 approximately 170 bps related to Newport 600 550 BACKLOG
Slide 7: Income Statement Highlights
67 2Q 2024 Gross Margin Operating Margin Effective Tax Rate 22.0% Income Including ~170 basis 5.1% 34.2% Statement impact of Newport Highlights SG&A EBITDA EPS Expenses Margin $125 M 11.9% $0.17
Slide 8: Segment Results ($M)
78 Segment Results ($M) MOSFETs DIODES OPTO REVENUES GROSS BOOK TO REVENUES GROSS BOOK TO REVENUES GROSS BOOK TO MARGIN BILL MARGIN BILL MARGIN BILL 2Q 2024 $155.1 13.9% 0.79 2Q 2024 $146.3 21.2% 0.85 2Q 2024 $53.0 26.8% 0.82 1Q 2024 $153.2 16.6% 0.68 1Q 2024 $149.1 21.7% 0.72 1Q 2024 $49.2 14.2% 0.
Slide 9: Cash Conversion Cycle
9 Cash Conversion Cycle DSO DIO DPO CASH CONVERSION CYCLE 60 110 40 130 125 124 105 33 120 51 51 104 31 31 50 30 110 108 46 100 100 40 94 20 90 80 90 30 10 70 60 20 80 0 50 2Q24 1Q24 2Q23 2Q24 1Q24 2Q23 2Q24 1Q24 2Q23 2Q24 1Q24 2Q23
Slide 10: Cash Flow Generation
Cash Flow Generation 10 9 CASH FLOW FROM OPERATIONS ($/M) CAPEX ($/M) 160 700 160 400 613.1 145.3 346.9 140 122.3 140 327.8 600 120 107.2 120 300 100 80.2 500 80 100 400 71.7 60 80 62.6 66.8 200 40 300 53.1 60 20 6.3 184.1 200 40 100 0 -20 100 20 -40 (24.7) 0 0 0 2Q 1Q 4Q 3Q 2Q TTM TTM 2Q 1Q 4Q 3Q 2
Slide 11: Guidance 3Q 2024
11 Guidance 3Q 2024 REVENUE GROSS MARGIN SG&A 2Q 2024 $745 M 21.0% $127 M FY 2024 +/- $2 M +/- $20 M +/- 50 bps $507 M +/- $5 M NORMALIZED STOCKHOLDER NEWPORT 3Q 2024 E F F E C T I V E TA X R AT E RETURN POLICY FY 2024 REVENUES FY 2024 ~31% $5-8 M GM IMPACT Return ≥ Negative 175 - 200 bps $100 M
Slide 12: Strategic Growth Levers
11 12 Strategic Growth Levers SERVED MARKETS Internal Capacity Enhanced Expansion Channel Management External Capacity Expansion Broaden Innovation our Portfolio Optimizing Global Vishay Solutions Manufacturing Footprint Increased M&A Technical Headcount
Slide 13: 2024: Investing in Capacity Readiness & Advancing Innovation Initiatives
12 13 2024: Investing in Capacity Readiness & Advancing Innovation Initiatives I N T E R N A L C A PA C I T Y SILICON CARBIDE E X T E R N A L C A PA C I T Y E X PA N S I O N S T R AT E G Y E X PA N S I O N ► La Laguna ► Turin ► Product development ► Key Foundry ► Juarez ► Newport ► Manufacturing sca
Slide 14: Financial Goals 2028
14 Financial Goals 2028 T O TA L R E V E N U E GROSS MARGIN O P E R AT I N G M A R G I N 2023 2023 2023 $3.4B CAGR 28.6% 14.3% 9-11% 31–33% 19–21% ADJ. EBITDA MARGIN ROIC C A P I TA L I N T E N S I T Y 2023 2023 2023 19.5% 11.2% 9.7% 25–27% ≥14% 6–7%
Slide 15: Appendix
Appendix 2Q 2024 Earnings Conference Call
Slide 16: Product Type 2023: Certified, Commodity, Custom
16 Product Type 2023 CERTIFIED PRODUCTS 100% Hundreds 16% 23% small number of competitors with similar 30% 80% products (qualifications such as automotive, military, UL) 60% 30% 17% 42% COMMODITY PRODUCTS 40% completely interchangeable with competitors’ products 48% 53% 20% 42% CUSTOM PRODUCTS 0% Vi
Slide 17: Trusted by…
17 16 Trusted by… OEM EMS DISTRIBUTION
Slide 18: Broadest Line of Discrete Semiconductors and Passive Components
17 18 Broadest Line of Discrete Semiconductors and Passive Components DISCRETE SEMICONDUCTORS PASSIVE COMPONENTS LOWEST VOLTAGE DIODE HIGHEST ENERGY CAPACITOR In power applications, we can populate ~80% of our customers’ Bill of Material © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.
Slide 19: P&L
P&L 18 19 IN MILLIONS (Except Per Share Amounts) 2Q 2024 1Q 2024 2Q 2023 Net Revenues $741.2 $746.3 $892.1 Cost of Products Sold 578.4 575.9 634.6 Gross Profit 162.9 170.4 257.5 Gross Margin 22.0% 22.8% 28.9% SG&A 125.0 127.7 122.9 Operating Income 37.9 42.7 134.6 Operating Margin 5.1% 5.7% 15.1% Ot
Slide 20: Reconciliation of Free Cash
19 20 Reconciliation of Free Cash IN MILLIONS (Except Per Share Amounts) 2Q 2024 1Q 2024 2Q 2023 Net Cash Provided by Operating Activities ($24.7) $80.2 $107.2 Proceeds From Sale of Property and Equipment 0.5 0.8 0.7 Less: Capital Expenditures (62.6) (53.1) (71.7) Free Cash ($86.8) $27.9 $36.3 © VIS
Slide 21: Reconciliation of EBITDA
20 21 Reconciliation of EBITDA IN MILLIONS 2Q 2024 1Q 2024 2Q 2023 GAAP Net Earnings Attributable to Vishay Stockholders $23.5 $30.9 $95.0 Net Earnings Attributable to Noncontrolling Interests 0.3 0.5 0.4 Net Earnings $23.9 $31.4 $95.4 Interest Expense $6.7 $6.5 $6.4 Interest Income (6.7) (9.1) (6.3
Slide 22: Vishay: The DNA of tech
Vishay The DNA of tech ® © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.
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