Slide 1: Financial Results Q2 2018
FINANCIAL RESULTS Q2 2018 © 2018 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: Q2 Financial Information Highlights Q2 2018
Q2 FINANCIAL INFORMATION HIGHLIGHTS Q2 2018 Revenues Q2: $761 million. Gross margin Q2: 29.9%. Operating margin Q2: 16.2%. EPS Q2: $0.65; adjusted EPS: $0.54. Guidance Q3: Revenues $755 to $795 million and gross margins of 29.0%-30.0%, based on Q2 x-rates. Repatriated $274 million net of
Slide 4: $600 Convertible Notes Due 2025
Q2 FINANCIAL INFORMATION $600 CONVERTIBLE NOTES DUE 2025 ISSUED JUNE 2018 $600 million principal amount of 2.25% converts, due 2025. All net proceeds used to repurchase $220 million principal amount of 2040 and of $69 million principal amount of 2042 converts. Principal Annual Cash Conversion Av
Slide 5: Normalized Effective Tax Rate 28%
Q2 FINANCIAL INFORMATION NORMALIZED EFFECTIVE TAX RATE 28% Following the US tax reform, Vishay’s normalized effective tax rate was expected in Q1 to be 31% for the year. Due to the unusual tax benefit related to the settlement of some of the converts, US GAAP tax rate was -6% for Q2 and 12.5% YT
Slide 6: Cash Repatriation and Related Foreign Tax
Q2 FINANCIAL INFORMATION CASH REPATRIATION AND RELATED FOREIGN TAX Plan to repatriate approximately $1.2 billion of cash with foreign withholding and other taxes of approximately $225 million. Q2 2018 received $274 million in the US Used to pay down “revolver,” intercompany debts and US transiti
Slide 7: Cash Flow Impacted by Cash Repatriation
Q2 FINANCIAL INFORMATION CASH FLOW IMPACTED BY CASH REPATRIATION in millions Q2 2018 TTM Q2 2018 Year 2017 Depreciation $37 $151 $149 Amortization $3 $13 $14 U.S transition tax ($14) ($14) Repatriation taxes ($92) ($92) Cash from operations ($9) $279 $369 CapEx $48 $198 $170 Free Cash* ($49) $89 $20
Slide 8: Sharecount for EPS Calculation
Q2 FINANCIAL INFORMATION SHARECOUNT FOR EPS CALCULATION Projected Average Stock Diluted Price Shares in million $12.00 145 Total shares outstanding 144 $13.00 146 Related to RSUs etc. <1 $14.00 147 $15.00 147 $16.00 148 $17.00 149 $18.00 149 $19.00 150 The three converts issued 2010-12 become diluti
Slide 9: Sales Split Q2 2018
Q2 FINANCIAL INFORMATION SALES SPLIT Q2 2018 28% AUTOMOTIVE 39% INDUSTRIAL 5% CONSUMER 7% COMPUTING 6% TELECOM 6% POWER SUPPLIES 5% MILITARY/AERO 4% MEDICAL END MARKETS 40% ASIA 58% DISTRIBUTION 35% OEM 24% AMERICAS 7% EMS 36% EUROPE GEOGRAPHY SALES CHANNELS 9 © 2018 VISHAY INTERTECHNOLOGY, INC. ALL
Slide 10: Appendix
Q2 FINANCIAL INFORMATION APPENDIX © 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 10
Slide 11: Quarterly Financial Results
Q2 FINANCIAL INFORMATION QUARTERLY FINANCIAL RESULTS in millions, except per share amounts Q2 2018 Q1 2018 Q2 2017* Net revenues $761 $717 $643 Gross profit $227 $205 $174 29.9% 28.6% 27.0% Operating income (loss) $123 $104 $85 16.2% 14.5% 13.2% Net earnings (loss) attributable to Vishay stockholder
Slide 12: Adjusted Quarterly Financial Results
Q2 FINANCIAL INFORMATION ADJUSTED QUARTERLY FINANCIAL RESULTS in millions, except per share amounts Q2 2018 Q1 2018 Q2 2017* Net revenues $761 $717 $643 Gross profit $227 $205 $174 29.9% 28.6% 27.0% Adjusted operating income $123 $104 $85 16.2% 14.5% 13.3% Adjusted net earnings attributable to Visha
Slide 13: Reconciliation of GAAP to Adjusted
Q2 FINANCIAL INFORMATION RECONCILIATION OF GAAP TO ADJUSTED in millions Q2 2018 Q1 2018 Q2 2017* GAAP NET EARNINGS (loss) $103 $62 $56 attributable to Vishay stockholders Reconciling items affecting operating income Restructuring and severance costs - - $1 Reconciling items affecting other income (e
Slide 14: Long Term Debt
Q2 FINANCIAL INFORMATION LONG TERM DEBT as of June 30, 2018 Outstanding in millions Comments Interest Debt Long term incl. current portion $680 Revolving Debt $96 Available through December 10, 2020 LIBOR plus 1.50% Cash coupon 2.25% of principal or $14 million $600 million principal amount; Convert
Slide 15: Book-to-Bill Detail
Q2 FINANCIAL INFORMATION BOOK-TO-BILL DETAIL Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Book-to-bill VISHAY 1.17 1.22 1.28 1. 11 1. 27 Book-to-bill distribution 1.23 1.28 1.40 1.15 1.43 Book-to-bill OEMs 1.08 1.16 1.13 1.06 1.06 Book-to-bill semiconductors 1.06 1.26 1.40 1.13 1.34 Book-to-bill passive
Slide 16: Operational Metrics
Q2 FINANCIAL INFORMATION OPERATIONAL METRICS Q2 2018 Q1 2018 Q4 2017* Q3 2017* Q2 2017* Change in ASP vs. prior year total Vishay 0.7 (0.9) (2.3) (2.4) (2.8) Change in ASP vs. prior year semis 1.0 (0.8) (2.7) (2.7) (3.4) Change in ASP vs. prior year passives 0.3 (0.9) (1.9) (2.1) (2.1) FX effect on
Slide 17: Vishay Revenues and Gross Margin % Quarterly
Q2 FINANCIAL INFORMATION VISHAY REVENUES AND GROSS MARGIN % QUARTERLY $ in millions excl. Spin-Off Vishay Precision Group in 2010 % 800 40 750 36 700 32 650 28 600 24 550 20 500 16 450 12 400 8 350 4 300 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 2004 20
Slide 18: Vishay Revenues Quarterly by Product Segment
Q2 FINANCIAL INFORMATION VISHAY REVENUES QUARTERLY BY PRODUCT SEGMENT $ in millions $ in millions 300 300 250 250 200 200 150 150 100 100 50 50 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 19: Vishay Revenues Yearly by Product Segment
Q2 FINANCIAL INFORMATION VISHAY REVENUES YEARLY BY PRODUCT SEGMENT $ in millions $ in millions 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 MOSFETs Diodes Opto Resistors/Inductors Capacitors © 2018 V
Slide 20: Vishay Gross Margins Quarterly by Product Segment
Q2 FINANCIAL INFORMATION VISHAY GROSS MARGINS QUARTERLY BY PRODUCT SEGMENT % % 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 MOSFETs D
Slide 21: Vishay Gross Margins Yearly by Product Segment
Q2 FINANCIAL INFORMATION VISHAY GROSS MARGINS YEARLY BY PRODUCT SEGMENT % % 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 MOSFETs Diodes Opto Resistors/Inductors Capacitors © 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERV