Vishay Intertechnology, Inc. · NYSE:VSH

Vishay Intertechnology — Q4 2018 Earnings Presentation

22 slides from Vishay Intertechnology's earnings presentation, February 2019

  1. Slide 1: Financial Results Q4 2018

    FINANCIAL RESULTS Q4 2018 © 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.

  2. 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

  3. Slide 3: Q4 Financial Information: Highlights Q4 2018

    Q4 FINANCIAL INFORMATION HIGHLIGHTS Q4 2018  Revenues Q4: $776 million; year 2018: $3,035 million.  Gross margin Q4: 28.3%; year 2018: 29.3%.  Operating margin Q4: 15.4%; year 2018: 16.0%.  EPS Q4: $0.69; adjusted EPS Q4: $0.58.  EPS year 2018: $2.24; adjusted EPS Year 2018: $2.12.  Free Cash1

  4. Slide 4: Cash Repatriation 2018 & Related Foreign Tax

    Q4 FINANCIAL INFORMATION CASH REPATRIATION 2018 & RELATED FOREIGN TAX  During 2018 repatriated a gross amount of $881 million to the US.  Paid $157 million in related foreign taxes significantly impacting cash flow from operations.  Received $724 million net of tax in the US and • Paid down “revo

  5. Slide 5: Debt Restructuring in 2018

    Q4 FINANCIAL INFORMATION DEBT RESTRUCTURING IN 2018 In 2018, reduced amount outstanding of the converts due 2040-2042 to $37 million from $575 million principal amount. • In June placed $600 million converts due 2025 & used all net proceeds to repurchase $289 million principal amount of converts due

  6. Slide 6: Convertible Debt Instruments 2017 - 2018

    Q4 FINANCIAL INFORMATION CONVERTIBLE DEBT INSTRUMENTS 2017 - 2018  Principal amount outstanding of all converts outstanding went from $575 million in 2017 to $637 million at year end 2018.  Cash interest went from $12.9 million to $14.3 million annually.  Average conversion price increased from $

  7. Slide 7: Cash Flow Impacted by Cash Repatriation

    Q4 FINANCIAL INFORMATION CASH FLOW IMPACTED BY CASH REPATRIATION in millions Q4 2018 Year 2018 Year 2017 Depreciation $38 $150 $149 Amortization $2 $12 $14 U.S. transition tax ($15) Repatriation taxes ($157) Cash from operations $150 $259 $369 CapEx $104 $230 $170 Free Cash* $93 $84 $200 * Cash flow

  8. Slide 8: Sharecount for EPS Calculation

    Q4 FINANCIAL INFORMATION SHARECOUNT FOR EPS CALCULATION in million Total shares outstanding 145 Related to RSUs etc. <1 Projected Diluted Average Stock Price Shares <$21.00 145 $21.00 - $31.00 146 $32.00 147 $33.00 147 $34.00 148 $35.00 148 The table above summarizes the approximate number of shares

  9. Slide 9: Sales Split Q4 2018

    Q4 FINANCIAL INFORMATION SALES SPLIT Q4 2018 28 % AUTOMOTIVE 36 % INDUSTRIAL 6 % CONSUMER 8 % COMPUTING 5 % POWER SUPPLIES 7 % TELECOM 6 % MILITARY/AERO 4 % MEDICAL END MARKETS 37 % ASIA 57 % DISTRIBUTION 36 % OEM 28 % AMERICAS 7 % EMS 35 % EUROPE GEOGRAPHY SALES CHANNELS 9 © 2018 VISHAY INTERTECHNO

  10. Slide 10: Appendix

    Q4 FINANCIAL INFORMATION APPENDIX © 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 10

  11. Slide 11: Quarterly Financial Results

    Q4 FINANCIAL INFORMATION QUARTERLY FINANCIAL RESULTS in millions, except per share amounts Q4 2018 Q3 2018 Q4 2017 Net revenues $776 $781 $673 Gross profit $220 $236 $177 28.3% 30.3% 26.3% Operating income (loss) $120 $138 $76 15.4% 17.7% 11.3% Net earnings (loss) attributable to Vishay stockholders

  12. Slide 12: Adjusted Quarterly Financial Results

    Q4 FINANCIAL INFORMATION ADJUSTED QUARTERLY FINANCIAL RESULTS in millions, except per share amounts Q4 2018 Q3 2018 Q4 2017 Net revenues $776 $781 $673 Gross profit $220 $236 $177 28.3% 30.3% 26.3% Adjusted operating income $120 $138 $82 15.4% 17.7% 12.2% Adjusted net earnings attributable to Vishay

  13. Slide 13: Reconciliation of GAAP to Adjusted

    Q4 FINANCIAL INFORMATION RECONCILIATION OF GAAP TO ADJUSTED in millions Q4 2018 Q3 2018 Q4 2017* GAAP NET EARNINGS (loss) $102 $78 ($178) attributable to Vishay stockholders Reconciling items affecting operating income Restructuring and severance costs - - $6 Reconciling items affecting other income

  14. Slide 14: Liquidity, Cash and Long Term Debt

    Q4 FINANCIAL INFORMATION LIQUIDITY, CASH AND LONG TERM DEBT in millions Q4 2018 Q3 2018 Q4 2017 Total liquidity $1,400 $1,699 $1,781 Cash and cash equivalents, and short term $764 $1,063 $1,295 investments Unused capacity on credit facility $636 $636 $486 Long term debt incl. current portion $495 $5

  15. Slide 15: Long Term Debt

    Q4 FINANCIAL INFORMATION LONG TERM DEBT as of December 31, 2018 Outstanding in millions Comments Interest Debt Long term incl. current portion $495 Revolving Debt - Available through December 10, 2020 LIBOR plus 1.50% up to $640 million Cash coupon 2.25% of principal or $13.5 $600 million principal

  16. Slide 16: Book-to-Bill Detail

    Q4 FINANCIAL INFORMATION BOOK-TO-BILL DETAIL Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Book-to-bill VISHAY 0.94 0.95 1.17 1.22 1.28 Book-to-bill distribution 0.90 0.80 1.23 1.28 1.40 Book-to-bill OEMs 0.98 1.15 1.08 1.16 1.13 Book-to-bill semiconductors 0.91 0.87 1.06 1.26 1.41 Book-to-bill passive co

  17. Slide 17: Operational Metrics

    Q4 FINANCIAL INFORMATION OPERATIONAL METRICS Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Change in ASP vs. prior year total Vishay 1.4 0.5 0.7 (0.9) (2.3) Change in ASP vs. prior year semis 1.4 0.7 1.0 (0.9) (2.7) Change in ASP vs. prior year passives 1.4 0.2 0.3 (0.9) (1.9) FX effect on revenues vs. pr

  18. Slide 18: Vishay Revenues and Gross Margin % Quarterly

    Q3 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 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2004

  19. Slide 19: Vishay Revenues Quarterly by Product Segment

    Q3 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 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20

  20. Slide 20: Vishay Revenues Yearly by Product Segment

    Q3 FINANCIAL INFORMATION VISHAY REVENUES YEARLY BY PRODUCT SEGMENT $ in millions $ in millions 1100 1100 1000 1000 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 2018 MOSFETs Diodes Opto Resistors/Indu

  21. Slide 21: Vishay Gross Margins Quarterly by Product Segment

    Q3 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 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 MOSFET

  22. Slide 22: Vishay Gross Margins Yearly by Product Segment

    Q3 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 2018 MOSFETs Diodes Opto Resistors/Inductors Capacitors © 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS R

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