Slide 1: 3Q 2024 Earnings Conference Call
3Q 2024 Earnings Conference Call November 6, 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 By End Market INDUSTRIAL - 7% QoQ - 18% YoY AUTOMOTIVE + 4% QoQ - 12% YoY 5% 5% 4% 11% 8% 11% ▸ $18.5 million decrease includes $8.5 ▸ Tier1 suppliers pulled less from million related to legacy Newport scheduling agreements and lowered 13% 12% 16% products forecasts in Europe and NA ▸
Slide 4: Revenue Mix By Sales Channel
4 Revenue Mix By Sales Channel 7% 7% 7% D I S T R I B U T I O N - 1% QoQ - 7% YoY OEM Flat QoQ - 22% YoY ▸ Customers in the Americas and Asia are ▸ Reduced visibility returning to normal order patterns 38% 38% 42% ▸ Strong demand for smart grid ▸ Customers in Europe are responding to infrastructure
Slide 5: Revenue Mix By Region
5 Revenue Mix By Region EUROPE - 3% QoQ - 19% YoY ASIA + 2% QoQ - 11% YoY 26% 26% 25% ▸ Weakening macroeconomic environment ▸ Pick up in automotive and A.I. ▸ Normal seasonality 39% 38% 38% 35% 36% 37% AMERICAS - 2% QoQ - 12% YoY ▸ Slightly lower medical volume 3Q24 2Q24 3Q23 EUROPE ASIA AMERICAS
Slide 6: 3Q 2024 Highlights
66 3Q 2024 Highlights TOTAL REVENUES ($M) 3Q 2024 REVENUES 3Q 2024 BOOK-TO-BILL 950 $735.4 M 0.88 900 $853.7 850 FOR 0.79 SEMICONDUCTORS 800 GROSS MARGIN $735.4 $741.2 20.5% 0.97 FOR PASSIVE COMPONENTS 750 including negative impact of 700 approximately 150 bps related to Newport 650 600 550 (0.14) E
Slide 7: Income Statement Highlights
3Q 2024 77 Income Statement Highlights Operating EBITDA Effective Gross Margin SG&A EPS Margin Margin Tax Rate Expenses 20.5% Including ~150 basis $128.5 M (2.5%) 4.2% 21.1% ($0.14) impact of Newport Adjusted Adjusted Normalized Operating Adjusted EBITDA Effective Margin EPS Margin Tax Rate 3.0% 9.7
Slide 8: Segment Results ($M)
88 Segment Results ($M) MOSFETs DIODES OPTO REVENUES GROSS BOOK TO REVENUES GROSS BOOK TO REVENUES GROSS BOOK TO MARGIN BILL MARGIN BILL MARGIN BILL 3Q 2024 $147.1 11.7% 0.84 3Q 2024 $145.2 20.1% 0.74 3Q 2024 $63.2 18.3% 0.77 2Q 2024 $155.1 13.9% 0.79 2Q 2024 $146.3 21.2% 0.85 2Q 2024 $53.0 26.8% 0.
Slide 9: Cash Conversion Cycle
9 Cash Conversion Cycle DSO DIO DPO CASH CONVERSION CYCLE 60 110 40 106 105 130 127 125 53 51 100 96 32 33 31 120 50 48 30 111 90 110 80 100 40 20 90 70 80 30 60 10 70 50 60 20 40 0 50 3Q24 2Q24 3Q23 3Q24 2Q24 3Q23 3Q24 2Q24 3Q23 3Q24 2Q24 3Q23
Slide 10: Cash Flow Generation
Cash Flow Generation 10 10 CASH FLOW FROM OPERATIONS ($/M) CAPEX ($/M) 160 600 160 145.3 400 525.9 337.2 140 122.3 140 320.5 120 500 120 300 100 80.2 400 80 100 60 50.6 300 80 62.6 66.8 200 59.5 40 60 53.1 20 6.3 200 112.3 40 100 0 100 -20 20 -40 (24.7) 0 0 0 3Q 2Q 1Q 4Q 3Q TTM TTM 3Q 2Q 1Q 4Q 3Q TT
Slide 11: 2024 Restructuring Program
2024 Restructuring Program 11 3Q24 Expense $40.6 M Goals ▸ Optimize manufacturing footprint ▸ Close 3 facilities by end of 2026 ▸ Streamline business decision making ▸ Reduce SG&A headcount by 6% ▸ Reduce Manufacturing headcount by 2% Savings $23 million (annualized), including $12 million SG&A, whe
Slide 12: Guidance 4Q 2024
12 Guidance 4Q 2024 REVENUE GROSS MARGIN SG&A 4Q 2024 $720 M 20.0% $126 M FY 2024 +/- $2 M +/- $20 M +/- 50 bps $507 M +/- $2 M NORMALIZED S TO C K H O L D E R N E W P O RT 4 Q 2 0 2 4 E F F E C T I V E TA X R AT E RETURN POLICY FY 2024 LEGACY REVENUES FY 2024 ~31% ~$3 M GM IMPACT Return ≥ Negative
Slide 13: Strategic Growth Levers
13 13 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 14: 2024: Investing in Capacity Readiness & Advancing Innovation Initiatives
14 14 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 ► Sk keyfoundry ► Juarez ► Newport ► Manufacturing s
Slide 15: Financial Goals 2028
15 Financial Goals 2028 TO 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 16: Appendix
Appendix 3Q 2024 Earnings Conference Call
Slide 17: Product Type 2023: Certified, Commodity, Custom
17 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 18: Trusted by…
18 18 Trusted by… OEM EMS DISTRIBUTION
Slide 19: Broadest Line of Discrete Semiconductors and Passive Components
19 19 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 20: P&L
P&L 20 20 IN MILLIONS (Except Per Share Amounts) 3Q 2024 2Q 2024 3Q 2023 Net Revenues $735.4 $741.2 $853.7 Cost of Products Sold 584.5 578.4 616.0 Gross Profit 150.9 162.9 237.6 Gross Margin 20.5% 22.0% 27.8% SG&A 128.5 125.0 122.5 Restructuring and severance costs 40.6 - - Operating Income (Loss) (
Slide 21: Reconciliation of Adjusted Net Earnings
21 21 Reconciliation of Adjusted Net Earnings IN MILLIONS 3Q 2024 2Q 2024 3Q 2023 GAAP Net Earnings (Loss) Attributable to Vishay Stockholders ($19.3) $23.5 $65.5 Reconciling items affecting operating income: Restructuring and severance costs $40.6 - - Reconciling items affecting other income (expen
Slide 22: Reconciliation of Free Cash
22 22 Reconciliation of Free Cash IN MILLIONS (Except Per Share Amounts) 3Q 2024 2Q 2024 3Q 2023 Net Cash Provided by Operating Activities $50.6 ($24.7) $122.3 Proceeds From Sale of Property and Equipment 0.1 0.5 0.0 Less: Capital Expenditures (59.5) (62.6) (66.8) Free Cash ($8.8) ($86.8) $55.5 © VI
Slide 23: Reconciliation of EBITDA
23 23 Reconciliation of EBITDA IN MILLIONS 3Q 2024 2Q 2024 3Q 2023 GAAP Net Earnings (Loss) Attributable to Vishay Stockholders ($19.3) $23.5 $65.5 Net Earnings Attributable to Noncontrolling Interests 0.3 0.3 0.4 Net Earnings (Loss) ($19.0) $23.9 $65.9 Interest Expense $6.6 $6.7 $7.2 Interest Incom
Slide 24: Vishay
Vishay The DNA of tech ® © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.