Slide 1: 3Q 2023 Earnings Conference Call
3Q 2023 Earnings Conference Call November 8, 2023 © 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: Revenue Mix – By End Market, Sales Channel, & Region
Revenue Mix – By End Market, Sales Channel, & Region End Market Sales Channel Region 4% 4% 4% 100% 7% 7% 7% 8% 8% 6% 25% 27% 30% 80% 16% 16% 20% 42% 39% 35% 60% 38% 37% 35% 31% 36% 38% 40% 51% 54% 58% 20% 35% 37% 39% 37% 37% 32% 0% 3Q23 2Q23 3Q22 3Q23 2Q23 3Q22 3Q23 2Q23 3Q22 Industrial Automotive O
Slide 4: 3Q 2023 Highlights
3Q 2023 Highlights Total Revenues ($M) 950 924.8 • 3Q 2023 revenues of $853.7 million 900 892.1 853.7 850 • 3Q 2023 EPS of $0.47; adjusted EPS of $0.60 800 750 • 3Q 2023 book-to-bill of 0.63 700 650 • Backlog at quarter end was 5.5 months 600 550 • Returned a total of $31.1 million to stockholders 5
Slide 5: 3Q 2023 Income Statement Highlights
3Q 2023 Income Statement Highlights Adjusted Net Earnings 3Q 2023 vs 2Q 2023 • Gross margin of 27.8% $M $M 100 95 100 90 7 90 1 84 80 (10) 8 0 80 • SG&A expenses of $122.5 million 70 70 60 (18) 60 50 50 • Operating margin of 13.5% 40 40 30 30 20 20 10 10 • Adjusted EBITDA margin of 18.7% 0 0 • EPS o
Slide 6: Segment Results ($/M)
Segment Results ($/M) MOSFETs Diodes Opto Gross Book to Gross Book to Gross Book to Revenues Revenues Revenues Margin Bill Margin Bill Margin Bill 3Q 2023 $205.0 33.5% 0.50 3Q 2023 $176.8 26.7% 0.58 3Q 2023 $64.4 28.1% 0.57 2Q 2023 $207.4 34.7% 0.68 2Q 2023 $174.7 23.4% 0.54 2Q 2023 $64.4 24.2% 0.70
Slide 7: Cash Conversion Cycle
Cash Conversion Cycle DSO DIO 50 100 45 95 40 35 90 30 25 85 3Q23 2Q23 3Q22 3Q23 2Q23 3Q22 DPO Cash Conversion Cycle 38 120 36 110 34 100 32 30 90 28 80 26 70 24 22 60 20 50 3Q23 2Q23 3Q22 3Q23 2Q23 3Q22 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 7
Slide 8: Consistently Strong Cash Flow Generation
Consistently Strong Cash Flow Generation Cash Flow from Operations ($/M) Capex ($/M) 220 650 80 400 200 600 180 350 160 550 60 300 140 500 120 250 450 100 80 400 200 40 60 150 350 40 20 300 100 0 TTM TTM 20 TTM TTM 3Q23 2Q23 3Q22 2023 2022 3Q23 2Q23 3Q22 2023 2022 Free Cash Flow ($/M) Stockholder Re
Slide 9: Debt-related transactions – 3Q 2023
Debt-related transactions – 3Q 2023 • Issued $750 million principal amount of new 2.25% convertible notes, due 2030 Use of Proceeds (in millions) Repurchase of Convertible Notes due 2025 (Principal amount: $370 M) $387 Capped call transactions 94 Pay-down of revolver 185 Other corporate purposes 64
Slide 10: Guidance
Guidance • 4Q 2023 total revenue range: $770 million - $810 million. • 4Q 2023 gross profit margin range: 25.5% +/- 50 basis points. • 4Q 2023 SG&A: $125 million plus/minus $2 million. FY 2023 approx. $490 million (at current exchange rates). • FY 2023 normalized effective tax rate: ~28.5%. • FY 202
Slide 11: Near Term Initiatives
Near Term Initiatives 1. Develop go-to-market strategies for 30 key product lines across all business segments 2. Increase capacities • Internal: increase capex to ~$350 million in 2023, primarily on expansion projects • External: outsource production of commodity products to subcontractors 3. Enhan
Slide 12: 2023 Takeaways
2023 Takeaways By the end of 2023 650V and 1200V Implemented go-to- Qualified planar SiC Prepare 3-year market strategies subcontractors MOSFETs samples strategic plan for 30 key products available © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 12
Slide 13: Appendix
APPENDIX © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..
Slide 14: More than 60% of Revenues for Non-Commodity and Custom
More than 60% of Revenues for Non-Commodity and Custom 12 Trailing Months 3Q23 Hundreds 100% 14% 21% 28% 80% 32% 19% 45% 60% 40% 53% 47% 20% 41% 0% Vishay Total Passives Semiconductors Non-commodity Commodity Custom Commodity products: completely interchangeable with competitors’ products Non-commod
Slide 15: Broad Customer Base
Broad Customer Base OEM EMS DISTRIBUTION © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 15
Slide 16: Broadest Line of Discrete Semiconductors and Passive Components
BROADEST LINE OF DISCRETE SEMICONDUCTORS AND PASSIVE COMPONENTS INDUCTORS Source: Company estimates = Major Position = Minor Position © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 16
Slide 17: P&L
P&L In millions, except per share amounts 3Q 2023 2Q 2023 3Q 2022 Net revenues $853.7 $892.1 $924.8 Cost of products sold 616.0 634.6 635.3 Gross profit 237.6 257.5 289.5 Gross margin 27.8% 28.9% 31.3% SG&A 122.5 122.9 106.4 Operating income 115.1 134.6 183.1 Operating margin 13.5% 15.1% 19.8% Other
Slide 18: Reconciliation of GAAP net earnings to Adjusted net earnings
Reconciliation of GAAP net earnings to Adjusted net earnings In millions, except for per share amounts 3Q 2023 2Q 2023 3Q 2022 GAAP net earnings attributable to Vishay stockholders $65.5 $95.0 $140.1 Reconciling items affecting other income (expense): Loss on early extinguishment of debt $18.9 - - R
Slide 19: Reconciliation of Free Cash
Reconciliation of Free Cash In millions 3Q 2023 2Q 2023 3Q 2022 Net cash provided by operating activities $122.3 $107.2 $209.5 Proceeds from sale of property and equipment 0.0 0.7 0.1 Less: Capital expenditures (66.8) (71.7) (76.5) Free cash $55.5 $36.2 $133.1 © VISHAY INTERTECHNOLOGY, INC. ALL RIGH
Slide 20: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA In millions 3Q 2023 2Q 2023 3Q 2022 GAAP net earnings attributable to Vishay stockholders $65.5 $95.0 $140.1 Net earnings attributable to noncontrolling interests 0.4 0.4 0.5 Net earnings $66.0 $95.4 $140.6 Interest expense $7.2 $6.4 $4.1 Interest income
Slide 21: Net Earnings Adjusted – 3Q 2023 vs 3Q 2022
Net Earnings Adjusted – 3Q 2023 vs 3Q 2022 $M $M 160 160 134 7 140 140 120 120 100 100 15 84 (51) 80 80 (8) 2 60 (16) 60 40 40 20 20 0 0 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 21
Slide 22: Vishay – The DNA of tech.
Vishay – The DNA of tech. TM © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..