Ipg Photonics Corporation · NASDAQ:IPGP
Ipg Photonics — Q1 2022 Earnings Presentation
11 slides from Ipg Photonics's earnings presentation, May 3, 2022
Slide 1: Earnings Call Presentation First Quarter 2022
Earnings Call Presentation First Quarter 2022 May 3, 2022 10:00 am ET • By phone: 877-407-6184 in the US or 201-389-0877 internationally • A live webcast of the call will be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com © 2022 IPG Phot
Slide 2: Safe Harbor Statement
Safe Harbor Statement Information and statements provided by IPG and its employees, including statements in this presentation, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this presentation that
Slide 3: Q1 '22 Highlights
Q1 '22 Highlights • Increased demand in Europe, North America and Japan drove revenue growth THE WORLD LEADER IN ◦ Total revenue increased 7% YoY, driven by higher sales in welding, marking, systems, FIBER LASERS cleaning, 3D printing, semiconductor applications and medical ◦ Sales in Europe, North
Slide 4: Financial Review
Financial Review • Gross margin decreased due to In millions except per share Q1 '22 Q1 '21 Y/Y Q4 '21 Q/Q increased shipping charges, higher inventory reserves and Revenue $370.0 $345.6 7% $364.5 2% higher cost of goods sold, partially offset by reduced Gross Margin 46.4% 47.5% 45.5% manufacturing
Slide 5: Revenue by Power
Revenue by Power • Revenue growth was driven by pulsed and medium power 180.0 lasers, systems and medical 160.0 • High power (more than 1kW) sales declined due to softer demand in cutting in China, partially offset by growth in welding 140.0 as well as increased demand in other major regions; sales
Slide 6: Revenue by Geography
Revenue by Geography 160.0 300.0 140.0 250.0 120.0 200.0 In millions In millions 100.0 80.0 150.0 60.0 100.0 40.0 50.0 20.0 0.0 0.0 North America Europe China Other Asia China RoW Q1 '21 Q4 '21 Q1 '22 Q1 '21 Q1 '22 • Diversification continues with non-China revenue increasing strongly and accounting
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q1 '22 • Maintaining strong balance sheet • Increased inventories to build a safety stock of Cash and Short-term Investments $1,417 components due to supply chain constraints and contingency planning Inventories $485 • Repurchased record level of share
Slide 8: Balance Sheet and Cash Flow Generation
Balance Sheet and Cash Flow Generation Operating Cash Flow and Capital Allocated Exceptional Balance Sheet 100.0 2000.0 1500.0 0.0 In millions In millions 1000.0 500.0 -100.0 0.0 -200.0 -500.0 Q1 '21 Q1 '22 Q1 '21 Q1 '22 YTD Cash from operations Cash YTD CapEx Short-term investments YTD Buybacks Deb
Slide 9: Financial Guidance
Financial Guidance Q2 '22 Outlook • Q1 book-to-bill was above 1 • Tariffs on Russian components Revenue $355M - $385M and higher shipping costs are expected to have a negative Gross Margin 44% - 46% impact on gross margin in Q2 Operating Expenses $85M - $87M EPS $0.95 - $1.25 Tax Rate ~26% Diluted c
Slide 10: Vertical Integration Provides Competitive Edge
VERTICAL THE WORLD INTEGRATION LEADER IN PROVIDES FIBER LASERS COMPETITIVE EDGE EXPANDING ENABLING INTO LASER & GREATER NON-LASER AUTOMATION APPLICATIONS STRONG HIGH ELECTRICAL MARGINS, EFFICIENCY ENABLES BALANCE SHEET LOWER CUSTOMER & CASH FLOW ENERGY USE © 2022 IPG Photonics 10
Slide 11: Thank you
Thank you © 2021 IPG Photonics