Slide 1: 2Q 2023 Earnings Conference Call
2Q 2023 Earnings Conference Call August 9, 2023 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..
Slide 2: Notes on Forward-Looking Statements and Non-GAAP Financial Measures
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% 5% 4% 100% 7% 7% 7% 8% 8% 6% 27% 27% 28% 80% 16% 17% 20% 33% 39% 39% 60% 35% 33% 29% 36% 36% 40% 40% 54% 54% 60% 20% 37% 37% 41% 37% 37% 32% 0% 2Q23 1Q23 2Q2022 2Q23 1Q23 2Q22 2Q23 1Q23 2Q22 Industrial Automotive
Slide 4: 2Q 2023 Highlights
2Q 2023 Highlights Total Revenues ($M) 900 892.1 871.1 863.5 • 2Q 2023 revenues of $892.1 million 850 800 • 2Q 2023 EPS of $0.68 750 700 • 2Q 2023 book-to-bill of 0.69 650 • Backlog at quarter end was 6.4 months 600 550 • Returned a total of $34.2 million to stockholders 500 450 2Q23 1Q23 2Q22 © VIS
Slide 5: 2Q 2023 Income Statement Highlights
2Q 2023 Income Statement Highlights Net Earnings 2Q 2023 vs 1Q 2023 • Gross margin of 28.9% $M $M 120 120 112 6 100 (6) 1 7 95 100 • SG&A expenses of $122.9 million (22) (3) 80 80 60 60 • Operating margin of 15.1% 40 40 20 20 • EBITDA margin of 19.9% 0 0 • EPS of $0.68 © VISHAY INTERTECHNOLOGY, INC.
Slide 6: Segment Results ($/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 2Q 2023 $207.4 34.7% 0.68 2Q 2023 $174.7 23.4% 0.54 2Q 2023 $64.4 24.2% 0.70 1Q 2023 $198.2 36.8% 0.95 1Q 2023 $175.7 27.4% 0.71 1Q 2023 $60.4 36.3% 0.72
Slide 7: Cash Conversion Cycle
Cash Conversion Cycle DSO DIO 50 99 98 45 97 40 96 35 95 94 30 93 25 92 2Q23 1Q23 2Q22 2Q23 1Q23 2Q22 DPO Cash Conversion Cycle 38 120 36 110 34 100 32 30 90 28 80 26 70 24 22 60 20 50 2Q23 1Q23 2Q22 2Q23 1Q23 2Q22 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 7
Slide 8: Consistently Strong Cash Flow Generation
Consistently Strong Cash Flow Generation Cash Flow from Operations ($/M) Capex ($/M) 140 650 80 400 120 600 350 550 100 300 60 500 80 250 450 60 200 400 40 40 350 150 20 300 100 0 TTM TTM 20 TTM TTM 2Q23 1Q23 2Q22 2023 2022 2Q23 1Q23 2Q22 2023 2022 Free Cash Flow ($/M) Stockholder Returns ($/M) 100
Slide 9: Guidance
Guidance • 3Q 2023 total revenue range: $840 million - $880 million. • 3Q 2023 gross profit margin range: 27.7% +/- 50 basis points. • 3Q 2023 SG&A: $125 million plus/minus $2 million. FY 2023 $490 million - $500 million (at current exchange rates). • FY 2023 normalized effective tax rate: ~28.5%. •
Slide 10: 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 ~$385 million in 2023, primarily on expansion projects • External: outsource production of commodity products to subcontractors 3. Enhan
Slide 11: 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. 11
Slide 12: Appendix
APPENDIX © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..
Slide 13: More than 60% of Revenues for Non-Commodity and Custom
More than 60% of Revenues for Non-Commodity and Custom 12 Trailing Months 2Q23 100% Hundreds 14% 20% 27% 80% 33% 20% 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 14: Broad Customer Base
Broad Customer Base OEM EMS DISTRIBUTION © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 14
Slide 15: 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. 15
Slide 16: P&L
P&L In millions, except per share amounts 2Q 2023 1Q 2023 2Q 2022 Net revenues $892.1 $871.0 $863.5 Cost of products sold 634.6 592.3 602.3 Gross profit 257.5 278.7 261.2 Gross margin 28.9% 32.0% 30.3% SG&A 122.9 120.1 110.4 Operating income 134.6 158.6 150.8 Operating margin 15.1% 18.2% 17.5% Other
Slide 17: 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 2Q 2023 1Q 2023 2Q 2022 GAAP net earnings attributable to Vishay stockholders $95.0 $111.8 $112.4 Reconciling items affecting tax expense (benefit): - - $6.7 Impact of the COVID-19 pandemic Reconci
Slide 18: Reconciliation of Free Cash
Reconciliation of Free Cash In millions 2Q 2023 1Q 2023 2Q 2022 Net cash provided by operating activities $107.2 $129.9 $74.7 Proceeds from sale of property and equipment 0.7 0.3 0.3 Less: Capital expenditures (71.7) (45.6) (59.8) Free cash $36.2 $84.6 $15.2 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS
Slide 19: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA In millions 2Q 2023 1Q 2023 2Q 2022 GAAP net earnings attributable to Vishay stockholders $95 $111.8 $112.4 Net earnings attributable to noncontrolling interests 0.4 0.4 0.4 Net earnings $95.4 $112.2 $112.8 Interest expense $6.4 $5.1 $4.3 Interest income
Slide 20: Net Earnings Adjusted – 2Q 2023 vs 2Q 2022
Net Earnings Adjusted – 2Q 2023 vs 2Q 2022 $M $M 160 160 10 140 140 10 118 120 120 2 100 95 100 (30) (13) (1) 80 80 60 60 40 40 20 20 0 0 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 20
Slide 21: Vishay – The DNA of tech.
Vishay – The DNA of tech. TM © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..