Bel Fuse Inc. · NASDAQ:BELFA
Bel Fuse — Needham Growth Conference 2015
31 slides from Bel Fuse's conference presentation, Jan 13, 2015
Slide 1: January 13, 2015 Needham Growth Conference
January 13, 2015 Needham Growth Conference
Slide 2: Safe Harbor Statement
Safe Harbor Statement Confidential Bel Fuse, Inc. * Except for historical information contained in this presentation, the matters discussed in this presentation (including the statements regarding the impact of the Company's expertise and products on customer purchasing decisions, anticipated growth
Slide 3: Bel Attendees
Bel Attendees Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT Presenter Background Daniel Bernstein*President & CEO President of Bel since 1992 and CEO since May 2001On the Board of Directors since 1986Held a variety of positions with Bel, including Vice President, Treasurer and Managing Dir
Slide 4: Investment Highlights
Investment Highlights Confidential Bel Fuse, Inc. * Demonstrated history of stable revenue growth and EBITDA Demonstrated history of stable revenue growth and EBITDA Strong track record of cash flow generation Strong track record of cash flow generation Consistent performance driven by:Diverse group
Slide 5: Transformational Growth Through Acquisition
Transformational Growth Through Acquisition Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT 2014 sales reflect estimated full year pro forma sales from acquisitions.
Slide 6: Pursue Highly Strategic Acquisitions
Pursue Highly Strategic Acquisitions Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT Proven, disciplined approach to acquiring companies -Accretive to earnings (EPS) -Leverage our fixed costs -Expand our global footprint -Focus on products and markets that we know Acquisition Rationale and u
Slide 7: Growth through Acquisition
Growth through Acquisition Confidential Bel Fuse, Inc. * Acquired Company Year Products Revenue Purchase Emerson Network Power Connectivity Solutions* 2014 Connectivity $78M $98M ABB/Power-One Power Solutions* 2014 Power $194M $117M TE’s Coil Wound Magnetics Business* 2013 Magnetics $75M $22.4M Arra
Slide 8: Power Solutions at a Glance
Power Solutions at a Glance Product Line Overview Select Customers * Dubnica and GongMing labeled as Plants, but also have design and customer service center Headquarters Global Footprint Design / Sales Centers Manufacturing Facilities Contract Manufacturers 2014 Revenue $194M Product lines Markets
Slide 9: Connectivity Solutions at a Glance
Connectivity Solutions at a Glance Product Line Overview Select Customers Global Footprint 2014 Revenue $78M Product lines Markets served Select product examples RF Coax Connectors & Cables Microwave Components Harsh Environment Optical with Expanded Beam Aerospace , Broadcast, Military, Telecommuni
Slide 10: Leverage our Fixed Cost
Leverage our Fixed Cost Confidential Bel Fuse, Inc. * Restructure management $5.8MUtilized existing Bel management and existing middle level management to restructure senior leadership. Restructure management $5.8MUtilized existing Bel management and existing middle level management to restructure s
Slide 11: Corporate Constraints Lifted
Corporate Constraints Lifted Confidential Bel Fuse, Inc. * Meetings and Programs15% -20% of direct staff time was spent on reporting to corporate, while top management spend 40% - 60% of their time reporting to corporateManagement processes such as weekly staff meetings, PACE, S&OP, GDP programs con
Slide 12: Going Forward
Going Forward Category Bel Power-One Connectivity Solutions Combined Revenue $356M $194M $78M $628M* Employees 5,500 2,000 525 8,025 R&D Centers 16 3 4 23 Manufacturing Sites 13 2 5 20 Facilities 1.86M sq ft 377K sq ft 215K sq ft 2.45M sq ft Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT *
Slide 13: Going Forward
Going Forward Americas35% Annual Revenue • 10 Manufacturing Sites• 10 Design Centers Asia44% Annual Revenue• 5 Manufacturing Sites• 5 Design Centers Europe20% Annual Revenue• 5 Manufacturing Sites• 8 Design Centers Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT
Slide 14: Market Segmentation Revenue By Region
Market Segmentation Revenue By Region Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT
Slide 15: Diverse End-Markets and Blue Chip Customer Base
Diverse End-Markets and Blue Chip Customer Base Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT
Slide 16: Broad, Industry Leading Product Portfolio
Broad, Industry Leading Product Portfolio Integrated Connector Modules Transformers Magnetics Front Ends & Board-Mount Power Industrial Circuit Protection Magnetic Solutions $174 million Power Solutions & Protection$256 million Connectivity Solutions$198 million RF Connectors /Microwave Components P
Slide 17: Power Solutions & Protection
Power Solutions & Protection Technology Leaders in efficiency and power density for Front-End and Board-Mount Power products for networking, cloud and open compute applicationsWorld-Class offering and well-recognized brand Melcher™ in Industrial and transportation marketsComplete Portfolio of Electr
Slide 18: Connectivity Solutions
Connectivity Solutions World-Class RF and Microwave Connector supplierMarket leader for Expanded Beam and Fiber ConnectivityLargest supplier of Boeing approved Circular Connectors (BACC) for the aerospace industry Emerson acquisition creates critical mass in expanded beam and fiber optic connectorsC
Slide 19: Magnetic Solutions
Magnetic Solutions Largest offering of Integrated Connector Module products (MagJack®)Broad offering of Magnetics for industrial, consumer and commercial applicationsLargest selection of IC reference designs Higher bandwidth and greater complexity requirementsContinued expansion of SMD inductor and
Slide 20: Case Study #1
Case Study #1 Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT
Slide 21: Case Study #1
Case Study #1 Confidential Bel Fuse, Inc. * Dura-Con (4) * Bel content $50K per aircraft depending on configuration FQIS (7) Omega (5,500) POWER | PROTECT | CONNECT
Slide 22: Case Study #2
Case Study #2 POWER | PROTECT | CONNECT Confidential Bel Fuse, Inc. *
Slide 23: Case Study #2
Case Study #2 10Gig ICMs Internal Board level components include - Fuses - DC/DC isolated board mount converters - DC/DC point-of-load converters Multiport 1Gig ICMs AC/DC Front-End Power * Bel content $496/unit, depending on configuration Cisco Nexus 7000 Switch POWER | PROTECT | CONNECT Confidenti
Slide 24: Financial Overview
Financial Overview POWER | PROTECT | CONNECT Confidential Bel Fuse, Inc. *
Slide 25: Balance Sheet Highlights
Balance Sheet Highlights Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT 12/31/13 9/30/14 Cash & Cash Equivalents $62.1 mm $83.1 mm Working Capital $137.2 mm $193.4 mm Total Assets $308.1 mm $643.5 mm Total Debt $12.0 mm $235.3 mm Stockholders’ Equity $228.7 mm $229.3 mm Book Value per Share
Slide 26: Cash & Cash Equivalents & Net Debt
Cash & Cash Equivalents & Net Debt Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT
Slide 27: Debt Balance
Debt Balance Loan 9/30/14Balance Payment Schedule Principal Interest Total Debt Payments Term LoansRevolver $212,31223,000 Balance 20142015 $2,68813,438 $3,8616,777 $6,54920,215 Total DebtCash $235,31283,140 201620172018 16,12518,81324,188 6,3345,8105,165 22,45924,62229,352 Net Debt $152,172 2019 16
Slide 28: Pro Forma Historical Capex
Pro Forma Historical Capex Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT In Thousands
Slide 29: Adjusted EBITDA
Adjusted EBITDA Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT FY2012 and FY2013 Proforma Adjusted EBITDA per the June 2014 Lender PresentationFY2014 preliminary Proforma Adjusted EBITDA per the Credit Agreement In Millions
Slide 30: Share Ownership
Share Ownership Confidential Bel Fuse, Inc. * POWER | PROTECT | CONNECT Class ANASDAQ: BELFA Class BNASDAQ: BELFB 2,175,000 shares outstanding19 institutions own ~ 1,044,000 sharesQuarterly dividends $0.06 per share35% held by insiders 9,591,000 shares outstanding101 institutions own ~ 5,906,000 sha
Slide 31: Q&A
Q&A & bel POWER | PROTECT | CONNECT Confidential Bel Fuse, Ine.