IPG Photonics Corporation · NASDAQ:IPGP
IPG Photonics — Q3 2021 Earnings Presentation
11 slides from IPG Photonics's earnings presentation, Nov 2, 2021
Slide 1: Earnings Call Presentation Third Quarter 2021
Earnings Call Presentation Third Quarter 2021 November 2, 2021 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 © 2021 IPG
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: Q3 '21 Highlights
Q3 '21 Highlights THE WORLD • Reported Q3 revenue at the top end of the guidance on increased demand in Europe and LEADER IN U.S. and growth in emerging products and applications FIBER LASERS ◦ Total revenue increased 19% YoY despite soft demand in cutting in China ◦ Higher sales in welding, marking
Slide 4: Financial Review
Financial Review In millions except per share Q3 '21 Q3 '20 Y/Y Q2 '21 Q/Q • Gross margin increased, benefiting from lower inventory provisions and a reduction of Revenue $379.2 $318.4 19% $371.7 2% unabsorbed manufacturing expenses as a percent of sales Gross Margin 49.0% 48.0% 48.6% • Operating ex
Slide 5: Revenue by Power
Revenue by Power $200 • Revenue growth was driven by pulsed and medium power lasers, systems, medical and beam delivery $180 • High power (more than 1kW) sales declined as strong growth $160 in welding and cutting applications in Europe and North America was offset by softer demand in cutting in Chi
Slide 6: Revenue by Geography
Revenue by Geography $180 $300 $160 $250 $140 $120 $200 In millions In millions $100 $150 $80 $60 $100 $40 $50 $20 $— $— North America Europe China Other Asia China RoW Q3 '20 Q2 '21 Q3 '21 Q3 '20 Q3 '21 • While China revenue declined, RoW revenue is showing accelerating improvement, accounting for
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q3 '21 • Maintaining strong balance sheet and cash flow generation Cash and Short-term Investments $1,519 • High cash conversion ratio* Inventories $435 • Increased inventories to build a safety stock of critical components Total Debt $35 • Capital All
Slide 8: Strong Balance Sheet and Cash Flow Generation
Strong Balance Sheet and Cash Flow Generation Operating Cash Flow and Capital Allocated Exceptional Balance Sheet $350 $2,000 $300 $250 $1,500 $200 $150 In millions In millions $1,000 $100 $50 $0 $500 -$50 -$100 $0 -$150 -$200 -$500 Q3 '20 Q3 '21 Q4 '20 Q3 '21 YTD Cash from operations Cash YTD CapEx
Slide 9: Financial Guidance
Financial Guidance Q4 '21 Outlook • Q3 book-to-bill was slightly above 1 Revenue $330M - $360M • Expect growth in emerging products and applications to Gross Margin 47% - 49% continue • China cutting sales are Operating Expenses $85M - $87M expected to remain soft EPS $1.00 - $1.30 Tax Rate ~25% Dil
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 © 2021 IPG Photonics 9
Slide 11: Thank you
Thank you © 2021 IPG Photonics