Slide 1: 4Q 2022 Earnings Conference Call
4Q 2022 Earnings Conference Call February 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: New CEO Introduction
New CEO Introduction Vishay Yesterday Tomorrow • 32-year career at Vishay, spanning engineering, marketing, sales, Operations Customers & Markets operations and business development • Vishay has: • Pristine balance sheet Cash Flow • Broad product portfolio P&L • Global manufacturing locations, 86% o
Slide 4: Highlights
Highlights Total Revenues ($M) • 4Q 2022 revenues of $855.2 million 950 • 4Q 2022 EPS of $0.51; adjusted EPS of $0.69 900 • 4Q 2022 book-to-bill of 0.94 850 • Backlog at quarter end of 8.3 months for semis and 800 7.8 months for passives 750 • FY 2022 capex of $325.3 million 4Q 2021 3Q 2022 4Q 2022
Slide 5: 4Q 2022 Revenue Mix
4Q 2022 Revenue Mix Sales Channels End Markets OEM 37% Auto 31% Industrial 38% Distribution 55% EMS 8% Consumer 6% Telecom 3% Power Supplies 5% Medical 4% Military/Avionics 7% Computing 6% • Indications of inventory correction in 12.4% decline of sales to distribution versus 3Q 2022 • Automotive rev
Slide 6: 4Q 2022 Revenue Mix
4Q 2022 Revenue Mix Business Segments Regions Inductors 9% Opto 8% Asia 36% Diodes 21% Resistors 24% Americas 31% MOSFETs 24% Capacitors 14% Europe 33% • Revenues in Asia declined 12.8% due to a decline of sales to distribution versus 3Q 2022; POS in Asia down modestly © VISHAY INTERTECHNOLOGY, INC.
Slide 7: 4Q 2022 Income Statement Highlights
4Q 2022 Income Statement Highlights Adjusted Net Earnings 4Q 2022 vs 3Q 2022 • Gross margin of 29.1% $M $M 160 160 134 4 • Operating expenses of $113.8 million 140 140 120 120 17 99 100 100 (30) • Operating margin of 15.8% 80 (14) (7) (5) 80 60 60 40 40 • EBITDA margin of 20.0% 20 20 0 0 • EPS of $0
Slide 8: 4Q 2022 Cash Conversion Cycle
4Q 2022 Cash Conversion Cycle DSO DOI 50 100 45 90 40 35 80 30 25 70 4Q 2021 3Q 2022 4Q 2022 4Q 2021 3Q 2022 4Q 2022 DPO Cash Conversion Cycle 40 110 35 100 90 30 80 70 25 60 20 50 4Q 2021 3Q 2022 4Q 2022 4Q 2021 3Q 2022 4Q 2022 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 8
Slide 9: Consistently Strong Cash Flow Generation
Consistently Strong Cash Flow Generation Cash Flow from Operations ($/M) Capex ($/M) 250 500 170 350 200 150 325 450 130 300 150 400 110 275 100 90 250 50 350 70 225 0 50 200 300 4Q 2021 3Q 2022 4Q 2022 4Q 2021 3Q 2022 4Q 2022 FY 2021 FY 2022 FY 2021 FY 2022 Free Cash Flow ($/M) Stockholder Returns
Slide 10: Guidance
Guidance • 1Q 2023 total revenue range: $825 million - $865 million. • 1Q 2023 gross profit margin range: 28.0% +/- 50 basis points. • 1Q 2023 operating expenses: $116 million – $119 million. FY 2023 $475 million - $485 million (at current exchange rates). • FY 2023 normalized effective tax rate: ~3
Slide 11: Overview of 2023 - 2025
Overview of 2023 - 2025 2023 2024 Staging Year 2025 - Heavy investment in Some growth capacity expansion and capacity available Growth capacity internal resources - Continue heavy available investment - Ready to meet growing demand for electrification in our key markets Committed to investing ~$1.2
Slide 12: 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 ~$385 million in 2023, primarily on expansion projects • External: outsource production of commodity products to subcontractors 3. Enhan
Slide 13: 2023 Takeaways
2023 Takeaways By the end of 2023 600V and 1200V Implemented go-to- Qualified planar SiC Prepare 3-year market strategies subcontractors MOSFETs samples strategic plan for 30 key products available © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 13
Slide 14: Appendix
APPENDIX © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..
Slide 15: Tax Structure
Tax Structure To sustainably fund our growth plan and stockholder return policy by providing greater access to the Company’s offshore cash balances • During 4Q 2022, the Company changed its indefinite reinvestment assertion on substantially all unremitted earnings in Germany • Recorded additional ta
Slide 16: 4Q 2022 Segment Results ($/M)
4Q 2022 Segment Results ($/M) MOSFETs Diodes Opto Revenues Oper. Inc. Revenues Oper. Inc. Revenues Oper. Inc. 4Q 2022 206.0 63.7 4Q 2022 181.8 36.1 4Q 2022 64.0 12.9 3Q 2022 225.2 71.9 3Q 2022 209.0 51.4 3Q 2022 73.4 22.0 4Q 2021 171.3 40.2 4Q 2021 192.1 39.5 4Q 2021 78.4 21.3 FY 2022 762.3 228.7 FY
Slide 17: FY 2022 Revenue Mix
FY 2022 Revenue Mix Sales Channels End Markets OEM 35% Auto 31% Industrial 39% Distribution 58% EMS 7% Consumer 5% Computing 7% Power Supplies 5% Telecom 3% Medical 4% Military/Avionics 6% © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 17
Slide 18: FY 2022 Revenue Mix
FY 2022 Revenue Mix Business Segments Regions Inductors 9% Opto 8% Asia 38% Americas 29% Resistors 24% Diodes 22% MOSFETs 22% Europe 33% Capacitors 15% © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 18
Slide 19: Broad Customer Base
Broad Customer Base OEM EMS DISTRIBUTION © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 19
Slide 20: Broadest Line of Discrete Semiconductors and Passive Components
Broadest Line of Discrete Semiconductors and Passive Components Source: Company estimates = Major Position = Minor Position © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 20
Slide 21: Strong Generation of Free Cash
Strong Generation of Free Cash $300 $300 $250 $250 $200 $200 $150 $150 $100 $100 $50 $50 $0 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Cash Flows from Operations Less Capital Expenditures Proceeds from Sale of Property and Equipment © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 21
Slide 22: Reconciliation of GAAP net earnings to Adjusted net earnings
Reconciliation of GAAP net earnings to Adjusted net earnings 4Q 3Q 4Q in millions, except for per share amounts 2022 2022 2021 GAAP net earnings attributable to Vishay stockholders $73 $140 $37 Reconciling items affecting tax expense (benefit): Effects of changes in uncertain tax positions - ($6) -
Slide 23: Reconciliation of GAAP net earnings to Adjusted net earnings
Reconciliation of GAAP net earnings to Adjusted net earnings FY FY in millions, except for per share amounts 2022 2021 GAAP net earnings attributable to Vishay stockholders $429 $298 Reconciling items affecting gross profit: Impact of the COVID-19 pandemic $7 - Other reconciling items affecting oper
Slide 24: Reconciliation of Free Cash
Reconciliation of Free Cash 4Q 3Q 4Q in millions 2022 2022 2021 Net cash provided by operating activities $166 $209 $147 Proceeds from sale of property and equipment $1 - - Less: Capital expenditures ($153) ($76) ($100) Free cash $14 $133 $46 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 24
Slide 25: Reconciliation of Free Cash
Reconciliation of Free Cash FY FY in millions 2022 2021 Net cash provided by operating activities $484 $457 Proceeds from sale of property and equipment $1 $1 Less: Capital expenditures ($325) ($218) Free cash $160 $240 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 25
Slide 26: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA 4Q 3Q 4Q in millions 2022 2022 2021 GAAP net earnings attributable to Vishay stockholders $73 $140 $37 Net earnings attributable to noncontrolling interests - $1 - Net earnings $73 $141 $37 Interest expense $4 $4 $4 Interest income ($4) ($2) - Income taxe
Slide 27: Reconciliation of EBITDA and Adjusted EBITDA
Reconciliation of EBITDA and Adjusted EBITDA FY FY in millions 2022 2021 GAAP net earnings attributable to Vishay stockholders $429 $298 Net earnings attributable to noncontrolling interests $2 $1 Net earnings $430 $299 Interest expense $17 $18 Interest income ($8) ($1) Income taxes $163 $136 Deprec
Slide 28: Thank you
Thank you © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED..