Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Baird's Virtual Global Consumer, Technology & Services Conference 2020
18 slides from Vishay Precision's conference presentation, Jun 4, 2020
Slide 1: Vishay Precision Group
Vishay Precision Group PERFORMANCE THROUGH PRECISION Baird’s Virtual Global Consumer, Technology & Services Conference June 4, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement From time to time, information provided by us, including but not limited to statements in this report, or other statements made by or on our behalf, may contain "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statem
Slide 3: Investment Highlights
Investment Highlights Proven Financial Performance • Addresses the growing sensor market for 2017-2019: industrial technology applications 3-Year Sales • Serving diversified niches of broad set of markets with organic growth vectors Growth (CAGR) 8% • Deep competitive moats through differentiated 32
Slide 4: VPG Focuses on Key Niches of the Global Sensor Market
VPG Focuses on Key Niches of the Global Sensor Market VPG Applications for VPG products Temperature Force Optical and systems are increasing Infrared Weight due to: $180B • Increasing regulation – requiring more Global Sensor automated monitoring and data Humidity Market1 collection Pressure Ultraso
Slide 5: Serving a Diversified and Broadening Set of Markets
Serving a Diversified and Broadening Set of Markets Other Markets 17% Transportation • Agriculture VPG Value to Customers: 13% • Construction • Consumer • Medical Optimization Safety / Productivity of Systems Regulation Steel 12% 2019 Industrial Revenue Weighing 19% Not reliant on a single market Ge
Slide 6: Productivity
Productivity Semiconductor Test: Helping to maximize the productivity of Automatic Test Equipment (ATE) for Semiconductor products VPG’s high-precision foil resistors help deliver the highest signal accuracy required for effective semiconductor chip testing, providing better precision and stability
Slide 7: Safety and Monitoring
Safety and Monitoring Medical: Helping to improve patient monitoring By precisely monitoring a patient’s weight on hospital beds, VPG’s load cell sensors help nursing staff regulate medication dosage as well as reduce potential falls which are among the highest patient risks during hospital stays PE
Slide 8: Optimization/Precision
Optimization/Precision Consumer: VPG’s solutions provide performance in consumer applications VPG’s advanced sensors are used to precisely measure torque in real- time to enable professional and recreational bike riders to track their training progress in all kinds of weather and road conditions PER
Slide 9: Why VPG Wins
Why VPG Wins Technology Applications Operational Global Innovation Knowledge Excellence Footprint • A pioneer in foil • Engineer-to-engineer • Focus on quality, • 2,400 employees in technology since solutions delivery, and cost 12 countries 1962 • Design-in wins • Key investments in • 2019 sales by
Slide 10: Multi-Year Strategic Initiatives Are Underway
Multi-Year Strategic Initiatives Are Underway • Advanced sensors for high-volume opportunities Organic Growth • TruckWeigh & VanWeigh overload protection • Force Sensors for OEMs • Manufacturing transition of Force Sensors to Asia Operational Excellence • New FTP manufacturing facility and consolida
Slide 11: Advanced Sensor Technology; The World's Smallest, Most Reliable Strain Gage
Advanced Sensor Technology; The World’s Smallest, Most Reliable Strain Gage VPG’s Advanced Sensors feature smaller size, more Potential new applications complex design, higher for advanced sensor resistance, lower energy technology include: consumption, and multi-axis • Consumer measurement capabili
Slide 12: New Regulations in Europe Are Expected to Drive Demand for Truck Overload Protection
New Regulations in Europe Are Expected to Drive Demand for Truck Overload Protection • EU reg-driven opportunity adds to VPG’s current aftermarket sales of these products; EU regulations expected to go into effect in 2021* • All Class 3 & 4 Trucks and Vans Indicator will be required to have this cap
Slide 13: Recap of 1Q20 Highlights
Recap of 1Q20 Highlights • Revenues of $67.7 million were in-line with guidance Revenue & Book-to-Bill • Gross profit margin was 37.0% and adjusted gross $90 1.40 profit margin* was 37.8% $80 1.20 $70 • Diluted earnings per share was $0.24 and adjusted 1.00 Bookings / Revenue $60 diluted earnings pe
Slide 14: Quarterly Financial Model Reflects Operating Leverage
Quarterly Financial Model Reflects Operating Leverage High Qtr 1Q20 Quarterly Financial Model (1Q19)* Actual* Revenue $76.5M $67.7M $65M - $70M $70M - $75M $75M - $80M $80M - $85M Adj. GM% 43.2% 37.8% 37% - 39% 39% - 40% 40% - 42% 42% - 45% Adj. Op. Margin 16.5% 7.8% 4.4% - 8.1% 8.1% - 10.7% 10.7% -
Slide 15: Investment Highlights
Investment Highlights • Addresses the growing sensor market for industrial technology applications • Serving diversified niches of broad set of markets with organic growth vectors • Deep competitive moats through differentiated technology and strong brands • Business model provides operating margin
Slide 16: Appendix
Appendix PERFORMANCE THROUGH PRECISION 16 16
Slide 17: Reconciliation of Adjusted Gross Margin, Operating Income, Net Earnings and Diluted Earnings Per Share
Reconciliation of Adjusted Gross Margin, Operating Income, Net Earnings and Diluted Earnings Per Share - Quarter Net Earnings Attributable to Gross Profit Operating Income VPG Stockholders Diluted Earnings Per share March 28, March 30, March 28, March 30, March 28, March 30, March 28, March 30, Thre
Slide 18: Sales by End-Market
Sales by End-Market ($ in Millions) Fiscal Quarter Ended March 28, 2020 March 30, 2019 December 31, 2019 Test & Measurement $14.3 $17.6 $13.2 Avionics, Military, Space 6.2 8.1 6.3 Transportation 8.2 9.6 8.2 Industrial Weighing 12.5 14.4 12.8 General Industrial 4.0 5.6 4.9 Steel 9.3 8.2 11.5 Other Ma