Bel Fuse Inc. · NASDAQ:BELFA
Bel Fuse — IDEAS East Coast Conference 2024
22 slides from Bel Fuse's conference presentation, Jun 12, 2024
Slide 1: IDEAS East Coast Conference - NYC
IDEAS East Coast Conference - NYC June 12, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement The Company’s consolidated operating results are affected by a Forward-Looking Statements can be identified by such words as wide variety of factors that could materially and adversely affect “anticipates,” “believes,” “plan,” “assumes,” “could,” “should,” revenues and profitab
Slide 3: Company Overview
Company Overview Powering, protecting and connecting electronic circuits since 1949 Headquarters West Orange, New Jersey NASDAQ BELFA/BELFB Annual Sales $596M* Adj EBITDA / % of Sales $107M* / 18.0%* * Trailing 12-months March 31, 2024 POWER | PROTECT | CONNECT 3
Slide 4: Diversity is our Strength
Diversity is our Strength Product Group End Markets Customer Type Geographic Region 18% 15% 31% 29% 31% 15% 49% 33% 69% 70% 16% 24% Power Solutions & Protection Networking OEM North America Connectivity Solutions Industrial Distributor APAC Magnetic Solutions Aerospace/Defense Europe Various (distri
Slide 5: Tailwinds from Key Sector Fundamentals
Tailwinds from Key Sector Fundamentals Artificial Increased Data 5G / EV and Electrification Miniaturization Intelligence Generation Connectivity Infrastructure (AI) Positive end market trends position Bel for long-term success POWER | PROTECT | CONNECT 5
Slide 6: Bel's Segment Overview
Bel’s Segment Overview Power Solutions & Protection Connectivity Solutions Magnetic Solutions 9% 10% Distribution 25% Distribution 22% 30% Network/Cloud Network/Cloud 39% Military End Markets 19% Industrial 7% Industrial 57% Distribution Rail Network/Cloud 21% Industrial E-Mobility 8% 32% 21% Aerosp
Slide 7: Exciting Growth Drivers
Exciting Growth Drivers Near-Term Medium-Term Continued Strength in 2024 Emerging Markets: Growth Drivers for 2025 and Beyond Aerospace Defense Rail Niche EV and Artificial Industrial Infrastructure Intelligence (AI) Rebound expected mid-late 2024 Premise Consumer Distribution Networking Space Wirin
Slide 8: Growth Driver: Aerospace
Growth Driver: Aerospace End Users • Aircraft Manufacturers • Wire Harness Manufacturers • Sub System Manufacturers • Direct Airlines and MRO providers Sales FQIS (7) Millions 60 (monitors fuel quantity) 50 200% Dura-Con (4) 40 (used in navigation controls; 30 carries both power and signal) Omega (5
Slide 9: Growth Driver: Defense
Growth Driver: Defense Applications • Communications • Encryption • Munitions • Key programs: JSF, AEGIS, Patriot, AIM 9X, F16, MFoCs Sales Millions 60 24% 50 40 30 20 10 - 2019 2020 2021 2022 2023 Q1-24 Defense Sales = $10.7 million POWER | PROTECT | CONNECT 9
Slide 10: Growth Driver: Railway
Growth Driver: Railway Applications • Battery Charging • Brake System • Train Control System • Headlights • Crossing Barriers • Railway Signals • Control/Computer Room Sales Millions 35 33% 30 25 20 15 10 5 - 2019* 2020* 2021 2022 2023 Q1-24 Rail Sales = $10.3 million POWER | PROTECT | CONNECT 10
Slide 11: Growth Driver: eMobility
Growth Driver: eMobility End Uses • Construction vehicles • Ground support equipment • OEM bus & truck • Mining • Specialty vehicles Sales 30 182% 25 20 15 Featured Products 10 5 - 2019 2020 2021 2022 2023 Q1-24 eMobility Sales = $5.5 million POWER | PROTECT | CONNECT 11
Slide 12: Our Journey of Change To Date
Our Journey of Change To Date 2021 2022 2023 2024 Farouq Tuweiq Pricing Strategy Kenneth Lai Steve Dawson Joins as Bel’s first CFO Round 2 - Targeted VP Asia Operations VP Power Solutions & Protection February 2021 March 2022 January 2023 July 2024 Pricing Strategy Sabine Muehlberger Joe Berry Round
Slide 13: Management Team
Management Team Dan Bernstein President & CEO Farouq Tuweiq CFO Dennis Ackerman Pete Bittner Joe Berry Kenneth Lai Suzanne Kozlovsky Lynn Hutkin President President President Vice President Global Head of People Vice President Bel Power Solutions Cinch Connectivity Magnetics Asia Operations Financia
Slide 14: Historical Financial Performance
Historical Financial Performance Historical Revenue / GM% Historical Adjusted EBITDA ($ in millions) Power Connectivity Magnetics GM% ($ in millions) $110.5 $107.0 $110.0 700 $654 $640 0.4 $100.0 18.0% $596 17.3% 600 $543 $90.0 $83.0 15.0% 0.35 $466 35.3% $80.0 500 33.7% $70.0 0.3 12.7% 400 $60.0 $4
Slide 15: Share Information
Share Information Key Statistics (as of 6/7/24) Shares outstanding Market cap Enterprise value EV/EBITDA 12.6M $857M $796M* 7.4x NDQ: BELFA NDQ: BELFB voting non-voting Stock price Stock price $81.70 $65.14 Outstanding shares* Outstanding shares* 2,124,000 10,496,000 Quarterly dividends Quarterly di
Slide 16: Q&A
Q&A
Slide 17: Leadership Transition: Power Segment
Leadership Transition: Power Segment Steve Dawson President of Bel Power Solutions & Protection (Effective July 2024) • >25 years of experience in power and circuit protection • Currently serves as Vice President of Business Development and Marketing for the Power Solutions & Protection segment • In
Slide 18: Journey of Transformation
Journey of Transformation $ in millions FY 2019 TTM 3/31/24 Quality & Expansion of Revenue Sales $493 $596 • Double down on high-growth and emerging markets Gross Margin % 22.3% 35.3% • Focus on quality relationships with the right customers • Play for favorable positioning on product designs Adj EB
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights March December $ in millions 2024 2023 Cash/T-Bills $121 $127 Debt 60 * 60* Equity 347 341 Working Capital 278 271 Current Ratio 4.2 to 1 3.4 to 1 Inventory Turns (excl R&D) 3.0x 3.1x DSO 59 days 55 days Leverage Ratio 0.3x 0.14x * The Company’s debt balance is now 100% cove
Slide 20: Global Presence
Global Presence NORTH AMERICA EUROPE APAC 7 Manufacturing Sites 3 Manufacturing Sites 6 Manufacturing Sites 8 Sales Offices 3 Sales Offices 4 Sales Offices 9 Research & Design Centers 5 Research & Design Centers 4 Research & Design Centers 70% of Sales1 15% of Sales1 15% of Sales1 1Global sales brea
Slide 21: Product Overview
Product Overview Power Supplies Circuit Protection Magnetics MagJack® Connectors Cable Assemblies POWER | PROTECT | CONNECT 21
Slide 22: : POWER
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