Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Stifel 2021 Virtual Cross Sector Insight Conference
23 slides from Vishay Precision's conference presentation, Jun 10, 2021
Slide 1: Vishay Precision Group Stifel Conference Presentation
Vishay Precision Group PERFORMANCE THROUGH PRECISION Stifel Conference Presentation June 10, 2021 1/13/21 PERFORMANCE THROUGH PRECISION
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 state
Slide 3: Highlights
Highlights Proven Financial Performance • Addresses the growing sensor market for 2017-2020: industrial technology applications 4-Year Sales • Leader in diversified niches across broad set of markets with organic growth drivers Growth (CAGR) 5% • Effective business model and demonstrated 16% resilie
Slide 4: VPG Focuses on Key Niches of the Global Sensor Market
VPG Focuses on Key Niches of the Global Sensor Market Foil Technology Products VPG: a leader in proprietary • Foil Resistors • Strain gages-advanced sensors sensor and sensor-based • Data acquisition systems systems solutions addressing demanding applications in a diversified Force Sensors Weighing
Slide 5: Serving a Diversified and Broadening Set of Markets
Serving a Diversified and Broadening Set of Markets Other Markets 21% Transportation • Agriculture 11% VPG Value to Customers: • Construction • Consumer • Medical Industrial Optimization Safety / Weighing Productivity of Systems Regulation 2020 16% Revenue Not reliant on a single market Steel 14% by
Slide 6: Multi-Year Strategic Growth and Cost Initiatives Underway
Multi-Year Strategic Growth and Cost Initiatives Underway Strategy/Milestones Organic Sales Growth of Strategic Initiatives • Ongoing product and sales growth 2017-2020 Organic (CAGR) Growth • Investment in key growth 4-Year Sales CAGR 2017-2020 initiatives 44% 31% 33% • Manufacturing consolidations
Slide 7: Strategic Growth and Cost Initiatives Driving VPG's Financial Performance
Strategic Growth and Cost Initiatives Driving VPG’s Financial Performance 4-Year CAGR 2017-2020 15% 16% 10% 6% 5% Sales Adj. Gross Adj. Operating Adj. EPS Adj. EBITDA Profit Profit • Adjusted Gross margin, Adjusted Operating margin, Adjusted Diluted EPS, and Adjusted EBITDA exclude purchase accounti
Slide 8: Strong Cash Flow Generation
Strong Cash Flow Generation Cumulative Cash from Operations 2016 - 2020 $160 • VPG generated $136 million in $140 Cash From $136 cash from operations from 2016 Operations $120 through 2020 Adj. Free Cash $100 Flow* $100 • Historically strong cash flow has funded key acquisitions of $ Millions $80 $7
Slide 9: Strong Cash Flow and Balance Sheet Support Clear Capital Allocation Strategy
Strong Cash Flow and Balance Sheet Support Clear Capital Allocation Strategy To Build Shareholder Value 1. Invest in organic growth and cost reduction initiatives: e.g., new FTP manufacturing facility to support Advanced Sensors Core growth, other manufacturing consolidations Capital Allocation 2. B
Slide 10: VPG's Track Record of Successful M&A
VPG’s Track Record of Successful M&A Dynamic Systems Inc. Spin-out and IPO July 2010 December 2015 November 2019 January 2013 June 2021 April 2016 10 PERFORMANCE THROUGH PRECISION
Slide 11: VPG Acquires Privately held DTS on June 1, 2021
VPG Acquires Privately held DTS on June 1, 2021 • Adds niche, sensor and data acquisition company to VPG platform • DTS is a highly profitable, established business with strong cash flow • Expands market penetration in automotive test and measurement and AMS, with Blue Chip customers • Complementary
Slide 12: DTS: Test & Measurement That Makes a Difference
DTS: Test & Measurement That Makes a Difference DTS specializes in miniature DAQ and portable data logger solutions, which are engineered for extreme test environments to enable product development, performance validation and safety testing. Key Markets/Applications: • Automotive • Avionics, Militar
Slide 13: Safety Testing
Safety Testing Testing: Helping to improve safety and survivability Engineered for extreme test environments, DTS’ rugged compact data loggers and sensors are integrated into crash dummies for use in automotive, aerospace, and defense safety testing. 13 PERFORMANCE THROUGH PRECISION
Slide 14: Investment Highlights
Investment Highlights • Addresses the growing sensor market for industrial technology applications • Leader in diversified niches across broad set of markets with organic growth drivers • Effective business model and demonstrated resilience during global pandemic • Steps already in place to realize
Slide 15: Thank You
Thank You 18 PERFORMANCE THROUGH PERFORMANCE THROUGH PRECISION PRECISION 15
Slide 16: Appendix
Appendix PERFORMANCE THROUGH PERFORMANCE THROUGH PRECISION PRECISION 16 16
Slide 17: Consolidated Results/Market Trends
Consolidated Results/Market Trends Financial Highlights Revenue by Market ($ in millions) Fiscal quarter ended ($ in millions) Fiscal quarter ended April 3, March 28, December 31, April 3, March 28, December 2021 2020 2020 2021 2020 31, 2020 Test & Measurement $ 14.4 $ 14.3 $ 13.3 Net revenues $ 70.
Slide 18: Segment Results/Trends
Segment Results/Trends Weighing and Control Foil Technology Products Force Sensors Systems ($ in millions) Q1 Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 2021 2020 2020 2021 2020 2020 2021 2020 2020 Net revenues $ 32.7 $ 30.5 $ 36.5 $ 16.9 $ 14.7 $ 16.3 $ 20.9 $ 22.5 $ 22.7 Gross profit $ 13.0 $ 11.2 $ 14.0 $ 6.0 $ 3.6
Slide 19: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS - Quarter
Reconciliation of Adjusted Gross Profit, 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 28, March 28, March 28, Three months ended April 3, 2021 2020 April
Slide 20: Reconciliation of Adjusted Gross Profit by Segment
Reconciliation of Adjusted Gross Profit by Segment 2021 2020 2020 Q1 Q1 Q4 Foil Technology Products As reported - GAAP $ 13,039 $ 11,201 $ 14,023 As reported - GAAP Margins 39.9 % 36.7 % 38.4 % COVID-19 impact 53 — 163 Start-up costs $ 129 As Adjusted - Non GAAP $ 13,221 $ 11,201 $ 14,186 As Adjuste
Slide 21: Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted EPS - Fiscal Years
Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share – Fiscal Years Net Earnings Attributable to VPG Gross Profit Operating Income Stockholders Diluted Earnings Per share Fiscal Year Ended December 31, 2020 2019 2020 2019 2020 2019 2020 2019 As repor
Slide 22: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Calculation of EBITDA and Adjusted EBITDA In $ (000), except percentages Years Ended December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 Net Earnings 10,787 22,188 23,646 14,345 6,404 Interest Expense 1,366 1,
Slide 23: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA PERFORMANCE THROUGH PRECISION 23
Vishay Precision Group — Stifel 2021 Virtual Cross Sector Insight Conference on 6ix