Slide 1: Earnings Call Presentation Third Quarter 2022
Earnings Call Presentation Third Quarter 2022 November 1, 2022 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 © 2022 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 '22 Highlights
Q3 '22 Highlights • Solid growth in e-mobility and medical offset by FX and soft general industrial demand THE WORLD in China and Europe LEADER IN FIBER LASERS ◦ Total revenue decreased 8% YoY due to currency headwinds and lower revenue in cutting applications in China and Europe, partially offset b
Slide 4: Financial Review
Financial Review • Gross margin decreased due to In millions except per share Q3 '22 Q3 '21 Y/Y Q2 '22 Q/Q higher cost of product sold, inventory reserves, shipping costs and tariffs, Revenue $349.0 $379.2 (8)% $377.0 (7)% offset by higher manufacturing cost absorption • FX transaction gain increase
Slide 5: Revenue by Power
Revenue by Power • High power (more than 1kW) sales declined due to softer 200 demand in cutting in China and Europe, partially offset by 180 growth in welding applications; sales of ultra-high power lasers (more than 6kW) represented 45% of high power lasers 160 • Pulsed lasers sales declined due t
Slide 6: Revenue by Geography
Revenue by Geography 160 300 140 250 120 200 In millions In millions 100 80 150 60 100 40 20 50 0 0 North America Europe China Other Asia China RoW Q3 '21 Q2 '22 Q3 '22 Q3 '21 Q3 '22 • Sales increased slightly in North America year over year, driven by growth in cutting, welding and medical applicat
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q3 '22 • Returning capital to shareholders while maintaining a strong balance sheet Cash and Short-term Investments $1,235 • Inventory stabilized, albeit at a high level due to FX and safety stock of components Inventories $556 • Capital Allocation Tot
Slide 8: Balance Sheet and Cash Flow Generation
Balance Sheet and Cash Flow Generation Operating Cash Flow and Capital Allocated Exceptional Balance Sheet 400 2,000 300 200 1,500 100 In millions In millions 0 1,000 -100 -200 500 -300 -400 0 -500 -600 -500 Q3 '21 Q3 '22 Q4 '21 Q3 '22 YTD Cash from operations Cash and cash equivalents YTD CapEx Sho
Slide 9: Financial Guidance
Financial Guidance Q4 '22 Outlook • Q3 book-to-bill was slightly above 1 Revenue $300M - $330M • FX is expected to have a negative impact on revenue in Gross Margin 42% - 44% Q4 Operating Expenses $77M - $79M EPS $0.70 - $1.00 Tax Rate ~25% Diluted common shares ~51M VERTICAL INTEGRATION PROVIDES CO
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 © 2022 IPG Photonics 10
Slide 11: Thank you
Thank you © 2021 IPG Photonics