Advanced Energy Industries, Inc. · NASDAQ:AEIS

Advanced Energy Industries — Q2 2023 Earnings Presentation

14 slides from Advanced Energy Industries's earnings presentation, Aug 3, 2023

  1. Slide 1: Q2 2023 Earnings Presentation

    Q2 2023 Earnings Presentation AUGUST 3, 2023 1

  2. Slide 2: Safe Harbor

    SAFE HARBOR The company’s guidance and other statements herein or made on the earnings conference call contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Ac

  3. Slide 3: Q2 2023 Summary

    Q2 2023 SUMMARY Angstrom-Era Precision Plasma Power • Q2 2023 results exceeded guidance ‒ Revenue of $416 million and non-GAAP(1) EPS of $1.11 exceeded the midpoints of guidance ‒ Revenue down 2% Q/Q with record Industrial & Medical partially offsetting cyclical weakness in semiconductor ‒ Results v

  4. Slide 4: Strength in Non-Semi Partially Offset Semi Cycle

    STRENGTH IN NON-SEMI PARTIALLY OFFSET SEMI CYCLE ($ in millions) INDUSTRIAL & MEDICAL Up 4% Q/Q & 22% Y/Y SEMICONDUCTOR EQUIPMENT • Achieved another quarter of record Q2 2023 $128M revenue Down 11% Q/Q & 24% Y/Y Total Revenue • Launched six new I&M products • Exceeded guidance of down mid- $173M $41

  5. Slide 5: Q2 2023 Financial Highlights

    Q2 2023 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) $416 million 35.6% $24 million Down 2% Q/Q Down 120 bps Q/Q Down 26% Q/Q NON-GAAP EPS(1) NON-GAAP OP MARGIN(1) CASH & INVESTMENTS(3) $1.11 11.9% $455 million Down 10% Q/Q Down 150 bps Q/Q Net Cash of $92 million (1)

  6. Slide 6: Quarterly Revenue and Backlog Trends

    QUARTERLY REVENUE AND BACKLOG TRENDS $1,200 $1,000 $800 $ in millions $600 Backlog Revenue Target normalized backlog $400M to $500M $400 $200 $0 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 • Total backlog at the end of Q2 2023 was $645 million, down 45% Y/Y and down

  7. Slide 7: Revenue by Market

    REVENUE BY MARKET ORGANIC(1) ($ in m illions) Q2 2023 Q1 2023 Q2 2022 Q/Q Y/Y Y/Y Semiconductor Equipment $173.2 $194.2 $228.8 -10.8% -24.3% -24.1% Industrial & Medical $127.6 $123.0 $105.0 3.7% 21.6% 23.7% Data Center Computing $59.1 $59.7 $69.2 -1.0% -14.6% -14.6% Telecom & Networking $55.7 $48.2

  8. Slide 8: Income Statement

    INCOME STATEMENT ($ in m illions, except per share data) Q2 2023 Q1 2023 Q2 2022 Q/Q Y/Y Revenue $415.5 $425.0 $440.9 -2.2% -5.8% GAAP gross margin 35.4% 36.5% 36.8% GAAP operating expenses $117.3 $115.1 $109.4 1.9% 7.2% GAAP operating margin from 7.2% 9.4% 12.0% continuing ops GAAP EPS from continu

  9. Slide 9: Balance Sheet & Cash Flow

    BALANCE SHEET & CASH FLOW ($ in m illions) Q2 2023 Q1 2023 Q2 2022 • Cash and investments(1) down Q/Q to $455 million ‒ Net cash down 2% Q/Q to $92 million Cash & Investments $455.4 $461.8 $374.8 • Inventory decreased Q/Q to $392 million Inventories $392.3 $401.5 $395.9 ‒ Turns flat Q/Q at 2.7 times

  10. Slide 10: Q3 2023 Guidance

    Q3 2023 GUIDANCE ($ in m illions, except per share data) Guidance Revenue $415 +/- $15 GAAP EPS from continuing operations $0.70 +/- $0.20 Non-GAAP(1) EPS $1.13 +/- $0.20 (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of th

  11. Slide 11: Quarterly Non-GAAP Financials

    QUARTERLY NON-GAAP FINANCIALS(1) Quarterly Trend All figures from Continuing Operations (figures in $ millions, except percentage and EPS) 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Backlog 300.1 280.1 281.5 290.7 405.7 534.7 771.4

  12. Slide 12: Non-GAAP Measures

    NON-GAAP MEASURES Advanced Energy’s non-GAAP measures exclude the impact of non-cash related charges such as stock-based compensation and amortization of intangible assets, as well as discontinued operations, and non-recurring items such as acquisition-related costs and restructuring expenses. The n

  13. Slide 13: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Copyright © 2023 Advanced Energy 13

  14. Slide 14: Q3 2023 Reconciliation of GAAP to Non-GAAP Guidance

    Q3 2023 RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE ($ in m illions, except per share data) Low End Midpoint High End Revenue $400 $415 $430 Reconciliation of Non-GAAP EPS GAAP EPS $ 0.50 $ 0.70 $ 0.90 Stock-based compensation 0.20 0.20 0.20 Amortization of intangible assets 0.19 0.19 0.19 Restructu

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