Littelfuse, Inc. · NASDAQ:LFUS

Littelfuse — Q3 2024 Earnings Presentation

26 slides from Littelfuse's earnings presentation, Oct 29, 2024

1. Slide 1: Q3 2024 Earnings Release

   1 Q3 2024 EARNINGS RELEASE OCTOBER 29, 2024

2. Slide 2: Important Information About Littelfuse, Inc.

   2Littelfuse, Inc. © 2024 Important Information About Littelfuse, Inc. This presentation does not constitute or form part of, and should not be construed as, an offer or solicitation to purchase or sell securities of Littelfuse, Inc. and no investment decision should be made based upon the informatio

3. Slide 3: Business Update

   BUSINESS UPDATE Dave Heinzmann, President & CEO

4. Slide 4: Executive Summary

   4Littelfuse, Inc. © 2024 EXECUTIVE SUMMARY Resilient & diversified business model  Solid Q3 execution drives results above expectations  Q3 Adjusted EPS exceeded the high end of guidance  Strong cash generation, continued balance sheet flexibility  Meaningful new business wins across global cust

5. Slide 5: 2021–2025 Growth Strategy

   5Littelfuse, Inc. © 2024 2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our capabilities, investments & diversification deliver significant value

6. Slide 6: Electronics End Markets

   6Littelfuse, Inc. © 2024 ELECTRONICS END MARKETS PRODUCT LEADERSHIP, DIVERSE CUSTOMER REACH  Continued solid data center & medical demand; ongoing subdued demand across consumer products, appliance & building technology applications  Healthy design-in activity through cycle  Momentum supports lon

7. Slide 7: Transportation End Markets

   7Littelfuse, Inc. © 2024 TRANSPORTATION END MARKETS BALANCED CAPABILITIES, GLOBAL PARTNERSHIPS  Benefiting from global scale & strong customer relationships  Balanced portfolio serving extensive range of transportation applications  Strong execution amid ongoing soft end market dynamics  Deliver

8. Slide 8: Industrial End Markets

   8Littelfuse, Inc. © 2024 INDUSTRIAL END MARKETS INNOVATIVE SOLUTIONS, BROAD EXPERTISE  Continued end demand softness driven by industrial equipment, factory automation, motor drives & renewables  More pronounced impact on power semiconductor business  Ongoing signs of recovery in HVAC; continued

9. Slide 9: Financial Update

   FINANCIAL UPDATE Meenal Sethna, EVP & CFO

10. Slide 10: Q3 2024 Total Company Financial Performance

    10Littelfuse, Inc. © 2024 Q3 2024 TOTAL COMPANY FINANCIAL PERFORMANCE $2.32$2.30GAAP EPS $2.71$2.97Adj. EPS 21.7%22.0%Adj. EBITDA% $607 $567 Q3-23 Q3-24 Revenue (in millions) See appendix for GAAP to non-GAAP reconciliation Highlights  Revenue (-7%) vs PY (Reported & Organic)  ~2% portfolio prunin

11. Slide 11: Cash Generation & Capital Deployment

    11Littelfuse, Inc. © 2024 CASH GENERATION & CAPITAL DEPLOYMENT  Well-positioned business model & execution drive robust long- term cash generation  Disciplined approach to working capital management  Strong balance sheet supports capital deployment strategy  Net leverage ratio ~1.6x  Prioritizi

12. Slide 12: Q3 2024 Electronics Segment Financial Performance

    12Littelfuse, Inc. © 2024 $344 $304 Q3-23 Q3-24 Q3 2024 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE Revenue (in millions) 16.1%22.4%Op Margin 22.6%28.1%Adj. EBITDA% Highlights See appendix for GAAP to non-GAAP reconciliation  Revenue: (-12%) vs PY (Reported & Organic)  Passive products flat vs PY 

13. Slide 13: Q3 2024 Transportation Segment Financial Performance

    13Littelfuse, Inc. © 2024 $177 $171 Q3-23 Q3-24 Q3 2024 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE Revenue (in millions) 13.7%5.5%Op Margin 19.0%11.2%Adj. EBITDA% See appendix for GAAP to non-GAAP reconciliation Highlights  Revenue: (-3%) vs PY (Reported & Organic)  ~5% portfolio pruning headwin

14. Slide 14: Q3 2024 Industrial Segment Financial Performance

    14Littelfuse, Inc. © 2024 $86 $92 Q3-23 Q3-24 Q3 2024 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE Revenue Revenue: +7% vs PY (Reported & Organic)  Continued HVAC recovery, industrial safety growth and data center momentum  Ongoing end market softness...Renewables, EV infrastructure, factory automati

15. Slide 15: Q4 2024 Guidance

    15Littelfuse, Inc. © 2024 Q4 2024 GUIDANCE  Macro view…further softening in industrial & automotive end markets, muted electronics demand  Passive electronics channel inventories have normalized, protection returning to normal  Ongoing cautious order patterns  Sales $510m - $540m  Down (-7%) se

16. Slide 16: Full Year 2024 Considerations / Expectations

    16Littelfuse, Inc. © 2024 FULL YEAR 2024 CONSIDERATIONS / EXPECTATIONS  FY Pruning impact…(-2%) Company, (-5%) Transportation Segment (heavier Comm. Vehicle)  FY ’24 margin expectations driven by ongoing operational execution, offset by continued soft end demand  Company adj. operating margin ~13

17. Slide 17: Diversification Delivers Double-Digit Revenue & Earnings CAGR

    17Littelfuse, Inc. © 2024 DIVERSIFICATION OF TECHNOLOGIES, END MARKETS & GEOGRAPHIES DELIVERS DOUBLE-DIGIT REVENUE & EARNINGS CAGR '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Revenue (M$) Adjusted EPS 15-year* CAGR: Sales +10% EPS +18% Strong track record of top tier financial pe

18. Slide 18: Appendix

    18Littelfuse, Inc. © 2024 Appendix

19. Slide 19: Supplemental Financial Information: Non-GAAP EPS Reconciliation

    19Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION Non-GAAP EPS reconciliation YTD-23YTD-24Q3-23Q3-24 $ 8.63$ 6.07$ 2.30$ 2.32GAAP diluted EPS 1.090.370.670.39EPS impact of Non-GAAP adjustments (below) $ 9.72$ 6.44$ 2.97$ 2.71Adjusted diluted EPS Non-GAAP adjustments - (income) / expense (

20. Slide 20: Adjusted Operating Margin / Adjusted EBITDA Reconciliation

    20Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Adjusted operating margin / Adjusted EBITDA reconciliation (in millions) YTD-23YTD-24Q3-23Q3-24 $ 216.6$ 152.0$ 57.8$ 58.1Net income Add: 53.042.617.519.7Income taxes 29.829.410.19.8Interest expense 8.74.311.89.6Foreign exchange los

21. Slide 21: Adjusted EBITDA by Segment

    21Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Q3-23Q3-24 Adjusted EBITDA by Segment ( in millions) IndustrialTransportationElectronicsIndustrialTransportationElectronics $ 13.2$ 9.7$ 77.0$ 17.7$ 23.5$ 48.9GAAP operating income Add: 2.63.69.82.63.49.9Add back amortization 1.56.6

22. Slide 22: Net Sales Reconciliation

    22Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Q3-24 vs. Q3-23Net sales reconciliation TotalIndustrialTransportationElectronics (7)%7 %(3)%(12)%Net sales (decline) growth Less: — %— %— %— %FX impact (7)%7 %(3)%(12)%Organic net sales (decline) growth Q3-24 vs. Q3-23Electronics se

23. Slide 23: Q2-24 Segment Operating Margin and Adjusted EBITDA

    23Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Q2-24 % (Decline)/Growth20232024 Operating Margin (7.7)%22.8 %15.1 %Electronics 4.5 %4.5 %9.0 %Transportation (5.4)%16.8 %11.4 %Industrial Q2-24Adjusted EBITDA by Segment ( in millions) IndustrialTransportationElectronics $ 9.5$ 15.

24. Slide 24: Income Tax and Free Cash Flow Reconciliation

    24Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Income tax reconciliation Q3-23Q3-24 $ 17.5$ 19.7Income taxes 23.3 %25.3 %Effective rate 1.22.1Non-GAAP adjustments - income taxes $ 18.7$ 21.8Adjusted income taxes 20.0 %24.3 %Adjusted effective rate Free cash flow reconciliation Q

25. Slide 25: Net Debt and Consolidated Net Leverage Ratio

    25Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D As of September 28, 2024Consolidated Total Debt $ 867.7Consolidated Total Debt 3.0Unamortized debt issuance costs 0.4Finance lease liability 871.1Consolidated funded indebtedness 135.5Cash held in U.S. (up to $400 million) $ 735.6Ne

26. Slide 26: Non-GAAP EPS Reconciliation Q4-23

    26Littelfuse, Inc. © 2024 SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Non-GAAP EPS reconciliation Q4-23 $ 1.71GAAP diluted EPS 0.31EPS impact of Non-GAAP adjustments (below) $ 2.02Adjusted diluted EPS Non-GAAP adjustments - (income) / expense ( in millions) Q4-23 $ 2.7Acquisition-related and integrati

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