Slide 1: Earnings Call Presentation First Quarter 2024
Earnings Call Presentation First Quarter 2024 April 30, 2024 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
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: Q1 '24 Summary
Q1 '24 Summary • Continued to focus on costs and efficiencies, reduced inventory and returned $90M million to stockholders through share repurchases • Revenue declined across most geographies and most applications due to delayed investments in e- mobility, soft industrial demand and inventory manage
Slide 4: Summary by Application
Summary by Application • Welding – continued growth in general automotive and increased demand in electronics, but was negatively impacted by lower sales in e-mobility and handheld applications • Cutting – declined due to softer industrial and e-mobility demand, and OEM customers managing inventorie
Slide 5: Financial Review
Financial Review In millions except per share Q1 '24 Q1 '23 Y/Y Q4 '23 Q/Q • Gross margin decreased due to lower absorption of Revenue $252.0 $347.2 (27)% $298.9 (16)% manufacturing costs and higher inventory reserves, partially offset by lower product and Gross Margin 38.7% 42.3% 38.2% shipping cos
Slide 6: Revenue by Geography
Revenue by Geography 120 300 100 250 80 200 In millions In millions 60 150 40 100 20 50 0 0 North America Europe China Other Asia China RoW Q1 '23 Q4 '23 Q1 '24 Q1 '23 Q1 '24 • Sales declined in North America due to lower revenue in medical, welding, cleaning and advanced applications, which were pa
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q1 '24 Cash and Short-term Investments $1,140 • Maintaining a strong balance sheet • Continue to focus on inventory control and reducing Inventories $432 the value of inventory on hand Total Debt $— • Capital Allocation ◦ Using cash to fund future grow
Slide 8: Balance Sheet and Cash Flow Generation
Balance Sheet and Cash Flow Generation Operating Cash Flow and Capital Allocated Exceptional Balance Sheet 100 1,500 0 1,000 In millions In millions -100 500 -200 0 YTD 2023 YTD 2024 Dec 2023 Mar 2024 Cash from operations Cash and cash equivalents CapEx Short-term investments Buybacks Debt © 2024 IP
Slide 9: Financial Guidance
Financial Guidance Q2 '24 Outlook Revenue $240M - $270M Gross Margin 37% - 40% Operating Expenses $82M - $85M EPS $0.30 - $0.60 Tax Rate ~25% Diluted common shares ~46M • Q1 book-to-bill was slightly above 1 • Expect to see more stable demand in Q2 © 2024 IPG PHOTONICS 9
Slide 10: The World Leader in Fiber Lasers
VERTICAL THE WORLD INTEGRATION LEADER IN PROVIDES FIBER COMPETITIVE LASERS EDGE EXPANDING LASER & ENABLING DISPLACING GREATER NON-LASER AUTOMATION APPLICATIONS STRONG HIGH ELECTRICAL MARGINS, EFFICIENCY ENABLES BALANCE SHEET LOWER CUSTOMER & CASH FLOW ENERGY USE © 2024 IPG PHOTONICS 10
Slide 11: Thank you
Thank you