Advanced Energy Industries, Inc. · NASDAQ:AEIS

Advanced Energy Industries — Q4 2022 Earnings Presentation

15 slides from Advanced Energy Industries's earnings presentation, Feb 8, 2023

  1. Slide 1: Q4 2022 Earnings Presentation

    Q4 2022 Earnings Presentation FEBRUARY 8, 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: Q4 and Full Year 2022 Summary

    Q4 AND FULL YEAR 2022 SUMMARY • Strong results for Q4 and full year 2022 ‒ Revenue of $491 million and non-GAAP(1) EPS of $1.70 were both second highest levels ever ‒ Achieved record 2022 revenue of $1.85 billion and record non-GAAP(1) EPS of $6.49 ‒ Annualized 2H’22 non-GAAP(1) EPS exceeded our asp

  4. Slide 4: Delivered Solid Growth Across Our Markets

    DELIVERED SOLID GROWTH ACROSS OUR MARKETS ($ in millions) INDUSTRIAL & MEDICAL Up 21% Y/Y, Flat Q/Q SEMICONDUCTOR EQUIPMENT $119 • Backlog grew Q/Q despite record Up 30% Y/Y, Down 13% Q/Q Q4 2022 shipments Total Revenue • Industrial wins in 3D printing, test & • Roughly half of Q/Q decline due to me

  5. Slide 5: Q4 2022 Financial Highlights

    Q4 2022 FINANCIAL HIGHLIGHTS REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW $491 million 36.6% $70.7 million Up 24% Y/Y Up 110 bps Y/Y Up 106% Y/Y NON-GAAP EPS* NON-GAAP OP MARGIN* CASH & INVESTMENTS(2) $1.70 16.0% $461 million Up 25% Y/Y Up 220 bps Y/Y Net Cash of $88 million (1) Detailed exp

  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 level of $400M to $500M $400 $200 $0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 • Total backlog at the end of Q4 2022 was $875 million, down 6% Y/Y and do

  7. Slide 7: Q4 Revenue by Market

    Q4 REVENUE BY MARKET ORGANIC(1) ($ in m illions) Q4 2022 Q3 2022 Q4 2021 Q/Q Y/Y Y/Y Semiconductor Equipment $232.5 $266.6 $179.3 -12.8% 29.6% 28.8% Industrial & Medical $119.3 $119.6 $98.8 -0.2% 20.8% 1.4% Data Center Computing $94.5 $87.5 $80.1 8.0% 18.0% 18.0% Telecom & Networking $44.4 $42.6 $38

  8. Slide 8: 2022 Revenue by Market

    2022 REVENUE BY MARKET ORGANIC(1) ($ in m illions) 2022 2021 Y/Y Y/Y Semiconductor Equipment $930.8 $710.2 31.1% 30.5% Industrial & Medical $426.8 $341.2 25.1% 11.5% Data Center Computing $327.5 $270.9 20.9% 20.9% Telecom & Networking $160.3 $133.7 19.9% 20.0% Total Revenue $1,845.4 $1,456.0 26.7% 2

  9. Slide 9: Income Statements

    INCOME STATEMENTS ($ in m illions, except per share data) Q4 2022 Q3 2022 Q4 2021 Q/Q Y/Y 2022 2021 Y/Y Revenue $490.7 $516.3 $396.9 -4.9% 23.6% $1,845.4 $1,456.0 26.8% GAAP gross margin 36.2% 37.0% 35.2% 36.6% 36.6% GAAP operating expenses $119.7 $113.6 $97.5 5.3% 22.7% $442.4 $380.6 16.2% GAAP ope

  10. Slide 10: Q4 2022 Balance Sheet & Cash Flow

    Q4 2022 BALANCE SHEET & CASH FLOW ($ in m illions) Q4 2022 Q3 2022 Q4 2021 • Cash and investments increased 12% Q/Q to $461 Cash & Investments $460.9 $411.2 $546.7 million ‒ Net cash up Q/Q to $88 million Accounts Receivable $300.7 $307.0 $237.2 • Receivables increased to $301 million Inventories $3

  11. Slide 11: Q1 2023 Guidance

    Q1 2023 GUIDANCE ($ in m illions, except per share data) Q1 2023 Guidance Revenue $415 +/- $20 GAAP EPS from continuing operations $0.76 +/- $0.25 Non-GAAP(1) EPS $1.10 +/- $0.25 (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the e

  12. Slide 12: 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Backlog 300.1 280.1 281.5 290.7 405.7 534.7 771.4 927.8 1,012.4 1

  13. Slide 13: 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

  14. Slide 14: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Copyright © 2023 Advanced Energy 14

  15. Slide 15: Reconciliation of GAAP to Non-GAAP EPS Guidance

    RECONCILIATION OF GAAP TO NON-GAAP EPS GUIDANCE ($ in m illions, except per share data) Low End Midpoint High End Revenue $395 $415 $435 Reconciliation of Non-GAAP EPS GAAP EPS $ 0.51 $ 0.76 $ 1.01 Stock-based compensation 0.17 0.17 0.17 Amortization of intangible assets 0.19 0.19 0.19 Restructuring

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