Vishay Precision Group, Inc. · NYSE:VPG
Vishay Precision — Investor Presentation (March 2019)
20 slides from Vishay Precision's investor presentation, Mar 28, 2019
Slide 1: Vishay Precision Group
Vishay Precision Group March 28, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement From time to time, information provided by us, including but not limited to statements in this report, or other statements made by or on our behalf, may contain "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statem
Slide 3: We Are a Global Provider of Mission Critical Measurement Solutions
We Are a Global Provider of Mission Critical Measurement Solutions Europe 32% of Sales Americas 42% of Sales Asia 26% of Sales $300 Million of Revenue* 2,600 Employees 8 Main Manufacturing Sites $50 Million Adj. EBITDA* NYSE: VPG $34.97 12 Countries *TTM Price as of 3/26/19 close 3
Slide 4: Our Sensors Deliver When Precision and Reliability Matters
Our Sensors Deliver When Precision and Reliability Matters Our products deliver performance through precision and reliability… …often in harsh and demanding environments. 4
Slide 5: Value Proposition 2019 – 2021
Value Proposition 2019 – 2021 Mid to high-single digit sales growth Target gross margin > 45% Adjusted operating margin > 15% Strong cash generation Focused M&A activity 5 5
Slide 6: We Are Highly Diversified with Multiple Paths to Organic Growth
We Are Highly Diversified with Multiple Paths to Organic Growth Original Equipment Europe Asia Manufacturers Distributors 32% 26% 44% 30% 2018 2018 Revenue by Revenue Customer by Type On Board Region Weighing 13% Precision Electronic Weighing Americas Manufacturing 19% 42% Services 6% End-Users 20%
Slide 7: Product Innovation Drives Organic Growth
Product Innovation Drives Organic Growth • VPG’s VanWeigh and TruckWeigh product families, patented overload monitoring systems • Integrated monitoring systems for unlimited loads • Vital notification to drivers and other vehicle systems • Over 10,000 systems installed • Africa, Asia, Australia/New
Slide 8: Product Innovation Drives Organic Growth
Product Innovation Drives Organic Growth • Strength of R&D platform driving upgrades to replace legacy designs, enter new end markets and increase reliability • Improved design and process control for automated manufacturing process • Enhanced specifications, smaller size, complex geometries and hig
Slide 9: Product Innovation Drives Organic Growth
Product Innovation Drives Organic Growth Provider of transducers for Applications in Agriculture OEM’s servicing precision ag, Seeding downforce sensors medical and construction end Harvesting yield monitors markets Baler compacting sensors Tractor draft load pins Onboard bin weighing load cells App
Slide 10: Strong Free Cash Flow and Healthy Balance Sheet Enable Accretive M&A Strategy
Strong Free Cash Flow and Healthy Balance Sheet Enable Accretive M&A Strategy -Focused M&A activity -Target: ~$5-$100M; > 40% gross margin -Acquisition of Stress-Tek for ~$20M -Mid-teens IRR hurdle rate -Enhances existing focus on onboard weighing -Accretive within 12 months products -End-markets: t
Slide 11: Margin Expansion Drivers
Margin Expansion Drivers Adjusted Operating Margin Over Time 14.0% 13.5% 12.0% 10.0% 9.3% 8.0% 6.7% 6.0% 5.7% 4.0% 2.0% 0.0% 2015 2016 2017 2018 Favorable Mix on Operational Excellence Fully Integrated Innovative Products Acquisitions • Improved efficiencies • Manufacturing consolidation • Yield imp
Slide 12: Revenue & Adjusted Gross Profit Margin by Reporting Segment
Revenue & Adjusted Gross Profit Margin by Reporting Segment Foil Technology Products Force Sensors Weighing & Control Systems $141 $116 $104 $101 43.7% $86 $73 $73 $65 $67 $64 41.2% $61 $60 46.4% 39.9% 39.1% 27.8% 27.3% 45.1% 20.5% 26.0% 44.3% 44.5% 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016
Slide 13: Strong Balance Sheet and Improving Working Capital
Strong Balance Sheet and Improving Working Capital Cash vs Debt Working Capital $160 $139 $90 $121 $119 $74 $63 $58 55% 52% 53% 53% $36 $33 $32 $27 2015 2016 2017 2018 2015 2016 2017 2018 Cash Debt Working Capital % of TTM Sales 13
Slide 14: Overview of Capital Expenditures
Overview of Capital Expenditures Other Capital Expenditures Equipment 9% 80% $14 2018 Building Capital 11% Expenditures by Type $10 $10 4.6% 4.7% 4.3% $7 4.0% Foil Technology Weighing & Products Controls 78% Systems 9% 2018 Force Capital Sensors Expenditures 13% 2015 2016 2017 2018 by Segment Capita
Slide 15: Highlights
Highlights Fourth Quarter 2018 Highlights: • Growth in revenues to $77.0 million, up 10.9% year-over-year • Earnings were $0.25 per diluted share, compared to $0.33 reported last year • Adjusted diluted EPS* increased to $0.54 compared to prior year $0.39 • Operating margin for the quarter is 9.2%,
Slide 16: Thank you!
PERFORMANCE THROUGH PRECISION Thank you!
Slide 17: Appendix
PERFORMANCE THROUGH PRECISION Appendix
Slide 18: Foil Segment Overview
Foil Segment Overview Foil Technology Products Foil Resistors Foil Strain Gages and DAQ • Stable and precise resistors for critical electronic • Advanced technology sensors circuitry applications • Precision measurement of structural stress Description • Data acquisition systems Brands Representativ
Slide 19: Force Sensors Overview
Force Sensors Overview Force Sensors Strain gage based product lines including load cells, integrated weighing system subassemblies, Description weighing indicators and controllers, bonding and other custom solutions Brands Representative Customers • Medical Devices End Markets • Agricultural Equipm
Slide 20: Weighing & Control Systems Overview
Weighing & Control Systems Overview Weighing & Control Systems Process Weighing & Force Measurement Onboard Weighing Steel Mill Systems High-end solutions for process Load cell-based and State-of-the-art electro-mechanical weighing and batching with high accelerometer-based integrated systems and lo
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