INVESTOR PRESENTATION - ir.vishay.com · Film, Tantalum Film, Power SMD Resistors Variable, Sensors Magnetic Components VISHAY z z z z | | z z z | z AVX z z Bourns | z z Broadcom

© 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.

INVESTOR PRESENTATION

FEBRUARY 2019

VISHAY TODAY

GROWTH DRIVERS

TARGETS & PROJECTIONS

Q4 and Y2018 RESULTS


2

NOTES ON FORWARD-LOOKING STATEMENTS

Comments in this presentation other than statements of historical fact may constitute forward-looking statements. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements may vary materially from those anticipated, estimated or projected. Factors that could cause actual results to materially differ are described in our filings with the U.S. Securities and Exchange Commission, including our annual reports on Form 10-K and quarterly reports on Form 10-Q, specifically in the sections titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors .” The Company undertakes no obligation to update any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

Management uses measures which are not recognized in accordance with U.S. generally accepted accounting principles (“GAAP”) to evaluate its business, and may refer to such measures in this presentation. These measures are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures are intended to supplement our GAAP measures of performance and liquidity. These non-GAAP measures may include: adjusted net earnings, adjusted gross margin, adjusted operating margin, adjusted earnings per share, free cash, cash available to enhance stockholder value, EBITDA, Adjusted EBITDA, EBITDA margin, breakeven point, contribution margin, and various measures and metrics “excluding VPG”.

“Adjusted net earnings” is net earnings (loss) determined in accordance with GAAP, adjusted for various items that Management believes are not indicative of the intrinsic operating performance of the Company, such as restructuring and severance costs, asset write-downs, impairment of goodwill, and other significant charges or credits that are important to understanding our intrinsic operations. The measurement is used by Management to evaluate our performance, and also is a key performance metric for executive compensation. Reconciling items to arrive at adjusted net earnings are more fully described in the Company’s annual report on Form 10-K and its quarterly reports on Forms 10-Q.

“Adjusted gross margin” is gross margin determined in accordance with GAAP (net revenue less costs of products sold and certain other period costs), adjusted to exclude items that Management believes are not indicative of the intrinsic operating performance of the Company, such as losses on purchase commitments and unusual inventory write-downs. It may be expressed in dollars or as a percentage of net revenue. The measurement is used by Management to evaluate the performance of our business segments, as well as the business as a whole. Reconciling items to arrive at adjusted gross margin are also considered in the calculation of adjusted operating margin and adjusted net earnings. Such reconciling items are more fully described in the Company’s annual report on Form 10-K and its quarterly reports on Forms 10-Q.

“Adjusted operating margin” is operating income determined in accordance with GAAP, adjusted for items that Management believes are not indicative of the intrinsic operating performance of the Company. It may be expressed in dollars or as a percentage of net revenue. The measurement is used by Management to evaluate our performance. Reconciling items to arrive at adjusted gross margin are also considered in the calculation of adjusted operating margin; and reconciling items to arrive at adjusted operating margin are also considered in the calculation of adjusted net earnings. Such reconciling items are more fully described in the Company’s annual report on Form 10-K and its quarterly reports on Forms 10-Q.

“Adjusted earnings per share” is “adjusted net earnings” divided by the weighted average diluted shares outstanding for a period, adjusted for the effect of reconciling items, if applicable, on the diluted weighted average shares outstanding. For example, some potential common shares which are anti-dilutive to the computation of GAAP earnings per share may be dilutive after considering reconciling items.

“Free cash” is cash generated from operations in excess of our capital expenditure needs and net of proceeds from the sale of assets. Management uses this measure to evaluate our ability to fund acquisitions, repay debt, and otherwise enhance stockholder value through stock buy-backs or dividends.

“Cash available to enhance stockholder value” is “free cash” less cash paid for acquisitions (including acquisition-related restructuring) and less debt principal payments. While internal growth and targeted acquisitions also enhance stockholder value through the generation of “free cash”, Management uses this measure to evaluate our ability to fund further enhancements to stockholder value, such as stock buy-backs or dividends.

“EBITDA” is earnings before interest income and expense, provision for income taxes, depreciation expense, and amortization expense. Management believes that EBITDA provides additional information with respect to a company’s performance and ability to meet its future capital expenditures and working capital requirements, particularly when evaluating acquisition targets.

“Adjusted EBITDA” is EBITDA adjusted for relevant reconciling items used to calculate adjusted net earnings (described above). Adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay’s revolving credit facility.

“EBITDA Margin” is “adjusted EBITDA” divided by net revenues.

“Breakeven point” represents the quantity of output where total revenues and total operating costs are equal (in other words, where the operating income is zero). Management uses this measurement in evaluating our cost structure.

“Contribution margin,” sometimes referred to as “variable margin,” is calculated as net revenue less costs that vary with respect to quantity produced (or another output-related driver). It may be expressed in dollars or as a percentage of net revenue. Management uses this measure to determine the amount of profit to be expected for any increase in revenues in excess of the break-even point.

Measurements “excluding VPG” reflect the historical businesses which are still part of Vishay today. The Company spun-off VPG on July 6, 2010. While VPG does not qualify as a “discontinued operation” under GAAP, Management believes that certain evaluations “excluding VPG” are meaningful, particularly when evaluating growth and other performance metrics. Historical VPG data is reported as a separate operating segment in Vishay’s annual report on Form 10-K and its quarterly reports on Forms 10-Q during the periods it was included in Vishay’s consolidated financial statements: This discrete data is the basis to calculate any measurements “excluding VPG”. These measures do not have uniform definitions and accordingly, these measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Such measures should not be viewed as alternatives to GAAP measures of performance or liquidity. However, Management believes such measures are meaningful to an evaluation of our business, as described above.


3

Intensified organic growth.

Supplemented by targeted acquisitions.

Regular cash dividend program.

Opportunistic stock buy-backs.

Maintaining prudent capital structure.

DRIVE STOCKHOLDER VALUE

VISHAY TODAY


4

Broad and competitive product and technology portfolio:

Solution provider and valuable partner for customers.

Broad market penetration

• Wide range of end markets.

• Balanced geographic manufacturing footprint.

• Right mix of sales channels.

Contribution margin of 45% plus.

Reliable generation of “free cash.”

VISHAY TODAY

VISHAY TODAY


BROAD PRODUCT PORTFOLIO

VISHAY REVENUES 2018

51%

23% DIODES

10% INFRARED

OPTO

18% MOSFETs

SEMICONDUCTORSPASSIVES49% PASSIVES

34% RESISTORS INDUCTORS

15% CAPACITORS

VISHAY TODAY


DIODES MOSFETs MAGNETICS

Diodes,

RectifiersMOSFETs

Infrared

Compo-

nents

Opto-

couplersLEDs

Aluminum,

Ceramic

Power,

Film,

Tantalum

Film,

Power

SMD

Resistors

Variable,

Sensors

Magnetic

Components

VISHAY

AVX

Bourns

Broadcom

Diodes Inc.

Infineon

KEMET

KOA

Murata

Nichicon

Nexperia

ON Semi

Panasonic

Rohm

Sharp

ST Micro

TDK/EPCOS

Toshiba

Yageo

SEMICONDUCTORS PASSIVE COMPONENTSOPTO CAPACITORS RESISTORS

6

BROADEST LINE OF DISCRETE SEMICONDUCTORSAND PASSIVE COMPONENTS

= Major PositionSource: Company estimates = Minor Position

VISHAY TODAY


7% EMS

25% AMERICAS

39% ASIA

28% AUTOMOTIVE

7% COMPUTING

BROAD MARKET PENETRATION

END MARKETS

VISHAY REVENUES 2018

4% MEDICAL

5% MILITARY/AERO

5% POWER SUPPLIES

38% INDUSTRIAL

6% CONSUMER

7% TELECOM

36% EUROPE

GEOGRAPHY

36% OEM

SALES CHANNELS

57% DISTRIBUTION

VISHAY TODAY


24%

38%

15%

28% 21%

8% 10%

5% 12%

7%

9% 6%

6% 5%

3% 4%

2010 2018

8

WELL-POSITIONED TO CAPITALIZE ON GROWTH MARKETS

VISHAY TODAY

2010 - 2018

Revenue CAGR

Auto: 14%

Industrial: 10%

Revenue Split By End Market

Automotive

Industrial

Consumer

Computing

Telecom

Medical

Military/Aero

Power supplies

Automotive

Industrial

Consumer

Computing

Telecom

Medical

Military/Aero

Power supplies


9

BROAD CUSTOMER BASE

OEM

EMS DISTRIBUTION

NO SINGLE OEM CUSTOMER REPRESENTS OVER 7% OF SALES


10

REVENUE AND GAAP OPERATING MARGIN1

1) Excl. VPG spin-off in 2010.

VISHAY TODAY

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

OPERATING MARGIN REVENUE

OM

MILLIONS

REVENUE

MILLIONS

-1,677 -49


11

REVENUE AND ADJUSTED OPERATING MARGIN1


VISHAY TODAY

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

OPERATING MARGIN REVENUE

OM

MILLIONSREVENUE

MILLIONS


12

RECONCILIATION OF GAAP TO ADJUSTED1

VISHAY TODAY


in millions USD 2019201820172016201520142013 2012 2011 2010 2009 2008 2007 2006 20052004 2003

Reconciling items affecting gross

margin:

Loss on purchase commitments, Ta

write-downs6 16 (1) 17 18

Product quality claims 3

Reconciling items affecting operating

margin:

Restructuring and severance costs 11 19 19 21 3 36 57 15 38 27 46 29

Asset write-downs 1 5 4 7 11 27 1

U.S. pension settlement charges 79 16

Executive compensation charges (2) 6

Settlement agreement gain (28)

Executive employment agreement

charge58

Impairment of goodwill and indefinite-

lived intangibles2 63 1,629

Terminated tender offer expenses 4

Contract termination charge 19

Siliconix transaction-related charges 4

Purchased in-process R&D 10 2

Environmental remediation 4

Gain on sale of building (12) (5) (3)


13

CONTRIBUTIVE MARGIN1

VISHAY TODAY


0

5

10

15

20

25

30

35

40

45

50

55

60

0

5

10

15

20

25

30

35

40

45

50

55

60

03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

%%


14

STRONG GENERATION OF FREE CASH

VISHAY TODAY

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18PROCEEDS FROM SALE OF PROPERTY AND EQUIPMENT

CASH FLOWS FROM OPERATIONS LESS CAPITAL EXPENDITURES


15

Increased quarterly dividend by 26% to $0.085 Q2 2018.



Initiated quarterly cash dividend of $0.06 in Q1 2014.

Future dividends are subject to Board approval.

ENHANCING STOCKHOLDER VALUE:ANNUALIZED CASH DIVIDEND $0.34

VISHAY TODAY


16

In 2017 spent $39.9 million to repurchase 2.3 million

shares.

In 2016 spent $23.2 million to repurchase 1.8 million

shares.

From 2010 – 2012 spent $575 million to repurchase 44.3

million shares, financed with 2.25% coupon, 30-year

convertibles.

• In 2018 repurchased $538 face value of these converts:

Only $37 million still outstanding at year end 2018.

• Board authorization for further convert repurchases.

STOCK BUYBACKS

VISHAY TODAY


Vishay is well positioned to participate in the markets

expected to show solid growth over the next years.

Connectivity

Mobility

Sustainability

17

GROWTH DRIVERS

GROWTH DRIVERS


18

CONNECTIVITY INTERNET OF THINGS – BLE BEACONS

GROWTH DRIVERS

Ultra low power

Smallest dimensions

Infinite life

Smart load switches

MOSFETs:miniature packages Low profile, small size, high CV

tantalum and polymer capacitors

ENYCAPTM

hybrid EDLC

Chip antennas IHLP, IHHP for boost circuits

220EDLC ENYCAPTM

radial high pulse


Low profile

High efficiency

Small solution size

High power density

19

CONNECTIVITY – SET-TOP BOXES

PowerPAK®

MOSFETs

TMBS® diodes BUS-port protection arrays IHLP® inductors IR receivers

µicroBuckTM

regulator ICs

GROWTH DRIVERS

HI Q HIFREQ MLCCs for RF circuit tuning

© 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.20

Ultra fast diodesFRED Pt® Gen 4

High efficiency

Excellent stability and overload performance

High operating temperature

MOBILITYCHARGE STATION OFF-BOARD

High voltage MOSFETs

Safety X cap & Y cap

Power Metal Strip®

current sense resistors

Diodes moduleFilm capacitors for snubber

Snap-in electrolyticcapacitors

GROWTH DRIVERS

© 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED.21

MOBILITY ON-BOARD BATTERY CHARGER

High efficiency

Small size and weight

Fast charging time

Customized MOSFETmodules

MKP DC-Link filmcapacitors

600 V / 1200 V Ultrafast rectifiers

Thin film SMD chipsand MELF

Power Metal Strip®


Pulse-proof thick film chip resistors

Leaded ceramic capacitorsclass Y2

Interference film capacitors

class X2 / Y2

GROWTH DRIVERS

Customized power magnetic modules

Automotive low voltageMOSFETs n & p channel

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=Z222t86AsxetTM&tbnid=WjwQaSbf71yC1M:&ved=0CAYQjRw&url=http://www.plugincars.com/faster-level-2-charging-key-mass-ev-adoption-127070.html&ei=FscsU-_VE8jYigfswoC4Dg&psig=AFQjCNFFpr1UFz9e0uduUdOzOnZksJSwMA&ust=1395529839650865

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=Z222t86AsxetTM&tbnid=WjwQaSbf71yC1M:&ved=0CAYQjRw&url=http://www.plugincars.com/faster-level-2-charging-key-mass-ev-adoption-127070.html&ei=FscsU-_VE8jYigfswoC4Dg&psig=AFQjCNFFpr1UFz9e0uduUdOzOnZksJSwMA&ust=1395529839650865


22

SUSTAINABILITY“ON-PANEL” POWER CONVERSION:

MICRO INVERTERS

GROWTH DRIVERS

Long life, high reliability

Compact size

Optimized efficiency

High power density

Low ESR tantalum capacitors

MLCC capacitors

Film capacitors forsafety, snubber, and buffer applications TMBS® Schottky

and Hyperfast diodesMOSFETs: PowerPAK® 1212, SO8, 8x8

E series high voltage superjunction

Power Metal Strip®


IHLP® inductors

Optocouplers andsolid-state relays


23

SUSTAINABILITYPOWER TRANSMISSION AND DISTRIBUTION

GROWTH DRIVERS

High voltage capability

Long life

Custom design

MELF resistorsfor high voltage detection

High power resistors for braking, dumping, and

groundingPhase-leg thyristors,SCR / IGBT modules Power capacitors

Optocouplers andsolid-state relays


TARGETS AND PROJECTIONS


25

Increase EPS

• Organic growth.

• Acquisitions.

Focus on maintaining prudent financial structure.

Concrete Growth Plan built business by business from

the bottom up.

GOALS

GROWTH PLAN


26

DRIVE ORGANIC GROWTH

Strong organic growth strategy

Focused

development

of new products &

technologies

Ensure product

availability for key

product lines during

demand spikes

Asia Growth Plan:

Improve market

penetration mainly in

industrial and auto

segments

GROWTH PLAN


27

Focus areas of new product development:

MOSFETs: continued product rejuvenation in all voltage ranges,

extension of automotive offerings and new packages.

DrMOS with additional features and further integration steps.

New low profile packaged diodes, new load dump TVS products.

Further diversification in custom magnetics, power inductors and

planar transformers.

Extended ranges of shunt resistors, precision and power resistors.

New ranges of optical sensors incl. in-house designed ICs.

Low ESR and high performance polymer tantalum capacitors.

Customized DC-link and power film capacitors.

Extension of Double Layer (EDLC) capacitor range.

1. FOCUSED DEVELOPMENT OF NEW PRODUCTS

GROWTH PLAN


28

Get ahead of demand curve for Vishay’s strategic growth

products to ensure sufficient capacity during demand spikes.

Diodes in smaller and lower profile packages.

Load dump TVS diodes, surface mount rectifiers.

High-current power inductors.

SMD couplers and optoelectronic sensors.

Shunt, and other specialty resistors.

Tantalum capacitors in face down style, polymer technology.

2. ENSURE PRODUCT AVAILABILITY FOR KEY PRODUCT LINES

GROWTH PLAN


29

Leverage in Asia Vishay’s strength in automotive and

industrial, in addition to the traditional Asian focus markets,

computing and consumer:

Transportation—automotive (local customers), trains.

Energy—infrastructure, wind and solar, oil exploration.

Equipment and instrumentation.

By a strong technical sales force in Asia with focus on China.

19% CAGR for Automotive in Asia 2012 – 2018.

3. ASIA GROWTH PLAN:

IMPROVE MARKET PENETRATION IN INDUSTRIAL

AND AUTO

GROWTH PLAN


30

Stable economic environment.

ASP decline per year for Vishay’s products:

Passives 0% - 3%

Semis 3% - 5.5%,

product line specific.

Inflation rates for salaries, wages and overhead:

1.5% - 9.0%, location specific.

Stable FX rates.

ASSUMPTIONS

GROWTH PLAN


31

Contributive margin at historical levels of 45% +

• As consequence of price decline, cost reduction and mix

development by specific product line.

• Proven track record for last 10 + years of 45% + margin.

Fixed cost increases per year:

• Selling, R&D and engineering costs ≤ 3%

• G&A and manufacturing fixed costs ≤ 2%

• Depreciation & Amortization - 1.2%

OPERATIONAL PARAMETERS

GROWTH PLAN


32

Three types of small to mid-size acquisitions targeted:

• Synergetic.

• Specialty.

• Closing technological gap.

Cash payback incl. restructuring of ˂ 8 years.

Accretive to earnings in less than 12 months.

SUPPLEMENT ORGANIC GROWTH WITH ACQUISITIONS

GROWTH PLAN


33

Grow at least with the market with CAGR of revenues of

between 3% and 6%.

Grow net income with CAGR of 10% to 20%.

Maintain prudent capital structure.

Continued strong generation of cash available to

enhance stockholder value.

IN SUMMARY


FINANCIAL RESULTS

Q4 2018

© 2018 VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. 35

HIGHLIGHTS Q4 2018

Q4 FINANCIAL INFORMATION

Revenues Q4: $776 million; year 2018: $3,035 million.

Gross margin Q4: 28.3%; year 2018: 29.3%.

Operating margin Q4: 15.4%; year 2018: 16.0%.

EPS Q4: $0.69; adjusted EPS Q4: $0.58.

EPS year 2018: $2.24; adjusted EPS Year 2018: $2.12.

Free Cash1 Year 2018 of $84 million.

Guidance Q1: Revenues $730 to $770 million and gross margins of

28% - 29%, based on Q4 x-rates.

Distribution:

• Inventory turns worldwide of 2.9.

• Point of Sales worldwide for year 2018 increased by 14% year over year.

1) CASH FLOWS FROM OPERATIONS LESS CAPITAL EXPENDITURES PLUS PROCEEDS FROM SALE OF PROPERTY AND EQUIPMENT


CASH REPATRIATION 2018 & RELATED FOREIGN TAX


During 2018 repatriated a gross amount of $881 million to the US.

Paid $157 million in related foreign taxes significantly impacting cash

flow from operations.

Received $724 million net of tax in the US and

• Paid down “revolver” to zero;

• Paid down intercompany debts;

• Paid $15 million US transition tax;

• Paid $376 million to repurchase $249 million principal amount of

converts due 2040-2042.

Approx. $300 million of additional earnings available offshore for

repatriation with taxes accrued—timing under evaluation.


DEBT RESTRUCTURING IN 2018


In 2018, reduced amount outstanding of the converts due 2040-2042 to

$37 million from $575 million principal amount.

• In June placed $600 million converts due 2025 & used all net proceeds to

repurchase $289 million principal amount of converts due 2040 and 2042.

• In Q4 repurchased further $249 million principal amount of converts due

2040-2042 using cash.

Board authorization for additional convert repurchases.

Effective tax rate for 2018 lowered and future effective tax rate

increases due to these converts avoided.

Average conversion price significantly increased (= lower EPS

sharecount) .

Cash interest only slightly increased.


CONVERTIBLE DEBT INSTRUMENTS 2017 - 2018


Principal amount outstanding of all converts outstanding went from

$575 million in 2017 to $637 million at year end 2018.

Cash interest went from $12.9 million to $14.3 million annually.

Average conversion price increased from $13.70 to $30.65.

Replacement debt instrument, more tax-efficient.

Principal

Amountin million

Annual Cash

Interest¹in million

Conversion

Price

Average

Conversion

Price

Convertible Debentures, due 2040 -2042 $575 $13 $11.02 - $17.75

Convertible Debentures,

due 2040 to 2042$575 $13 $13.70

Convertible Notes, due 2025 $600 $14 $31.49

Convertible Debentures, due 2040 -2042 $37 $1 $10.85 - $17.48

Convertible Debt Instruments,

due 2025 to 2042$637 $14 $30.65

1) Annual cash interest for all converts 2.25%

December 31, 2017

Convertible Debentures

December 31, 2018


CASH FLOW IMPACTED BY CASH REPATRIATION


in millions Q4 2018 Year 2018 Year 2017

Depreciation $38 $150 $149

Amortization $2 $12 $14

U.S. transition tax ($15)

Repatriation taxes ($157)

Cash from operations $150 $259 $369

CapEx $104 $230 $170

Free Cash* $93 $84 $200

* Cash flows from operations less capital expenditures plus proceeds from sale of property and equipment

YEAR 2018 INCLUDES ABOUT $172 MILLION OF CASH TAXES RELATED TO

CASH REPATRIATION AND US TAX REFORM.


SHARECOUNT FOR EPS CALCULATION


The table above summarizes the approximate number of shares for diluted EPS calculation.

See Item 7.01 of current report on Form 8-K filed with the Securities and Exchange Commission on February 5, 2019 for additional important information about the parameters which impact the computation of shares expected to be used in the diluted EPS computation.

Average Stock PriceProjected Diluted

Shares

<$21.00 145

$21.00 - $31.00 146

$32.00 147

$33.00 147

$34.00 148

$35.00 148

in million

Total shares outstanding 145

Related to RSUs etc. < 1


41

SALES SPLIT Q4 2018

6 % CONSUMER

END MARKETS

8 % COMPUTING

7 % TELECOM

4 % MEDICAL

6 % MILITARY/AERO

5 % POWER SUPPLIES

36 % INDUSTRIAL28 % AUTOMOTIVE

37 % ASIA

35 % EUROPE

28 % AMERICAS

GEOGRAPHY

7 % EMS

36 % OEM

SALES CHANNELS

57 % DISTRIBUTION



APPENDIX



QUARTERLY FINANCIAL RESULTS


in millions, except per share amounts Q4 2018 Q3 2018 Q4 2017

Net revenues $776 $781 $673

Gross profit $220 $236 $177

28.3% 30.3% 26.3%

Operating income (loss) $120 $138 $76

15.4% 17.7% 11.3%

Net earnings (loss) attributable to Vishay stockholders $102 $78 ($178)

Weighted average shares outstanding for EPS 148 153 144

EPS $0.69 $0.51 ($1.23)

EBITDA $147 $175 $114

18.9% 22.4% 16.9%


ADJUSTED QUARTERLY FINANCIAL RESULTS


in millions, except per share amounts Q4 2018 Q3 2018 Q4 2017

Net revenues $776 $781 $673

Gross profit $220 $236 $177

28.3% 30.3% 26.3%

Adjusted operating income $120 $138 $82

15.4% 17.7% 12.2%

Adjusted net earnings attributable to Vishay stockholders $86 $92 $60

Weighted average shares outstanding for adjusted EPS 148 153 161

Adjusted EPS $0.58 $0.60 $0.37

Adjusted EBITDA $156 $175 $119

20.1% 22.4% 17.7%


45

in millions Q4 2018 Q3 2018 Q4 2017*

GAAP NET EARNINGS (loss)$102 $78 ($178)

attributable to Vishay stockholders

Reconciling items affecting operating income

Restructuring and severance costs - - $6

Reconciling items affecting other income (expense)

Loss on early extinguishment of debt

Loss (gain) on disposal of equity affiliate

$9

-

-

-

-

($1)

Reconciling items affecting tax expense (benefit)

Enactment of TCJA

Effects of cash repatriation program

Change in deferred taxes due to early extinguishment of debt

Effects of changes in uncertain tax positions

Tax effects of pre-tax items above

-

($3)

($21)

-

($2)

$14

$1

-

-

-

$235

($3)

-

$2

($2)

ADJUSTED NET EARNINGS$86 $92 $60

attributable to Vishay stockholders

RECONCILIATION OF GAAP TO ADJUSTED


*Recast for the retrospective adoption of ASUs 2014-09 and 2017-07


LIQUIDITY, CASH AND LONG TERM DEBT


in millions Q4 2018 Q3 2018 Q4 2017

Total liquidity $1,400 $1,699 $1,781

Cash and cash equivalents, and short term

investments$764 $1,063 $1,295

Unused capacity on credit facility $636 $636 $486

Long term debt incl. current portion $495 $589 $370


LONG TERM DEBT


as of December 31, 2018

in millionsOutstanding

DebtComments Interest

Long term incl. current portion $495

Revolving Debt

up to $640 million- Available through December 10, 2020 LIBOR plus 1.50%

Convertible Notes,

due 2025$495

$600 million principal amount;

debt discount of $105 million amortized to income

statement as additional non-cash interest

Cash coupon 2.25% of principal or $13.5

million annually;

GAAP interest expense (incl. amortization of

discount) based on 5.5% of net carrying amount

Convertible Debentures,

due 2040-2042$14

$37 million principal amount;

debt discount of $22 million amortized to income

statement as additional non-cash interest

Cash coupon 2.25% of principal or $0.8 million

annually;

GAAP interest expense (incl. amortization of

discount) based on 8.00%, 8.375% resp. 7.50%

of net carrying amount

Deferred Financing Costs ($15)


BOOK-TO-BILL DETAIL


Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017

Book-to-bill VISHAY 0.94 0.95 1.17 1.22 1.28

Book-to-bill distribution 0.90 0.80 1.23 1.28 1.40

Book-to-bill OEMs 0.98 1.15 1.08 1.16 1.13

Book-to-bill semiconductors 0.91 0.87 1.06 1.26 1.41

Book-to-bill passive components 0.96 1.02 1.29 1.18 1.15

Book-to-bill Americas 0.76 1.06 1.29 1.25 1.14

Book-to-bill Asia 0.90 0.69 1.09 1.22 1.40

Book-to-bill Europe 1.11 1.16 1.18 1.23 1.23


OPERATIONAL METRICS


Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017

Change in ASP vs. prior year total Vishay 1.4 0.5 0.7 (0.9) (2.3)

Change in ASP vs. prior year semis 1.4 0.7 1.0 (0.9) (2.7)

Change in ASP vs. prior year passives 1.4 0.2 0.3 (0.9) (1.9)

FX effect on revenues vs. previous quarter ($5) ($7) ($7) $10 $1

Backlog at quarter end $1,497 $1,560 $1,595 $1,499 $1,320

Backlog in months 5.8 6.0 6.3 6.3 5.9


VISHAY REVENUES AND GROSS MARGIN % QUARTERLY


excl. Spin-Off Vishay Precision Group in 2010

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

SALES GM %

$ in millions %$ in millions


VISHAY REVENUES QUARTERLYBY PRODUCT SEGMENT


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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

MOSFETs Diodes Opto Resistors/Inductors Capacitors

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VISHAY REVENUES YEARLYBY PRODUCT SEGMENT


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$ in millions$ in millions $ in millions$ in millions


VISHAY GROSS MARGINS QUARTERLYBY PRODUCT SEGMENT


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VISHAY GROSS MARGINS YEARLYBY PRODUCT SEGMENT


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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


% %

Documents

INVESTOR PRESENTATION - ir.vishay.com · Film, Tantalum Film, Power SMD Resistors Variable, Sensors Magnetic Components VISHAY z z z z | | z z z | z AVX z z Bourns | z z Broadcom