One of the World’s Largest Manufacturers of
Discrete Semiconductors and
Passive Components
Notes on Forward-Looking Statements
•
Comments in this presentation other than statements of
historical fact may constitute forward-looking statements.
•
Forward-looking statements are based on Vishay management’s
estimates and projections and are subject to various risks and
uncertainties.
•
These risks and uncertainties are described in the Company’s
annual report on Form 10-K for the year ended December 31,
2003, in the sections titled “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and
the Risk Factors section of the Business Section.
•
Actual results may differ materially from those projected in the
forward-looking statements.
2
Goals
Maximize profits by achieving and maintaining
technological leadership in discrete components
•
Broadest line of discrete components
•
Best service
•
Innovative products
3
Strategy
•
Increase sales
•
Decrease costs
•
Focus on Research and Development
4
Increase Sales
•
Acquisitions
•
•
Market penetration
•
•
Beat the competition
New products to create new markets
•
•
Buy out product lines or competitors
De-centralized R&D
Vertical growth
5
Strategic Acquisitions
BCcomponents
Transducer Co.’s
$2,600
$2,400
$2,200
$2,000
Sales (000s)
$1,800
Siliconix,
Telefunken
$1,600
$1,400
General Semiconductor,
Infineon Infrared
$1,200
$1,000
Vitramon
Roederstein
$800
$600
Sprague
$400
$200
Dale Draloric
$0
85
86
87
88
Sfernice
89
90
91
92
93
94
Year
95
96
97
98
99
‘00
‘01
‘02 ‘03
6
Broadest Line of Discrete
Semiconductors and Passive Components
Semiconductors
Competitors
Vishay
AVX
Agilent
EPCOS
Fairchild Sem i
HBM
International
Rectifier
Infineon
KEM ET
KOA
Maxim
Passive Components
Trans- Selected
istors
ICs
Opto
MOSFETs Analog IRDC IR
Diodes
Small
Switches Comp- Sensors
Rectifiers Signal Power ICs onents Couplers LEDs
Diodes
X
X
O
X
X
X
X
X
X
O
X
X
X
O
Rohm
Sharp
STMicroelectronics
TDK
Texas Instruments
Toshiba
Yageo
X
X
X
X
X
X
Resistors
Film
Foil
WW
Rchips
Sensors
X
X
X
Magnetics
Inductors
Vari- Non
Transable linear formers
X
O
O
X
X
X
X
X
O
X
X
X
X
O
X
X
X
Murata
On Sem i
Philips
Capacitors
Power
Alumin. Tantalum
Film
MLCC
X
X
X
X
X
X
X
X
O
O
X
O
X
X
O
O
O
X
X
X
X
X
X
X
Source: Company estimates
X
X
X
O
X
O
X
X = Major Position
X
O = Minor Position
7
Example of Growth through Acquisition:
BCcomponents, formerly Philips
•
Global manufacturer and supplier of
commodity and specialty passive components
•
Recognized for manufacturing excellence,
quality, logistics performance, and sales and
marketing strengths
•
Year 2003 revenues: $258 Million
8
BCcomponents Synergies
•
SG&A: $25m savings
•
•
•
•
•
•
•
•
Headquarters closed
Sales forces merged
Sales offices closed
Terminated all non-US reps
Reduced commissions in US by transferring sales to VSH US reps
Terminating external support contracts
General & Administrative merged into Vishay organization
Manufacturing: $45m savings
•
•
•
Restructuring in High Cost Labor countries started (Germany, Belgium,
and Netherlands)
Plant consolidations planned
Moving Vishay production into BCcomponents plants in Asia
9
Vishay in
Discrete and Optical Semiconductors
Worldwide Ranking of Companies that Manufacture
Both Discrete and Optical Semiconductors:
1. Toshiba
2. Rohm
3. Vishay
Source: Gartner, Company estimates
10
Passive Components
Manufactured by Vishay
•
•
Resistors and inductors
•
#1 in wirewound and other power resistors
•
#1 in foil resistors
•
#1 in thin film resistors
Capacitors (tantalum, MLCC, other)
•
•
#1 in wet tantalum and conformal coated capacitors
Stress measurement systems
•
#1 in strain gage sensors and load cells
11
Semiconductor Components
Manufactured by Vishay
•
Discrete semiconductors (power MOSFETs, diodes,
transistors)
•
•
•
•
Optoelectronics (IRDC, sensors, modules, visibles)
•
•
•
#1 in low-voltage power MOSFETs
#1 in rectifiers
#1 in glass diodes
#1 in infrared data communications devices
#1 in IR receivers
Selected Power ICs
12
Increasing Global Presence
Revenue by Geographic Location
1997
2003
SEA
Asia 22%
10%
North
America
Americas
28%
Asia
36%
48%
Europe
42%
Americas
26%
Europe
38%
13
Vishay Revenue by
Product Group: 2003
Measurements
Group
6%
Siliconix
18%
Capacitors
23%
Vishay
Semiconductors
31%
Resistors/
Inductors
23%
14
Market Penetration
No single customer has over 5% of sales
15
Vishay’s Participation in
Multiple End Markets: 2003
Computer
20%
Consumer
14%
Medical
2%
Automotive
17%
Military/Aero
3%
Industrial
33%
Telecom
11%
16
Major Markets
17
Component Content in Cell
Phones
LED
Potential Vishay Bill of Materials
Resistors
161
Power MOSFETs
3
MLCCs
226
Power ICs
8
Tantalum Capacitors
13
Diodes, rectifiers
17
18
8
LEDs
21
MLCC
Total Semiconductors
57
ESD/TVS
(HF Inductors, Power Inductors)
Crystals
Total Passive Components
1
419
HF Inductor
Power IC
Polymer
Tantalum
Capacitor
(Polymer Tantalum, Coated Tantalum)
Inductors
Resistor
Total Passive Components and Semiconductors 476
Coated Tantalum
Capacitor
‰ Shown to the right are the exterior and one side of an
internal printed circuit board of the Samsung SCH-E300,
a W-CDMA cellular telephone.
Crystal
‰ Identified and highlighted on the printed circuit board
(and listed in the text table on this page) are types of
components manufactured by Vishay. List contains only
types of components manufactured by Vishay.
ESD
Diode
Power MOSFET
Power Inductor*
*Inside the phone but not located on this board
18
Nu m ber of Co mp on en ts per M o therbo ard (1)
Passive Component
Usage in Computers
1000
Passive Components around Intel Processors
900
900
800
700
600
600
500
440
400
345
252
300
200
124
100
0
486
Pentium
®
Pentium II
Pentium III
Pentium 4
P5 (2)
Intel® Motherboards
(1)
Source: Vishay estimates; will vary depending upon end-product application.
(2) Source: Estimated 800-1,000 passive components for P5 to be released in 2008,
©Paumanok Publications, Inc. 2003
19
Average Passive Component
Content Per Vehicle
Average count is about 3,400 pieces
Circuit
Prote ction
2%
Chip
Resistor
46%
security system
transmission
lighting
suspension
engine
Global Posit. Sys.
diagnostics
steering
In ductors
2%
Tantalu m
Chip
1%
Alum inum
etc.
1%
MLCC
48%
brakes
airbags
entertainment center
comfort accessories
Source: ©Paumanok Publications, Inc. 2003
20
Decrease Costs
•
Reduce labor cost
•
•
•
Reduce material costs
•
•
Leverage purchasing synergies between divisions
Reduce taxes
•
•
Move production to low cost labor countries such as
China, Israel, India and Czech Republic
Goal: only 20-25% of production in high cost labor
countries (as of Q1 2004 30%)
Down to 20% by producing in low tax locations (China,
Israel)
Equipment grants from Israel
•
Deferred income of $25m as of April 3, 2004
21
Growth and Maintaining Leadership
Through R&D
•
Reduce size
•
Increase performance
•
Reduce cost
22
Percent of New Products
New Products Vishay 2003
70
60
50
40
30
20
10
0
Vishay (incl.
Siliconix)
3
10
Years
23
R&D: Power Metal Strip® Resistors
Reduce size
Better than competition:
9 Increase performance
Reduce cost
• Best TCR (temperature
performance) for low R values
• Longer battery life
∆R/R x 10-6
• More stable
10,000
8,000
Resistance Change with
Temperature
(100
ppm/ºC)
Industry Standard
6,000
(50 ppm/ºC)
WSL
4,000
2,000
WSLE
0
25 ºC
Temperature ºC
(5 ppm/ºC)
125 ºC
24
R&D: Composite Power Inductors
9 Reduce size
Better than competition:
9 Increase performance
• Handles high transient current
spikes without saturation
IHLP 5050EZ
• Frequency range up to 5.0 MHz
Reduce cost
Competitor vs 5050EZ 1µH
1.8
1.6
Inductance µH
1.4
1.2
1
0.8
0.6
Competitor part
0.4
IHLP-5050EZ
0.2
0
Flat panel monitor
DC/DC converter
0
10
20
30
40
50
60
DC Current Amps
25
R&D: Surface-Mount RF Capacitor
9 Reduce size
z
z
z
z
Industry’s first silicon based capacitor
0.6 pF-180 pF, 1% tolerance 0402 capacitor
Extremely stable capacitance from 1 MHz
to several GHz
Reduces board size by as much as 45%
9 Increase performance
9 Reduce cost
26
R&D: Chipscale Devices MICROFOOT
Chipscale MICROFOOT power MOSFETs
eliminate the package
9 Reduce size
9 Increase performance
9 Reduce cost
z
z
MICROFOOT reduces footprint by 70% and profile by
40% for the same power performance as industrystandard TSOP-6
Lower inductance, lower resistance
TSOP-6
MICRO FOOT
27
Growth Through Vertical Integration:
Integrated DC/DC Converter
z
All Vishay manufactured parts (ICs,
MOSFETs, resistors, capacitors, inductors)
z
Smaller and thinner than competition
z
Less expensive
z
More power capabilities than competition
9 Reduce size
9 Increase performance
9 Reduce cost
28
Growth Through Vertical Integration:
Measurements Group
World Market: $1.5 billion
(Company estimate)
29
FINANCIALS
30
Q1 2004 Highlights
•
Sales for Q1 2004 increased to $641 million
• +20% year over year
• +13% quarter over quarter sales of $567 million
•
Diluted EPS of $0.20 in Q1 2004 compared to $0.04 in Q1 2003
•
Bookings for Q1 2004 increased to $733 million
• +31% year over year
• +13% quarter over quarter bookings of $648 million
•
Book-to-Bill for Q1 2004 of 1.14 – Actives was 1.21, Passives was 1.08
•
Backlog increased by $88 million during Q1 2004 to $620 million
•
Cash balance at end of quarter of $582 million
31
Q2 2004 Guidance
•
Sales increase of approximately 5% over Q1 2004 sales
•
Net earnings increase of at least 15% over Q1 2004 net
earnings
32
Strong Financial Position
(In Millions)
April 3,
December 31,
1999
2000
2001
2002
2003
2004
Long-Term Debt
$ 656.9 $ 140.5 $ 605.0 $ 706.3 $ 836.6
$ 838.1
Stockholders’ Equity
$1,013.6 $1,833.9 $2,366.5 $2,358.8 $2,514.0
$2,555.7
Total Capitalization
$1,670.5 $1,974.4 $2,971.5 $3,065.1 $3,350.6
$3,393.8
Debt / Equity Ratio
Cash Balance
65%
8%
26%
30%
33%
33%
$ 105.2 $ 337.2 $ 367.1 $ 340.0 $ 555.5
$ 581.9
33
Goals
Maximize profits by achieving and maintaining
technological leadership in discrete components
•
Broadest line of discrete components
•
Best service
•
Innovative products
34
One of the World’s Largest Manufacturers of
Discrete Semiconductors and
Passive Components