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 increasing market
share and providing technological
leadership in discrete components
•
Broadest line of discrete components:
one-stop-shop
•
Best service
•
Innovative products
3
Strategy
•
Increase sales
•
Decrease costs
•
Focus on Research and Development
4
Increase Sales
•
Acquisitions
•
Market penetration
•
New products to create new markets
•
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
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
7
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
8
Broadest Line of Discrete
Semiconductors and Passive Components
Semiconductors
Competitors
Diodes
Rectifiers
Vishay
AVX
Agilent
EPCOS
Fairchild Semi
HBM
International
Rectifier
Infineon
KEMET
KOA
Maxim
Transistors
Diodes
Selected
ICs
Passive Components
Opto
Capacitors
MOSFETs Analog IRDC IR
Small
Switches Comp- Sensors
Signal Power ICs onents Couplers LEDs
X
X
O
X
X
X
X
X
X
X
X
O
X
X
X
X
X
X
Magnetics
Film
Foil
WW
Rchips
Sensors
Variable
Non
linear
Inductors
Transformers
X
X
X
X
O
O
X
X
X
O
X
X
X
O
X
X
X
X
O
X
X
X
Murata
On Semi
Philips
Rohm
Sharp
STMicroelectronics
TDK
Texas Instruments
Toshiba
Yageo
Power
Alumin. Tantalum
Film
MLCC
Resistors
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
9
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
•
•
#1 in wet tantalum and conformal coated capacitors
Stress measurement systems
•
#1 in strain gage sensors and load cells
10
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
11
Semiconductor Components
Manufactured by Vishay
•
•
Discrete semiconductors (power MOSFETs, diodes, transistors)
•
#1 in low-voltage power MOSFETs
•
#1 in rectifiers
•
#1 in glass diodes
Optoelectronics (IRDC, sensors, modules, visibles)
•
#1 in IR receivers
12
Vishay Revenue by
Product Group: 2004
Measurements
Group
5%
Siliconix
19%
Capacitors
22%
Resistors/
Inductors
23%
Vishay
Semiconductors
31%
13
Leverage Broad Product Line
to Increase Market Share
•
How to increase number of Requests for
Quotation (RFQs)?
•
Get onto existing Bills of Materials (BOMs)
•
Present rate of conversion into Vishay BOMs is
about 1,000 line items per day.
14
Increasing Global Presence
Revenue by Geographic Location
1997
Asia
10%
2004
SEA
22%
North
America
Americas
28%
Asia
36%
Americas
25%
48%
Europe
42%
Europe
39%
15
Vishay’s Participation in
Multiple End Markets: 2004
Computer
18%
Consumer
13%
Medical
2%
Automotive
16%
Military/Aero
5%
Telecom
11%
Industrial
35%
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
18
ESD/TVS
8
(HF Inductors, Power Inductors)
Crystals
Total Passive Components
1
419
HF Inductor
17
(Polymer Tantalum, Coated Tantalum)
Inductors
Resistor
LEDs
21
Total Semiconductors
57
Total Passive Components and Semiconductors 476
Power IC
Polymer
Tantalum
Capacitor
MLCC
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
N u m b e r o f C o m p o n e n ts p e r M o th e rb o a rd (1 )
Passive Component
Usage in Computers
1000
Passive Components around Intel Processors
900
900
800
700
600
600
500
440
400
345
300
200
252
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
Circuit
Protection
2%
Inductors
2%
Tantalum
Chip
1%
Aluminum
etc.
1%
Chip
Resistor
46%
entertainment center
airbags
engine
lighting
suspension
comfort accessories
Global Posit. Sys.
steering
MLCC
48%
Source: ©Paumanok Publications, Inc. 2003
security system
diagnostics
brakes
transmission
20
Market Penetration
No single customer has over 6% of sales
21
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 Q3 2004 28.7%)
Down to 20% by producing in low tax locations (China,
Israel)
Equipment grants from Israel
•
Deferred income of $21m as of October 2, 2004
22
Growth and Maintaining Leadership
Through R&D
•
Reduce size
•
Increase performance
•
Reduce cost
23
Percent of New Products
New Products Vishay 2003
70
60
50
40
30
20
10
0
Vishay (incl.
Siliconix)
3
10
Years
24
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
25
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
26
Growth Through Vertical Integration:
Measurements Group
World Market: $1.5 billion
(Company estimate)
27
Innovation Through
High Tech Start Ups
•
Set up program of investments in start up
companies
•
R&D in addition to Vishay’s internal R&D
28
FINANCIALS
29
Q3 2004 Highlights
•
Sales for Q3 2004 were $584 million
• +10% year over year
• -10% quarter over quarter sales of $647 million
•
Diluted EPS of $0.13 in Q3 2004 compared to $0.04 in Q2 2003
•
Bookings for Q3 2004 were $491 million
•
Book-to-Bill for Q3 2004 of 0.84 – Actives was 0.79, Passives was
0.89
•
Backlog at end of Q3 2004 $474 million
•
Cash balance at end of quarter of $640 million
30
Strong Financial Position
(In Millions)
December 31,
1999
2000
2001
October 2,
2002
2003
2004
Long-Term Debt
$ 656.9 $ 140.5 $ 605.0 $ 706.3 $ 836.6
$ 740.2
Stockholders’ Equity
$1,013.6 $1,833.9 $2,366.5 $2,358.8 $2,514.0
$2,731.0
Total Capitalization
$1,670.5 $1,974.4 $2,971.5 $3,065.1 $3,350.6
$3,471.2
Debt / Equity Ratio
Cash Balance
65%
8%
26%
30%
33%
27%
$ 105.2 $ 337.2 $ 367.1 $ 340.0 $ 555.5
$ 640.0
31
One of the World’s Largest Manufacturers of
Discrete Semiconductors and
Passive Components