Earnings call transcript Q4 2022

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Operator

Greetings. And welcome to the Vishay Intertechnology’s Fourth Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

conference recorded. this reminder, a is being As I to your like to conference over turn the host, would now Mr. Peter Henrici, Investor Relations for Vishay Intertechnology. you. Thank

begin. may You

Peter Henrici

Thank Lori call. And quarter morning. President and by you, Vishay Officer; our Chief Melissa. fourth and Financial Executive Intertechnology’s by Joel welcome Smejkal, XXXX our am I to conference Chief joined Lipcaman, today earnings Good Officer.

website release Relations we quarter. is live A website. our accessed our earnings fourth section call results Investor copy through the our is ir.vishay.com. for reported in being This over morning and available This the our at of can of broadcast web be

In addition, available website. be today’s will call being and replay our recorded via on is

ir.vishay.com. be to which we slide call, will the During referring posted the at presentation, we also

today’s These statements. the statements could subject uncertainties You we statements cause to that call, actual forward-looking certain and from be will are performance. discuss forward-looking making aware future and results that that in conference to risks events be should differ

that with For filings see Form XX-Q a Form discussion of Exchange XX-K and and could cause press Commission. release today’s to Securities Vishay’s and please the differ, results factors

GAAP are on this various release including press measures. and and non-GAAP information on call We conference in our

release, as GAAP and to non-GAAP GAAP reconciliation We a useful our comparing we find have when ir.vishay.com, included full believe results. in posted which in as our on non-GAAP presentation press well the you will

the operating investors our We use of in about GAAP non-GAAP measures they performance with measures. information because we and useful considered conjunction should believe businesses be by provide

to Joel turn Executive call Officer, over I Chief and the Now President Smejkal.

Joel Smejkal

quarter call our on will inaugural Chief first our XXXX. is the my about my and I am and company with call results ambitions everyone. for turn as remarks my On today. of CFO, Smejkal open I After and in brief pleasure you call, fourth Executive for some Peter. over am the today’s that, share Officer. go the it assessment our speaking the new financial Lipcaman, company quarter Good will who I going guidance. with and you you, morning, for over will background Thank our I then Vishay’s plans to the to be my to today Then with Lori Joel future the

begin slide with Let’s number three.

mindset of the Vishay, development, customers my channels, market broaden marketing, Vishay’s to organization its business opportunities, course at the our be colleagues in segments business a and with in and products sales, throughout develop new enable engineering, identify Over have across my positions to to and worked successful. I next-generation operation business with participation always to

and dynamics and From outside development roles, operational the worked seen in. customer. the have inside my of engineering, the marketing I the Vishay roles, of the understanding an from internal sales my and organization In from I eyes I Vishay seen company. of have the business have gained Vishay

in the in Behind attention in towards at the Vishay to innovation, growth, serving a investment to product forward I us our customers. and increase have scenes, been to an to shift push working capacity, silicon our guide new broaden influence carbide to

with background potential have do unique and we what view To my underperformed where missed to a have lead to I position in unleash CEO. we as Vishay. the opportunities, such, As see Vishay to need we the have new where clear of

with from passive semiconductors is a Vishay The terrific, and Vishay financially discrete has working hard do discipline operational and I broad customers a smart more see? of else a workforce. product and clearly components. What portfolio expect strong Vishay. company, strong

us also gives stability, that to sheet at rates. balance but pristine the a greater grow capability have We

automotive, segments, lines for We supplier with are meet And positions all their in that number our avionics to we industrial, have locations and a a a manufacturing need to global customer’s medical. position consumption. region military, footprint multiple for manufacturing in market product supply with of strong us technology of

of increasing electronic renewable our and factory sensing to In electronic and where future Supporting success. energy propelling and EV features In new devices. are developing in data technology, and the systems. and innovating energy the collection into demand. and are automotive, new critical where systems. on megatrends In storage equipment, industrial, systems governments and dollars automation, commercial missile content advanced greater transmission more are diagnostic communications defense military, are radar component wireless customers electrification, funding where rapidly growing. satellite guidance communications are medical and companies where flight programs medical where instruments flowing implantable To aerospace, are And are

times. often lead One might capacity giant, say sleeping a with constrained Vishay long that is

underinvested have and in technical resources. We CapEx

returns change drive company to reshape value. have We and to the optimize and shareholder growth and

my are we to leadership Vishay. going Under reorient

company customer company to one focused a present focus on company We it’s that a operations and focused market capital while orders the support, organization a taking. anticipates forward-looking is business a is that going to to and need customer P&L proficient our to company, to driven to from when cash return to that one reorient dynamic from flow company, and an from from a risk a policy, upholding managed ready customer rewards from are and fulfills

so month the taking hit the my on with that running we January critical that new time a to spent CEO, It’s Vishay’s of immediately. control leadership start leading up as In ground could we deal the great I Xst. team, collectively

deeper must that key Vishay Internally, nearly era. operational with with to OEMs, views to leaders their have I met on going hear their our into one-on-one this customers, share be both and will have dig new senior XX we distributors close. the met and and apps opportunities needs in to I where grow Externally,

communications changes increasing order have meet organization. multiple stressed think have shift customer mindset new in using start I to business processes our to everything to we creating that do. products, a and first we our injecting employee growth our our in ideas minded demand and business to must for I propel been the

results. has Lori of her the financial provide after I we have review will more completed future the about what proceed. please detail for planned Lori,

Lori Lipcaman

end review everyone. COVID-related reflecting on than my results the guidance, of start the absences slightly our sales impact morning, and fourth correction. of in you, China, of will quarter part our part, an Thank plants million, quarter fourth start $XXX expected four. the our Good in low inventory were slide for the Revenues below Joel. of reflecting to lower distribution, in I at

volumes. Distribution pricing quarter versus stable the to reflecting inventory at end X.X% stable decreased weeks, third Revenues -- decline XX XX for X.X% weeks quarter, compared was quarter. relatively third in and the

shutdown As higher on second expected, up pricing, on offset quarter. year Revenues volumes spike last during Shanghai we third the after when fourth flat the catching quarter in by from set shipments quarter down came in the the X.X% than volumes. were were loss

for few EPS third further per two Adjusted $X.XX a quarter. these to $X.XX will items reflect earnings for these share, $X.XX in per Adjusted EPS share. was elaborate on per in and share, differences tax I was respectively, share moments. per quarters $X.XX expense. the compared

Book-to-bill quarter for Backlog X.XX. consolidated X.X Vishay end was for months semis. X.X was at and for months passive

versus CapEx outside million. increased to of million our line or expansion with in increase million of to China. XX% for year $XXX.X capacity XXXX the related the of $XXX Nearly $XXX.X expectations all spending

target well at we February. million We announced returned new of of anticipated return $XXX.X flow our stockholder we time million above to $XXX a and of well XX% cash the the above shareholders, policy free that total the last

points. to revenues a markets. I decreased XX.X% to data third sales the call your quarter. end breakdown channel a of Slide by to attention few five want distribution Sales from presents and

mentioned see started of have inventory to an As earlier, we indications correction.

third For revenues the third our catch-up quarter largest from decreased volume quarter, the MOSFET primarily X.X% reflecting our markets versus out of facility. by two revenues, market the automotive in Shanghai

as inventory focused OEMs automotive on addition, less by pulled consuming year-end. inventory they In

fact, along in Revenues industrial revenues. the with revenues a decrease the of In distribution up customers were quarter, quarter from XX.X% XXXX, decreased versus third in fourth automotive X.X%.

the slide for by On see fourth business region. segment the revenue by six, quarter can you and breakdown

declined declined in Although by POS revenue region in modestly. XX.X%, Asia the

than and $XXX.X Please of margin volumes basis slide cost for a profit plus lower by XX.X% expected for input minus reflecting XX%, margin or turn was profit quarter seven. to our lower was to Compared compared to impacted guidance some points, Gross the XX.X%, volumes. third XX of inflation. gross million

addition Operating expenses operating above $XXX.X reflecting $XXX.X expenses million, MaxPower. million, the of primarily were quarter of

profit As quarter. million operating in versus third to higher million $XXX.X a the gross by decreased operating income result of $XX.X the and expenses, reduction

Operating for the XX.X% increased EBITDA or margin was over XX.X%, income million $XX.X and the EBITDA $XXX.X an quarter XXXX. XX.X% XXXX. was compared margin of to XQ Operating fourth quarter XX.X% of third for million XX.X%. for

reinvested. During the all determination XQ, no Germany earnings substantially indefinitely longer in we made are unremitted that

of result, return As to sustainably access tax assertion us plans to additional in enable reinvestment and cash the indefinite we company’s expense fund and $XX million. offshore growth policy. balances stockholder will a our greater provide recorded our Change

during to million the access be in these only amounts cash assertion XQ, a repatriated while -- needed. benefit the as upon tax of in change change allowance. we balances, $XX the of provide assertion Also valuation recognized a these will foreign release With

U.S. for year which mathematically and tax items yields was Our approximately unusual of GAAP XX%, includes rate for a these XX% XQ. rate the

quarter the year. in these COVID XX% was for which the cost of Our and excludes the effect tax approximately unusual rate, and for for XXXX, year effective items, tax normalized full XX% excludes XQ China the in

future change in our The also reinvestment earnings. assertion assertion on indefinite impacts

Our various of assumed of tax rate among on an mix tax consolidated effective income jurisdiction. is based level

of We full tax year the normalized XXXX effective expect rate for approximately XX%.

for metrics. present third were DSOs shortly days, we quarter as the payments to several we cycle On days quarter, after from customers slide of eight, XX cash receive XX end. conversion Asia in our compared

flat due to cash quarter. the rate XX million cycle compared days fourth XX quarter days, Inventory to for at was compared were $XXX.X days end, Inventory the quarter, days to primarily days. for the for impacts. quarter quarter, to bringing third XX third the exchange outstanding third days, XXX conversion were DPOs XX versus essentially

and in you XXXX. strong the with X.X% generation. increase was year million the for $XXX.X Turning capacity X.X% that was $XXX.X bringing operations nine, primarily Mexico for compared compared in total quarter can XXXX XX% to CapEx expansion quarter CapEx XXXX. the record total in Vishay million to invested track to continues million, an Cash revenues, for its cash to slide expansion, was $XXX.X CapEx of Full of of $XXX.X from million. see flow for

of million. Free or return stockholder stock February of in of policy, year was in we cash to million committed the return the at XX% free We form million set We the flow at least cash for the quarter an form return expectation flow dividends $XX.X least Under in and was of $XXX.X our for directly repurchases. to annual policy XXXX. have indirectly XXXX. announced stockholders the $XXX in to full

stockholder total our total average share to $XX.X million shares X.X repurchases. XX.X% for an brings the fourth during million We or return returns stockholder of of at for flow. amounted of million, million a to quarterly $XX.X our year. annual dividend free $XX.XX This the $XX.X the quarter, and consisting million For XXXX for $XXX.X of cash purchased price

Total availability liquidity including and $X.X million of million was credit revolving structural at cash our on quarter and facility. billion, end investments $XXX.X $XXX.X

on mentioned -- calls, use to revolver earnings financing past As financial from the needs. short-term we make time-to-time

our Turning to for slide XX guidance.

expenses and between basis million between rates. $XXX expected plus of Operating the million current $XXX the revenues and in between million range margin be and million $XXX Gross $XXX exchange ongoing of $XXX XXXX, stable at to million million, $XXX the expected or for For correction are the first points. XX expected full for year be pricing. be and to quarter minus profit quarter reflecting inventory is to and XX.X%, are

stockholder approximately mentioned distribute and repurchases. free least of form For our plan to earlier, the we XX%. our effective XXXX, rate of cash a Consistent policy, stock to with in shareholders at as normalized tax XX% dividends flow return expect of we

return million. least expect For $XXX to at XXXX, we

I will turn back to Joel. now the call

Joel Smejkal

Lori. you, Thank

slide turn to please Let’s XX.

we era will Vishay. we quarter a during distributor a through While new with first on and expect what likely the work correction embarked second inventory we the into our narrow be customers quarter, at

capabilities. earlier you ideas are margin and been $X.X in has To my has around to expansion, three our drive we to enhance CapEx with become. what to committed growth about and the Vishay over what shared I next investing operational billion investing and years, it potential the

stay more liquidity greater without for historical Vishay years strong around policy of heavily with its position can the cash flow over to we that free and average. means our stockholder next Our to invest couple expected return sacrificing growth

growth know to is future. is company Vishay anticipates for that first company margins. to We our revenue customer a and need at XXXX supports increasing we demand need, year the customer change the stage become expanding and and delivering that drive

initiatives XXXX. implementing are We already a number in of

next in steps increased XXXX, better in XXXX, of to the available. shape late to for and key be will electrification In advance we capture of markets. these many initiatives begin XXXX manufacturing have will capacity demand we and the Beginning into growing end our

initiatives. I a have slide XX. at our near-term XX Slide laid out take look Let’s

semiconductor component many technologies. across First, and our products great we have passive

Most have market lines channels. telling We and key products identified high more. growth of each segments, today for these product want lines across customers business applications are are segment. us our product demand business XX These in multiple serve and they

go-to-market performance Vishay trends developing strategies of on of better non-commodity to and each to concentrating support toward electrification our products the technical the improving product are communication. We position lines, one mega these for resources data custom

Second, somewhat it we be past is we lead growth. slowed our and expanding up able capacity imperative XXXX to internally are make reduce externally. Vishay In that capacity times and and underinvestment investment drive for XXXX, and to

growth product more, spend we are to spend on going identified those judiciously to but planning XX lines. only not are We

China. million, mostly Mexico, a capacity in in and include Germany. Mexico, new our also the manufacturing resistor diode expansion of power expansion to new we inductor in $XXX fab outside XXXX, on In increase projects site approximately to XX-inch in MOSFET These Itzehoe, CapEx Taiwan expect

Today, extend much year. over of committed. one our times and MOSFETs capacity resistors that have is lead

capacity but Our with to for also have emerging continue established goal is new to to and to customers. sell grow customers,

of room and achieve production to opportunities throughout growth, expect commodity create identifying are have objective for qualified we year. To the products to that resources and subcontract

alleviate identifying to end We incremental way foundries additional and more the to lines. serve customers capacity to constrained semiconductor also markets. product we are have will most This allocate

our strategic capabilities, through one Today, about are of we of maximizing capacity the focus OEM, By all a our high-margin ability Vishay we to going shipping Third, thinking enhance and each EMS, are the a management. on growing accounts. support to and on our business priority channel customers. channels places profitability while of distribution

filling market our our increasing resources intensifying Fourth, internally segment in coverage customers R&D. and and in technical that gaps face activities also

a the see more silicon next an illustration to more is years and over investment. MaxPower and last The broadly our increased of of and customers portfolio. technology in the add we couple preferred increase in these technology We talents, will this become gaps operating of engineering expenses October as fill our sell an supplier acquisition carbide

are moving provide are the to selling. for passives Vishay circuit engineers suppliers Vishay about array and solutions look technically applications. the can technologies. who to greater solution XX% Fifth, components of semiconductor towards can Customer we a than their populate customer full to be We portfolio. advance performance need from and many sure board in we of bring our the that can engineers speaking components applications on improvement

in components introducing engineers to We November of six recently Vishay’s Vishay’s to high showed Munich, a we observe automotive converters, management started applications. in online Solutions and systems chargers, design or DC-to-DC of performance be battery onboard Germany, intelligent demand the Electronic reference and converters mix were in the at these solutions. last test These promoted

and company in customer organizational has silos requests. implementing are that a operated to responsive we become maneuvers more separate Vishay at sales Sixth, and favorably reacts Vishay. between and marketing change to structural

to programs. fostering externally, are collaboration particularly connected internally functions customer and the in We

the sales of flattening we some of their position business Executive decided rather leadership President part filling redefining leaders effort, this and Global area account the than responsibility of our structure empowering organizational Sales. As leader We growth of drive strategic the to and favor in roles. Vice in regional are

the leaders, strategic regional combined commercial, to These to directly region will regional have our heads functions resources customer’s meet needs. by me. technical under together and the sales We report bringing sales marketing and sales

Officer, direction develop grow customer supplier our technology. of product taking a mandate CTOs connected their innovation, closely and is understand reenergize our preferred broader Our Roy the status Chief Technical on and to Shoshani, our to

both roadmap, is which will acquisitions involve on align Reenergizing our and avenue suitable. to with R&D investments depending our customer innovation most technology internal product

Finally, position responsibility. our Officer, a designed both and one is Jeff Chief Operating operations to change new the between Vishay, passive down break of Webster, and at barriers semis. now under drives passive This semiconductors

expansions, excellence, expertise to and drive our cost customers. operational by reduction, subcontractor Jeff’s resulting capacity to all Under service in Vishay qualifications, a we determined are greater leadership,

more We Vishay. timely within the into will facilitate organization leaders speed create action. empower are our to They pushing decision-making to down and

to incentive build shared, are growth enable behavior individual We going And accountability, both within and risk organization collaboration, by are profitability to personal compensation initiatives. and and taking. we to aligning company and going empower reward the forward-looking

our These customer The company for for first initiatives product and are potential foundation the the significant are laid you and goals six full our our for of changes to topline for I of Vishay. margins. value a and growth unleash the Vishay, becoming realizing driving portfolio out broad serving expanding ambition at

XXXX, agreements into have manufacturing of cost next Slide build of Let’s favor go in Vishay’s to signed and slide other of goals evaluation to intend XXXX. for By XX. subcontractors continue a China our qualified deemphasize end we drills where we down number an to completed the low XX of factories, with as to and locations.

our and key XX implementing them. by and go-to-market Designed of horsepower behind the end to put strategies for more market product each lines region

is planar in of both We Third, will to of XXXX. these XXXX-volt release technology customers quarter and acquisition of MaxPower them and progressing available Samples MOSFETs voltages well. to move of XXX-volt production XXXX. first the in target to the be QX

moves to the technology Our as we competitive XXXX-volt performance. continue engineer and this of product’s also development high targeted FRED evaluate forward

and the industrial automotive activities XXXX-volt and applications in design Our continue.

we will look we in develop forward finally, a early And business with three-year you to which plan, sharing XXXX.

to our of electrification and exciting communicate the data the more opportunities Vishay. growth closing, need brings world In for

the more and people right a footprint the customers. do for well-established products, expanding right We and to have manufacturing our

and faster profitability. organization the growth aligning greater are We towards

leading be changes team stage growth and through we XXXX in future. starting Vishay the in setting to substantial excited for I into new the management the ahead am are With and place, these

session. ready to question-and-answer are the we Melissa, begin

Operator

Buchalter proceed with first [Operator from Company. Joshua Thank the line your question. with and Our Cowen comes Please Instructions] of question you.

Joshua Buchalter

end particular across that seeing Thank Thanks is for question, as you the signal of in with to in confidence timing first for in call half my you some I space term the start and and there your on divergent end can wanted are of digestion markets any walk would you through hear us XXXX, we given and helpful a it have hearing assumptions CEO. by mixed term what are earnings up behind congratulations the be and wrapping of the markets? taking improvement some shorter trends the of to shorter the assumptions first Joel, the question, you. inventory several market, the

Joel Smejkal

thanks Joshua, End markets, production EV Okay. this to very strong. anything related the question. design and continues for automotive, stations, vehicle EV for or be charging

Our design through activity in inventory the that deplete the is strong demand the quarter. distributors pulled help and first also that’s will

is overall Industrial us, Industrial robotics, as continue. segment design automation, a factory strong towards know. for things and electrification you most

I So If think, we there’s tools to we like things some that pull about our of help inventory. get industrial will going some there. slowness that, be into through power where talk and

first core to times Military segments had This the to move Vishay and feel have And feel excessive. help lead quickly. has have we of met that second in medical projections and it so the market is our that quarter, and we the position customers good as not long should also We will is move stable for be amount strong rather stock quarter a us because continues defense medical that growth with why of this inventory. and feel I a growing. are couple in well, we

Joshua Buchalter

to next ones? fabs and total investing these you. -- for increased we and more level all larger of you the on fabs, to given years? capacity of portion are your I while predicated of commoditized details thanks the should there. trying closing like it your How any expansion I outsource what for an are I capacity longer planning about outsource to you guess, investing parts. increases of the guess away, sounds And some Thanks what’s And is the the plans. smaller few products, the think Yeah. term expected on you going was are over your in color square then, Thank

Joel Smejkal

Yeah.

product approaches of couple a There’s also here for are a about first. since have number Talk commodity. and of lines passives which passives. semiconductors We

in customs us subcontractors We have qualify we commodity to our We portfolios. want in XXXX. there. at look commodities subcontractors the non-commodity each products, of products and help We and to qualify can

products. use demand improve and to and to delivery the capacity able internal on be our will customer custom on use support that non-commodity also products of capacity We the to commodities those

of We process that number of got in now. a subcons are we have qualifying

our So as see intermediate this an to into ability in XXXX. improvement supply we products

getting the side, it’s On wafer you right, semiconductor are about about it’s foundries, capacity.

we some have number a to capacity aligning fabs, wafer spoken We qualification starting and steps. of are

there’s XXXX. end investment, that this we as with far we found well a of haven’t to As front significant make had help capacity available us investment, semiconductors and as the will

Joshua Buchalter

one There you. Thank that I the one your fire subcontractor one to anything squeeze Thank all Was that think, of, did happening this it year. I for in last wanted was If subcontractors -- issue? in. into of could earlier it you. play just the were in I reports at there’s guidance, baked a if confirm

Joel Smejkal

There facility Welnew. fire in was a The a is name at plating China.

Jeff’s efforts being responsible example to through operation. Jeff organization. semiconductors our one This passage complete the the for We of have is leading

that We plating have the in diodes facilities. internal found one of we capacity

This supporting plating line MOSFET. was

able this be feel that issue, our able and the of We overcome the to plating quarter, will move will by problem. guidance. have QX we Vishay included to end So believe in and in was we first we overcome yes, that production to lines in the the it’s Jeff

Joshua Buchalter

you it. again. Got call first and Thank congrats on the earnings

Joel Smejkal

Thanks, Joshua.

Operator

you. Thank

Matt proceed Stifel. with of question. next line comes question Sheerin from your Our the with Please

Matt Sheerin

Yes. and good Thank you very much morning.

sense get out to a margins playing want this see you year. Just of how

also volumes the obviously, have weighing as got well. you and like You perhaps on some it investments, talked about OpEx inventory sounds some pruning correction,

How points gross was QX we XX% particularly bottom down? lower, should it margins? go Does that here hundred about should several year-over-year margin. or down at basis You think are guiding margins on if

Joel Smejkal

ahead. go Lori,

Lori Lipcaman

the increase XX throughout potentially so basis towards we Well, flat. year, but of to We the the relatively plus stable end year okay, minus will believe XX% slight be a relatively guided the points. with margins

Joel Smejkal

more I can to that. add

are Vishay. to There’s some a prior as about, expenses, going to and you year compare We that operational talked years. required of you it be staging have

got to XXXX of with meeting a some employees. year position company XX I operational those have talked better gaps through after Vishay we OpEx is of and So that required to and about the stage

pressure always input wages. We on see on see costs. on see pressure We We pressure inflation.

materials at be year maintain relatively of our seem to stable, So be gross be point our rest the this margins to and stable see the of the year. flat internally because stable level. to with price throughout the the or We seem also able through activities pricing will be

If we quite well. in have then was going excessive have costs, input prices price are raise there was increase we XXXX. increases large in our to to But as that a done

be as So, margins I think, forward stable the see we quarters of year. Lori said, through this overall, will

Matt Sheerin

Okay. of us could increase, the terms an X:X capacity Thanks in talking in And are generated give on terms of from you that of CapEx CapEx? that. we volumes? then Is revenue, the it idea about what revenue for kind of

Joel Smejkal

expect almost double inductor better we and be expansion one The expansion Mexico capacity, than The us in the to are our X:X. well resistor we strip that’s as technology. in that of to will doubling metal our It putting Mexico, pushes inductors.

per increases billion $X.X over quite we When significant. is So significant talk history to compared $XXX prior going be to years million Vishay year. in these of about capacity three are

see greater to going So for substantially ourselves growth. you positioning are Vishay

Matt Sheerin

macro to tough is that of been couple to be capacity It to like be too orders? you already of some accounted Is there this there ensure able with said, of shift a a environment particularly the much next that so in for may sounds working customers are for are you have customers, to you going if years? terms in concern supply, we

Joel Smejkal

backlog base now at partners. with we call eight strategic Yes. our With eight that months. accounts distributor customer our months backlog the That’s at

a demand We beyond with and Vishay product. are meeting have for lot that greater of customers they

multiple focused When in support and multiple products these XX products, are about talk applications. we that these Vishay segments exciting

responsibility it’s position to and are demand. our grow products So in these high to Vishay

a because It’s lot growth. future. about Vishay the demand and in customer not potential we in. moment, a to developing at will the of be really business So There for are company activities design we in positioning great we greater that’s shifting, grow But road. cyclical bumps significantly It’s have are that the are it strong. a has our this concerned

Matt Sheerin

Okay.

Sounds much. good. Thanks very

Joel Smejkal

Thanks, Matt.

Operator

Instructions] proceed of [Operator you. Ruplu comes the Our with Thank question. Bhattacharya of with Please Bank question next from your line America.

Ruplu Bhattacharya

congrats questions for on new the you Thank Joel. Hi. role taking and my

Let’s talked two your on near-term board. slide on In things. have initiatives, you you about

about -- channel selling. solution enhanced talked you You the and enhancing management about talked

what So to I like of can can And exactly think that. is if more needs terms margin is you sense you solution us wondering a on give individual elaborate channel you you versus between when in bring, was what say change management? the that that selling, of does sell what What you differential do as what and products solutions?

Joel Smejkal

were be customers telecom a our customers, priorities accounts. strategic them automotive of or Many small could Okay. well. The we as set on enhanced channel management, of had the mentioned, as industrial

part XX%. our know, a it’s Distribution nearly is large of as you business,

us. level of the we We we not on were of channel have have lead that in based the opportunities had long distribution the supporting and front times to were could

be significant to and try support meeting the have at lead and a but their ask our they them, another OEM of have the source times qualified. to EMS we suppliers to on build to back EMS, they sources, segment, or have to if Vishay. with EMS other the is first go one are not for well leading able ship, to companies, of are of look demand long [ph] positioned for as The number buy Vishay materials. they Vishay They

have we not business. So been able to support that

do We it. have the opportunity to

distribution through are we EMS. direct SGA wins But to it’s not strong. customer at to design the the support those OEM design be Our need also through well, and activities and as and if channel to able of

having channels, capacity rate, really business wins. and all the to it’s design distribution greater our at So a enjoy supporting OEM, EMS

question unique about second is Vishay company quite Your semiconductors solution a was having selling. by passive. through

the As to many we past, maybe on are we In and solution. many talk technologies product. our we actually particular a design based going speak about customer future, In and one technology, at sell products support engineers and data go the sold we a in can applications we to solutions. sheet to their about

acquisition talk very designs. is Vishay. helpful enabling first carbide as going for discussion this that’s the in carbide, customer Silicon with XXX-volt about Silicon or technology. inverter the to is an a be technology XXX-volt they It’s

Having us do and as conversation. us bring carbide that passives semiconductor we positioned discrete discussions first then customers and the offering of Vishay that this. silicon can in with portfolio allows suppliers are in our feel those it few same uniquely We in puts the to one

Ruplu Bhattacharya

Thanks for I you its the indefinite should impact share for slide company your for about on of the just you and Okay. On capital repatriate Does we that think changed how ask Maybe are buybacks? you pace remind buybacks and talking reinvestment your allocation us cash about and assertion. can thoughts on one details priorities how can the there. the Lori. XX,

Lori Lipcaman

Okay.

it the does enable to absolutely U.S. back to us cash So a manner in sustainable bring

that So we our commitment can shareholder fulfill to policy. return the

Ruplu Bhattacharya

more Okay. will ask And maybe one for Joel. I

billion laid three the have CapEx you plan next a for So out years. $X.X

where -- your online, investments? based how online we are think XXXX like us on can details what does amount of in the something what have assume outer these of Beyond XXXX, stated should quickly you we are and should CapEx for areas the what product in you supply you two give fiscal lines are each investing million, some like, in, how And more specifically investing on years, coming think, $XXX XXXX? some about facilities come I an and you equal which

Joel Smejkal

is million year each Okay. get as years. The of in XXXX, into two capital, said, or be or million. it $XXX we will XXXX When greater those $XXX this we

There’s focused resistor our part products XX to Looking these goes numbers. more that it investment. products, require across

The and we new in new That Mexico. facility expanding inductors production starting facility built, stage lines about space spoke with building. the is it we a the in are but in to now, available there’s

over two fill that years, facility. next to continue to inductor will the that three power So and years grow capacity

we our to -- inverters. magnetics military, of of Custom more expand need portfolio, and another automotive portfolio. heavily industrial because part to inductor we is and medical in inductors that but have in opportunities sell We

a that has to technology the we polymer look enhance at need ability Capacitors, Vishay and the we to tantalum supply.

with billion bigger growing $X polymers in need we to to a and be tantalum. player have We TAM over polymer the capacitors

sensing We coupler industrial. and to OPTO move over automotive in

got have sensors. We proximity

got sensors sensor. light have We for

sensors. rain We have

We our products. on our increase have us of the got enhance products number automotive sensing for to offering, require capacity a that

with there Diodes we and carbide to mentioned MOSFET, silicon diodes I invest have on carbide silicon well. as

these Vishay to as it, attached that’s products, the our broad really and products, quite XX dollars together So are go-to-market where to see we put going investment. across you the it’s strategies

Ruplu Bhattacharya

Appreciate Okay. the Thank you for it. all details.

Joel Smejkal

thank you. you. Thank Ruplu,

Operator

the our Ladies to Mr. floor Smejkal you. comments. that back final I question-and-answer Thank turn any gentlemen, will and for session. concludes

Joel Smejkal

our to you you, forward report we joining And today. Melissa. in much. also for Thank when May call meeting with very you our thank for you and talking weeks with everyone speaking Thank the financial to you XXXX first coming and quarter early I over look again results.

Operator

Thank you. call. This concludes today’s conference

at may your your this for participation. time. lines Thank you disconnect You

Vishay Intertechnology (VSH) 8 Feb 232022 Q4 Earnings call transcript