Jefferies 2013 Global Technology, Media and Telecom Conference May 8, 2013 New York City, NY

Transcription

1 Jefferies 2013 Global Technology, Media and Telecom Conference May 8, 2013 New York City, NY 1

2 Safe Harbor Safe Harbor Statement under the Private Securities Litigation Reform Act of Comments made during this presentation include forward-looking statements. These statements are subject to various risks and uncertainties, and as a result, actual results may differ materially from those expressed in the forward-looking statements. A discussion of these risk factors may be found in Littelfuse quarterly and annual reports filed with the SEC. 2

3 The #1 Brand in Circuit Protection Emerging Player in Power Control and Sensing Electronics Automotive Electrical Littelfuse has the broadest and deepest portfolio of circuit protection products serving three major market segments. 3

4 Littelfuse Protects Against Common Threats to Electrical Circuits and Components Overcurrent Protection Overvoltage Protection Power Monitoring and Protective Switching Power Distribution and Control Power Cross ESD Protection Ground-Fault Protection Power Distribution Centers Overloads & Short Circuits Lightning Protection Equipment Protection Mining Control Consoles Every product that uses electrical energy needs circuit protection to ensure safety, reliability and performance. 4

5 Our Customers Are Global Market Leaders LEADING OEMs EMS/ODM TIER 1 AUTO Global Distribution Partners 5

6 The Only Company to Offer a Complete Range of Circuit Protection Technologies 6

7 Corporate Strategy: 2013 to 2017 Mission Leverage our global leadership position in circuit protection to double our business by 2017 and become a leader in power control and sensing PROTECT CONTROL SENSE 7

8 Corporate Strategy: Target Growth Areas Megatrends Value of Human Life Efficiency/Green Connected/Communication Predictive/Preventative Systems Globalization PROTECT CONTROL SENSE GROWTH AREAS STRATEGIC GROWTH AREAS Protection Relays Custom Electrical Centers Industrial Electronic Modules/Controls Sensors Commercial Vehicle Products PROTECT AND GROW THE CORE Drive Lean Initiatives 8

9 Electrical Growth Driven by Protection Relays and Custom Products Revenue Operating Margin 21% CAGR $132 $63 Note: 2008 Figures presented on same basis as company s current segment reporting. 9

10 Electrical: Protection Relays and Custom Products 38% CAGR Protection Relays Custom Products Growth Drivers Growth in Canadian potash mining Expansion into new geographies Penetration into oil & gas, industrial and marine markets Increasing production capacity for custom products 10

11 Electrical: Solar is Rebounding 24% CAGR Growth Drivers New products driving market share gains Growth in U.S. and India New designs for emerging applications progress to 1500 Volt DC systems 11

12 Electronics: Strong Margin Performance Despite Weak Market Conditions $330 Revenue $330 Operating Margin Note: 2008 Figures presented on same basis as company s current segment reporting. 12

13 Electronics: Focusing on Higher Margin Industrial Niches Target Markets Telecom Infrastructure Building Power Distribution Outdoor LED Lighting Industrial Motion Control and Industrial Heating Switching Thyristors, Triacs, SCRs Why These Markets are Attractive? We have the base technologies We can modify these products as needed for target applications High quality, reliability and performance We have a strong background with regulatory agencies Less competition vs. components Higher margins IEC SPD Stacked MOV + thermal disconnect/indication Triggered spark gaps, Large GDT LED SPD module 13

14 LED Lighting: High Growth Opportunity 29% CAGR Source: Digitimes Research Feb 2012 PLED (Silicon Switching Device) TVS Diode MOV Electrical Fuse Electronic Fuse PTC 14

15 Automotive: Organic Growth + New Platforms Revenue Operating Margin 11% CAGR $206 $137 Note: 2008 Figures presented on same basis as company s current segment reporting. 15

16 Automotive Organic Growth Drivers Asia High Current Fuses 25% CAGR 17% CAGR Leader in high-growth Asian markets Increasing investment in local resources More high current loads Electrical architecture change More hybrid and electric vehicles 16

17 Commercial Vehicles: Acquisitions Expand Offering and Bring Deeper OEM Relationships ELECTRICAL PROTECTION ELECTRICAL SWITCHING Con-Ag Focus POWER DISTRIBUTION Heavy Truck Focus Commercial Vehicles (CVP) 17

18 Hamlin Acquisition: A Major Step Forward to Build a Global Sensor Platform Standard Products Speed and Direction Safety Utilities and Fluid Management Reed switches Reed relays Catalog sensors Automatic transmission speed sensors Actuator position Gear shifter position Cam & crank sensors Fan speed sensing Seatbelt buckle and tension sensors Crash sensors Seat position sensing Remote utility meter reading counters & tamper detection Industrial sensors Fluid level sensors Reed Switches Reed Relays Sensors 18

19 Hamlin: An Excellent Fit With Littelfuse More Content Per Vehicle AUTOMOTIVE Protection AUTOMOTIVE Sensing AUTOMOTIVE Sensing AUTOMOTIVE Leveraging Distribution Channels ELECTRONICS Protection ELECTRONICS Sensing INDUSTRIAL CONSUMER 19

20 Strong 10 Year Growth Record 10 year CAGR Sales 9% Operating Income 19% EPS 22% Note: 2012 EPS excludes $0.43 of special charges. 20

21 Sales Growth Targets Annual Sales Growth Targets Organic Acquisition Total Historical 4% 5% 9% % 10% 15% 21

22 Targeted Revenue Growth Today: 2012 Revenue = $668 million 2017 Targets: Revenue = $1.3 - $1.4 billion Sensing 2% *Power Control Passives 25% Semis Passenger Commercial Circuit Protection 73% Relays/ Custom Fuses Sensing 15% *Power Control 39% Circuit Protection 46% *Power control includes commercial vehicle products, protection relays, custom products and power semiconductor products 22

23 Cash Flow & Capital Structure Targets Cash Flow Model Uses of Free Cash Operating Cash Flow 16-18% Capital Expenditures (4%) Free Cash Flow 12-14% Acquisitions Dividends Share Repurchase 65% 20% 15% Target Capital Structure Leverage = 1.0x 2.5x EBITDA 23

24 Committed to Increasing Shareholder Value Grow organically faster than our markets Take recently-acquired products into new geographies and end markets Focus on faster-growing niches within core circuit protection Double the pace of acquisitions Take advantage of strong balance sheet and free cash flow Devote more resources to sourcing targets in our strategic growth areas Seek larger consolidating plays within core circuit protection Sustain high teens operating margin Increase pace of lean activities Focus growth investments in higher margin segments Rationalize footprint /cost structure as necessitated by further acquisitions Improve return on investment Drive higher inventory turns through lean activities Grow new platforms that are less capital intensive Move to more efficient capital structure Return excess cash to shareholders Increase the dividend annually Repurchase shares opportunistically 24