Vishay Precision : VPG Investor Presentation

Vishay Precision Group

Structured for Growth

PERFORMANCE THROUGH PRECISION

September 2023

Safe Harbor Statement

From time to time, information provided by us, including, but not limited to, statements in this presentation, or other statements made by or on our behalf, may contain or constitute "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from those anticipated.

Such statements are based on current expectations only, and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, expected, estimated, or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; impact of inflation; issues respecting the United States federal government debt ceiling; global labor and supply chain challenges; difficulties or delays in identifying, negotiating and completing acquisitions and integrating acquired companies; the inability to realize anticipated synergies and expansion possibilities; difficulties in new product development; changes in competition and technology in the markets that we serve and the mix of our products required to address these changes; changes in foreign currency exchange rates; political, economic, health (including the COVID-19 pandemic) and military instability in the countries in which we operate; difficulties in implementing our cost reduction strategies, such as underutilization of production facilities, labor unrest or legal challenges to our lay-off or termination plans, operation of redundant facilities due to difficulties in transferring production to achieve efficiencies; compliance issues under applicable laws, such as export control laws, including the outcome of our voluntary self-disclosureof export control non-compliance; significant developments from the recent and potential changes in tariffs and trade regulation; our efforts and efforts by governmental authorities to mitigate the COVID-19 pandemic, such as travel bans, shelter-in-place orders and business closures and the related impact on resource allocations, manufacturing and supply chains; our status as a "critical", "essential" or "life-sustaining" business in light of COVID-19 business closure laws, orders and guidance being challenged by a governmental body or other applicable authority; our ability to execute our new corporate strategy and business continuity, operational and budget plans; and other factors affecting our operations, markets, products, services, and prices that are set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report or as of the dates otherwise indicated in such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Non-GAAP Measures

This presentation includes discussion of adjusted free cash flow, adjusted gross profit and adjusted operating income and their corresponding margins, as well as adjusted net earnings, EBITDA, adjusted EBITDA, and adjusted net diluted earnings per share. These are financial measures that were not prepared in accordance with generally accepted accounting principles in the United States (non-GAAP measures). Management believes that these non-GAAP measures are useful to investors because each presents what management views as our core operating results for the relevant period. The adjustments to the applicable GAAP measures relate to occurrences or events that are outside of our core operations, and management believes that the use of these non-GAAP measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in VPG's financial statements presented in our Annual Report on Form 10-K and its Quarterly Reports on Forms 10-Q.

PERFORMANCE THROUGH PRECISION

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VPG Focus: Performance Through Precision

Who we are

VPG is a leader in precision measurement sensing technologies serving growing applications around the world

Why we matter

VPG delivers in-depth, deep engineering expertise to the design and manufacture of non-commodity sensors, weighing solutions and precision measurement systems that optimize and enhance our customers' solutions performance across a broad array of end markets

PERFORMANCE THROUGH PRECISION

VPG's Sensors, Weighing Solutions, and

Measurement Systems Help Make the World Safer, Smarter, and Productive

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Growth and Profitability

FY22 Results1

14.0%	7%	41.8%
Sales Growth	5-Year Sales Growth	Adj. Gross Margin
	CAGR 2018-2022
13.0%	17.1%	40.1%
Adj. Operating Margin	Adj. EBITDA Margin	Adjusted EPS
		Growth

Three-to-five year targets2

• Revenue growth low-double digits
• Adjusted gross margin of 45%
• Adjusted operating margin of 18%
• Adjusted EBITDA margin of 22%

1. See GAAP to non-GAAP reconciliations in VPG's financial disclosures
2. Reflects organic and M&A, based on 2022 actual foreign exchange rates

PERFORMANCE THROUGH PRECISION

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Delivered Record Financial Performance in 2022

Revenue				Adj. EBITDA		Adj. Diluted EPS
		$362.6			$62.0			$2.62
							$2.63
$299.8	$317.9
	$50.4	$49.9
$284.0	$269.8		$2.05
				$45.9	$1.87
						$1.79
					$37.9	$1.75
					$1.63	$1.48
								$1.32
								$0.79

2018	2019	2020	2021	2022	1	2	3	4	5	2018	2019	2020	2021	2022
			Revenue						Adj. EBITDA						EPS			Adj. EPS

PERFORMANCE THROUGH PRECISION

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