0000889331falseLITTELFUSE INC /DE00008893312023-08-012023-08-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20579
 
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report: August 1, 2023
(Date of earliest event reported)
 
LITTELFUSE, INC.
(Exact name of registrant as specified in its charter)
Delaware0-2038836-3795742
(State of other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
 
8755 W. Higgins Road, Suite 500, Chicago, IL 60631
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code: (773) 628-1000
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of exchange on which registered
Common Stock, par value $0.01 per shareLFUSNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐








Item 2.02Results of Operations and Financial Condition
 
The information contained within Item 2.02 of this Form 8-K and the Exhibits attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
 
On August 1, 2023, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter ended July 1, 2023. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and incorporated by reference to this Item 2.02 as if fully set forth herein. A copy of the press release will also be available on the Company’s website.

Item 7.01Regulation FD Disclosure

To supplement the information in the attached press release, the Company has also prepared a presentation, which will be available on the Company’s website at https://investor.littelfuse.com/events-and-presentations and is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in the press release and investor presentation attached to this Form 8-K includes forward-looking statements that are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to comments with respect to the objectives and strategies, financial condition, results of operations and business of the Company. These forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not be achieved. The Company cautions you not to place undue reliance on these forward-looking statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.
 
A copy of the press release is also posted on the Company's website.

Item 9.01Financial Statements and Exhibits.
(d)Exhibits
The following exhibit is furnished with this Form 8-K:
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)


 
 






Signature
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 Littelfuse, Inc.
  
  
Date: August 1, 2023
By: /s/ Meenal A. Sethna
 Meenal A. Sethna
Executive Vice President and Chief Financial Officer



Exhibit 99.1
lfuslogo2a.jpg
lfuselogo1a.jpg
NEWS RELEASE
Littelfuse Inc.
8755 West Higgins Road, Suite 500
Chicago, Illinois 60631
p: (773) 628-1000 f: (773) 628-0802
www.littelfuse.com
LITTELFUSE REPORTS SECOND QUARTER RESULTS FOR 2023
Resilient business model continues to deliver strong year-to-date performance

CHICAGO, August 1, 2023 - Littelfuse, Inc. (NASDAQ: LFUS), a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the second quarter ended July 1, 2023:
•Net sales of $612.0 million were down 1% versus the prior year period, and down 8% organically
•GAAP diluted EPS was $2.79; adjusted diluted EPS was $3.12
•Cash flow from operations was $98.2 million and free cash flow was $82.4 million
•On June 28, the company entered into a purchase agreement to acquire a 200mm wafer fab from Elmos Semiconductor SE, enhancing its power semiconductor capabilities to support long-term business opportunities in high-growth industrial end markets
•The company’s Board of Directors approved an 8% increase in the quarterly cash dividend from $0.60 to $0.65; this equates to an annualized dividend of $2.60 per share
•On July 28, the company released its 2022 Sustainability Report on littelfuse.com/about-us/sustainability

“We delivered solid results in the second quarter driven by our strong operating fundamentals, within an ongoing dynamic environment,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “During the quarter, we secured significant new business in sustainability, connectivity, and safety applications, and continued to advance our strategic investments in high-growth end markets. Our strong overall performance to date, in 2023, reflects the resiliency of our business model. Looking ahead, our diverse technologies and capabilities, and the strength of our execution, continue to position us to deliver on our long-term growth strategy.”

Third Quarter of 2023*

Based on current market conditions, for the third quarter the company expects,
•Net sales in the range of $570 to $595 million, adjusted diluted EPS in the range of $2.48 to $2.72 and an adjusted effective tax rate of approximately 19.5%

*Littelfuse provides guidance on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may include the after-tax impact of items including acquisition and integration costs, restructuring, impairment and other charges, certain purchase accounting adjustments, non-operating foreign exchange adjustments and significant and unusual items. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. Littelfuse is not able to forecast the excluded items in order to provide the most directly comparable GAAP financial measure without unreasonable efforts.
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Dividend

•The company will pay a cash dividend on its common stock of $0.65 per share on September 7, 2023, to shareholders of record as of August 24, 2023

Conference Call and Webcast Information
Littelfuse will host a conference call on Wednesday, August 2, 2023, at 9:00 a.m. Central Time to discuss the results. The call will be broadcast and available for replay at Littelfuse.com. A slide presentation is available in the Investor Relations section of the company’s website at Littelfuse.com.

About Littelfuse
Littelfuse, Inc. (NASDAQ: LFUS) is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximately 18,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Learn more at Littelfuse.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
The statements in this press release that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s (“Littelfuse” or the “Company”) current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; the severity and duration of the COVID-19 pandemic and the measures taken in response thereto and the effects of those items on the company’s business; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse's accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This release should be read in conjunction with information provided in the financial statements appearing in the company's Annual Report on Form 10-K for the year ended December 31, 2022. Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information.
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Non-GAAP Financial Measures
The information included in this press release includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, adjusted effective tax rate, free cash flow, net debt, consolidated EBITDA, and consolidated net leverage ratio (as defined in the credit agreement). Many of these non-GAAP financial measures exclude the effect of certain expenses and income not related directly to the underlying performance of our fundamental business operations.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth in the attached schedules.

The company believes that organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, and adjusted effective tax rate provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of our core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of our fundamental business operations or were not part of our business operations during a comparable period. The company believes that free cash flow is a useful measure of its ability to generate cash. The company believes that net debt, consolidated EBITDA, and consolidated net leverage ratio are useful measures of its credit position. The company believes that all of these non-GAAP financial measures are commonly used by financial analysts and others in the industries in which we operate, and thus further provide useful information to investors. Management additionally uses these measures when assessing the performance of the business and for business planning purposes. Note that our definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies.

CONTACT: Trisha Tuntland
Head of Investor Relations
(773) 628-2163

LFUS-F
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LITTELFUSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)July 1,
2023		December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents$480,743 $562,588 
Short-term investments84 84 
Trade receivables, less allowances of $86,968 and $83,562 at July 1, 2023 and December 31, 2022, respectively339,637 306,578 
Inventories527,151 547,690 
Prepaid income taxes and income taxes receivable3,407 7,215 
Prepaid expenses and other current assets90,324 87,641 
Total current assets1,441,346 1,511,796 
Net property, plant, and equipment481,567 481,110 
Intangible assets, net of amortization628,333 593,970 
Goodwill1,289,188 1,186,922 
Investments25,248 24,121 
Deferred income taxes13,394 14,367 
Right of use lease assets, net56,379 57,382 
Other long-term assets40,259 34,066 
Total assets$3,975,714 $3,903,734 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$173,353 $208,571 
Accrued liabilities143,843 187,057 
Accrued income taxes41,049 41,793 
Current portion of long-term debt137,435 134,874 
Total current liabilities495,680 572,295 
Long-term debt, less current portion864,223 866,623 
Deferred income taxes104,121 100,230 
Accrued post-retirement benefits30,038 28,037 
Non-current operating lease liabilities43,571 45,661 
Other long-term liabilities80,830 79,510 
Total equity2,357,251 2,211,378 
Total liabilities and equity$3,975,714 $3,903,734 


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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(Unaudited)
 Three Months EndedSix Months Ended
(in thousands, except per share data)July 1,
2023		July 2,
2022		July 1,
2023		July 2,
2022
Net sales$611,997 $618,436 $1,221,779 $1,241,766 
Cost of sales377,165 355,465 741,990 720,199 
Gross profit234,832 262,971 479,789 521,567 
Selling, general, and administrative expenses94,543 93,093 182,853 168,601 
Research and development expenses24,496 23,488 51,786 43,044 
Amortization of intangibles16,885 11,592 33,751 24,316 
Restructuring, impairment, and other charges6,855 634 8,705 852 
Total operating expenses142,779 128,807 277,095 236,813 
Operating income92,053 134,164 202,694 284,754 
Interest expense10,056 4,368 19,702 8,670 
Foreign exchange (gain) loss(1,404)14,124 (3,079)21,860 
Other (income) expense, net(2,050)6,060 (8,283)10,487 
Income before income taxes85,451 109,612 194,354 243,737 
Income taxes15,380 22,596 35,538 39,203 
Net income$70,071 $87,016 $158,816 $204,534 
Earnings per share:  
Basic$2.82 $3.52 $6.40 $8.28 
Diluted$2.79 $3.48 $6.33 $8.19 
Weighted-average shares and equivalent shares outstanding:
Basic24,839 24,734 24,810 24,712 
Diluted25,095 24,985 25,078 24,986 
Comprehensive income$55,160 $55,667 $157,188 $170,982 



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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Six Months Ended
(in thousands)July 1, 2023July 2, 2022
OPERATING ACTIVITIES  
Net income$158,816 $204,534 
Adjustments to reconcile net income to net cash provided by operating activities:83,347 114,659 
Changes in operating assets and liabilities:
Trade receivables(30,562)(76,807)
Inventories26,638 (70,285)
Accounts payable(33,796)9,153 
Accrued liabilities and income taxes(57,790)(23,107)
Prepaid expenses and other assets4,980 7,175 
Net cash provided by operating activities151,633 165,322 
INVESTING ACTIVITIES  
Acquisitions of businesses, net of cash acquired(158,260)(9,758)
Purchases of property, plant, and equipment(41,501)(56,151)
Net proceeds from sale of property, plant and equipment, and other741 542 
Net cash used in investing activities(199,020)(65,367)
FINANCING ACTIVITIES  
Net payments of credit facility(3,750)275,000 
Cash dividends paid(29,790)(26,201)
All other cash provided by (used in) financing activities854 (3,782)
Net cash (used in) provided by financing activities(32,686)245,017 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(1,772)(15,511)
(Decrease) increase in cash, cash equivalents, and restricted cash(81,845)329,461 
Cash, cash equivalents, and restricted cash at beginning of period564,939 482,836 
Cash, cash equivalents, and restricted cash at end of period$483,094 $812,297 


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LITTELFUSE, INC.
NET SALES AND OPERATING INCOME BY SEGMENT
(Unaudited)
 Second QuarterYear-to-Date
(in thousands)20232022%
Growth / (Decline)		20232022%
Growth /(Decline)
Net sales
Electronics$350,147 $358,176 (2.2)%$708,740 $723,997 (2.1)%
Transportation172,048 182,027 (5.5)%338,689 366,531 (7.6)%
Industrial89,802 78,233 14.8 %174,350 151,238 15.3 %
Total net sales$611,997 $618,436 (1.0)%$1,221,779 $1,241,766 (1.6)%
Operating income
Electronics$79,844 $105,958 (24.6)%$170,006 $226,535 (25.0)%
Transportation7,789 18,309 (57.5)%16,321 44,617 (63.4)%
Industrial15,108 15,285 (1.2)%32,249 27,790 16.0 %
Other(a)(10,688)(5,388)N.M.(15,882)(14,188)N.M.
Total operating income$92,053 $134,164 (31.4)%$202,694 $284,754 (28.8)%
Operating Margin15.0 %21.7 %16.6 %22.9 %
Interest expense10,056 4,368 19,702 8,670 
Foreign exchange (gain) loss(1,404)14,124 (3,079)21,860 
Other (income) expense, net(2,050)6,060 (8,283)10,487 
Income before income taxes$85,451 $109,612 (22.0)%$194,354 $243,737 (20.3)%

(a) "other" typically includes non-GAAP adjustments such as acquisition-related and integration costs, purchase accounting inventory adjustments and restructuring and impairment charges. (See Supplemental Financial Information for details.)

N.M. - Not meaningful
 Second QuarterYear-to-Date
(in thousands)20232022%
(Decline)		20232022%
Growth /(Decline)
Operating Margin
Electronics22.8 %29.6 %(6.8)%24.0 %31.3 %(7.3)%
Transportation4.5 %10.1 %(5.6)%4.8 %12.2 %(7.4)%
Industrial16.8 %19.5 %(2.7)%18.5 %18.4 %0.1 %


Page 8

LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(In millions of USD except per share amounts - unaudited)
Non-GAAP EPS reconciliation
Q2-23Q2-22YTD-23YTD-22
GAAP diluted EPS$2.79 $3.48 $6.33 $8.19 
EPS impact of Non-GAAP adjustments (below)0.33 0.78 0.42 1.06 
Adjusted diluted EPS$3.12 $4.26 $6.75 $9.25 
Non-GAAP adjustments - (income) / expense
Q2-23Q2-22YTD-23YTD-22
Acquisition-related and integration costs (a)$3.8 $4.8 $7.2 $8.6 
Purchase accounting inventory adjustments (b)— — — 4.8 
Restructuring, impairment and other charges (c)6.9 0.6 8.7 0.8 
Non-GAAP adjustments to operating income10.7 5.4 15.9 14.2 
Other income, net (d)— (0.5)(0.2)(0.5)
Non-operating foreign exchange (gain) loss(1.4)14.1 (3.1)21.9 
Non-GAAP adjustments to income before income taxes9.3 19.0 12.6 35.6 
Income taxes (e)1.0 (0.4)1.9 9.1 
Non-GAAP adjustments to net income$8.3 $19.4 $10.7 $26.5 
Total EPS impact$0.33 $0.78 $0.42 $1.06 
Adjusted operating margin / Adjusted EBITDA reconciliation
Q2-23Q2-22YTD-23YTD-22
Net sales$612.0 $618.4 $1,221.8 $1,241.8 
GAAP operating income$92.1 $134.2 $202.7 $284.8 
Add back non-GAAP adjustments10.7 5.4 15.9 14.2 
Adjusted operating income$102.8 $139.6 $218.6 $299.0 
Adjusted operating margin16.8 %22.6 %17.9 %24.1 %
Add back amortization16.9 11.6 33.8 24.3 
Add back depreciation18.0 15.7 35.6 31.3 
Adjusted EBITDA$137.7 $166.9 $288.0 $354.6 
Adjusted EBITDA margin22.5 %27.0 %23.6 %28.6 %
Adjusted EBITDA by SegmentQ2-23 Q2-22
ElectronicsTransportationIndustrialElectronicsTransportationIndustrial
GAAP operating income$79.8 $7.8 $15.1 $106.0 $18.3 $15.3 
Add:
Add back amortization10.1 4.2 2.7 6.1 4.3 1.2 
Add back depreciation9.7 6.9 1.4 8.4 6.3 1.0 
Adjusted EBITDA$99.6 $18.9 $19.2 $120.5 $28.9 $17.5 
Adjusted EBITDA Margin28.5 %11.0 %21.4 %33.6 %15.9 %22.3 %


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Adjusted EBITDA by SegmentYTD-23 YTD-22
ElectronicsTransportationIndustrialElectronicsTransportationIndustrial
GAAP operating income$170.0 $16.3 $32.2 $226.5 $44.6 $27.8 
Add:
Add back amortization20.3 8.6 4.9 12.8 9.0 2.5 
Add back depreciation19.5 13.6 2.5 17.1 12.3 1.9 
Adjusted EBITDA$209.9 $38.5 $39.6 $256.4 $65.9 $32.2 
Adjusted EBITDA Margin29.6 %11.4 %22.8 %35.4 %18.0 %21.3 %
Net sales reconciliationQ2-23 vs. Q2-22
ElectronicsTransportationIndustrialTotal
Net sales (decline) growth(2)%(5)%15 %(1)%
Less:
Acquisitions11 %1 %6 %7 %
FX impact— %— %— %— %
Organic net sales (decline) growth(13)%(6)%9 %(8)%
Net sales reconciliationYTD-23 vs. YTD-22
ElectronicsTransportationIndustrialTotal
Net sales (decline) growth(2)%(8)%15 %(2)%
Less:
Acquisitions12 %— %5 %7 %
FX impact(1)%(1)%(1)%(1)%
Organic net sales (decline) growth(13)%(7)%11 %(8)%
Income tax reconciliation
Q2-23Q2-22YTD-23YTD-22
Income taxes$15.4 $22.6 $35.5 $39.2 
Effective rate18.0 %20.6 %18.3 %16.1 %
Non-GAAP adjustments - income taxes1.0 (0.4)1.9 9.1 
Adjusted income taxes$16.4 $22.2 $37.4 $48.3 
Adjusted effective rate17.4 %17.3 %18.1 %17.3 %
Free cash flow reconciliation
Q2-23Q2-22YTD-23YTD-22
Net cash provided by operating activities$98.2 $113.6 $151.6 $165.3 
Less: Purchases of property, plant and equipment(15.8)(26.4)(41.5)(56.2)
Free cash flow$82.4 $87.2 $110.1 $109.1 

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Consolidated Total Debt
As of July 1, 2023
Consolidated Total Debt$1,001.7 
Unamortized debt issuance costs4.3 
Consolidated funded indebtedness1,006.0 
Cash held in U.S. (up to $400 million)127.4
Net debt$878.6 
Consolidated EBITDA
Twelve Months Ended July 1, 2023
Net Income$327.4 
Interest expense37.2 
Income taxes66.1 
Depreciation69.3 
Amortization65.1 
Non-cash additions:
Stock-based compensation expense24.6 
Purchase accounting inventory step-up charge10.8 
Unrealized loss on investments0.8 
Impairment charges8.5 
Other19.4 
Consolidated EBITDA (1)$629.2 
Consolidated Net Leverage Ratio (as defined in the Credit Agreement) *1.4x
* Our Credit Agreement and Private Placement Note with maturities ranging from 2023 to 2032, contain financial ratio covenants providing that if, as of the last day of each fiscal quarter, the Consolidated Net Leverage ratio at such time for the then most recently concluded period of four consecutive fiscal quarters of the Company exceeds 3.50:1.00, an Event of Default (as defined in the Credit Agreement and Private Placement Senior Notes) is triggered.

The Credit Agreement and Private Placement Senior Notes were amended in Q2 2022 and now allow for the addition of acquisition and integration costs up to 15% of Consolidated EBITDA and the netting of up to $400M of Available Cash (Cash held by US Subsidiaries).

(1) Represents Consolidated EBITDA as defined in our Credit Agreement and Private Placement Senior Notes and is calculated using the most recently concluded period of four consecutive quarters.

Note: Total will not always foot due to rounding.

(a) reflected in selling, general and administrative expenses ("SG&A").
(b) reflected in cost of sales.
(c) reflected in restructuring, impairment and other charges.
(d) reflected YTD gain of $0.2 million from the sale of a building within the Electronics segment in the first quarter of 2023. 2022 amount included $0.5 million gain from the sale of a building within Transportation segment.
(e) reflected the tax impact associated with the non-GAAP adjustments, and 2022 amount includes the one-time net benefit of $7.2 million that resulted from the dissolution of one of the Company’s affiliates.

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1 Q2 2023 EARNINGS RELEASE August 1, 2023

 
2Littelfuse, Inc. © 2023 Important Information About Littelfuse, Inc. This presentation does not constitute or form part of, and should not be construed as, an offer or solicitation to purchase or sell securities of Littelfuse, Inc. and no investment decision should be made based upon the information provided herein. Littelfuse strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at investor.littelfuse.com. This website also provides additional information about Littelfuse. “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995. The statements in this presentation that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse, Inc.’s ("Littelfuse" or the "Company") current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward- looking statements. These risks and uncertainties, include, but are not limited to, risks and uncertainties relating to general economic conditions; the severity and duration of the COVID-19 pandemic and the measures taken in response thereto and the effects of those items on the company’s business; product demand and market acceptance; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; exchange rate fluctuations; commodity and other raw material price fluctuations; the effect of Littelfuse accounting policies; labor disputes; restructuring costs in excess of expectations; pension plan asset returns less than assumed; integration of acquisitions; uncertainties related to political or regulatory changes; and other risks which may be detailed in the company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This presentation should be read in conjunction with information provided in the financial statements appearing in the company's Annual Report on Form 10-K for the year ended December 31, 2022. Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2022, and in other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at http://www.sec.gov. These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information. Non-GAAP Financial Measures. The information included in this presentation includes the non-GAAP financial measures of organic net sales (decline) growth, adjusted operating margin, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted effective tax rate, free cash flow, and consolidated net leverage ratio (as defined in the credit agreement). A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the appendix. The company believes that these non-GAAP financial measures provide useful information to investors regarding its operational performance, ability to generate cash and its credit position enhancing an investor’s overall understanding of its core financial performance. The company believes that these non-GAAP financial measures are commonly used by financial analysts and provide useful information to analysts. Management uses these measures when assessing the performance of the business and for business planning purposes. Note that the definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies. DISCLAIMERS

 
BUSINESS UPDATE Dave Heinzmann, President & CEO

 
4Littelfuse, Inc. © 2023 Q2 2023 HIGHLIGHTS  Solid financial results  Revenue $612m  Adj. Operating Margin 16.8%  Adj. Diluted EPS $3.12  Adj. EBITDA 22.5%  Advanced strategic investments in high-growth end markets  Entered into purchase agreement to acquire 200mm wafer fab from Elmos Semiconductor SE  Will complement current footprint; adds highly-skilled technology team & high-quality wafer operation  Significant design wins in renewables, industrial automation & safety, medical, power supplies, cloud computing to support AI, electrification of vehicles & charging infrastructure  Robust opportunity pipeline across sustainability, connectivity, & safety applications  Strong overall performance year to date reflects resiliency of business model & strength of execution

 
5Littelfuse, Inc. © 2023 2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our capabilities, investments & diversification deliver significant value

 
6Littelfuse, Inc. © 2023 2022 SUSTAINABILITY REPORT HIGHLIGHTS Our Purpose We empower a sustainable, connected, and safer world 22% decrease in Scope 2 GHG emissions intensity Environment Social Governance 138% increase in renewable energy 12% decrease in overall energy intensity 84% manufacturing sites ISO 14001 certified 70% of our generated waste is recycled ~ 5,000 Hours of Cybersecurity and Data Privacy training globally Refined values to support long-term growth strategy ~ 20% reduced total injury incident rate significant suppliers screened from ESG perspective Initiated U.S. pay equity analysis 2.5 Hours per Employee of annual Ethics & Compliance training 99% Average completion Expanded Enterprise Risk Management, formed climate-related risk and opportunities committee and implemented supplier assessments Formal ESG Policy Manufacturing site sustainability team Central ESG software to manage and internally audit our ESG data Cobalt & Mica Included in supply chain due diligence America’s Best Midsize Employer Recognition from Forbes 574 Framework & Disclosure Programs:

 
7Littelfuse, Inc. © 2023 INDUSTRIAL END MARKETS POSITIONED FOR ACCELERATED GROWTH  Leading technologies critical for empowering greater sustainability & safety  High-performing solutions driving significant new business wins in renewables, industrial safety, HVAC, & motor drives  Solar, battery storage systems, safety applications for major retail chains & restaurants  Substantial new business opportunities related to government funded initiatives & infrastructure investments supporting electrification  Multiple technology wins for battery plant construction project with major automotive manufacturer Q2 2023 Highlights

 
8Littelfuse, Inc. © 2023 TRANSPORTATION END MARKETS EXTENDING OUR LEADERSHIP POSITION  Continued double-digit content outgrowth across passenger vehicle product portfolio  Robust new design wins driven by technical expertise & range of reliable products  Electrification: on-board charging, high-voltage power distribution, battery management systems, drive applications  Electronification: in-cabin cameras, hands-on-detection applications  Commercial vehicle design wins across broad range of applications  Electrification: construction equipment & two/three-wheelers  Agriculture equipment  Broad technology portfolio, enhanced with Western Automation solutions, expands presence in charging infrastructure Q2 2023 Highlights

 
9Littelfuse, Inc. © 2023 ELECTRONICS END MARKETS EXPANDING OUR LEADERSHIP  Global reach & superior design support accelerating design wins for next generation applications  Safety – critical lifesaving medical devices  Wearable defibrillators, implantable devices  Connectivity – datacenters, communications infrastructure to support machine learning & AI  Sustainability – LED lighting, rechargeable power tools  Continue to unlock opportunities for C&K switches portfolio; cross selling to Littelfuse customers  Pipeline of new business opportunities reflects growing electronics content across diverse applications Q2 2023 Highlights

 
FINANCIAL UPDATE Meenal Sethna, EVP & CFO

 
11Littelfuse, Inc. © 2023  Revenue (-1%) / (-8%) organic, vs PY  Acquisitions +7%  GAAP op margin 15.0%; adj. op margin 16.8%  YTD margins: GAAP operating 16.6%; adj. operating 17.9% & adj. EBITDA 23.6%...aligned with targets  Non-operating items reduced EPS 9 cents  Operating cash flow $98m; free cash flow $82m  YTD: operating cash flow $152m, free cash flow $110m, 69% conversion  Capital structure strength; net debt/EBITDA leverage 1.4x  8% increase in quarterly cash dividend, $2.60 annualized rate  12% CAGR since inception Q2 2023 TOTAL COMPANY FINANCIAL PERFORMANCE GAAP EPS $3.48 $2.79 Adj. EPS $4.26 $3.12 Adj. EBITDA% 27.0% 22.5% $618 $612 Q2-22 Q2-23 Revenue(in millions) See appendix for GAAP to non-GAAP reconciliation Highlights

 
12Littelfuse, Inc. © 2023 $358 $350 Q2-22 Q2-23 Q2 2023 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE Revenue  Revenue (-2%) / organic (-13%), vs PY  +11% C&K acquisition  Organic strength in margin performance within transitory destocking environment  Continued momentum across portfolio  Growth areas…industrial, medical, renewable applications, auto electrification themes (in millions) Op Margin 29.6% 22.8% Adj. EBITDA% 33.6% 28.5% Highlights See appendix for GAAP to non-GAAP reconciliation

 
13Littelfuse, Inc. © 2023 $182 $172 Q2-22 Q2-23 Q2 2023 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE Revenue  Revenue (-5%) / organic (-6%), vs PY  Passenger vehicle growth +7%​  Significant driver of company-wide double-digit content outgrowth​  Commercial vehicle business organic (-17%)​  Higher than anticipated transitory inventory destocking despite end market growth​  Continued focus on improved op margin trajectory to mid-teens​  Additional cost reductions  Expanded operational footprint shifts​  Product/customer profitability optimization  Ongoing Carling integration initiatives (in millions) Op Margin 10.1% 4.5% Adj. EBITDA% 15.9% 11.0% See appendix for GAAP to non-GAAP reconciliation Highlights

 
14Littelfuse, Inc. © 2023 $78 $90 Q2-22 Q2-23 Q2 2023 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE Revenue  Revenue +15% / organic +9%, vs PY  Western Automation acquisition +6%​  Wins across higher-growth and newer end markets  Renewables, energy storage, industrial automation, & safety​  Continuation of robust margin profile, aligned with target (in millions) Op Margin 19.5% 16.8% Adj. EBITDA% 22.3% 21.4% See appendix for GAAP to non-GAAP reconciliation Highlights

 
15Littelfuse, Inc. © 2023 Q3 2023 GUIDANCE  Macro view  Continued growth in renewables, industrial, medical, cloud/AI, electrification themes  Ongoing inventory destocking across Electronics & Transportation segments through this year  Q3 Sales $570 - $595m  (-12%) vs PY; (-5%) sequentially  By segment: growth in Industrial, decline in Electronics & Transportation  Q3 EPS $2.48 - $2.72  Impact from sales volume de-leverage  Adj. tax rate ~19.5% (in millions) See appendix for GAAP to non-GAAP reconciliation $659 $612 $595 - $570 Q3-22 Q2-23 Q3-23 Revenue Adj. EPS $4.28 $3.12 $2.48 - $2.72 GAAP EPS $3.02 $2.79 - Highlights

 
16Littelfuse, Inc. © 2023 FULL YEAR 2023 CONSIDERATIONS / EXPECTATIONS  F/X (-$0.35) EPS impact, neutral to sales at current F/X rates  Expect to maintain company adjusted operating margins in high-teens  Other Assumptions  $66m amortization expense  $40m interest expense at current rates  Adj. tax rate 18 – 19%  Investing $100 - $110m in capital expenditures  Acquisition of Dortmund semiconductor fab  Expected close early fiscal 2025  Not expected to have a material impact to 2023 / 2024 financial results

 
17Littelfuse, Inc. © 2023 DIVERSIFICATION OF TECHNOLOGIES, END MARKETS & GEOGRAPHIES DELIVERS DOUBLE-DIGIT REVENUE & EARNINGS CAGR $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 EP S Sa le s Revenue (M$) Adjusted EPS Resilient business model & strong growth strategy  Expanded market leadership & profitability  Playbook to successfully manage through dynamic environments  Prioritizing long-term strategic investments & managing cost structure  Experienced global teams *15-yr: 2007 - 2022; 10-yr: 2012 - 2022; 5-yr: 2017 - 2022 15-, 10-, 5-yr CAGRs* Sales +11% to +16% Adj EPS +17%

 
18Littelfuse, Inc. © 2023 APPENDIX

 
19Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION

 
20Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
21Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
22Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
23Littelfuse, Inc. © 2023 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D

 
v3.23.2
Document and Entity Information
Aug. 01, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 01, 2023
Entity Registrant Name LITTELFUSE INC /DE
Entity Central Index Key 0000889331
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 0-20388
Entity Tax Identification Number 36-3795742
Entity Address, Address Line One 8755 W. Higgins Road
Entity Address, Address Line Two Suite 500
Entity Address, City or Town Chicago
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60631
City Area Code 773
Local Phone Number 628-1000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol LFUS
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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