lfus-20220802
0000889331falseLITTELFUSE INC /DE00008893312022-08-022022-08-02

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 2, 2022
(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 2, 2022, Littelfuse, Inc. (the “Company”) issued a press release announcing the results of its operations for the quarter ended July 2, 2022. 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:


 
 







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 2, 2022
By: /s/ Meenal A. Sethna
 Meenal A. Sethna
Executive Vice President and Chief Financial Officer


Document

Exhibit 99.1
https://cdn.kscope.io/c984fce9180484840d00c0571920802b-lfuslogo2.jpg
https://cdn.kscope.io/c984fce9180484840d00c0571920802b-lfuselogo1.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 2022
Global business execution delivers strong financial performance
CHICAGO, August 2, 2022 - Littelfuse, Inc. (NASDAQ: LFUS), an industrial technology manufacturing company empowering a sustainable, connected, and safer world, today reported financial results for the second quarter ended July 2, 2022:


Net sales of $618.4 million were up 18% versus the prior year period, and up 10% organically
GAAP diluted EPS was $3.48; adjusted diluted EPS was $4.26, up 25% versus the prior year period
Cash flow from operations was $113.6 million and free cash flow was $87.2 million
On July 19, the company completed its acquisition of C&K Switches
The company’s Board of Directors approved a 13% increase in the quarterly cash dividend from $0.53 to
$0.60; this equates to an annualized dividend of $2.40 per share

“We delivered very strong second quarter results above our expectations while continuing to advance our strategic initiatives,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer. “Our record performance to date in 2022 is a testament to our global teams’ execution across the breadth of our end markets. I am also excited to welcome C&K to our organization which significantly expands our ability to serve customers with market leading technologies, capabilities and talent. Looking ahead, we remain focused on effectively managing our business through market volatility while securing growth opportunities driven by sustainability, connectivity, and safety, which will deliver long-term value to our stakeholders.”

Third Quarter of 2022*
Based on current market conditions, for the third quarter the company expects,
Net sales in the range of $630 to $644 million; adjusted diluted EPS in the range of $3.71 to $3.87

*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 $0.60 per share on September 8, 2022, to
shareholders of record as of August 25, 2022

Conference Call and Webcast Information
Littelfuse will host a conference call on Wednesday, August 3, 2022, 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 (NASDAQ: LFUS) is an industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 15 countries, and with approximately 17,000 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 January 1, 2022.





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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 January 1, 2022, its Quarterly Report on Form 10-Q for the quarter ended April 2, 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.

Non-GAAP Financial Measures
The information included in this press release includes the non-GAAP financial measures of organic net sales growth (decline), 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 growth (decline), 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 2,
2022
January 1,
2022
ASSETS
Current assets:
Cash and cash equivalents$809,122 $478,473 
Short-term investments20 28 
Trade receivables, less allowances of $68,933 and $59,232 at July 2, 2022 and January 1, 2022, respectively343,321 275,192 
Inventories496,207 445,671 
Prepaid income taxes and income taxes receivable4,861 2,035 
Prepaid expenses and other current assets65,294 68,812 
Total current assets1,718,825 1,270,211 
Net property, plant, and equipment435,683 437,889 
Intangible assets, net of amortization374,593 407,126 
Goodwill914,358 929,790 
Investments25,626 39,211 
Deferred income taxes12,476 13,127 
Right of use lease assets, net39,724 29,616 
Other long-term assets23,184 24,734 
Total assets$3,544,469 $3,151,704 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$219,764 $222,039 
Accrued liabilities137,377 159,689 
Accrued income taxes34,128 27,905 
Current portion of long-term debt7,500 25,000 
Total current liabilities398,769 434,633 
Long-term debt, less current portion884,569 611,897 
Deferred income taxes74,286 81,289 
Accrued post-retirement benefits35,090 37,037 
Non-current operating lease liabilities32,334 22,305 
Other long-term liabilities67,478 71,023 
Total equity2,051,943 1,893,520 
Total liabilities and equity$3,544,469 $3,151,704 



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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 2,
2022
June 26,
2021
July 2,
2022
June 26,
2021
Net sales$618,436 $523,488 $1,241,766 $987,282 
Cost of sales355,465 326,092 720,199 629,420 
Gross profit262,971 197,396 521,567 357,862 
Selling, general, and administrative expenses93,093 73,315 168,601 131,603 
Research and development expenses23,488 16,394 43,044 31,133 
Amortization of intangibles11,592 10,641 24,316 21,162 
Restructuring, impairment, and other charges634 789 852 1,226 
Total operating expenses128,807 101,139 236,813 185,124 
Operating income134,164 96,257 284,754 172,738 
Interest expense4,368 4,626 8,670 9,299 
Foreign exchange loss (gain)14,124 (1,676)21,860 5,161 
Other expense (income), net6,060 (1,890)10,487 (9,627)
Income before income taxes109,612 95,197 243,737 167,905 
Income taxes22,596 13,102 39,203 28,097 
Net income$87,016 $82,095 $204,534 $139,808 
Earnings per share:  
Basic$3.52 $3.34 $8.28 $5.69 
Diluted$3.48 $3.30 $8.19 $5.62 
Weighted-average shares and equivalent shares outstanding:
Basic24,734 24,592 24,712 24,562 
Diluted24,985 24,900 24,986 24,894 
Comprehensive income$55,667 $87,549 $170,982 $140,391 




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LITTELFUSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Six Months Ended
(in thousands)July 2, 2022June 26, 2021
OPERATING ACTIVITIES  
Net income$204,534 $139,808 
Adjustments to reconcile net income to net cash provided by operating activities:114,659 63,947 
Changes in operating assets and liabilities:
Trade receivables(76,807)(69,881)
Inventories(70,285)(38,205)
Accounts payable9,153 38,955 
Accrued liabilities and income taxes(23,107)4,488 
Prepaid expenses and other assets7,175 (12,766)
Net cash provided by operating activities165,322 126,346 
INVESTING ACTIVITIES  
Acquisitions of businesses, net of cash acquired(9,758)(109,852)
Purchases of property, plant, and equipment(56,151)(32,657)
Net proceeds from sale of property, plant and equipment, and other542 2,569 
Net cash used in investing activities(65,367)(139,940)
FINANCING ACTIVITIES  
Net proceeds (payments) from credit facility275,000 (30,000)
Cash dividends paid(26,201)(23,596)
All other cash provided by financing activities(3,782)4,413 
Net cash provided by (used in) financing activities245,017 (49,183)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(15,511)(2,894)
Increase (decrease) in cash, cash equivalents, and restricted cash329,461 (65,671)
Cash, cash equivalents, and restricted cash at beginning of period482,836 687,525 
Cash, cash equivalents, and restricted cash at end of period$812,297 $621,854 



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LITTELFUSE, INC.
NET SALES AND OPERATING INCOME BY SEGMENT
(Unaudited)
 Second QuarterYear-to-Date
(in thousands)20222021%
Growth /(Decline)
20222021%
Growth
Net sales
Electronics$358,176 $325,347 10.1 %$723,997 $611,882 18.3 %
Transportation182,027 133,318 36.5 %366,531 261,847 40.0 %
Industrial78,233 64,823 20.7 %151,238 113,553 33.2 %
Total net sales$618,436 $523,488 18.1 %$1,241,766 $987,282 25.8 %
Operating income
Electronics$105,958 $74,236 42.7 %$226,535 $129,759 74.6 %
Transportation18,309 19,258 (4.9)%44,617 39,574 12.7 %
Industrial15,285 8,375 82.5 %27,790 11,881 133.9 %
Other(a)(5,388)(5,612)N.M.(14,188)(8,476)N.M.
Total operating income$134,164 $96,257 39.4 %$284,754 $172,738 64.8 %
Operating Margin21.7 %18.4 %22.9 %17.5 %
Interest expense4,368 4,626 8,670 9,299 
Foreign exchange loss (gain)14,124 (1,676)21,860 5,161 
Other expense (income), net6,060 (1,890)10,487 (9,627)
Income before income taxes$109,612 $95,197 15.1 %$243,737 $167,905 45.2 %

(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)20222021%
Growth /(Decline)
20222021%
Growth /(Decline)
Operating Margin
Electronics29.6 %22.8 %6.8 %31.3 %21.2 %10.1 %
Transportation10.1 %14.4 %(4.3)%12.2 %15.1 %(2.9)%
Industrial19.5 %12.9 %6.6 %18.4 %10.5 %7.9 %



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LITTELFUSE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(In millions of USD except per share amounts - unaudited)
Non-GAAP EPS reconciliation
Q2-22Q2-21YTD-22YTD-21
GAAP diluted EPS$3.48 $3.30 $8.19 $5.62 
EPS impact of Non-GAAP adjustments (below)0.78 0.11 1.06 0.46 
Adjusted diluted EPS$4.26 $3.41 $9.25 $6.08 
Non-GAAP adjustments - (income) / expense
Q2-22Q2-21YTD-22YTD-21
Acquisition-related and integration costs (a)$4.8 $0.5 $8.6 $1.3 
Purchase accounting inventory adjustments (b)— 3.3 4.8 6.8 
Restructuring, impairment and other charges (c)0.6 0.8 0.8 1.3 
Loss (gain) on sale of fixed assets (d)— 1.0 — (0.9)
Non-GAAP adjustments to operating income5.4 5.6 14.2 8.5 
Other (income) expense, net (e)(0.5)0.5 (0.5)0.5 
Non-operating foreign exchange loss (gain)14.1 (1.7)21.9 5.2 
Non-GAAP adjustments to income before income taxes19.0 4.4 35.6 14.2 
Income taxes (f)(0.4)1.7 9.1 2.5 
Non-GAAP adjustments to net income$19.4 $2.7 $26.5 $11.7 
Total EPS impact$0.78 $0.11 $1.06 $0.46 
Adjusted operating margin / Adjusted EBITDA reconciliation
Q2-22Q2-21YTD-22YTD-21
Net sales$618.4 $523.5 $1,241.8 $987.3 
GAAP operating income$134.2 $96.3 $284.8 $172.7 
Add back non-GAAP adjustments5.4 5.6 14.2 8.5 
Adjusted operating income$139.6 $101.9 $299.0 $181.2 
Adjusted operating margin22.6 %19.5 %24.1 %18.4 %
Add back amortization11.6 10.6 24.3 21.2 
Add back depreciation15.7 13.6 31.3 27.3 
Adjusted EBITDA$166.9 $126.1 $354.6 $229.7 
Adjusted EBITDA margin27.0 %24.1 %28.6 %23.3 %
Adjusted EBITDA by SegmentQ2-22 Q2-21
ElectronicsTransportationIndustrialElectronicsTransportationIndustrial
GAAP operating income$106.0 $18.3 $15.3 $74.2 $19.3 $8.4 
Add:
Add back amortization6.1 4.3 1.2 7.0 2.3 1.3 
Add back depreciation8.4 6.3 1.0 8.1 4.6 0.9 
Adjusted EBITDA$120.5 $28.9 $17.5 $89.3 $26.2 $10.6 
Adjusted EBITDA Margin33.6 %15.9 %22.3 %27.5 %19.7 %16.2 %



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Adjusted EBITDA by SegmentYTD-22YTD-21
ElectronicsTransportationIndustrialElectronicsTransportationIndustrial
GAAP operating income$226.5 $44.6 $27.8 $129.8 $39.6 $11.9 
Add:
Add back amortization12.8 9.0 2.5 $14.2 $4.7 $2.3 
Add back depreciation17.1 12.3 1.9 $16.3 $9.3 $1.6 
Adjusted EBITDA$256.4 $65.9 $32.2 $160.3 $53.6 $15.8 
Adjusted EBITDA Margin35.4 %18.0 %21.3 %26.2 %20.5 %13.9 %

Net sales reconciliationQ2-22 vs. Q2-21
ElectronicsTransportationIndustrialTotal
Net sales growth10 %37 %21 %18 %
Less:
Acquisitions— %45 %— %11 %
FX impact(3)%(4)%(1)%(3)%
Organic net sales growth (decline)13 %(4)%22 %10 %
Net sales reconciliationYTD-22 vs. YTD-21
ElectronicsTransportationIndustrialTotal
Net sales growth18 %40 %33 %26 %
Less:
Acquisitions— %44 %%13 %
FX impact(3)%(4)%(1)%(3)%
Organic net sales growth21 %— %26 %16 %
Income tax reconciliation
Q2-22Q2-21YTD-22YTD-21
Income taxes$22.6 $13.1 $39.2 $28.1 
Effective rate20.6 %13.8 %16.1 %16.7 %
Non-GAAP adjustments - income taxes(0.4)1.7 9.1 2.5 
Adjusted income taxes$22.2 $14.8 $48.3 $30.6 
Adjusted effective rate17.3 %14.8 %17.3 %16.8 %
Free cash flow reconciliation
Q2-22Q2-21YTD-22YTD-21
Net cash provided by operating activities$113.6 $76.2 $165.3 $126.3 
Less: Purchases of property, plant and equipment(26.4)(17.9)(56.2)(32.6)
Free cash flow$87.2 $58.2 $109.1 $93.7 


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Consolidated Total Debt
As of July 2, 2022
Consolidated Total Debt$892.1 
Unamortized debt issuance costs5.0 
Consolidated funded indebtedness897.1
Cash held in U.S. (up to $400 million)400.0
Net debt$497.1 
Consolidated EBITDA
Twelve Months Ended July 2, 2022
Net Income$348.5 
Interest expense17.9 
Income taxes68.3 
Depreciation60.0 
Amortization45.9 
Non-cash additions (reductions):
Stock-based compensation expense22.6 
Non-cash pension settlement charge19.9 
Purchase accounting inventory step-up charge6.4 
Unrealized loss on investments12.5 
Impairment charges— 
Other62.4 
Consolidated EBITDA (1)$664.4 
Consolidated Net Leverage Ratio (as defined in the Credit Agreement) *0.7x
* 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 in SG&A, a loss of $1.0 million recorded during the second quarter of 2021 for a total year-to-date gain of $0.9 million from the sale of a building within the Electronics segment 2021.
(e) 2022 amount included $0.5 million gain from the sale of a building within Transportation segment. 2021 amount included $0.5 million of impairment charges on certain other investments.
(f) reflected the tax impact associated with the non-GAAP adjustments and 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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q2-22earningsreleaseslid
1 Q2 2022 EARNINGS RELEASE August 2, 2022


 
2Littelfuse, Inc. © 2022 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’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 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 January 1, 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 January 1, 2022, its Quarterly Report on Form 10-Q for the quarter ended April 2, 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 growth (decline), adjusted operating margin, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted effective tax rate, and free cash flow. 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 and ability to generate cash 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. © 2022 Q2 2022 & RECENT HIGHLIGHTS ▪ Continued outperformance, driven by persistent operational execution ▪ Q2: Delivered very strong results above expectations ▪ YoY: Revenue +18%; Adjusted Diluted EPS +25% ▪ Adjusted EBITDA Margin 27% ▪ Record performance year-to-date ▪ YoY: Revenue +26%; Adjusted Operating Margin +500 bps; Adjusted Diluted EPS +52% ▪ Testament to global teams’ execution across breadth of end markets ▪ Completed acquisition of C&K Switches in July ▪ Expands ability to serve customers with market leading technologies, capabilities & talent ▪ 13% increase in quarterly cash dividend ▪ Consistent with capital allocation priorities; confidence in long-term growth of business ▪ 12% CAGR since inception


 
5Littelfuse, Inc. © 2022 Structural Growth Themes Sustainability Connectivity Safety 2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our Growth Drivers Content & Share Gains Strategic Acquisitions High-Growth Markets & Geographies Outcomes Double-Digit Revenue Growth Best-in-Class Profitability Top-Tier Shareholder Returns


 
6Littelfuse, Inc. © 2022 Consistent with strategic M&A priorities C&K SWITCHES ACQUISITION RATIONALE ACQUIRED JULY 2022 NOW PART OF Switches Interconnect Solutions Wire Harnesses


 
7Littelfuse, Inc. © 2022 LITTELFUSE & C&K SWITCHES: COMBINATION OF TWO INDUSTRY LEADING BRANDS EXPANDS COMPLEMENTARY MARKET POSITIONS ▪ Economies of scale to leverage technologies & other investments ▪ Optimization of customer facing & operational structures, leveraging respective strengths ▪ Added operational infrastructure ▪ China, France, Vietnam, Germany, India & U.S. Enables Combined Critical Scale Accelerates Growth in Strategic Applications & Markets ▪ Increases addressable market with addition of market leading electromechanical switches & interconnect solutions ▪ Broadens technical & application expertise, & engineering & design-in capabilities ▪ Technology leadership in high-precision manufacturing, miniaturization & haptics Expansion of Technologies & Capabilities ▪ Strong global presence & growth in target markets ▪ Industrial ▪ Automotive ▪ Datacom Leverages Complementary Customers & Channels ▪ Complementary go-to- market models ▪ Enhances partnerships with distribution channels ▪ Deepens customer penetration through complementary & new OEM relationships


 
8Littelfuse, Inc. © 2022 INDUSTRIAL END MARKETS POSITIONED FOR CONTINUED GROWTH ▪ Generating new business with application knowledge & diverse, high-quality offerings; capitalizing on sustainability & safety ▪ Expanding solution sets with multiple technologies for energy storage, solar & HVAC applications ▪ New safety & power standards generating elevated design wins in commercial kitchens, industrial equipment, motor drives & power grids Q2 2022 Highlights


 
9Littelfuse, Inc. © 2022 TRANSPORTATION END MARKETS EXTENDING OUR LEADERSHIP POSITION Q2 2022 Highlights ▪ Expanding e-mobility wins within ▪ Passenger vehicles … battery management & protection, power distribution & on-board chargers ▪ Commercial vehicles … battery management & powertrain control modules for buses & two/three-wheelers ▪ Off-board charging infrastructure ▪ Automotive electronics wins for telematics, infotainment, and comfort & convenience applications ▪ Increased opportunity pipeline with Carling & Embed capabilities


 
10Littelfuse, Inc. © 2022 ELECTRONICS END MARKETS LEVERAGING OUR LEADERSHIP Q2 2022 Highlights ▪ Capitalizing on robust design activity with greater connectivity, safety & sustainability requirements ▪ Product features & go-to-market model secured new business within ▪ Data centers & telecom infrastructure ▪ Building solutions … security systems & smart doorbells ▪ Appliances & general purpose electronics ▪ Addition of C&K expands capabilities & products; serves as a platform for continued growth


 
FINANCIAL UPDATE Meenal Sethna, EVP & CFO


 
12Littelfuse, Inc. © 2022 Highlights ▪ Financial performance above high end of guidance on sales & earnings ▪ Revenue +18% vs. prior year, +10% organic ▪ Growth across all regions ▪ GAAP operating margin 21.7%; Adjusted operating margin 22.6%, +310 bps vs prior year ▪ Margin expansion driven by volume leverage, positive price/cost & operational execution ▪ Adjusted Diluted EPS +25% vs. prior year ▪ Effective tax rate: GAAP 20.6%; Adjusted 17.3% ▪ Operating cash flow $114m; Free cash flow $87m, 100% conversion of net income Q2 2022 FINANCIAL PERFORMANCE GAAP EPS $3.30 $3.48 Adj. EPS $3.41 $4.26 Adj. EBITDA% 24.1% 27.0% $523 $618 Q2-21 Q2-22 Revenue (in millions) See appendix for GAAP to non-GAAP reconciliation


 
13Littelfuse, Inc. © 2022 ORGANIC INVESTMENTS INORGANIC INVESTMENTS RETURN TO SHAREHOLDERS Programs that: • Drive revenue growth • Advance internal capabilities • Enhance productivity • Maintain cost leadership • Strategic acquisitions to enhance organic growth • Value driven integration drives target financial returns • Additional resources to drive M&A integration Share Repurchases • Opportunistic • Excess cash available to deploy Dividends • 10+ years of growing dividend • 12% CAGR since inception • Grow in line with earnings PRIORITIZED DEPLOYMENT OF CASH GROWTH INVESTMENTS DRIVE INCREASING VALUE FOR SHAREHOLDERS


 
14Littelfuse, Inc. © 2022 Highlights ▪ Revenue growth +10% / organic +13% ▪ +600bps margin expansion ▪ Price/cost, volume & productivity improvements ▪ Project average mid 20’s op margin % ▪ Combination of execution & current market dynamicsOp Margin 22.8% 29.6% Adj. EBITDA% 27.5% 33.6% $325 $358 Q2-21 Q2-22 (in millions) Q2 2022 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE Revenue


 
15Littelfuse, Inc. © 2022 Highlights ▪ Revenue growth +37% / organic (-4%) ▪ Commercial vehicle +6% organic & outperformance across Carling business ▪ Passenger vehicle (-8%) organic; impacted by market … Tier 1 inventory unwind & decline in global auto production ▪ Margin headwinds from currency & negative volume leverage offsetting benefits from price realization Op Margin 14.4% 10.1% Adj. EBITDA% 19.7% 15.9% $133 $182 Q2-21 Q2-22 (in millions) Q2 2022 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE Revenue


 
16Littelfuse, Inc. © 2022 Highlights ▪ Revenue growth +21% / organic +22% ▪ +600bps margin expansion ▪ Price realization & ongoing operational execution ▪ Reduced logistics costs in the quarter due to COVID shutdown in China Op Margin 12.9% 19.5% Adj. EBITDA% 16.2% 22.3% $65 $78 Q2-21 Q2-22 (in millions) Q2 2022 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE Revenue


 
17Littelfuse, Inc. © 2022 Q3 2022 GUIDANCE Highlights ▪ Demand remains strong across most end markets ▪ Ongoing strength across industrial, transportation, most electronics markets ▪ Some softness in consumer-oriented end markets within Electronics segment...appliances & personal electronics ▪ Q3-22 ▪ Sales +18% vs prior year, +2% organic ▪ ~400bps f/x headwind ▪ EPS (-4%) vs prior year ▪ Adjusted effective tax rate ~17.5% ▪ COVID shutdown/recovery in China …Industrial & Electronics segments ▪ ~(-200) bps sales ▪ ~(-150) bps margin ▪ 2 ½ months of C&K Switches; ~(-150) bps operating margin dilution from recent acquisitions $540 Q3-21 Q3-22 Revenue $630 - $644 (in millions) See appendix for GAAP to non-GAAP reconciliation GAAP EPS $3.69 * Adj. EPS $3.95 $3.71 - $3.87


 
18Littelfuse, Inc. © 2022 2022 FULL YEAR CONSIDERATIONS/EXPECTATIONS ▪ Expect to remain positive price/cost for full year in current market conditions ▪ ~300bps (~$60M) sales f/x headwind ▪ C&K Switches: $90 - $95M in sales, ~$.25 EPS (5 ½ months) ▪ ~$55M non-cash amortization expense (including C&K); forward run rate ~$16M/qtr. ▪ ~$27M interest expense at current rates; forward run rate ~$9.5M/qtr. ▪ Adjusted effective tax rate 17% – 18% ▪ ~$110M – $120M capital expenditures ▪ ~100% free cash flow conversion


 
19Littelfuse, Inc. © 2022 KEY TAKEAWAYS ▪ Recognition of global teams for their unwavering commitment & hard work to drive results ▪ Very strong year-to-date performance ▪ Ongoing deployment of resources & capital to enable customers' applications ▪ Extremely well positioned for long-term growth within global structural themes of sustainability, connectivity, & safety ▪ Talented associates, investments for growth & operational excellence, will deliver ongoing long-term value for stakeholders


 
20Littelfuse, Inc. © 2021 Q&A


 
21Littelfuse, Inc. © 2021 APPENDIX


 
22Littelfuse, Inc. © 2022 SUPPLEMENTAL FINANCIAL INFORMATION


 
23Littelfuse, Inc. © 2022 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D


 
24Littelfuse, Inc. © 2022 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D


 
25Littelfuse, Inc. © 2022 SUPPLEMENTAL FINANCIAL INFORMATION CONT’D