IPG Photonics Corporation (NASDAQ:IPGP) Q4 2020 Earnings Conference Call February 16, 2021 10:00 AM ET Company Participants Eugene Fedotoff - Director, Investor Relations Valentin Gapontsev - Chief Executive Officer and Chairman Eugene Scherbakov - Chief Operating Officer, Managing Director- IPG Laser GmbH, Senior Vice President, Europe and Director Timothy Mammen - Chief Financial Officer and Senior Vice President Conference Call Participants John Marchetti - Stifel Tom Diffely - D.A. Davidson Nikolay Todo ...

| --- | --- | --- | --- | --- | |--------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | INVESTOR | | | | | | PRESENTATION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | © 201921 IPG Photonics | | | | | Safe Harbor Statement Statements in this presentation that relate to future plans, market forecasts, events or performance are forward-looking statements. These statements involve risks and uncertainties, including, ri ...

Financial Performance - Net sales decreased by $10.7 million, or 3.3%, to $318.4 million for the three months ended September 30, 2020, compared to $329.1 million for the same period in 2019, primarily due to COVID-19 impacts and declining average selling prices[98]. - Net sales for the nine months ended September 30, 2020 decreased by $143.8 million, or 14.3%, to $864.1 million, largely due to COVID-19 impacts and declining average selling prices[114]. - Total sales for the nine months ended September 30, 2020, were $1,007.954 million, a decrease of 14.3% from $1,151.814 million in the same period of 2019[115]. - Net income attributable to IPG Photonics Corporation decreased by $21.7 million to $35.6 million for the three months ended September 30, 2020, with net income as a percentage of net sales dropping to 11.2% from 17.4%[113]. - Net income attributable to IPG Photonics Corporation decreased by $74.5 million to $110.2 million, representing 12.8% of net sales, down from 18.3%[130]. Inventory and Cost Management - The company recorded provisions for slow-moving, obsolete, or excess inventory totaling $11.5 million for the three months ended September 30, 2020[89]. - The average selling prices of the company's products generally decrease as they mature, influenced by increased competition and decreased manufacturing costs[83]. - The company's gross margin can be significantly affected by product mix, with higher power products generally yielding better margins[85]. - Gross margin increased to 48.0% for the three months ended September 30, 2020, up from 46.4% for the same period in 2019, driven by lower cost of products[103]. - Gross margin decreased to 45.4% for the nine months ended September 30, 2020, down from 47.8% in the same period of 2019, attributed to increased unabsorbed manufacturing costs[119]. Research and Development - The company plans to continue investing in research and development to enhance existing products and develop new technologies, including lasers operating at different wavelengths[91]. - Research and development expense decreased by $0.5 million, or 1.6%, to $31.7 million, representing 10.0% of sales, up from 9.8% in the prior year[105]. - Research and development expenses decreased by 4.4% to $95.1 million, but as a percentage of sales, it increased to 11.0% due to lower sales[121]. Foreign Exchange and Financial Position - Foreign exchange gain of $11.3 million was recognized for the three months ended September 30, 2020, compared to a loss of $0.8 million for the same period in 2019, primarily due to the depreciation of the Russian Ruble and appreciation of the Chinese Yuan[109]. - The company anticipates ongoing volatility in foreign exchange rates could continue to result in significant foreign exchange gains and losses[96]. - A foreign exchange gain of $18.1 million was recorded for the nine months ended September 30, 2020, compared to a loss of $7.5 million in the same period of 2019[127]. - Cash and cash equivalents increased to $763.920 million as of September 30, 2020, compared to $680.070 million at the end of 2019[131]. - The company maintained compliance with financial covenants, including an interest coverage ratio of at least 3.0:1.0 and a funded debt to EBITDA ratio of less than three times trailing twelve months EBITDA[135]. Operational Challenges - The company recognized a goodwill impairment charge of $44.6 million in Q3 2020 due to negative impacts from COVID-19 on order flow for its custom systems business[95]. - The company has implemented employee safety protocols that have impacted productivity and efficiency during the COVID-19 pandemic[75]. - The company has not experienced significant supply disruption from third-party component suppliers, but logistics-related supply chain restraints may arise due to COVID-19[76]. - The company’s operations are subject to broader fluctuations in capital equipment spending, which can impact sales and profitability[81]. - Continuous monitoring of the COVID-19 situation to minimize impact on internal controls[155]. Credit and Financing - As of September 30, 2020, the company had a total facility of $75.0 million in the U.S. revolving line of credit and Euro 50.0 million (approximately $58.6 million) in the Euro credit facility[134]. - The company expects to incur between $80 million and $100 million in capital expenditures in 2020, excluding acquisitions, to enhance capacity and support research and development efforts[140]. - Net cash used in financing activities was $25.6 million for the nine months ended September 30, 2020, compared to $27.0 million in 2019, with $37.9 million spent on treasury stock purchases[141]. - The company plans to seek amendments to credit agreements to modify LIBOR and Euribor reference rates as these rates are phased out[134]. - The company’s largest committed credit lines are with Bank of America N.A. and Deutsche Bank AG, totaling $75.0 million and $58.6 million, respectively[134]. Legal and Compliance - No changes in internal control over financial reporting during the last fiscal quarter that materially affected its effectiveness[155]. - No material developments in legal proceedings reported since the Annual Report for the year ended December 31, 2019[157].

IPG Photonics Corporation (NASDAQ:IPGP) Q3 2020 Earnings Conference Call October 30, 2020 10:00 AM ET Company Participants Angelo Lopresti - Senior Vice President and General Counsel Valentin Gapontsev - Chief Executive Officer and Chairman of the Board Eugene Scherbakov - Chief Operating Officer, Managing Director, Senior Vice President, Europe and Director Tim Mammen - Chief Financial Officer and Senior Vice President Conference Call Participants Jim Ricchiuti - Needham and Company John Marchetti - Stifel ...

IPG Photonics Corporation (NASDAQ:IPGP) Q2 2020 Earnings Conference Call August 4, 2020 10:00 AM ET Company Participants James Hillier - VP of IR Valentin Gapontsev - Chairman & CEO Eugene Scherbakov - COO Tim Mammen - SVP & CFO Conference Call Participants Jim Ricchiuti - Needham & Company Tom Diffely - D.A. Davidson Joe Wittine - Edgewater Research Michael Feniger - Bank of America Nikolay Todorov - Longbow Research Mark Miller - The Benchmark Company Operator Good morning and welcome to IPG Photonics Sec ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-3444218 (State or oth ...

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-3444218 (State or ot ...

IPG Photonics Corporation (NASDAQ:IPGP) Q1 2020 Earnings Conference Call May 5, 2020 10:00 AM ET Company Participants James Hillier - VP of IR Valentin Gapontsev - Chairman & CEO Eugene Scherbakov - Managing Director & COO Timothy Mammen - SVP & CFO Conference Call Participants John Marchetti - Stifel Nicolaus Jim Ricchiuti - Needham & Company Tom Diffely - D.A. Davidson Michael Feniger - Bank of America Jed Dorsheimer - Canaccord Genuity Mark Miller - The Benchmark Company Krish Sankar - Cowen & Company Op ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) | Delaware | | 04-3444218 ...

IPG Photonics Corporation (NASDAQ:IPGP) Q4 2019 Earnings Conference Call February 13, 2020 10:00 AM ET Company Participants James Hillier - Vice President of Investor Relations Valentin Gapontsev - Chairman and Chief Executive Officer Eugene Scherbakov - Managing Director and Chief Operating Officer Timothy Mammen - Senior Vice President and Chief Financial Officer Conference Call Participants John Marchetti - Stifel Nicolaus Tom Diffely - D.A. Davidson Companies James Ricchiuti - Needham & Company Michael ...