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PERFORMANCE THROUGH PRECISIONPERFORMANCE THROUGH PRECISION

Vishay Precision GroupPERFORMANCE THROUGH PRECISION

Investor Presentation

12/30/20


Safe Harbor Statement

From time to time, information provided by us, including but not limited to statements in this report, or other statements made by or on our behalf, may contain "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; difficulties or delays in identifying, negotiating

and completing acquisitions and integrating acquired companies (including DSI); 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; 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; the Company’s 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; the Company’s ability

to execute its business continuity, operational and budget plans in light of the COVID-19 pandemic; 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, 2019 and Quarterly Report on Form 10-Q for the fiscal

quarter ended March 28, 2020. 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 and adjusted 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 performance 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. Reconciliations of these non-GAAP measures to the corresponding GAAP measures are included in our

third quarter earnings press release and in the appendix to this presentation which will be available on our website at: www.vpgsensors.com.

2


• Addresses the growing sensor market for

industrial technology applications

• Leader in diversified niches across broad set of

markets with organic growth drivers

• Effective business model and demonstrated

resilience during global pandemic

• Steps already in place to realize operating margin

and EPS leverage as markets and economies

recover

• Clear capital allocation strategy to drive both

organic and inorganic growth

3

Highlights

3-Year Sales

Growth

(CAGR)

$89 Million

Proven Financial Performance

2017-2019:

8%

3-Year Adj. EPS

Growth

(CAGR)32%

3-Year Cumulative Cash

From Operations

PERFORMANCE THROUGH PRECISIONPERFORMANCE THROUGH PRECISION 4

VPG Focuses on Key Niches of the Global Sensor Market

Foil Technology Products

Force Sensors Weighing & Control Systems

• Foil Resistors• Strain gages-advanced sensors• Data acquisition systems

• Load Cells • Weigh modules & load cells• Roll force measurement

systems• On-board weighing systems• Material testing and

simulation systems

VPG: a leader in proprietary sensor and sensor-based

systems solutions addressing demanding

applications in a diversified range of markets


Serving a Diversified and Broadening Set of Markets

5

• Agriculture

• Construction

• Consumer

• Medical

Transportation13%

Industrial Weighing

19%

Avionics / Mil. / Space

9%

Other Markets17%

Steel12%

• Semiconductor Equip.

• Other Test

Test & Measurement

23%

2019 Revenue

by MarketNot reliant on a single market

or end customer

ProductivityOptimization

of Systems

Safety /

Regulation

VPG Value to Customers:

General Industrial

7%


Medical:Helping to improve patient monitoring

Safety and Monitoring

By precisely monitoring a patient’s weight on hospital beds, VPG’s load

cell sensors help nursing staff regulate medication dosage as well as

reduce potential falls which are among the highest patient risks during

hospital stays

6


Productivity

VPG's high-quality load cells help improve crop yields by ensuring

seeds are planted at consistent and optimal soil depths

7

Agriculture:Sensors improve the yield of the world’s farmers


Productivity

6

Semiconductor Test:Helping to maximize the productivity of Automatic Test Equipment (ATE) for Semiconductor products

VPG’s high-precision foil resistors help deliver the highest signal accuracy

required for effective semiconductor chip testing, providing better precision

and stability of test results


Optimization/Precision

9

Robots/Cobots:Advanced Sensors increase the precision of industrial robots

Continuous online and real-time data collected from sensors is

enabling “smart manufacturing” to optimize equipment cost,

performance, quality, and downtime risk.

PERFORMANCE THROUGH PRECISIONPERFORMANCE THROUGH PRECISION9

Performance/Precision

Steel:Accelerating the development of new alloys

Dynamic Systems, Inc. (DSI)’s advanced simulation systems accelerate the

development and characterization of new high-strength, light-weight alloys by

simulating production processes and real-world conditions.

Photo courtesy of the Institute of Metal Forming, TU Bergakademie Freiberg.


Optimization/Regulation

11

Sold on the aftermarket, VPG’s TruckWeigh solution helping

truck operators optimize their loads while avoiding fines.

Transportation:Sensors help monitor truck loads for overload protection


Multi-Year Strategic Growth and Cost Initiatives Underway

Operational

Excellence

Organic

Growth

Value-Added

M&A

Strategy/Milestones

• Ongoing product and sales growth

• Investment in key growth

initiatives

• Manufacturing consolidations and

relocations

• Cost controls and increased

efficiencies

• Targeting high-value, accretive

acquisitions• Acquired Dynamic Systems, Inc. (DSI)

in Nov. 2019; DSI in the first nine

months of 2020 achieved Adj. GM of

~50%+ and EBITDA margin of ~25%+

45% 46%

57%

AdvancedSensors

ForceSensors -

OEM

TruckWeigh/VanWeigh

3-Y

ea

r S

ale

s C

AG

R 2

016

-20

19

Organic Sales Growth of Strategic

Initiatives 2017-2019

(CAGR)


8%11%

30% 32%

19%

Sales Adj. GrossProfit

Adj. OperatingProfit

Adj. EPS Adj. EBITDA

13

Strategic Growth and Cost Initiatives Driving VPG’s Financial Performance

3-Year CAGR 2017-2019

Amounts referenced for Adjusted Gross Profit, Adjusted Operating Profit, Adjusted EPS, and Adjusted EBITDA in this slide are non-GAAP and are adjusted to exclude purchase accounting adjustments,

restructuring costs, executive severance costs, and associated tax effects. Reconciliations to GAAP figures can be found in the Company’s press releases and filings with the SEC.


• VPG generated $100 million in cash from operations from 2016 through 2019

• Strong cash flow has funded key acquisitions of StressTek, Pacific Instruments and DSI

• On September 26, 2020, VPG had $89.8 million in cash and cash equivalents, with the majority held off-shore

14

Strong Cash Flow Generation

$11

$34

$70

$100

$5

$22

$42

$63

$0

$20

$40

$60

$80

$100

$120

2016 2017 2018 2019

Cash FromOperations

Adj. Free CashFlow*

Cumulative Cash from Operations

2016 - 2019

*Adjusted free cash flow is defined as the amount of cash generated from operating activities, in excess

of our capital expenditures, net of proceeds, if any, from the sale of assets.

$ M

illio

ns


Strong Cash Flow and Balance Sheet Support Clear Capital Allocation Strategy To Build Shareholder Value

Core Capital

Allocation Priorities

1. Invest in organic growth and cost reduction initiatives: e.g., new FTP manufacturing facility to support Advanced Sensors growth, other manufacturing consolidations

2. Bolt-on and transformational M&A: e.g., add high-quality complementary businesses to our platform which address common markets: e.g., add sensing technologies, expand our current portfolio, and move upstream to sensor data systems

The Company continues to consider other uses of capital on an opportunistic basis, such as share repurchases, debt repayment, and dividends

Bolt-on M&A financial target criteria includes mid-teen IRR and ROI hurdle rate (6 to 10 years) and EPS accretion within 1 year


Advanced Sensor Technology;The World’s Smallest, Most Reliable Strain Gage

VPG’s Advanced Sensors

feature smaller size, more

complex design, higher

resistance, lower energy

consumption, and multi-axis

measurement capability.

Potential new applications

for advanced sensor

technology include:

• Consumer

• Medical

• Industrial

• Cobots

• Pressure sensing

VPG’s state-of-the-art, scalable manufacturing and R&D center is

expected to be on-line in 2021; Sales grew from approximately $400

thousand in 2012 to $30M annual runrate in 1H20.


High Qtr

(1Q19)

3Q20

ActualQuarterly Financial Model

Revenue $76.5M $67.5M $65M - $70M $70M - $75M $75M - $80M $80M - $85M

Adj. GM% 43.2% 40.5% 37% - 39% 39% - 40% 40% - 42% 42% - 45%

Adj. Op. Margin 16.5% 11.7% 4.4% - 8.1% 8.1% - 10.7% 10.7% - 14.5% 14.5% - 19.1%

Adj. EBITDA ($) $14.6M $10.8M $5.8M - $8.7M $8.7M- $11.0M $11.0M - $14.6M $14.6M - $19.2M

Adj. Diluted EPS $0.61 $0.40 $0.14 - $0.29 $0.29 - $0.42 $0.42 - $0.62 $0.62 - $0.87

16

Quarterly Financial Model Reflects Operating Leverage in Normal Business Environment

• Organic results

• Does not include potential impact of F/X

Note:

• Our Quarterly Financial Model illustrates management’s expectations of results at different hypothetical levels of quarterly revenues, assuming a normalized business and

operating environment with no negative impact of the COVID-19 pandemic. There are no assurances that any of the results in the Model will be achieved.

• 3Q20 results reflect the impact on our business from COVID-19.

• 3Q20 cash from operating activities was $6.1 million.

• Adjusted Gross margin, Adjusted Operating margin, Adjusted EPS, and Adjusted EBITDA exclude purchase accounting adjustments, restructuring costs, executive severance

costs, and associated tax effects. Reconciliations to GAAP figures can be found in the appendix of this presentation or in the Company’s filings with the SEC.

Quarterly Financial Assumptions:• Assumes tax rate of 25%

• Model reflects the acquisition of Dynamic Systems, Inc. in November 2019


• Addresses the growing sensor market for

industrial technology applications

• Leader in diversified niches across broad set of

markets with organic growth drivers

• Effective business model and demonstrated

resilience during global pandemic

• Steps already in place to realize operating

margin and EPS leverage as markets and

economies recover

• Clear capital allocation strategy to drive both

organic and inorganic growth

Investment Highlights

17

PERFORMANCE THROUGH PRECISION

19

Thank You

19PERFORMANCE THROUGH PRECISION

PERFORMANCE THROUGH PRECISION

20

Appendix

20PERFORMANCE THROUGH PRECISION


($ in millions) Fiscal quarter ended

September 26, 2020

September 28, 2019

June 27, 2020

Net revenues $ 67.5 $ 67.4 $ 59.1

Book-to-bill ratio 0.95 0.96 0.95

Total orders $ 64.0 $ 64.4 $ 56.3

End-of-period backlog $ 90.8 $ 79.3 $ 92.9

Inventory turnover 2.38 2.60 2.20

Consolidated Results/Market Trends

21

($ in millions) Fiscal quarter ended

September 26, 2020

September 28, 2019 June 27, 2020

Test & Measurement $ 12.0 $ 16.2 $ 14.0

Avionics, Military, Space 9.2 5.3 6.7

Transportation 7.1 8.7 5.2

Industrial Weighing 10.7 13.2 8.6

General Industrial 3.8 4.7 3.6

Steel 9.4 6.8 8.8

Other Markets 15.4 12.5 12.2

Total $ 67.5 $ 67.4 $ 59.1

Financial Highlights Revenue by Market


Foil Technology Products Force SensorsWeighing and Control

Systems

($ in millions) Q3 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2

2020 2019 2020 2020 2019 2020 2020 2019 2020

Net revenues $32.9 $32.1 $31.8 $13.9 $16.2 $ 8.9 $20.8 $19.1 $18.4

Gross profit $13.5 $12.0 $13.3 $ 4.2 $ 4.9 $ 1.0 $ 9.6 $ 8.9 $ 8.8

Gross profit margin 41.1 % 37.3 % 41.8 % 30.5 % 30.4 % 11.6 % 46.2 % 46.6 % 47.6 %

Adjusted gross profit margin 41.6 % 37.3 % 41.7 % 31.2 % 30.4 % 19.6 % 44.9 % 46.6 % 47.3 %

Book-to-bill ratio 1.01 0.91 0.85 0.9 0.94 1.58 0.88 1.04 0.82

Total orders $33.2 $29.4 $27.0 $12.5 $15.2 $14.1 $18.3 $19.8 $15.2

Backlog in months 4.4 3.6 4.5 4.6 2.8 7.5 3.0 4.0 3.7

Inventory turnover 2.63 2.79 2.58 2.28 2.30 2.02 2.13 2.61 1.81

Segment Results/Trends

22


23

Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - Quarter

Gross Profit Operating IncomeNet Earnings Attributable to

VPG Stockholders Diluted Earnings Per share

Three months ended

September 26, 2020

September 28, 2019

September 26, 2020

September 28, 2019

September 26, 2020

September 28, 2019

September 26, 2020

September 28, 2019

As reported - GAAP 27,349 25,790 8,121 6,186 $ 5,598 $ 4,509 $ 0.41 $ 0.33

As reported - GAAP Margins 40.5 % 38.3 % 12.0 % 9.2 %

Acquisition purchase accounting adjustments 4 — 4 — 4 — — —

COVID-19 impact (22) (320) (320) (0.03)

Executive Severance costs — — — — —

Restructuring costs — 84 547 84 547 0.01 0.04

Less: Tax effect of reconciling items and discrete tax items — — $ (84) $ 80 $ (0.01) $ —

As Adjusted - Non GAAP $ 27,331 $ 25,790 $ 7,889 $ 6,733 $ 5,450 $ 4,976 $ 0.40 $ 0.37

As Adjusted - Non GAAP Margins 40.5 % 38.3 % 11.7 % 10.0 %


24

Reconciliation of Adjusted Gross Profit, Operating Income, Net Earnings and Diluted Earnings Per Share - YTD

Gross Profit Operating IncomeNet Earnings Attributable to

VPG Stockholders Diluted Earnings Per share

Nine fiscal months ended

September 26, 2020

September 28, 2019

September 26, 2020

September 28, 2019

September 26, 2020

September 28, 2019

September 26, 2020

September 28, 2019

As reported - GAAP 75,524 87,450 16,736 26,891 $ 10,669 $ 18,317 $ 0.78 $ 1.35

As reported - GAAP Margins 38.9 % 40.7 % 8.6 % 12.5 %

Acquisition purchase accounting adjustments 560 — 560 — 560 — 0.04 —

COVID-19 impact 536 123 123 0.01

Executive Severance costs — 611 611 — 0.04

Restructuring costs — 713 547 713 547 0.05 0.04

Less: Tax effect of reconciling items and discrete tax items — — $ 59 $ 80 $ — $ —

As Adjusted - Non GAAP $ 76,620 $ 87,450 $ 18,132 $ 28,049 $ 12,006 $ 19,395 $ 0.88 $ 1.43

As Adjusted - Non GAAP Margins 39.4 % 40.7 % 9.3 % 13.1 %


25

Reconciliation of Adjusted Gross Profit by Segment

Fiscal quarter ended

September 26, 2020 September 28, 2019 June 27, 2020

Foil Technology Products

As reported - GAAP $ 13,515 $ 11,970 $ 13,286

As reported - GAAP Margins 41.1 % 37.3 % 41.8 %

COVID-19 impact 159 — (39)

As Adjusted - Non GAAP $ 13,674 $ 11,970 $ 13,247

As Adjusted - Non GAAP Margins 41.6 % 37.3 % 41.7 %

Force Sensors

As reported - GAAP $ 4,235 $ 4,932 $ 1,038

As reported - GAAP Margins 30.5 % 30.4 % 11.6 %

COVID-19 impact 94 — 706



Weighing and Control Systems

As reported - GAAP $ 9,599 $ 8,888 $ 8,786

As reported - GAAP Margins 46.2 % 46.6 % 47.6 %Acquisition purchase accounting adjustments 4 — 41

COVID-19 impact (275) — (109)




Calculation of EBITDA

In $ (000), except percentages Years Ended

December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016

Net Earnings 22,188 23,646 14,345 6,404

Interest Expense 1,507 1,738 1,843 1,486

Income Taxes 4,145 10,344 6,170 3,199

Depreciation 10,082 8,926 8,685 9,312

Amortization 1,712 1,705 1,941 1,838

Impairment of indefinite lived intangible assets 2,820

Uk Pension settlement adjustment 673

Purchase acctg adj 1,254 91 586

Acquisition costs 443 494

Restructuring 2,293 289 2,044 2,667

Other (1,492) 624

Executive severence 611

ADJUSTED EBITDA 44,235 50,141 33,627 26,610

ADJUSTED EBITDA as a % of sales 15.6% 17.0% 13.5% 11.6%

26

Non-GAAP Reconciliation – EBITDA


Calculation of EBITDA

In $ (000), except percentages Quarter Ended

March 28, 2019 September 26, 2020

Net Earnings 8,243 5,598

Interest Expense 388 309

Income Taxes 3,117 2,109

Depreciation 2,446 2,426

Amortization 408 596

Impairment of indefinite lived intangible assets

Uk Pension settlement adjustment

Purchase acctg adj 4

Acquisition costs

Restructuring 84

COVID-19 Costs (320)

Executive severence

ADJUSTED EBITDA 14,602 10,806

ADJUSTED EBITDA as a % of sales 19.1% 16.0%

27

Non-GAAP Reconciliation – EBITDA

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