Littelfuse, Inc. ($LFUS)

All right. Good morning, everyone. Thanks for joining us this morning for the 2026 Littelfuse Investor Day. We're super excited to have everyone spend the morning with us and through lunchtime here in beautiful New York City. For those of you that don't know me, my name is David Kelley. I'm the Vice President of Investor Relations here at Littelfuse. We haven't met before. We would love to spend some time with you today. And for those of you on the webcast, by the way, thank you for joining us as well. My e-mail address is on the website, so would love to speak with you as well. A lot of familiar faces and a lot of new faces in the crowd this morning. So looking forward to starting the conversation or for many of you continuing the conversation here. Before we get rolling, I wanted to pull up the disclaimer slides for you to read here. These are, of course, available on our website where the presentation is also available. They're also filed with a presentation with the SEC as well. Before I turn it over to our team this morning, I really wanted to start with a quick snapshot and background of Littelfuse. It's an exciting time for us. The company was founded in 1927, so coming off on our 100-year anniversary. And you can see a few of the financial metrics here this morning. I won't get into them. But what really excites us here this morning is the market leader in safe and efficient electrical energy transfer, we're going to talk to you about our markets, our applications and most importantly, our customers. And just really, really excited to have the team walk you through so many of these exciting opportunities and hopefully give you a better sense of the Littelfuse brand and the value and the excitement we have for the next 5 years and the strategy we're going to talk you through here today. So on that, I'm just going to very briefly cover the agenda before handing it over to the team and give you a little bit of logistics on how the day is going to go this morning. Our CEO, Greg Heckman is, of course, is going to kick us off, walk you through the 5-year strategy, and then you're going to hear 3 of our GMs speak to those markets in that pie chart I was just showing you. So Peter Kim is going to talk about the exciting opportunities that we have in Energy Industrial Infrastructure. And then he's going to hand it over to Deepak Nayar, who's going to speak to computing, Communications and Diversified Industrials and really talk through some of the opportunities in areas like a data center or an aerospace and defense. And then we're going to take a little bit of about, let's call it, a 15-minute break, come back, and Dave Ruppel is going to kick off the second half session and walk you through some of the capabilities and opportunities that we have in the Transportation and Logistics market. Then we're going to hand it over to Karim Hamed, who's going to speak to our Semiconductor Technology business. And what's fascinating about Semiconductor Technologies is they sell into all of our end markets. So we're going to talk you through how we amplify our market opportunities with our semiconductor technology franchise. Of course, Abhi is going to wrap it all together and speak to the financial model and give you a sense of the playbook now through 2030. And then finally, Greg is going to close this out. Now we are going to have a Q&A session after the full presentation. So plenty of time to answer questions live here in the crowd. By the way, on the webcast as well, I believe there is a chat that you can ask questions. I will be up on stage, and we'll make sure we get through everyone's Q&A, whether you're, again, here in person or joining us via the webcast. Then finally, we'll have a -- what's described here as the leadership luncheon in the room on your left, my right. I would love for you to stick around for an hour or so. We will have product display booths and various team members that can speak to some of the exciting technologies we're working on and again, the value we bring to our customers. A lot of you were speaking this morning about some of these product opportunities. So again, looking forward to having you spending some time with our team. So thanks again, everyone. We're super excited to have you here with us this morning. And with that, I'll hand it over to our CEO, Greg Henderson.

All right. Thank you. Good morning. It's great to be here in New York City. Thank you all for coming. It was originally supposed to rain today, but as you can see, the sun is out and it's a beautiful day in New York City. So thank you for those of us -- those of you that were able to join us here today and also the people that are online for the webcast. So I'm really excited to be here to talk about the future and the growth strategy of Littelfuse. And it's really fitting, as David said, that we are here on the 100-year anniversary of the founding of the company, and in 1927, Edward [indiscernible] and his garage outside of Chicago invented the first back-stackingfuse. And that's because he was trying to find a way to protect his electronic equipment from the surges that happened on the early emerging electrical grid. And the reason that's really relevant to us today is that the 1900s was the boom years of the electrical industry from a perspective of energy demand and growth. And actually, if you measured the market growth based on the consumption and generation of electricity, those first 50 years, the 1900s through 1950 was double-digit growth. That was the boom years for the electrical industry. And a lot of companies like Littelfuse were founded around that time around the use and protection and safety of electricity. But interestingly, around the 1950s, it started to slow down. It was really the energy crisis of the 1970s that fundamentally changed the dynamics of the market. And it shifted the market from being one about increased generation and consumption to one about increased efficiency. And actually, for the last 50 years, we've been in this market trend of efficiency and not generation increase. And if you look at the developed world, the generation and consumption of electricity from like those 1980 and '90 through last year was basically a flat market. It grew maybe 1%. And if you consider the GDP grow 2%, 3%, it was basically shrinking relative to GDP. But companies like Littelfuse did very well in that time because there was a lot of benefits of the efficiency increase. What we could do with the energy we had was significant, and they were able to get benefits from that, and we were able to grow. But what's really exciting is that we're in a step change now in the market. And market analysts predict that for the next 5 years, it's going to be a 4% to 5% growth market. And so we have this massive tailwind for those of us that are in this electrical industry because the energy demand and consumption is going to go up 4x to 5x what it did over the last 50 years. We still have all the benefits we can get from efficiency improvements along, but that's a fundamental change. And this is driven by the energy demand of the data center and really the electrification of the world. And another key point that's made here is that there's a shift to DC-native demand. And DC-native demand is systems that are designed to take high-voltage DC right from the beginning. The first volume market to go to DC-native demand is EV fast charging. And so when you fast charge your EV, you plug in, that's typically 400, 800-volt DC native system. And you really can't fast charge if you don't do DC native because it's too inefficient to transfer that power without being DC native. And the next volume market to go to DC native is data center. Data centers are going to high-voltage DC. And estimates are that, that DC native demand is going to double over the next 5 years. So those are great market tailwinds for companies like Littelfuse that are a key part of this ecosystem. And the reason it's relevant to us is because we provide solutions for the safe and efficient transfer of electrical energy across this ecosystem. I like to say we have solutions that go from milliwatts to megawatts. If you take this chart, for example, you go to the bottom left-hand corner, we sell solutions that are about the precise connectivity of power in a wearable medical device so that it has power when you turn it on, but it use literally no power before you turn it on. All the way up to the top right-hand corner, where we sell solutions that are expectation systems for large generators, controlling the power that's put on the grid by a large generator and systems all in between. So we have a broad set of solutions across this ecosystem. Everything that uses energy pretty much has Littelfuse content. And the way we do that, the way we provide these solutions for the safe and efficient transfer of energy is with a really, really unique and differentiated portfolio. And this is a key part of our value proposition to our customers. We have a very, very unique and differentiated portfolio. And we're the only company who has this complete portfolio across protection and power solutions. It starts on the left-hand side with our overcurrent portfolio. This is the history of the company. This is fuses, which is the history of the company. But as you'll hear later from the leaders today, we do everything from very small surface mount fuses that go on a board to very large fuses that go in industrial equipment or data center power generation and everything in between. But we have other overcurrent technology as well. We have circuit breakers and actually, you'll hear Karim talk about some of the emerging capabilities of power semiconductors for overcurrent technology. In addition, we have a complete portfolio of overvoltage solutions. So overcurrent is about protecting. If you get a short, you don't want to have a lot of current goes. That's where bad things happen. That's sort of the original history of the company. Over voltage is protecting against voltage surges. And we have two key technologies here. We have a passive technology we call MOVs. It's a ceramic-based technology. But then we also have a key part of our semiconductor business, and you'll hear more about this later today, is our Semiconductor Protection Technology, which provides you very fast protection for surges and is a key part of our strategy as well. And then importantly, in addition to our core franchise overcurrent overvoltage, we have a lot of solutions about advanced protection and power solutions. And this is a wide array of capabilities from DC contactors, power semiconductors for switching, all the way to very advanced sophisticated system-level products like protective relays on the right-hand side, these are systems that are protecting grid scale power that came from Littelfuse and also from our recent acquisition of Basler. So we have this unique portfolio. It plays across those applications. And so if you look at that, we have identified the markets that we play in and the growth, and we talk about our markets being diversified. And actually, we -- earlier this year, we organized our go-to-market into three big market organizations, and you're going to hear from the three leaders of these is Energy & Industrial Infrastructure, Computing & Diversified Industrials and Transportation & Logistics. And like I said, across that ecosystem, across these applications, across these markets. And we've identified that the SAM we play in today is about a $22 billion SAM growing to around $30 billion by 2030. That's around a mid-single-digit growth. Our ambition, however, to take the company from $2.5 billion of revenue in 2025 to $4.5 billion of 2030. And that's about double the market growth. And the reason we believe that we can do that, and that's a double-digit growth is because of the position that we have, the focus that we have and the strategy. And in addition to driving revenue growth, we're also going to increase profitability from around $500 million to this $1.1 billion by 2030. And so now the key of the rest of this presentation for me and the rest of my team is to explain to you how we're going to do that and why we think we can get there. In some case, you might think that's an audacious goal, but we have a lot of confidence. And hopefully, by the end of this presentation, you believe as well, this goal is really going to be achievable by us, and we have confidence that we're going to get there. And the way that we're going to do that is through the strategy. And the good news is if those of you that have been following us, this is not a brand-new strategy. This is something we've been rolling out for the last year, we've been talking about. But our goal today is to really fulsomely reveal that strategy and how it's operating throughout the business. And there are three really simple strategic pillars. First is, about sharpened focus on growth opportunities. This is about making the right decisions about where we invest. It's taking a market and customer-driven approach, making the right investments in the growth opportunities and how we allocate our capital and our resources to grow. Second is about partnering more closely with our customers. We've done a lot of work. We'll talk more about this about how we go to market, how we partner with our customers. And we have a really, really unique capability because that portfolio we have is really valuable to our customers when they're developing next-generation solutions. And we'll talk about how we're changing the way we partner with our customers for next-generation systems. And then third is about enhancing operational excellence. This is about scaling best across the company. We have examples of great capability that we haven't always scaled uniformly across. And so that's also going to be part of our strategy. And that's about driving profitability and cash flow and consistency so that for these lead customers are developing these solutions, we can meet all their requirements. So I'm going to dive down a little bit and talk about each of these, and I'm going to start by talking about the strategy. So starting with the first priority, which is about sharpening our focus on growth opportunities. We did a lot of work as we identified the strategy to try to identify where the growth is going to come from in our business. And one of the key benefits we have is that we're a very diversified company. We participate across a lot of markets. For those of you that 5 years ago, everybody was focused on the automotive market, and we are very participated there. That drove a lot of technology that now is driving the data center market and tomorrow is going to drive a different market. So we looked at what markets are going to drive growth. And actually, we have identified a key part of our strategy is to make sure that we're participating as broadly as possible and leveraging our capability. And so we have two key parts of our strategy. First is about our core markets. These are important markets to us, markets that aren't necessarily growing as fast. Maybe the automotive market, people estimate might be about 1% growth. You heard that from Dave. But even though those markets are growing slower, we still think that we can have a sustained growth in our core markets of mid-single digits. And the reason for that is that we're going to make the right decisions in those markets. So these are markets like industrial automation, markets like automotive that may not be growing as fast as some of the markets like aerospace and defense or data center. But we still think we can grow because we're going to make the right decision. We're focused on the right things in those markets. And also, there are important architectural changes in those markets that are driving growth. For example, in automotive, there's -- even though EVs might have slowed some, there's still a transition across this market to higher voltage applications. And there's a transition in the vehicle to 48-volt architectures, whether it's an EV or not an EV. And those higher-voltage solutions require unique requirements. We talked about our over-voltage protection portfolio. We're going to design products to do that. So we believe we can grow, and we have a plan to grow mid-single digits in our core markets. But we've also identified three high-growth markets, and you'll hear the leaders of these markets also tell you about the strategies around those later today. And these three markets are going to drive double-digit growth for Littelfuse. And that's grid and utility infrastructure, data center and aerospace and defense. And you'll hear from Peter and Deepak, our strategies in those markets. And those markets are going to drive double-digit growth. And that combined is going to give us an organic growth in the high single digits. And Abhi is going to give you a lot more detail on the exact model for that when he comes up, but that's going to give us an organic growth in the high single digits. But as you know, we are a high cash generation company. We have a very good balance sheet. Abhi is going to talk about that more as well. We have a strong opportunity to do acquisitions. And so our strategy for acquisitions is also very, very aligned to our strategy around organic growth. And it's really quite simple. Actually, we have two key things we look for in acquisitions. First, we want to strengthen our capabilities around our core competencies. I showed you that first slide. Our core competence is our unique portfolio. If we have ways we can expand that portfolio to provide more solutions to our customers around safe and efficient energy transfer, that's the first part. And then the second part is we want to increase our exposure to the high-growth markets. So we're looking at how we can increase our exposure to high-growth markets. Our recent acquisition of Basler is a perfect example of this. On the left-hand side, we added core competencies around protection relays, expectation systems, high-power solutions, for the grid utility that really expand our portfolio. You'll see some examples of that in the product display later. But also 50% of their revenue is in the grid utility and data center market, which is higher than Littelfuse. So it helps increase our exposure. It gets us better access to customers, and that's an example of the kind of acquisitions that we're going to do. So that's priority one, which is about sharpening focus on where to invest, how we deploy our capital, focusing on growth. And between these two, that's going to drive a growth strategy for us of double-digit growth that Abhi is going to talk about in a minute. But priority two is about getting closer to our customers. And this is actually, I believe, possibly the single most important thing that we're doing that can really drive growth for us. And this is we've made some fundamental shifts in how we're approaching our market and our customers. Historically, the Littelfuse business our -- I showed you our portfolio of technologies. Our sales teams represented our product lines and not our customers. And so we had individual sales teams in those individual product lines trying to sell that portfolio to the customer, even though the customer was providing a solution that actually generally use solutions from across. So we started talking about this last year and actually went live with this model at the beginning of 2026, where we've now realigned our sales force from our direct selling -- where our sales team is now representing our customers and not our products. And actually, those three markets that I talked to you about, the three leaders are going to come up, we have three sales teams, one for each of those markets that represents the customers. And so this top 2/3 of our revenue, so this direct part of our business is about top 2/3 of our revenue, that's the customers we call on directly. And those top 2/3 are the names that you might expect. They're hyperscalers, chip providers, automotive OEMs, large industrial companies, customers. And it turns out that, that 2/3 of our revenue is about 1,000 customers. So we are calling those 1,000 customers direct. The other thing we've made in this change is not only are we enabling the sales force to represent the complete portfolio of those customers, but we've also got a lot more deliberate about what part of our business we call direct and then what part of our business we leverage our large distribution channel. Left-hand side, 2/3 revenue, about 1,000 customers we call direct. Then the right-hand side is about 100,000 customers. And this is where we leverage our very, very important channel partners that give us a lot of reach. There's no way we can cover those 100,000 customers. We get a lot of reach. It's a very profitable part of our business. And many of those customers sometimes are emerging customers that if they're starting to be successful, they move into the left-hand side of the chart. That's success for us. And so that bottom 1/3 is profitable. We leverage our distribution partners, and that's part of our growth strategy. So this strategy is new to Littelfuse, but it's not new to the market. And I can tell you out there visiting customers, the feedback for this is already positive. And we have a very, very high confidence that this is going to help drive significant growth. And the reason for that is that even though this is new for us at scale, it's not completely new to the company. Actually, back in 2020, the company made a decision to take a market leader in vehicle and grid scale electrification, and we applied this model. It decided, okay, this customer is important. This vehicle electrification is really, really important. We're going to put a dedicated team on. They're going to have the capability to sell the complete portfolio. And I can tell you that, that customer has grown 20% CAGR over that time. It went from an important customer to one of our top customers in the top -- of that 1,000 customers on the other side. But also really more importantly, we are actually in every single one of that customer's platforms, and they use the broadest array of our technology and portfolio. They're using multiple technologies from every single one of those columns I showed you on the first slide. They're probably using the broadest array of our technologies, where our average customer base, it turns out is using maybe 1 or 2 of our technologies as opposed to a broad array. So there's a huge opportunity there. Secondly, I'll say that last year, because we saw how important data center was, we put this model in place early last year for data center. So in 2025, early in the year, we went to this model for data center because we knew this was important to us. And even just in 2025, we were able to double our design wins in data center versus the year before. So we have confidence this is going to work. It's something we've done before, but not at scale. I can tell you our customers are really excited about this. Many of them are like, well, finally, you show up this way for me. And in the short term, it's about us driving more content. But in medium to long term, it's about partnering with our customers. This drives our R&D strategy. This creates a differentiated opportunity. And you'll hear more about this from the rest of our team on the way we're leveraging that. So that's priority two, how we go to market with our customers. And then priority three is about scaling operational excellence. So we have really best-in-class capability in this company. We ship millions to billions of parts depending on which part number. We ship a lot of product every year, and we have really, really best-in-class capability. But we haven't necessarily scaled that across the company to the way that we need to and the way that we want to, to get to our $4.5-plus billion revenue. And so we have put in place a program to really try to scale operational excellence. You'll hear more about this from the other leaders and from Abhi later. But it really is three simple things. First, it's about elevating our operational mindset. It's about getting consistent uniform practices across. This is really going to be our operating model. It's about leveraging best practices, standard business reviews, standard factory monitoring in our factories, it's back to basics of safety, quality, delivery, cost and inventory, uniform approach, standard metrics to scale that across and make sure that we have -- when we have best-in-class, we don't just have best-in-class in a few of our factories or businesses, but everywhere across. Second, we're a lot more disciplined about rigorously analyzing our portfolio. So we're going to look all the way across the portfolio and say, "Hey, we have high standards on what the performance and profitability of the business should be. And in parts of the portfolio that don't quite meet those standards, we're going to rigorously focus on improving them. This is very related as well, I think the priority one, it's about where you focus and how you play and why you win. But we're going to drive optimization of our portfolio and our footprint to make sure that we're maximizing utilization. You're going to hear specific examples of this. Dave is going to talk a little bit about this in the Transportation business. Karim is going to talk about this in our Power Semiconductor business. This is going to drive a lot of profitability. And finally, it's about scaling businesses and processes, especially, for example, using AI. So like many enterprises, we're starting to use AI more inside of our operation. In our operations, for example, we're using AI in our logistics on helping us figure out how to reduce logistics costs, especially in the current world where energy prices and fuel prices and disruptions happen, that's an area. Another area we're using it in our operation is in automated inspection. So we have inside of our factories, we've started using automated inspection. But the goal here is to take this AI-enabled productivity and scale it more uniformly across the business. So you'll hear more about that later. And Abhi is going to give you some specific information about how we believe this is going to drive performance and cash flow for the company. So those are the three strategic priorities. First is about sharpen focus where we play. Second is about changing the way we partner with our customers, getting closer to our customers, selling our complete solution and our new go-to-market model, and the third one is scaling operational excellence. And we have high confidence that those things are going to drive us to the model. And you'll hear about that from the team today. But before I hand it off, I just want to zoom back out to the very beginning and tell you why we believe we have a high confidence in the growth strategy. First, we're at this transformational shift in the market. We're at a once in a 50-year change where the electrical generation and consumption is going from 1% growth to 4% to 5% growth. That's a huge tailwind for our business that's going to drive a lot of growth. Secondly, we have a very, very unique capability. I showed you our portfolio. For those of you that are here in the room, you're going to be able to see some of the product displays later. We have a very, very unique capability. You're going to hear the rest of the team talk about that and explain to you why that's differentiated and also how it matters to our customers. And the third one is we have the right strategy. Those three priorities, as I said, we have confidence we're going to get there. And so we have a high confidence in our growth model. And now I'm going to hand it over to the rest of the team. And hopefully, by the end of this presentation, you'll have as much excitement as I do about the opportunity we get. And so with that, I'm going to hand it over to Peter Kim, who's going to talk to you about our strategy in the Energy & Industrial Infrastructure market.

Good morning. My name is Peter Kim. I'm the Senior Vice President and General Manager of our Energy & Industrial Infrastructure business. I've been with the company for over 20 years, been leading this business for over 7, but I'm even more excited about our strategy team and success going forward. And I'm going to talk about that throughout my presentation. So throughout my presentation, there are going to be critical things that I'm going to touch base on is about our strategy and success. One is just the macro around energy demand, that's increasing. That increase in demand is driving investments around things like electrification, modernization, renewable. Greg talked about DC-native. All those things create challenges, challenges around how do you create more high-power efficiency safety, reliability. Those challenges create tremendous opportunities for us. Opportunities for us, as Greg mentioned, we have the widest, broadest offering in overcurrent, overvoltage circuit protection, especially in high-power application and switches and modules and system level, combined with our technical expertise, we are best positioned to solve those challenges and grow with our customers long term. So I'll start out with a snapshot of our markets in our EII markets. This represents about $600 million today. Over the years, we've been really growing around the concentrations around OEM business. Greg talked about our OEM business, direct business, but I want to highlight, it's not just OEM. We work with leading OEMs, global OEMs in our targeted vertical markets. As an example, Panasonic Energy is a leader in battery backup energy for data center infrastructure. Duke Energy is a large-scale utility company, actually came from a Basler acquisition. Our markets are grouped into two areas: industrial and energy infrastructure. In the industrial, there are diverse subverticals, including automation to heavy industry like mining and oil and gas. But the theme across all are the same when I talk about megatrends, higher power, more efficiency, reliability. Then we get into the Energy infrastructure, even though it's less than 10% of our overall company revenue, it is our fastest-growing vertical market segment. Historically, we've been very successful around battery energy storage system, renewable. And more recently, with the acquisition of Basler, we are now a significant player, even more in the grid utility space. This vertical market represents what we call our HGO, high-growth opportunity for the company. So what I want to talk about is the profile of the growth around these markets. So this represents about $7 billion of market size. And the blended growth rate is we're projecting to be in the market growth rate in the mid- to high single digit. Our strategy that we laid out, our competitive advantage and our successes and the momentum we're gaining, I am confident we can achieve double-digit growth over the next 5 years. Furthermore, the markets below represent what we call our high-growth opportunities, and this is where we are putting outsized focus and investment to accelerate growth. As an example, the recent Basler acquisition has a direct impact and contribution to our accelerated growth in the grid and data center infrastructure. Our organic investment in high-power applications such as high-power DC circuit protection is a leading technology going into battery energy storage system and renewables. So overall, it's not just about the market dynamic, but our position not only to grow with the market, but far accelerate above the market growth rate makes this really, really exciting. So how are we going to achieve that? And why do I feel so confident about that? I want to spend a few minutes about my own personal journey engaging with customers over the years. The first is OEM relationship. What does that mean? Years ago, I visited a large automation customer. And at that time, our predominant business -- primary business was a power semiconductor or an industrial drive application, which is very significant for their system. Our engagement over the years, our deep engagement gained credibility where we had access to other opportunities in switchgear, industrial power supply, pulling in the breadth of our overcurrent overvoltage solutions. That's an example of the level of engagement with our customers and opportunities that we're able to achieve over time on greater programs. The next is tailor solution. We have a building infrastructure customer that are leaders in air handling systems for commercial application. We actually have a very critical solution designed in. It's an electrical mechanical relay. But the customer came to us and said, how do we drive a more accuracy and longer life cycle? Well, we have a semiconductor technology, we have embedded software technology, and there's a new product that we launched called a solid-state relay, and that was designed in that met the customers' need for the future growth. And that's an example of our ability to tailor solution because of our breadth of our capability, but also working with customers to understand what their future trends are. The last is product performance. And I talked about visiting customers in 5-plus years ago, visiting a utility solar customer. And at that time, the system level at that time was 1,000-volt DC. We're actually leaders in the market on 1,000-volt DC fuse. And at that time, they were trying to pursue how do you drive more power, more energy to 1,500 volt. But that early insight gave us an early stepping stone to innovate a 1,500-volt fuse. Now they're coming to us and saying, "Hey, the market is going to 2,000-volt DC. Well, because of that access and because of our innovation capability, we are leaders in the market and first to market in those type of solutions. Product performance is not just about higher power and the performance of the product, but our engagement with customer and to have that insight and have early innovation and investment to drive growth long term makes us succeed. So overall, combined, this is why I am so convinced we are able to achieve that double-digit growth. The next few slides, I'm going to talk about the market dynamic and a success story around our Industrial & Energy Infrastructure. So these megatrends around modernization, what does that mean? And what does that equate to in terms of investment? We see in the next 5 years, double in capital expenditure. Where is that investment going? It's going into things like electrification. Why is that important? It drives efficiency. It drives smarter solutions. It drives connected solutions. What's really exciting is it creates a lot of opportunities for us. How? This is more content. This technology trend drives more content, but it's not just about content, our engagement with customers at a solution level, we will collaborate them with them on the breadth of our solution to optimize their system-level solution. That's what helps us pull in the opportunities. That's what makes us sticky. Furthermore, we know how to replicate that through other customers throughout the vertical markets. I got an exciting success story I want to share, it is a global automation customer, and this is specialized around manufacturing environment. Same thing. They want to drive more efficiency, more power, smarter solutions, but they're faced with several challenges. One is the complexity and speed to market. We have some unique solutions that we designed in that really help drive value and tremendous opportunities for us. Starting with we are one of the few companies in the world that has the breadth in circuit protection to power semiconductor. We have a product, it's called a power stack module that integrates both capabilities for high-power application. That was essential for our customer. Furthermore, we have a protective relay that we designed in. And what a protector relay does, and you'll see that when you go out in the display is that it monitors and detects potential faults in the system. We have a proprietary firmware that can detect sensitive faults accurately without nuisance stripping. What does that all mean? Uptime for our customer system. These are a few innovative examples on how deep we engage with customers to help them on measurable benefits, efficiency, safety, reliability. For us, we get to work with them on our innovative solutions that are large-scale opportunities also can be replicated to other automation customers. So I'm going to move on to our Energy Infrastructure business. Again, this is one of our fastest-growing markets for the company. Our HGO, our high-growth opportunity. And when we talk about energy demand, in the next 5 years, cumulatively, there will be trillions of dollars of investment. Where is that money going? Areas like hydrogen power to renewable, renewable to DC native, all driving higher power, but they have to work together to support that energy demand, which is what we call grid flexibility. Our opportunities are significant around high-power applications. I talked about our high-power DC circuit protection as an example. In addition to that, our recent acquisition of Basler, their leading solutions in power systems and services are critical for our utility customers. Those are a few major examples why we are becoming a more significant player in the Energy Infrastructure markets. So a success story that I want to show a very exciting success story is I talked about visiting a solar customer. Well, solar energy, it's a DC energy generation. Distributing that is very complicated. A battery energy storage system storage and energy, distributes that when the power is needed. And overall, renewable is part of the overall grid network and the grid flexibility. But I want to talk about a leading European-based battery energy storage system customer that we work with. And they're faced with a significant challenge. It's a simple but yet large challenge. How do you get more power into a system in the same footprint, very challenging. We have developed a very unique solution, a high-voltage DC fuse, 1,500-volt DC in the smallest form factor in the world, first to market. Not only that, we coordinated that with our power semiconductor to optimize our customers' system. That helped meet their pursuit, the goal of higher power, but also our solutions is the most flexible where they can go modular solution as they even scale going forward. That type of engagement and credibility is bringing new opportunities. The Basler acquisition also has a very specific protective relay that's applicable for battery energy storage system, and we're in active discussion and engagement with that new opportunity, and that's how we're growing. This is a significant space, significant customer, enormous opportunity for us, and we are able to also replicate this to other battery energy storage customers. It's a very exciting one for us. So what I'd like to conclude is this, is the market dynamic where we're targeting in our strategy is very exciting. What's more exciting, it's our success around our strategy to outpace market growth. The challenges to meet modernization, electrification, renewable are all challenging, but those are great opportunities for Littelfuse, and we are best positioned to support that. When we laid our strategy, combined with our competency, competitive advantage, and I share some few examples of our success stories, and we have many of them, prove that our strategy is working. And that's why I am convinced we can execute that double-digit growth over the next 5 years. I'd like to thank all of you for giving me the opportunity to take the time to share our strategy and the growth. And now I'd like to turn it over to Deepak Nayar.

Thank you, Peter. Good morning, everyone. I'm Deepak Nayar, and I run the CCDI business. And I've been in Littelfuse for about 20 years. And prior to that, I actually worked for [indiscernible] Electronics and also International Director Power. And I've done R&D, new product development, lots of different functions in the last 15 years, sales and marketing and general management. So in the next 20 minutes, I'm going to give you a background about our business, our growth drivers and how we're going to execute and be successful. Starting out with some key messages. We are in a very extraordinary phase of growth right now, I would say. Greg talked about the electronification, electrification megatrend, that's driving growth for many different vertical markets that we play in. And within that, aerospace and defense and data center are doing really well. So I'm going to cover those in more great detail. At the same time, the architectures are changing. The system architecture for customers are changing, not incremental, but step function. That means we need more complex solutions for them, and we are working with the customer very closely for that. And then we've also invested pretty heavily in the go-to-market as well as in our NPD, so we can take advantage of the changing landscape right now. So that's a little bit of a background where we are right now. And then I'm going to give you a background on the business -- snapshot of the business next. So this was about a $1.1 billion business last year, around 45% of the company. And the main segments or markets that we work in are out here. So we have data center, which is a big one I'll talk about, diversified industrials, I'll talk about all of these later on. Consumer electronics. Consumer electronics, things like electric toothbrushes and power tools and things of that nature that fall in this area. Building and industrial control is another very good area that we play in today. Building control, if you look in this building, things like the dimers, anything in this building that has electricity connected to it, we probably have a product in that gadget. So we really have a lot of products in this area as well. Now we -- 1/3 of our revenue comes from leading customers. These are about 100 customers, let's say. And these customers will be names of this kind here, the leaders in their field. And what happens is that we are very close to these customers. We send our design engineers to work with their design engineers to develop new products. A lot of our new products come from really the leading customers because they set the standard for the rest of the industry. And so what happens is when we develop new products with these guys, we are very tight for them. Those new products eventually work their way into the emerging customers and the broad customer base that we have, 50,000 customers or more. And I'll talk about that later on. So this is a little bit of how we work and what the business looks like. Now how big is the business and how big is the market? It's about $8 billion available market to us and growing to about $12 billion, and that's about an 8% CAGR. And that's a mixed number. That's a number between some growing at 3%, 4% and then data center growing at much, much more than that. I'll tell you about that. So you mix it all up, it's 8%. But we think -- we know we will actually do double digits. And I'll tell you why we'll beat the market. We'll do low double -- we'll do double digits because we have some really interesting competencies, some core competencies which are very, very good. Starting out with a very broad portfolio of products. So when I say broad, what I mean is it's wide and deep. Why is all the functionality that we have. We have over voltage, over current, [indiscernible] protection, switching, all kinds of things we have. And within each of those, we can give you a very big, deep different ratings or form factor. You want surface, pond, you want carpet, you want large, small, we can do it all. And so what that does is when my design engineer sits with the customer's design engineer, we can pick up 5 or 6 sockets on the board right away. And that is a real advantage for us. It's a very efficient sales call. It's a real advantage for the customer because he's dealing with one supplier, not 5 or 6 different suppliers. Also, these solutions have to be sometimes coordinated. So the overcurrent and the overvoltage need to work together. So when that is needed, we can provide that combination, which is a lot easier for the customer than him to go find somebody else to do it. So that's a very powerful thing we do. My apologies. Customer collaboration. So Greg mentioned, we changed our go-to-market model. We've added a lot of resources here, and we are very, very tight with the customers right now. So we are working with them on their next-generation designs. Now below that product portfolio and when we work with customers closely, we have some great technology. And what that technology is things like we're good at automation, we're good at simulation, we're good at material science, metallurgy, element design. So when customers come up with problems for us, we have great solutions based on our technology. We have a lot of IP, a lot of know-how. So what happens is if a customer says he wants a lot of power in a small package, we have to look at what kind of ceramic we use, what kind of filler we use, make sure there's no arcing, make sure the product is safe. And we pull all those resources together to come up with a really good product. And what the name of the game today is more power in a smaller package. And we are very good at that. We are probably the best at that. And so what happens is when a customer has a problem, we get the first call. We get the first call to go solve the problem. And that is a really good position to be in. So very proud of that actually. So with all of this that we've been doing, we are pretty confident that we can beat that market growth number. Now what I want to do is talk a bit more detail about data center and diversified industrials. I'll start with the data center. This is an incredible market. I've never seen anything like this in my career in terms of how it's evolving. And if you look at this here, what we've done, this is a typical ecosystem for data center, and we've broken out between different areas. There's a gray zone and a white zone. So the white space is all the electronics that goes inside the data center and the gray space is all the power that comes into the data center. And you know what, we play in all of it. We have products in every one of these buckets that I'm showing you here. So when you guys go outside and look at the booth that we have, we'll show you the examples of everything. The other thing I would say is that we are really good at solving problems. So if you look at the memory module, we are actually selling an 0402 fuse, which is so small, you can barely see it. It's 50 watts and 2 amps. And then we have a fuse out here in the UPS, which is 2,000 amps, is the size of a shoebox and weighs 20 pounds. We can do the entire architecture for protection. No other company can do that. And so when we work with the hyperscalers, this is what they love about us. So we are very prepared for this market. How big is the market? The investment -- you all heard this news, $6 trillion in the next 5 years, $1 trillion this year alone is being invested in data centers. And a way to look at how that translates to SAM for us is to look at the power consumption. So the power consumption is growing by about 15% CAGR right now. And also, it's evolving to higher power, higher voltages. So that architecture is changing a lot. And so what we are saying is that we will get a lot of content uplift as it happens. The reason for that is if you look at the boards that were designed 3 years back and are in production today, and to what's being going into production now, the power consumption is about 5x what was [indiscernible] same socket, 5x more power. We have developed solutions for those same sockets at 8x to 10x selling price. They are bigger products, but the selling price is 8x to 10x what was from before, power consumption 5x higher. That's an incredible way to do it. And what I just explained was the first round of uplift because it went from 72-volt to 400 volts. The next round is coming where it's going to go from 400-volts to 800-volts over the next 24 months. And we are working on that with our customers right now, trying to come up with the right solution. So if we do this all right, which you know we will, what does that mean for us? What it means for us is a growth between 25% and 30%. Market does 15%, we are looking at 25% to 30% growth. And this is the most incredible opportunity we've seen in a long time. So I want to give you an example. We are working with a hyperscaler right now. And what we do very well is that we started working with one portfolio, but we're also working with the entire ecosystem in terms of how they operate. So they have design centers in 4 or 5 locations in the U.S. We have people -- design centers in Asia and ODMs and OEMs in Asia. So we coordinate that whole thing. So when we do a customer collaboration, we are working across the entire ecosystem of the customer. And right now -- and also, we put a focused team on it. So these are big customers, important customers. So we have dedicated key account managers, R&D team and so on, focused on this one customer, supporting them. When we get that call, we are there to support them right away. And so today, this customer, they like us because it has a best-in-class performance. We have a great brand, good reliability. And for us, we are selling 20 different solutions, and this customer will grow 3x over the next 5 years and could be about $100 million customer for us, a single one in the data center world. So next, I'm going to talk a little bit about the diversified industrial area. So over the last 10 years, we've created a tremendous brand in the industry. People trust our brand. We have one of the best circuit protection providers out there. And with that brand, we've also created tremendous print position. By that, I mean we are on the bill of materials of the customers yesterday, today, tomorrow. We are on the bill of materials as they spin the design, we're always on those bill of materials, they trust us, and that's a brand we've created. So it goes from design to design. Now we work with the leading customers in this area. because once you work with a leading customer, you get a reference design done. The next 30, 40 smaller customers, they follow the same design, and that's the way we've operated. So -- but -- and a couple of things, I'll talk about aerospace and defense in the next slide, but medical is one area we also focus on as a submarket here. So I want to give you a couple of examples. So in medical, hearing aids, high-end hearing aid, I'm wearing one of those. We have product in that. Second one would be things like insulin pumps. If somebody got diabetes, they need insulin pump, we have product in that. People are getting surgery, now they do a lot of minimally invasive surgery, and they have these instruments in there, which are very powered small instruments, endo-cutter, they are call. We have products in that. And my favorite is the defibrillator, a long word, defibs. So defibs are being made accessible to the rest of the world everywhere because it saves lives. And inside the defib is one of our high-power IGBTs. Without the IGBT, the defib will not work. It's an enabling technology. So I would say our IGBT is the heart of the defib. It's such an interesting product line. So some examples there. Now what I said was we work with the leading guy, we get the reference designs done, but then we work with our channel partners. And these channel partners will then take these products with the 50,000 customers that we have around the world. When we do the new product development of the leading customers, we do the same thing. We introduce those through these distribution partners in the rest of the customer base, but that's how it gets proliferated around the world. So they are very, very important to us. And who are these 50,000 customers? If you go to any show, go to the CES, Electronica, Computex or walk through Best Buy, every product in there is a target customer of ours, either we have the customer or we get the customer. But all of this is our customer base. So that's where -- it's such a great product and everybody needs it, our circuit protection products. So that's where these 50,000 customers come from. And it's a nice high-margin business. I mean it's -- these customers will buy $50,000 a year, $25,000, $100,000, but it's on the lower end of our scale. Margins are fantastic. So this is the most profitable part of our business today. The one that we really take care of, we focus on it as well through our distribution partners. So I'm going to talk a little bit about aerospace and defense. Market is growing about 15% today. But if you look at the history over the last 50 years, even when it's not going that high, it's 6%, 7%, 8%. I mean it never goes down very low. And with the geopolitical tensions right now, it's a lot of defense spending happening. So U.S. is going to spend a lot of money. NATO is being pushed to spend a lot of money, so they're spending money now. The U.S. is going to build 300 new ships. Space is getting commercialized in that the low earth orbit satellites, which used to be a few hundred a year, now we have a few thousand a year that are being installed. We have product in all of these. And what's very interesting about this is that the architectures are changing here as well. So these guys also need power-hungry weapon systems, long range, very high power, which means higher DC type applications that Greg had talked about. So what we are doing with data center, the same kind of products can also be used here. So we are basically leveraging our data center expertise also in this ADS market, and it's doing quite well for us. So what we have said is that we do need some targeted investments here, get a thermal portfolio for this market as well as a better customer reach as well. So I want to give you one example here. So we've worked with a rocket maker out of the West Coast. And we started with one product, which was the TVS Dioda products. But as we started working with the customer and we brought a lot more attention to it, got more of an R&D engineer there to talk to them, we eventually start to get a lot more of our products designed in. And also, we work with their ODMs, they are people who make products for them. So having done all of that, it's -- we've become a reliable supplier to the customer after 3 years of work. And having done that, we think -- we know actually on this one, our revenue will probably grow 5x. This could also be a $30 million, $40 million customer for us within 5 years or shorter. Slightly longer as this market goes a bit slower, but we'll get there. So a couple of examples I've shared with you. This is just one example. We do the same thing with other customers as well. Same thing with data center, the hyperscaler I talked about. We are working with all the hyperscalers exactly the same way. So in conclusion, -- it's a great market opportunity. And we have the technology, we have the IP, we have the product. We are ready for it. And I would say I've been in this industry a long time, maybe a very long time when I look around here. I've never seen such an exciting growth opportunity ever until now. It's just tremendous right now. So we're all ready for it. We're going to nail it. So thank you for your time. I'm going to give it to David.

All right. Thank you, Deepak, and thank you, everyone. We're going to take a brief 15-minute break. So we're going to start back up again at 10:15 Eastern Time for those of you listening on the webcast. Just so you know, bathrooms on the left, refreshments and snacks are on the right here. Thanks, everyone. [break] All right. Thanks, everyone. Welcome back. We're going to kick off the second half of the presentation. Just a little bit of a background. We walked you through some of the exciting future opportunities in EII, CCDI. Now we're going to follow the flow of electricity to the transportation market. And the gentleman who's going to follow me here, Dave Rupel, is going to walk you through the transportation and logistics opportunities, and we've got a lot of exciting things going on here at Littelfuse. So with that, I'll pass it on to Dave. Thank you.

Thanks, David, and good morning, everyone, and thank you all for being here. As you stated, my name is Dave Rupell. I lead Transportation and Logistics. I joined Littelfuse in 2024. So I'm one of the newer people here in the organization, but I'm very excited to be here. I mean, I think the transformation going on within Littelfuse and the opportunity we have in the transportation and logistics space truly is extraordinary. Greg mentioned, look, when you look at the surface, 1% growth rate and everyone goes, okay, they're not going to see a lot of vehicle production, maybe not as much opportunity as some of the more dynamic markets that we saw with Peter, that we saw with Deepak. But when you dig a little bit deeper and you see how we can leverage our global leadership position along with the global trends of electrification and functional safety, you'll see that we actually do have a lot of opportunity to outperform market. And when I talk to you about our approach and our change in focus and approach, not only can we grow above market, but we can sustain continued profitability improvement along the way. So I'm going to spend some time talking about how we'll do that. Two things will come out as we talk about these key messages, focus and being much more proactive. This has been a shift for the transportation and logistics space and business. And it really began by being much more strategic about how we segment our markets, really looking for areas within passenger vehicles, within commercial vehicles that are growing faster than the broader market. So while transportation in total is growing at 1%, when you dig a little bit deeper and you look and you see what's going on with robotics, when you see with material handling, recreational, off-road, many of these are adopting electrification, moving to EV much faster. And even within some of our core spaces and markets like passenger vehicle, the change in features and functionality and functional safety are driving growth in content even if you're not seeing growth in vehicle production. So we are really well positioned to be able to support that. And we've also changed our approach. You've heard throughout the presentation talking about how we engage with our customers. And we are doing a much better job engaging early, deeply in building technical partnerships with our customers. We're no longer just stepping back and waiting for customers to come to us and say, "Hey, we have this build-to-print opportunity," which we know will be decided largely on price. By getting in early, by really working with our customers, understanding their jobs to be done, the problems that they need help solving as they evolve and introduce their new platforms, we are very well positioned to drive those specifications and take a system-level approach, really looking across their entire architecture to say, how can we bring this broad capable portfolio of Littelfuse to be able to support and solve those problems. And really, we talked about multiple technologies. You're in a much better position to integrate more components, more parts and integrate them into systems that truly bring value to our customers. So it no longer becomes about price. It becomes about how we can help support our customers and drive overall value within their platforms and their life cycle. And then finally, a big component of this within transportation and logistics is how can we support this change in approach and do it profitably. We've really made some great strides in driving profitability improvement. And then the way we're doing is coming back to those 2 things I mentioned earlier, much more focus, making sure we're working in the right markets with the right customers, right applications, not trying to be all things for all people, but really coming together and say, where can we deploy resources in a way, reduce our complexity and ensure we generate the highest return on investment that we possibly can. It's about doing more with less, and we're going down that journey. So again, Strategy is simple for T&L. It's about being more strategic about where we play, right markets, right customers, right applications. It's about engaging early, truly understand our customers' needs and how we can help solve them and bring value to them. And then ultimately, proactively designing our organization, our structure, our processes and our approach to be able to serve them effectively and efficiently. Let's take a step back and kind of look at T&L overall, transportation and logistics. We're approximately 30% of Littelfuse's revenue when you look at 2025 or around $700 million. And again, in passenger vehicle, we're working with the leading global OEMs, Tier 1s, commercial vehicles, OEMs, a number of suppliers across trucking, ag, construction and some of these others. When you think about warehouse automation, robotics, some logistical areas, recreational vehicles, power sports, we have kind of diversified where we're playing, looking for larger growth opportunities beyond this broader horizontal that's only growing at 1%. And I think the most important change in our approach is when you take a look at how our customers are broken down. So you have about 27% that fits in this leading category, 40% in what we call emerging, which is growing customers within our portfolio. But then you have this broad 33% or 1/3 of our customers that represent a high level of complexity, both in the interactions, the transactions, the SKUs. And one big shift that we've made that I think is really important is Deepak talked about how strong our distribution partners are, and they really are. They've been great for us. And in the past, we were really diverting our focus across this almost equally. That was an issue. And what we've done now is we are leveraging our distribution partners. We are reducing our complexity. We are rationalizing our portfolio through price or through saying, "Hey, we want distribution, you can take these customers on so we can direct the resources that were focused on that bottom 1/3 of the business and redirect them to our leading customers. And that's a big reason why we think we can deliver growth above market. It's because, again, we're getting with these leaders, and we're meeting with them, not just on a transactional level or a procurement level, but getting deep relationships at the technical level, engineer-to-engineer relationships, looking at their future platforms and being highly proactive to ensure we are well positioned to bring the full capability of our portfolio to bear. So once again, 1%, not that exciting, but we are confident that we can achieve mid-single-digit growth, adopting and utilizing the approach that I just described. That being said, we still think now there's some rounding involved going from $7 billion to $8 billion, but the reality is, once again, through better focus, through better engagement with our customers and through leveraging our resources more effectively, ensuring we're driving productivity, utilizing, as Greg mentioned, AI in areas to automate critical but non-value-added actions, we can ensure that we have the right focus on our customers to be able to deliver that mid-single-digit growth rate. We also have some really great competitive advantages. you step back, we were a leader and are the leader in low-voltage protection products across passenger vehicles, and we do a lot of great things within commercial vehicles around power distribution, around switching. And frankly, our brand is well known across both of those broad markets. And that's great because now as we're shifting our approach to this early engagement, they know that we have a history of reliability and performance. And that opens the door to us to really get more of these deep technical partnerships that lead us to be able to really help support platform growth and growth above market. And then through that collaborative relationship, we can look across not just the products that are made from a transportation perspective, but across all of Littelfuse and say, okay, looking at the system architecture, now we can look at the full portfolio and integrate solutions that can support our customers' needs. So it's no longer trying to sell components through an indirect channel completely. It's like, okay, we want to be able to help you, tell us your problems, we're going to help you solve them. And then through our deep understanding of our customers' needs, the jobs to be done, our understanding of technology and the evolution of the markets, we're in a great position now to really structure, organize and execute our business in a way that we can sustain this profitability improvement that we've demonstrated over the past several years. So talking about electrification and functional safety. So let me just spend a moment on that. Some of you are reading articles within automotive that's saying, hey, look, EV is slowing down in Europe and North America. And to some degree, that may be true. But you also see higher rates of adoption, obviously, in China, other parts of the world. But the reality is we are extremely well positioned and electrification comes in many different forms. And I'll give you an example. I go back to -- I'm like Deepak's data, I'm kind of getting older and have been around probably longer than I want to admit. I remember driving my parent's car, there was no electric windows. You would sit there and you crank the window down. You'd have to move the seat up and you'd have to do the back. Yes, someone can relate to what I'm talking about, your HVAC player would blow a fuse about every other time. Some of you may not even know what an HVAC player is. There are no touch screens. The most only place you could get power was from the cigarette lighter. A lot has changed in vehicles. And if you look at passenger vehicles with multiple touch screens and all the different features and functionality, everything is electrified now. So whether it's an internal combustion vehicle or whether it's a full electric vehicle, they're requiring a higher degree of power, requiring more of our products to be able to support those systems. And that's what's great about it. Regardless of the speed of transition and regardless of the region, we can support it because we have a global footprint, and we have broad capabilities across low, medium and high voltage. So again, really positioned well from an electrification perspective. So where is functional safety? So functional safety comes in a couple of different forms. Back in the old days, again, if I dropped that HVAC while I was driving, I'd go off the road because there was no lane assist that kept me driving or that would stop before I ran into Derek in front of me. So I mean, these are components of functional safety, but there's other things behind the scenes that we don't even recognize. We can't have something fail within a vehicle like say, a sensor on an accelerator. If that goes bad, you don't want the accelerator to go out of control and then you're doing 150 miles an hour down the freeway or through New York smashing into things. So there's redundancies built in, in these safety systems that we're not even aware of to ensure that we can protect the vehicle, the capabilities, the functions of the vehicle and the passengers. And that's a big component of what functional safety is. And that's where you see this dramatic growth. All of us see this every day in the cars we drive and the vehicles we ride in. And frankly, when you look on the commercial vehicle space, they're moving even faster adopting electrification, and they're incorporating a lot of these features and functions that were started in passenger car into these commercial vehicles. So once again, these are key drivers for us. And by focusing with those leaders who are emphasizing this and adopting it faster, that's how we can win and outperform the market. And this go-to-market and operational mindset optimization is key. Again, as we grow, the intention is not to scale headcount and do other things. We're being much more focused, which allows us to deploy resources to things that really matter and that are going to add value either to our customers or to our bottom line. And what this means is more sales and engineering focused on partnering with our customers to provide solutions, but also more productivity programs, value-add, value engineer programs, lean programs, things that ultimately are going to reduce the complexity and eliminate waste within our businesses that allow us to sustain profitability improvement as we grow. So a lot of opportunities through global electrification and functional safety. And again, I think I want to highlight this again. Key components of our competitive advantages are really the fact that we are leaders, not only in the traditional 12-volt systems, but as these systems are shifting, as Greg mentioned, from 12 to 48 volts or from 400 to 800-volt systems, we have products that span all of that, and we have products that span it globally. So once again, as we step back and we drive with our -- work with our customers, they're really looking to us to partner. And I'll give an example. I was recently in China meeting with a leading electric vehicle manufacturer. And they said, "Look, you have a great brand. We know it's reliable. We want to buy more from you. But more importantly, we're expanding globally. We're building factories in other regions around the world." And so even though many of their suppliers were local, they said we need someone who we can work with as we move to Europe, as we move to other parts of Asia or North America. And again, that ties back to some of our key competitive advantages. We have great technical capabilities. We have a broad portfolio. We have it globally, and we have the capability to scale with them. And that's unique to Littelfuse and to our transportation logistics business. I'm just going to step back and share an example of how this is working because we are already seeing some early successes, and I expect that we'll have continued success around this approach. So leading OEM, well-known brand is basically saying, "Hey, look, we're adopting electrification. We're moving to EV, electric vehicle. We're increasing our content. But look, we've got a problem. We're really concerned." We see a lot of these videos when people first started building these EVs of something called thermal runaway. I'm not going to explain what that is other than you've seen them on YouTube and the news -- on the news where some vehicle is burning off to the side of the road and it's EV and it gets a lot of attention. They say, we can't let that happen to our brand. But here's the issue. We want to launch quick, and we need a solution that fits in the existing design architecture. So again, bringing our full capabilities to bear, we brought the teams together. We engaged on an engineer-to-engineer level and said, we created a very ultra-fast circuit protection device, multiple technology that fit within the existing space, and we did it quickly. So we solve their problem. They're able to launch on time. They have confidence that they have this safety device within their unit to protect their brand. But for us, what was great is through that engagement, we were in the previous vehicle with content, but through really coming and saying, here's how we can help you not only on this, but across multiple types of systems, we increased our content 20x from what it previously was. So this is a great example of how engaging early and on a technical level really supports what we're trying to accomplish strategically. And of course, they see us now as a trusted partner. We were able to really come in, act fast, provide an innovative solution. And as a result, they're someone who -- they want to continue to work with us in the future on their new and existing platforms. So I'm going to come back to this. So we talked a lot about the market opportunities, how we will grow within that space. But I think it's really important to say not only are we going to grow, we're going to do it profitably. I've mentioned that several times here, but that's a key component of transportation and logistics. And it really begins on this chart on the right when we talk about reducing complexity. We talked about it at the customer level. 33% of our customers actually -- that 33% generate about 2.6% of our revenue. It's crazy complexity within the business. So again, through redirecting and saying we're going to leverage our distribution partners, we can increase minimum order quantities. We can reduce the complexity across our factories. We rationalize some of those SKUs. And now that really has allowed us to redeploy our resources to things that add more value and support efficiency and scale. That's a key component to sustained profitability improvement within transportation and logistics. And now as we push forward, we've more than doubled our new business opportunity funnel through this approach, and we have the resources available to essentially prioritize those opportunities and grow. All right. So I'm going to give one more example of this because this really supports our change in approach and how we go to market. This was traditionally a market and off-road vehicles and a customer that we didn't engage with previously. But we identified them as a leader within this space. We saw this market was growing high single digits and said we need to get involved. So we came to them, we talked to them, explained our capabilities. They were excited about them. And ultimately, they came back and said, "Hey, look, yes, we're adopting EV. We're electrifying. We're also looking to add features and functionality from passenger vehicles because our customers are asking for it. They're spending a lot more time in these vehicles on their weekends. And we don't want the complexity that comes around with like all these different capabilities, switching and how we communicate across these now new system architectures to communicate between like, okay, the driving to the control systems to everything else." And we said, okay, we can help with that. So again, using a multi-technology approach, we came together, worked with them on their system. We created an optimized and configurable system, leveraging multiple components of Littelfuse along with our internal software capabilities. So again, establishing a [indiscernible] switching platform that ultimately allow them to take this accessory module that would help control the vehicle, and it could be used not only in the platform they were looking to launch today, but in their future platforms. So for them, we were able to support their desire to have accelerated platform launches, reduce the complexity associated with their systems. And from a supply chain perspective, it simplified it for them, one supplier instead of multiple suppliers, one design versus multiple designs. And even from a cash and an inventory perspective, it helped them save there as well. So great value for the customer, but also great value for us because in this particular opportunity, not only did we get into this new program, which is a multimillion dollar per year opportunity, but we started increasing our content from where we started. We said we can do this for you. And we talked about some of the other things we do with digital switching and other areas. And so we're interested in that. So our content continues to grow. And now they're looking to us with their other new platforms and things they're looking to do in the future. We're engaged early, and we are helping to drive specifications across the different types of systems that utilize the things that we build at Littelfuse. So again, really great success, but also a very exciting opportunity as we push forward. So just in close, again, our strategy is simple, but I think we're executing well and it's effective. It's being more focused around being in the right markets with the right customers and in the right applications, moving away from a reactive approach on build-to-print cost-sensitive types of opportunities to really engaging early with our customers, understanding their problems and then helping to solve them in a way that brings value so that we can not only win those but win them profitably and continue to sustain the profitability improvement you've seen over the last several years. And then finally, by understanding our customers' needs, evolving technologies and evolving markets, we are well positioned to align our business, again, efficiently and effectively to be able to serve their needs. So really excited about the opportunity we have in T&L. We're beginning to demonstrate some of the potential that's there, and I'm confident that we will execute in a way that delivers sustained improvement growth and in top line and in profitability as we move forward. And with that, I'm going to turn it over to Karim, again, who's going to build upon how when we think about electrification, higher power density, how he and his strategy are going to support potential growth across Littelfuse. So...

Good morning, everyone. Thank you for joining our Investor Day. My name is Karim Hamed, and I lead our semiconductor business. I'm among the new faces here, only 8 months in the role, but I bring over 20-plus years experience in semiconductor. I've had over my semiconductor career, a lot of roles from design, business development, product line management and most recently, leading a multibillion-dollar business. I recognize there is some confusion among the investor community about our semiconductor business and how it fits within the overall Littelfuse strategy. So I'm very actually excited to be here today to unpack this story and explain to you how it fits with the overall strategy and provide clarity. I'm going to go through the product portfolio. I'm going to show you guys how it fits with the overall capability that we discussed. I'm more exciting, I'm going to present our new update semiconductor strategy, one that I'm personally very passionate about because I truly believe it's going to bring significant value to our shareholders and our customers. Okay. With that brief introduction, let's dive in. As I go through my presentation, there is 3 key messages I want to take away from my presentation, very simple ones. First, our semiconductor business is well aligned with all the secular growth trends from -- talked about from data center, from energy grid modernization and battery energy storage. As these markets grow, with significant tailwind for our business, and we're very confident we're going to capture this growth. Second, the portfolio is well aligned with the overall liquid fuse portfolio. This creates a very good value proposition for our customers and give us a strategic advantage. And third, we're executing a strategy, a new updated strategy that we are confident it's not only going to provide top line growth, but will drive significant improvement in our profitability. Simple, and I will go -- as I go through my slides, hopefully, it will be more clear. Okay. So what's our semiconductor business? So in 2025, we generated roughly around $670 million in revenue, serving over 40,000 customers across all the 3 end markets that my colleagues have presented from EII, CCDI and transportation and logistics. This revenue is roughly split equally between 2 major product lines. One is protection, one is power semiconductor. Just for context, the protection is -- think about it as solution that's used to safeguard against transient and electrical f, while the power semiconductor is think about it as solution that's used for energy transfer and energy conversion. Greg presented this slide earlier on about our key capabilities and semiconductor play an important role in all 3 of them. If I stay positive with the overvoltage protection, our TVS diodes, high-power TVS diodes, d arrays is a key element of this portfolio. If you think about our overcurrent, we within semiconductor develop overcurrent protection modules, but we also provide power semiconductors to the EII team, Peter and his team to do for the high-power solid date relays. And then for the advanced protection and power solution, you see that picture here of our high-power stack that's actually demonstrated outside for those of you here in the room, you can see it that's used in the infrastructure and the data center infrastructure. So hopefully, this can help explain the whole -- how the breadth of the portfolio and how it fits with the overall [indiscernible]. As highlighted, our semiconductor business is well aligned with all these secular growth trends from grid, data center, industrial. Think about it, all these systems require advanced system protection and efficient energy transfer, and that drives demand for our semiconductor technology. But what actually excites us the most, excites me personally the most is the technology evolution of actually these markets is playing very well to our strengths and key capabilities, which will allow us to not only participate but outgrow the market. To give you an example, the move towards 800 volts and above DC, Greg mentioned native DC 800 volts and above in data center, creates a significant opportunity for our protection business. Currently, our overvoltage protection, a high-power TBS is being deployed or used by a lot of our data center customers. We have enjoyed significant growth, and we continue to enjoy significant growth in the 12 volts and 48-volt systems. But as the system moves to 800 volts and above, this represents an opportunity for us to double 2x the dollar content per protection system. Similarly, if you look at it from a better energy storage, moving to 1,500-volt systems provide a significant opportunity for our power semiconductor, where we have unique technology capability that allow us to not only participate but actually grow our share. We think these 2 things combined, you have a very healthy SAM. And by the way, we are very rational about our SAM that we have a very healthy SAM that we can go and grow and capture, and we're highly confident we're going to capture this SAM over $6 billion. Right. So as I mentioned, we have 2 product lines: protection, power. Each of them has their own unique strategy. Starting with protection, I would say it's one of the most successful profitable franchises in Littelfuse, truly. We are a market leader and our strategy here is how -- and we're very confident about that how do we maintain this momentum and continue to drive this, build on this momentum and outgrow the market. We're going to do that by participating and capturing the opportunity in high growth and capture the opportunity in front of us in the high-growth areas. We're going to also penetrate into new markets like aerospace and defense, like industrial, which historically hasn't been a focus for us. That's we're well positioned to capture. And third, we're going to build on our domain expertise and system and develop a higher-value product. I'll give an example in this later on in my slides. Switching to power, and the strategy you hear Greg about talking about sharpening our focus, sharpening our focus. We sharpen our focus in high-value applications in our target market, target customers where we have a clear right to win based on our technology capability and build our customer. This sharpening focus will allow us to rationalize our portfolio and then optimize our manufacturing footprint accordingly. And this strategy will drive us to not only drive our top line growth, but also improve our profitability in power semiconductor. These 2 might seem like 2 separate islands, power and protection, but no, they are highly correlated, and I'm going to bring that as an example later in my slides. Okay. So I will now dive a little bit deeper into our power strategies. I'm going to start with protection. As I said, our protection franchise, we are a market leader. And we don't take this slide and say we are a market leader. We are truly a market leader and our solution is the go-to standard for overvoltage semiconductor protection. Not only we provide reliable and reliability and efficiency in the system by protecting it, but we also provide overall system cost advantage to our customers. And this is something very important because because of our own proprietary technology, we enable power system designers to use lower voltage devices, lower cost and help them overall reduce the system cost, right? So this unique position, as I said, we are, we're a market leader, is actually reflected in our financials in this portfolio, where over the last 5 years, we have grown over double-digit CAGR and with profitability that's above corporate average. So how do we move from here? So as I said, our strategy is to maintain this momentum, build on our position and continue to grow and actually outgrow the market. We're going to capture opportunities in our high-growth areas. I talked about data center, better energy storage, but we can also penetrate into newer markets that I said historically hasn't been a focus like aerospace and defense, like industrial. But more important, I would say, how we efficiently deploy our R&D to drive unique capabilities. And when I say leverage our domain expertise in protection and create solutions that solve a customer problem, like we just [indiscernible] a solution for the sake of solution, but solve a customer problem but allow us to capture the value at the system level. And I'm going to give an example about that in my next slide. So -- but again, with this too, with this strategy, we are very confident that we'll be able to maintain the momentum in our protection business. Okay. So here's an example that puts the strategy -- bring the strategy to life with our protection. And actually, it's a good example as well because it shows the correlation between power and semiconductors, as I mentioned earlier on. We talked about the move to high-voltage DC systems in data center and battery energy storage. Customers are realizing significant efficiency gains. Going to high voltage enables less conversion stages, lower losses, smaller cable that all translate into benefits -- system level cost benefits. But with these benefits, there are significant challenges. And the challenge is, as you can imagine, going high voltage, high current that you have risk of [indiscernible] flashes, which could be at these voltage could be catastrophic. So the system designer need an efficient way to -- and a reliable, safe way to protect high system level of protection. And also, this needs to be electronically resettable so you can minimize your downtime and maintenance costs. This is where Laserfuse stands out. So we have here in the picture shown on this slide, one of our technology capability we're currently developing, which is an [indiscernible] protection module. And this function -- this module includes over 5 functionality from sensing, course protection, sensing, remote monitoring, functional safety. And the beauty about this, it actually integrates technology from all over Littelfuse. So we have power technology, power semiconductor module. It has gate drivers. It has sensing. It has our own proprietary software. So we actually leverage technology from across the company to solve a customer challenge and a customer problem. And the feedback from the customer has been amazing so far. We have very exciting about this. Customers are waiting for us to bring this to market, and we're very confident we're going to have a significant market share growth with this one. But what's it like this is a great value for our customer, but for Littelfuse, it's a great value for us, too, because selling this allow us to capture more than 10x the value if we will sell in video components, right? So higher value capture, solving a customer problem that we can reflect in our -- the good return for Littelfuse as well. So turning to power semiconductor, an area that historically hasn't performed to the level that we want to perform in terms of profitability and growth. And hence, we are going through an intentional significant transformation in our power semiconductor business. So we're executing right now in a focused, highly actionable strategy to drive top line profitable growth. And at the core of this strategy, as I mentioned earlier, is focus, focus in high-value applications in our target markets where we have clear right to win. And when I say clear right to win, meaning that we have the technology stack from die, from packaging, from other things, we have the customer access, and we have the market share. We talked about hear from all my colleagues today about the go-to-market and how we are changing and revamping that, that's actually very helpful to us as well, but we have the right to win in these markets. So we're going to focus there. This focus will allow us to rationalize our portfolio, basically intentionally deemphasizing low value so we can put our resources in what really matters. Then we can take this and say how we optimize our manufacturing capability. And again, we want to have a hybrid manufacturing model where we can rely in our own internal capability and external partners as well. But our own internal capability, we're going to mostly focus on, I would say, differentiated technology that we want to maintain in-house. So the outcome of this strategy is we become a more reliable partner to our customers. I can tell you, I've been here a short time, 8 months, but I visited a lot of customers. And this is what the customer is telling us. They really value our technology. They really like what we are offering, but they want us to give us more. So a few weeks ago, I was at a customer, I said like, hey, in these high-power, high applications, I can -- everything you can produce, I can take now. So we are getting the message, right? So we need -- so this strategy will really focus -- resonate with our customers. So -- and once we are doing well with our customers and we do better service, that will drive our top line growth and as I said, profitably. So we're very confident and very excited about our power strategy. Similar to protection, I just want to give you guys how an example bring this strategy to life. We talked about data centers a lot today, but like as you can imagine, with all our lighting data centers, like data center has to have continuous operation and the power supply has to be uninterrupted. The power supply going to these IT racks need to be solid. And of course, you don't have primary source, they have primary and second resource. And if something happens in the primary source, it automatically seamlessly transfer the second resource. But we're not talking about switching like a power supply and a charger phone. These are megawatts. So it's transfer this safely and efficiently is not an easy engineering task. It's actually very critical task. And the subsystem that's used to do this is what we call a static transfer switch. But at the heart of the transfer switch is our high-power stack module, right? This is compact. And again, it's shown in the picture here, and it's hard -- and actually, it's demonstrated outside. It's hard to see it as a compact, but when you take the subsystem, it is actually compact. And what here is this is we can transfer megawatts of power within 2 to 3 milliseconds, which is a unique to enable this uninterrupted operation of the power supply data center. We are almost in every participating where every customer our technology is there. We see this as a growing opportunity over $400 million that we are well positioned to capture. So this is an example of where we want to focus our power semiconductor, high-value, mission-critical. We have the right technology stack, we have the right customer access, and we're going to do more of this moving forward. So in closing, I want to reinforce my message, as I said earlier, simple messages. Number one, I think our semiconductor business is well aligned with secular growth trends, and we're very confident we're going to capture this opportunity. Two, the technology is really actually complementary to the overall Littelfuse portfolio. That creates a really value position for our customers. And finally, we are actually executing on a focused, highly action strategy to drive our top line and our bottom and our profitability. So we're very excited. We're very confident about the path forward. We're very excited about the opportunity ahead of us. And with that, I'll turn it over to Abhi, who will go through our financial model and how all these strategies presented today reflect in our outlook. Thank you so much for your time and attention.

Thanks, Karim, and good morning, everyone. First of all, thank you for being here today and listening to our strategy and our 5-year road map. For folks who don't know me, I'm Abhi. I joined Littelfuse in June of 2025. Prior to this, I was the CFO of IDEX Corporation, and before that, a company called Multicolor Corporation, a private equity firm. I'm super excited to be here. More importantly, when I joined Littelfuse, I was excited about our long-term future. But as I stand here today, I'm even more excited as we unveil our 5-year strategy. So before we get into the financial model, and I give you the nuts and bolts of where we are and where we're going to go, why don't we start at the highest level and kind of think about the 3 things that we're really focused on. So number one, for us, it's about accelerating top line growth, organic growth by focusing on markets that are attractive, that secular tailwind that teams talked about today. Deepak, Peter, they talked about data center, grid and utility, aerospace and defense. These are markets that we are really excited about and that we are double downing on to accelerate our organic growth. Second, balance sheet. We have a really strong balance sheet, and we are focused on disciplined capital deployment to both organic and inorganic opportunity so that we can create long-term value for our shareholders, for our employees, for our customers. And three, as we scale the company, it's about elevating our operational performance. This is really important, right? We're $2.5 billion, we aspire to be $4.5 billion that Greg laid out. So for us, it is about scaling the company operationally through a standard set of KPIs across the company, across our businesses, so we can hold our teams accountable, we can drive profitability that's sustainable, dependable and is consistent through the next 5 years. So you put these 3 things together, what you create is an enterprise with an earnings profile that's more resilient, more dependable and more stable through cycles. Now let me walk you through our 3 segments and -- our 3 external reporting segments. So if you look on the left side of the slide, we have 3 reportable segments: electronics, industrial, transportation. Electronics makes up about half of the company's revenue, transportation at 30% and industrial 15%. On the right, what you see is the diversity of end markets that our teams talked about today, the diversity of technology, the diversification of this portfolio is what's on the right. Now keep in mind, all 3 segments serve these end markets. So it's not that these end markets are tied to one segment, every single segment plays a big role in serving these end markets, okay? And what's important to point out here is the diversity of these end markets because what that gives us is the ability to protect ourselves from any volatility in one particular sector. That's what's really important here. It's the diversity of markets, the diversity of technology, the diversity of customer base that we serve with the business that we own today. Now let me walk you through the value creation playbook that will drive long-term shareholder value. Look, our long-term value creation is all about best-in-class performance through cycles, okay? That's how I think about it. It's about building a more resilient, more profitable company regardless of the cycles we go through. So if you kind of think about the value creation playbook, there's really 3 pieces to it. And I'm going to cover these pieces in details as we go through this presentation. But the highest level, it's about organic growth. It's about driving organic growth of 7% to 9% with the core businesses that we own, coupled with the high-growth opportunities that we're really focused on. This is really important because, again, we have great businesses. We have a great brand. Our teams are focused on the right opportunities. And we believe if we do this well, we can grow this company organically 7% to 9%, okay? From an inorganic standpoint, what we're focused on is deploying capital to about 6% to 8% top line growth. And this is really, again, as Greg had laid out earlier today, this is nothing different. It's all about focusing on the core markets that have secular tailwind that we're excited about and how do we ensure we go deploy capital to those end markets so that we can bolster our organic growth with inorganic growth, okay? And then third, it's about margin expansion. This is an important part of it. So if you think about where we are exiting 2025, we're at 21% EBITDA. Our goal over the next 5 years is to get to 24% to 26% EBITDA or 25% EBITDA, which, again, is a 400 basis points improvement, okay? How are we thinking about it is, again, it goes back to what I said, which is deploying an operating playbook that is consistent, that we standardize across the company with a set of KPIs that really can help us drive profitability that's sustainable over the long term, okay? Now we do these 3 things, what this translates into, and this is really important, is a $25 EPS. And just for context, 2025 was $10.68. So it's more than doubling our EPS over the next 5 years by doing these 3 things. This is what I'm excited about, okay? So as we think about this growth playbook, let's take these pieces and dig deeper. So starting with our top line. There are 3 core pieces, the core business, the high-growth opportunities that the team talked about and then strategic M&A. So taking one bit at a time. So core, it's about outgrowing the underlying markets where we believe we have a right to win. We have a great product portfolio, coupled with our go-to-market, gives us the confidence and the conviction that we can grow this business above market. Two, investing in these high-growth opportunities, high-growth markets that the team has talked about today is going to really help us drive 7% to 9% organic growth. From an M&A standpoint, I know I touched on it, but it's all about expanding our solution set, partnering deeper with our customers and aligning our M&A strategy to these end markets that have secular tailwinds that we believe are going to outperform our end markets and investing in these companies, okay? So that's how we think about our top line. Now what this translates into over the next 5 years is a CAGR of 14%. And I'm going to tell you, so in a couple of slides, I'm going to walk you through the organic line. But if you think about the organic growth of 7% to 9%, now this does include some portfolio rationalization. So at the highest level, if you think about our core business, coupled with NGOs, we're laying out a target of 10 basis -- 8% to 10% on the top line. But Greg and the team walked you through our SAM and the growth rate tied to our SAM. That's a 6% growth rate. So at the low end of this guidance, that's a 200 basis point higher than market and the high end of the range is 400 basis point market outperformance. That's a critical piece of this. This is us driving above-market performance by 200 to 400 basis points over the next 5 years. That's super critical here. Operational execution. This is something that Greg and I have talked a lot about over the last year, whether it's an earnings call, whether we go with various investors, conferences. So when I think about operational execution, it's about how do you scale this company from $2.5 billion to $4.5 billion. And when we scale this company, how do we ensure that when we grow, we can deliver operationally, okay? You heard from Dave and Kim today. Dave talked about simplification. Dave talked about focus. Dave talked about, hey, I'm going to take complexity and redirect it to things that matter to things that will help grow this company. That's a piece of operational excellence. Karim talked a lot about power semi. We have talked about power semi as part of our earnings call and the work that we're doing around it. When you think about power semi, what we're thinking about is product rationalization, footprint optimization. Those 2 pieces are critical for us to drive margin expansion. And us as an organization, us as a team, we are really focused on making sure we execute on those 2 things, okay? Second, capital discipline and deploying capital in an effective way to organic and inorganic opportunity is going to be a big part of margin expansion. And then lastly, look, we all talk about AI. Early days, but we're in the process of working through where can we use AI to drive efficiency and enhance productivity as we go through the next 5 years. So again, this is a big part of our strategic priority over the next 5 years. Again, none of this is a surprise. We've talked about this, but the teams are really focused on making sure we do this well so that when we scale, we can deliver for our customers, our shareholders and our employees. So look, switching gears for a second. We talked about growth. We talked about deploying capital, operational execution. None of this can happen without cash. Cash is really important in the situation. So if you think about Littelfuse and think about the hallmark of Littelfuse, our free cash flow generation is one of the things that we take a lot of pride in. If I look at '21 to '25, our free cash flow conversion was north of 100%. As I think about our priority, we continue to make sure we deploy that free cash flow. One of the priorities for us in the next 5 years is to really work on working capital and continue to ensure we're rightsizing our working capital, so we don't block our cash, okay? So if you kind of think about the next 5 years and think about where we're headed, our target is to deliver $600 million of free cash flow in 2030. And over the next 5 years, convert cash north of 100% like we have done historically, okay? That's kind of how we're thinking about it. And this is important again because if you think about M&A, think about operational execution, think about organic growth, all of these things need funding. So making sure we do this and do this really well is going to be super critical as you think through the next 5 years. I thought I'd show you a snapshot of where we are. Sitting here on March 30, our cash was $482 million. Our leverage was 1 turn. And don't forget, we just bought Baxter in December, and we paid $350 million for it. Despite that, our leverage is 1. This, again, speaks to the power of the business, the power of the portfolio and the free cash flow that we generate, okay? As we think about our planning cycle, as we think about M&A, I'll kind of first take you back in time. We've had periods where we have done a decent chunk of M&A, but we're still being within the target of 1 to 2.5x. And as I think about the next 5 years, and I lay out the M&A strategy, we're going to continue to remain disciplined and be within that 1 to 2.5x. And again, this speaks to the cash generation and our ability to generate cash to ensure we can stay in that range. So how are we thinking about capital deployment? I told you about the importance of M&A, I told you about the importance of organic growth and the need to fund organic growth. So as you think about the 5 years, what this model has contemplated is us deploying our cash 70% towards M&A. And when I say M&A, it has to be disciplined M&A tied to our strategy, tied to the end markets that we are focused on, has to generate double-digit returns by year 5, has to be margin accretive. We're going to apply some filters and we're going to stay disciplined. But if you think about where we're going to spend our capital, 70% towards M&A, the other 30% is split 50-50, 50% towards organic investments, the other 15% towards opportunistic share repurchase, coupled with our consistent dividend payout that we have done historically. That's how we're going to spend our capital, okay? With such a critical part of this deployment being allocated to our M&A, let's spend a little more time talking about financial filters. So Greg laid out our strategic focus on M&A. He talked about the kind of businesses that we're going to go buy. Brett talked about, hey, it's going to be in markets that we're excited about that have secular tailwind. I'm going to take it a step further. So if you think about the financial printers that we're talking about, just to make sure everybody is on the same page, it's going to be disciplined. It's going to be M&A that supports our organic trajectory that I just laid out of 7% to 9%. It's going to be margin accretive. It has to generate double-digit returns by year 5. And I say double-digit returns, return on invested capital, cash and cash returns. And that's how we're going to look at every opportunity. So if you think about Basler, it's a great example of what we're going to go do. So start -- just to give the teams an update on Basler. We bought Basler in December of 2025. We paid $350 million for Basler. Now kind of let's break it apart. It gives us exposure to data center, utility and grid markets that we laid out today was a primary focus area for us. It gives us capabilities broader than what Littelfuse has. It gave us deeper partnership with the key customers that we care about. If I think about our performance in Q1, we exceeded the performance in Q1 than what we had guided, okay? And then for the full year, as I think about our performance, we had said our accretion is going to be $0.10 to $0.15. Sitting here today, given our Q1 performance, we're going to be on the top end of that $0.15. Really excited about Basler, really excited about the business. done a great work of integrating the business in the near term. And this is a great example of the strategy and the kind of M&A that we're looking at that we're excited about. So when you stack these successes together, organic operational excellence, disciplined M&A, it leads us to our targets for 2030. So again, today, we are a $2.5 billion company. Our aspiration is to be $4.5 billion by 2030, $1.1 billion in EBITDA. So just for perspective, again, I know people -- Greg talked about it. Today, we are $0.5 billion EBITDA. Our aspiration is to get to $1.1 billion. And then more importantly, as I said, to fund organic growth, M&A, we need cash. Our focus is to generate $600 million of free cash flow by 2030. Now you can think of this as financial targets. I view this as a transformation journey that we are on and the excitement around it that the teams have is what gives me so much excitement to stand here. These are not just financial filters. These are not just financial numbers. This is a different littittlefuse, and we're in the early days of transformation, and this is what I'm excited about. So taking a minute and breaking out the annual revenue growth bridge. So like I said, we're $2.5 billion today, $2.4 billion. Core plus SGOs are about 8% to 10% is what we laid out for growth. And again, this is about go-to-market, focusing on geos and accelerating our organic growth. We've laid out 1% to 2% walkaway revenue tied to the work that Deepak is -- Karim is doing, Dave Ruffle is doing. So if you put the 2 pieces together, we're laying out a target of 7% to 9% organic. But I'm going to bring this back up again. So if you just focus on the core plus GOs and not look at the optimization/walkaway, right, our markets are going to do about 6%. So at the low end, that's 200 basis points more growth than market at the high end, it is 400 basis points. That's an important piece I want to leave the team with because, again, this goes to our focus on geos, the go-to-market model that we've initiated, right? This is why we feel so confident and have the conviction to go do this. And then inorganic of 6% to 8%. What this translates into, though, is electronics growing at high single digits, transportation and mid-single digits; and then lastly, industrial at double-digit growth, okay? Now let me walk you through what this means in terms of EBITDA and the pieces of EBITDA. So again, I mentioned we are a $0.5 billion EBITDA company. We've also talked about conversion on top line for us is about 30% to 35%. So when you take the organic growth and you think about what that's going to do on EBITDA, that's about a $400 million contribution to EBITDA. I just shared with you on the other page, we're going to lose about 1 point to 2 points of CAGR over the next 5 years. But what we're laying out is a $50 million positive EBITDA impact driven by footprint rationalization by looking at products and rationalizing them, making sure we are focused on things that we are core to us, okay? So again, down 1% to 2% over the next 5 years as we think about rationalizing our portfolio, optimizing our footprint, but it's going to turn into a $50 million positive EBITDA for us over the next 5 years, okay? And then lastly, M&A of $200 million, which then gets us to our aspiration of $1.1 billion. So to sum it all up, Littelfuse is a leader in mission-critical technologies, well positioned to capitalize on the global electrification trend. Disciplined capital allocation is going to be a key, and we are laser-focused on making sure we invest in things that will deliver returns, increase our profitability, support our organic growth and give the returns that are double digit in year 5, okay? We have the right strategy, the right team. You met the team today and strong momentum. I want to thank you all for taking the time today and being here. And I hope you're as excited as I am hearing the team today about our 5-year strategy. With that, I'll bring Greg back on stage.

All right. Thank you. Well, look, I really appreciate all the time here. Hopefully, now you see through the whole story and through the team from our market views, from our technology products and ultimately, the financial model that Abhi laid out, why we're excited. And I'm just going to go back and really just zoom back right to the beginning and just kind of really quickly anchor, again, why I believe we have a great strategy, why this is not just an ambition, but it's a plan, and we have a high confidence in getting there. It's just those 3 things at the beginning. First, we're in a transformational shift in the market. Electrical generation and consumption is in a significant pivot. That's a tailwind for us. In addition, there's this transition to high voltage DC. You heard that throughout the presentations in all of the markets why that matters, and that's a content lift for us. Second, we have a very, very unique portfolio. You heard a lot of examples about that. You saw the solutions across our technology portfolio, examples of overturn, over voltage, power system solutions and across all of our markets. And third, we have a very good strategy. It's a simple strategy. Dave pointed to that as well. Our strategy is simple. It's straightforward. It's clear. It's about focus, customer partnership and then bringing the right technology to market and optimizing our portfolio. So we have a high confidence in this plan. Hopefully, you all see the same thing and that you'll join us in this journey. And with that, I'm going to hand it back to David, and we're going to switch to a Q&A session.

All right. Thanks, everyone. We're going to now transition to the Q&A portion of the event. If you'll bear with us for just one moment, we're going to bring all the presenters back up. We've got some seats coming up on the stage here. The format of the event is we're going to take both live, of course, and webcast via the portal Q&A. So if you joined us via the webcast, feel free to submit your questions. I will be monitoring those and happy to address everyone's questions this morning. So bear with us for one moment, and we'll get rolling. All right. Thanks, everyone. So we're going to kick it off live in the room here. And again, we'll switch back and forth to webcast portal as well. So a question here from the front. If you don't mind stating by the way, your name, your firm and looking forward to answering your questions.

Chris Glynn, Oppenheimer. Just wanted to start off on the capital allocation, the organic or the inorganic strategy. Curious if you see that being a pretty steady flow of small and mediums or a couple of chunky ones, if there are like corporate orphans or are you looking at more private type companies? And any openness to merger scale opportunities?

I'll start. Listen, thanks, Chris. I think first, I mean, what's important is that the acquisition aligns to our strategy. And for us, I think it's the 2 pieces. It's the technology capability and then the market over. And we want to overweight in the markets that we think are high-growth markets, aerospace and defense, grid utility and data center. So I think that's the key. I think we're very open-minded as to what we want to buy. We do have a significant percent of revenue, and Abhi can repeat that on the model, a significant percent of revenue to our $4.5 billion, which comes from M&A. So we want to buy significant things, but we're very open-minded. So we have a lot of opportunities we're looking at. We're constantly looking at opportunities. We're open to public, private. Whatever fits the model for what we are looking at is the key, I would say. And we presented Bachelor as kind of a key model of what we want to do, the kinds of things we want to do. It fits well. It has the market overlap, it has the technology capability. It has the financial model. And so we're open, I would say, to whatever makes the most impact to accelerate us to the strategy.

Yes. Look, just to add to what Greg said, again, Greg covered the strategic part. It's got to be a strategic fit. It's got to be in markets we care about. And I'll just complement by saying and it's got to hit the financial metrics that are super important to go hit this plan, which is around, hey, double-digit returns by year 5. Is it margin accretive? And does it support our organic revenue aspirations. So we're going to balance the 2. To Greg's point, we're indifferent, whether it's public, private. It's got to be the right company that fits the profile.

Question upfront here.

Luke Junk with Baird. Hoping you could speak to system selling and co-engineering that relationship, how it's evolved across both CCDI and EEI. Dave talked a lot about it in his presentation. Hoping we could just bring it to life more in both of those segments. And specifically within CCDI, we can maybe speak to the 2 to 4x high-voltage DC content opportunity. It seems like system sales and co-engineering relationships are pretty key to driving that. Just maybe some examples to put more.

Thanks, Luke. Maybe I'll start and then I hand to Deepak to give you more context in the CCI and especially in the data center market. I think the good news is that system sale is not like it's not something that's completely new at Littelfuse, and we actually had been doing it in some areas very well. Actually, Peter mentioned in the EIM market, for example, in solar, we were very early on system-level solutions first to the 1,500 volts. And I think that's the key is it's about partnering with key OEMs and knowing where the technology trends are and then taking our technology and developing that. So it's not something that's completely new, but we're doing it more at scale, and we're also doing it more to be able to come in and say, okay, we have this complete portfolio. How do we offer that solution for you? And I think that's the fundamental difference. I've met with a lot of these customers myself, and the customers are thrilled that we're showing up this way now. And as was mentioned in the presentation, they have a lot of unique challenges around these high-voltage systems. They're focused on the different problem, which is computing and getting the power in and out the protection or whatever is very important, but it's not their primary focus, and it's something they really need to go. So I would say that's the high level. And I'm going to let Deepak maybe give you a little bit more examples about how that partnership is working in the data center.

Yes. It's -- we're expanding our system engineering capability. We had it, but we're adding a lot more people in the Bay Area and ampitus office, but that's closest to our customers there, all the hyperscalers. So we've added that capability, added more people there and a very focused teams, I would say. So we have teams of system engineers, FAEs, sales guys and great relationship with the hyperscalers and all of them actually. So what's going on is very quick feedback of what they want, and we go work the solution with them. It takes time, longer-term solution, but we are on top of all of those right now.

David Williams from Needham. Thanks for all the really great color today. It's great to hear. You set some really nice, I think, growth trends or growth expectations here, but it feels like maybe there's a little conservatism there, just kind of given what we're seeing across all of your markets. We've got this inflection, obviously, data center performing very well. How do you think about maybe the upside opportunities? Do you feel like there's more upside opportunity than maybe downside risk to your expectations that you've laid out today?

Maybe I'll start. I think -- look, I think the key here is that we're -- I mean, one thing that's really powerful about Littelfuse is that we're a very, very diversified company, right? We operate across a lot of markets, and we're very diversified. That, I think, is actually a strength, but it also blends our overall growth rate. If you look at the markets that are the high-growth markets like grid utility, like data center and actually, we did put up on the slide that in data center, for example, we're expecting growth of 25% to 30%. And again, that's based on assumptions about power consumption. It's based on assumptions about how fast technologies evolve and how much they deploy. And these things are moving all the time. So there's kind of the core market assumptions behind that, that you guys are chasing as well as we're chasing. I think the way we look at this, what I think is important is that we have a leadership position across the markets and across all those markets. We have a leadership position. We're well positioned with the technology, and our focus is on getting share and design in, and we're focused on getting the share and design in, in the high-growth opportunities. And then from there, the market kind of goes as it goes. So you can say maybe our model is conservative, maybe our model is aggressive. Our focus is trying to win share and outgrow the markets. I think Abhi outlined the kind of the numbers we're thinking outgrow the markets. And is it possible that we will grow more? Sure. And is it possible the markets will grow faster? Sure. Is it possible we'll take more share? I hope so. But also, we want to put together a plan that we think is credible that we can commit to and achieve, and that's basically what we're looking at. Abhi, I don't know if you have.

No, I just -- I think I'll bring it back to, if you look at the markets that we laid out, we're expecting that SAM to grow 6% at the high end is a 400 basis point outperformance versus market. Take a step forward, think about organic growth, forget inorganic for a second, that 8%, the GOs are going to grow 20-plus percent in that 8%, right? So that's what we said, that's what we're focused on. To Greg's point, the range of outcomes can matter because the macro work can change. But that said, we feel pretty comfortable and confident about the plan that we laid out today.

Maybe a couple of questions from the webcast here, and then we'll happy to kick it back to the live room afterwards. A question on your go-to-market strategy and the focus on customer segmentation. How should we measure whether that's working or not? What KPIs or proof points are you tracking to validate the success of this strategy?

Yes. Thanks. I think the key on the go-to-market is really about focusing on those 1,000-ish customers are where we call direct and then the broad tail at 3 of the revenue is where we go indirect, right? On the direct part of the customer, the ultimate success of our improved go-to-market is accelerated revenue growth. Now that takes some time because you got to partner with the customer, you got to get designed in. But that's the ultimate success. So the ultimate success we're looking at is accelerated revenue growth. But obviously, there's metrics that we look at along the way to try to see what our success is. First, our earliest indication is growth in our pipeline, right? So we look at the pipeline growth that we're getting. We're looking at increases in the pipeline. So how much opportunities are being identified. But then we have a disciplined process of tracking that pipeline through to our design wins. We talk about design wins. We have a lot of discipline about defining what a design win means. And in most of our markets, actually, that relates to actually -- you're on the platform and actually you're getting some revenue in early prototypes that tells you that it's a design win. And actually, we talked about in our previous earnings call, and it was on the slide today that in data center, where we were early to go to this new model, we doubled our design wins last year, basically in 2025. And those design wins, that's like I said, we're on the platform and we got some revenue in early prototypes. So that's, I think, the second key metric that we look at. And then the third key metric that we look at is really about our cross- technology sales. So I mentioned the example in my presentation with this e-mobility customer that uses a very, very broad scale of our technology. Most of our customers use significantly less than that. And so there's a lot of opportunity for us to just -- if you got a couple more technologies on those platforms, Deepak talked about multiple designs on a board, that is a huge growth lever as well. And so we also are going to be tracking how many technologies we're able to sell into individual opportunities and individual customers. So those are the metrics that we're going to track internally, and those are the early indicators that ultimately are going to show up in the revenue growth.

Maybe one more here from the webcast, and this is specific to transportation and logistics. You've spoken to these high-growth opportunities across your markets. T&L is only one without one, with some of the slowing EV adoption we're seeing, can you walk us through your content outgrowth story and what gives you confidence in your ability to outgrow these markets?

Yes, that's a great question. And early in the presentation, I talked about that even though the full transition to EV may be slowing across Europe and North America, the increase in features and functions across vehicle platforms continue to grow. So that's the way that we're really capitalizing on that. So electrification continues across the broader market. So our ability now to engage early on a more system architecture level allows us to pull more of the Littelfuse portfolio into these opportunities. And again, regardless of the speed of transition to internal combustion to full EV, we are well positioned across all those platforms. We're a leader in internal combustion, and we are well engaged across medium and high-voltage systems into full electrification to be able to drive our products and grow well above market. And our global scale and technical capabilities truly differentiate us because as our partners are moving across different regions, expanding their businesses, we're right there with them. So that's why we have the confidence that we can really well outperform from 1% perhaps vehicle growth rate to mid-single digits growth.

I'll just add, I think the work that Dave has done and his team and across the company, I think in our last earnings call, we announced actually we had a pretty solid revenue growth in our transportation market, even though the market was slow, and that was really because of work that's been done in the team about customer partnership, and we were able to get share on existing running platforms. And what's exciting about as well, just a perfect example of where we got share. We actually got share based on the kind of core overcurrent portfolio that comes from Dave's product line, but also the semiconductor protection portfolio that came from Trains product line, leveraging our customer partnerships and go-to-market. That's a perfect example of where we did in the last quarter that we announced, we're able to outgrow market. And I think that's why we have confidence that the model that they put together that we've put together, we can outgrow market. And I think that's the real thing that we try to pay attention to is relative performance in the markets and focusing on the high-growth areas of those markets.

Great. Thank you. A couple more flowing through the webcast, but we do want to take some time for back live in the room if anybody has any questions. Of course, if not, I can continue with the webcast. Go ahead.

Chris Glynn, Oppenheimer again. Just wanted to dive into the repeated kind of mentioning of the more than doubling the design wins in data center last year. Curious on a few things, the degree to which that is the market in 2025 versus in 2024 as opposed to where your go-to-market was in '25 for potency versus where it was in 2024? And how many players you see in terms of being really competitive for market share in those design wins? Is it 2 or 3? Is it they go to 5 vendors or they go to little Fuse plus a smaller supplemental?

Yes. Look, I think I'll start. And then again, maybe Deepak can give again a little bit of color on kind of the -- some of the maybe more solution areas that we get in here. But I think, look, attribution is always very hard, right, to say, okay, you attribute this exact outcome to this exact thing. It's very, very hard to have exact attribution. But I can tell you, number one, market is improving. But number two, we are seeing progress. I mean I get feedback from our customers. I've met with these customers directly. We get feedback from our customers that they really, really value this approach. I also get feedback from our customers that they really value Littelfuse in this space, especially the hyperscalers. I mean I think -- and Deepak can talk a little bit more about this. We are a trusted brand, right? So I think the key there is that we've simplified the model of how we're approaching these customers. And instead of bringing multiple different sales teams to sell different things and where we were still able to win the share, by the way, we're able to say, "Hey, can we just work on your next-generation platform problem. So we definitely accelerated our own luck last year in those design wins. Obviously, some of it is market acceleration, too, but we definitely accelerated that. And we see momentum. I think the other thing to understand about this go-to-market change is that it's early, right? You early start, you build that relationship with your customer, then you start to build the next-generation platform. The real value proposition is that down the road, like Karim was talking about, we can integrate a number of different technologies into a higher-level solution that might be 5x the price. So I think that's the way to think about it. I don't know, , you want to give any more color to this.

I mean the only thing I'll say is that data center is big news today, but we've been working in data center for a long time. So even 4 years back, 5 years back, we were working with the same guys. It become much bigger now. So we have deep relationships from 5 years back, and we've been on their design. We've been working to design new products for them. And that's been the advantage we have anybody else in the market. So it's not totally new to us. We've been in there.

And I guess to your last question, right, it's a competitive space. You asked about competition. Obviously, everybody wants to win this share. And we have competition. Everybody has competition, but we feel very confident in our ability to win based on our portfolio. And I think we'll leave you again with that unique portfolio. We have a very unique portfolio across the technologies, which allows us to have a different kind of conversation than some of our...

I think, Greg, remember I said, we give a full portfolio. We have a 2 device, and we have a 2,000 am device. You don't have much of a competitor who can do all of that. So when you guys go outside and look at the booths, you can see the products we deliver. I don't need anybody else who can do that. And so customers like to work with us for that reason.

Again, I ask the question that's probably on the top of a lot of the 25% to 30% plus data center CAGR through 2030, realizing we're looking out 5 years now, further out probably a little less certain how you think about near to medium-term opportunity in data center relative to that CAGR and then how timing of the hight opportunities 400 volt and 800 volt even through...

So I'll start and then maybe Abhi can give a little more color. I think what's important is that we put 2030 targets out there today, right? And it's hard to really predict the exact timing of this thing. And actually, we have assumptions on our 2030 targets, which is based on the assumption you saw there on how much power is deployed and how fast these things go, and it's changing every day. And I will tell you the architecture evolutions as well are going to happen, but the exact timing of when any one hyperscaler or any one data center deployment goes to anyone, we're actually -- we don't know either. So we make some assumptions about that. What's key from my perspective is that we're designed in those platforms. and we're working with the customers, but there's a lot of features and factors that they have to get right to be able to make sure that they can deploy that system, everything from these 800-volt systems, a whole set of different UL certifications. Our products are UL certified, but their products are also UL certified, and there's a lot of supply chain they have to work out. So it moves around a little bit, and we learn, we're going to follow that. I think the key is that we will ride that market. I can't be the one to predict that. And so the timing is a little hard to tell. But we are confident on our 2030 targets and that it will be sustained growth.

Yes, that's what I was just going to say, look, I think what Greg just said is the conviction and the confidence that we have winning in this market. Is every single year going to be between 25% and 30%? That's hard to tell. But we do believe exiting 2030, it's going to be a 25 -- somewhere in the 25% to 30% CAGR. That's how we're thinking about it.

Maybe one from the -- actually, I have a couple from the webcast here. First one, a question for the EII market. You talked a lot about solution selling opportunities. In light of the Bassor acquisition, how do you think about the largest opportunities to bundle those capabilities to create differentiated solutions versus selling historical discrete components?

I mean it starts with our HEO, our strategic markets, talked about grid infrastructure, renewable in those areas. The go-to-market allows us to sell the basket of solutions at a system level. B is an example where they have a leading presence in the grid utility. And with that, they're able to pull in or we're able to pull in a broader solution around the circle protection as an example. Those are immediate opportunities that we're uncovering. And another direction is that Baer has also a unique solution or expanded solutions that they were not able to penetrate in the past in our other markets. So we're able to take that to our other markets within EII.

Great. A couple of data center questions. I'm going to try and summarize these together, not surprisingly. Can you help us walk through the 800-volt versus low-voltage DC architecture opportunity in terms of content, whether that's per rack or dollars per megawatt? How do you think about that transition and what it means for Littelfuse.

So again, I'll start and maybe Deepak can add more kind of detailed color. I think it's very hard for us as well, and we get asked this question all the time, dollars per megawatt and exactly how much more content, and that's why we put that 2 to 4x. We're confident that it's more, right? And there's a lot of moving things in these 800-volt architectures, right? So there's a lot of moving targets in the 800-volt architecture exactly are they going to transfer straight from grid medium voltage to 400-volt AC and then they get us this sidecar thing. It goes from 400-volt DC to DC from 40-volt DC to 2,000-volt DC -- or do they go to 1,000-volt DC and some people are at plus 800 and some people are at plus or minus 400 and that's changing a lot. So it's hard to say. I think the most important thing is we're participating across the ecosystem with the chip providers, with the hyperscalers with also the infrastructure suppliers that don't want to underemphasize that, that gray space, and you'll see that everything from backup power generation to those large 2,000-volt fuses that go right at the input of the building. And we're participating in the architectures, and we're well represented and designed in. And so we estimate 2 to 4, and it could be more on the higher end if more of the higher voltage content goes closer and it will be lower if it's less. And then there's some other emerging architectures, for example, about solid-state transformers, which really is very disruptive. And now basically, you're taking the whole medium voltage transformer that sits outside, which is this massive and massive -- I mean it takes a crane to install, which is wire wound copper and steel, which we don't participate in, and you replace it with a solid-state solution. And we're talking to lots of people that are doing solid-state transformers. And it's a bunch of power semiconductors and a lot of semiconductor and protection. And when is that or is that going to make it into the data center market exactly, we don't know. ut we're there. We're participating. We're working with those people. And if and when it happens, it's good for us. So I think that's the way to understand. It's a little hard to predict this, and I know you would like to predict it better, too. But for us, what we want to do is be in the right place, be with the customers, cover the ecosystem, get designed in, and then we're confident that as these evolutions go, we go.

Looking in the room here. I've got a couple on the webcast related to semiconductor technologies, but if anybody else has anything in the room, we can come back to it. So maybe I'll start with the first one on semiconductors. Can you talk about the integration of the semiconductor technology road map with the needs of your markets? And could you give us some proof points, examples of what semiconductors brings to the table that amplifies the other segment opportunities?

Right. I can start. So as I highlighted in my presentation, the semiconductor play an important role in all the capabilities we have within Littelfuse. So an example we saw about like our solid-state relays that goes into the EI market. We provide the power modules that go into this. Deepak mentioned in the -- in his presentation about the defibrillators and how our high-power IGBT is a part of the defibrillators. That's how -- another market. Dave in transportation, I think our TVS, our protection, overvoltage protection semiconductor is a big piece of the transportation business. I think it really is integrated across all the 3. I think we look at semiconductor as an enabling technology that can -- across all these 3 end markets. right? This is how we view it as a semiconductor, and this will continue to work very closely with the go-to-market teams with the leaders of the 3 markets to make sure that we provide the differentiated enabling technologies that allow us to win in the marketplace.

And this I think is an important one, too. So people ask about competition. And we have competition everywhere. We have competition in our power business. But we talk about our unique portfolio and we talk about our overvoltage protection. We actually have 2 main technologies in over voltage. We have a lot of products, but 2 main things. One of them is an MOV. It's a ceramic-based technology, and this is designed for very, very high surge applications, very high power, high surge applications, but it is a downside that it's kind of slow. But then you have the semiconductor protection technology, which is fast and high speed. That's what Tin is talking about. And we actually have both of those technolog, and we compete with people in both but we are the ones that have both. And maybe Corinne can talk a little bit about how we see some leverage of that across our market.

And that is a great example, Greg, because as I said in my presentation today, and again, I'm not going to go too technical, but like because of our semiconductor technology, we have very sharp clamping, so basically, we can really protect fast and quick and a very sharp. And that's a very high value for our customers, for systems.

And we have products where we're able to integrate both of those technologies together. That's also a unique opportunity that we have and how we're able to leverage the VA portfolio.

Great. And the follow-up is on actually protection semiconductors question being, you highlighted a priority to deploy R&D towards higher value, higher ASP solutions, 5 to 10x versus current products. Could you just provide some more color and detail on some of these specific areas, whether it's markets or technologies that you're prioritizing?

Yes. So as I said like in my presentation, like, hey, we see a big opportunity for us going to this high-voltage DC application, right? As I said, like this is a big transformation again. It's for a reason, customers are achieving significant gains, but the protection problem becomes a more challenging problem because it has to be ultrafast, it's very high power and it has to integrate multiple functionalities. And this is where I think this is where I say like we're going to deploy our R&D resources because we have like really deep domain expertise as a company in how to develop protection solutions and how to get the UL certification, how to do all of these things. This is actually very valuable. And when you deploy all of this and leverage all of our technology, we're not going to do it for the sake of integrating. We're doing it when we solve a customer problem, right? This is a key thing. As Greg highlighted, like customers want to deploy data, like they think this is a significant gain, but protection, they want someone to partner with someone to provide a solution. And this is where I feel like where we're going to deploy our R&D resources, we're going to leverage our domain expertise, and we can capture value because integrating for day, we're not going to capture value. That's how we capture value. That's how we deploy it, markets like data center, markets like grid, energy, transportation, high power...

Maybe just a little different style question here. But you talked, I think, multiple times today about software and firmware. I just kind of wondering what you can do if there's maybe a broader application of software strategy that you can deploy and if there's value in that and kind of how you think about that in terms of a potential M&A down the road for driving more value across your product portfolio?

Yes. Look, I think software is a core competency of our products. We're not a software company, but software is a core competency of our products. We're really a product company that sells system-level products and more and more system-level products are requiring software. And I would say the first place that happened was really in the industrial business, and you'll see some of those. So we have relays. We have ground fault protection relays, and these are solutions that have embedded devices that have software. With the addition of Basler, Basler has a big business on protection relays and actually the protection and control and like protection and control, which is used. The Basler systems are used for data center backup generation. The Basser systems are used for also -- most of my data center and also excitation systems, which is for large-scale generation has a lot of embedded software. Dave mentioned the embedded software inside of the automotive business. So we basically have embedded [indiscernible] software. So instead of now having a bunch of mechanical switches, it's a bunch of software-controlled, digitally controlled switches and the power control is now digitally controlled, and that was part of the value proposition that makes that platform flexible. So it's a competency of our company. We don't sell stand-alone software. Some of our -- we have some service opportunities. But I think you should think about the fact that embedded software is a core part of our products. And as we do more and more system products across our markets, we will end up doing more and more software as part of them. That's the way to think about it.

I've got a couple of financial questions. Maybe I'll do one on the webcast, and we'll get to Chris. The first one is on the financial model, this idea of a more resilient Littelfuse. Can you talk a bit more some of the structural changes you've made that reduce and can reduce that potential earnings volatility? What's the last part? The structural changes you've made that can reduce your potential earnings volatility.

Yes. I think, look, as I kind of think about a more resilient company moving forward, I think it comes down to the macro is going to do what it's going to do. It's the renewed focus on growth, the focus on end markets, is sharpening our focus, as Greg has laid out, is what gives us more conviction in terms of being able to create a company that's going to be more resilient, more financially stable as we move forward, regardless of what the macro does, right? So that's one. I'd say the second thing that we've spent a lot of time talking about, which is an important part of this whole earnings profile, is operational excellence is scaling the operations. It's really making sure our businesses are running with a standard set of KPIs, so we can hold people accountable and ensure that our margin profile is sustainable and repeatable as we think about the 5 years, right? And then lastly, I'd say, David, to answer this question, the last one I'd make is it goes back to the M&A strategy, right? If M&A is going to be a big part of our strategy, I know Baxter is one example, and it's near term, but what we want to do is buy companies like Baxter that fit the strategy and then be able to integrate them and make sure, right, we deliver on the financial commitments that we made. So those are the things that we're focused on. Some, of course, are, to your point, structural or different, but a part of this is just really being focused on things that matter and spending our time where it matters.

I just want to elaborate on that. So yes, look, I think one of the key things about our strategy now is spend a lot more time kind of thinking a company-wide market-driven strategy. I think that's a key thing to understand a company-wide market and we identified what's the high-growth opportunities. You heard them talked about and aerospace and defense is one of those high-growth opportunities, which, by the way, we've participated for a long time and Deepak gave the example. We participated for a long time, but it hasn't had the amount of strategic focus. One other thing to understand is that -- and this is a unique capability we have that we're doing a lot better. Every one of these high-growth opportunities actually has a leader inside the company because Avi made this point, all of our segments sell across our markets. Actually, all of our segments sell having opportunities and high-growth opportunities. And so that's the magic we have is we have that unique portfolio across all of our business. So it's a focus area for us now. That's for sure. We're putting a little bit more disciplined focus on that, and it starts with what the customer architectures are and going from there. So it is something that we are focused on probably more than the past. That's the first thing. And the second thing is those 3 high-growth opportunities are the market focus for M&A, aerospace and defense, data center and grid utility. So you're right that we also plan to lean into M&A in those areas. And maybe Deepak can talk a little more about how we've been doing it for a long time, but also some of the increased focus.

About the...

Aerospace and defense.

Sorry? Aerospace and defense. Yes, so we've been working with the accounts there for the last 4, 5 years, I would say, but really building upon it more now. And what we found is that our portfolio actually -- with the new go-to-market, we're really trying to pull the whole portfolio into that. We do have an existing number in the few hundred million dollar range, I think somewhere in that range that we're doing today. But a lot more focused on what the target -- the target M&A targets would be for us that we are working on right now. So I'm working with Abhi to help on that.

Thank you. We've got about 5 to 6 more minutes left. I see a question in the front here.

Yes. Maybe just a financial question would be. On the optimization efforts, you outlined low single-digit offset to the organic growth targets and then $50 million of EBITDA opportunity. Can we maybe just unpack that in terms of where that's coming from? I would assume it's transportation, it's probably the power semi portfolio and just the staging of that. Should we expect to see these impacts nearer term? Or should it be pretty spread out over the next 5 years?

Yes. So as I said, the $50 million, that you see in the EBITDA bridge is our best view of where we are today. It is fair to say and confirm what you just said, which is a portion of that is tied to the work that Karim is doing around power semi and that Gabe is talking about in terms of -- but for us, this is not a onetime exercise. We're done and we move on. This is -- we're going to do this annually to ensure that we constantly look at our footprint, constantly look at our product portfolio and ensure wherever there is things that are not core to us, we're working through it, okay? So that's step one. As you think about the timing and the cadence of how this is going to work, a chunk of this $50 million is tied to footprint rationalization. And as you know, and I know, it takes a little longer than a quarter to do this. So I would say as you -- as we think about this $50 million, it's fair to say over the next -- and as we make progress through the year, we'll keep the teams updated through our quarterly earnings calls. But I'd say this is more 12 to 18 to 24 months as we kind of solidify our strategy, solidify what footprint makes sense, what doesn't, that's going to come through over the P&L. And we'll be fully transparent in terms of quarter-by-quarter, how much are we recognized.

I did have one related margin question and follow-up here from the webcast. Just in light of the 2030 adjusted EBITDA margin target, 24% to 26%, excuse me. How do you think about the cadence from where you are today to that target and some of the drivers of that? And how do we think about the performance through potential cycles?

Yes. So first of all, when I think about cadence and think about where we are, we just announced Q1 earnings. So if you think about the company, we grew margins 280 basis points on a year-over-year basis. So every single segment demonstrated margin improvement on a year-over-year basis, okay? So as I kind of think about where we are and the work we're doing is starting to show up in the P&L. what are the factors that are assumed in this financial model to get us from 21% exiting '25 to 24% to 26%, A couple of different things. First of all, look, we all know when our top line grows, we see volume leverage that flows through to the bottom line. So that's one piece of what's baked into the EBITDA expansion. Number two is the operational execution that we've been talking about is the work that we're talking about in terms of rightsizing our footprint. The work we're talking about driving standard KPIs, really scaling up our operational execution that's baked into it. Third, the $50 million that you saw in there that Luke just asked about in terms of, hey, you're losing 1 point to 2 points of growth. However, you're seeing $50 million of EBITDA improvement. That's a portion of that. So that's how we're thinking about it. It's volume leverage, it's continued operational execution and it's rationalizing our footprint, rationalizing our products where it makes sense to improve our profitability as we move forward. Look, through cycles, I mean, usually, our conversion rate as we see organic growth is 30% to 35%. And what we're going to do is work really hard towards ensuring on a -- in a world where we are going down organically when the macro is where it is, we're going to work for the same thing and rightsize our businesses to align for the volume that we see.

We've got about 2 minutes left. So if there's any one last question in the room here, it's all yours, Mike.

Yes. Maybe I'll repeat that one because I don't think it picked up on the microphone. Thanks, Mike. The question was regarding the transportation and logistics market, our positioning in China and with those local OEMs in case you couldn't hear it on the webcast.

Yes. Great question, Mike. What I will tell you is we are engaged with the leading OEMs. Obviously, there is a significant number of players in China, but we are engaged with the leading OEMs, many of which are looking to expand on a more broad global and geographical basis. And that's kind of one of the real differentiators we have is we have a global footprint to support that expansion. So they trust our brand. They like our brand, the reliability of it, the performance of it, our ability to bring in a larger portion of our large portfolio to bear on solutions, but also the fact that we span across low, medium and high voltage. And as they move into other territories, we're right there with them to support that.

And one other thing I'll say, which is true actually in transportation and across our business, we -- China is an important region. We also manufacture in China. And our strategy is more and more to try to be in region manufacturing. So we bring a lot of our products actually for the transportation business are manufactured in China, for example, and some of those same products are also manufactured elsewhere globally for other customers. So that's another way we support China and global customers that actually all want in-region manufacturing.

That's a really great point. I'll just build on what Greg said. We have local sales, product management, engineering teams and manufacturing to support. And to Greg's point, as they move, we have manufacturing capabilities there to help.

Great. Thanks, everyone. This concludes the Q&A section of the presentation. Thanks, everyone, for spending the time with us this morning. Now very briefly, I just want to remind you that we do have lunch and product displays to my right of these double doors. So we hope you're willing to spend the next hour with us and happy to walk you through many of the technologies and opportunities that we discussed with you today. Thanks, everyone.

Thank you.