Slide 1: Fiscal 2023 Fourth Quarter & Full Year Financial Results
FISCAL 2023 FOURTH QUARTER & FULL YEAR FINANCIAL RESULTS June 22, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward- looking statements are subject to the safe harbor protection provid
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Methode uses Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Income from Operations, Adjusted Selling and Admin
Slide 4: Q4 Highlights
FY23 Q4 Highlights Quarterly Performance Electric Vehicle Activity Sales of $301M 23% of Consolidated Sales, Record Sales on $ Basis Sales Up 9% Excluding FX and Cost Recovery $215M+ in EV Program Awards Lighting and Power Solutions Driving Growth FY24 EV Sales Dependent on Take Rates & Roll Offs Bu
Slide 5: Q4 Select Business Awards
FY23 Q4 Select Business Awards Electric Vehicles Cumulative Electric Vehicle • Busbar Assembly for European Auto OEM $ in millions Awards Since FY21* • Busbar Assembly for U.S. Auto OEM $600 • Busbar Assembly for U.S. Auto OEM $215M* • Power Distribution Unit for U.S. Truck OEM $500 • Center Stop La
Slide 6: Highlights
FY23 Highlights Full Year Performance Electric Vehicle Activity Record Sales of $1,180 Million Record EV Application Sales Up 7% Excluding FX and Cost Recovery 21% of FY23 Consolidated Sales Business Activity Balance Sheet & Cash Flow Material and Manufacturing Cost Inflation Free Cash Flow of $91M
Slide 7: FY23 – FY25 Sales Bridge
FY23 – FY25 Sales Bridge ($ in millions) Program Nordic New Program Market Program New Program Market Roll Offs Lights* Launches & Other Roll Offs Launches & Other FY23 FY24 Guidance FY25 Guidance Actual Midpoint Midpoint * Methode’s estimate based on Nordic Light’s historical performance, their cur
Slide 8: Summary
Summary FY23 Highlights Record Sales Driven by 29%* Growth in Industrial Segment Record EV Application Sales Strong Free Cash Flow Acquisition of Nordic Lights FY24-25 Sales Guidance Program Roll Offs and Market Headwinds in Commercial Vehicle, Data Center, & eBike Driving Lower Organic Sa
Slide 9: Financial Results
QAETHODE ELECTRONICS Financial Results
Slide 10: Q4 Net Sales & Income from Operations
FY23 Q4 Net Sales & Income from Operations Net Sales Income from Adjusted Income ($M) Operations from Operations* ($M) ($M) 4.3% $288.7 $301.2 (41.8%) 8.2% $14.6 $14.6 $15.8 $8.5 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 + Commercial Vehicle Lighting − Nordic Lights Acquisition Costs Excludes:
Slide 11: Q4 Earnings per Share & EBITDA
FY23 Q4 Earnings per Share & EBITDA Diluted Earnings Adjusted Diluted EBITDA* Adjusted EBITDA* per Share Earnings per Share* ($M) ($M) ($) ($) (28.9%) 1.6% (48.8%) (51.2%) $30.8 $30.8 $31.3 $0.43 $0.43 $21.9 $0.22 $0.21 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 − Nordic Lights
Slide 12: Q4 Balance Sheet
FY23 Q4 Balance Sheet Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) $96.3 $306.8 ($15.0) $111.3 $210.5 $172.0 $157.0 $149.8 $38.5 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 * See Appendix for reconciliation to GAAP 12 Debt Increase Mainly Driven by Nordic Lights Acquisition
Slide 13: Q4 Free Cash Flow
FY23 Q4 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) $7.0 $4.2 $49.0 $42.0 $2.8 $33.6 $37.8 $8.4 $11.2 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 * See Appendix for reconciliation to GAAP 13 Strong Free Cash Flow Mainly Due to Worki
Slide 14: Net Sales & Income from Operations
FY23 Net Sales & Income from Operations Net Sales Income from Adjusted Income ($M) Operations from Operations* ($M) ($M) 1.4% $1,163.6 $1,179.6 (19.1%) (12.5%) $111.7 $90.4 $111.7 $97.7 FY22 FY23 FY22 FY23 FY22 FY23 + Industrial Segment − Nordic Lights Acquisition Costs Excludes: − North American Au
Slide 15: Earnings per Share & EBITDA
FY23 Earnings per Share & EBITDA Diluted Earnings Adjusted Diluted EBITDA* Adjusted EBITDA* per Share Earnings per Share* ($M) ($M) ($) ($) (22.2%) (22.6%) (18.5%) (13.1%) $2.70 $2.70 $174.6 $174.6 $2.10 $2.09 $142.3 $151.7 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 − Nordic Lights Acquisition Costs Ex
Slide 16: Free Cash Flow
FY23 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) $34.0 $30.0 $132.8 $98.8 $4.0 $90.8 $60.8 $38.0 $42.0 FY22 FY23 FY22 FY23 FY22 FY23 * See Appendix for reconciliation to GAAP 16 Strong Free Cash Flow Mainly Due to Working Capital Improv
Slide 17: Guidance
Guidance Fiscal 2024 Full Year Guidance • Net sales range of $1,150 - $1,200 million • Diluted earnings per share range of $1.55 - $1.75 Fiscal 2024 Guidance Assumptions • Includes the Nordic Lights Group Corporation acquisition • Income Tax Rate at 18% - 20% with no discrete tax benefits or expense
Slide 18: Thank You
AETHODE ELECTRONICS Thank You
Slide 19: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) Three Months Ended Fiscal Year Ended ‘April 29, 2023 April 30,2022, “April 29, 2023 April 30, 2022 EBITDA: ‘Net income $ 81 $ 16.2 $ 771 $ 102.2 Income tax (benefit) expense (0.3) 1.0 13
Slide 20: Appendix
(AETHODE ELECTRONICS Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Three Months Ended April 29, 2023 Taxes and costs related to the reorganization U.S. GAA
Slide 21: Appendix
Appendix METHODE Reconciliation of Non-GAAP Financial Measures for the Three Months Ended April 30, 2022 Taxes and costs related to the reorganization U.S. GAAP Acquisition of a foreign (as reported) costs subsidiary Selling and administrative expenses $ 356 $ —$ —$ Selling and administrative expens