Slide 1: Earnings Presentation First Quarter Fiscal 2025
Methode Electronics, Inc. Earnings Presentation First Quarter Fiscal 2025 September 5, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation forward-looking statements within the meaning of the Private Securities • Our lengthy sales cycle; Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current • Risks relating to our use of requirements contracts; even
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 (Loss), Adjusted Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted Inco
Slide 4: Agenda
Agenda ➢ CEO Introduction – Robert Cherry, VP Investor Relations ➢ Key Messages – Jon DeGaynor, President and CEO ➢ Q1 Business Update – Jon DeGaynor, President and CEO ➢ Q1 Financial Update – David Rawden, Interim CFO ➢ Q&A Session – All 4
Slide 5: Introduction – Jon DeGaynor, President & CEO
Introduction – Jon DeGaynor, President & CEO ➢ 35-Year career in engineered-products with diverse experience across operations, technology, and strategy ➢ President and CEO of Stoneridge, Inc. from 2015 to 2023 ➢ Proven track record of driving strategic transformations leading to significant growth
Slide 6: Key Messages
Key Messages 1 On journey to transform business while positioning it for long-term value creation 2 Intense focus on executing over 30 program launches while improving quality and delivery 3 Immediate actions being taken to address execution and costs; Strategy will follow thereafter 4 Building exec
Slide 7: What Does “Transform” Mean?
What Does “Transform” Mean? Reset Performance Build and Grow Capabilities Shift Our Culture 7 Earning the “Right” to Write the Next Chapter of Methode’s History
Slide 8: FY25 Q1 Overview
FY25 Q1 Overview Key FY25 Q1 Sales On Track with Expectations; Pre-Tax Loss Better than Expected Financial Metrics Pre-tax loss driven by lower net sales due to program transitions and by program launch costs Net Sales $259M EV Activity Rebounded from Q4 with Further Growth Expected Adj. EBITDA* $10
Slide 9: FY25 Q1 Select Business Awards
FY25 Q1 Select Business Awards Reported Awards* (TTM) $ in millions $140 $120 $100 • EV Busbar Assembly for U.S. Auto OEM $80 $140 + • EV Busbar Assembly for U.S. Auto OEM $77M* $60 • Busbar Assembly for U.S. Defense OEM $40 $80 + • Busbar Assembly for U.S. Data Center Supplier $20 $20 + $20 + $0 +
Slide 10: FY24 – FY26 Sales Bridge
FY24 – FY26 Sales Bridge “Positive Organic ($ in millions) “Flat” + Sales Growth” + to FY24 Other Other GM EV Lighting Stellantis GM Appliance Stellantis Launches, Launches, Program Program Program Program Program Program Roll Offs & Roll Offs & Roll Offs* Roll Off* Launches Roll Offs* Roll Off Laun
Slide 11: Summary
Summary FY25 Q1 ➢ Net Sales On Track with Expectations; Pre-Tax Loss Better than Expected ➢ EV Activity Rebounded from Q4 – 18% of Total Sales ➢ Key Market Headwinds in Auto, Commercial Vehicle and Off-Road Equipment Markets ➢ Program Awards Solid for Second Consecutive Quarter – Over $80M ➢ Acute F
Slide 12: Financial Results
Q@AETHODE ELECTRONICS Financial Results
Slide 13: FY25 Q1 Net Sales & Income from Operations
FY25 Q1 Net Sales & Income from Operations FY24 Q1 v. FY25 Q1 FY24 Q4 v. FY25 Q1 FY25 Q1 Performance Net Sales ($M) (11%) (7%) ▪ Full effect from auto program roll-off in Asia ▪ Lighting market weakness in commercial vehicle $289.7 $277.3 and construction/agriculture equipment $258.5 $258.5 ▪ Growth
Slide 14: FY25 Q1 EBITDA
FY25 Q1 EBITDA FY24 Q1 v. FY25 Q1 FY24 Q4 v. FY25 Q1 FY25 Q1 Performance Adjusted EBITDA ($M)* ($9.5) $4.5 ▪ Lower sales and gross profit drove Y/Y decline ▪ Improved gross profit despite lower sales drove Q/Q improvement $19.3 $9.8 $9.8 $5.3 FY24 Q1 FY25 Q1 FY24 Q4 FY25 Q1 As % of Net Sales 6.7% 3.
Slide 15: FY25 Q1 Adjusted Pre-Tax Income & Earnings Per Share
FY25 Q1 Adjusted Pre-Tax Income & Earnings Per Share FY24 Q1 v. FY25 Q1 FY24 Q4 v. FY25 Q1 FY25 Q1 Performance Adj. Pre-Tax Income/ Loss ($M)* ($11.6) $4.7 ▪ Lower net sales main driver of Y/Y decline $2.5 ▪ Gross profit drove Q/Q improvement ▪ Exceeded guidance of “similar to” FY24 Q4 ($9.1) ($9.1)
Slide 16: FY25 Q1 Balance Sheet
FY25 Q1 Balance Sheet Total Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) ($34.9) $330.9 ($50.2) $15.3 $296.0 $161.5 $169.4 $184.7 $111.3 FY24 Q4 FY25 Q1 FY24 Q4 FY25 Q1 FY24 Q4 FY25 Q1 16 Total Debt Lowered; All Debt Covenants in Compliance * See Appendix for reconciliation to GAAP
Slide 17: FY25 Q1 Free Cash Flow
FY25 Q1 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) $16.5 ($0.2) $16.7 $10.9 $13.8 $13.6 ($2.7) ($5.6) ($19.4) FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 17 Higher Cash Generation Drove Improved Free Cash Flow * See Appendix for re
Slide 18: Guidance
Guidance Fiscal 2025 Full Year Guidance Affirmed • Net sales to be similar to fiscal 2024 • Adjusted pre-tax income to be approaching breakeven • Adjusted pre-tax income for the second half of fiscal 2025 is expected to be notably stronger than the first half Fiscal 2025 Guidance Assumptions • Depre
Slide 19: Thank You
AETHODE ELECTRONICS Thank You
Slide 20: Appendix
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 July 27, 2024 Partial write-off of unamortized debt Purchase issuance Restructuring Valuat
Slide 21: Appendix
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 27, 2024 Taxes and Purchase costs related Us. accounting Net gain tothe GAAP Goodwil
Slide 22: Appendix
AETHODE Ap pe n d ix ELECTRONICS METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) ‘Three Months Ended July 27, 2024 Tuly 29, 2023 EBITD. Net (Joss) income $ s3) $ 09 Income tax expense 52 01 Interest expense, net 48 28 Amortization of intangibl
Slide 23: Appendix
AETHODE ELECTRONICS Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) ‘Three Months Ended Fiscal Year Ended ‘April27,2024 April 29,2023 “April27, 2024 April 29, 2023 EBITDA: Net (Joss) income S$ (57.3) $ 81 $ (123.3) $ 1 Income tax (ben