Slide 1: Baird Industrial Conference Investor Presentation
Baird Industrial Conference Investor Presentation November 9, 2010
Slide 2: Safe Harbor
Safe Harbor 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 provided under the sec
Slide 3: Methode Is
Methode Is
Slide 4: Company overview and fiscal 2010 sales mix
A leading developer of custom engineered and application specific products and solutions Serving a diversified group of customers, markets, and regions of the world Multi-national company with headquarters in Chicago and global design, manufacturing and testing capabilities 2,900+ employees worldwid
Slide 5: Investment Appeals
Investment Appeals Focus on value added products that deliver genuine differentiation for our customers and higher margins for our shareholders Repositioned global manufacturing footprint to lower cost base and breakeven point Capitalizing on fundamental changes in large, growth markets (+$14 billio
Slide 6: Methode Is Poised For Improved Performance
Methode Is Poised For Improved Performance
Slide 7: Restructured and Repositioned
Restructured and Repositioned Strategically exited low margin, legacy, North American auto components and connector businesses Restructured and repositioned global manufacturing footprint lowering breakeven point Major announced initiatives completed in fiscal 2010 Diversified product and customer b
Slide 8: Opportunity To Grow and Increase Shareholder Value
Opportunity To Grow and Increase Shareholder Value “World Class” automotive manufacturing pedigree ensures strong design, engineering and manufacturing capabilities throughout Methode Lean manufacturing practices implemented company wide Non-Auto User Interface, Power Solutions, Sensors and Data Sol
Slide 9: Superior Global Engineering And Manufacturing Capabilities
Superior Global Engineering And Manufacturing Capabilities 200+ Engineers located in 14 centers worldwide 3 Primary manufacturing campuses Quality systems meeting rigorous “best in class” standards Award-winning lean manufacturing, vertically integrated operations Advanced process technologies Globa
Slide 10: Customer Focused, Global Sales Structure
Customer Focused, Global Sales Structure 15 customer support offices across 4 continents 80+ sales professionals supported by more than 300 local reps and partners Extensive training and knowledge of Methode’s products and solutions Investing in Methode’s future by maintaining, and as necessary, enh
Slide 11: Management Team Focused On Shareholder Value
Management Team Focused On Shareholder Value Executive team together for over eight years Monthly sales and operations review of business units Division management expected to bring solutions to problems Annual incentive compensation based on MBO’s and long-term equity incentive compensation based o
Slide 12: Rebuilding Methode's Revenue Stream
12 Rebuilding Methode’s Revenue Stream Based on projections as of today Includes GM-ICS award Majority of business is 18-24 months from award to start of production Full launch typically 36 months after award Assumes base business maintained and goes end of life at average of 2% to 4% per year, but
Slide 13: UI Technology & Innovation Provide Automotive Market Opportunities
UI Technology & Innovation Provide Automotive Market Opportunities GM Award “Next generation” Integrated Center Stack program for multiple GM vehicle platforms Center stacks to be featured on certain vehicles starting in model year 2013 Expected to have a five-year program life Production will begin
Slide 14: SEC Reporting Segments and Market Paths
SEC Reporting Segments FY 2010 Revenue (% of Total) Methode’s Market Paths User Interfaces Sensors and Switches Power Solutions Data Solutions Automotive 53% Interconnect 33% Power Products 11% Other 3% Reporting Segments and Markets 14
Slide 15: User Interface (UI) Solutions
User Interface (UI) Solutions
Slide 16: UI Technology Enabling Changes in Functionality and Form
UI Technology Enabling Changes in Functionality and Form 16 UI broadly defined as An interaction of people and technology through an interface, e.g., the buttons of a vending machine, the center console of a car, the touch interface on a wall oven, etc. UI: $6 to $8 billion total available market Ex
Slide 17: Methode's UI Technology Enabling Changes in Functionality and Form
Methode’s UI Technology Enabling Changes in Functionality and Form 17 High Resolution Touch Screens Base Model to Top of Line Flexibility Environmentally Robust Point of Sale Integrated Class A Styling with Functionality Work Safely from Distance User Authentication and Identification Easy to Clean
Slide 18: UI Technology Toolbox
UI Technology Toolbox Field Effect Touchscreen (Harsh/Severe environment) **Immersion licensee Integrated Back-Lighting Haptics** 18 User Interface evolution Tactile, non-visual controls Visual touch interfaces Intelligent products
Slide 19: Current UI Solutions
Current UI Solutions Interconnect Segment Interface panels Remote controls Touchscreens GUI (Graphic User Interface) Software Rotary Haptic controls Field effect touch cell, keypad Biometric Identification Automotive Segment Center stacks Switches and switchbanks GUI (Graphic User Interface) Softwar
Slide 20: UI-Interconnect Solutions Are Enabling Differentiation
UI-Interconnect Solutions Are Enabling Differentiation TouchSensor technology is used on 70% of North American appliances that use solid-state touch interfaces User interface solutions for medical, industrial and vending applications will make devices easier to use and more reliable 20 Whirlpool Kit
Slide 21: World Class Safety Solutions
World Class Safety Solutions Hetronic safety radio remotes are used on five continents controlling multi-million dollar equipment “Drop safe”, touch and biometric technologies are enabling safer and more efficient operations Hetronic Locomotive Radio Remote Control Hetronic Radio Remote Control For
Slide 22: UI Automotive Solutions Provide Innovation and Differentiation
Expanded TouchSensor technology from white goods to automotive market Innovated automotive switches From simple commodities to custom engineered modular solutions From strictly competing on price to winning business based on technical knowledge and quality Improved Reliability Backed by over 200 mil
Slide 23: Touch Sensitive Technology on Center Stacks
Touch Sensitive Technology on Center Stacks MyFord Touch and MyLincoln Touch Touch sensitive technology allows driver to engage and operate center console and climate controls with the swipe of a finger instead of traditional buttons and switches Featuring solid-state, field-effect technology Unique
Slide 24: Touch Sensitive Technology on Center Stacks
Touch Sensitive Technology on Center Stacks Methode provides entire center console assembly, which includes solid state touch points, (less touchscreen), 24
Slide 25: UI Innovation Provides Opportunities To Reach New Automotive Customers
UI Innovation Provides Opportunities To Reach New Automotive Customers Solid state control panel Kia Motors approached Methode to create a new, in-car infotainment system to debut at the 2010 Consumer Electronic Show Methode designed an in-car infotainment system with a solid-state digital control p
Slide 26: Hyundai Integrated Center Console Program
Hyundai Integrated center console program utilizing TouchSensor technology Up to $2 million in annual revenues Begin production in the second quarter of fiscal 2012 Also supporting concept vehicle for next auto show UI Innovation Provides Opportunities To Reach New Automotive Customers 27
Slide 27: Sensor and Switch Solutions Increasing Safety, Security and Performance
Sensor and Switch Solutions Increasing Safety, Security and Performance 29 $3 billion total available market for Methode Technology Toolbox Eddy Current Hall Effect Optical Field Effect / Capacitive Force-Sensing Resistor** Magneto-elastic (MDI) Multi-spectral Imaging** Conductive printable inks Thi
Slide 28: Automotive Segment Sensor and Switch Solutions
Automotive Segment Sensor and Switch Solutions 30 Current Solutions Steering Angle Sensor Transmission – Torque Clutch Linear Position Fluid Level Opportunities State of Charge Biometric
Slide 29: Data Solutions
Data Solutions
Slide 30: Data Solutions Provides Advanced, Versatile Solutions
Data Solutions Provides Advanced, Versatile Solutions Supports telecommunications, data communications and data center industries Stand apart through innovation, diverse range of products and focus on customer satisfaction Provides advanced, versatile solutions Technology Toolbox RFID Near field RF
Slide 31: Data Solutions Provides Advanced, Versatile Solutions
Data Solutions Provides Advanced, Versatile Solutions 33 FTTx Network Solutions Harsh Environment Network Harsh Environment Network Fiber Optic Test Equipment EMI Receptacles Automated Intelligent Solutions Design & Installation Services Data Center Infrastructure Solutions High Speed Copper Transce
Slide 32: Power Solutions
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Slide 33: Power Solutions Technology Toolbox
$5 to $10 billion total available market for Methode Technology Toolbox Heat Syncs Tribotek™ Contacts Heavy Copper PCBs** Laminated Busbars **Strategic partner Power Solutions Mean Power Possibilities Powerflex ™cable FusionLug™ Sonicrimp™ 35
Slide 34: Power Solutions Mean Power Possibilities
Power Solutions Mean Power Possibilities Design and manufacture innovative products that meet requirements of variety of high-demand applications Collaborate with customers to develop robust systems that meet their electrical and thermal performance, weight and cost needs From prototype to revenue i
Slide 35: Growth in Hybrids Creates Opportunities For Power Solutions
Growth in Hybrids Creates Opportunities For Power Solutions Transportation Segment Hybrid vehicles require power distribution components Powerflex™ and FusionLug® are designed into electric vehicle controllers and charging systems Investment in Developer of chargers, inverters, and battery systems f
Slide 36: Power Solutions Mean Power Possibilities
Power Solutions Mean Power Possibilities Thermal Management Power Connector Power Cabling Power PCBs Laminated Bus Bar Bus Bar Powder Coated Bus Bar Thermal Management High-Precision, Machined Bus Bar Power PCBs 38 Power PCBs Power Cables and FusionLug Power Connectors and Contacts Thermal Managemen
Slide 37: Financial Performance
Financial Performance i ricce szcrmorcs.ne
Slide 38: Design, Engineering and SG&A Post Restructuring
40 Design, Engineering and SG&A Post Restructuring We are taking a long-range view and looking towards the future Maintained core engineering resources throughout restructuring Incurring costs to recruit highly skilled technical employees necessary to launch new programs Consciously maintaining inve
Slide 39: Recent Financial History
41 Recent Financial History Maintained profitability through recession and restructuring 35 years of uninterrupted dividends $56.4 million cash on hand and no long-term debt * Millions + Earnings have been adjusted to eliminate restructuring charges and other one-time charges and credits Fiscal Peri
Slide 40: Conclusion
Conclusion
Slide 41: Methode Is Positioned For Growth
Methode Is Positioned For Growth Winning new business and new customers Global restructuring actions have lowered MEI’s revenue break-even point Diversified business model means reduced risk and volatility Global footprint differentiates and aligns us with larger global customers Conservative balanc
Slide 42: Baird Industrial Conference
Baird Industrial Conference Investor Presentation November 9, 2010