Kimball Electronics, Inc. · NASDAQ:KE
Kimball Electronics — Sidoti Small Cap Conference December 2022
25 slides from Kimball Electronics's conference presentation, Dec 7, 2022
Slide 1: Sidoti Small Cap Conference
Sidoti Small Cap Conference December 7, 2022 Kimball Electronics | 1
Slide 2: Safe Harbor Statement
Kimball Electronics (Nasdaq: KE) Safe Harbor Statement Certain statements contained within this presentation may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict
Slide 3: At a Glance
At a Glance Kimball Electronics Kimball Electronics | 3
Slide 4: Mission, Purpose, and Vision & Strategy
Mission, Purpose, and Vision & Strategy Our guide to lasting relationships and global success Kimball Electronics | 4
Slide 5: A rich history of growth
Kimball Electronics A rich history of growth 2021 CELEBRATION 1961 OF 60 YEARS KIMBALL 1985 2014 2015 INTRODUCTION ELECTRONICS BEGINNING OF SPIN-OFF FROM OF KIMBALL FOUNDED AUTOMOTIVE KIMBALL ROMANIA MEDICAL VERTICAL INTERNATIONAL SOLUTIONS 1950 JASPER, IN MARKET NEW GLOBAL BEGAN 2007 JASPER CORPORA
Slide 6: Competitive Advantage
Competitive Advantage Global footprint Kimball Electronics | 6
Slide 7: End-to-End Partnership
End-to-End Partnership Single-source for the most exacting, stringent, mission-critical, high reliability, high quality products Design & Development Prototyping NPI Manufacturing Testing Aftermarket Support • Integrated design • Dedicated team & • Robust process for • Partnership - work • Focus tes
Slide 8: Award-winning service and long-term relationships
How We Deliver Award-winning service and long-term relationships Circuits Assembly Service Excellence Awards • Nine consecutive years winning awards for excellence in multiple categories • Quality • Dependability / timely delivery • Responsiveness • Technology • Awards based solely on direct custome
Slide 9: The Operating Environment Remains Challenging
The Operating Environment Remains Challenging Our team continues to navigate these unprecedented circumstances by focusing on what we can control • Health & safety of our associates • Not just their physical well-being • Mental health is as important as ever • The global supply chain • Signs of a gr
Slide 10: Record top-line results in Q1 with robust growth in all vertical markets
Fiscal 2023 Record top-line results in Q1 with robust growth in all vertical markets Net Sales $406 $293 +39% Q1 ‘22 Q1 ‘23 FX unfavorably impacted sales by 5% in Q1 Kimball Electronics | 10
Slide 11: Poised for Growth: Automotive Market
Poised for Growth: Automotive Market Automotive was our best performing business in the first quarter of fiscal 2023 • Record net sales of $185 million • 43% increase compared to Q1 fiscal 2022 Kimball Electronics | 11
Slide 12: Industry Megatrends Will Fuel Growth
Industry Megatrends Will Fuel Growth Our manufacturing competencies align well with the emerging technologies Unparalleled Automotive Electronics Manufacturing Experience • We have over 37 years of experience producing the highest quality electronic assemblies that meet the most stringent regulatory
Slide 13: Poised for Growth: Medical Market
Poised for Growth: Medical Market Medical posted top-line growth in excess of 30% for two consecutive quarters • Net sales in the first quarter of fiscal 2023 totaled $115 million • 35% increase compared to Q1 fiscal 2022 Representative Customers Medical Healthcare Healthcare Kimball Electronics | 1
Slide 14: Kimball Medical Solutions
Kimball Medical Solutions Full service of capabilities extends beyond electronics Understanding Customer Needs • Medical customers have stringent standards for their products • Our capabilities are uniquely tailored to meet the requirements and challenges of the medical market Kimball Medical Soluti
Slide 15: Poised for Growth: Industrial Market
Poised for Growth: Industrial Market Industrial, which we frequently call “green & clean”, now includes Public Safety • Net sales in the first quarter of fiscal 2023 totaled $101 million • 35% increase compared to the recasted Q1 fiscal 2022 Representative Customers Kimball Electronics | 15
Slide 16: Support for Evolving Markets
Support for Evolving Markets Products for smart cities, energy efficiency, and energy management Helping Leading the Way in Smart Smart Electronic Access Control Meter Manufacturing Products • Smart meters are electronic • Our manufacturing for Public Safety measurement devices used by utility appli
Slide 17: Fiscal 2023 guidance
Fiscal 2023 Recently affirmed guidance for fiscal 2023 with results expected at high-end of range for sales and op margin Net sales range Net sales estimated to be in the range of $1.6 - $1.7 $1.6 - $1.7 billion billion, a 19% - 26% increase compared to fiscal 2022 Increase compared to fiscal 2022 1
Slide 18: The Outlook
The Outlook We are very bullish on the long-term prospects for the company Fiscal 2023 includes record top-line growth • Expect sequential quarterly increases throughout fiscal 2023 • Emphasis on aligning production forecasts with material availability and manufacturing capacity • Increasing cash fl
Slide 19: Capital Allocation
Capital Allocation Investing in growth and returning excess cash to Share Owners Capital Allocation ($ in millions) Reinvest in the business – Significant CapEx spending to fuel multi-year organic $100 growth and expansion in ROIC $90 $80 Acquisitions – $50+ million of acquisitions $70 over past sev
Slide 20: Increasing Our Footprint
Increasing Our Footprint Facility Expansions Align with Customer Growth Thailand 38% We’re underway with 370,000 square feet of new facility expansions, representing an • Expansion has more than doubled the capacity of our increase of 38% capacity manufacturing facility worldwide. Mexico • Expansion
Slide 21: Program life cycle
THESE PROGRAMS PROGRESS at a slow and steady pace, allowing for long-term Program life cycle sustainable growth gained through sourcing efficiencies and process improvements. Program Lifecycle: As new programs mature, volumes ramp, Initial investments and cost efficiencies are gained volume ramp and
Slide 22: Poised for Growth: Our Culture
Poised for Growth: Our Culture We demonstrate our company purpose by Creating Quality for Life for our people through a respectful and rewarding company culture that encourages meaningful work, as well as for our communities through our positive societal impacts. Kimball Electronics | 22
Slide 23: People are the Company
Poised for Growth: Our Culture People are the Company Diversity, Equity, Inclusion & Belonging Guiding Principles • As a human-centered company focused • Each year, employees around the world on Diversity, Equity, Inclusion & Belonging rate us on how well we are living up to (DEI&B), we promote mult
Slide 24: Summary: Poised for Growth
Summary Poised for Growth Unique manufacturing capabilities and award-winning Making customer service investments in our • Support vertical end-markets benefiting from industry future megatrends that will drive long-term growth • Emerging from the challenging operating environment with strength Leve
Slide 25: For more information, please contact:
For more information, please contact: Andy Regrut Vice President, Investor Relations 812 - 827- 4151 andy.regrut@kimballelectronics.com Kimball Electronics | 25
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