Slide 1: 2nd Quarter 2023 Earnings Release Supplemental Information
2nd Quarter 2023 Earnings Release Supplemental Information August 2, 2023
Slide 2: Safe Harbor
Safe Harbor Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial performa
Slide 3: Solid Q2 performance, in line with expectations
Q2 2023 Year-over-Year Solid Q2 performance, in line with expectations • Revenue down YoY primarily due to excess customer and channel REVENUE Non-GAAP ADJUSTED EBIT Non-GAAP DILUTED inventory and timing of defense ($M) GROSS PROFIT MARGIN* MARGIN* EPS* shipments. (%) (%) ($) • Gross Profit Margin o
Slide 4: Precision Devices
Q2 2023 Segment Performance Precision Devices REVENUE Non-GAAP GROSS PROFIT MARGIN* • Revenue down 20% YoY driven by ($M) (%) continued weak demand associated with excess channel inventory in the industrial and distribution markets and timing of shipments into the defense market • Gross Profit Margi
Slide 5: MedTech & Specialty Audio
Q2 2023 Segment Performance MedTech & Specialty Audio REVENUE Non-GAAP • Revenue better than expected as GROSS PROFIT MARGIN* ($M) (%) inventory cleared faster than anticipated • Revenue down versus prior year due to excess customer and channel inventory • Gross margin increased year-over- year on p
Slide 6: Consumer MEMS Microphones
Q2 2023 Segment Performance Consumer MEMS Microphones • Revenue declined YoY driven by REVENUE Non-GAAP GROSS PROFIT MARGIN* weak global demand for ($M) (%) smartphones, partially offset by growth in non-mobile applications • Gross margin up 340bps year- over-year driven by restructuring benefits, i
Slide 7: Q3 2023 Guidance
Outlook Q3 2023 Guidance GAAP ADJUSTMENTS NON-GAAP Revenue $170.0 to $180.0 million — $170.0 to $180.0 million Gross Profit Margin 41.2% to 43.2% 0.3 % 41.5% to 43.5% Diluted EPS $0.14 to $0.18 $0.12 $0.26 to $0.30 Q3 2023 GAAP results are expected to include approximately $0.06 per share in stock-b
Slide 8: Appendix
4 knowles Appendix
Slide 9: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non- GAAP Financial Measures Quarter Ended June 30, (in millions, except per share amounts) 2023 2022 Revenues $ 173.0 $ 188.0 Notes: Gross profit $ 73.7 $ 77.7 (1) In 2023, Other expenses relate to non-recurring professional service fees incurred Gross p
Slide 10: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non- GAAP Financial Measures Quarter Ended June 30, (in millions, except per share amounts) 2023 2022 Notes: Net earnings (loss) $ 13.6 $ (242.9) (2) The non-GAAP reconciling adjustments are those adjustments made to reconcile Earnings Interest expense, n
Slide 11: Historical Segment Data
Historical Segment Data Precision Devices MedTech & Specialty Audio Consumer MEMS Microphones Quarter Ended Quarter Ended Quarter Ended June 30, March 31, December 31, September 30, June 30, June 30, March 31, December 31, September 30, June 30, June 30, March 31, December 31, September 30, June 30,
Slide 12: Historical Segment Data
Historical Segment Data Precision Devices MedTech & Specialty Audio Consumer MEMS Microphones Quarter Ended Quarter Ended Quarter Ended June 30, March 31, December 31, September 30, June 30, June 30, March 31, December 31, September 30, June 30, June 30, March 31, December 31, September 30, June 30,
Slide 13: Reconciliation of Segment EBIT to Consolidated Net Earnings
Reconciliation of Segment EBIT to Consolidated Net Earnings Quarter Ended June 30, March 31, December 31, September 30, June 30, (in millions) 2023 2023 2022 2022 2022 Earnings (loss) before interest and income taxes Precision Devices $ 4.8 $ 10.7 $ 16.6 $ 16.2 $ 11.0 MedTech & Specialty Audio 23.6
Slide 14: Reconciliation of Net Debt
Reconciliation of Net Debt June 30, 2023 (in millions) Current maturities of long-term debt $ — Long-term debt 45.0 Total debt 45.0 Less: Cash and cash equivalents (54.4) Net debt (cash) $ (9.4) 14