Slide 1: Fiscal 2023 Second Quarter Financial Results
FISCAL 2023 SECOND QUARTER FINANCIAL RESULTS December 1, 2022
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 certain non-GAAP financial measures, such as EBITDA, Net Debt, and Free Cash Flow. Reconciliation to the near
Slide 4: FY23 Q2 Highlights
FY23 Q2 Highlights Quarterly Performance Electric Vehicle Activity Record Sales of $316M Reached 20% of Consolidated Sales Record Industrial Segment Sales of $104M Expecting 20% in FY23 Power and Lighting Solutions Driving Growth 80%+ of Program Awards in EV Business Activity Balance Sheet & Cash Fl
Slide 5: Select Business Awards
FY23 Q2 Select Business Awards Electric Vehicles • Battery Busbar Assembly for U.S. Auto OEM • Motor Busbar Assembly for U.S. Auto OEM • Battery Busbar Assembly for European Auto OEM • Inverter Busbar Assembly for European Auto OEM $60M * • Power Distribution Unit for U.S. Truck OEM • Power Connecto
Slide 6: Financial Results
QAETHODE ELECTRONICS Financial Results
Slide 7: Income Statement
FY23 Q2 Income Statement Net Sales Income from Diluted Earnings ($M) Operations per Share ($M) ($) 6.9% (1.2%) 4.2% $315.9 $295.5 $33.2 $32.8 $0.72 $0.75 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 + Power Products for Data Centers and EV − Higher Selling & Administrative + Lower Net Interest Ex
Slide 8: Margins and Ratios
FY23 Q2 Margins and Ratios Gross Margin Selling & Administrative Operating Income Margin (% of Sales) (% of Sales) (% of Sales) 10 bps 100 bps 23.4% 23.5% (80 bps) 10.6% 11.6% 11.2% 10.4% FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 + Higher Sales Volumes − Higher Compensation Expense − Higher Se
Slide 9: EBITDA
FY23 Q2 EBITDA EBITDA* EBITDA* Margin ($M) (% of Sales) (2.7%) (140 bps) $47.4 $46.1 16.0% 14.6% FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 − Higher Material & Other Costs − Unfavorable Foreign Currency + Higher Sales Volume * See Appendix for reconciliation to GAAP 9 Clear Potential to Leverage Higher Sales
Slide 10: Balance Sheet
FY23 Q2 Balance Sheet Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) ($6.5) ($42.4) $210.5 $204.0 $172.0 $35.9 $129.6 $74.4 $38.5 FY22 Q4 FY23 Q2 FY22 Q4 FY23 Q2 FY22 Q4 FY23 Q2 * See Appendix for reconciliation to GAAP 10 Q2 Share Buyback of $19.7M, YTD of $31.6M
Slide 11: Free Cash Flow
FY23 Q2 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) ($11.6) ($14.6) $27.0 $3.0 $15.4 $21.6 $8.4 $5.4 $7.0 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 * See Appendix for reconciliation to GAAP 11 Increased Accounts Receivable due to
Slide 12: Guidance
Guidance Fiscal 2023 Full Year Guidance Updated • Net sales range of $1,170 - $1,200 million, revised from the prior $1,160 - $1,210 million • Diluted earnings per share range of $2.70 - $2.90, revised from the prior $2.70 - $3.10 Fiscal 2023 Guidance Assumptions • Full-year guidance reflects foreig
Slide 13: Thank You
AETHODE ELECTRONICS Thank You
Slide 14: Appendix: Reconciliation of Non-GAAP Measures
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) Three Months Ended Six Months Ended October 29, October 30, October 29, October 30, 2022 2021 2022 2021 EBITDA: Net income $ 27.6 $ 27.5 $ 49.1 $ 56.6 Income tax expense 5.8 5.5 10.2 11.