Slide 1: Financial Results First Quarter Fiscal Year 2021
Financial Results First Quarter Fiscal Year 2021 Quarter Ended September 30, 2020 Supplementary Information to November 4, 2020 Earnings Conference Call
Slide 2: Safe Harbor Statement
Kimball Electronics (Nasdaq: KE) Safe Harbor Statement Certain statements contained within this supplementary information and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation Reform Act of 1995 and are subject to
Slide 3: Net Sales
Kimball Electronics (Nasdaq: KE) (Unaudited) Net Sales $350 +6% from Q1'20 $332 $325 $319 $313 $313 $307 $300 $294 $284 $286 In Millions $275 $250 $225 $200 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 3
Slide 4: Net Sales Mix by Vertical Market
Kimball Electronics (Nasdaq: KE) (Unaudited) Net Sales Mix by Vertical Market 100% 2% 1% 2% 2% 2% 2% 1% 1% 5% 5% 5% 5% 4% 4% 4% 6% 90% 22% 22% 21% 22% 21% 21% 21% 26% 80% 70% 60% 28% 30% % of Sales 30% 32% 32% 32% 38% 50% 43% 40% 30% 44% 42% 20% 40% 40% 40% 40% 36% 26% 10% 0% Q2'19 Q3'19 Q4'19 Q1'20
Slide 5: Gross Margin %
Kimball Electronics (Nasdaq: KE) (Unaudited) Gross Margin % 10.0% 9.2% 9.0% 8.5% 8.0% 7.2% 7.3% 7.3% 7.1% 6.9% 7.0% 6.7% 6.0% % of Sales 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 5
Slide 6: Adjusted Selling & Administrative Expense (%)
Kimball Electronics (Nasdaq: KE) (Unaudited) Adjusted Selling & Administrative Expense (%) (1)(2) (Excludes SERP) 4.5% 4.1% 4.0% 3.8% % of Sales 3.8% 3.7% 3.7% 3.6% 3.6% 3.5% 3.5% 3.0% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 (1) Adjusted Selling & Administrative Expense is a Non-GAAP measure
Slide 7: Adjusted Operating Income
Kimball Electronics (Nasdaq: KE) (Unaudited) Adjusted Operating Income (1)(2) (Excludes SERP, goodwill impairment, and lawsuit proceeds) 6.0% $18.0 $18.0 5.4% 5.5% $16.0 $15.1 $14.0 4.8% 5.0% $12.0 $11.1 4.5% $10.8 $10.3 % of Sales In Millions $10.0 $9.6 $9.7 $9.2 4.0% 3.8% $8.0 3.5% 3.4% 3.5% 3.2%
Slide 8: Adjusted Net Income
Kimball Electronics (Nasdaq: KE) (Unaudited) Adjusted Net Income (1) (Excludes goodwill impairment, net working capital adjustment on GES acquisition, lawsuit proceeds, and adjustments to provision for income taxes due to Tax Reform) $18.0 $17.0 $16.6 $16.0 $15.0 $14.0 $13.0 $11.8 $12.0 $11.0 In Mil
Slide 9: Adjusted EBITDA
Kimball Electronics (Nasdaq: KE) Adjusted EBITDA (Unaudited) (1) (Excludes goodwill impairment, net working capital adjustment on GES acquisition, and lawsuit proceeds) $28.7 10.0% $28.0 $26.0 $24.0 $23.3 8.7% 8.0% $22.0 $20.0 7.4% $19.5 $17.3 $17.2 $17.6 $17.7 6.8% $18.0 $16.9 6.0% % of Sales In Mi
Slide 10: Return on Invested Capital
Kimball Electronics (Nasdaq: KE) Return on Invested Capital (Unaudited) (1)(2)(3) (Excludes SERP, goodwill impairment, and lawsuit proceeds) 14.0% 12.0% 10.0% 9.1% 9.0% 8.8% 8.8% 8.7% 8.4% 8.0% 7.1% 7.1% ROIC 6.0% 4.0% 2.0% 0.0% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 (1) We define ROIC as a
Slide 11: Operating Cash Flow
Kimball Electronics (Nasdaq: KE) (Unaudited) Operating Cash Flow $45.0 $39.6 $40.0 $35.0 $30.0 $25.0 $21.5 $20.7 $20.0 In Millions $15.0 $12.2 $12.0 $10.0 $5.6 $5.0 $0.0 ($0.3) $-5.0 $-10.0 $-15.0 ($14.6) $-20.0 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 11
Slide 12: Capital Expenditures and Depreciation & Amortization
Kimball Electronics (Nasdaq: KE) (Unaudited) Capital Expenditures and Depreciation & Amortization(1) $12.0 $10.0 $8.3 $7.9 $8.0 $8.0 $7.5 $7.7 $7.3 $7.4 $7.3 In Millions $6.0 $11.7 $11.0 $10.4 $9.8 $8.5 $4.0 $6.9 $5.7 $2.0 $4.3 $0.0 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Cap Ex Depr & Amort
Slide 13: Reconciliation of Non-GAAP Results
Kimball Electronics (Nasdaq: KE) Reconciliation of Non-GAAP Results (Unaudited, Amounts in Thousands) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Selling & Administrative Expenses, as reported $ 10,232 $ 12,057 $ 13,118 11,078 $ 11,827 $ 9,624 $ 11,391 $ 13,117 Less: SERP(2) (626) 606 228 (22) 5