Slide 1: Fiscal 2023 First Quarter Financial Results
FISCAL 2023 FIRST QUARTER FINANCIAL RESULTS September 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 Q1 Highlights
FY23 Q1 Highlights Quarterly Performance Electric Vehicle Activity Sales of $282M, Including $11M in Cost Recovery 17% of Q1 Consolidated Sales Auto Market Headwinds in Asia and Europe Impacted by China Lockdowns Record Industrial Segment Sales of $92M Still Expecting 20% in FY23 Business Activity B
Slide 5: FY23 Q1 Select Business Awards
FY23 Q1 Select Business Awards Electric Vehicles • Battery Busbar Assembly for U.S. Truck OEM • Battery Busbar Assembly for U.S. Auto OEM $39M* • Park Lock Actuator Assembly for U.S. Auto OEM • Terminal Block Assembly for U.S. Auto OEM Non-EV Automotive • Overhead Console Assembly for European Auto
Slide 6: Financial Results
QAETHODE ELECTRONICS Financial Results
Slide 7: FY23 Q1 Financial Highlights
FY23 Q1 Financial Highlights Net Sales Income from Diluted Earnings ($M) Operations per Share ($M) ($) $287.8 $282.4 $34.1 $0.76 $0.58 $21.8 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 7 Income Impacted by Material Cost Inflation and Market Disruptions
Slide 8: FY23 Q1 Financial Results
FY23 Q1 Financial Results Gross Margin % Selling & Administrative % • Higher material costs • Higher salary expense • Lower product sales volume • Higher other general administrative expense • Cost recovery sales at 0% margin • Higher travel expense 24.9% 21.9% 11.4% 12.5% FY22 Q1 FY23 Q1 FY22 Q1 FY
Slide 9: FY23 Q1 Financial Results
FY23 Q1 Financial Results Net Income EBITDA* ($M) ($M) • Lower gross profit • Lower income from operations • Higher selling & administrative expense Partially offset by: Partially offset by: • Higher other income • Higher other income • Lower tax expense • Lower net interest expense $48.5 $38.2 $29.
Slide 10: FY23 Q1 Balance Sheet
FY23 Q1 Balance Sheet Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) $210.5 $207.2 $172.0 $152.4 $38.5 $54.8 FY22 Q4 FY23 Q1 FY22 Q4 FY23 Q1 FY22 Q4 FY23 Q1 * See Appendix for reconciliation to GAAP 10 Q1 Share Buyback of 317,635 Shares for $11.9M
Slide 11: FY23 Q1 Free Cash Flow
FY23 Q1 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) $15.9 $12.7 $9.7 $9.6 $3.1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 $(6.2) * See Appendix for reconciliation to GAAP 11 Positive Free Cash Flow Despite Higher Working Capital In
Slide 12: FY23 Guidance
FY23 Guidance Fiscal 2023 Full Year Confirmed • Net sales of $1,160 - $1,210 million • Diluted earnings per share of $2.70 - $3.10 This guidance is subject to change due to a variety of factors including the impact from the COVID-19 pandemic, the ongoing semiconductor shortages, other supply chain d
Slide 13: Thank You
AETHODE ELECTRONICS Thank You
Slide 14: Appendix
Appendix METHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) Three Months Ended July 30, 2022 July 31,2021 EBITDA: Net income Income tax expense Interest expense, net Amortization of intangibles Depreciation EBITDA Three Months Ended July