Slide 1: Fiscal 2024 Fourth Quarter & Full Year Financial Results
FISCAL 2024 FOURTH QUARTER & FULL YEAR FINANCIAL RESULTS July 11, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation forward-looking statements within the meaning of the Private Securities • Our lengthy sales cycle; Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current • Risks relating to our use of requirements contracts; even
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 Adjusted Net Income (Loss), Adjusted Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted Inco
Slide 4: Q4 Highlights
FY24 Q4 Highlights Quarterly Performance Electric Vehicle Activity Sales of $277M 14% of Consolidated Sales, 19% FY24 Auto Sales Down in All Regions Headwinds Due to Transition in Programs and Slowing Near-Term Demand Net Loss Driven by Goodwill Impairment, Launch Costs, and Lower Sales Long-Term Sa
Slide 5: Q4 Select Business Awards
FY24 Q4 Select Business Awards Electric Vehicles • Battery Busbar Assembly for U.S. Auto OEM • Battery Busbar Assembly for U.S. Auto OEM • Battery Busbar Assembly for U.S. Auto OEM $120M * • Battery Busbar Assembly for Asian Auto OEM • Battery Connector Assembly for Asian Auto OEM • Park Lock Actuat
Slide 6: Summary
Summary FY24 Q4 Sales under pressure from major auto program roll-offs and market headwinds in e-bike and EV Goodwill impairment, operational inefficiencies in Automotive, and lower sales volume drove net loss Best quarter of the fiscal year for free cash flow and new program awards Lowest n
Slide 7: Financial Results
Q@AETHODE ELECTRONICS Financial Results
Slide 8: Q4 Net Sales & Income from Operations
FY24 Q4 Net Sales & Income from Operations Net Sales Income/(Loss) Adjusted Income/(Loss) ($M) from Operations from Operations* ($M) ($M) (8%) ($70.0) ($26.0) $301.2 $8.5 $16.2 $277.3 ($9.8) ($61.5) FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 − Auto Program Roll-Offs − Goodwill Impairment FY24 Q
Slide 9: Q4 Earnings Per Share & EBITDA
FY24 Q4 Earnings Per Share & EBITDA Diluted Earnings/(Loss) Adjusted Diluted EBITDA* Adjusted EBITDA* per Share Earnings/(Loss) per Share* ($M) ($M) ($) ($) ($65.9) ($26.4) ($1.85) ($0.45) $0.22 $0.22 $31.7 ($0.23) $21.9 $5.3 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 ($1.63) ($44.0) FY24 Q4 Excludes: FY24 Q4
Slide 10: Q4 Balance Sheet
FY24 Q4 Balance Sheet Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) $24.1 $330.9 $19.6 $306.8 $4.5 $157.0 $161.5 $169.4 $149.8 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 10 Net Debt at Lowest Level Since End of FY23 * See Appendix for reconciliation to GAAP
Slide 11: Q4 Free Cash Flow
FY24 Q4 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) ($24.1) ($22.0) ($2.1) $49.0 $37.8 $24.9 $11.2 $9.1 $15.8 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 11 Second Consecutive Quarter of Positive Free Cash Flow * See Appendix for re
Slide 12: Net Sales & Earnings Per Share
FY24 Net Sales & Earnings Per Share Diluted Earnings/ (Loss) Adjusted Diluted Net Sales per Share Earnings/(Loss) per Share* ($M) ($) ($) (6%) (266%) (121%) $1,179.6 $2.10 $2.10 $1,114.5 ($0.43) ($3.48) FY23 FY24 FY23 FY24 FY24 Excludes: − Auto Program Roll-Offs − Goodwill Impairments • Goodwill Imp
Slide 13: EBITDA
FY24 EBITDA EBITDA* Adjusted EBITDA* ($M) ($M) (138%) (64%) $142.3 $152.7 $55.3 ($53.5) FY23 FY24 FY23 FY24 FY24 Excludes: − Lower Gross Profit • Goodwill Impairments of $105.9M − Lower Sales Volume • Restructuring Costs of $3.7M − Higher S&A Expenses • Acquisition Costs of $0.5M • Purchase Accounti
Slide 14: Free Cash Flow
FY24 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) ($85.3) ($93.5) $8.2 $132.8 $90.8 $47.5 $42.0 $50.2 ($2.7) FY23 FY24 FY23 FY24 FY23 FY24 14 After Negative First Half, Returned to Positive Free Cash Flow in Q3 & Q4 * See Appendix for re
Slide 15: Guidance
Guidance Fiscal 2025 Full Year Guidance • Net sales to be similar to fiscal 2024 • Adjusted pre-tax income to be approaching breakeven • Adjusted pre-tax income for the second half of fiscal 2025 is expected to be significantly stronger than the first half, with the first quarter of fiscal 2025 bein
Slide 16: Thank You
AETHODE ELECTRONICS Thank You
Slide 17: Appendix
fAETHODE Ap pe n d ix ELECTRONICS METHODE ELECTRONICS, INC, AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Cnaudited) (in millions) ‘Three Months Ended Fiscal ‘Apwil27, 2004 April 29,0098 “Apri, 2024 EBITDA: Net (loss) income $73) S 81s (1233) $774 Income tax (benefit) expense (68) (03) (48)
Slide 18: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Three Months Ended April 27, 2024 Taxes and Purchase costs related us. accomnting Netgain tothe GAAP Goodwill
Slide 19: Appendix
fAETHODE Ap pe n d ix ELECTRONICS Reconciliation of Non-GAAP Financial Measures for the Fiscal Year Ended April 27, 2024 Taxes and Purchase costs related us. accounting Netgain tothe GAAP Goodwitt adjustments onsale cf reorganization Non-US. as Acquisition related to Restructuring non-core of aforei