Slide 1: 4th Quarter and Full Year 2022 Earnings Release Supplemental Information
4th Quarter and Full Year 2022 Earnings Release Supplemental Information February 9, 2023
Slide 2: Safe Harbor - Forward Looking Statements
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: Q4 2022 Year-over-Year: Delivering on expectations despite challenging conditions
Q4 2022 Year-over-Year Delivering on expectations despite challenging macroeconomic conditions • Consumer electronic market REVENUE Non-GAAP ADJUSTED EBIT Non-GAAP DILUTED demand continues to impact ($M) GROSS PROFIT MARGIN* MARGIN* EPS* revenue and earnings (%) (%) ($) 43.3 22.0 • Gross Profit Marg
Slide 4: Q4 2022 Segment Performance: Precision Devices
Q4 2022 Segment Performance Precision Devices REVENUE Non-GAAP GROSS PROFIT MARGIN* • 9% revenue growth driven by ($M) (%) robust demand across defense, medtech, EV, and 63.3 49.2 48.5 industrial markets 57.9 • Gross Profit Margin down slightly from the prior year due to favorable inventory adjustme
Slide 5: Q4 2022 Segment Performance: MedTech & Specialty Audio
Q4 2022 Segment Performance MedTech & Specialty Audio REVENUE Non-GAAP • Revenue down due to GROSS PROFIT MARGIN* ($M) (%) customer inventory 71.4 adjustments and difficult 50.3 51.6 year over year comparables 61.8 as Q4 2021 benefited from strong COVID recovery • Gross Profit Margin expansion drive
Slide 6: Q4 2022 Segment Performance: Consumer MEMS Microphones
Q4 2022 Segment Performance Consumer MEMS Microphones REVENUE Non-GAAP • Revenue down sharply due GROSS PROFIT MARGIN* ($M) (%) to weak consumer electronic market demand and excess 105.0 35.4 channel inventory • Gross Profit Margin severely 72.0 24.0 impacted by lower factory capacity utilization an
Slide 7: Year over Year Financial Performance
Year over Year Financial Performance Delivered strong profitability metrics despite headwinds in consumer electronic market • Consumer electronic market demand and excess channel inventory severely impacted Revenue of $764.7 million 12% decrease year-over-year revenue and earnings • Consumer MEMS ne
Slide 8: Financial Performance: improved profitability metrics from 2018 to 2022
Financial Performance We have significantly improved our profitability metrics from 2018 to 2022. REVENUE Non-GAAP ADJUSTED EBIT ADJUSTED EBITDA FREE CASH FLOW Non-GAAP Diluted GROSS PROFIT MARGIN* MARGIN* MARGIN* MARGIN* EPS* ($) (%) (%) (%) (%) 7.1 ($) 18.6 826.9 1.26 39.5 40.6 24.1 764.7 14.2 19.
Slide 9: Full Year 2022 Cash Generation
Full Year 2022 Cash Generation Proven ability to deliver strong free cash flow Gross Margin Expansion • Focused on markets that value our technology and FREE CASH FLOW* FREE CASH FLOW MARGIN* manufacturing differentiation ($M) (%) • Implemented a more disciplined approach to pricing 133.5 • Reduced
Slide 10: Outlook: Q1 2023 Guidance
Outlook Q1 2023 Guidance GAAP ADJUSTMENTS NON-GAAP Revenue $140 to $155 million — $140 to $155 million Gross Profit Margin 31.7% to 34.7% 0.3% 32.0% to 35.0% Diluted EPS ($0.08) to ($0.02) $0.09 $0.01 to $0.07 Q1 2023 GAAP results are expected to include approximately $0.07 per share in stock-based
Slide 11: Appendix
« knowles Appendix
Slide 12: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (1) Quarter Ended December 31, (Continuing operations, in millions, except per share amounts) 2022 2021 Revenues $ 197.1 $ 234.3 Notes: Gross profit $ 75.3 $ 100.9 (1) Gross profit margin 38.2 % 43.1 % In 2022, Other expenses r
Slide 13: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures Quarter Ended December 31, Notes: (Continuing operations, in millions, except per share amounts) 2022 2021 Net (loss) earnings $ (208.0) $ 92.6 (2) The non-GAAP reconciling adjustments are those adjustments made to reconcile (L
Slide 14: Historical Segment Data
Historical Segment Data Precision Devices MedTech & Specialty Audio Consumer MEMS Microphones Quarter Ended Quarter Ended Quarter Ended December 31, September 30, June 30, March 31, December 31, December 31, September 30, June 30, March 31, December 31, December 31, September 30, June 30, March 31,
Slide 15: Historical Segment Data
Historical Segment Data Precision Devices MedTech & Specialty Audio Consumer MEMS Microphones Quarter Ended Quarter Ended Quarter Ended December 31, September 30, June 30, March 31, December 31, December 31, September 30, June 30, March 31, December 31, December 31, September 30, June 30, March 31,
Slide 16: Reconciliation of Segment EBIT to Consolidated Net Earnings
Reconciliation of Segment EBIT to Consolidated Net Earnings Quarter Ended December 31, September 30, June 30, March 31, December 31, (Continuing operations, in millions) 2022 2022 2022 2022 2021 (Loss) earnings before interest and income taxes Precision Devices $ 16.6 $ 16.2 $ 11.0 $ 12.3 $ 15.4 Med
Slide 17: Free Cash Flow and Free Cash Flow as a % of revenues
Free Cash Flow and Free Cash Flow as a % of revenues Years Ended December 31, (in millions) 2022 2021 2020 2019 2018 Cash provided by operating activities $ 86.3 $ 182.1 $ 128.1 $ 123.9 $ 98.5 Less: Capital expenditures (32.1) (48.6) (31.9) (41.2) (80.1) Free cash flow (1) $ 54.2 $ 133.5 $ 96.2 $ 82
Slide 18: Reconciliation of Net Debt (Cash)
Reconciliation of Net Debt (Cash) Year Ended December 31, (Continuing operations, in millions) 2022 Current maturities of long-term debt $ — Long-term debt 45.0 Total debt 45.0 Less: Cash and cash equivalents (48.2) Net debt (cash) $ (3.2) 18