Knowles Corporation · NYSE:KN
Knowles — Investor Day (May 2025)
67 slides from Knowles's investor day presentation, May 13, 2025
Slide 1: Investor Day 2025
Investor Day 2025 MAY 13 , 2025
Slide 2: Safe Harbor
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: Today's Agenda and Our Speakers
Today’s Agenda Our Speakers Knowles Today 15 min Jeffrey Niew John Anderson President & CEO SVP & CFO Precision Devices 30+ years expertise 30+ years expertise 45 min MedTech & Amrita Jon Kiachian Specialty Audio Khemchandani President, MSA VP & GM, Ceramic Capacitors M&A Strategy 10 min 20+ years e
Slide 4: Enabling innovation that moves the world forward
Enabling innovation that moves the world forward. 4
Slide 5: Knowles Today
Knowles Today Industrial technology >95% of revenue from High margin company MedTech, Defense & product portfolio Industrial markets Meeting demands Custom solutions of secular trends delivered at scale 5
Slide 6: Creating value for our organization, customers and shareholders
Creating value for our organization, customers and shareholders — today and in the future. 2017-2024 NEXT 5 YEARS 8% 8-10% Revenue CAGR Revenue CAGR 11% 10-14% Adjusted EBITDA* CAGR CONTINUING Adjusted EBITDA† CAGR OPERATIONS +400 bps +300-500 bps Adjusted EBITDA Margin* Adjusted EBITDA Margin† * Fo
Slide 7: The pillars of our transformation
The pillars of our transformation. Repositioning Financial Strategic Shift Our Portfolio Performance Focused on higher margin Four Acquisitions Margin expansion products and markets Two Divestitures Robust cash generation Medtech, Defense, Exited Consumer MEMS Strong Balance Sheet Industrial Market
Slide 8: Knowles at-a-glance
Knowles at-a-glance. 54% Precision Devices 48% MedTech 21% Defense & Aerospace $554M 2024 Revenue 5,000+ 2024 Global Employees 2024 Segment Market Revenue Revenue Mix Mix 600+ Engineers 75+ Years in Industry 46% MedTech & Specialty Audio 4% Electrification / Energy 27% Industrial 8
Slide 9: Why we win
Why we win. High Performance Technology Customization Enabler of at Scale Customer Innovation 9
Slide 10: High Performance Ceramic Capacitors & RF / Microwave Filters
High Performance Ceramic Capacitors & RF / Microwave Filters High Performance Technology High Performance Film & Electrolytic Capacitors Hearing Health Solutions Microphones, BA Speakers 10
Slide 11: Serving a diverse and innovative customer base
MEDTECH DEFENSE INDUSTRIAL Serving a diverse and ELECTRIFICATION innovative customer base. Enabler of Customer Innovation Except as otherwise noted, the trademarks on this slide are the property of their respective owners. 11
Slide 12: Competitive Advantage
Agility and Innovation See finance slide example = Competitive Advantage Customization at Scale Scale of large manufacturer 12
Slide 13: Meeting the demand of growing secular trends
Meeting the demand of growing secular trends. Aging Population Shifting Defense Priorities Manufacturing Automation Increasing Energy Consumption 13
Slide 14: MedTech
MARKET MedTech 4-6% CAGR 48% Next 5 Years Total Revenue† Hearing Health Implantables Imaging Medical Devices Our Products See Appendix for CAGR source data 14 † Percentage of 2024 total Company revenue
Slide 15: Defense & Aerospace
MARKET Defense & Aerospace 3-5% CAGR 21% Next 5 Years Total Revenue† Radar Electronic Warfare Communications SatCom Detonation Our Products See Appendix for CAGR source data 15 † Percentage of 2024 total Company revenue
Slide 16: Industrial
MARKET Industrial 4-6% CAGR 27% Next 5 Years Total Revenue† Power Supply Battery Backup Lasers Motor Down Hole Our Products See Appendix for CAGR source data 16 † Percentage of 2024 total Company revenue
Slide 17: Electrification / Energy
MARKET Electrification / Energy 8-10% CAGR 4% Next 5 Years Total Revenue† Electric Vehicles EV Charging Energy Our Products See Appendix for CAGR source data 17 † Percentage of 2024 total Company revenue
Slide 18: Precision Devices
Precision Devices $300M 2024 Revenue 20% 2024 Adjusted EBITDA Margins* You may not see our products, 6-8% Expected Organic but you experience Revenue CAGR (2024-2029) their impact. * For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation 18
Slide 19: Precision Devices Market Mix
Precision Devices Market Mix MedTech 14% Defense 39% $42M $116M Revenue Revenue 2024 2024 Electrification / Energy 8% Market Mix Market Mix Industrial 39% $24M $118M Revenue Revenue 19
Slide 20: A pivotal player in tomorrow's technology
As a leading manufacturer of specialty electronic products, we are a pivotal player in tomorrow’s technology. 20
Slide 21: High Performance Ceramic Capacitors & RF / Microwave Filters
High Performance Ceramic Capacitors & RF / Microwave Filters O UR TE CH N OLOGY A B ILIT Y TO CU STO MIZ E R IG ORO U S T E ST IN G Ability to High High High High High Non-Magnetic Make Ceramics Reliability Temperature Voltage Frequency Capacitance 21
Slide 22: High Performance Ceramic Capacitors & RF / Microwave Filters
High Performance Ceramic Capacitors & RF / Microwave Filters O UR TE CH N OLOGY A B ILIT Y TO CU STO MIZ E R IG ORO U S T E ST IN G Engineered to Order Termination Plating Assemblies Machining 22
Slide 23: High Performance Ceramic Capacitors & RF / Microwave Filters
High Performance Ceramic Capacitors & RF / Microwave Filters O UR TE CH N OLOGY A B ILIT Y TO CU STO MIZ E R IG ORO U S T E ST IN G Vibration / Shock High Reliability Humidity Thermal Stress Environmental Defect Free Testing 23
Slide 24: Product Overview: Ceramic Capacitors
Product Overview: Ceramic Capacitors High Reliability Capacitors Multi-Layer Capacitors (MLC) Trimmer Capacitors CAPABILITIES Variable Capacitance, High Reliability High Q, High Temp, High Voltage Non-Mag, Test & Measure MARKETS Medical Devices, Defense, Medical Devices, Defense, Space Industrial, T
Slide 25: Product Overview: RF / Microwave Filters
Product Overview: RF / Microwave Filters RF Passive Single Layer RF Filters Components Capacitors CAPABILITIES Small Size & Weight, Temperature Wide Frequency Range, High Reliability, Small Size, High Reliability, Stability, Customized Performance High Performance Temperature Stability MARKETS Defen
Slide 26: Ceramic Capacitors: Implantables and Imaging
IMPLANTABLES IMAGING MEDTECH DEFENSE & AEROSPACE Cochlear Implants Pacemakers MRI X-Ray Capacitors and half-turn Capacitors Supply multiple types Supply multiple types trimmers for implantable for implantable of components into of components into device cardiac device MRI coil applications imaging a
Slide 27: Ceramic Capacitors: Munitions, Missiles and Communication Systems
MUNITION & MISSILES COMMUNICATION SYSTEMS MEDTECH DEFENSE & AEROSPACE Detonation Systems Radar Satellite Pulse energy capacitors with high energy storage High efficiency capacitors Customized EMI filters and fast pulse discharge for explosive charges that enable critical RF that ensure data signal a
Slide 28: RF / Microwave Filters: Radar and Electronic Warfare
MEDTECH DEFENSE & AEROSPACE Electronic Radar Missile Communications Space Warfare Supports wide High performance High performance Supports frequency High reliability in range of operating under challenging under harsh range with small harsh operating frequencies and technical operating conditions si
Slide 29: Ceramic Capacitors: Advanced Manufacturing
ADVANCED MANUFACTURING MEDTECH DEFENSE & AEROSPACE Laser Lithography High efficiency capacitors for RF laser circuitry in High efficiency, high power capacitors for INDUSTRIAL medical, industrial, and semiconductor equipment semiconductor manufacturing equipment ELECTRIFICATION / ENERGY 29 CERAMIC C
Slide 30: Ceramic Capacitors: Electric Vehicles
ELECTRIC VEHICLES MEDTECH DEFENSE & AEROSPACE Onboard EV Charging Stations Safety capacitors that prevent shock hazard Resonant capacitors that support INDUSTRIAL and mitigate interference efficient power conversion ELECTRIFICATION / ENERGY 30 CERAMIC CAPACITORS
Slide 31: New Growth Areas: High Performance Ceramic Capacitors
New Growth Areas: High Performance Ceramic Capacitors Integrated Capacitor Solutions • High efficiency, high reliability capacitors combined with core capabilities in precision machining and assembly • To provide value added service/solution through customization at scale Inductors • RF ceramic indu
Slide 32: High Performance Ceramic Capacitors & RF / Microwave Filters Recap
High Performance Ceramic Capacitors & RF / Microwave Filters Recap 1 Leader in advanced ceramics innovation and customized solutions Differentiated position in demanding, sticky markets, 2 consistently securing strategic long-cycle wins Unique end-to-end capability with speed, agility and scalabilit
Slide 33: High Performance Film & Electrolytic Capacitors
High Performance Film & Electrolytic Capacitors Ability to Design Film & Engineer-to-Engineer Unique Solutions Ability to Electrolytic Materials Engagement for Customers Produce at Scale 33
Slide 34: Product Overview
Product Overview Electrolytic Film RF Mica Supercapacitors Capacitors Capacitors Capacitors CAPABILITIES High Reliability, High Voltage Variable Capacitance & High Reliability, Low Voltage High Reliability, High Q, Power Conversion, Voltage, Active / Passive Power Conversion High Voltage Pulse Power
Slide 35: Defibrillators, Radiotherapy, Lasers
MEDTECH DEFENSE & AEROSPACE Defibrillators Radiotherapy Lasers Ventilators High energy density Energy storage & signal High energy pulse of & high pulse delivery High energy discharge filtering provided for charged particles capability reliable operation INDUSTRIAL ELECTRIFICATION / ENERGY 35
Slide 36: Railgun, Radar, Control Systems
MEDTECH DEFENSE & AEROSPACE Railgun Radar Control Systems Pulse energy capacitors Amplifying & filtering Engineered reliability & with high energy storage the signal on the circuit performance that ensure & fast pulse discharge data signal integrity INDUSTRIAL ELECTRIFICATION / ENERGY 36
Slide 37: Induction Heating, Motor & Drive, Battery Backup
MEDTECH DEFENSE & AEROSPACE Induction Motor & Drive Battery Welding Heating Systems Backup Optimal energy transfer Consistent voltage for High energy discharge Power on demand at a continuous output with low power loss consistent discharge rate INDUSTRIAL ELECTRIFICATION / ENERGY 37
Slide 38: EV Charging Stations, Energy
MEDTECH DEFENSE & AEROSPACE EV Charging Energy DC Transmission Stations Ability to store & release charge Energy storage for High voltage transmission quickly and consistently continuous power with low power loss INDUSTRIAL ELECTRIFICATION / ENERGY 38
Slide 39: New Growth Area: Specialty Film
New Growth Area: Specialty Film Pulse Fracturing (“Fracking”) • Next generation fracturing technology using short, high-pressure pulses to break rock • Pulse power film capacitor capable of operating in very high pressures and temperatures • Significantly lower environmental impact and operating cos
Slide 40: High Performance Film & Electrolytic Capacitors Recap
High Performance Film & Electrolytic Capacitors Recap Industry leading Cornell Dubilier brand built on 110+ years of innovation, benefitting 1 from Knowles's expanded market reach and disciplined business processes Differentiated electrolytics and film capacitor portfolio built on customized solutio
Slide 41: MedTech & Specialty Audio
MedTech & Specialty Audio $254M 2024 Revenue Enhancing quality of life 44% for those with 2024 Adjusted EBITDA Margins* hearing loss. 2-4% Expected Organic Revenue CAGR (2024-2029) * For this non-GAAP financial measure, see the Appendix for GAAP to non-GAAP reconciliation 41
Slide 42: Communications, Hearing Health, Audiophile
MEDTECH 87% of 2024 Revenue INDUSTRIAL 13% of 2024 Revenue Communications Hearing Health Audiophile 42
Slide 43: High Performance Audio Solutions
High Performance Audio Solutions Innovation Customer Supply Chain & Quality & Reliability Relationships Manufacturing 43
Slide 44: Hearing Health
HEARING HEALTH MEDTECH MEMS Balanced Receiver-In-Canal Microphone Armature (RIC) Superior acoustic performance, Small speaker with Complete speaker assembly small size, broad portfolio high output at low power that fits inside the ear canal serving all applications providing natural sound quality IN
Slide 45: Communications and Audiophile
COMMUNICATIONS AUDIOPHILE MEDTECH Boom Mic Premium Earphones Microphone mounted on an extendable arm Small size enables multiple drivers allowing for versatility & movement for superior audio quality INDUSTRIAL 45
Slide 46: New Growth Areas: MedTech Micro Solutions
New Growth Areas: MedTech Micro Solutions CORE COMPETENCIES APPLICATIONS Coil Winding Cardiac Rhythm Neuromodulation Management Metal Stamping Plastic Molding Diagnostics Surgical Navigation 46
Slide 47: MedTech & Specialty Audio Recap
MedTech & Specialty Audio Recap Acoustic innovation leader with full vertical manufacturing integration allowing 1 full customization of customer solutions 2 Participate in resilient end markets with consistent, stable growth 3 Differentiated position drives high margins and robust cash generation 4
Slide 48: M&A Strategy
M&A Strategy Expanding our business through strategic acquisitions. 48
Slide 49: Strategically focused on expanding from our strong core
Strategically focused on expanding ACQUISITIONS from our strong core. Consolidation in existing products and technologies Extensions to product lines which serve our existing DIVESTITURES markets and customers Adjacencies to expand our technology and customer base Consumer MEMS Microphones 49
Slide 50: Expanding our business through strategic acquisitions
Expanding our business through strategic acquisitions. Growth Target Screening M&A Playbook • Differentiated technology • Proven diligence process • Strong fit with our growth markets • Comprehensive integration program leveraging operations • Accretive financial profile with and financial business
Slide 51: Case Study: Extension of our capacitor technology offering
CASE STUDY Extension of our capacitor technology offering New markets in energy Expanded customer base Attractive financial return 51
Slide 52: M&A Financial Targets
Healthy Funnel Financial Targets of Opportunities Year 1 accretive Consolidation and extension in Maintain Net Leverage Precision Devices Ratio of 2.75x Adjacencies leveraging Returns 200-300 bps capabilities in our above cost of capital growth markets by Year 3 Net Leverage represents Debt less Cas
Slide 53: Financials Overview & Outlook
Financials Overview & Outlook 53
Slide 54: Historical Financial Performance - Continuing Operations
Historical Financial Performance - Continuing Operations Revenue CAGR Adjusted EBITDA* CAGR 2017-2024 2017-2024 554 142 129 479 457 442 364 396 355 4% 108 107 Focused on Organic areas with 321 Growth 75 higher returns and growth 8% 61 68 11% CAGR CAGR 4% 38 Growth by Acquisition Invested in demandin
Slide 55: Adjusted EBITDA Margin Expansion
Adjusted EBITDA Margin* Expansion 23% Shed low-margin 19% business / pricing Lean manufacturing, automation, and factory +400 productivity initiatives bps Control operating expenses at every level by optimizing 2017 2024 shared service team, leveraging a single ERP system * For this non-GAAP financi
Slide 56: Replicating our business model over the next five years
Replicating our business model over the next five years. 2025 Full-Year Outlook (in millions) Five Year Target $560-$590 Revenue 4-6% Organic Growth 4% Acquisitions = 8-10% Revenue CAGR $140-$150 10-14% Adjusted EBITDA† Adjusted EBITDA† CAGR $80-$100 16-20% Cash from Operations Cash from Operations
Slide 57: Our components of revenue growth
Our components of revenue growth. 8-10% Revenue CAGR 6-8% 2-4% 4% NEXT 5 YEARS Precision MedTech & Acquisitions Devices Specialty Audio NEXT 5 YEARS 57
Slide 58: Continuing to drive value with strong earnings growth
Continuing to drive value with strong earnings growth. Organic EBITDA drop through Revenue Growth 10-14% Margin Expansion Pricing / Higher Value Products Factory Productivity Initiatives Adjusted EBITDA CAGR † Capacity Utilization NE XT 5 Y EARS Operating Continued disciplined Expenses approach to S
Slide 59: Proximity sourcing and manufacturing by region
Proximity sourcing and manufacturing: strategically located by region. Itasca, IL Cazenovia, NY New Bedford, MA Suzhou, China Valencia, CA Boonton, NJ Calexico, CA Liberty, SC San Diego, CA Dominican Republic Mexicali, MX Penang, Malaysia Cebu, Philippines Global Headquarters Manufacturing (13 Locat
Slide 60: Capital Deployment (2017-2024)
Capital Deployment (2017-2024) $212M $206M Debt Reduction & Share Interest Payments Repurchase $132M $358M Capital M&A Expenditures Deployment 60
Slide 61: Capital Allocation
Capital Allocation Organic Investment • Capital investments of 3-5% of revenues over a cycle to support new business and product innovation M&A • Focal point of our capital allocation strategy • Supported by robust pipeline focused on high-growth end markets • Demonstrated capabilities to acquire an
Slide 62: Strategic transformation into industrial technology leader completed
Strategic transformation into industrial technology leader completed with focus on 1 attractive MedTech, Defense, Industrial, and Energy markets Historical financial performance demonstrates ability of portfolio to deliver future growth 2 with strong margin expansion over a cycle 3 Differentiation t
Slide 63: Investor Day 2025
Investor Day 2025 MAY 13 , 2025
Slide 64: Appendix
Appendix « 64
Slide 65: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures Quarter Ended December 31, (Continuing operations, in millions) 2024 2023 2022 2021 2020 2019 2018 2017 Revenues $ 553.5 $ 456.8 $ 478.8 $ 441.9 $ 355.4 $ 395.9 $ 363.7 $ 321.2 Net earnings (loss) $ 23.4 $ 65.6 $ 66.4 $ 98.4 $
Slide 66: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures Precision Devices MedTech & Specialty Audio (Continuing operations, in millions) Year Ended December 31, 2024 Revenues $ 300.0 $ 253.5 Operating earnings $ 15.0 $ 97.5 Other expense, net 0.2 - Earnings before interest and incom
Slide 67: Market Sources
Market Sources Defense Data Sources • Global Data, Global Tactical Communications Market Forecast 23-33 Energy / Electrification Data Sources • Global Data, Global Electronic Warfare Market Forecast 24–34 • Yole, Power Converter for xEV, Green Energy and Industrial 2024 • Global Data, Global Missile