Slide 1: Fiscal 2023 Third Quarter Financial Results
FISCAL 2023 THIRD QUARTER FINANCIAL RESULTS March 9, 2023
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 Q3 Highlights
FY23 Q3 Highlights Quarterly Performance Electric Vehicle Activity Sales of $280M Reached a Record 24% of Consolidated Sales Sales Up 3.8% Excluding FX and Cost Recovery Expecting 21% for Total FY23 Industrial Segment Power Solutions Driving Growth $120M+ EV Program Awards YTD Business Activity Bala
Slide 5: Select Business Awards
FY23 Q3 Select Business Awards FY23 Q3 Electric Vehicle Awards • Ambient Lighting for European Auto OEM • Busbar Assembly for Asian Auto OEM • Busbar Assembly for Asian Auto OEM $21M * • Interconnect Board Assembly for Asian Auto OEM • HVAC Control Panel for Asian Auto OEM Cumulative Electric Vehicl
Slide 6: Nordic Lights Tender Offer Summary
Nordic Lights Tender Offer Summary On February 28, 2023, announced offer to the shareholders of Nordic Lights to tender all their shares Overview The Board of Directors of Nordic Lights agreed to recommend that the shareholders of Nordic Lights accept the offer > 56.5% of shareholders have alr
Slide 7: Summary
FY23 Q3 Summary Highlights Solid Sales Driven by Industrial Segment Record Quarter for EV Sales Strong Free Cash Flow Exciting Acquisition Opportunity with Nordic Lights 3-Year Sales Target Reaffirmed Organic Sales CAGR of 6% Path to Target Will Not Be Linear Multiple Years of Strong A
Slide 8: Financial Results
QAETHODE ELECTRONICS Financial Results
Slide 9: Income Statement
FY23 Q3 Income Statement Net Sales Income from Diluted Earnings ($M) Operations per Share ($M) ($) (3.9%) (30.8%) (8.4%) $291.6 $280.1 $0.78 $29.8 $27.3 $0.54 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 − Unfavorable Foreign Currency − Unfavorable Foreign Currency − Higher Other Expense − North
Slide 10: Margins and Ratios
FY23 Q3 Margins and Ratios Gross Margin Selling & Administrative Operating Income Margin (% of Sales) (% of Sales) (% of Sales) (50 bps) (10 bps) 23.7% 23.2% (50 bps) 11.8% 11.7% 10.2% 9.7% FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 − Higher Material Costs + Lower Annual Incentive Expense − Mat
Slide 11: EBITDA
FY23 Q3 EBITDA EBITDA* EBITDA* Margin ($M) (% of Sales) (24.6%) (350 bps) $47.9 $36.1 16.4% 12.9% FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 − Higher Other Expense − Lower Sales Volume − Higher Manufacturing Costs − Unfavorable Foreign Currency * See Appendix for reconciliation to GAAP 11
Slide 12: Balance Sheet
FY23 Q3 Balance Sheet Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) ($9.2) ($7.3) $210.5 $201.3 $172.0 $164.7 ($1.9) $38.5 $36.6 FY22 Q4 FY23 Q3 FY22 Q4 FY23 Q3 FY22 Q4 FY23 Q3 * See Appendix for reconciliation to GAAP 12 Q3 Share Buyback of $8.0M, YTD of $39.6M
Slide 13: Free Cash Flow
FY23 Q3 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) $35.6 $31.1 $55.7 $4.5 $42.9 $20.1 $8.3 $12.8 $11.8 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 * See Appendix for reconciliation to GAAP 13 Strong Free Cash Flow Mainly Due to Wor
Slide 14: Guidance
Guidance Fiscal 2023 Full Year Guidance Updated • Net sales range of $1,155 - $1,180 million, revised from the prior $1,170 - $1,200 million • Diluted earnings per share range of $2.50 - $2.60, revised from the prior $2.70 - $2.90 Fiscal 2023 Guidance Assumptions • Does not include acquisition costs
Slide 15: Thank You
AETHODE ELECTRONICS Thank You
Slide 16: Appendix: Reconciliation of Non-GAAP Measures
Appendix METHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) Three Month: Ended Nine Months Ended January 28, January 29, January 28, January 29, 2023, 2022, 2023, 2022 EBITDA: Net income $ 19.9 § 294 § 69.0 $ 86.0 Income tax expense 31 41