Kimball Electronics, Inc. · NASDAQ:KE
Kimball Electronics — Shareholder Meeting (November 2022)
31 slides from Kimball Electronics's shareholder meeting presentation, Nov 11, 2022
Slide 1: Share Owners Meeting
Share Owners Meeting November 11, 2022 Kimball Electronics | 1
Slide 2: Safe Harbor Statement
Kimball Electronics (Nasdaq: KE) Safe Harbor Statement Certain statements contained within this presentation may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict
Slide 3: Don Charron, Chairman and CEO
Don Charron, Chairman and CEO Kimball Electronics | 3
Slide 4: Corporate Prayer
Corporate Prayer Kimball Electronics | 4
Slide 5: Doug Hass, Chief Legal and Compliance Officer, Secretary
Doug Hass, Chief Legal and Compliance Officer, Secretary Kimball Electronics | 5
Slide 6: Proposals for Consideration
Kimball Electronics (Nasdaq: KE) Proposals for Consideration • Election of Directors – Michele A. M. Holcomb – Tom G. Vadaketh – Holly A. Van Deursen Michele A.M. Holcomb • Ratify the selection of Deloitte & Touche LLP as the Company’s Independent Registered Public Accounting Firm • Approve, by a no
Slide 7: Preliminary Vote Report and Adjournment
Preliminary Vote Report and Adjournment Kimball Electronics | 7
Slide 8: Don Charron, Chairman and CEO
Don Charron, Chairman and CEO Kimball Electronics | 8
Slide 9: Opening Remarks
Annual Meeting of the Share Owners Opening Remarks Welcome • This is our 8th Annual Meeting of Share Owners since the spin as a public company Share Owners XX% • Thank you for your continued support XX% Veterans and Active Military Personnel • Thank you for your service XX% Kimball Electronics | 9
Slide 10: Poised for Growth
State of the Company Poised for Growth • Unique manufacturing capabilities and award-winning customer service • Support vertical end-markets benefiting from industry megatrends that will drive long-term growth • Emerging from the challenging operating environment with strength • Strong customer part
Slide 11: Unprecedented Events and Circumstances
Unprecedented Events and Circumstances Embracing the ever-changing landscape with commitment and resolve Global Pandemic • Crisis not fully behind us • China’s zero-tolerance policy • Our #1 priority is health and safety • We’re effectively meeting the challenges Ukraine Conflict • Volunteerism and
Slide 12: Fiscal 2022 was a Good Year for our Company
Kimball Electronics (Nasdaq: KE) Fiscal 2022 was a Good Year for our Company… Record Results on the Top Line Fiscal Year Net Sales • Bifurcated year, as expected ($ in millions) • Strong second half drove annual revenue to $1,500 record levels 1,350 • Funnel of new business increased backlog of $1,3
Slide 13: Diversified Portfolio and End Market Services
Kimball Electronics (Nasdaq: KE) Diversified Portfolio and End Market Services 1% Other 4% AUTOMOTIVE 6% in Net Sales 23% MEDICAL 2% in Net Sales 43% INDUSTRIAL 5% in Net Sales 29% PUBLIC SAFETY 4% in Net Sales $1.35B FY2022 NET SALES Up 4% from FY2021 Kimball Electronics | 13
Slide 14: Poised for Growth: Automotive Market
Poised for Growth: Automotive Market Automotive was our best performing vertical market in fiscal year 2022, with net sales exceeding $580 million. This represents a 6% increase compared to fiscal year 2021, with strength in electronic power steering, automated driver assistance, and electronic brak
Slide 15: Our Manufacturing Competencies Align Well with the Emerging Technologies
Poised for Growth: Automotive Market Our Manufacturing Competencies Align Well with the Emerging Technologies Vehicle Electrification • Automakers are continuing to respond to customer demand by developing more Electric Vehicle (EV) models, including both plug- in hybrid electric vehicles and batter
Slide 16: Poised for Growth: Medical Market
Poised for Growth: Medical Market Net sales in the Medical vertical market were $392 million, or a 2% increase compared to fiscal year 2021. This was an encouraging result considering the impact the pandemic had on the Medical industry, with a significant decline in elective procedures during the cr
Slide 17: Medical Solutions
Poised for Growth: Medical Market Medical Solutions In August of 2021, Kimball Electronics was excited to announce the introduction of Kimball Medical Solutions, providing our medical customers a full-service approach across all of our capabilities: electronics manufacturing, precision injection mol
Slide 18: Poised for Growth: Industrial and Public Safety Market
Poised for Growth: Industrial and Public Safety Market Our business supporting the Industrial vertical market, which we frequently call “green & clean”, also had a good year with improving top-line trends, after prolonged pandemic-related disruptions. Kimball Electronics | 18
Slide 19: Support for Evolving Markets
Poised for Growth: Industrial and Public Safety Markets Support for Evolving Markets Smart Electronic Access Control Helping Leading the Way in Smart Products Meter Manufacturing • Our manufacturing for the Public • Smart meters are electronic Safety end market includes products measurement devices
Slide 20: Recently Affirmed Guidance for Fiscal 2023
Recently Affirmed Guidance for Fiscal 2023, and Expect Full Year Results to be at the High-End of the Range Net sales range Net sales estimated to be in the range of $1.6 - $1.7 $1.6 - $1.7 billion billion, a 19% - 26% increase compared to fiscal 2022 Increase compared to fiscal 2022 19% - 26% in ne
Slide 21: Capital Allocation
Kimball Electronics (Nasdaq: KE) Capital Allocation Capital Allocation Reinvest in the business – Significant ($ in millions) CapEx spending to fuel multi-year organic growth and expansion in ROIC. $100 $90 $80 Acquisitions – $50+ million of acquisitions $70 over past seven years. Going forward M&A
Slide 22: Path to $2 Billion in Annual Revenue
Looking Forward Path to $2 Billion in Annual Revenue • Strong backlog of open orders • New business aligns our facility expansions with our customers’ growth • Strategic Plan identified key areas of focus to achieve this goal with manufacturing capacity being a critical variable • Generate ~$1 milli
Slide 23: Poised for Growth: Facilities Expansion
Poised for Growth: Facilities Expansion Kimball Electronics is expanding its global manufacturing and warehousing facilities to meet the growing demand from both existing and new customers. Kimball Electronics | 23
Slide 24: Facility Expansions Align with Customer Growth
Poised for Growth: Facilities Expansion Facility Expansions Align with Customer Growth Expanding Our Footprint in Thailand • The fiscal year 2022 expansion project for Kimball 38% We’re underway with 370,000 square feet of new facility expansions, representing an Electronics — Thailand has more than
Slide 25: Poised for Growth: Our Culture
Poised for Growth: Our Culture We demonstrate our company purpose by Creating Quality for Life for our people through a respectful and rewarding company culture that encourages meaningful work, as well as for our communities through our positive societal impacts. Kimball Electronics | 25
Slide 26: People are the Company
Poised for Growth: Our Culture People are the Company Diversity, Equity, Inclusion & Belonging Guiding Principles • As a human-centered company focused • Each year, employees around the world on Diversity, Equity, Inclusion & Belonging rate us on how well we are living up to (DEI&B), we promote mult
Slide 27: Thank You and Congratulations
Kimball Electronics (Nasdaq: KE) Thank You and Congratulations Michele A.M. Holcomb Member of the Kimball Electronics Board since 2019 Holly A. Van Deursen Member of the Kimball Electronics Board since 2019 Each enhances our Board’s distinct and valuable skill sets as we continue to build lasting re
Slide 28: Welcome Tom G. Vadaketh
Kimball Electronics (Nasdaq: KE) Welcome • Tom Vadaketh appointed new Director at our Board Meeting in September ⎯ Stands for election to a full term at our Annual Meeting of Share Owners later this week • Well-rounded financial expertise and vast experience with major multinational organizations •
Slide 29: In Closing
State of the Company In Closing… • Focused on continuing to deliver on promises to our customers, employees, Share Owners, and communities • After 24 years with the company, I have never been prouder to be a member of the Kimball Electronics family • Thank you for the continued support Kimball Elect
Slide 30: Questions?
Questions? Kimball Electronics | 30
Slide 31: Thank You!
Thank You! Kimball Electronics | 31
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