Kimball Electronics, Inc. · NASDAQ:KE
Kimball Electronics — 13th Annual Midwest IDEAS Conference (August 2022)
37 slides from Kimball Electronics's conference presentation, Aug 25, 2022
Slide 1: Midwest IDEAS Conference
Midwest IDEAS Conference Kimball Electronics 1
Slide 2: Safe Harbor Statement
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,” “will,” “future,” “optimistic,
Slide 3: Kimball Electronics At A Glance
Kimball Electronics At A Glance A global manufacturing solutions WORLD HEADQUARTERS FINANCIAL provider of contract electronics and diversified manufacturing services Jasper, IN Nasdaq (KE) NUMBER OF EMPLOYEES FY22 NET SALES VERTICAL MARKETS ~7,200 $ 1.3 • Automotive v • Medical • Industrial BILLION
Slide 4: Our Guide to Lasting Relationships and Global Success
Our Guide to Lasting Relationships and Global Success OUR MISSION, OUR PURPOSE, AND OUR VISION & STRATEGY MISSION PURPOSE VISION To attract, develop, and maintain To be the world's most long-term successful relationships preferred multifaceted manufacturing with all the stakeholders solutions provid
Slide 5: A Rich History
A Rich History 2021 CELEBRATION OF 60 1961 YEARS KIMBALL 1985 2014 2015 INTRODUCTION OF ELECTRONICS BEGINNING OF SPIN-OFF FROM KIMBALL MEDICAL FOUNDED AUTOMOTIVE KIMBALL ROMANIA SOLUTIONS JASPER, IN VERTICAL MARKET INTERNATIONAL 1950 NEW GLOBAL HEADQUARTERS JASPER BEGAN CORPORATION 1972 2007 TRADING
Slide 6: Celebrating 60 Years Strong
Celebrating 60 Years Strong Our company culture and core values are derived from the important beliefs of our Guiding Principles Customers People Citizenship Profit Our customer Our people The environment Profits are the ultimate is our business are the company is our home measure of how efficiently
Slide 7: Leadership Team
Leadership Team LEADING THE WAY AND CREATING QUALITY FOR LIFE Don Jana Douglas Steven Charron Croom Hass Korn CHAIRMAN AND CEO CHIEF FINANCIAL OFFICER CHIEF LEGAL AND COMPLIANCE OFFICER, PRESIDENT, GLOBAL ELECTRONICS SECRETARY MANUFACTURING (EMS) OPERATIONS Lee Jessica Kathy Kemper DeLorenzo Thomson
Slide 8: End-to-End Partnership Solutions
End-to-End Partnership Solutions Whether you’re looking for end-to-end engineering, design & manufacturing solutions — or help at any lifecycle stage in your product development — Kimball Electronics is the single-source partner for manufacturing to the most exacting, stringent, mission-critical, hi
Slide 9: Competitive Advantage – Global Footprint
Competitive Advantage – Global Footprint Kimball Electronics 9
Slide 10: Celebrating Our Customers
From cultivating customer relationships to developing unique Celebrating end-to-end partnership solutions, we celebrate the quality of Our Customers life we help our customers create for end users. 1961 2022 Kimball Electronics 10
Slide 11: Culture of Excellence
Culture of Excellence FOUNDATIONAL PRINCIPLE Our culture of excellence is rooted in our Guiding Principle: Our customer is our business We know we must provide innovative products and services that excite our customers and exceed their expectations of quality, features, and enduring value. Our Indus
Slide 12: How We Deliver
How We Deliver AWARD-WINNING SERVICE AND LONG-TERM RELATIONSHIPS Kimball Electronics has participated in the Circuits Assembly FY22 net sales 4% Fewer than five years Service Excellence Awards for eight consecutive years, winning by length of 17% Five to 10 years awards for excellence in multiple ca
Slide 13: Celebrating Our Employees
Jasper, IN • San Jose, CA • Reynosa, Mexico • Indianapolis, IN • Tampa, FL • Poznan, Poland • Timisoara, Romania We work at our collective best when we draw inspiration Celebrating from the institutional knowledge of team members Our Employees located around the globe. 1961 2022 Nanjing, China • Lae
Slide 14: Resilience
Diversity, Equity, and Inclusion Resilience As a global company, we recognize the benefits FOUNDATIONAL PRINCIPLE of a diverse workforce and inclusive work environment. By developing an atmosphere of Our people adapt and respond to change in a way mutual respect, dignity for the individual, and a th
Slide 15: Celebrating Our Communities
Our company and community pride intertwine. We share, but never impose, our values within our communities. Celebrating Each Kimball Electronics facility strives to help make its Our Communities community a great place to live through positive societal and environmental impact. 1961 2022 Kimball Elec
Slide 16: Environmental Success
Environmental Success Our impact on global climate is real. We strive to reduce our energy usage and greenhouse gas footprint, and that starts with our local environment, 15% 23% health and safety teams, and the subsequent INCREASE IN DECREASE IN RECYCLING AIR EMISSIONS sharing of best practices glo
Slide 17: ESG Report for 2021
ESG Report for 2021 Demonstrates our enhanced transparency regarding our policies, statements, and goals in human rights, supply chain transparency, occupational health and safety, diversity and inclusion, progress on environmental stewardship, and good governance. We are truly focused on “creating
Slide 18: Fiscal 2022 was a good year for our company
Fiscal 2022 was a good year for our company… • Record results on the top line • Strong funnel of new business increasing our backlog of open orders • Executed a capital deployment strategy: Celebrating • Investing in future growth with expansions at multiple facilities Our Share Owners • Returning c
Slide 19: Diversified portfolio and end-market services
Diversified portfolio and end-market services FISCAL 2022 NET SALES BY VERTICAL MARKET IN HIGHLY REGULATED AND COMPLEX INDUSTRIES Kimball Electronics 19
Slide 20: Automotive
Automotive VERTICAL MARKET Growth in electronic content per vehicle from advanced technologies and operating systems • Electronic power steering • Body controls • Automated driver assist systems • Electronic braking systems REPRESENTATIVE CUSTOMERS TIER 1 SUPPLIERS Applications and architecture larg
Slide 21: Medical
Medical VERTICAL MARKET Demographics and advances in technology producing favorable set-up • Aging population • Affordability and increasing access to care • Connected care to improve patient outcomes • Decreasing device size REPRESENTATIVE CUSTOMERS • Connected drug delivery Medical Healthcare Heal
Slide 22: Industrial
Industrial VERTICAL MARKET Innovation and expertise driving Factory 4.0 reality in the dynamic and evolving industrial market • Support efficiency • Transactional efficiency • Motor controls • Interoperability of industrial devices REPRESENTATIVE CUSTOMERS OUR COMMITMENT TO EXCEEDING CUSTOMER EXPECT
Slide 23: Public Safety
Public Safety VERTICAL MARKET Products that focus on the welfare and safety of the general public through the prevention and protection from dangers such as crime and natural disasters • Supporting homeland security • Safeguard people, property, and infrastructure • Service the needs of nearly every
Slide 24: Capital Allocation
Capital Allocation Reinvest in the business Significant CapEx spending to fuel multi-year organic growth and expansion in ROIC. Acquisitions $50+ million of acquisitions over past six years. Going forward M&A will play an important role in strategic direction of the firm. Share repurchase $88.8 mill
Slide 25: Guidance for fiscal year 2023
Kimball Electronics (Nasdaq: KE) Guidance for fiscal year 2023 Net sales estimated to be in the range of $1.6 - $1.7 Net sales range billion, a 19% - 26% increase compared to fiscal 2022 $1.6 - $1.7 billion Increase compared to fiscal 2022 Operating income margin of 4.6% - 5.2% 19% - 26% in net sale
Slide 26: Strategically Positioned For Growth To $2 Billion In Annual Revenue
Strategically Positioned For Growth To $2 Billion In Annual Revenue COMPETITIVE ADVANTAGES Global Deep domain Regulatory consistency expertise compliance Single instance of SAP supports Experienced body of knowledge …and industry certifications manufacturing operations around required for high quali
Slide 27: Facility Expansion in Thailand
Facility Expansion in Thailand • Expansion doubled the capacity of the facility • Much of the product produced in Thailand is exported • Heavy focus on the Medical vertical market Kimball Electronics 27
Slide 28: Facility Expansion in Mexico
Facility Expansion in Mexico • Expansion doubled the capacity of the facility • Second building ~1 mile from original location • Much of the product produced in Mexico supports the Automotive and Industrial vertical markets Kimball Electronics 28
Slide 29: Facility Expansion in Poland
Facility Expansion in Poland • Supporting customers’ growth in Europe • Adding ~40% to existing production square footage in Poznan, Poland • Expansion targeted for completion in early fiscal 2024… remains on schedule Kimball Electronics 29
Slide 30: Expanding Solution Set
Expanding Solution Set OUR STRATEGY A ORGANIC GROWTH Electronics manufacturing Outsourced manufacturing service service Add manufacturing services for non-electronic components • Attractive margin and return profile • Offer turnkey solutions and Diversified contract M&A INVESTMENTS* B package of val
Slide 31: Profitability: Program Lifecycle
THESE PROGRAMS PROGRESS at a slow and steady pace, allowing for long-term sustainable growth gained through sourcing Program Lifecycle efficiencies and process improvements. ROIC MEASURED OVER MULTIPLE YEARS A program lifecycle can be as long as a decade! Program Lifecycle: Initial As new programs m
Slide 32: Entrepreneurial Spirit
Entrepreneurial Spirit FOUNDATIONAL PRINCIPLE Our Guiding Principles state: Making investments in our future We seek to promote and reinforce an entrepreneurial spirit — a conviction that growth and continuous improvement is everyone’s job. Leveraging our strong This spirit is further reflected in t
Slide 33: For more information, please contact:
For more information, please contact: Andy Regrut Vice President, Investor Relations 812-827-4151 andy.regrut@kimballelectronics.com Kimball Electronics 33
Slide 34: Appendix
Appendix Kimball Electronics 34
Slide 35: Electronics Manufacturing Services (EMS)
Electronics Manufacturing Services (EMS) • Printed Circuit Board Assembly (PCBA's) • Full System and High-Level Assembly Build • Large Capital Equipment Assembly • Prototyping • New Product Introduction or Transfer of Existing Products • Supply Chain Management • Design Engineering Services Kimball
Slide 36: Medical Contract Manufacturing Services (DCMS)
Medical Contract Manufacturing Services (DCMS) • Focused on the Medical Market • Scientific Injection Molding • Cold Chain Management • Drug Delivery Device Manufacturing • Disposable Medical Product Manufacturing • Surgical Device Manufacturing • Complex Medical Device Assembly • Clean Room Assembl
Slide 37: Automation, Test & Measurement (AT&M)
Automation, Test & Measurement (AT&M) • Automation, Assembly, and Small Part Handling Solutions • Inspection, Metrology, and Quality Control Solutions • Functional Testing: Leak, Air, Optical, Water, Force Touch, Camera, Battery Cycling, LiDAR Component • Optical Engineering, Machine Vision and Arti
Kimball Electronics — 13th Annual Midwest IDEAS Conference (August 2022) on 6ix