Slide 1: Fiscal 2020 First-Quarter Financial Results
August 29, 2019 FISCAL 2020 FIRST-QUARTER FINANCIAL RESULTS
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 provide
Slide 3: Use of Non-GAAP Financial Measures
Use of 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 measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures includ
Slide 4: Q1 FY20 Highlights and Path for Growth
Q1 FY20 Highlights and Path for Growth Global Auto Sensor Growth Strong mix of products for SUVs and pickup trucks Magneto-elastic sensing Limited exposure to domestic Chinese Q1 YOY growth of 11% automotive OEMs New Business Awards Operational Efficiencies Further Penetration of EV Market Benefit o
Slide 5: Q1 Highlights
Q1 Highlights* (All Numbers In Millions except per share amount) Adjusted Net Sales Net Income Adjusted Net Net Income Income Per Growth Per Share Income Share YoY YoY YoY YoY YoY FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 FY 19 FY 20 Change Change Change Change Change Q1 $223.4 $270.2 20.9% $2
Slide 6: Methode Outperformed the Market
Methode Outperformed the Market Automotive Industry Volumes Versus Methode’s Automotive Sales Global NA Europe China • Grakon Tesla sales in NA 20% 17.1% • Strong mix of products for SUVs and 15% pickup trucks in NA 10% 8.0% • 6 launches - 3 in NA, 3 in Europe 5% 0% • Limited exposure to domestic -2
Slide 7: Sensing Technology Organic Product Growth
Sensing Technology Organic Product Growth FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 7 *Booked business as of 7/19
Slide 8: Content Per Electric Vehicle
Content Per Electric Vehicle Tesla Model X Rivian Electric SUV $300 $228 8
Slide 9: Q1 Sales Drivers
Q1 Sales Drivers (Dollars In Millions) Reduced, Radio Weaker Auto Sales from Remote Control, FY19 Q1 Sales from Sales in Effect of FY20 Q1 New Appliance and Sales Grakon Europe and Weaker Euro Sales Launches Data Sales Asia and RMB Volumes 9
Slide 10: Q1 Income Drivers
Q1 Income Drivers (Dollars In Millions) Sales from Grakon and new launches Lower Radio Remote Control, Appliance and Data Solutions Sales Benefit of Initiatives to Reduce Costs Higher Net Interest Expense Lack of Expense from Initiatives to Reduce Increased Intangible Asset Amortization Expense Cost
Slide 11: Q1 FY20 Financial Results
Q1 FY20 Financial Results* Gross Margins Adjusted Gross Margins S&A Adjusted S&A • Benefit of Grakon sales Excludes: • Absence of expense for initiatives to Excludes: • Expense for initiatives to reduce costs • Expense for initiatives to Partially offset by: reduce costs reduce costs • Impact of for
Slide 12: Q1 FY20 Financial Results
Q1 FY20 Financial Results* (Dollars In Millions) EBITDA Adjusted EBITDA Excludes • Expense for initiatives to reduce costs • Acquisition-related expenses 37% 32% $50.3 $50.3 $36.8 $38.2 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 *See Appendix for reconciliation to GAAP 12
Slide 13: Free Cash Flow and Balance Sheet
Free Cash Flow and Balance Sheet (Dollars In Millions) Q1 FY 20 FCF 3 Months 3 Months July 28, 2018 July 27, 2019 $26.9M Net Income $23.7 $28.3 Depreciation and 8.4 11.8 Amortization CapEx (18.2) (13.2) Debt to TTM FCF $13.9 $26.9 EBITDA 1.6X 13
Slide 14: FY2020 Guidance Reaffirmed
FY2020 Guidance Reaffirmed $48-$54M $1.13-1.17B CapEx Revenue $51-$54M $150.3-164.3M Depreciation and Amortization Pre-Tax Income 18-21% $3.25-$3.55 Income Tax Rate EPS $122-$136M Free Cash Flow 14
Slide 15: Determining Projected FY20 EBITDA
Determining Projected FY20 EBITDA (Dollars In Millions) Launches: Increased from $19M estimate at • New Ford end of Q4 FY19 due to better Integrated than anticipated tariff mitigation Tailgate Module and Overhead Consoles programs • Laundry platform • New E-bike programs EBITDA of New EBITDA of Addi
Slide 16: Appendix: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures To supplement the Company's financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Methode uses Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Income from Operations, Adjusted Gross Pr
Slide 17: Reconciliation of Non-GAAP Measures, Three Months Ended July 27, 2019
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES ($ in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Three Months Ended July 27, 2019 17
Slide 18: Reconciliation of Non-GAAP Measures, Three Months Ended July 28, 2018
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES ($ in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Three Months Ended July 28, 2018 18
Slide 19: Reconciliation of EBITDA and Adjusted EBITDA to Net Income
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES ($ in millions) Reconciliation of EBITDA and Adjusted EBITDA to Net Income 19
Slide 20: Reconciliation of Free Cash Flow to Net Income
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES ($ in millions) Reconciliation of Free Cash Flow to Net Income 20