Slide 1: Investor Presentation October 2014
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Investor Presentation October 2014 Exhibit 99.2
Slide 2: Safe Harbor Statement
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 2 Safe Harbor Statement Certain statements contained within this presentation may be considered forward-looking under the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties including, but not li
Slide 3: Kimball Electronics, Inc. Snapshot
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 3 Kimball Electronics, Inc. Snapshot Kimball Electronics, Inc. (NasdaqGS: KE) Differentiated package of value and well established in a growing niche of the Electronic Manufacturing Services (EMS) market A leading global EMS prov
Slide 4: Agenda
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 4 Agenda 1) Transaction Summary and Rationale 2) Kimball Electronics Overview and Strategic Plan 3) Kimball Electronics Financial Overview 4) Appendix
Slide 5: Transaction Summary and Rationale
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Transaction Summary and Rationale
Slide 6: Spin-Off Transaction Summary
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 6 Spin-Off Transaction Summary Kimball International, Inc. (“Kimball International”) has announced a stock spin-off of Kimball Electronics, Inc. (“Kimball Electronics”) Distributing Company: Kimball International, Inc. (NasdaqGS: KBA
Slide 7: The spin-off satisfies important business objectives for Kimball Electronics
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 7 The spin-off satisfies important business objectives for Kimball Electronics – Allows Kimball Electronics to allocate and deploy resources in a more focused way, while executing strategies that will fulfill the different customer s
Slide 8: Kimball Electronics Overview and Strategic Plan
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Kimball Electronics Overview and Strategic Plan
Slide 9: Key Messages
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 9 Differentiated package of value and well established in a growing niche of the EMS market Award winning service resulting in a loyal and diverse customer base with an average customer relationship of 8 years Significant opportu
Slide 10: Compelling Industry Dynamics
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 10 Automotive EMS sector forecasted to grow at a 8.5% CAGR from 2014 – 2018 driven by expansion of electronic dashes and advanced driver assistance systems (“ADAS”) as well as demand in emerging markets Medical EMS sector forecaste
Slide 11: Experienced Management Team
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 11 Donald D. Charron Chairman and CEO Michael K. Sergesketter Vice President, Chief Financial Officer Janusz F. Kasprzyk Vice President, European Operations Roger Chang (Chang Shang Yu) Vice President, Asian Operations Christopher J. T
Slide 12: Kimball Electronics Strategic Plan
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 12 Kimball Electronics Strategic Plan Our strategic plan is divided into four major areas to support long-term profitable growth of the business Focus on strategic customer relationships Strengthen market positions in automotive, m
Slide 13: Diversified and Attractive End Markets
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 13 Diversified and Attractive End Markets Our diversification strategy has enabled us to establish a more balanced portfolio Automotive (38%) Anti-lock Brakes Electronic Power Steering Occupant Safety Telematics Medical (29%)
Slide 14: Awards and Recognitions
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 14 Ranked on Forbes America’s most trustworthy companies for 2013 and 2014 Recognized by Future Electronics with the "Global Customer of the Year 2013" award Awarded highest overall customer rating at the 2014 Service Excellence
Slide 15: Blue Chip Customer Base
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 15 Attractive base of blue chip customers Excellent customer retention Customer scorecard process – Provides an objective measurement of Kimball Electronics’ performance – Customers can easily track improvement and compare perfor
Slide 16: Significant Customer Wins in Recent Years
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 16 Significant Customer Wins in Recent Years We intend to achieve sustained, profitable growth in the end markets we serve by supporting the global growth initiatives of our customers. Automotive Medical Industrial Public Safety New Cu
Slide 17: Global Manufacturing Footprint
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 17 Global Manufacturing Footprint Integrated network of state-of-the-art plants that share a common business operating system, technology, process development, and best practices Jasper, IN Tampa, FL Reynosa, Mexico Poznan, Poland Nanj
Slide 18: Common business operating system and capabilities
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 18 Common business operating system supported by one ERP system, global processes and procedures Experienced body of knowledge for the production of high quality, high reliability, and durable electronics Established lean six sig
Slide 19: Kimball Electronics Financial Overview
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Kimball Electronics Financial Overview
Slide 20: Historical Financial Overview
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 20 FY 2014 $ % Revenue $741.5 Operating Profit $29.9 4.0% Net Income $24.6 3.3% EBITDAR $48.5 6.5% Debt $0 Cash $26.2 Net Debt $0 Historical Financial Overview ($ in millions) $25.7 $13.6 $14.5 $20.8 3.6% 2.2% 2.1% 2.8% 0.0% 1.0% 2.0%
Slide 21: Capital Structure and Strong Cash Flow Provide Flexibility
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 21 12% 14% 16% 18% 20% $95 $100 $105 $110 $115 $120 2011 2012 2013 2014 Working Capital % of Sales Well capitalized $63M cash with zero debt 5 year $50M credit facility (plus $25M accordion) Capital Structure and Strong Cash Flow
Slide 22: Why Invest in Kimball Electronics?
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 22 Why Invest in Kimball Electronics? Differentiated package of value and well established in a growing niche of the EMS market Award winning service resulting in a loyal and diverse customer base with an average customer relations
Slide 23: Appendix
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Appendix
Slide 24: Non-GAAP Reconciliation
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 24 Non-GAAP Reconciliation (millions $) 2011 2012 2013 2014 Net Income $4.4 $23.9 $21.5 $24.6 Deduct: Interest Income, net $0.1 $0.2 $0.1 $0.0 Add: Depreciation/Amortization $16.1 $16.8 $17.5 $17.9 Add: Provision/(Benefit) for Income T
Slide 25: 2014 Key Strategic Priorities
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 25 2014 Key Strategic Priorities Maintain Margin Improvement ■ Stay focused on Lean Six Sigma Improvement projects ■ Continue to drive material cost savings ■ Remain disciplined in new business development for high margin opportunities
Slide 26: Customer Relationship Management (CRM) Model
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 26 Collaborative team facilitates support throughout the product life cycle utilizing the Company’s engineering expertise – CRM model combines members of our team from within our manufacturing facilities and members of our business d
Slide 27: Comprehensive Offering of Services and Capabilities
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 27 Electronics Product Design Engineering Services Reliability Test Lab (RTL) Rapid Prototype Services (RPS) New Product Introduction (NPI) Electronic Data Interchange (EDI) Se rv ice s a nd C apab ilit ies Design for Manufacturabili
Slide 28: Comprehensive Offering of Services and Capabilities (continued)
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 28 Comprehensive Offering of Services and Capabilities (continued) Electronics Manufacturing Capabilities Flexible Supply Chain Strategies Electronic Repair Depot Services Transfer of Work (TOW) Customer Relationship Management [pic] [
Slide 29: Kimball Electronics' Package of Value
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 29 Kimball Electronics’ Package of Value (“POV”) Humidity Temperature Cycling Chemical Attack Vibration Thermal Shock Mechanical Shock Salt & Corrosion Harsh Temperatures Water Ingress Knowledge of Product Requirements Supplier Develop
Slide 30: Robust New Product Introduction Process
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 30 Volume Production Quality / Testing Manufacturing Prototype Production Detailed Design and Engineering Concept Generation & Product Design Preliminary Planning We understand that working directly with our customers is vital to our
Slide 31: Our History
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 31 Our History Kimball International has evolved, changed and grown into a pre-eminent international corporation over the last six decades Kimball Electronics begins to focus the majority of its resources on contract manufacturing The
Slide 32: Our History (continued)
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 32 Kimball Electronics acquires Genesis Kimball Electronics opens Jasper Plant 2 - high mix - low volume focused factory Kimball Electronics Thailand begins production for Bayer Medical Kimball Electronics acquires Bayer Medical operat
Slide 33: Our Guiding Principles
176 0 0 204 204 204 255 48 48 46 46 46 0 153 204 249 178 35 Page 33 Our Guiding Principles Our People – Strength We believe that our people are our most important asset. Kimball has been built upon the tradition of mutual trust, personal integrity, a spirit of cooperation, respect for dignity of the