Slide 1: Knowles Supplemental Information
« knowles . smlamantal latarmaran OUPPIEMeEN Tal | ) February 9, 2022
Slide 2: Safe Harbor: Forward Looking Statements
Safe Harbor 4€ knowles Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financi
Slide 3: Continued execution on our margin focused strategy to deliver EPS and Free Cash Flow
Continued execution on our margin focused strategy to deliver EPS and Free Cash Flow REVENUE ($M) 243.2 234.3 4Q20 4Q21 4Q20 38.0 Non-GAAP GROSS PROFIT MARGIN® 43.3 4Q21 ADJUSTED EBIT | Non-GAAP DILUTED MARGIN® EPS* (%) ($) 22.0 0.48 18.3 4Q20 4Q21 4Q20 4Q21 4« knowles Delivering on our Adjusted EBI
Slide 4: 4Q 2021 Segment Performance: Precision Devices
242021 Segment Performance _| Precision Devices REVENUE Non-GAAP GROSS PROFIT MARGIN’ ($M) (%) 57.9 49.2 36.7 & is g X g $ g $ * For this Non-GAAP financial measure see the Appendix for GAAP to Non-GAAP reconciliation Strong organic growth in defense, MedTech and industrial markets Acquisition compl
Slide 5: 4Q 2021 Segment Performance: Audio
nent Perfo REVENUE ($M) 201.8 176.4 4Q20 4Q21 lon-GAAP finan Audio see the Appendix for GAAP to Non-GAA\ Non-GAAP GROSS PROFIT MARGIN® (%) AA 38.5 9 Sg S g g Revenue declined due to customer product launch timing, supply chain headwinds, and our focus on higher value MEMS Microphones, partially offs
Slide 6: Mid-term target of $2.50 EPS
remove the “mid- term target” time reference, just focus it on $2.50.
Slide 7: We have significantly improved our financial performance from 2017 to 2021
4€ knowles We have significantly improved our financial performance from 2017 to 2021. Since implementing our strategy to more deeply invest in market segments that yield the most attractive margins and free cash flow, our financial performance has continued to improve year-over-year. REVENUE Non-GA
Slide 8: Proven ability to deliver strong free cash flow
Proven ability to deliver strong free cash flow. Gross Margin Expansion FREE CASH FLOW* + Focused on markets that value our technology and ($M) manufacturing differentiation + Implemented a more disciplined approach to pricing * Divested lower gross margin businesses 133.5 * Completed acquisitions t
Slide 9: Q1 2022 Projections
« knowles Q1 2022 Projections GAAP ADJUSTMENTS NON-GAAP Revenue $197-203M - $197-203M Gross Profit Margin 38.2-40.2% 0.8% 39.0-41.0% Diluted EPS $0.12-0.14 $0.17 $0.29-0.31 Q1 2022 GAAP results are expected to include approximately $0.07 per share in stock-based compensation, $0.07 per share in rest
Slide 10: Appendix
Appendix 4« knowles
Slide 11: GAAP to Non-GAAP Reconciliation: 4Q 2021 and 4Q 2020
July 28, 2021 (in millions, except per share amounts) 2021 2020 Gross profit 100.9$ 92.0$ Gross profit margin 43.1% 37.8% Stock-based compensation expense 0.5 0.4 Production transfer costs (1) - 0.1 Non-GAAP gross profit 101.4$ 92.5$ Non-GAAP gross profit margin 43.3% 38.0% Operating expenses 60.3$
Slide 12: Reconciliation notes
July 28, 2021 Notes: (5) Income tax effects of non-GAAP reconciling adjustments are calculated using the applicable tax rates in the jurisdictions of the underlying adjustments. In 2021, these adjustments include a valuation allowance release of $59.1 million for our U.S. subsidiaries. (6) The numbe
Slide 13: Quarterly Non-GAAP reconciliation by segment
December 31, September 30, June 30, March 31, December 31, December 31, September 30, June 30, March 31, December 31, (Continuing operations, in millions) 2021 2021 2021 2021 2020 2021 2021 2021 2021 2020 Revenues 176.4$ 177.7$ 149.8$ 163.1$ 201.8$ 57.9$ 55.3$ 50.0$ 37.9$ 41.4$ Gross profit 72.8$ 71
Slide 14: Earnings before interest and income taxes by segment
December 31, September 30, June 30, March 31, December 31, (Continuing operations, in millions) 2021 2021 2021 2021 2020 Earnings before interest and income taxes Audio 42.0$ 36.6$ 28.0$ 30.4$ 45.4$ Precision Devices 15.4 14.0 9.8 4.5 5.5 Total segments 57.4 50.6 37.8 34.9 50.9 Corporate expense / o
Slide 15: Free cash flow reconciliation
(in millions) 2021 2020 2019 2018 2017 Cash provided by operating activities 182.1$ 128.1$ 123.9$ 98.5$ 92.9$ Less: Capital expenditures (48.6) (31.9) (41.2) (80.1) (51.6) Free cash flow (1) 133.5$ 96.2$ 82.7$ 18.4$ 41.3$ Free cash flow margin (1) 15.4% 12.6% 9.7% 2.2% 5.5% Years Ended December 31,