Slide 1: Fiscal 2021 Fourth Quarter & Full Year Financial Results
FISCAL 2021 FOURTH QUARTER & FULL YEAR FINANCIAL RESULTS June 24, 2021
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 provid
Slide 3: Non-GAAP Financial Measures
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 financial measures, such as EBITDA, Net Debt, and Free Cash Flow. Reconciliation to the near
Slide 4: Q4 Business Highlights
FY21 Q4 Business Highlights Quarterly Performance Electric Vehicle Activity Sales of $301 Million Over 13% of Q4 Consolidated Sales Organic Sales Up 37% Expecting Mid-Teens % in FY22 Margin Headwind from Supply Chain Disruptions Growth in Power Distribution Business Activity Balance Sheet Growth in
Slide 5: Q4 Select Business Awards
FY21 Q4 Select Business Awards Electric & Hybrid Electric Vehicles • Battery and Motor Busbars for European Auto OEM • Busbar Assembly for European Commercial Vehicle OEM • Exterior Door Activation Switch for U.S. Auto OEM • e-Motor Busbar Ring for European Auto OEM $15M* • Busbar Assembly for U.S.
Slide 6: FY21 Business Highlights
FY21 Business Highlights Record Sales Electric Vehicle Growth FY21 Sales of $1,088 Million Over 12% of FY21 Consolidated Sales Organic Growth User Interface, LED Lighting, & Power Distribution Record Free Cash Flow Strong Order Flow FY21 Free Cash Flow* of $155 Million Pipeline of Awards Supports Fu
Slide 7: Methode Was Incorporated on May 20, 1946
Methode Was Incorporated on May 20, 1946 7
Slide 8: Financial Results
Q@AETHODE ELECTRONICS Financial Results
Slide 9: Q4 Financial Highlights
FY21 Q4 Financial Highlights (Dollars in millions except per share amounts) Diluted Earnings Net Sales Net Income Per Share $301.0 $210.6 $0.79 $0.81 $30.1 $31.1 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 9
Slide 10: Q4 Financial Results
FY21 Q4 Financial Results Gross Margin Sales & Administrative • Higher material costs • Higher stock-based compensation expense* • Higher logistics costs including freight • Higher performance-based cash compensation expense* • Supply chain shortages and disruptions • Unfavorable foreign currency tr
Slide 11: Q4 Financial Results
FY21 Q4 Financial Results Net Income EBITDA* • Lower tax expense • Lower income from operations • Favorable foreign currency translation • Lower other income Partially offset by: Partially offset by: • Higher costs from supply chain shortages • Favorable foreign currency translation • Higher sales a
Slide 12: Financial Highlights
FY21 Financial Highlights (Dollars in millions except per share amounts; FY21 results include 52 weeks and FY20 results include 53 weeks) Diluted Earnings Net Sales Net Income Per Share $1,023.9 $1,088.0 $123.4 $122.3 $3.26 $3.19 FY20 FY21 FY20 FY21 FY20 FY21 12
Slide 13: Deleveraging Since Grakon Acquisition in FY19 Q2
Deleveraging Since Grakon Acquisition in FY19 Q2 (Dollars in millions) Gross and Net Debt $357.6 $352.1 $292.6 $246.7 $240.1 $209.4 $134.8 $6.9 FY19 Q2 FY19 Q2 FY19 Q4 FY19 Q4 FY20 Q4 FY20 Q4 FY21 Q4 FY21 Q4 Gross Net Gross Net Gross Net Gross Net • Gross Debt / TTM EBITDA Ratio* is 1.25 at end of F
Slide 14: Free Cash Flow
FY21 Free Cash Flow (Dollars in millions) FY20 Q4 FY21 Q4 FY20 FY21 Net Cash Provided by Record FY21 Operating Activities $58.0 $36.0 $140.6 $179.8 Free Cash Flow* $154.9 Capital Expenditure ($10.2) ($4.8) ($45.1) ($24.9) Free Cash Flow $47.8 $31.2 $95.5 $154.9 * See Appendix for reconciliation to G
Slide 15: FY22 Guidance
FY22 Guidance FY2022 Q1 • Net sales $285 - $300 million • Diluted earnings per share of $0.68 - $0.80 FY2022 Full Year • Net sales for FY22 of $1,175 - $1,235 million • Diluted earnings per share for FY22 of $3.35 - $3.75 Both periods are subject to a variety of risk factors including the ongoing se
Slide 16: Thank You
AETHODE ELECTRONICS Thank You
Slide 17: Appendix
AETHODE Ap pe n d ix ELECTRONICS METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) ‘Three Months Ended Fiscal Year Ended May 1, May 2, May 1, May 2, 2021 2020 2021 2020 (G3 Weeks) (3 Weeks) (52 Weeks) (53 Weeks) EBITDA: Net income 8 311 $ 30.1 $
Slide 18: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Debt: Short-term debt $ 15.3 $ 15.2 $ 15.7 $ 15.4 $ 15.2 $ 15.1 $ 15.3 $ 15.4 $ 15.3 $ 15.4 $
Slide 19: Appendix
Net income $ 122.3 Income tax expense 12.6 Interest expense, net 5.2 Amortization of intangibles 19.3 Depreciation 32.2 Appendix EBITDA $ 191.6 Short-term debt 14.9 Long-term debt 225.2 Gross debt $ 240.1 Total Gross Debt/EBITDA 1.25 TOTAL GROSS DEBT/EBITDA TOTAL NET DEBT/EBITDA (in millions) (in mi