Slide 1: Fiscal 2021 First Quarter Financial Results
FISCAL 2021 FIRST QUARTER FINANCIAL RESULTS September 3, 2020
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: 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, Free Cash Flow and Net Debt. Reconciliation to the neare
Slide 4: FY21 Q1 Business Highlights
FY21 Q1 Business Highlights COVID-19 Non-Auto Markets Teams Committed to Working within Safety Guidelines Strength in Data Center and Appliance All Facilities Remained Open Commercial Vehicle Weak, but Forecasts Improving Global Auto Operational Efficiencies Strong Rebound in Second Half of Q1 Signi
Slide 5: FY21 Q1 Financial Highlights
FY21 Q1 Financial Highlights (Dollars in millions except per share amount) Diluted Earnings Sales Net Income* Per Share* YoY YoY YoY FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 Change Change Change $270.2 $190.9 (29.3%) $28.3 $20.7 (26.9%) $0.75 $0.54 (28.0%) * FY21 Q1 includes a discrete tax be
Slide 6: FY21 Q1 Business Highlights
FY21 Q1 Business Highlights COVID-19 Non-Auto Markets Teams Committed to Working within Safety Guidelines Strength in Data Center and Appliance All Facilities Remained Open Commercial Vehicle Weak, but Forecasts Improving Global Auto Operational Efficiencies Strong Rebound in Second Half of Q1 Signi
Slide 7: FY21 Q1 Select Business Awards
FY21 Q1 Select Business Awards (Expected annual sales, dollars in millions) Electric Vehicles • LED Interior Ambient Lighting for a U.S. Auto OEM $7.0 • Overhead Console for a European OEM SUV Platform $6.7 • Exterior Lighting for a U.S. Auto OEM $5.0 • LED Interior Functional Lighting for a U.S. Au
Slide 8: Financial Results
Q@AETHODE ELECTRONICS Financial Results
Slide 9: FY21 Q1 Sales Drivers
FY21 Q1 Sales Drivers (Dollars in millions) COVID-19 and Sales from Foreign FY20 Q1 Sales Net Lower New Program FY21 Q1 Sales Currency Other Volume Launches 9
Slide 10: FY21 Q1 Financial Results: Gross Margins and S&A
FY21 Q1 Financial Results Gross Margins Sales & Administrative • Lower sales in the Automotive and Industrial • Lower sales due to COVID-19 segments due to COVID-19 • Restructuring costs of $1.5 million to reduce costs • Restructuring costs of $1.9 million to reduce and improve operational profitabi
Slide 11: FY21 Q1 Financial Results: Net Income and EBITDA
FY21 Q1 Financial Results (Dollars in millions) Net Income EBITDA* • Lower sales due to COVID-19 • Lower sales due to COVID-19 • Change in discrete tax items of $9.1 million • Restructuring expense of $3.4 million • Restructuring expense of $3.4 million • Government COVID-19 assistance of $2.9 milli
Slide 12: 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 $349.8 $302.9 $292.6 $283.1 $275.1 $257.0 $246.7 $229.2 $209.4 $209.3 $179.5 $177.1 $134.8 $138.8 FY19 FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY21 FY21 Q2 Q2 Q3 Q3 Q4 Q4
Slide 13: FY21 Q1 Free Cash Flow
FY21 Q1 Free Cash Flow* (FCF) (Dollars in millions) FY20 Q1 FY21 Q1 Cash Provided by $19.1 $16.4 FY21 Q1 FCF Operating Activities $4.8 CapEx ($13.2) ($11.6) FCF $5.9 $4.8 * See Appendix for reconciliation to GAAP 13
Slide 14: Q2 Guidance
FY21 Q2 Guidance • Net sales for FY21 Q2 of $230 - $250 million • Assumes automotive run-rate from the end of Q1 • Assumes increased appliance and sensor sales 14
Slide 15: Appendix: Reconciliation of Non-GAAP Measures
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) EBITDA: Net Income Income Tax (Benefit) Expense Interest Expense, Net Amortization of Intangibles Depreciation EBITDA Free Cash Flow: Net Cash Provided by Operating Activities Purchases of Property, P
Slide 16: Appendix: Total Gross and Net Debt/EBITDA
Appendix TOTAL GROSS DEBT/EBITDA (Dollars in Millions) Net Income Income Tax Expense Interest Expense, Net Amortization of Intangibles Depreciation EBITDA Short-term Debt Long-term Debt Gross Debt Total Gross Debt/EBITDA. TOTAL NET DEBT/EBITDA (Dollars in Millions) Net Income Income Tax Expense Inte
Slide 17: Thank You
AETHODE ELECTRONICS Thank You