Slide 1: Fiscal 2021 Third Quarter Financial Results
FISCAL 2021 THIRD QUARTER FINANCIAL RESULTS March 4, 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, Free Cash Flow, Net Debt, and Adjusted Net Sales. Reconc
Slide 4: Q3 Business Highlights
FY21 Q3 Business Highlights Quarterly Performance Electric Vehicle Growth Sales of $295 Million Over 12% of Q3 Consolidated Sales Sales Up 8% on Run Rate Basis* Expecting >10% in FY21 Gross Margin Headwinds Expecting Mid-Teens % in FY22 Global Auto Balance Sheet Growth in EV and Asia Strong Free Cas
Slide 5: Q3 Select Business Awards
FY21 Q3 Select Business Awards (Expected annual sales) Electric & Hybrid Electric Vehicles • AC Motor Busbar Assembly for U.S. Auto OEM • High Voltage Power Unit for U.S. Commercial Truck OEM • DC Dispenser for U.S. Charging Station OEM $14M • HVAC Control Module for European Auto OEM • Busbar for E
Slide 6: EV Solutions for the "Top Hat"
EV Solutions for the “Top Hat” LED Lighting (Interior & Exterior) Sensors & Cameras Switches & Touchscreens Charging Port Sub-System By-Wire Controls Shift-by-Wire Steer-by-Wire 6 Leveraging User Interface, Lighting, & Sensor Toolbox
Slide 7: EV Solutions for the "Skateboard"
EV Solutions for the “Skateboard” Inverter & Molded Busbar Battery Charger Sub-assemblies Monitoring Current Sensors Electric Sensors Motors Position & Torque Sensors Busbars & Power Connectors Battery Battery Disconnect Module & Power Connections Busbars & Distribution Connectors BDU PDU 7 Leveragi
Slide 8: Financial Results
Q@AETHODE ELECTRONICS Financial Results
Slide 9: Q3 Financial Highlights
FY21 Q3 Financial Highlights (Dollars in millions except per share amounts; FY21 results include 13 weeks and FY20 results include 14 weeks) Diluted Earnings Net Sales Net Income Per Share $285.9 $295.3 $1.09 $41.2 $0.83 $31.9 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 +7.6% on Weekly Run Rate
Slide 10: Q3 Financial Results
FY21 Q3 Financial Results (FY21 results include 13 weeks and FY20 results include 14 weeks) Gross Margin Sales & Administrative • Premium freight and factory inefficiencies due • Lower compensation to supply chain disruptions • Lower travel expense • Tariff expense • Lower restructuring costs • Prod
Slide 11: Q3 Financial Results
FY21 Q3 Financial Results (Dollars in millions; FY21 results include 13 weeks and FY20 results include 14 weeks) Net Income EBITDA* • Supply chain disruptions • Lower income from operations • Lower other income • Lower other income • Higher income tax expense Partially offset by: Partially offset by
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 $347.6 $302.9 $292.6 $283.1 $275.1 $246.7 $257.0 $244.6 $229.2 $209.4 $209.3 $179.5 $177.1 $134.8 $138.8 $105.3 $25.9 FY19 FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 F
Slide 13: Q3 Free Cash Flow
FY21 Q3 Free Cash Flow (Dollars in millions) FY21 Q3 FY20 Q3 Cash Provided by FY21 Q3 $87.1 $14.8 Operating Activities Free Cash Flow Capital Expenditure ($4.9) ($8.1) $82.2 Free Cash Flow $82.2 $6.7 13
Slide 14: Q4 Guidance
FY21 Q4 Guidance • Net sales for FY21 Q4 of $270 - $300 million • Diluted earnings per share for FY21 Q4 of $0.60 - $0.82 • Subject to a variety of risk factors including the ongoing semiconductor shortage, weather-related supply chain disruption, and COVID-19 pandemic situations • Assumes tax rate
Slide 15: Thank You
AETHODE ELECTRONICS Thank You
Slide 16: Appendix
Appendix AETHODE ELECTRONICS METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (im millions) ‘Three Months Ended ‘Nine Months Ended January 30, Februaryl, January30, ‘February 1, 2021 2020 2021 2020 (13 Weeks) _(14 Weeks) _ 39 Weeks) (40 Weeks) EBITDA: Net In
Slide 17: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) Net Debt: Short-Term Debt Long-Term Debt Total Debt Less: Cash and Cash Equivalents Net Debt Adjusted Net Sales: ‘Net Sales Effect of Currency Translation Impact of 14th Week Adjusted Net Sales (in mi
Slide 18: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) FY15 FY16 FY17 FY18 FY19 FY20 EBITDA: Net Income $ 101.1 $ 84.6 $ 92.9 $ 57.2 $ 91.6 $ 123.4 Income Tax Expense 19.8 26.3 23.0 66.6 12.0 25.3 Interest (Income) Expense, Net (0.7) (0.7) (
Slide 19: Appendix: Total Gross Debt/EBITDA
Appendix TOTAL GROSS DEBT/EBITDA (Dollars in Millions) LTM January 30 2021 Net Income $ 121.3 Income Tax Expense 17.2 Interest Expense, Net 6.4 Amortization of Intangibles 19.2 Depreciation 31.3 EBITDA $ 195.4 Short-term Debt 15.4 Long-term Debt 229.2 Gross Debt $ 244.6 Total Gross Debt/EBITDA 1.3 T