Slide 1: Financial Results Fourth Quarter Fiscal Year 2020
Financial Results Fourth Quarter Fiscal Year 2020 Quarter Ended June 30, 2020 Supplementary Information to August 19, 2020 Earnings Conference Call
Slide 2: Safe Harbor Statement
KIMBALL ELECTRONICS (Nasdaq: KE) // Safe Harbor Statement Certain statements contained within this supplementary information and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation Reform Act of 1995 and are subject
Slide 3: Net Sales
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Net Sales $350 â10% from Q4'19 $325 $319 $313 $313 $307 $300 $294 $284 $286 In Millions $275 $266 $250 $225 $200 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 3
Slide 4: Net Sales Mix by Vertical Market
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Net Sales Mix by Vertical Market 100% 1% 2% 1% 2% 2% 2% 2% 1% 6% 5% 5% 5% 5% 4% 4% 6% 90% 22% 22% 21% 21% 21% 22% 26% 80% 22% 70% 60% 28% 30% % of Sales 31% 30% 32% 32% 32% 50% 43% 40% 30% 44% 42% 20% 40% 40% 40% 40% 40% 26% 10% 0% Q1'19 Q2'19 Q3'19 Q4
Slide 5: Gross Margin %
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Gross Margin % 10.0% 9.0% 8.5% 8.0% 7.2% 7.3% 7.3% 7.1% 6.8% 6.9% 7.0% 6.7% 6.0% % of Sales 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 5
Slide 6: Selling & Administrative Expense (%)
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Selling & Administrative Expense (%) 5.0% 4.5% 4.2% 4.2% % of Sales 4.0% 4.0% 3.9% 3.9% 3.6% 3.6% 3.5% 3.3% 3.0% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 6
Slide 7: Adjusted Operating Income
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Adjusted Operating Income (1) (Excludes goodwill impairment and lawsuit proceeds) $16.0 6.0% $14.5 $14.0 5.5% $12.0 5.0% $11.1 $10.6 $10.2 $10.1 $10.0 $9.5 4.5% 4.6% $8.7 % of Sales In Millions $8.0 4.0% $6.9 $6.0 3.6% 3.6% 3.5% 3.5% 3.3% $4.0 3.2% 3.0
Slide 8: Adjusted Net Income
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Adjusted Net Income (1) (Excludes goodwill impairment, net working capital adjustment on GES acquisition, lawsuit proceeds, and adjustments to provision for income taxes due to Tax Reform) $11.8 $12.0 $11.0 $10.0 $9.0 $8.5 $8.0 $7.4 $6.9 $7.0 $6.6 $6.6
Slide 9: Adjusted EBITDA
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Adjusted EBITDA (1) (Excludes goodwill impairment, net working capital adjustment on GES acquisition, and lawsuit proceeds) $24.0 $23.3 10.0% $22.0 $20.0 $19.5 8.0% $17.3 $17.6 $17.7 $18.0 $16.9 $17.2 7.4% $16.0 6.8% $14.0 $13.5 6.0% % of Sales In Mill
Slide 10: Return on Invested Capital
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Return on Invested Capital (1)(2) (Excludes goodwill impairment and lawsuit proceeds) 14.0% 12.0% 10.0% 9.3% 8.9% 9.0% 9.0% 8.7% 8.2% 8.0% 7.1% ROIC 6.9% 6.0% 4.0% 2.0% 0.0% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 (1) We define ROIC as after-ta
Slide 11: Operating Cash Flow
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Operating Cash Flow $45.0 $39.6 $40.0 $35.0 $30.0 $25.0 $21.5 $20.0 In Millions $15.0 $12.2 $12.0 $10.0 $5.6 $5.0 $0.0 ($0.3) -$5.0 -$10.0 ($10.0) -$15.0 ($14.6) -$20.0 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 11
Slide 12: Capital Expenditures and Depreciation & Amortization
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Capital Expenditures and $12.0 Depreciation & Amortization (1) $10.0 $7.9 $8.0 $8.0 $7.5 $7.7 $7.3 $7.4 $7.3 $6.8 In Millions $6.0 $11.7 $11.0 $10.4 $9.8 $4.0 $6.9 $5.7 $4.8 $2.0 $4.3 $0.0 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Cap Ex Depr & A
Slide 13: Reconciliation of Non-GAAP Results
KIMBALL ELECTRONICS (Nasdaq: KE) // Reconciliation of Non-GAAP Results (Unaudited, Amounts in Thousands) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Operating Income, as reported $ 7,032 $ 10,212 $ 14,497 $ 10,319 $ 11,115 $ 8,684 $ 10,588 $ 1,609 Add: Goodwill Impairment — — — — — — — 7,925 Les