Slide 1: Fiscal 2024 Second Quarter Financial Results
FISCAL 2024 SECOND QUARTER FINANCIAL RESULTS December 7, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities • Impact from production delays or cancelled orders; Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current • Investment in programs
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 Adjusted Net Income, Adjusted Earnings Per Share, Adjusted Pre-Tax Income, Adjusted Income from Operations, E
Slide 4: FY24 Q2 Highlights
FY24 Q2 Highlights Quarterly Performance Electric Vehicle Activity Sales of $288M 19% of Consolidated Sales, 20% YTD Auto Segment Down Due to Roll Offs, e-Bike, & UAW Strike $15M+ in EV Program Awards Goodwill Impairment FY24 EV Sales Dependent on Launch Timing & Take Rates Business Activity Balance
Slide 5: Summary
Summary FY24 Q2 Sales Continue to be Solid, Despite Several Headwinds Nordic Lights Acquisition Complete Heavy Focus on Improving Operational Efficiency and Executing New Program Launches Resumed Share Purchase Activity FY24-25 Sales Guidance Program Roll Offs and Market Headwinds in Comme
Slide 6: FY23 – FY25 Sales Bridge
FY23 – FY25 Sales Bridge ($ in millions) Program Nordic New Program Market Program New Program Market Roll Offs Lights Launches & Other Roll Offs Launches & Other FY23 FY24 Guidance FY25 Guidance Actual Midpoint Midpoint 6 FY25 Lowered Primarily Due to Customer Program Launch Delays
Slide 7: Financial Results
QAETHODE ELECTRONICS Financial Results
Slide 8: FY24 Q2 Net Sales & Income from Operations
FY24 Q2 Net Sales & Income from Operations Net Sales Income/(Loss) Adjusted Income ($M) from Operations from Operations* ($M) ($M) (9%) (256%) (82%) $315.9 $288.0 $32.8 $33.3 $6.0 $(51.3) FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 − Auto Program Roll Offs − Goodwill Impairment FY24 Excludes: −
Slide 9: FY24 Q2 Earnings Per Share & EBITDA
FY24 Q2 Earnings Per Share & EBITDA Diluted Earnings Adjusted Diluted EBITDA* Adjusted EBITDA* per Share Earnings per Share* ($M) ($M) ($) ($) (307%) (92%) (180%) (55%) $0.75 $0.76 $0.06 $46.1 $46.6 $21.2 $(1.55) $(36.7) FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY24 Excludes:
Slide 10: FY24 Q2 Balance Sheet
FY24 Q2 Balance Sheet Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) $25.2 $332.0 $59.7 $306.8 ($34.5) $157.0 $209.5 $122.5 $149.8 FY23 Q4 FY24 Q2 FY23 Q4 FY24 Q2 FY23 Q4 FY24 Q2 10 Debt Increase Mainly Driven by Capital Investments * See Appendix for reconciliation to GAAP
Slide 11: FY24 Q2 Free Cash Flow
FY24 Q2 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* (Used in) Operating Activities Expenditure ($M) ($M) ($M) ($16.0) $2.3 ($18.3) $15.4 $8.4 $10.7 $7.0 $(0.6) FY23 Q2 FY24 Q2 ($11.3) FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 11 Lower Free Cash Flow Mainly Due to Lower Net Income * See Appendi
Slide 12: Guidance
Guidance Fiscal 2024 Q3 Guidance • Net sales similar to Q2 • Adjusted diluted earnings per share modestly higher than Q2 Fiscal 2024 Full Year Guidance • Net sales range of $1,140 - $1,180 million, unchanged • Diluted earnings per share range of ($1.40) – ($1.14), down from $0.80 - $1.00 • Adjusted
Slide 13: Thank You
AETHODE ELECTRONICS Thank You
Slide 14: Appendix
Appendix METHODE ELECTRONICS, RECONCILIATION OF NON-GAAP MEASURES (Uni (in millions) EBITDA: Net (loss) income Income tax (benefit) expense, net Interest expense, net Amortization of intangibles Depreciation EBITDA Goodwill impairment Acquisition costs Acquisition-related costs - purchase accounting
Slide 15: Appendix
Appendix METHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) Gin millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Three Months Ended October 28, 2023, Purchase accounting adjustments Loss on sale US.GAAP Goodwill Ac
Slide 16: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Six Months Ended October 28, 2023 Purchase accounting adjustments Loss on sale US.GAAP Goodwill Acquisition r