Slide 1: Sidoti Small-Cap Virtual Conference
Methode Electronics, Inc. Sidoti Small-Cap Virtual Conference Donald W. Duda, President & CEO September 21, 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 Income from Operations, Adjusted Selling and Admin
Slide 4: Methode at a Glance
Methode at a Glance A leading global supplier of custom-engineered solutions for user interface, LED lighting system, power distribution and sensor applications in the Established 1946 Headquartered in Chicago, IL transportation, construction equipment, and cloud computing end markets. NYSE: MEI 6,7
Slide 5: Environmental, Social, Governance (ESG) Overview
Environmental, Social, Governance (ESG) Overview Methode’s ESG strategy builds upon our robust governance framework, Published Inaugural CSR Report in 2023 commitment to a safe work environment, and focus on people. Underpinning our ESG strategy is our relatively low risk level, which is recognized
Slide 6: The Methode Journey
The Methode Journey 6 Over 75 Years of Expertise Navigating the Evolution of Technology
Slide 7: Global Manufacturing Footprint
Global Manufacturing Footprint Suzhou, China 7 Cost-Efficient Global Footprint – “Make Where We Sell”
Slide 8: Solutions – Products
Solutions – Products % of Sales User Interface 52% • Center Consoles • Overhead Consoles • Switch Modules • Remote Controls • Ambient Lighting • Signal Lights LED Lighting 28% • Forward & Fog Lights • Rear Stop Lights • Warning Lights • Work Lights Power Distribution 13% • Battery Disconnects • Busb
Slide 9: Solutions – End Markets & Customers
Solutions – End Markets & Customers % of Sales User Interface 52% • Automotive & EV • Commercial Vehicle • Construction Equipment • Cranes & Lifts • Automotive & EV • Construction Equipment LED Lighting 28% • Bus • Commercial Vehicle • Power Sports • Rail • Aerospace • Energy Storage Power Distribut
Slide 10: Investment Thesis
Investment Thesis Exposure to Key Product Portfolio Operational & Strong Balance Market Trends Management Quality Excellence Sheet Focus Electrification & Sustainability Focused on Systems Integration Lean & Vertical Integration Balanced Capital Allocation Commercial Vehicles, EVs vs. Components D
Slide 11: Strategic Priorities
Strategic Priorities In-Depth Engagement with Original Equipment Manufacturers (OEMs) HOW WE WIN Integrated Design, Production, and Support Lean, Large-Scale Operations Situated in Customer’s Regions Vertically Integrated Manufacturing with Recognized World Class Quality Capitalize on Growing EV, Co
Slide 12: EV Driving Increased Content Per Vehicle
EV Driving Increased Content Per Vehicle Methode’s Internal Combustion Engine (ICE) Vehicle Content ~$600M in EV Program Awards since FY 2021 • User Interface • Lighting ICE $1.0x $ in millions Cumulative Electric Vehicle Awards* • Sensors $600 $500 $400 $300 $597 Methode’s Hybrid (HEV) and $200 Bat
Slide 13: EV Solutions for the “Top Hat”
EV Solutions for the “Top Hat” LED Lighting Door (Interior & Exterior) Activation Switches & Consoles Sensors & Cameras By-Wire Controls Shift-by-Wire Steer-by-Wire Brake-by-Wire 13 Leveraging User Interface, Lighting, and Sensor Technologies
Slide 14: EV Solutions for the “Skateboard”
EV Solutions for the “Skateboard” Battery Inverter & Monitoring Charger Molded Busbar Current Sensors Sub-Assemblies Electric Motors & Drives Busbars Park Lock Actuator Battery Busbars & Module Connectors Connections Battery Disconnect & Power Distribution BDU PDU 14 Leveraging Power Distribution an
Slide 15: Capital Allocation History and Strategy
Capital Allocation History and Strategy $ in millions Balanced Capital Share Buyback & Dividend 31%: Returning Capital to Allocation Strategy $177 Shareholders Return Capital to Shareholders via Share Buyback and Dividend Debt Reduction, Net $76 13%: Deleveraging Current Share Buyback Program Ba
Slide 16: Balance Sheet Discipline
Balance Sheet Discipline Net Debt / TTM EBITDA* 1.3 1.1 0.7 0.2 0.0 FY19 FY20 FY21 FY22 FY23 Acquisitions: Net Debt / TTM EBITDA Ratio of 1.1 at End of FY23 Consistent Practice of Deleveraging Post Acquisitions Balance Sheet Well-Positioned for Additional M&A * See Appendix for reconciliation
Slide 17: Inorganic Growth Framework
Inorganic Growth Framework Engineered Products and/or Subsystems for OEMs Target Technology Solutions Partner to OEMs Industrial Market Transportation Aligns with Our Strategic Priorities Can Leverage Methode’s Existing: Fit ‒ Technologies ‒ Path to Market ‒ Manufacturing & Operational C
Slide 18: Thank You
QAETHODE ELECTRONICS Thank You
Slide 19: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (AETHODE ELECTRONICS (in millions) FY19 FY20 FY21 FY22 FY23 EBITDA: Net income $ 916 $ 1234 $ 1223 $ 1022 $ 771 Income tax expense 12.0 253 12.6 163 13.0 Interest (income) expense, net 83 10.1 52 35 2