Slide 1: Earnings Presentation Third Quarter Fiscal 2025
Methode Electronics, Inc. Earnings Presentation Third Quarter Fiscal 2025 March 6, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private • Ability to compete effectively; Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to • Our lengthy sales cycle; current events and finan
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 (Loss), Adjusted Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted Inco
Slide 4: Agenda
Agenda Introduction – Robert Cherry, VP Investor Relations Q3 Business Update – Jon DeGaynor, President and CEO Q3 Financial Update – Laura Kowalchik, CFO Q&A Session – All 4
Slide 5: Key Messages – Update since Q1
Key Messages – Update since Q1 1 Journey to transform business is well underway 2 Successfully executed 20 program launches YTD; 33 more to launch in the next five quarters 3 Numerous actions taken to address execution and costs; Bearing fruit now and into the future 4 Executive team extensively reb
Slide 6: FY25 Q3 Overview
FY25 Q3 Overview Key FY25 Q3 Sales Lower, Gross Profit Higher than Prior Year; Positive Free Cash Flow Financial Metrics Sales lower due to program roll-offs and softening EV demand Two previously disclosed major program roll-offs complete with negligible sales in the quarter Gross profit $4M
Slide 7: Transformation Update
Transformation Update Reset Build & Grow Shift Our Develop & Execute Performance Capabilities Culture New Strategy Improved Focus on Fundamental Refreshed Executive Team Working and Collaborating Will Deploy Proactive Portfolio Operational Metrics & Levers as “One Methode” Management Approach Instal
Slide 8: Refreshed Executive Management Team
Refreshed Executive Management Team Leaders with the Experience and Capability to Face and Overcome Challenges CPO CFO VP China & EMEA OPS SVP Global Auto CHRO CSO John Erwin Laura Kowalchik Sadek El Idrissi Lars Ullrich Karen Keegans Brad Corrodi • Started 7/17/24 • Started 10/1/24 • Promoted 11/27
Slide 9: FY24 – FY26 Sales Bridge
FY24 – FY26 Sales Bridge “Positive ($ in millions) Organic Sales $1,115 $49 + $20 Growth” $1,100 $37 $1,038 ** $57 ($56) ($4) ($54) ($39) ($25) Net Other Net Other GM T1 EV Lighting Stellantis GM T1 Appliance Stellantis GM EV Launches, Launches, Program Program Program Program Program Program Progra
Slide 10: Summary
Summary FY25 Q3 Sales Lower, Gross Profit Higher than Prior Year; Positive Free Cash Flow of $20M EV Activity Steady, 24% of Total Sales Market Headwind in Automotive; Tailwind in Data Centers Resulting in Strong Q3 Power Product Sales In Full Compliance with All Debt Covenants Improved Fo
Slide 11: Financial Results
QAETHODE ELECTRONICS Financial Results
Slide 12: FY25 Q3 Net Sales & Income from Operations
FY25 Q3 Net Sales & Income from Operations FY24 Q3 v. FY25 Q3 FY25 Q2 v. FY25 Q3 FY25 Q3 Performance Net Sales ($M) Note: FY24 Q3 and FY25 Q3 were 13-week periods, (8%) (18%) FY25 Q2 was a 14-week period $292.6 Full effect from two major auto program roll-offs $259.5 $239.9 $239.9 Auto program
Slide 13: FY25 Q3 EBITDA
FY25 Q3 EBITDA FY24 Q3 v. FY25 Q3 FY25 Q2 v. FY25 Q3 FY25 Q3 Performance Adjusted EBITDA ($M)* Note: FY24 Q3 and FY25 Q3 were 13-week periods, ($14.4) FY25 Q2 was a 14-week period Higher gross profit drove Y/Y improvement $2.8 Lower net sales drove Q/Q decline $26.7 $9.5 $12.3 $12.3 FY24 Q3 FY
Slide 14: FY25 Q3 Adjusted Pre-Tax Income & Earnings Per Share
FY25 Q3 Adjusted Pre-Tax Income & Earnings Per Share FY24 Q3 v. FY25 Q3 FY25 Q2 v. FY25 Q3 FY25 Q3 Performance Adj. Pre-Tax Income/(Loss) ($M)* $3.1 ($13.5) Note: FY24 Q3 and FY25 Q3 were 13-week periods, FY25 Q2 was a 14-week period $6.2 Higher gross profit drove Y/Y improvement ($10.4) ($7.3)
Slide 15: FY25 Q3 Balance Sheet
FY25 Q3 Balance Sheet Total Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) ($12.7) $6.8 ($19.5) $340.6 $327.9 $243.6 $224.1 $97.0 $103.8 FY25 Q2 FY25 Q3 FY25 Q2 FY25 Q3 FY25 Q2 FY25 Q3 15 All Debt Covenants in Full Compliance * See Appendix for reconciliation to GAAP
Slide 16: FY25 Q3 Free Cash Flow
FY25 Q3 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) ($0.7) ($8.1) $7.4 $28.8 $28.1 $16.6 $19.6 $8.5 $12.2 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 16 Returned to Positive Free Cash Flow * See Appendix for reconciliation to GAAP
Slide 17: Guidance
Guidance Fiscal 2025 Q4 Guidance • Net sales to be in a range of $240 to $255 million • Pre-tax income (loss) to be in a range of ($1) to $3 million Prior Fiscal 2025 Guidance • Prior full year net sales guidance was “similar to fiscal 2024”, the midpoint of Q4 net sales guidance would result in a f
Slide 18: Thank You
AETHODE ELECTRONICS Thank You
Slide 19: Appendix: Reconciliation of Non-GAAP Measures
Appendix METHODE -METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions) ‘Three Months Ended Nine Months Ended Februaryl, — January27, “February, Jamuary 27, 2025 2024 2025 2024 (13 Weeks)__(13 Weeks)__(40 Weeks)__(39 Weeks) EBITD. Net loss S$ (144)
Slide 20: Appendix: Reconciliation of Non-GAAP Measures
Appendix METHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES. RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions) ‘Three Months Ended Nine Months Ended February 1, January27, February], January 27, 2025 2008 2008 2024 3 Weeks) _(13 Werks) __(40 Weeks) __(39 Weeks) Free Cash Flow: Net cash p
Slide 21: Appendix: Reconciliation of Non-GAAP Measures
Appendix METHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions, exeept per share data) Three Months Ended February 12025 Famuary 27,2024 Diluted Diluted Loss from Pre-tax, Goss) ‘Loss from Pretax oss) Ueto, aga Netloss income YOM PACGX Nettos
Slide 22: Appendix: Reconciliation of Non-GAAP Measures
Appendix METHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions, except per share data) ine Months Edad Foray Lio aay TLRS a Dikied oa ined ds) Prete ease tpeome HE) PPEET Net tas eome ‘operations store operations share ‘U.S. GAAP (as reported