Slide 1: Earnings Presentation Second Quarter Fiscal 2025
Methode Electronics, Inc. Earnings Presentation Second Quarter Fiscal 2025 December 5, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation forward-looking statements within the meaning of the Private Securities • Ability to compete effectively; Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current • Our lengthy sales cycle; events and financial perf
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 CEO Introduction – Robert Cherry, VP Investor Relations Q2 Business Update – Jon DeGaynor, President and CEO Q2 Financial Update – Laura Kowalchik, CFO Q&A Session – All 4
Slide 5: FY25 Q2 Overview
FY25 Q2 Overview Key FY25 Q2 Sales On Track with Expectations; Pre-Tax Income Better than Expected Financial Metrics Pre-tax income driven by solid net sales and progress on cost reduction efforts Net Sales $293M EV Activity Steadily Growing xEV applications represented 20% of total consolidated net
Slide 6: Select Business Awards
FY25 Q2 Select Business Awards Reported Awards* $ in millions $140 $120 $100 • EV Busbar Assembly for U.S. Auto OEM $80 $140 + • EV Busbar Assembly for U.S. Auto OEM $43M* $60 • Molded Assembly for European Auto Supplier $40 $80 + • Busbar Assembly for U.S. Defense OEM $50 + $20 $20 + $0 + FY24 Q3 F
Slide 7: Building Executive Team
Building Executive Team Lars Ullrich appointed as Senior Vice President, Global Automotive Business New role overseeing all global strategic, launch, and commercial activities for auto 20+ years of business and strategic leadership experience in multinational companies, mainly at automotive su
Slide 8: Summary
Summary FY25 Q2 Sales On Track with Expectations; Pre-Tax Income Better than Expected EV Activity Steadily Growing – 20% of Total Sales Market Tailwinds in Data Centers; Headwinds in Auto & Commercial Vehicle In Full Compliance with All Debt Covenants Program Awards Continue to be Solid –
Slide 9: Financial Results
QAETHODE ELECTRONICS Financial Results
Slide 10: Net Sales & Income from Operations
FY25 Q2 Net Sales & Income from Operations FY24 Q2 v. FY25 Q2 FY25 Q1 v. FY25 Q2 FY25 Q2 Performance Net Sales ($M) 2% 13% FY25 Q2 was a 14-week period FY24 Q2 & FY25 Q1 were 13-week periods $288.0 $292.6 $292.6 Power product growth Y/Y and Q/Q in data centers $258.5 Europe Y/Y growth driven b
Slide 11: EBITDA
FY25 Q2 EBITDA FY24 Q2 v. FY25 Q2 FY25 Q1 v. FY25 Q2 FY25 Q2 Performance Adjusted EBITDA ($M)* $5.5 $16.9 Higher sales and gross profit drove Y/Y and Q/Q improvements Lower adjusted selling and administrative expense Y/Y and Q/Q $26.7 $26.7 $21.2 $9.8 FY24 Q2 FY25 Q2 FY25 Q1 FY25 Q2 As % of Net
Slide 12: Adjusted Pre-Tax Income & Earnings Per Share
FY25 Q2 Adjusted Pre-Tax Income & Earnings Per Share FY24 Q2 v. FY25 Q2 FY25 Q1 v. FY25 Q2 FY25 Q2 Performance Adj. Pre-Tax Income/ Loss ($M)* $3.8 $15.3 Higher net sales drove Y/Y and Q/Q improvements $2.4 Lower freight Y/Y and Q/Q $6.2 $6.2 Net interest expense higher Y/Y and Q/Q ($9.1) FY24
Slide 13: Balance Sheet
FY25 Q2 Balance Sheet Total Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) $9.7 ($64.5) $74.2 $330.9 $340.6 $243.6 $161.5 $169.4 $97.0 FY24 Q4 FY25 Q2 FY24 Q4 FY25 Q2 FY24 Q4 FY25 Q2 Elevated program launch activity driving higher YTD inventory investment 13 All Debt Covenants in Full Com
Slide 14: Free Cash Flow
FY25 Q2 Free Cash Flow Net Cash Used in Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) ($47.4) ($0.3) ($47.1) $10.7 $10.4 ($0.6) ($11.3) $(48.0) ($58.4) FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 14 Net Cash Impacted by Timing of Accounts Payable * See Appendix for reco
Slide 15: Guidance
Guidance Fiscal 2025 Full Year Guidance • Net sales reaffirmed to be similar to fiscal 2024, with Q3 expected to be similar to Q3 of fiscal 2024 • Adjusted pre-tax income raised from approaching breakeven to approximately breakeven • Q4 adjusted pre-tax income expected to be significantly stronger t
Slide 16: Thank You
AETHODE ELECTRONICS Thank You
Slide 17: Appendix
Appendix METHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions, except per share data) ‘Three Months Ended November 2, 2024 October 28, 2023 Diluted Diluted Income Pretax Net (loss) (Loss) Pretax Net (loss) from income (loss) income = "O® (lo
Slide 18: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions, except per share data) Six Months Ended November 2, 2024 October 28, 2023 Diluted Diluted Income —_Pre-tax Net (loss) (los) Pretax Net loss) from (oss) (loss) income = NEE loss). (loss),
Slide 19: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions) ‘Three Months Ended Six Months Ended November 2, October28, November2, October 28, 2024 2023 2024 2023 (14 Weeks) (23 Weeks) (27 Weeks) (26 Weeks) EBITDA: Net loss $ (16) $ (55.3) $ (9.9
Slide 20: Appendix
(AETHODE ELECTRONICS Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (unaudited) (in millions) Three Months Ended Six Months Endod October 28, November?, October 28, 2023 2024 2023 G4 Weeks) __(3 Weeks) _(27 Weeks)__(26 Weeks) Free Cash Flow: Net cash used in