Slide 1: 3rd Quarter 2022 Earnings Release Supplemental Information
rd 3 Quarter 2022 Earnings Release Supplemental Information October 27, 2022
Slide 2: Safe Harbor
Safe Harbor Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial performa
Slide 3: Delivering on expectations despite challenging macroeconomic backdrop
Q3 2022 Year-over-Year Delivering on expectations despite challenging macroeconomic backdrop • Strong profitability REVENUE Non-GAAP ADJUSTED EBIT Non-GAAP DILUTED metrics despite ($M) GROSS PROFIT MARGIN* MARGIN* EPS* (%) (%) ($) macroeconomic 22.6 0.45 headwinds 41.8 233.0 38.5 • Gross Profit Marg
Slide 4: Precision Devices
Q3 2022 Segment Performance Precision Devices REVENUE Non-GAAP • Delivered record revenue as GROSS PROFIT MARGIN* ($M) (%) growth trends remain strong across defense, medtech and EV 64.4 47.0 47.5 55.3 • Gross Profit Margin expansion driven by favorable product and customer mix and +50 productivity
Slide 5: Audio
Q3 2022 Segment Performance Audio • Revenue declined due to a weak consumer electronic REVENUE Non-GAAP GROSS PROFIT MARGIN* market and pull forward of ($M) (%) Hearing Health demand from our customers into 1H 2022 177.7 40.6 • Gross margin declined year- 33.9 over-year on lower factory 113.8 capaci
Slide 6: Q4 2022 Guidance
Outlook Q4 2022 Guidance GAAP ADJUSTMENTS NON-GAAP Revenue $200 to $220 million — $200 to $220 million Gross Profit Margin 36.3% to 38.3% 0.20 % 36.5% to 38.5% Diluted EPS $0.20 to $0.24 $0.11 $0.31 to $0.35 Q4 2022 GAAP results are expected to include approximately $0.07 per share in stock-based co
Slide 7: Appendix
« knowles Appendix
Slide 8: Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures Quarter Ended September 30, (in millions, except per share amounts) 2022 2021 Gross profit $ 40.0 $ 96.9 Gross profit margin 22.4 % 41.6 % Stock-based compensation expense 0.5 0.3 Notes: Restructuring charges 28.1 — (1) Other (
Slide 9: Historical Segment Data
Historical Segment Data Audio Precision Devices Quarter Ended Quarter Ended September 30, June 30, March 31, December 31, September 30, September 30, June 30, March 31, December 31, September 30, (Continuing operations, in millions) 2022 2022 2022 2021 2021 2022 2022 2022 2021 2021 Revenues $ 113.8
Slide 10: Reconciliation of Segment EBIT to Consolidated Net Earnings
Reconciliation of Segment EBIT to Consolidated Net Earnings Quarter Ended September 30, June 30, March 31, December 31, September 30, (Continuing operations, in millions) 2022 2022 2022 2021 2021 (Loss) earnings before interest and income taxes Audio $ (16.9) $ (216.2) $ 22.2 $ 42.0 $ 36.6 Precision
Slide 11: Reconciliation of Net Debt
Reconciliation of Net Debt December 31, 2022 (Continuing operations, in millions) Current maturities of long-term debt $ — Long-term debt 48.0 Total debt 48.0 Less: Cash and cash equivalents (48.0) Net debt $ — 2022 estimates are calculated using the mid-point of Q4 guidance as of October 27, 2022.