Kimball Electronics, Inc. · NASDAQ:KE
Kimball Electronics — Stifel 2024 Cross Sector Insight Conference
21 slides from Kimball Electronics's conference presentation, Jun 5, 2024
Slide 1: Company Overview
= Kimball Electronics Winnin Together THE KIMBALL WAY Company Overview June 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained within this release are considered forward-looking, including our fiscal year 2024 guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predic
Slide 3: Kimball Electronics (Nasdaq: KE)
Kimball Electronics (Nasdaq: KE) Global, multifaceted solutions provider of Electronics Manufacturing Services (EMS) recognized for excellence and leadership in highly regulated and complex industries Diversified portfolio of products that offer long runways of growth supported by secular tailwinds
Slide 4: Providing end-to-end solutions and support
Providing end-to-end solutions and support Kimball Electronics | 4
Slide 5: A rich history of growth and global expansion
A rich history of growth and global expansion KimballElectronics Kimball Electronics| |55
Slide 6: Our global footprint with an "in-region" focus
Our global footprint with an “in-region” focus Kimball Electronics | 6
Slide 7: Track record of growth and profitability
Track record of growth and profitability Improvement vs PY REVENUE $1,823 +35% Adj Op Income %* 4.8% +110 bps EPS $2.22 +79% ROIC %* 9.4% +220 bps * Non-GAAP measure. Reconciliation available in the Investor Relations section of our corporate website. Kimball Electronics | 7
Slide 8: Diversified portfolio focused on 3 end markets
Diversified portfolio focused on 3 end markets REVENUE $820 $494 $475 Fiscal 2023 ($ in millions) GROWTH +41% +26% +33% Compared to the prior year % of TOTAL Fiscal 2023 MMI RANKING 8th 7th 19th Calendar 2022 * Excludes “other” which represented 2% of total company sales. Beginning in fiscal 2024, t
Slide 9: Automotive fueled by vehicle "electrification"
Automotive fueled by vehicle “electrification” The addition of electronic content could generate growth 4x the OEMs’ vehicle production rate • ~70% of Automotive is electronic power steering • Next generation braking also a growth driver • Architecture similar for ICE, EV, and hybrid vehicles STEERI
Slide 10: Medical supporting the continuum of care
Medical supporting the continuum of care PATIENT MONITORING SLEEP THERAPY Favorable demographics and advances in technology 1 • Aging population • Connected care 2 • Affordability & access • Decreasing device size to care • Connected drug delivery Products supporting prevention, early diagnostics, c
Slide 11: Industrial promoting clean energy and innovation
Industrial promoting clean energy and innovation Well-positioned within value chain: • Most major brands of residential and commercial heating & cooling systems CLIMATE CONTROL AND SMART ENERGY • Factory automation MANAGEMENT 1 • Charging stations Legislation and incentive supporting decarbonization
Slide 12: Guide to long-term success
Guide to long-term success Kimball Electronics | 12
Slide 13: Our unique culture is a differentiator
Our unique culture is a differentiator “Our corporate culture is a differentiator in the marketplace and a competitive strength in the industries we serve. It manifests itself in performance while centered on respect and appreciation for others, enriching the lives of our employees with meaningful w
Slide 14: Why Kimball Electronics wins
Why Kimball Electronics wins Manufacturing expertise centered on high levels of complexity, quality, reliability, and durability Unique corporate culture that manifests itself into performance Long-term customer relationships driving sustainable growth and enable multi-year planning and operating ef
Slide 15: Lasting partnerships with award-winning support
Lasting partnerships with award-winning support CIRCUITS ASSEMBLY Service Excellence Awards • Dependability / Timely Delivery • Technology • Value for the Price • Manufacturing Quality Awards based solely on direct customer input and are an indication of outstanding achievement in service excellence
Slide 16: The environment is our home
The environment is our home Annual Guiding Principles report published for calendar 2023 • How We Are Winning Together The Kimball Way • Available on our corporate website Morningstar Sustainalytics rated KE #1 for ESG risk among electronics manufacturers ISS Prime ESG corporate rating places KE in
Slide 17: Profitability
THESE PROGRAMS PROGRESS Investing in growth at a slow and steady pace, allowing for long-term sustainable growth gained through sourcing efficiencies and process improvements. PROGRAM LIFECYCLES Initial investments volume ramp and utilization improves Efficiencies from sourcing and process Profitabi
Slide 18: Update on our strategic direction and structure
Update on our strategic direction and structure • Divesting our Automation, Test & Measurement business • Increasing the focus and support on our core EMS business • Realigning our Medical solutions business unit into our EMS medical vertical • Elevated two key executives to enterprise-wide operatio
Slide 19: Operating environment challenged for EMS
Operating environment challenged for EMS • Expect macro headwinds to persist in fiscal 2025 • During this period of end market softness, we are taking action by: • Proactively aligning our cost structure with short-term demand trends • Maintaining competitiveness with stable operating margins • Focu
Slide 20: Guidance for fiscal year 2024
Guidance for fiscal year 2024 • Reiterating our guidance for adjusted operating income • Range of 4.2% to 4.6% of net sales • Updated guidance for net sales • Expected to decline 4% to 6% compared to fiscal 2023 • Previous estimate was a decline of 2% to 4% • Updated guidance for capital expenditure
Slide 21: For more information, please contact
For more information, please contact: Andy Regrut Treasurer and Investor Relations Officer 812.827.4151 andy.regrut@kimballelectronics.com Kimball Electronics | 21
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