Kimball Electronics, Inc. · NASDAQ:KE
Kimball Electronics — Investor Presentation (2023)
25 slides from Kimball Electronics's investor presentation, 2023
Slide 1: Kimball Electronics Overview Q4 Fiscal Year 2023
Kimball Electronics Overview Q4 Fiscal Year 2023 Kimball Electronics | 1
Slide 2: Safe Harbor Statements
Kimball Electronics (Nasdaq: KE) Safe Harbor Statements Certain statements contained within this presentation may be considered forward-looking 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: At a Glance
At a Glance Kimball Electronics Kimball Electronics | 3
Slide 4: Mission, Purpose, and Vision & Strategy
Mission, Purpose, and Vision & Strategy Our guide to lasting relationships and global success Kimball Electronics | 4
Slide 5: Company Culture
Company Culture Core values are based on our Guiding Principles Customers People Citizenship Profit Our customer Our people The environment Profits are the ultimate is our business are the company is our home measure of how efficiently and effectively we serve our customers Kimball Electronics | 5
Slide 6: Leadership Team
Leadership Team Extensive industry knowledge and diverse experience Richard D. (Ric) Phillips Jana T. Croom Douglas A. Hass Steven T. Korn Chief Executive Officer Chief Financial Officer Chief Legal and Compliance Officer, President, Secretary Global Electronics Manufacturing Services (EMS) Operatio
Slide 7: Competitive Advantage
Competitive Advantage Global footprint Kimball Electronics | 7
Slide 8: Global footprint
Kimball Electronics | 8 Kimball Electronics | 8
Slide 9: Culture of excellence
Foundational Principle Culture of excellence Our customer is our business • We know we must provide innovative products and services that excite our customers and exceed their expectations of quality, features, and enduring value Industry 4.0 Strategy: • Leverage a digital framework • Meet customer
Slide 10: End-to-End Partnership
End-to-End Partnership Single-source for the most exacting, stringent, mission-critical, high reliability, high quality products Design & Development Prototyping NPI Manufacturing Testing Aftermarket Support • Integrated design • Dedicated team & • Robust process for • Partnership - work • Focus tes
Slide 11: Kimball Electronics ranked 20th in EMS providers
Market Manufacturing Insider Kimball Electronics ranked 20th in EMS providers Large enough to service your needs, small enough to be customer focused • Calendar year 2022 rankings based on annual revenue • 20th overall EMS company • 7th in Medical • 8th in Automotive • 19th in Industrial Kimball Ele
Slide 12: Award-winning service and long-term relationships
How We Deliver Award-winning service and long-term relationships Circuits Assembly Service Excellence Awards • Nine consecutive years winning awards for excellence in multiple categories • Overall Satisfaction • Quality • Responsiveness • Technology • Flexibility • Value for Price • Dependability /
Slide 13: Strong top-line results in fiscal 2022
Fiscal 2022 Strong top-line results in fiscal 2022 Note: Starting in fiscal 2023, revenue in the Industrial and Public Safety vertical markets are combined for reporting purposes Kimball Electronics | 13
Slide 14: Fiscal 2022 revenue by vertical end-market
Diversified Portfolio Fiscal 2022 revenue by vertical end-market Note: Starting in fiscal 2023, revenue in the Industrial and Public Safety vertical markets are combined for reporting purposes Kimball Electronics | 14
Slide 15: Industry megatrends in Automotive
Industry megatrends in Automotive represent a meaningful tailwind… The addition of electronic content could generate growth 4x the OEMs’ vehicle production rate • 70% of our work in Automotive is in electronic power steering • Steering architecture is essentially the same in vehicles powered by a mo
Slide 16: Growth in Medical will also benefit from industry megatrends
Growth in Medical will also benefit from industry megatrends… Demographics and advances in technology producing a favorable set-up: • Aging population • Connected care • Affordability and • Decreasing device size increasing access to care • Connected drug delivery We manufacture products that suppor
Slide 17: Products in Industrial promote energy efficiency and carbon neutrality
Products in Industrial promote energy, efficiency, safety, carbon neutrality, and the better consumption of natural resources • Well-positioned within value chain • Most major brands of residential and commercial heating & cooling systems • Smart Metering (particularly in Europe) • Factory automatio
Slide 18: Capital Allocation
Capital Allocation Investing in growth and returning excess cash to Share Owners Capital Allocation ($ in millions) Reinvest in the business – Significant CapEx spending to fuel multi-year organic $100 growth and expansion in ROIC $90 $80 Acquisitions – $50+ million of acquisitions $70 over past sev
Slide 19: Facility Expansions Align with Customer Growth
Increasing Our Footprint Facility Expansions Align with Customer Growth Manufacturing capacity to support higher levels of We’re underway with 370,000 production in all three market verticals to reach $2 billion 38% square feet of new facility expansions, representing an milestone increase of 38% ca
Slide 20: Profitability
THESE PROGRAMS PROGRESS at a slow and steady pace, allowing for long-term Program life cycle sustainable growth gained through sourcing efficiencies and process improvements. Program Lifecycle: As new programs mature, volumes ramp, Initial investments and cost efficiencies are gained volume ramp and
Slide 21: Poised for Growth: Our Culture
Poised for Growth: Our Culture We demonstrate our company purpose by Creating Quality for Life for our people through a respectful and rewarding company culture that encourages meaningful work, as well as for our communities through our positive societal impacts. Kimball Electronics | 21
Slide 22: People are the Company
Poised for Growth: Our Culture People are the Company Diversity, Equity, Inclusion & Belonging Guiding Principles • As a human-centered company focused • Each year, employees around the world on Diversity, Equity, Inclusion & Belonging rate us on how well we are living up to (DEI&B), we promote mult
Slide 23: ESG Report
ESG Report • Published ESG report for calendar 2022 • Poised to Make an Impact • Available on our corporate website • Company remains committed to Creating Quality for Life • Customers • Employees • Communities where we operate • Share Owners • Morningstar Sustainalytics rated KE #1 among electronic
Slide 24: Poised for Growth
Summary Poised for Growth Unique manufacturing capabilities and award-winning Making customer service investments in our • Support vertical end-markets benefiting from industry future megatrends that will drive long-term growth • Emerging from the challenging operating environment with strength Leve
Slide 25: For more information, please contact
For more information, please contact: Andy Regrut Vice President, Investor Relations 812 - 827- 4151 [email protected] Kimball Electronics | 25