Kimball Electronics : Overview

Company Overview

March 2024

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," "predict," "will," "future," "optimistic," "confident," and "believe." Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as the war in Ukraine, global health emergencies, availability or cost of raw materials and components, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2023.

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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 and program life cycles in the Automotive, Medical, and Industrial end markets

Uniquely positioned with a focus on non-commodity products that involve high levels of complexity, quality, reliability, and durability

Long-term customer relationships driving sustainable growth and

enable multi-year planning and operating efficiency

Track record of revenue and earnings growth with recent capacity expansions supporting current demand momentum and future global growth opportunities

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Providing end-to-end solutions and support

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A rich history of growth and global expansion

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Our global footprint with an "in-region" focus

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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.

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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, the Company changed its presentation of revenue for miscellaneous sales previously included in "other". The sales are now

included in the respective customer end markets.

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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
• Industry requirements align with core competencies
• Value to customers increases as features added

• "Sticky" business as programs are frequently single-source

• Programs typically 8-10years in length

BRAKING

STEERING

SENSORING &

SAFETY CONTROL

REPRESENTATIVE CUSTOMERS TIER 1 SUPPLIERS

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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

3

4 AEDs

SURGICAL

SYSTEMS

REPRESENTATIVE CUSTOMERS

Products supporting prevention, early diagnostics, clinical & hospital treatment, home & community care

•	Respiratory care	•	Drug delivery
•	Surgical systems	•	Imaging systems
•	In vitro diagnostics	• Focus on Class II and
•	Patient monitoring		Class III devices
	Higher-level assembly
	equipment	•

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