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Safe Harbor
This presentation contains certain forward-looking statements, which reflect
management's expectations regarding future events and operating performance and
speak only as of the date hereof. These forward-looking statements are subject to
the safe harbor protection provided under the securities laws. Methode undertakes
no duty to update any forward-looking statement to conform the statement to actual
results or changes in Methode's expectations on a quarterly basis or otherwise. The
forward-looking statements in this presentation involve a number of risks and
uncertainties. The factors that could cause actual results to differ materially from our
expectations are detailed in Methode's filings with the Securities and Exchange
Commission, such as our annual and quarterly reports. Such factors may include,
without limitation, the following: (1) dependence on a small number of large
customers, including two large automotive customers; (2) dependence on the
automotive, appliance, computer and communications industries; (3) investment in
programs prior to the recognition of revenue; (4) ability to withstand price pressure;
(5) timing, volume, quality and cost of new program launches; (6) dependence on
our supply chain; (7) dependence on the availability and price of raw materials; (8)
customary risks related to conducting global operations; (9) currency fluctuations;
(10) income tax rate fluctuations; (11) fluctuations in our gross margins; (12) the
recognition of goodwill impairment charges; (13) ability to keep pace with rapid
technological changes; (14) location of a significant amount of cash outside of the
U.S.; (15) ability to successfully benefit from acquisitions and divestitures; (16)
ability to avoid design or manufacturing defects; (17) ability to protect our intellectual
property; (18) ability to compete effectively; (19) ability to withstand business
interruptions; (20) a breach of our information technology systems; and (21) costs
and expenses due to regulations regarding conflict minerals.
3
Slide Title
• Bulleted Outline
 Indent 1
 Indent 2
 Indent 3
» Indent 4
4
Investment Appeals
• Portfolio of products and solutions in several growing end
markets
• Opportunities for expansion into additional end markets
• Global engineering, design and manufacturing
• Unique patented technologies – strong product development
heritage
• Seasoned management team with a track record of growing
revenue and earnings
• Strong balance sheet with sufficient liquidity to fund growth
organically and through acquisition
• Targeting 5-year compounded EBITDA growth rate of 9-10%
• Share repurchase plan up to $100 million and quarterly
dividend of $0.09
5
Core Strategy
Design and engineer products that incorporate
Methode’s broad range of field-proven
technologies and utilize our global
manufacturing capabilities to deliver unique
solutions that provide genuine value for our
customers and higher margins for our
shareholders.
6
Portfolio of Strong, Global Businesses
Auto-
motive
71%
Other
1%
Interface
18%
Power
Products
10%
Segment Sales
North
America
57%Europe
22%
Asia
18%
ROW
3%
Manufacturing Location Sales
FY15 Revenue of $881m
7
Field-Proven
Technologies
Competitive Advantages
Vertical
Integration
Global
Manufacturing
Footprint
Seasoned
Launch and
Design Teams
• Provide innovative solutions for our customers and
competitive advantage to Methode
• Over 290 patents
• Provide innovative solutions for our customers and
competitive advantage to Methode
• Over 290 patents
• Provides continuous improvement of manufacturing
systems
• Reduces reliance on suppliers
• Demonstrated improvement in quality
• Provides continuous improvement of manufacturing
systems
• Reduces reliance on suppliers
• Demonstrated improvement in quality
• Regional design and engineering capabilities
• 3 primary manufacturing campuses
• Lean and continuous improvement philosophy
• Identical systems used globally
• Successful launch of large programs for General
Motors, Ford, Whirlpool and others
• Low defective parts per million
• High on-time delivery
• Utilizes Methode’s proven manufacturing system
• Successful launch of large programs for General
Motors, Ford, Whirlpool and others
• Low defective parts per million
• High on-time delivery
• Utilizes Methode’s proven manufacturing system
8
Strong Long-Term Performance
-50%
0%
50%
100%
150%
200%
250%
300%
1-Year
Perfromance
3-Year
Performance
5-Year
Performance
10-Year
Performance
-16%
215%
273%
180%
3%
36%
77% 78%
-1%
35%
73%
62%
Methode Electronics Russell 2000 Index S&P 500 Index
Methode’s Stock Has Outperformed
the Russell 2000 and the S&P 500
in 3, 5 and 10 Year Periods*+
*Source S&P Capital IQ
+As of 9/21/15
9
Strong Financial Results
* In millions
+ See Non-GAAP reconciliation on
Website
$0
$200
$400
$600
$800
$1,000
$428
$465
$520
$773
$881
Sales*+
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$0.49
$0.22
$0.46
$1.62
$2.44
EPS+
Non-GAAP
$0
$20
$40
$60
$80
$100
$120
$140
$160
$35
$27
$41
$99
$147
EBITDA*+
Adjusted
20% CAGR 49% CAGR 43% CAGR
FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15
10
Fiscal 2015
Strong Financial Results
• Sales, income from operations and EPS highest in Company’s
history
• Consolidated gross margin improved 450 basis points over
FY14
• Operating margin increased to 14% from 9.7% in FY14*
• Income from operations grew 63.7% to $123.3m*
• EPS of $2.44 compared to $1.62 in FY14*
* See Website for Non-GAAP
reconciliation
11
Fiscal 2016 Outlook
Fiscal 2016
• Guidance – Expect 2nd best year in company history
 Sales ─ $830-$865m
 Operating income ─ $108-$119m
 EPS ─ $2.07-$2.22
 Operating margin ─ 13%-13.8%
• Sales and income expected to be lower year over year due to
 Ford center console program going end of life
 Price concessions in Automotive
 Reduced appliance sales
 Lower Big Data product sales in Power Products
 Sale of Trace Laboratories
• Strong balance sheet with ~ $265M in net cash and credit
availability+
• FY16 free cash flow estimate of $80M-$90M
+ As of August 1, 2015
12
Automotive Solutions
Integrated Center
Console
54%
Other
1%
Hidden Switches
14%
Ergonomic
Switches
16%
Transmission
9%
Steering Angle
Sensor
6%
FY15 Revenue of $628m
GM Yukon Integrated
Center Console
Transmission Lead Frame
Transmission Sensor
FCA Floor Console
Multi-Media Interface
McLaren ICP
13
Integrated Center Console
Automotive Milestones
• Ford - 2011-2015 MKX, Edge, Explorer
and 2013-2017 Taurus, Flex, MKS, MKT
• General Motors - 2014-2019 Tahoe,
Yukon, Silverado, Sierra, Suburban,
Yukon XL and 2015-2021 Canyon,
Colorado
• Renault – Launching FY16
• General Motors - 2 programs launching
FY17 and 1 launching in FY18
• Fiat - Launching FY18
• Aston Martin - Launching FY17
• North American OEM - next generation
of existing program with this customer
Transmission Solutions
• Lead Frame
 Integrated power and signal
distribution backbone for
transmission controller
 Customers - General Motors, Ford,
Volkswagen
• Clutch Plate Position Sensor
 First deployment of patented
Magneto-elastic technology in
transmission
 Deployed in new generation of fuel
efficient, dual-clutch transmissions
14
Torque Sensor for Active
Role Stabilization
Automotive Milestones
• Schaeffler/BMW selected
Methode’s torque sensor to
measure “roll” in vehicles during
cornering
• Replaces existing hydraulic
systems to give better vehicle
handling, greener
• Precision sensor designed for
safety applications
• Schaeffler plans to introduce to
other customers
• Estimated award life of 10 years
• Initial launch on BMW 7-series
Hidden and Ergonomic
Switches
• Hidden switch global market share
of 18%
• Hidden switch European Union
market share of 35%
• Fully automated production
• Vertically integrated plants
 Molding
 Decorative finishes
 Stamping
• ~40 million switches produced
annually
• Launched the first volumes of the
Integrated Tail gate module
15
Interface Solutions
Consumer Touch
Panels
39%
Industrial
Solutions
23%
Data Center
Infrastructure
Solutions
35%
Other
3%
FY15 Revenue of $162m
Touch Control Panels for
Whirlpool Washer & Dryer
Hetronic Radio
Remote Control
Food Service Equipment
AC6000
Agricultural Tractors
16
Consumer Touch Panels
Interface Milestones
• TouchSensor’s user interfaces found on over 30% of
commercial/industrial solid-state touch interfaces in North America
• Integrate touch, LED’s, displays and decorative fascia into one sub-
assembly
• Discrete key designs as well as high-resolution LCD touchscreens
• Found on the following brands
17
Interface Milestones
Industrial User Interfaces
• Radio Remote Control Solutions
• Custom engineered control solutions for industrial machinery and
equipment – to provide safety and improved efficiency
• Pioneering data capture solutions for next generation of radio remote
control systems – more info for the user
• Integration of HMI wireless and wired controls with sensor, hydraulic &
pneumatic components to expand applications
• Proven expertise with over 300,000 global installations for:
 Tower, crawler, all-terrain cranes
 Concrete pumps, material spreaders
 Material handling
 Drilling rigs
 Locomotives & railway support
 “Explosion proof” applications
18
Data Center Infrastructure Solutions
Interface Milestones
• Supporting data and
telecommunications industries
 Data Center Infrastructure
Management (DCIM) enabled
cabinet (sensors and centralized
data collection)
 Fiber optic and copper cable
assemblies
 Intelligent power distribution,
assurance & management devices
 Largest customers – Hitachi Data
Systems, Rackspace
• Lithium Ion Uninterruptable Power
Supply – AC6000
 Line interactive 6kw Uninterruptible
Power Supply (UPS)
 Utilizes years of research in battery
management systems
 Highest power density per UPS
footprint providing 6kw in 2 rack
units
 Enables peak shaving
 UL certification received
 Have sold over 30 units since
product launch in July 2015
19
Bus Bars
49%
Other
4%
PowerRail
35%
Power Cabling
7%
Thermal Mgmt
5%
Power Products Solutions
FY15 Revenue of $86m
Electric Vehicle Coupler
Connector
Bus Bar
PowerRail
SmartPower Stack™
20
Bus Bars and
Thermal
Management
Power Products Milestones
• Integrated bus bar
assemblies
• Fusion lug termination
systems
• Patented, high-density
power contact and
connector systems
EV Bus Bar
Assemblies
• Nissan Leaf
 North America and
Europe
 Connect lithium-ion
battery cells
 Each vehicle
requires 48 battery
modules
 Three Methode
assemblies utilized
on each battery
module
• Tesla S
PowerRail®
• Patented power-
distribution system
provides flexibility with
multiple quick connect
interconnect points
• Easily customized in
lengths, number of rails,
connect and disconnect
options
• Adds flexibility and
redundancy with easy
hot pluggable add-ons
• Currently shipping to
“Big Data” customer
21
Methode’s Evolution
• SmartCenter Stack
• Transmission Torque
Measurement
• HighPerTouch™
• Digital Printing On Glass
• Lean Touch™
• 10G Transceiver Modules
• Bypass Switch
• Radio Remote Control with
Video Feedback
• Dabir Surfaces
22
SmartCenter Stack
Methode’s Evolution
• One complete system - Integrated
center stack, Video screen,
Capacitive touch screen,
Wired/wireless cell phone
connection, Audio, Tactile
knobs/buttons
• Operator’s cell phone acts as
media server and duplicates phone
functionality through vehicle
touchscreen
• Single source for all HMI functions
• Earliest deployment FY18
Transmission Torque
Measurement
• Patented Magneto-elastic
technology
• Outputs instantaneous and precise
torque measurement
• Allows automakers ability to
measure real-time torque vs.
elaborate algorithms that only
estimate torque
• Currently being prototyped and
tested with several automotive
OEMs
• Earliest deployment FY19
23
Digital Printing on Glass
• Replaces traditional screen printing
of decorative flat glass or plastic on
user interface panels
• Utilizes 6-color, ultra-violet curable
inks dispensed via large-scale,
digital printer
• Superior resolution and graphic
options
• Leans out supply chain and costly
inventory
• Vertically integrated and in
production today
Lean Touch ®
• Digital printing of graphics and
circuits via Methode Nano-particle
conductive ink
• Replaces conventional printed
circuit board
• Reduces inventory, lead-time and
tooling (print on demand)
• Deployment late FY17
Methode’s Evolution
24
HighPerTouch™
• Provides significantly enhanced
touch performance, enabling
systems to sense touch…
 Through thicker substrates, about
8 times what a smartphone senses
through
 Through air gaps, which provide
design freedom
 Through thick gloves, key for many
automotive and industrial
applications
 With water immunity, such as in
automotive door handles
10G Copper Transceiver
Modules
• Transceivers in data
communications networks allow
flexibility when connecting switches
to other networking equipment
• More cost effective than optical
counterparts
• Meets/exceeds industry low power
requirement
• Launching FY17
• Largest customer - Cisco
Methode’s Evolution
25
Bypass Switch
• Patented “fast close switchgear”
delivering safe and reliable circuit
protection for high voltage, high
current power management
 Initial application was off-shore
wind farm to on-shore power grid
 Smaller, lighter and more flexible in
design than current market
alternatives
 10,000+ in service today offering
vital protection to power grid
converter stations
Radio Remote Control
with Video
• Full-color, transmissive 4.3 inch
display and/or 8 inch “touch” displays
integrated with Remote Controls
• Customized remote control GUI and
software to meet customer
application
• Extended transmission distance via
integrated repeater grid network
• Multiple command & control
frequency capability
• Separate video feedback channel
• Supports up to 4 live, simultaneous
wireless video camera feeds
• Video playback and recording option
Methode’s Evolution
26
Dabir Surfaces
• New technology aimed at pressure ulcer prevention
 Prevention, care & treatment is an $11 billion/ year spend in U.S.
 Of that $11 billion, nearly $2 billion is attributed to Hospital Acquired Pressure
Ulcers which are no longer covered by Medicaid & Medicare
• Pressure Ulcers
 Caused by prolonged pressure, skin shear, excess moisture and heat
 Dabir technology addresses all the above in an easy to use, semi-disposable
overlay
• Licensed and owned IP combined with Methode’s
 Manufacturing expertise
 Existing technology portfolio
 TouchSensor user interface
 Encrypted wireless communication
Methode’s Evolution
27
Dabir Surfaces
• Provides
 Alternating Micropressure support and tissue relief
 Adjustable cycle speed and firmness control
 Reduced skin shear during operation
 Optional low-air-loss Microclimate control
 Enhanced infection control as a semi-disposable overlay
• Overlay Features
 Placed between mattress and cover linen
 Multi-patient use with standard cleaning
 200 hour product life for Surgical
 2,160 hour product life for MedSurg Bed
 Wireless electronic intelligence
 X-ray translucent
Methode’s Evolution
28
Dabir Surfaces
Methode’s Evolution
• Application Potential
 Long-duration surgical procedures
 Recovery & long-term care settings (Nursing Homes, Home Care)
 Any patient group which is either immobilized or at-risk for pressure ulcer
formation
• Currently concentrating on long-duration surgical procedures
 Controlled launch at beta hospital
 As of September 2015 – 500+ procedures from 4-20 hours duration
 No adverse tissue effects or quality concerns to date
29
Dabir Surfaces
Methode’s Evolution
• Commercialization
 FDA Device Class II – 510k exempt registration complete
 Direct regional sales network, national medical representatives and partners
• FY15 second-quarter introductory sales
• Continue to develop product and IP
• Clinical Research
 Dialysis – completed outpatient dialysis comfort study with 20% improvement
 Pressure mapping and limited MRI perfusion study performed at Cleveland Clinic
with good results
30
Summary
• Will continue to follow a balanced strategy of investing in our
business, maintaining a strong and flexible financial position
and returning cash to shareholders
 Continue to invest in core businesses to grow, defend and improve our competitive
position
 Continue to invest in engineering and launch management to provide customer
solutions and near-flawless execution
 Maintain strong and flexible balance sheet with ample liquidity to support continued
growth organically and through acquisitions
• Investing approximately 3-4% of net sales in R&D
• Leverage global footprint, vertical integration and continuous
manufacturing systems improvement
• Targeting 5-year compounded EBITDA growth rate of 9-10%
Methode Presentation

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Methode Presentation

  • 1.
  • 2. 2 Safe Harbor This presentation contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the safe harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Methode's expectations on a quarterly basis or otherwise. The forward-looking statements in this presentation involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports. Such factors may include, without limitation, the following: (1) dependence on a small number of large customers, including two large automotive customers; (2) dependence on the automotive, appliance, computer and communications industries; (3) investment in programs prior to the recognition of revenue; (4) ability to withstand price pressure; (5) timing, volume, quality and cost of new program launches; (6) dependence on our supply chain; (7) dependence on the availability and price of raw materials; (8) customary risks related to conducting global operations; (9) currency fluctuations; (10) income tax rate fluctuations; (11) fluctuations in our gross margins; (12) the recognition of goodwill impairment charges; (13) ability to keep pace with rapid technological changes; (14) location of a significant amount of cash outside of the U.S.; (15) ability to successfully benefit from acquisitions and divestitures; (16) ability to avoid design or manufacturing defects; (17) ability to protect our intellectual property; (18) ability to compete effectively; (19) ability to withstand business interruptions; (20) a breach of our information technology systems; and (21) costs and expenses due to regulations regarding conflict minerals.
  • 3. 3 Slide Title • Bulleted Outline  Indent 1  Indent 2  Indent 3 » Indent 4
  • 4. 4 Investment Appeals • Portfolio of products and solutions in several growing end markets • Opportunities for expansion into additional end markets • Global engineering, design and manufacturing • Unique patented technologies – strong product development heritage • Seasoned management team with a track record of growing revenue and earnings • Strong balance sheet with sufficient liquidity to fund growth organically and through acquisition • Targeting 5-year compounded EBITDA growth rate of 9-10% • Share repurchase plan up to $100 million and quarterly dividend of $0.09
  • 5. 5 Core Strategy Design and engineer products that incorporate Methode’s broad range of field-proven technologies and utilize our global manufacturing capabilities to deliver unique solutions that provide genuine value for our customers and higher margins for our shareholders.
  • 6. 6 Portfolio of Strong, Global Businesses Auto- motive 71% Other 1% Interface 18% Power Products 10% Segment Sales North America 57%Europe 22% Asia 18% ROW 3% Manufacturing Location Sales FY15 Revenue of $881m
  • 7. 7 Field-Proven Technologies Competitive Advantages Vertical Integration Global Manufacturing Footprint Seasoned Launch and Design Teams • Provide innovative solutions for our customers and competitive advantage to Methode • Over 290 patents • Provide innovative solutions for our customers and competitive advantage to Methode • Over 290 patents • Provides continuous improvement of manufacturing systems • Reduces reliance on suppliers • Demonstrated improvement in quality • Provides continuous improvement of manufacturing systems • Reduces reliance on suppliers • Demonstrated improvement in quality • Regional design and engineering capabilities • 3 primary manufacturing campuses • Lean and continuous improvement philosophy • Identical systems used globally • Successful launch of large programs for General Motors, Ford, Whirlpool and others • Low defective parts per million • High on-time delivery • Utilizes Methode’s proven manufacturing system • Successful launch of large programs for General Motors, Ford, Whirlpool and others • Low defective parts per million • High on-time delivery • Utilizes Methode’s proven manufacturing system
  • 8. 8 Strong Long-Term Performance -50% 0% 50% 100% 150% 200% 250% 300% 1-Year Perfromance 3-Year Performance 5-Year Performance 10-Year Performance -16% 215% 273% 180% 3% 36% 77% 78% -1% 35% 73% 62% Methode Electronics Russell 2000 Index S&P 500 Index Methode’s Stock Has Outperformed the Russell 2000 and the S&P 500 in 3, 5 and 10 Year Periods*+ *Source S&P Capital IQ +As of 9/21/15
  • 9. 9 Strong Financial Results * In millions + See Non-GAAP reconciliation on Website $0 $200 $400 $600 $800 $1,000 $428 $465 $520 $773 $881 Sales*+ $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $0.49 $0.22 $0.46 $1.62 $2.44 EPS+ Non-GAAP $0 $20 $40 $60 $80 $100 $120 $140 $160 $35 $27 $41 $99 $147 EBITDA*+ Adjusted 20% CAGR 49% CAGR 43% CAGR FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15
  • 10. 10 Fiscal 2015 Strong Financial Results • Sales, income from operations and EPS highest in Company’s history • Consolidated gross margin improved 450 basis points over FY14 • Operating margin increased to 14% from 9.7% in FY14* • Income from operations grew 63.7% to $123.3m* • EPS of $2.44 compared to $1.62 in FY14* * See Website for Non-GAAP reconciliation
  • 11. 11 Fiscal 2016 Outlook Fiscal 2016 • Guidance – Expect 2nd best year in company history  Sales ─ $830-$865m  Operating income ─ $108-$119m  EPS ─ $2.07-$2.22  Operating margin ─ 13%-13.8% • Sales and income expected to be lower year over year due to  Ford center console program going end of life  Price concessions in Automotive  Reduced appliance sales  Lower Big Data product sales in Power Products  Sale of Trace Laboratories • Strong balance sheet with ~ $265M in net cash and credit availability+ • FY16 free cash flow estimate of $80M-$90M + As of August 1, 2015
  • 12. 12 Automotive Solutions Integrated Center Console 54% Other 1% Hidden Switches 14% Ergonomic Switches 16% Transmission 9% Steering Angle Sensor 6% FY15 Revenue of $628m GM Yukon Integrated Center Console Transmission Lead Frame Transmission Sensor FCA Floor Console Multi-Media Interface McLaren ICP
  • 13. 13 Integrated Center Console Automotive Milestones • Ford - 2011-2015 MKX, Edge, Explorer and 2013-2017 Taurus, Flex, MKS, MKT • General Motors - 2014-2019 Tahoe, Yukon, Silverado, Sierra, Suburban, Yukon XL and 2015-2021 Canyon, Colorado • Renault – Launching FY16 • General Motors - 2 programs launching FY17 and 1 launching in FY18 • Fiat - Launching FY18 • Aston Martin - Launching FY17 • North American OEM - next generation of existing program with this customer Transmission Solutions • Lead Frame  Integrated power and signal distribution backbone for transmission controller  Customers - General Motors, Ford, Volkswagen • Clutch Plate Position Sensor  First deployment of patented Magneto-elastic technology in transmission  Deployed in new generation of fuel efficient, dual-clutch transmissions
  • 14. 14 Torque Sensor for Active Role Stabilization Automotive Milestones • Schaeffler/BMW selected Methode’s torque sensor to measure “roll” in vehicles during cornering • Replaces existing hydraulic systems to give better vehicle handling, greener • Precision sensor designed for safety applications • Schaeffler plans to introduce to other customers • Estimated award life of 10 years • Initial launch on BMW 7-series Hidden and Ergonomic Switches • Hidden switch global market share of 18% • Hidden switch European Union market share of 35% • Fully automated production • Vertically integrated plants  Molding  Decorative finishes  Stamping • ~40 million switches produced annually • Launched the first volumes of the Integrated Tail gate module
  • 15. 15 Interface Solutions Consumer Touch Panels 39% Industrial Solutions 23% Data Center Infrastructure Solutions 35% Other 3% FY15 Revenue of $162m Touch Control Panels for Whirlpool Washer & Dryer Hetronic Radio Remote Control Food Service Equipment AC6000 Agricultural Tractors
  • 16. 16 Consumer Touch Panels Interface Milestones • TouchSensor’s user interfaces found on over 30% of commercial/industrial solid-state touch interfaces in North America • Integrate touch, LED’s, displays and decorative fascia into one sub- assembly • Discrete key designs as well as high-resolution LCD touchscreens • Found on the following brands
  • 17. 17 Interface Milestones Industrial User Interfaces • Radio Remote Control Solutions • Custom engineered control solutions for industrial machinery and equipment – to provide safety and improved efficiency • Pioneering data capture solutions for next generation of radio remote control systems – more info for the user • Integration of HMI wireless and wired controls with sensor, hydraulic & pneumatic components to expand applications • Proven expertise with over 300,000 global installations for:  Tower, crawler, all-terrain cranes  Concrete pumps, material spreaders  Material handling  Drilling rigs  Locomotives & railway support  “Explosion proof” applications
  • 18. 18 Data Center Infrastructure Solutions Interface Milestones • Supporting data and telecommunications industries  Data Center Infrastructure Management (DCIM) enabled cabinet (sensors and centralized data collection)  Fiber optic and copper cable assemblies  Intelligent power distribution, assurance & management devices  Largest customers – Hitachi Data Systems, Rackspace • Lithium Ion Uninterruptable Power Supply – AC6000  Line interactive 6kw Uninterruptible Power Supply (UPS)  Utilizes years of research in battery management systems  Highest power density per UPS footprint providing 6kw in 2 rack units  Enables peak shaving  UL certification received  Have sold over 30 units since product launch in July 2015
  • 19. 19 Bus Bars 49% Other 4% PowerRail 35% Power Cabling 7% Thermal Mgmt 5% Power Products Solutions FY15 Revenue of $86m Electric Vehicle Coupler Connector Bus Bar PowerRail SmartPower Stack™
  • 20. 20 Bus Bars and Thermal Management Power Products Milestones • Integrated bus bar assemblies • Fusion lug termination systems • Patented, high-density power contact and connector systems EV Bus Bar Assemblies • Nissan Leaf  North America and Europe  Connect lithium-ion battery cells  Each vehicle requires 48 battery modules  Three Methode assemblies utilized on each battery module • Tesla S PowerRail® • Patented power- distribution system provides flexibility with multiple quick connect interconnect points • Easily customized in lengths, number of rails, connect and disconnect options • Adds flexibility and redundancy with easy hot pluggable add-ons • Currently shipping to “Big Data” customer
  • 21. 21 Methode’s Evolution • SmartCenter Stack • Transmission Torque Measurement • HighPerTouch™ • Digital Printing On Glass • Lean Touch™ • 10G Transceiver Modules • Bypass Switch • Radio Remote Control with Video Feedback • Dabir Surfaces
  • 22. 22 SmartCenter Stack Methode’s Evolution • One complete system - Integrated center stack, Video screen, Capacitive touch screen, Wired/wireless cell phone connection, Audio, Tactile knobs/buttons • Operator’s cell phone acts as media server and duplicates phone functionality through vehicle touchscreen • Single source for all HMI functions • Earliest deployment FY18 Transmission Torque Measurement • Patented Magneto-elastic technology • Outputs instantaneous and precise torque measurement • Allows automakers ability to measure real-time torque vs. elaborate algorithms that only estimate torque • Currently being prototyped and tested with several automotive OEMs • Earliest deployment FY19
  • 23. 23 Digital Printing on Glass • Replaces traditional screen printing of decorative flat glass or plastic on user interface panels • Utilizes 6-color, ultra-violet curable inks dispensed via large-scale, digital printer • Superior resolution and graphic options • Leans out supply chain and costly inventory • Vertically integrated and in production today Lean Touch ® • Digital printing of graphics and circuits via Methode Nano-particle conductive ink • Replaces conventional printed circuit board • Reduces inventory, lead-time and tooling (print on demand) • Deployment late FY17 Methode’s Evolution
  • 24. 24 HighPerTouch™ • Provides significantly enhanced touch performance, enabling systems to sense touch…  Through thicker substrates, about 8 times what a smartphone senses through  Through air gaps, which provide design freedom  Through thick gloves, key for many automotive and industrial applications  With water immunity, such as in automotive door handles 10G Copper Transceiver Modules • Transceivers in data communications networks allow flexibility when connecting switches to other networking equipment • More cost effective than optical counterparts • Meets/exceeds industry low power requirement • Launching FY17 • Largest customer - Cisco Methode’s Evolution
  • 25. 25 Bypass Switch • Patented “fast close switchgear” delivering safe and reliable circuit protection for high voltage, high current power management  Initial application was off-shore wind farm to on-shore power grid  Smaller, lighter and more flexible in design than current market alternatives  10,000+ in service today offering vital protection to power grid converter stations Radio Remote Control with Video • Full-color, transmissive 4.3 inch display and/or 8 inch “touch” displays integrated with Remote Controls • Customized remote control GUI and software to meet customer application • Extended transmission distance via integrated repeater grid network • Multiple command & control frequency capability • Separate video feedback channel • Supports up to 4 live, simultaneous wireless video camera feeds • Video playback and recording option Methode’s Evolution
  • 26. 26 Dabir Surfaces • New technology aimed at pressure ulcer prevention  Prevention, care & treatment is an $11 billion/ year spend in U.S.  Of that $11 billion, nearly $2 billion is attributed to Hospital Acquired Pressure Ulcers which are no longer covered by Medicaid & Medicare • Pressure Ulcers  Caused by prolonged pressure, skin shear, excess moisture and heat  Dabir technology addresses all the above in an easy to use, semi-disposable overlay • Licensed and owned IP combined with Methode’s  Manufacturing expertise  Existing technology portfolio  TouchSensor user interface  Encrypted wireless communication Methode’s Evolution
  • 27. 27 Dabir Surfaces • Provides  Alternating Micropressure support and tissue relief  Adjustable cycle speed and firmness control  Reduced skin shear during operation  Optional low-air-loss Microclimate control  Enhanced infection control as a semi-disposable overlay • Overlay Features  Placed between mattress and cover linen  Multi-patient use with standard cleaning  200 hour product life for Surgical  2,160 hour product life for MedSurg Bed  Wireless electronic intelligence  X-ray translucent Methode’s Evolution
  • 28. 28 Dabir Surfaces Methode’s Evolution • Application Potential  Long-duration surgical procedures  Recovery & long-term care settings (Nursing Homes, Home Care)  Any patient group which is either immobilized or at-risk for pressure ulcer formation • Currently concentrating on long-duration surgical procedures  Controlled launch at beta hospital  As of September 2015 – 500+ procedures from 4-20 hours duration  No adverse tissue effects or quality concerns to date
  • 29. 29 Dabir Surfaces Methode’s Evolution • Commercialization  FDA Device Class II – 510k exempt registration complete  Direct regional sales network, national medical representatives and partners • FY15 second-quarter introductory sales • Continue to develop product and IP • Clinical Research  Dialysis – completed outpatient dialysis comfort study with 20% improvement  Pressure mapping and limited MRI perfusion study performed at Cleveland Clinic with good results
  • 30. 30 Summary • Will continue to follow a balanced strategy of investing in our business, maintaining a strong and flexible financial position and returning cash to shareholders  Continue to invest in core businesses to grow, defend and improve our competitive position  Continue to invest in engineering and launch management to provide customer solutions and near-flawless execution  Maintain strong and flexible balance sheet with ample liquidity to support continued growth organically and through acquisitions • Investing approximately 3-4% of net sales in R&D • Leverage global footprint, vertical integration and continuous manufacturing systems improvement • Targeting 5-year compounded EBITDA growth rate of 9-10%