Investor Day 2025 M A Y 1 3 , 20 25 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 performance, and continued business operations. The words "believe," "expect," "anticipate," "project," "estimate," "budget," "continue," "could," "intend," "may," "plan," "potential," ...

Knowles (KN) 2025 Investor Day Summary Company Overview - Knowles has transformed into a premier industrial technology company focusing on high-performance electronic components, particularly in the medtech, defense, and industrial markets [9][15][12] - The company operates two main segments: Precision Devices (54% of revenue) and MedTech and Specialty Audio (46% of revenue) [16] Financial Performance - Knowles achieved a revenue CAGR of 8% and adjusted EBITDA CAGR of 11% from 2017 to 2024 [10] - Future expectations include a revenue CAGR of 8% to 10% and adjusted EBITDA margins improving by 300 to 500 basis points, leading to an adjusted EBITDA CAGR of 10% to 14% [11] - The company anticipates organic growth to be higher than historic rates starting in 2025 [12] Market Segments and Growth Drivers MedTech - The medtech market is expected to grow at a CAGR of 4% to 6% [24] - Knowles provides capacitors for medical imaging and life-saving therapies, with a focus on implantable devices [25][21] - The aging population and increasing healthcare expenditures are driving demand [21] Defense - Over 20% of Knowles' revenue comes from defense applications, with a projected market growth of 3% to 5% CAGR [22][26] - Products include RF filters and capacitors for military applications, ensuring reliable communications and energy sources for harsh environments [22] Industrial - The industrial market is expected to grow at a CAGR of 4% to 6% [27] - Knowles' capacitors support automation solutions and energy conversion needs in manufacturing [27] Electrification and Energy - The electrification market is projected to grow at 8% to 10% [27] - Knowles is expanding its film capacitors into energy sectors, securing significant orders [28] Competitive Advantages - Knowles emphasizes deep engineering expertise, customization capabilities, and a strong supply chain [17][20] - The company has a history of strategic acquisitions to enhance its product offerings and market reach [14][13] Product Innovations - Knowles is known for high-performance ceramic capacitors and RF microwave solutions, which are critical in demanding applications [35][41] - The company is expanding its product line to include ceramic inductors, enhancing its power management capabilities [50][51] Hearing Health Market - The hearing aid market represents approximately $6.5 billion, with Knowles being a leading provider of transducers [78] - The market is expected to grow due to favorable demographics and increased access to hearing healthcare [82][84] - Knowles has a strong presence in the market, with established relationships with major manufacturers [82] Conclusion - Knowles is well-positioned for future growth through its focus on high-performance products, strategic market segments, and innovative solutions [15][53] - The company aims to leverage its strong balance sheet for organic growth and strategic acquisitions while maintaining robust cash flow [11][15]

Summary of Dover's Conference Call Company Overview - **Company**: Dover Corporation - **Event**: 2025 Conference Call - **Date**: May 13, 2025 Key Points Acquisition of Secora - Dover announced the acquisition of Secora, a global leader in precision measurement solutions based in Germany, with an enterprise value of approximately EUR 550 million [2][3] - Expected revenues from Secora are projected to exceed EUR 100 million this year, with a margin profile consistent with Dover's Pumps and Process Solutions segment [3][4] - The acquisition is seen as complementary to Dover's Polymer Processing platform, enhancing technology and recurring revenue opportunities [4][5] Financial Profile and Growth - Dover has invested over $1 billion in its polymer processing platform over the past decade, including the acquisition of Secora [5] - Secora's customer base includes blue-chip companies, providing opportunities for cross-selling, particularly in the wire and cable market, which benefits from global electrification investments [6][7] Capital Allocation and M&A Strategy - Dover has $1.8 billion in cash, with the Secora acquisition utilizing only a third of that amount, indicating potential for further M&A activity [11][12] - The company is engaged in discussions for various small tuck-in acquisitions, although no imminent deals are expected [12][13] Supply Chain and Production - Dover is assessing the potential shift of production and supply chains to the U.S. due to tariff discussions, but current exposure to China is limited (5% of revenue and 6% of cost) [19][21] - The company maintains a flexible supply chain strategy, allowing for adaptability in response to market conditions [22][32] Biopharma and Medical Segment - The biopharma segment generated mid-200 million in revenue in 2024, with expectations for double-digit growth moving forward [38][39] - The growth is attributed to a recovery in demand rather than merely a comp issue, indicating a fundamental demand increase [41][42] Clean Energy and CO2 Systems - Dover's clean energy segment, particularly in LNG, is expected to grow significantly, driven by favorable market conditions and technology investments [60][61] - The CO2 systems business is also experiencing growth, with global revenues projected in the mid-200 million range for 2024 [50][54] Automation Investments - Dover is focusing on automation across all segments, with significant capital allocated to enhance productivity and efficiency [34][36] - The company has seen substantial benefits from past automation investments, particularly in the capital goods sector [36] Thermal Connectors and Data Centers - The thermal connectors segment for liquid cooling in data centers is projected to exceed $30 million in 2024, with strong growth anticipated due to increased demand for high-performance computing [75][76] - The shift from air to liquid cooling is accelerating demand, driven by higher energy requirements from new chip technologies [79][80] European Heat Pumps - There is a positive outlook for the European heat pump market, with signs of demand recovery after a period of destocking [89][90] - The company is optimistic about growth opportunities in various markets, including HVAC and district energy systems [90] Additional Insights - Dover's management is closely monitoring macroeconomic conditions and their impact on demand, particularly in the context of tariffs and supply chain dynamics [32][33] - The company remains committed to its capital expenditure plans and is not altering its guidance despite market uncertainties [31][32] This summary encapsulates the key discussions and insights from Dover's conference call, highlighting the company's strategic initiatives, financial outlook, and market positioning across various segments.

Financial Performance - Revenues for Q1 2025 were $132.2 million, a decrease of 0.8% from $133.3 million in Q1 2024[98] - Gross profit for Q1 2025 was $53.3 million, an increase of 0.2% from $53.2 million in Q1 2024, with a gross profit margin of 40.3%[102] - Non-GAAP gross profit for Q1 2025 was $55.0 million, a decrease of 5.0% from $57.9 million in Q1 2024, with a non-GAAP gross profit margin of 41.6%[103] - Loss from continuing operations improved to $0.4 million in Q1 2025, compared to a loss of $1.0 million in Q1 2024[110] - Adjusted earnings before interest and income taxes (Adjusted EBIT) decreased to $21.7 million in Q1 2025 from $23.3 million in Q1 2024[112] - Diluted loss per share from continuing operations was nil in Q1 2025, an improvement from a loss of $0.01 in Q1 2024[114] - The company reported a non-GAAP net earnings of $16.2 million for Q1 2025, compared to $17.0 million in Q1 2024[116] Expenses - Research and development expenses increased by 3.2% to $9.7 million in Q1 2025, representing 7.3% of revenues[104] - Selling and administrative expenses decreased by 0.3% to $37.2 million in Q1 2025, representing 28.1% of revenues[105] Segment Performance - For Q1 2025, Precision Devices (PD) revenues were $72.5 million, a decrease of $1.8 million or 2.4% from $74.3 million in Q1 2024[121] - PD EBIT for Q1 2025 was $3.2 million, an increase of $5.3 million from a loss of $2.1 million in Q1 2024, resulting in an EBIT margin of 4.4%[122] - Adjusted EBIT for PD was $10.7 million in Q1 2025, up from $9.8 million in Q1 2024, with an adjusted EBIT margin of 14.8%[123] - MedTech & Specialty Audio (MSA) revenues increased to $59.7 million in Q1 2025, up $0.7 million or 1.2% from $59.0 million in Q1 2024[125] - MSA EBIT decreased to $19.3 million in Q1 2025, down $3.5 million or 15.4% from $22.8 million in Q1 2024, with an EBIT margin of 32.3%[126] - Adjusted EBIT for MSA was $21.3 million in Q1 2025, compared to $23.8 million in Q1 2024, resulting in an adjusted EBIT margin of 35.7%[127] Cash Flow and Capital Management - Cash and cash equivalents totaled $101.9 million as of March 31, 2025, down from $130.1 million at December 31, 2024[129] - In Q1 2025, net cash provided by operating activities was $1.3 million, a decrease from $17.3 million in Q1 2024[132] - Cash used in investing activities in Q1 2025 was $(3.5) million, compared to $3.8 million in Q1 2024[132] - Cash used in financing activities in Q1 2025 totaled $(26.2) million, significantly higher than $13.6 million in Q1 2024[132] - Adjusted free cash flow for Q1 2025 was $18.3 million, up from $13.3 million in Q1 2024, representing an increase of 37.6%[138] - Adjusted free cash flow as a percentage of revenues was 13.8% in Q1 2025, compared to 10.0% in Q1 2024[138] - The decrease in cash provided by operating activities in 2025 was primarily due to $21.0 million in payments to settle supplier obligations and separation costs[133] - Customer prepayments of $19.8 million partially offset the unfavorable changes in working capital in 2025[138] - Cash used in financing activities included $15.0 million in payments on the revolving credit facility and $5.0 million in common stock repurchases[136] Corporate Actions - The divestiture of the Consumer MEMS Microphones business for approximately $150.0 million supports the company's transformation into an industrial technology company[91] - The company completed the sale of the CMM segment to Syntiant for approximately $141.9 million on December 27, 2024[130] - The company has $189.0 million remaining for share repurchases under its authorized program as of March 31, 2025[131] Taxation - The effective tax rate from continuing operations for Q1 2025 was 150.0%, compared to 200.0% in Q1 2024[108] Capital Expenditures - Capital expenditures in 2025 are expected to be in the range of 4% to 6% of revenues[135]

Core Insights - Syntiant Corp. CEO Kurt Busch has been awarded the 2025 Silver Stevie® Award for "Technology Executive of the Year" in the 23rd Annual American Business Awards® [1][2][3] - The award recognizes Busch's leadership in driving innovation and growth, particularly through the $150 million acquisition of Knowles Corporation's Consumer MEMS Microphones business [3] Company Overview - Syntiant, founded in 2017 and headquartered in Irvine, California, specializes in low-power edge AI solutions, delivering efficient processors, sensors, and software [5] - The company has deployed over 100 million purpose-built silicon and machine learning models, along with billions of MEMS microphones and sensors, powering various edge AI applications [5] Industry Context - The American Business Awards received over 3,600 nominations this year, showcasing resilience and innovation across organizations of all sizes and industries [2][4] - The Stevie Awards program recognizes outstanding performances in the workplace globally, with more than 12,000 entries annually from over 70 nations [4]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $132 million, which is at the high end of the guided range, and EPS of $0.18, also at the midpoint of guidance [15][26] - Gross margins for Q1 were 48.7%, down 450 basis points year-over-year, primarily due to a supply agreement impacting margins and unfavorable customer mix [27] - Cash from operations exceeded the high end of guidance, driven by higher than expected customer prepayments, with $1 million generated in Q1 [30][32] Business Line Data and Key Metrics Changes - Medtech and specialty audio revenue was $60 million in Q1, slightly up year-over-year but seasonally down from Q4 [16][26] - Precision Device segment revenue was $73 million, flat compared to Q4, with expectations for growth as production challenges are addressed [19][20] - The company anticipates year-over-year revenue growth accelerating in Q2, supported by a strong backlog in medtech and specialty audio [18][24] Market Data and Key Metrics Changes - The company estimates that less than 5% of revenue is subject to current tariffs, with less than 3% of cost of goods sold impacted [9][10] - Inventory levels at distributors are normalizing, leading to increased order activity, particularly in the industrial market [48][75] - The medtech market is expected to remain resilient, with historical data showing modest impacts during economic downturns [12][17] Company Strategy and Development Direction - The company is focused on maintaining growth in earnings and revenue despite tariff challenges, leveraging its proximity manufacturing strategy [7][8] - There is a strong emphasis on innovation and partnerships in the medtech sector, with expectations for continued growth in 2025 [18][24] - The company is exploring acquisition opportunities and plans to maintain a manageable debt level while generating robust cash flow [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current tariff environment with minimal impact on business [50] - The outlook for Q2 is positive, with expectations for revenue between $135 million and $145 million and EPS projected between $0.21 and $0.25 [33][34] - Management noted strong design wins and increasing backlog, indicating a solid foundation for growth in 2025 [24][78] Other Important Information - The company repurchased $5 million in shares and reduced debt by $15 million during Q1 [22][31] - The upcoming Investor Day on May 13 will provide further insights into future growth plans and competitive advantages [24][85] Q&A Session Summary Question: How is the company addressing customer exposure in uncertain times? - Management indicated that there has been no change in demand, with expectations for Q2 being higher than previously anticipated [42][44] Question: Any updates on the $75 million capacitor order for the energy market? - The company received a substantial prepayment for this order, indicating strong customer commitment and no expected delivery impacts [51][52] Question: What is the expected trajectory for gross margins in Q2 and Q4? - Management expects significant sequential improvement in gross margins, driven by increased capacity utilization and better customer mix [60][64] Question: Is there potential for gaining market share from competitors? - Management noted an increase in inquiries from customers looking for reliable supply sources, particularly in the industrial space [66][69] Question: Can you comment on bookings and receivables? - Bookings were strong, with a book-to-bill ratio above 1.15, and receivables were up due to timing of customer collections, not indicating any collection issues [73][79]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $132 million, at the high end of the guided range, with EPS of $0.18, also at the midpoint of guidance [11][19] - Gross margins for the MedTech and Specialty Audio segment were 48.7%, down 450 basis points year-over-year, primarily due to a supply agreement impacting margins [19] - Precision Devices segment revenues were $73 million, flat compared to Q4, with gross margins at 35.7%, unchanged from the previous year [13][20] Business Line Data and Key Metrics Changes - MedTech and Specialty Audio revenue was $60 million, slightly up year-over-year but seasonally down from Q4 [11][19] - Precision Devices segment saw a flat revenue performance, with production challenges in the specialty film line being addressed [13][20] - The company expects year-over-year revenue growth to accelerate in Q2 2025, driven by strong demand in MedTech and Specialty Audio [12][17] Market Data and Key Metrics Changes - The company estimates that less than 5% of revenue is subject to current tariffs, with less than 3% of cost of goods sold impacted [7][8] - Inventory levels at distributors have normalized to 3-3.5 months, indicating increased order activity [34][52] - The company is seeing strong bookings trends across most end markets, particularly in Precision Devices [15][52] Company Strategy and Development Direction - The company is focused on growth in 2025, with strong design wins and increasing backlog across its product portfolio [17] - There is an emphasis on exploring acquisition opportunities while maintaining manageable debt levels [16][22] - The upcoming Investor Day will detail future growth plans and competitive advantages [17][60] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the tariff environment but believes the company is well-positioned for growth despite potential impacts [5][10] - The outlook for the MedTech and defense sectors remains strong, with essential devices expected to maintain demand [32][33] - Management anticipates a stronger second half of 2025, driven by improved capacity utilization and demand recovery [41][42] Other Important Information - The company repurchased $5 million in shares and reduced debt by $15 million in Q1 2025 [16][22] - Capital spending is projected to be $7 million in Q2, with full-year capital spending expected to be 5% of revenues [24] Q&A Session Summary Question: Overall end market customer exposure and outlook - Management indicated no change in demand and higher expectations for Q2, particularly in essential devices like pacemakers and hearing aids [31][32] Question: Updates on the $75 million capacitor order - A substantial prepayment was received, indicating strong customer commitment with no expected delivery impacts [37] Question: Gross margin trajectory for Q2 and Q4 - Management expects significant sequential improvement in gross margins, projecting an exit range of 45% to 47% by year-end [40][44] Question: Potential for gaining market share from competitors - Management noted increased inquiries from customers considering switching suppliers due to tariff impacts, particularly in the industrial space [46][47] Question: Commentary on bookings and receivables - Bookings were strong, with inventory levels at distributors decreasing, indicating rising demand [52][56]

Financial Performance - Q1 2025 revenues from continuing operations were $132.2 million, at the high end of the guided range[1] - Q2 2025 revenues are expected to be between $135 million and $145 million, representing a 4% year-over-year growth[7] - Non-GAAP diluted earnings per share for Q1 2025 were $0.18, consistent with Q1 2024[5] - Q2 2025 diluted earnings per share from continuing operations are expected to be between $0.11 and $0.15, with non-GAAP adjustments bringing it to $0.21 to $0.25[7] - Net loss from continuing operations for Q1 2025 was $0.4 million, compared to a profit of $10.4 million in Q4 2024[21] - Non-GAAP net earnings for Q1 2025 were $16.2 million, down from $24.3 million in Q4 2024[21] - For the three months ended March 31, 2025, the company reported a net loss of $2.0 million compared to net earnings of $2.5 million in the same period of 2024[26] Cash Flow and Liquidity - Net cash provided by operating activities exceeded the high end of the guided range, totaling $1.3 million[5] - Net cash provided by operating activities decreased to $1.3 million from $17.3 million year-over-year[26] - Adjusted free cash flow for the quarter was $18.3 million, representing 13.8% of revenues, compared to 10.0% in the same quarter of 2024[27] - The company experienced a significant decrease in cash and cash equivalents, ending the period with $101.9 million, down from $122.1 million in the previous year[26] - Non-GAAP net cash attributable to continuing operations was $22.3 million, up from $16.2 million in the same quarter of 2024[27] Expenses and Profitability - Gross profit for Q1 2025 was $53.3 million, representing 40.3% of revenues[5] - Gross profit for Q1 2025 was $53.3 million, representing a decrease of 12.5% from $60.9 million in Q4 2024[20] - Non-GAAP gross profit for Q1 2025 was $55.0 million, down from $62.9 million in Q4 2024, with a gross profit margin of 41.6%[20] - Research and development expenses for Q1 2025 totaled $9.7 million, slightly lower than $10.3 million in Q4 2024[20] - Selling and administrative expenses increased to $37.2 million in Q1 2025 from $35.2 million in Q4 2024[20] - Adjusted EBITDA for Q1 2025 was $26.7 million, representing 20.2% of revenues, compared to 24.4% in Q4 2024[20] Balance Sheet - Total current assets decreased to $337.9 million in Q1 2025 from $361.4 million in Q4 2024[24] - Total liabilities decreased to $341.0 million in Q1 2025 from $367.6 million in Q4 2024[24] - Total stockholders' equity remained relatively stable at $755.8 million in Q1 2025 compared to $756.0 million in Q4 2024[24] - The company reported a decrease in accounts payable by $19.3 million compared to an increase of $17.2 million in the same period last year[26] Strategic Initiatives - The company repurchased $5 million of shares and reduced debt by $15 million in Q1 2025[4] - The Precision Devices segment is experiencing increased order activity and backlog across most end markets[4] - The company anticipates another year of strong cash generation in 2025[4] - The company plans to provide further details on its 2025 strategy at the upcoming Investor Day on May 13[4] Other Financial Activities - The company incurred a loss on the sale of business amounting to $1.6 million during the quarter[26] - Payments under the revolving credit facility totaled $15.0 million, a decrease from $20.0 million in the same period last year[26] - The effect of exchange rate changes on cash and cash equivalents was a positive $0.2 million for the quarter[26]

Summary of Key Points Core Viewpoint - Knowles Corporation (NYSE: KN) has experienced a significant decline in stock price, down nearly 20% year-to-date, currently trading in the low $16/share range [1]. Company Performance - The stock was sold at around $20, resulting in a decent profit, but the current valuation reflects a notable decrease in performance [1]. Market Context - The decline in Knowles' stock price indicates potential challenges the company may be facing in the market, which could be relevant for investors considering future positions [1].

Core Insights - Syntiant Corp. is participating in Bernstein's 3rd Annual Technology, Media and Telecommunications Forum to discuss its growth strategy and recent acquisition [1][2] - The company acquired Knowles Corporation's Consumer MEMS Microphones business for $150 million, enhancing its capabilities in audio and speech applications [2][3] - Syntiant has raised a total of $270 million and shipped over 100 million purpose-built processors and machine learning models since its inception [3] Company Overview - Founded in 2017 and headquartered in Irvine, California, Syntiant specializes in low-power edge AI solutions, delivering efficient processors, sensors, and software [4] - The company has deployed billions of MEMS microphones and sensors, powering various edge AI applications across consumer and industrial sectors [4] Industry Context - Bernstein, a joint venture between Societe Generale and AllianceBernstein, provides investment insights and equity research, serving professional clients globally [5]