Financial Data and Key Metrics Changes - The company reported Q3 revenues of $175 million, down 2% year-over-year, driven by lower shipments in Precision Devices [28][47] - Adjusted EBIT margin was 21%, which is 520 basis points above prior year levels and above the high end of guidance [5][68] - EPS for the quarter was $0.31, $0.06 above prior year levels and $0.01 above the high end of guidance [5][28] - Cash and cash equivalents totaled $75 million at the end of Q3, with cash from operations of $40 million, exceeding guidance [35][28] - The company expects to exit 2023 with approximately $80 million in cash and a net leverage ratio of about 1.4 [6] Business Line Data and Key Metrics Changes - In the Medtech and Specialty Audio segment, revenue was $57 million, up 20% year-over-year as demand returned to normalized levels [4][67] - Consumer MEMS Microphone revenues were $68 million, up 2% year-over-year, driven by higher shipments into nonmobile applications [4][45] - Precision Devices segment revenue was $50 million, down 22% from the prior year due to weak demand and excess channel inventory [47][31] - The company expects Q4 to be the peak quarter for CMM, driven by strong shipments to mobile [32][45] Market Data and Key Metrics Changes - The company noted robust secular trends in defense, medtech, and EV markets, which are expected to support growth [2][30] - The Precision Devices segment saw a book-to-bill ratio of 1.2 for Q3, indicating improved ordering trends [47][31] - The company anticipates that the consumer electronics markets have stabilized, with expectations for year-over-year revenue growth in 2024 [32][45] Company Strategy and Development Direction - The company is focused on balancing organic investment in R&D and CapEx with accretive M&A, as evidenced by the acquisition of Cornell Dubilier [1][42] - The strategic actions taken are aimed at transforming the company into an industrial technology firm, with a focus on high-growth markets [42][46] - Future guidance will include revenue, EPS, and cash from operations metrics that reflect the Cornell Dubilier acquisition [3][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a return to growth in Precision Devices, supported by positive ordering trends and a book-to-bill ratio above one for the first time in six quarters [31][2] - The company expects significant growth in Q1 2024, aided by easy comparisons from a weak Q1 2023 [15][57] - Management highlighted that while 2023 has been challenging, the second half of the year has shown improved performance [68][67] Other Important Information - SG&A expenses were $25 million, $1 million lower than the prior year, driven by lower sales commissions and incentive compensation costs [5] - The company repurchased approximately 900,000 shares at a total cost of $15 million during the quarter [35] - The company plans to hold a virtual Investor Day to provide updates on midterm financial targets and long-term strategy [71] Q&A Session Summary Question: What is the expected revenue contribution from Cornell Dubilier? - The company anticipates roughly $20 million in revenue from Cornell Dubilier for the quarter, as it was only owned for about two months [38] Question: How does the company view the inventory situation in Precision Devices? - Management indicated that inventory is being worked down, and they feel positive about growth for 2024 in the PD business [55] Question: What are the expectations for the CMM business in Q4? - Management expects Q4 to be strong for the CMM business, with significant year-over-year growth anticipated due to a weak Q1 of 2023 [15][32] Question: How is the integration process of Cornell Dubilier progressing? - The company is making progress on the integration process and expects to see revenue synergies starting in the back half of 2024 [72][74] Question: What is the outlook for pricing and order trends in the MSA business? - Management noted that pricing has been stable in the MSA business, and they are optimistic about growth in 2024 due to strong market demand [75]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36102 Knowles Corporation (Exact name of registrant as specified in its charter) (State or other jurisdi ...

Forward Looking Statements 4 REVENUE | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------|-------|---------------|-------|----------------| | (in millions, except per share amounts) \nNet earnings (loss) $ | | 2023 \n13.6 | $ | 2022 \n(242.9) | | Interest expense, net | | 0.8 | | 0.8 | | Provision for income taxes | | 3.8 | | 25.8 | | Earnings (loss) before interest and income taxes | $ | 18.2 | $ | (216.3) | | Non-GAAP ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36102 Knowles Corporation (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Ide ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36102 Knowles Corporation (Exact name of registrant as specified in its charter) (State or other jurisdictio ...

Financial Data and Key Metrics Changes - The company reported Q1 2023 revenues of $144 million, down 28% from the prior year, primarily due to lower shipment volumes in consumer MEMS microphones and MedTech and Specialty Audio [28][10]. - Gross margins for the first quarter were 37.7%, which is 270 basis points above the high end of the guidance range but down 390 basis points from the same period a year ago [31]. - Adjusted EBIT margin was 5.6%, near the high end of the guidance range, and EPS was $0.05, above the midpoint of the guidance range [35]. Business Line Data and Key Metrics Changes - In the Precision Devices segment, revenues were $54 million, down 4% from the prior year, driven by excess channel inventory in the industrial market, partially offset by increased shipments in EV, Defense, and MedTech [30]. - MedTech and Specialty Audio segment revenue was $46 million, down 24% year-over-year due to customer inventory adjustments and difficult comparables from the previous year [29]. - Consumer MEMS microphone revenue was $45 million, down 48% from the prior year, driven by weak global demand for consumer electronics and channel inventory adjustments [32]. Market Data and Key Metrics Changes - The EV market grew 50% year-over-year in Q1, with expectations for continued growth throughout 2023 [18]. - The industrial market, which constitutes less than 15% of company revenue, is facing continued weakness due to elevated distribution and customer inventory levels [19]. - The smartphone market has not seen further degradation, but recovery is not yet evident, leading to pricing pressure [23]. Company Strategy and Development Direction - The company is focusing on expanding its presence in high-margin markets such as MedTech, Defense, and EV, which now account for over 55% of its business [48]. - The strategy includes maintaining a strong balance sheet while exploring M&A opportunities, particularly in the Precision Devices space [54]. - The company aims to achieve gross margins of 43% and adjusted EBIT margins of 22% to 24% in the medium term, driven by a mix shift to higher-margin businesses and improved utilization [42]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the MedTech and Specialty Audio segments, anticipating a more than 27% sequential improvement in revenue driven by major hearing aid retailers [20]. - The company expects total revenue for Q2 to be between $165 million and $180 million, reflecting a 20% sequential increase but an 8% decrease year-over-year [37]. - Management noted that while the smartphone market remains challenging, there are signs of recovery in non-mobile shipments, with expectations for a strong sequential improvement starting in Q2 [22][24]. Other Important Information - Cash and cash equivalents totaled $52 million at the end of the quarter, with cash from operations of $22 million, above the midpoint of guidance [36]. - The company repurchased approximately 430,000 shares at a total cost of $7.5 million during the quarter [36]. - R&D expenses were $17 million, down from the prior year, while SG&A expenses were $27 million, slightly higher than the previous year [34][38]. Q&A Session Summary Question: What are the hurdles and outlook for CMM? - Management indicated that progress is being made on mix and utilization, with expectations for strong bookings in Q2 driven by Defense, MedTech, and EV [49][50]. Question: What is the outlook for M&A opportunities? - Management remains interested in M&A, particularly in the Precision Devices space, and expects to pursue opportunities at more reasonable valuations [54][56]. Question: Can you elaborate on the inventory dynamics? - Management noted that most end markets are in decent shape, with inventory challenges primarily in the industrial segment, which is expected to improve in Q3 [64][65]. Question: What is the outlook for the EV market? - The EV segment is expected to grow significantly, with strong bookings and an expanding customer base, contributing to overall revenue growth [71][92]. Question: What is the expected free cash flow for 2023? - Management anticipates free cash flow generation of 15% or more of revenues in 2023, with a shift in CapEx focus towards the MSA and PD segments [91].

Knowles Corporation (NYSE:KN) Q4 2022 Earnings Conference Call February 9, 2023 4:30 PM ET Company Participants Patton Hofer - Vice President of Investor Relations Jeffrey Niew - President & Chief Executive Officer John Anderson - Senior Vice President & Chief Financial Officer Conference Call Participants Bob Labick - CJS Securities Christopher Rolland - Susquehanna Anthony Stoss - Craig-Hallum Suji Desilva - Roth Capital Operator Good afternoon, and welcome to the Knowles Corporation Fourth Quarter and Fu ...

4 th Quarter and Full Year 2022 Forward Looking Statements Non-GAAP Disclaimer 2 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------|-------|-------|-----------------------------------|---------------------------|-------|-------|-------|---------------------------|-------|------------------------------------------------------------------------------------| | | | | | | | | | | | | | REVENUE ($M) | | | Non-GAAP GROSS PROFIT MARGIN* (%) | ADJUSTED EBIT MARGIN* (%) | | | | Non-GA ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36102 Knowles Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

《《 knowles 3 rd Quarter 2022 Earnings Release Supplemental Information October 27, 2022 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," "conti ...