8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)   November 13, 2018 (November 8, 2018)

KIMBALL ELECTRONICS, INC.

________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Indiana	001-36454	35-2047713
(State or other jurisdiction of	(Commission File	(IRS Employer Identification No.)
incorporation)	Number)

1205 Kimball Boulevard, Jasper, Indiana	47546
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code   (812) 634-4000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period forcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct. o

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On November 8, 2018, Geoffrey L. Stringer notified the Board of Directors (the “Board”) of Kimball Electronics, Inc. (the “Company”) of his retirement from the Company’s Board effective immediately. Mr. Stringer was initially elected to the Board in 2014 after the spin-off of the Company from its former parent. At the time of his retirement, Mr. Stringer also served as a member of the Audit Committee. Mr. Stringer indicated his decision was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices.

On November 8, 2018, the Company announced the appointment of a new independent director to the Company’s Board, Robert J. Phillippy, effective immediately. Mr. Phillippy will replace Mr. Stringer.

As a Class III Director, Mr. Phillippy will stand for election at the 2020 Annual Meeting of Share Owners of the Company. The Board also appointed Mr. Phillippy to serve on the Audit Committee of the Board. There are no arrangements or understandings between Mr. Phillippy or any person pursuant to which Mr. Phillippy was selected as a Director of the Company.

Mr. Phillippy retired in 2016 from his position as President, Chief Executive Officer, and a Director of Newport Corporation as a result of the acquisition of Newport. He served in that capacity for over eight years, was President and Chief Operating Officer from July 2004 to September 2007, and prior to that time, served in various executive management roles since joining Newport Corporation in 1996. Prior to joining Newport, he served for 12 years in various management roles for Square D Company, a division of Schneider Electric, progressing from field sales engineer to Vice President of Channel Marketing. Mr. Phillippy’s extensive experience as a chief executive officer of a publicly traded company and his broad knowledge of marketing and highly technical products will provide expertise and experience in corporate governance, operations, and product development.

Mr. Phillippy currently serves on the boards of directors of ESCO Technologies (NYSE: ESE) and Materion Corporation (NYSE: MTRN). Mr. Phillippy holds a B.S. degree in electrical engineering from the University of Texas, as well as a Masters of Management from the Kellogg Graduate School of Management at Northwestern University.

All independent (non-employee) directors receive annual retainer fees of $75,000 plus an additional $65,000 of retainer fees paid in shares of Common Stock of the Company. The Directors can elect to receive some or all of the $75,000 portion of their annual retainer fees in shares of the Company’s Common Stock. The additional $65,000 of annual retainer fees shall be paid in shares of the Company’s Common Stock. Non-employee directors can elect to defer all, or a portion of, their stock retainer fees until termination of service from the Board. Shares of Common Stock will be issued either under the Company’s 2014 Stock Option and Incentive Plan or the Non-Employee Directors Stock Compensation Deferral Plan. Directors are also reimbursed for reasonable travel expenses incurred in connection with Board and Committee meeting attendance.

The Company’s press release announcing the retirement of Mr. Stringer and the appointment of Mr. Phillippy is attached on Exhibit 99.1 and is incorporated into this Item 5.02 by reference.

Item 5.07 Submission of Matters to a Vote of Security Holders

The Annual Meeting of Share Owners of the Company was held on November 8, 2018, and the following items were voted on by Share Owners:

1. The Board is divided into three classes with approximately one-third of the directors up for election each year, with Class I standing for re-election at this meeting. Members of the Board are elected by the plurality of the votes cast by the shares entitled to vote in the election at the meeting. Class I members were elected based on the following election results:

Class I Nominees as Directors serving a 3 year term	Votes For	Votes Withheld	Broker Non-Votes
Donald D. Charron	15,064,137	5,509,063	3,068,886
Colleen C. Repplier	14,944,463	5,628,737	3,068,886
Gregory J. Lampert	14,256,233	6,316,967	3,068,886

2. The ratification of the selection of Deloitte & Touche, LLP as the independent registered public accounting firm for the fiscal year 2019 was approved based on the following voting results:

Votes For	Votes Against	Votes Abstaining
23,607,614	15,818	18,654

3. The compensation paid to the Company’s Named Executive Officers was approved, by a non-binding, advisory vote, based on the following voting results:

Votes For	Votes Against	Votes Abstaining	Broker Non-Votes
19,763,135	740,871	69,194	3,068,886

4. The preferred frequency for the Company to conduct future advisory votes on the compensation paid to the Company’s Named Executive Officers was approved for every one year, by a non-binding, advisory vote, based on the following voting results:

1 Year	2 Years	3 Years	Votes Abstaining	Broker Non-Votes
17,290,290	723,155	2,524,327	35,428	3,068,886

Item 7.01 Regulation FD Disclosure

Senior management of the Company will present an overview of the Company at the Southwest IDEAS Investor Conference in Dallas, Texas, on November 14, 2018. The Company’s press release announcing the conference presentation is attached on Exhibit 99.2, and the slides to be used in the presentation are being furnished as Exhibit 99.3 to this Current Report on Form 8-K.

The information contained in, or incorporated into, this Item 7.01, including Exhibit 99.2 and Exhibit 99.3 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 8.01 Other Events

On November 8, 2018, the Board approved a resolution to authorize an extension to the Company’s current stock repurchase program (the “Plan”) by allowing a repurchase of up to an additional $20 million of common stock of the Company. This extension brings the total authorized stock repurchases under the Plan to $80 million, with no expiration date. The Plan was initially authorized on October 21, 2015 as an 18-month repurchase plan to repurchase up to $20 million of our common stock. The Plan was extended in September 2016 to allow the repurchase of an additional $20 million worth of common stock with no expiration date and was extended again in August 2017 to allow the repurchase of up to an additional $20 million of the Company’s common stock. The Plan may be suspended or discontinued at any time. The Company’s press release announcing the stock repurchase plan is attached on Exhibit 99.1 and is incorporated into this Item 8.01 by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibits are filed as part of this report:

Exhibit
Number	Description
99.1	Press Release dated November 8, 2018
99.2	Press Release dated November 12, 2018
99.3	Investor Presentation dated November 2018

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KIMBALL ELECTRONICS, INC.
By:	/s/ John H. Kahle
	JOHN H. KAHLE Vice President, General Counsel, Chief Compliance Officer, and Secretary

Date: November 13, 2018

EX-99.1

Exhibit 99.1

Kimball Electronics, Inc. Announces Retirement of Director Geoffrey L. Stringer, Appointment of Director Robert J. Phillippy, and Extension of Stock Repurchase Plan

JASPER, Ind., Nov. 08, 2018 (GLOBE NEWSWIRE) -- Kimball Electronics, Inc. (NASDAQ: KE), (the “Company”), today announced the appointment of Robert J. (“Bob”) Phillippy to its Board of Directors (the “Board”), effective immediately. Mr. Phillippy will also serve as a member of the Audit Committee of the Board.

Mr. Phillippy will replace Geoffrey L. Stringer, who is retiring from the Board after over 15 years of dedicated service with the Company and its former parent, Kimball International, Inc.

“Speaking on behalf of our Board, we want to express our deepest gratitude for the outstanding work and wise counsel given by Geoffrey. His experience was invaluable as we began our journey as an independent public company four years ago. He will be sorely missed and we wish him well in his retirement,” said Don Charron, Chairman of the Board and Chief Executive Officer.

Mr. Phillippy was selected following an extensive national search in partnership with RSR Partners of Northfield, Illinois.

Mr. Phillippy currently works as an independent consultant following his retirement in April 2016 from his position as President, Chief Executive Officer, and a Director of Newport Corporation as a result of the acquisition of Newport. He served Newport in that capacity for over 8 years, was President and Chief Operating Officer from July 2004 to September 2007, and prior to that time served in various executive management roles since joining Newport in April 1996. Prior to joining Newport, he served for 12 years in various management roles for Square D Company, a division of Schneider Electric, progressing from field sales engineer to Vice President of Channel Marketing. He currently serves on the boards of directors of ESCO Technologies (NYSE: ESE) and Materion Corporation (NYSE: MTRN). Mr. Phillippy holds a B.S. degree in electrical engineering from the University of Texas, as well as a Masters of Management from the Kellogg Graduate School of Management at Northwestern University.

Mr. Charron continued, “We are honored to have Bob join us to add his knowledge, experience, and counsel, especially given his extensive experience as a chief executive officer of a publicly traded company and his broad knowledge of marketing and highly technical products. It was extremely important to us that we recruit not only a very capable individual, but also someone who shares our common values and embraces our guiding principles.”

The Company also announced today that the Board authorized an extension of the current stock repurchase plan (the “Plan”) that was originally authorized in October 2015, and extended in September 2016 and August 2017, allowing a repurchase of up to an additional $20 million of common stock of the Company. This extension brings the total amount of authorized share repurchases under the Plan to $80 million, with no expiration date. The Plan may be suspended or discontinued at any time.

Purchases may be made under various programs, including in open-market transactions, block transactions on or off an exchange, or in privately negotiated transactions, all in accordance with applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Repurchases may also be made under a Rule 10b5-1 program, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws.

The extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements, and other

corporate considerations, as determined by the Company’s management team. The Company expects to finance the additional purchases with existing liquidity.

“Our Board and management believe the stock repurchase program demonstrates confidence in our growth strategies and a commitment to delivering shareholder value,” said Mike Sergesketter, Vice President and Chief Financial Officer of Kimball Electronics.

About Kimball Electronics, Inc.

WHO WE ARE Kimball Electronics is a leading contract manufacturer of durable electronics serving a variety of industries on a global scale. The customer is the focus of everything we do and our touch is felt throughout daily life via the markets we serve: Automotive, Industrial, Medical, and Public Safety. Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Our employees know they are part of a company culture that is committed to doing the right thing. We build lasting relationships and global success for customers while enabling employees to share in the Company’s success through personal, professional, and financial growth.

WHAT WE DO Kimball Electronics trades under the symbol “KE” on The NASDAQ Stock Market. Kimball Electronics is a preeminent Electronics Manufacturing Services (“EMS”) provider serving customers around the world. Additionally, Kimball Electronics offers diversified contract manufacturing services (“DCMS”) for non-electronic components, medical disposables, and plastics. GES, a Kimball Electronics Company, specializes in design, production and servicing of automation, test, and inspection equipment for the semiconductor, electronics, and life sciences industries. From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries globally. Kimball Electronics is headquartered in Jasper, Indiana.

To learn more about Kimball Electronics, visit: www.kimballelectronics.com.

Lasting relationships. Global success.

EX-99.2

Exhibit 99.2

Kimball Electronics to Present at the Southwest IDEAS Investor Conference in Dallas on November 14, 2018

JASPER, Ind., Nov. 12, 2018 (GLOBE NEWSWIRE) -- Kimball Electronics, Inc. (NASDAQ: KE), a leading global electronics manufacturing services provider of high-quality, durable electronic products, today announced Michael K. Sergesketter, Vice President and CFO, will be presenting at the Southwest IDEAS Investor Conference on Wednesday, November 14, 2018 at The Fairmont in Dallas, Texas.

Kimball Electronics’ presentation is scheduled to begin at 1:10 pm CT. The presentation will be webcast live and may be accessed at the conference website, www.IDEASconferences.com. If interested in attending or learning more about the IDEAS Conferences, please contact Jeff Elliott, (972) 423-7070 or jelliott@threepa.com.

About IDEAS Investor Conferences

The mission of the IDEAS Conferences is to provide independent regional venues for quality companies to present their investment merits to an influential audience of investment professionals. Unlike traditional bank-sponsored events, IDEAS Investor Conferences are “Sponsored BY the Buyside FOR the Buyside” and for the benefit of regional investment communities. Conference sponsors collectively have more than $200 billion in assets under management and include: Adirondack Research and Management, Allianz Global Investors: NFJ Investment Group, Ariel Investments, Aristotle Capital Boston, Barrow Hanley Mewhinney & Strauss, BMO Global Asset Management, Constitution Research & Management, Inc., Fidelity Investments, First Wilshire Securities Management, Inc., Gamco Investors, Granahan Investment Management, Great Lakes Advisors, Greenbrier Partners Capital Management, LLC, GRT Capital Partners, LLC, Hodges Capital Management, Ironwood Investment Management, Keeley Teton Advisors, Luther King Capital Management, Marble Harbor Investment Counsel, Perritt Capital Management, Punch & Associates, Westwood Holdings Group, Inc., and William Harris Investors.

The IDEAS Investor Conferences are held annually in Boston, Chicago and Dallas and are produced by Three Part Advisors, LLC. Additional information about the events can be located at www.IDEASconferences.com.

About Kimball Electronics, Inc.

WHO WE ARE Kimball Electronics is a leading contract manufacturer of durable electronics serving a variety of industries on a global scale. The customer is the focus of everything we do and our touch is felt throughout daily life via the markets we serve: Automotive, Industrial, Medical, and Public Safety. Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Our employees know they are part of a company culture that is committed to doing the right thing. We build lasting relationships and global success for customers while enabling employees to share in the Company’s success through personal, professional, and financial growth.

WHAT WE DO Kimball Electronics trades under the symbol “KE” on The NASDAQ Stock Market. Kimball Electronics is a preeminent Electronics Manufacturing Services (“EMS”) provider serving customers around the world. Additionally, Kimball Electronics offers diversified contract manufacturing services (“DCMS”) for non-electronic components, medical disposables, and plastics. GES, a Kimball Electronics Company, specializes in design, production and servicing of automation, test, and inspection equipment for the semiconductor, electronics, and life sciences industries. From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries globally. Kimball Electronics is headquartered in Jasper, Indiana.

To learn more about Kimball Electronics, visit: www.kimballelectronics.com.

Lasting relationships. Global success.

EX-99.3

Exhibit 99.3 Investor Presentation November 2018

KIMBALL ELECTRONICS (Nasdaq: KE) // Safe Harbor Statement Certain statements contained within this presentation may be considered forward-looking under the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties including, but not limited to, successful integration of acquisitions and new operations, global economic conditions, geopolitical environment, significant reductions in volumes and order patterns from key contract customers, loss of key customers or suppliers, financial stability of key customers and suppliers, availability or cost of raw materials, impact related to tariffs and other trade barriers, and increased competitive pricing pressures reflecting excess industry capacities. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Kimball Electronics, Inc. (the “Company”) are contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 and other filings with the Securities and Exchange Commission (the “SEC”). This presentation contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with Generally Accepted Accounting Principles (GAAP) in the United States in the statement of income, statement of comprehensive income, balance sheet, statement of cash flows, or statement of equity of the company. The non-GAAP financial measures contained herein include Adjusted Operating Income/Margin, Adjusted Net Income/Margin, Adjusted EBITDA/Margin, Tangible Book Value, Tangible Book Value per Share, Adjusted Earnings Per Share, and Return on Invested Capital (ROIC), which have been adjusted for spin-off expenses, proceeds from a lawsuit settlement, a bargain purchase gain, and provisional tax items related to the U.S. Tax Cuts and Jobs Act (“Tax Reform”) enacted in December 2017. Management believes it is useful for investors to understand how its core operations performed without the effects of incremental costs related to the spin-off, lawsuit proceeds, the bargain purchase gain, and provisional tax items related to Tax Reform. Excluding these amounts allows investors to meaningfully trend, analyze, and benchmark the performance of the Company’s core operations. Many of the Company’s internal performance measures that management uses to make certain operating decisions use these and other non-GAAP measures to enable meaningful trending of core operating metrics.

KIMBALL ELECTRONICS (Nasdaq: KE) // Who We Are Global contract manufacturer Headquarters: of electronic components used in… Jasper, Indiana Automotive, Industrial, Medical & Public Safety Industries Established in 1961 Focused on non-commodity products and components that require … Nasdaq: KE complexity, quality, reliability, and durability Market Cap*: $491 M FY18 Revenue: $1.1 B 6,000+ employees in 9 countries** FYE: June 30 *As of October 31, 2018 KIMBALL ELECTRONICS ** Including acquisition of GES, closed October 1, 2018 3

KIMBALL ELECTRONICS (Nasdaq: KE) // Why Invest? Expect high single-digit revenue • Utilization rates increase growth Opportunities Above Average to Expand • New customer programs • Focus on secular growth trends mature Revenue • Positive outsourcing trends Profitability Growth • Contribution from new • Market share gains and Returns strategic investments Significant barriers to entry • 10 year+ relationships with • Focus in areas that require Sustainable 61% (as a % of revenue) of complexity, regulatory approval, Predictable & customers* Competitive and durable electronics Recurring • 3 to 10 year typical program Advantage • Sustainable long-term customer Revenue life relationships Track record of disciplined capital allocation decisions Strong • Investment focus on ROIC Balance • Repurchased >10% of outstanding shares Sheet • $75 million in cash… $59 million in debt** • $150 million Credit Facility, with option to increase to $225 million** * As of or For the Year Ended June 30, 2018 KIMBALL ELECTRONICS 4 ** As of September 30, 2018

KIMBALL ELECTRONICS (Nasdaq: KE) // What We Do PUBLIC SAFETY 6%* INDUSTRIAL 20%* • Thermal Imaging • Climate Controls • Fire Detection • Automation Controls • Defense • LED Lighting • Security • Operator Interface $1.1B OTHER 1%* FY 2018 NET SALES AUTOMOTIVE 44%* MEDICAL 29%* • Electronic Power Steering • Sleep Therapy and Respiratory Care • Anti-Lock Brakes • Patient Care and Monitoring • Occupant Safety • In Vitro Diagnostics • Telematics • Drug Delivery Contract Manufacturer of non-commodity products and components that require complexity, quality, reliability, and durability KIMBALL ELECTRONICS *As a % of FY2018 total revenue; Unaudited 5

KIMBALL ELECTRONICS (Nasdaq: KE) // Our Value Proposition/Competitive Moat Global consistency - Single instance of SAP supports manufacturing operations globally. Standard lean six sigma practices shared across all facilities. Deep domain expertise - Experienced body of knowledge required for high quality, high reliability, highly complex, and durable electronics. Regulatory compliance & industry certifications - FDA, ISO, UL, CSA, RoHS, WEEE, DFT, HALT, HASS, IPC, J-STD Global Footprint – Support global OEMs in all areas of the world. More easily allows programs to be single sourced. 57 year history – Track record for quality and cost innovation. KIMBALL ELECTRONICS 6

KIMBALL ELECTRONICS (Nasdaq: KE) // Global Footprint Poznan, Poland Indianapolis, IN San Jose, CA Chiba, Japan Timisoara, Romania Nanjing, China Jasper, IN Tampa, FL Suzhou, China Reynosa, Mexico Trivandrum, India Ho Chi Minh City, Vietnam Laem Chabang, Thailand 1.3 million square feet of owned manufacturing space KIMBALL ELECTRONICS 7 4,300+ Employees Worldwide 1,160,000 sq. ft. Total Facility Square Footage

KIMBALL ELECTRONICS (Nasdaq: KE) // Sustainable Long-Term Customer Relationships 14% More than 10 Years 28 Customers Typical Program Length 20% 5-10 Years Automotive: 5-7 years 16 Customers Medical: 10 years 66% Industrial: 3-5 years Less than 5 Years 28 Customers % of Net Sales 1QFY19 Programs are mostly single sourced Recurring revenue Long-term predictable revenue enables multi-year planning Enables projects focused on multi-year ROIC KIMBALL ELECTRONICS 8

KIMBALL ELECTRONICS (Nasdaq: KE) // Sizable Addressable Market Total Market Size $471 Billion Industrial Market CAGR CAGR Medical $31 Verticals 2012-2017 2017-2022 Billion Automotive 5.9% 8.3% $19 Medical 5.1% 6.2% Billion Industrial 2.5% 5.9% Total Market 2.7% 7.5% Automotive $14 Billion Focused on Fast Growing Market Verticals Source: THE WORLDWIDE ELECTRONICS MANUFACTURING SERVICES MARKET – 2018 EDITION New Venture Research Corp. KIMBALL ELECTRONICS 9

KIMBALL ELECTRONICS (Nasdaq: KE) // Rapid Change for Traditional Manufacturing • Outsourcing is accelerating… – Faster time to market – Allocating resources to points of differentiation – Eco-system is becoming exponentially more complicated – Global worker shortage – Near sourcing •Disruption is coming… – Automation – 3D Printing – Artificial Intelligence – Augmented Reality Creates Multiple Opportunities for Kimball Electronics KIMBALL ELECTRONICS 10

KIMBALL ELECTRONICS (Nasdaq: KE) // Megatrends Opportunities Increasing electronic content per vehicle • Advanced Driver Assistance Systems (“ADAS”) • Infotainment Systems • Passenger Safety Systems • Mobility/Vehicle Management • Electric Vehicles • Redundant Systems for Self Driving Cars Global Automotive electronics assembly value to grow 8.3% through 2022 Sources: Clemson University; THE WORLDWIDE ELECTRONICS MANUFACTURING KIMBALL ELECTRONICS SERVICES MARKET – 2018 EDITION New Venture Research Corp. 11

KIMBALL ELECTRONICS (Nasdaq: KE) // Megatrends Opportunities Healthcare Growth Internet Connected Devices • Aging Population • Internet of Things • Increasing Access to Care • Smart Metering • Remote Patient Monitoring • Energy Efficient Lighting • Decreasing Device Size • Connected Drug Delivery Global Medical electronics assembly value to grow 6.2% through 2022 Global Industrial electronics assembly value to grow 5.9% through 2022 KIMBALL ELECTRONICS * THE WORLDWIDE ELECTRONICS MANUFACTURING SERVICES MARKET – 2018 EDITION New Venture Research Corp. 12

KIMBALL ELECTRONICS (Nasdaq: KE) // Creating Shareholder Value Target end markets with strong secular growth Make investments that enable greater strategic customer engagement and enhance return profile Leveraging existing assets & continuously improving efficiencies KIMBALL ELECTRONICS 13

KIMBALL ELECTRONICS (Nasdaq: KE) // Creating Shareholder Value (Unaudited) End Markets with Secular Growth - Automotive Kimball Automotive Growth 44% of Revenue* AUTOMOTIVE CAGR 2014-2018 1QFY19 TTM Growth • Electronic Power Steering • Anti-Lock Brakes 14% 22% • Occupant Safety • Telematics Market Growth Representative Customers CAGR 2012-2017** CAGR 2017-2022** 5.9% 8.3% 1 in 5 light vehicles have a Kimball Part *As a % of FY2018 total revenue KIMBALL ELECTRONICS ** THE WORLDWIDE ELECTRONICS MANUFACTURING SERVICES MARKET – 2018 EDITION New Venture Research Corp . 14

KIMBALL ELECTRONICS (Nasdaq: KE) // Automotive Revenue Vs. Global Production 25% 22.1% 20% 16.8% 15% 13.3% 10% 6.0% 4.8% 5% 2.1% 1.8% 0.8% 0% 2015 2016 2017 YTD Sep '18 KE Automotive Revenue Growth Change in global light vehicle production Key Drivers: Increasing Electronic Content Per Vehicle Taking Market Share *Source IHS **Represents calendar year revenue growth ***22.1% is for the nine month period ended Sept 30, 2018 versus the nine month period ended Sept 30, 2017 KIMBALL ELECTRONICS Global light vehicle production YTD through Sept 30, 2018 15

KIMBALL ELECTRONICS (Nasdaq: KE) // Creating Shareholder Value (Unaudited) End Markets with Secular Growth - Medical Kimball Medical Growth 29% of Revenue* CAGR 2014-2018 1QFY19 TTM Growth MEDICAL • Sleep Therapy and 11% 19% Respiratory Care • Patient Care and Monitoring • In Vitro Diagnostics • Drug Delivery Market Growth Representative Customers CAGR 2012-2017** CAGR 2017-2022** 5.1% 6.2% Medical Healthcare Healthcare *As a % of FY2018 total revenue KIMBALL ELECTRONICS ** THE WORLDWIDE ELECTRONICS MANUFACTURING SERVICES MARKET – 2018 EDITION New Venture Research Corp. 16

KIMBALL ELECTRONICS (Nasdaq: KE) // Creating Shareholder Value (Unaudited) End Markets with Secular Growth – Industrial 20% of Revenue* Kimball Industrial Growth INDUSTRIAL CAGR 2014-2018 1QFY19 TTM Growth • Climate Controls • Automation Controls • LED Lighting 3% 5% • Operator Interface Market Growth Representative Customers CAGR 2012-2017** CAGR 2017-2022** 2.5% 5.9% *As a % of FY2018 total revenue KIMBALL ELECTRONICS ** THE WORLDWIDE ELECTRONICS MANUFACTURING SERVICES MARKET – 2018 EDITION New Venture Research Corp. 17

KIMBALL ELECTRONICS (Nasdaq: KE) // Creating Shareholder Value Multifaceted Manufacturing Solutions Company Organic Growth Electronics Manufacturing Outsourced Manufacturing Services Services M&A Investments that Increase Customer Engagement Diversified Add manufacturing services for non-electronic Contract components Manufacturing Services Enhance profitability/return - Attractive margin and return profile Offer Turnkey Solutions & Package of Value Expand capabilities to manufacture, install, and service Automation, manufacturing systems Test & Measurement Greater strategic customer engagement – Engaged in the decision to build internally or contract, as well as the decision of “How to build it” Expanding Solution Set Solution Expanding Enhance profitability/return with businesses that include proprietary products, software, and services Leverage AT&M technologies across all market verticals – Create new revenue opportunities and improve manufacturing efficiencies/quality 18

KIMBALL ELECTRONICS (Nasdaq: KE) // Creating Shareholder Value Acquisition Strategy Primary Focus: Key Criteria To establish a global market leadership • New capabilities position as a premier AT&M provider • Alignment with four end-market strategy Secondary Focus: • New customer relationships and minimum • Medical focused Diversified Contract customer overlap Manufacturing Services • EPS accretive by the second year and ROIC • Opportunistic deals in key market verticals accretive by the third year GES Acquisition - Completed Oct 1, 2018 • First AT&M acquisition - $50 million in Cash, plus assumed liabilities* • Added capabilities - production processing, test equipment design, volume manufacturing, and global services for the semiconductor and electronics product manufacturing industry • Expected to add 4% to 6% to revenue in FY2019 • Expected to be neutral to slightly accretive to earnings per share in FY2019 KIMBALL ELECTRONICS *Subject to working capital adjustments 19

KIMBALL ELECTRONICS (Nasdaq: KE) // Creating Shareholder Value ROIC Measured Over Multiple Years As new programs mature, volumes ramp and cost efficiencies are gained Increased launch activity in recent years has put near term pressure on profitability/returns ROIC measured over multiple years Programs are mostly single sourced Program Life-Cycle Initial investments volume ramp and Efficiencies from Efficiencies offset by End of sourcing & process utilization pricing pressure product life improvement improves Profitability Time (3 to 10 years) KIMBALL ELECTRONICS 20

KIMBALL ELECTRONICS (Nasdaq: KE) // Financial Review Revenue Growth, Margin Expansion, and Strong Financial Profile KIMBALL ELECTRONICS 21

KIMBALL ELECTRONICS (Nasdaq: KE) // Financial Targets 8% 4.5% 12.5% Revenue Growth Operating Margin ROIC KIMBALL ELECTRONICS 22

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Revenue Performance Target 8% - Achieving above target growth rates 10% - CAGR FY2014 to FY2018 13% Growth TTM 1QFY19 (ended Sept. 30, 2018) $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 FY16 FY17 FY18 TTM TTM 1Q18 1Q19 In $ millions KIMBALL ELECTRONICS 23

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Revenue Mix by Vertical Market 100% 2% 2% 1% 1% 6% 7% 7% 6% 90% 20% 22% 80% 22% 22% 70% 60% 29% 30% 28% 31% 50% 40% 30% 44% 20% 39% 41% 40% 10% 0% FY16 FY17 FY18 Q1FY19 Automotive Medical Industrial Public Safety Other KIMBALL ELECTRONICS 24

KIMBALL ELECTRONICS (Nasdaq: KE) // Profitability Trends (Unaudited) Adjusted Operating Income/Margin* Target 4.5% Operating Margin Expect improvement from ramping utilization of greenfield plant in Romania and maturity of new programs 3.9% $45 4.2% 4.1% 3.6% 4.5% $40 3.5% 4.0% $35 3.5% $30 3.0% $25 2.5% $20 2.0% $15 1.5% $10 1.0% $5 0.5% $0 0.0% FY16 FY17 FY18 TTM 1Q18 TTM 1Q19 In $ millions *Adjusted Operating Income and Margin are Non-GAAP terms. A reconciliation is provided in the appendix of this presentation. Prior period amounts have been restated to reflect the retrospective adoption of new accounting guidance KIMBALL ELECTRONICS 25 on improving the presentation of net periodic pension cost and net periodic postretirement benefit cost.

KIMBALL ELECTRONICS (Nasdaq: KE) // Profitability Trends (Unaudited) Adjusted EBITDA/Margin* Expect improvement from ramping utilization of greenfield plant in Romania and maturity of new programs $80 8.0% 7.0% 6.7% 6.9% $70 6.3% 7.0% 5.7% $60 6.0% 5.0% $50 4.0% $40 3.0% $30 2.0% $20 1.0% $10 0.0% In $ millions FY16 FY17 FY18 TTM 1Q18 TTM 1Q19 * Adjusted EBITDA and Margin are Non-GAAP terms. A reconciliation is provided in the appendix of this presentation. KIMBALL ELECTRONICS 26

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Capital Expenditures and D&A Significant capex spending to fuel multi-year organic growth and expansion in ROIC • DCMS • Romanian Plant FY2015 to FY2017 - $40 million+ investment in excess of D&A spent on Growth 14.0 12.0 10.0 8.0 6.0 4.0 2.0 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 D&A Total Capex In $ millions KIMBALL ELECTRONICS 27

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Target ROIC 12.5% Significant capex spending to fuel multi-year organic growth and expansion in ROIC • DCMS • Romanian Plant FY2015 to FY2017 - $40 million+ investment in excess of D&A spent on Growth 14.0% 12.0% 10.3% 10.1% 10.2% 10.0% 8.9% 9.3% 8.0% 6.0% 4.0% 2.0% 0.0% FY16 FY17 FY18 TTM TTM Q1FY18 Q1FY19 * ROIC is a Non-GAAP term. A reconciliation is provided in the appendix of this presentation. KIMBALL ELECTRONICS Prior period amounts have been restated to reflect the retrospective adoption of new accounting guidance on 28 improving the presentation of net periodic pension cost and net periodic postretirement benefit cost.

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Capital Allocation Reinvest in the business – Significant capex spending of approximately $30 million/year to multi-year organic growth and expansion in ROIC Acquisitions - $10+ million of opportunistic acquisitions over past three years. Going forward M&A will play an important role in strategic direction of the firm. Share Repurchase – $44.5 million of common stock repurchases representing more than 10% of outstanding shares through FY2018 at an average price of $13.92/share $70 $60 $50 $40 $30 $20 $10 $0 FY15 FY16 FY17 FY18 In $ millions KIMBALL ELECTRONICS 29

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Strong Balance Sheet Ample Liquidity for Growth $75M in Cash* $59 million in Debt * $150M credit facility, with option to increase to $225 million* 1.3 million square feet of owned manufacturing space Consistent Working Capital Management DSO – 55 to 62 days Inventory Turns – 5.1x to 6.2x per year Cash Conversion Cycle – 59 to 68 days * As of Sept 30, 2018 KIMBALL ELECTRONICS 30

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Growing Book Value Growth in Tangible Book Value Per Share/ Adjusted Earnings Per Share* $13 $12 $1.28 $1.12 $11 EPS $0.77 Book Value $10 $0.97 $9 $8 $7 $6 FY15 FY16 FY17 FY18 * Adjusted Earnings Per Share and Tangible Book Value are Non-GAAP terms. A reconciliation is provided in the appendix of this presentation. KIMBALL ELECTRONICS 31

KIMBALL ELECTRONICS (Nasdaq: KE) // Why Invest? Expect high single-digit revenue • Utilization rates increase growth Opportunities Above Average to Expand • New customer programs • Focus on secular growth trends mature Revenue • Positive outsourcing trends Profitability Growth • Contribution from new • Market share gains and Returns strategic investments Significant barriers to entry • 10 year+ relationships with • Focus in areas that require Sustainable 61% (as a % of revenue) of complexity, regulatory approval, Predictable & customers* Competitive and durable electronics Recurring • 3 to 10 year typical program Advantage • Sustainable long-term customer Revenue life relationships Track record of disciplined capital allocation decisions Strong • Investment focus on ROIC Balance • Repurchased >10% of outstanding shares Sheet • $75 million in cash… $59 million in debt** • $150 million Credit Facility, with option to increase to $225 million** * As of or For the Year Ended June 30, 2018 KIMBALL ELECTRONICS 32 ** As of September 30, 2018

QUESTIONS KIMBALL ELECTRONICS 33

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Reconciliation of Non-GAAP Results (In Millions) FY16 FY17 FY18 TTM 1Q18 TTM 1Q19 Revenue, as reported $ 842 $ 931 $ 1,072 $ 958 $ 1,084 Operating Income (GAAP) $ 29.518 $ 42.780 $ 42.038 $ 39.568 $ 39.547 Add: Spin-off Expenses 0.137 - - - - Less: Lawsuit Proceeds - 4.005 - - 0.092 Adjusted Operating Income (non-GAAP) $ 29.655 $ 38.775 $ 42.038 $ 39.568 $ 39.455 Adjusted Operating Margin (non-GAAP) 3.5% 4.2% 3.9% 4.1% 3.6% Revenue, as reported $842 $931 $1,072 $958 $1,084 Net Income (GAAP) $ 22.287 $ 34.179 $ 16.752 $ 32.537 $ 13.341 Add: Spin-off Costs 0.085 - - - - Add: Provisional Tax Adj. from Tax Reform - - 17.859 - 17.859 Less: Lawsuit Proceeds - 2.499 - - 0.070 Less: Bargain Purchase Gain - 0.925 - - - Adjusted Net Income (non-GAAP) $ 22.372 $ 30.755 $ 34.611 $ 32.537 $ 31.130 Adjusted Net Income Margin (non-GAAP) 2.7% 3.3% 3.2% 3.4% 2.9% Revenue, as reported $842 $931 $1,072 $958 $1,084 Adjusted Net Income (non-GAAP) $ 22.372 $ 30.755 $ 34.611 $ 32.537 $ 31.130 Add Interest, net 0.001 0.207 0.454 0.289 0.739 Add Depreciation & Amortization 19.869 23.904 26.376 24.560 26.762 Add Taxes 5.689 10.076 10.164 8.968 9.196 Adjusted EBITDA (non-GAAP) $ 47.931 $ 64.942 $ 71.605 $ 66.354 $ 67.827 Adjusted EBITDA Margin (non-GAAP) 5.7% 7.0% 6.7% 6.9% 6.3% * Prior period amounts have been restated to reflect the retrospective adoption of new accounting guidance on improving the presentation of net periodic pension cost and net periodic postretirement benefit cost. KIMBALL ELECTRONICS 34

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Reconciliation of Non-GAAP Results (In Millions, except per share data) FY16 FY17 FY18 TTM 1Q19 Shareholders Equity, as reported $ 324.369 $ 342.272 $ 355.527 $ 358.884 Goodwill & Intangibles $ 10.784 $ 10.772 $ 10.566 $ 10.904 Tangible Book Value $ 313.585 $ 331.500 $ 344.961 $ 347.980 Average Shares Outstanding (Dilluted) 29.176 27.530 27.007 26.628 Tangible BV/Share $ 10.75 $ 12.04 $ 12.77 $ 13.07 Diluted Earnings per Share, as reported $ 0.76 $ 1.24 $ 0.62 $ 0.50 Add: Provisional Tax Adj. from Tax Reform - - 0.66 0.66 Add: Impact of Spin-off Expenses 0.01 - - - Less: Impact of Settlement Proceeds from Lawsuits - 0.09 - - Less: Bargain Purchase Gain - 0.03 - - Adjusted Diluted Earnings per Share $ 0.77 $ 1.12 $ 1.28 $ 1.16 KIMBALL ELECTRONICS 35

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Reconciliation of Non-GAAP Results (In Thousands) 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Operating Income (GAAP) (TTM) $ 29,518 $ 35,381 $ 40,671 $ 43,115 $ 42,780 $ 39,568 $ 37,515 $ 39,177 $ 42,038 $ 39,547 Add: Spin-off Expenses (TTM) $ 137 $ - $ - $ - $ - $ - $ - $ - $ - $ - Less: Lawsuit Proceeds (TTM) $ - $ 4,005 $ 4,005 $ 4,005 $ 4,005 $ - $ - $ - $ - $ 92 Adjusted Operating Income (non-GAAP) (TTM) $ 29,655 $ 31,376 $ 36,666 $ 39,110 $ 38,775 $ 39,568 $ 37,515 $ 39,177 $ 42,038 $ 39,455 Tax Effect $6,267 $6,232 $8,003 $9,845 $8,627 $8,723 $7,269 $7,642 $9,715 $9,152 After Tax Adj. Operating Income (TTM) $ 23,388 $ 25,144 $ 28,663 $ 29,265 $ 30,148 $ 30,845 $ 30,246 $ 31,535 $ 32,323 $ 30,303 Average Invested Capital * $263,371 $271,587 $277,291 $285,547 $293,516 $302,721 $308,339 $315,751 $319,074 $326,168 ROIC 8.9% 9.3% 10.3% 10.2% 10.3% 10.2% 9.8% 10.0% 10.1% 9.3% * Average Invested Capital is computed using Share Owners’ equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters. Prior period amounts have been restated to reflect the retrospective KIMBALL ELECTRONICS adoption of new accounting guidance on improving the presentation of net periodic pension cost and net periodic 36 postretirement benefit cost.

KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Reconciliation of Non-GAAP Results (In Thousands) FY16 FY17 FY18 TTM1Q18 TTM1Q19 Operating Income (GAAP) $ 29,518 $ 42,780 $ 42,038 $ 39,568 $ 39,547 Add: Spin-off Expenses $ 137 $ - $ - $ - $ - Less: Lawsuit Proceeds $ - $ 4,005 $ - $ - $ 92 Adjusted Operating Income (non-GAAP) $ 29,655 $ 38,775 $ 42,038 $ 39,568 $ 39,455 Tax Effect $ 6,267 $ 8,627 $ 9,715 $ 8,723 $ 9,152 After Tax Adj. Operating Income $ 23,388 $ 30,148 $ 32,323 $ 30,845 $ 30,303 Average Invested Capital * $ 263,371 $ 293,516 $ 319,074 $ 302,721 $ 326,168 ROIC 8.9% 10.3% 10.1% 10.2% 9.3% * Average Invested Capital is computed using Share Owners’ equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters. Prior period amounts have been restated to reflect the retrospective KIMBALL ELECTRONICS adoption of new accounting guidance on improving the presentation of net periodic pension cost and net periodic 37 postretirement benefit cost.