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 4, 2021

KIMBALL INTERNATIONAL, INC.

________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Indiana	0-3279	35-0514506
(State or other jurisdiction of	(Commission File	(IRS Employer Identification No.)
incorporation)	Number)

1600 Royal Street, Jasper, Indiana	47546-2256
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code  (812) 482-1600

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):

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class	Trading Symbol(s)	Name of each exchange on which registered
Class B Common Stock, par value $0.05 per share	KBAL	The NASDAQ Stock Market LLC

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

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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Item 2.02 Results of Operations and Financial Condition

On November 4, 2021, Kimball International, Inc. (the "Company") issued an earnings release for the quarter ended September 30, 2021.  The earnings release is attached as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure

Attached hereto as Exhibit 99.2 is an investor presentation that supplements the information to be discussed on the Kimball International, Inc. earnings call to be held on November 4, 2021 at 5:00 p.m. Eastern Time. The presentation attached as Exhibit 99.2 is incorporated into this Item 7.01 by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit
Number	Description
99.1	Q1 FY22 Earnings Press Release furnished on November 4, 2021
99.2	Q1 FY22 Quarterly Earnings and Earnings and Strategic Update
104	Cover Page interactive data file (embedded within the Inline XBRL document)

The information in this Current Report on Form 8-K set forth in Item 2.02, Item 7.01, and Exhibits 99.1 and 99.2, is being furnished in accordance with the provisions of General Instruction B.2 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, that is being furnished under Item 2.02 and Item 7.01 shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.

2

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 INTERNATIONAL, INC.
By:	/s/ Timothy J. Wolfe
	TIMOTHY J. WOLFE Chief Financial Officer

Date: November 4, 2021

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EX-99.1

Exhibit 99.1

KIMBALL INTERNATIONAL, INC. REPORTS FIRST QUARTER 2022 RESULTS

— Workplace and Health Achieved Net Sales and Order Growth of 16% and 51%

and Represented 86% of Total Net Sales —

— Poppin Business Model Returning to Near Pre-Pandemic Levels —

—Reiterates FY 2022 Guidance for 15%-20% Revenue Growth and Gross Margin Expansion

in the Second Half of the Year —

JASPER, IN (November 4, 2021) - Kimball International, Inc. (NASDAQ: KBAL) today announced results for the first quarter ended September 30, 2021.

Selected Financial Highlights:

First Quarter FY 2022

•Net sales of $156.6 million

•Gross margin was 31.3%

•Net loss of $5.0 million; Adjusted net income was $0.8 million

•Diluted EPS of $(0.14); Adjusted diluted EPS was $0.02

•Adjusted EBITDA of $4.9 million

•Backlog of $170.8 million

Management Commentary

CEO Kristie Juster commented, “First quarter demand trends were in line with our expectations, reflecting the recovery in our business that we signaled at the end of last fiscal year. Kimball International’s revenue performance, together with robust order rates underscores our differentiated market positioning and supports our guidance for strong double-digit revenue growth and improving gross margin in the second half of fiscal 2022.

“Sales in our Workplace and Health markets accounted for 86% of first quarter revenues and increased 16% in the aggregate, with growth across most verticals. We were particularly pleased with the contribution from our Poppin acquisition, where sales increased 22% sequentially from fourth quarter fiscal 2021 levels and are on track to exceed pre-pandemic levels by the end of this fiscal year. Importantly, approximately 60% of Poppin’s first quarter revenue was generated through the core B2B channel, which is an indication of strength in its historical business model.

“We continue to benefit from our broad portfolio of ancillary products, which accounted for 85% of revenues in Workplace and Health over the trailing 12 months, and our geographic positioning in secondary markets from which we derived 78% of our revenue over the same period. New product introductions also continued to drive revenue growth in our Workplace and Health markets and accounted for 25% of first quarter revenues, demonstrating how well Kimball International’s designs address changing dynamics within our key verticals. This strong showing from the major portion of our business was achieved within the constraints of the widely publicized supply chain disruptions that have delayed shipments across the U.S. Despite these challenges and inflationary pressures, we succeeded in expanding gross margin by 70 basis points on a sequential basis, reflecting benefits from the March 2021 price increase and higher production efficiencies.

“Robust order growth in the first quarter was broad-based, with strong year-on-year increases across all Workplace and Health verticals, and the highest order level in our Hospitality market in a year. These trends are consistent with our strategy of capturing growth in the Health market as it ramps post-COVID, pivoting to more customized projects in the Hospitality market, and gaining traction in Workplace by expanding our offerings with products and solutions that provide flexibility and adaptability. The Poppin order acceleration is aided by growth in core markets, success of Poppin Pro and strong demand for our new categories of Pods and Spaces.”

Overview

First Quarter Fiscal 2022 Results

Consolidated net sales increased 6% to $156.6 million, compared to the prior year first quarter. Organic net sales were $141.4 million. Double-digit sales growth in Workplace and Health was offset in part by the year-over-year decline in Hospitality sales. We also experienced some pull forward of orders ahead of our announced price increase. Gross margin of 31.3% declined 410 basis points from 35.4% in the year ago quarter. Positive margin impact from our price increases and manufacturing efficiencies were more than offset by raw material inflationary pressures, increased freight and higher labor costs. We anticipate gross margin improvement in the second half of the fiscal year as our pricing actions and cost savings initiatives begin to catch up with inflationary pressures. Selling and administrative expenses (S&A) of $50.2 million increased $8.5 million compared to the prior year primarily related to the Poppin acquisition and investments to accelerate future sales growth. Adjusted S&A was $48.6 million or 31.1% of net sales, compared to $40.8 million or 27.6% of net sales in last year’s first quarter. Net loss was $5.0 million, or $(0.14) per diluted share, inclusive of a non-cash after-tax contingent earn-out charge of $3.4 million, intangible amortization expense and restructuring charges. In last year’s first quarter, the company reported earnings per diluted share of $0.14. For the current quarter, adjusted net income and adjusted earnings per share were $0.8 million, and $0.02 per diluted share, respectively. Adjusted EBITDA for the quarter was $4.9 million compared to $15.8 million in the year ago quarter.

The Company ended the first quarter in a strong financial position, with $111.2 million in short-term liquidity available, which includes cash, and cash equivalents, plus the unused amount of our credit facility.

Net Sales by End Market
	Three Months Ended
(Unaudited)	September 30,
(Amounts in Millions)	2021		2020		% Change
Workplace	$	110.6	$	95.3	16	%
Health	24.3		20.6		18	%
Hospitality	21.7		32.0		(32	%)
Total Net Sales	$	156.6	$	147.9	6	%

Summary and Outlook

First quarter results and order trends, together with market research data confirm that our Workplace and Health markets are firmly in a recovery phase. Kimball International continues to build momentum with its innovative products and an integrated go-to-market strategy that enables us to offer more design possibilities than ever before.

“We reaffirm our guidance for revenues to increase 15% to 20% for the full year, with the most significant growth occurring in the second half of the year. While demand for our products remains strong, continued supply chain and labor issues have constrained our near-term ability to produce and ship, which has extended our lead times. Similarly, we believe gross margin expansion will also take place in the second half of the fiscal year, benefiting from higher volumes, a second price increase and ongoing efficiency projects. At the same time, we are projecting higher S&A spending than in fiscal 2021 to drive future growth as we continue to invest in building our sales force, marketing and promotional campaigns, and the opening of new Poppin showrooms in Miami, Austin and Atlanta during fiscal 2022.

“The Company’s second quarter guidance, as detailed below, contemplates continued supply chain constraints, as well as the potential for temporary operational challenges related to complying with the vaccine mandate for government suppliers.

Second Quarter FY 2022 Guidance Ranges
	Low	High
Revenue growth (year-over-year)	10%	15%
Gross margin	32%	33%
S&A	$51 million	$53 million

“Kimball International continues to be at the forefront of research into emerging workplace trends. In partnership with Ipsos, a global leader in market research, Kimball International gathered insights to learn about the future of workspaces. These findings have directly impacted the products and spaces highlighted in each showroom, and have guided the expansion of our product portfolio, including our new modular architectural workplace solution called EverySpace. It is an extensive platform of flexible work environments for open plan workstations, private offices and collaborative spaces. We were excited to launch, EverySpace along with 21 other new product introductions at our National Sales Meeting in September and Neocon in October.

“Over the past several months, we have been encouraged by the increased level of new project opportunities along with overall demand, and as we navigate this challenging environment, I want to recognize and thank our employees for their hard work and continued focus on serving our customers.” Ms. Juster concluded.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company’s financial performance that excludes 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 statements of income, statements of comprehensive income, balance sheets, or statements of cash flows of the Company. The non-GAAP financial measures used within this release are (1) organic net sales, defined as net sales excluding acquisition-related net sales; (2) adjusted selling and administrative expense; (3) adjusted EBITDA; (4) adjusted operating income; (5) adjusted net income; and (6) adjusted diluted earnings per share. Adjusted operating income, adjusted net income, and adjusted diluted earnings per share each exclude restructuring expense, CEO transition costs, acquisition-related amortization and inventory valuation adjustments, contingent earn-out adjustments related to the acquisition, and statutory income tax impacts for after-tax measures, from the GAAP income measure. Adjusted selling and administrative expense excludes market value adjustments related to the SERP liability, CEO transition costs, and acquisition-related amortization from the GAAP income measure. Additionally, adjusted operating income excludes market value adjustments related to the SERP liability. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation expense, amortization expense, restructuring expense, CEO transition costs, acquisition-related inventory valuation adjustments, and contingent earn-out adjustments related to the acquisition. A reconciliation of the reported GAAP numbers to the non-GAAP financial measures is included in the Reconciliation of Non-GAAP Financial Measures table below. Management believes that Adjusted EBITDA and other metrics excluding restructuring expense, CEO transition expenses, market value adjustments related to the SERP liability, and acquisition-related adjustments are useful measurements to assist investors in comparing our performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect our core operating performance.

The orders received metric is a key performance indicator used to evaluate general sales trends and develop future operating plans. Orders received represent firm orders placed by our customers during the current quarter which are expected to be recognized as revenue during current or future quarters. The orders received metric is not intended to be presented as an alternative measure of revenue recognized in accordance with GAAP.

Forward-Looking Statements

This document may contain certain forward-looking statements about the Company, such as discussions of Company’s pricing trends, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements generally can be identified by the use of words or phrases, including, but not limited to, “intend,” “anticipate,” “believe,” “estimate,” “project,” “target,” “plan,” “expect,” “setting up,” “beginning to,” “will,” “should,” “would,” “resume” or similar statements. We caution that forward-looking statements are subject to known and unknown risks and uncertainties that may cause the Company’s actual future results and performance to differ materially from expected results including, but not limited to, the possibility that any of the anticipated benefits of the transaction between the Company and Poppin will not be realized or will not be realized within the expected time period; the risk that integration of the operations of Poppin with the Company will be materially delayed or will be more costly or difficult than expected; the effect of the announcement of the Poppin transaction, including on customer relationships and operating results; the risk that any projections or guidance by the Company, including revenues, margins, earnings, or any other financial results are not realized; adverse changes in global economic conditions; successful execution of Phase 2 of the Company restructuring plan; the impact on the Company of changes in tariffs; increased global competition; significant reduction in customer order patterns; loss of key suppliers; loss of or significant volume reductions from key contract customers; financial stability of key customers and suppliers; relationships with strategic customers and product distributors; availability or cost of raw materials, components and freight; changes in the regulatory environment; global health concerns (including the impact of the COVID-19 outbreak); or similar unforeseen events. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company’s Form 10-K filing for the fiscal year ended June 30, 2021 and other filings with the Securities and Exchange Commission.

Conference Call / Webcast
Date:	November 4, 2021
Time:	5:00 PM Eastern Time
Dial-In #:	1 800-773-2954 (International Calls - 1 847-413-3731)
Pass Code:	50245049

A webcast of the live conference call may be accessed by visiting Kimball International’s Investor Relations website at www.ir.kimballinternational.com.

For those unable to participate in the live webcast, the call will be archived at www.ir.kimballinternational.com within two hours of the conclusion of the live call.

About Kimball International, Inc.

Kimball International is a leading omnichannel commercial furnishings company with deep expertise in the Workplace, Health and Hospitality markets. We combine our bold entrepreneurial spirit, a history of craftsmanship and today’s design-driven thinking alongside a commitment to our culture of caring and lasting connections with our customers, shareholders, employees and communities.

For over 70 years, our brands have seized opportunities to customize solutions into personalized experiences, turning ordinary spaces into meaningful places. Our family of brands includes Kimball, National, Etc., Interwoven, Kimball Hospitality, D’style and Poppin.

Kimball International is based in Jasper, Indiana.  

www.kimballinternational.com

Financial highlights for the first quarter ended September 30, 2021 are as follows:

Condensed Consolidated Statements of Income
(Unaudited)	Three Months Ended
(Amounts in Thousands, except per share data)	September 30, 2021				September 30, 2020
Net Sales	$	156,610	100.0	%	$	147,944	100.0	%
Cost of Sales	107,513		68.7	%	95,586		64.6	%
Gross Profit	49,097		31.3	%	52,358		35.4	%
Selling and Administrative Expenses	50,159		32.1	%	41,689		28.2	%
Contingent Earn-Out Loss	4,610		2.9	%	0		0.0	%
Restructuring Expense	1,455		0.9	%	4,240		2.9	%
Operating Income (Loss)	(7,127)		(4.6	%)	6,429		4.3	%
Other Income (Expense), net	(434)		(0.2	%)	817		0.6	%
Income (Loss) Before Taxes on Income	(7,561)		(4.8	%)	7,246		4.9	%
Provision (Benefit) for Income Taxes	(2,512)		(1.6	%)	1,860		1.3	%
Net Income (Loss)	$	(5,049)	(3.2	%)	$	5,386	3.6	%
Earnings (Loss) Per Share of Common Stock:
Basic	$	(0.14)			$	0.15
Diluted	$	(0.14)			$	0.14
Average Number of Total Shares Outstanding:
Basic	36,821				36,974
Diluted	36,821				37,220

	(Unaudited)
Condensed Consolidated Balance Sheets	September 30, 2021		June 30, 2021
(Amounts in Thousands)
ASSETS
Cash and cash equivalents	$	27,864	$	24,336
Receivables, net	53,843		58,708
Inventories	59,234		54,291
Prepaid expenses and other current assets	23,906		22,012
Property and Equipment, net	88,507		90,623
Right of use operating lease assets	12,907		14,654
Goodwill	81,962		81,962
Other Intangible Assets, net	62,950		64,478
Deferred Tax Assets	15,440		16,368
Other Assets	16,514		17,163
Total Assets	$	443,127	$	444,595
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current maturities of long-term debt	33		30
Accounts payable	48,183		41,537
Customer deposits	27,169		24,438
Current portion of operating lease liability	6,327		6,590
Dividends payable	3,587		3,532
Short-term earn-out liability	10,680		0
Accrued expenses	34,754		39,115
Long-term debt, less current maturities	40,046		40,079
Long-term operating lease liability	11,305		12,536
Long-term earn-out liability	14,120		20,190
Other	16,404		16,878
Shareholders’ Equity	230,519		239,670
Total Liabilities and Shareholders’ Equity	$	443,127	$	444,595

Condensed Consolidated Statements of Cash Flows	Three Months Ended
(Unaudited)	September 30,
(Amounts in Thousands)	2021		2020
Net Cash Flow provided by Operating Activities	$	11,905	$	26,959
Net Cash Flow used for Investing Activities	(3,592)		(12,248)
Net Cash Flow used for Financing Activities	(5,085)		(3,578)
Net Increase in Cash, Cash Equivalents, and Restricted Cash	3,228		11,133
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	25,727		92,444
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	28,955	$	103,577

Orders Received by End Market
	Three Months Ended
(Unaudited)	September 30,
(Amounts in Millions)	2021		2020		% Change
Workplace *	$	124.7	$	79.5	57	%
Health	28.9		22.3		30	%
Hospitality	33.0		38.1		(13	%)
Total Orders	$	186.6	$	139.9	33	%

* Workplace end market includes education, government, commercial, and financial vertical markets and eBusiness

Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Amounts in Thousands, except per share data)
Organic Net Sales
	Three Months Ended
	September 30,
	2021
Net Sales, as reported	$	156,610
Less: Poppin acquisition net sales	15,224
Organic Net Sales	$	141,386

Adjusted Selling and Administrative Expense
	Three Months Ended
	September 30,
	2021			2020
Selling and Administrative Expense, as reported	$	50,159		$	41,689
Less: Pre-tax Expense Adjustment to SERP Liability	93			(758)
Less: Pre-tax CEO Transition Costs	0			(141)
Less: Pre-tax Acquisition-related Amortization	(1,609)			0
Adjusted Selling and Administrative Expense	$	48,643		$	40,790
Adjusted Selling and Administrative Expense %	31.1		%	27.6		%

Adjusted Operating Income
	Three Months Ended
	September 30,
	2021			2020
Operating Income (Loss), as reported	$	(7,127)		$	6,429
Add: Pre-tax Restructuring Expense	1,455			4,240
Add: Pre-tax Expense Adjustment to SERP Liability	(93)			758
Add: Pre-tax CEO Transition Costs	0			141
Add: Pre-tax Acquisition-related Amortization	1,609			0
Add: Pre-tax Acquisition-related Inventory Valuation Adjustment	143			0
Add: Contingent Earn-Out Loss	4,610			0
Adjusted Operating Income	$	597		$	11,568
Adjusted Operating Income %	0.4		%	7.8		%
Adjusted Net Income
	Three Months Ended
	September 30,
	2021			2020
Net Income (Loss), as reported	$	(5,049)		$	5,386
Pre-tax Restructuring Expense	1,455			4,240
Tax on Restructuring Expense	(375)			(1,092)
Add: After-tax Restructuring Expense	1,080			3,148
Pre-tax CEO Transition Costs	0			141
Tax on CEO Transition Costs	0			(36)
Add: After-tax CEO Transition Costs	0			105
Pre-tax Acquisition-related Amortization	1,609			0
Tax on Acquisition-related Amortization	(414)			0
Add: After-tax Acquisition-related Amortization	1,195			0
Pre-tax Acquisition-related Inventory Valuation Adjustment	143			0
Tax on Acquisition-related Inventory Valuation Adjustment	(37)			0
Add: After-tax Acquisition-related Inventory Adjustment	106			0
Pre-tax Contingent Earn-Out Loss	4,610			0
Tax on Contingent Earn-Out Loss	(1,187)			0
Add: After-tax Contingent Earn-Out Loss	3,423			0
Adjusted Net Income	$	755		$	8,639
Adjusted Diluted Earnings Per Share
	Three Months Ended
	September 30,
	2021			2020
Diluted Earnings (Loss) Per Share, as reported	$	(0.14)		$	0.14
Add: After-tax Restructuring Expense	0.03			0.09
Add: After-tax Acquisition-related Amortization	0.03			0.00
Add: After-tax Acquisition-related Inventory Valuation Adjustment	0.01			0.00
Add: After-tax Contingent Earn-Out Loss	0.09			0.00
Adjusted Diluted Earnings Per Share	$	0.02		$	0.23

Adjusted EBITDA
	Three Months Ended
	September 30,
	2021			2020
Net Income (Loss)	$	(5,049)		$	5,386
Provision (Benefit) for Income Taxes	(2,512)			1,860
Income (Loss) Before Taxes on Income	(7,561)			7,246
Interest Expense	257			28
Interest Income	(9)			(102)
Depreciation	3,562			3,592
Amortization	2,439			653
Pre-tax Restructuring Expense	1,455			4,240
Pre-tax CEO Transition Costs	0			141
Pre-tax Acquisition-related Inventory Valuation Adjustment	143			0
Pre-tax Contingent Earn-Out Loss	4,610			0
Adjusted EBITDA	$	4,896		$	15,798
Adjusted EBITDA %	3.1		%	10.7		%

Supplementary Information
Components of Other Income (Expense), net	Three Months Ended
(Unaudited)	September 30,
(Amounts in Thousands)	2021		2020
Interest Income	$	9	$	102
Interest Expense	(257)		(28)
Gain (Loss) on Supplemental Employee Retirement Plan Investments	(93)		758
Other Non-Operating Expense	(93)		(15)
Other Income (Expense), net	$	(434)	$	817

EX-99.2

Q1 FY ‘22 Quarterly Earnings & Strategic Update

This document may contain certain forward-looking statements about the Company, such as discussions of Company’s pricing trends, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. The Company intends such forward- looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements generally can be identified by the use of words or phrases, including, but not limited to, “intend,” “anticipate,” “believe,” “estimate,” “project,” “target,” “plan,” “expect,” “setting up,” “beginning to,” “will,” “should,” “would,” “resume” or similar statements. We caution that forward-looking statements are subject to known and unknown risks and uncertainties that may cause the Company’s actual future results and performance to differ materially from expected results including, but not limited to, the possibility that any of the anticipated benefits of the transaction between the Company and Poppin will not be realized or will not be realized within the expected time period; the risk that integration of the operations of Poppin with the Company will be materially delayed or will be more costly or difficult than expected; the risk that any projections or guidance by the Company, including revenues, margins, earnings, or any other financial results are not realized; a shortage of manufacturing labor and related cost; disruptions in our supply chain and freight channels including impacts on cost and availability; adverse changes in global economic conditions; successful execution of the second phase of the Company’s restructuring plan; increased global competition; significant reduction in customer order patterns; loss of key suppliers; loss of or significant volume reductions from key contract customers; financial stability of key customers and suppliers; relationships with strategic customers and product distributors; availability or cost of raw materials, components and freight; changes in the regulatory environment; global health concerns (including the impact of the COVID-19 outbreak); onerous COVID-19 vaccine mandates or testing requirements; or similar unforeseen events. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company’s Form 10-K filing for the fiscal year ended June 30, 2021 and other filings with the Securities and Exchange Commission. Safe Harbor Statement 2

Strong demand across Workplace and Health end markets, together accounting for 86% of net sales Ancillary products expertise and positioning in secondary markets aid share gains Poppin ramping quickly, with sales up 22% sequentially and orders up 32% Anticipate challenging business conditions to improve in 2H FY’22 Key Takeaways 3

Workplace • Workplace sales increased 16% year-over-year, with orders up 57% • Broad-based order growth, across most key verticals • Recovery of the Poppin business model to near pre- pandemic levels 4

Health • Net sales increased 18% year-over-year, with orders up 30% • Delivery of care has shifted due to COVID; seeing growth in Specialty Centers and Outpatient Clinics • Secular trends underscore the long- term growth potential for this market Health 5

Looking Ahead Expanding strong relationships in secondary markets with three new Poppin showrooms Expertise in ancillary products, aligned with customer demand; 85% of trailing 12-month revenues Introduced Perfect Harmony, a go-to-market strategy for 5 Workplace and Health brands Identified 6 space types defining the post-pandemic workplace Launched 22 new products, including EverySpace to address constantly changing customer needs 6

$156.6M REVENUE $141.4M ORGANIC REVENUE 2 31.3% GROSS MARGIN $50.2M S&A 1 Unaudited. 2 See Appendix for Non-GAAP reconciliations. Q1 FY ‘22 Financial Highlights1 7

$(5.0)M $0.02 ADJUSTED EPS2 $4.9M ADJUSTED EBITDA2 $(0.14) 1 Unaudited. 2 See Appendix for Non-GAAP reconciliations. EPSNET LOSSQ1 FY ‘22 Financial Highlights1 (Continued) 8

Year-over-year Quarter Comparison Q1 ’22 vs. Q1 ’21 (in millions) Workplace end market includes commercial, educational, government and financial verticals and eBusiness 1 Unaudited. $95.3 $79.5 $110.6 $124.7 Net Sales Orders Q1 FY21 Q1 FY22 +16% Workplace $20.6 $22.3 $24.3 $28.9 Net Sales Orders Q1 FY21 Q1 FY22 Health $32.0 $38.1 $21.7 $33.0 Net Sales Orders Q1 FY21 Q1 FY22 Hospitality -32% +57% +18% +30% -13% Quarterly Sales and Orders by Market1 9

$111.2M CASH, CASH EQUIVALENTS, PLUS THE UNUSED AMOUNT OF OUR CREDIT FACILITY $11.9M CASH PROVIDED BY OPERATIONS $3.8M CAPEX $1.5M SHARE REPURCHASES $3.3M DIVIDENDS 1 Unaudited. Q1 FY ‘22 Liquidity and Capital Allocation1 10

Revenue growth ~15-20%, back half weighted with corresponding gross margin improvement CAPEX: $25 million, net of disposals Cost savings: $10 million S&A: Above FY 2021 levels Full Year ‘22 Guidance Tax rate: 25%-27% 11

Revenue growth: 10% to 15% year-over-year Gross margin: 32% to 33% S&A: $51 million to $53 million Q2 FY ‘22 Guidance 12

Transformed our go-to-market approach New product portfolio aligned with customer needs in Workplace and Health Re-affirming our full year growth projections Navigating effectively through the COVID impacts and managing through current headwinds Wrap-up 13

Our Vision for Impact Environmental, Social and Governance (ESG) Roadmap Kimball International is dedicated to building a more sustainable future and making a difference in our communities through five important focus areas. Environmental Management & Sustainable Products Integrate sustainability into the development of our products and their lifecycle through environmentally responsible business practices, helping our customers achieve their own sustainability objectives Human Capital Management: Talent Development Invest in our employees’ growth & development through leadership development programs, learning opportunities, tuition reimbursement Diversity, Equity, Inclusion & Belonging Promote a work environment in which each employee feels valued and respected through initiatives that foster greater diversity and inclusivity Product Quality and Safety Safeguard the health & safety of our customers, manufacturing employees and the environment through a robust set of systems and procedures Responsible Supply Chain Management Use materials obtained from environmentally and socially responsible sources while partnering with businesses committed to the highest ethical standards 14

APPENDIX 15

16 Non-GAAP Reconciliation (Unaudited) A P P E N D I X 16

XML

Cover	Nov. 04, 2021
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Nov. 04, 2021
Entity Registrant Name	KIMBALL INTERNATIONAL, INC.
Entity Incorporation, State or Country Code	IN
Entity File Number	0-3279
Entity Tax Identification Number	35-0514506
Entity Address, Address Line One	1600 Royal Street
Entity Address, City or Town	Jasper
Entity Address, State or Province	IN
City Area Code	812
Local Phone Number	482-1600
Entity Address, Postal Zip Code	47546-2256
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class B Common Stock, par value $0.05 per share
Trading Symbol	KBAL
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0000055772
Amendment Flag	false