Strattec Security Corporation · NASDAQ:STRT
Strattec Security — East Coast IDEAS Conference 2025
21 slides from Strattec Security's conference presentation, Jun 11, 2025
Slide 1: East Coast IDEAS Conference
East Coast IDEAS Conference June 11, 2025 Nasdaq: STRT Jennifer Slater President and CEO Matthew Pauli Senior Vice President and CFO www.strattec.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Certain statements contained in this presentation contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “an
Slide 3: Leader in Delivering Innovative, Comprehensive Range of Solutions to the Automotive Industry
Leader in Delivering Innovative, Comprehensive Smart Vehicle Access, Security and Range of Solutions to the Automotive Industry Authorization Solutions Nasdaq: STRT Founded: 1908 Public: 1995 Headquarters: Milwaukee, WI Market Capitalization: $222M Recent Closing Price: $54.34 52-week High/Low: $56.
Slide 4: Platform Solutions
Platform Solutions SECURITY & AUTHORIZATION VEHICLE ACCESS SELECT USER INTERFACE CONTROLS Passive Entry Power Access Solutions Steering Wheel Passive Start Tailgates and liftgate Switches Systems Sliding and swing doors Decklid and frunk Locksets & Latches Key Fobs & Steering Tailgates and liftgate
Slide 5: Leading Capabilities & Low-cost Manufacturing
Leading Capabilities & Low-cost Manufacturing Q3 FY25 TTM REVENUE: $552.1M Milwaukee, WI • STRATTEC HQ Auburn Hills, MI TTM Sales By Customer • Sales • Sales • Engineering Com’l & • Engineering Other • Program Management • Testing OEMs • Prototype 12% • Manufacturing Tier 1 Development • Die cast •
Slide 6: Transforming STRATTEC
Transforming STRATTEC • Focus on talent to affect change and drive sustainable performance • Introducing a performance culture to instill accountability, ownership and urgency • Modernizing infrastructure and implementing best-in-class processes to improve execution and drive margin expansion • Driv
Slide 7: Manageable Tariff Exposure
Manageable Tariff Exposure TA R I F F I M PA C T Well positioned to manage dynamic Direct: Indirect: tariff environment. • Current incremental tariffs impact ~$30m • Uncertainty in potential changes in North of sales (6% of consolidated sales) American automotive production schedules • Total estimat
Slide 8: Making Rapid Progress…More to be Done
Making Rapid Progress…More to be Done Building the Team Driving to Operational Creating Revenue Developing Modernization • Investing in upgrading talent and Excellence Opportunities Plan enhanced leadership • Announced listing of Milwaukee • Captured $8 million in annualized • Upgrade equipment • Ad
Slide 9: Financial Review
Financial Review Progress demonstrated in margin expansion and cash generation 9
Slide 10: Gears in Motion: Financial Priorities
Gears in Motion: Financial Priorities Establish processes for reporting and analysis Drive operating leverage Drive working capital velocity and B/S strength Manage JV to strengthen performance Execute on tariff mitigation plans 10
Slide 11: STRATTEC Q3 FY2025 Highlights
OPERATIONAL CASH FLOW: Generated $20.7 million in Q3 • YTD cash from operations of $41.5 million REVENUE GROWTH: up $3.3 million to $144.1 million STRATTEC • Driven by increased price increases and favorable product mix • Boosted by successful new program launches Q3 FY2025 PROFITABILITY: Delivered
Slide 12: Q3 FY25 Sales Increased 2.4% Y/Y
Q3 FY25 Sales Increased 2.4% Y/Y ($ in millions; narrative compared with prior-year period unless otherwise noted) Q3 FY25 SALES BY CUSTOMER NET SALES GROWTH Q3 FY25 SALES BY PRODUCT Above market sales growth driven by strategic pricing actions, higher value content and net new program launches $144
Slide 13: Higher Gross Profit and Margin Expansion
Higher Gross Profit and Margin Expansion ($ in millions; narrative compared with prior-year period unless otherwise noted) GROSS PROFIT & MARGIN (QTR) Gross margin expanded 560 basis points in Q3 $23.1 + Stronger US dollar • $4.4 million, or 310 bps, FX benefit $14.7 • Current rate of ~20 MXN peso a
Slide 14: Strengthening Operations for Efficiency
Strengthening Operations for Efficiency ($ in millions; narrative compared with prior-year period unless otherwise noted) ES&A(1) | % OF SALES (QTR) Increase in ES&A(1) reflects business investment, transformation costs and investments in human capital $16.0 $12.7 • Up $3.3 million to 11.1% of sales
Slide 15: Enhanced Earnings Power
Enhanced Earnings Power ($ in millions except earnings per share data; narrative compared with prior-year period unless otherwise noted) NET INCOME(1) (QTR) ADJ. NET INCOME(2) (QTR) ADJ. EBITDA(2) & MARGIN (QTR) Q3 FY25 Net Income(1) up 258% $12.9 $5.4 $6.1 Q3 FY25 Adj. EPS(2) grew 305% to $1.50 $6.
Slide 16: Strong Cash Generation
Strong Cash Generation ($ in millions; narrative compared with prior-year period unless otherwise noted) CAPITALIZATION CASH CUSHION FOR UNCERTAIN TIMES March 30, December 29, ($ in millions) 2024 2024 • Improved operating performance and margin expansion driving cash flow Cash and cash equivalents
Slide 17: STRATTEC Investment Rationale
STRATTEC Investment Rationale Early stages of transformation to strengthen earnings power and competitive position Reimagining product portfolios to drive sustainable growth Improving operational efficiency to drive profits and consistency Developing team and talent to execute change Strong balance
Slide 18: Q&A
Q&A STRATTEC
Slide 19: June 11, 2025
Nasdaq: STRT June 11, 2025 Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716-843-3908 dpawlowski@allianceadvisors.com www.strattec.com 19
Slide 20: 2025 Vehicle List
2025 Vehicle List The following cars and light trucks will be equipped with STRATTEC components during our 2025 fiscal year Passenger Cars Acura ZDX (EV) Ford Focus Chevrolet Corvette Aston Martin Vantage * Aston Martin DBS * Volkswagen Jetta Chevrolet Malibu Cadillac CT5 * Aston Martin Valkyrie * A
Slide 21: Variety of Competitors Across Product Categories
STRATTEC Variety of Competitors Across Aisin Inteva Shinchang Industry Product Categories: Atech Motorsports Kiekert Stabilus Door Handles Brose Magna Tokai Rika Group Keys & Locksets Edscha Marquardt Group U-Shin Ltd. Power Access GECOM Corp Mitsuba Valeo User Interface Controls Honda Lock Novares