Strattec Security Corporation · NASDAQ:STRT

Strattec Security — Sidoti Small Cap Conference September 2024

19 slides from Strattec Security's conference presentation, Sep 18, 2024

  1. Slide 1: Sidoti Small Cap Conference September 18, 2024

    Sidoti Small Cap Conference September 18, 2024 Jennifer Slater President and CEO Dennis Bowe Vice President and Chief Financial Officer www.strattec.com Nasdaq: STRT Exhibit 99.1

  2. Slide 2: Forward-looking statements

    Certain statements contained in these slides 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 “anticipate,” “believe,” “could,” “expect,” “intend,

  3. Slide 3: A market leader in Smart Vehicle Power Access and Security Solutions

    A market leader of a comprehensive range of "Smart" Vehicle Power Access and Electronic and Security Solutions, serving the global automotive industry Nasdaq: STRT Founded: 1908 Public: 1995 Employees: 3,365 Headquarters: Milwaukee, WI Facilities: 7 Key Concepts Market Capitalization: $154M Recent C

  4. Slide 4: Shaping the Future: Key Recent Changes

    Refreshed Board, improved governance, new CEO and defining what the future can become Shaping the Future: Key Recent Changes June 2023 VAST Equity Restructuring Oct 2023 Refreshed Board: Bruce M. Lisman and F. Jack Liebau, Jr. added as directors Jan 2024 F. Jack Liebau, Jr. appointed Chair of the Bo

  5. Slide 5: Reasons for joining STRT

    Reasons for joining STRT Excellent Board leadership and strengthened governance Untapped potential provides opportunities to drive growth and earnings power Strong balance sheet Strong legacy in the automotive industry Solid business with reputation of innovation and strong market positions with bro

  6. Slide 6: Setting the Course for the Future

    Develop a culture of accountability and predictable performance Focus on high value, sustainable products Continue to optimize our cost structure Define key competencies to drive future growth organically Prioritize resources to sustain the future growth of the business Develop strategic plan to tra

  7. Slide 7: STRT Today

    STRT Today Core Capabilities Design and Engineering Injection Molding Zinc Die Cast Stamping Plating Assembly Milwaukee, WI STRATTEC Headquarters Manufacturing Engineering Testing Auburn Hills, MI STRATTEC Power Access HQ STRATTEC Sales Office Engineering Program Management Mexico Operations, Juarez

  8. Slide 8: Broad Product Portfolio

    Broad Product Portfolio NFC WEARABLE PHONE AS A ELECTRONIC & KEY CARDS KEY SYSTEM SECURITY & ACCESS | a A Ow, é* G: KEY FOBS Hiatt ACTUATORS CHARGING PORT DOOR a x \ POWER LIFTGATE a® PRND (& TAILGATE) WINDOW POWER ae LATCHES MODULE RUNNING STEERING BOARD WHEEL SWITCH Pecans SLIDING DOOR

  9. Slide 9: Three Core Platform Solutions

    Three Core Platform Solutions Power Access Solutions Tailgates and liftgate Sliding and swing doors Decklid and frunk Vehicle Access Latches Tailgates and liftgate Hood and frunk Seat back Power Access Components User Interface Controls Steering Wheel Switches Electronic Shifter Modules Transmission

  10. Slide 10: Financial Highlights

    Financial Highlights www.strattec.com

  11. Slide 11: Pricing and New Products Delivered Sales Growth

    Q4 FY24 $6.9 million of price increases to major OEM customers $3.9 million, or 3% increase, associated with the launch of new product programs Other Price Increases by Quarter (includes one time and ongoing) Q1 FY24: +$10.8 million, incl. $8.0 million one time Q2 FY24: +$8.1 million, incl. $1.6 mil

  12. Slide 12: Gross Profit and Margin

    Q4 FY24 $6.3 million, or 370 bps, improvement Price improvement Higher volume Lower raw material costs Offsets included increases related to: $2.1 million in Mexico for wages (mandatory increase) $1.7 million incentive comp $1.1 million in warranty costs $1.0 million in freight for new programs $0.7

  13. Slide 13: Engineering, Selling & Admin Expenses

    Q4 FY24 ES&A as % of sales improved 220 bps to 6.2% of sales Includes benefit of $3.2 million in incremental non-recurring engineering (“NRE”) reimbursement related to large project Offset by $1.1 million increasing annual incentive bonus plan FY 2024 Improved $0.5 million $3.2 million incremental N

  14. Slide 14: Net Income and EPS

    $1.79 ($1.70) $4.07 Net Income and EPS Quarters Years ($ in millions except earnings per share data; narrative compared with prior-year period unless otherwise noted) ($0.69) $1.05 $0.26 $0.37 $2.39 Earnings per Share - Diluted Earnings per Share - Diluted Q4 FY24 Incremental non-recurring engineeri

  15. Slide 15: Strong Balance Sheet with Improved Cash Flow

    Financial flexibility $25.4 million in cash $40 million revolver with no borrowings $13 million on JV revolver at ~6.8% in 2024 (ADAC-STRATTEC) $2.2 million increase in operating cash flow Improved operating performance Lower net working capital FY 2025 CapEx expectations ~$15 million Supports new p

  16. Slide 16: STRATTEC Investment Rationale

    Strengthened governance and leadership focused on modernizing operations, upgrading IT systems and developing a strategy to drive growth Solid business with reputation of innovation and strong market positions with broad customer base Relevant engineered technologies designed into several leading ve

  17. Slide 17: Investor Relations Contact

    Sidoti Small Cap Conference September 18, 2024 www.strattec.com Nasdaq: STRT Investor Relations Contact: Deborah K. Pawlowski, Kei Advisors | An Alliance Advisors Company 716-843-3908 dpawlowski@keiadvisors.com

  18. Slide 18: Leadership Team

    Leadership Team Jennifer L. Slater President and Chief Executive Officer Dennis P. Bowe Vice President Chief Financial Officer Rolando J. Guillot Senior Vice President Chief Operations Officers Richard P. Messina Vice President Chief Technology Officer

  19. Slide 19: Customers

    Customers OEM Manufacturers - Passenger Vehicles OEM Manufacturers - Commercial Vehicles Tier 1 System Suppliers

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