Slide 1: Q3 FY2025 Financial Results Conference Call
Q3 FY2025 Financial Results Conference Call May 9, 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: 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 • Driven by strategic pricing actions & favorable product mix • Boosted by net new program launches STRATTEC PROFITABILITY: Delivered adj. EBITDA of $12.
Slide 4: Executing Transformation Amid Uncertainty
Executing Transformation Amid Uncertainty EXECUTING PLAN TO DELIVER VALUE MANAGING THROUGH TRADE UNCERTAINTY • Restructuring in Q3 FY25 expected to deliver ~$5M in • Excluding USMCA compliant sales, estimated annual annual savings tariff impact of $9M to $12M, before mitigation • 12% total headcount
Slide 5: Q3 FY25 Sales Increased 2.4% Y/Y
Q3 FY25 Sales Increased 2.4% Y/Y ($ 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 $144
Slide 6: Higher Gross Profit and Margin Expansion
Higher Gross Profit and Margin Expansion ($ 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 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 ~$30m • Uncertainty in potential changes in North of sales (6% of consolidated sales). American automotive production schedules • Total estima
Slide 8: Strengthening Operations for Efficiency
Strengthening Operations for Efficiency ($ 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 $3.3 million to 11.1% of sales
Slide 9: Enhanced Earnings Power
Enhanced Earnings Power ($ 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 $6.
Slide 10: Strong Cash Generation
Strong Cash Generation ($ in millions; narrative compared with prior-year period unless otherwise noted) CAPITALIZATION $21.0 million increase in operating cash flow • Improved operating performance March 30, December 29, 2024 2024 • Working capital efficiency improvements, including improvement in
Slide 11: Q3 FY2025 Financial Results Supplemental Slides
Q3 FY2025 Financial Results Supplemental Slides www.strattec.com
Slide 12: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Fiscal 2024 Fiscal 2025 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total ADJUSTED NET SALES: Net Sales (GAAP) 135,406 118,532 140,773 143,055 $ 537,766 139,052 129,919 144,082 - $ 413,053 Adjustments: - Retroactive FY23 one-time pricing recovery (7,950) (1,55
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Fiscal 2024 Fiscal 2025 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total ADJUSTED NET INCOME AND EARNINGS/(LOSS) PER SHARE: Net income attributable to STRATTEC (GAAP) $ 4,165 $ 1,022 $ 1,506 $ 9,620 $ 16,313 $ 3,703 $ 1,319 $ 5,396 $ - $ 10,418 Adjustments: R
Slide 14: Q3 FY2025 Financial Results
Q3 FY2025 Financial Results May 8, 2025 Nasdaq: STRT Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716-843-3908 dpawlowski@Allianceadvisors.com www.strattec.com