Slide 1: Q2 FY2025 Financial Results
Q2 FY2025 Financial Results February 7, 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 Q2 FY2025 Highlights
OPERATIONAL CASH FLOW: Generated $9.4 million in Q2 • YTD cash from operations of $20.8 million REVENUE GROWTH: up $11.4 million to $129.9 million • Driven by increased customer demand for higher value products STRATTEC • Boosted by successful new program launches Q2 FY2025 PROFITABILITY: Delivered
Slide 4: Advancing Strategic Priorities
Advancing Strategic Priorities DRIVING TO OPERATIONAL EXCELLENCE CREATING REVENUE OPPORTUNITIES Restructured U.S manufacturing operations Identifying opportunities for new projects and pricing • Reduced from 3 to 2 shifts • Recently captured $8 million in annualized pricing • $1.2 million in annuali
Slide 5: Q2 FY25 Sales Increased 9.6% Y/Y
Q2 FY25 Sales Increased 9.6% Y/Y ($ in millions; narrative compared with prior-year period unless otherwise noted) Q2 FY25 SALES BY CUSTOMER NET SALES Q2 FY25 SALES BY PRODUCT Above market growth driven by new product launches, customer production plans, and higher value content $129.9 11% 2% Door H
Slide 6: Higher Gross Profit and Margin Expansion
Higher Gross Profit and Margin Expansion ($ in millions; narrative compared with prior-year period unless otherwise noted) GROSS PROFIT & MARGIN (QTR) Gross margin expanded 180 basis points in Q2 + Stronger US dollar $17.2 • $3.5 million, or 270 bps, FX benefit associated with our Mexico operations
Slide 7: Strengthening Operations for Efficiency
Strengthening Operations for Efficiency ($ in millions; narrative compared with prior-year period unless otherwise noted) ES&A(1) & MARGIN (QTR) Increase in ES&A reflects transformation costs and investments in human capital $15.0 • Up $1.6 million to 11.6% of sales $13.4 • $0.8 million annual bonus
Slide 8: Enhanced Earnings Power
Enhanced Earnings Power ($ 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) Q2 FY25 Net Income(1) up 29% $1.3 $2.6 $8.0 Q2 FY25 Adj. EPS(2) grew 81% $1.0 to $0.65 $
Slide 9: Strong Cash Generation
Strong Cash Generation ($ in millions; narrative compared with prior-year period unless otherwise noted) CAPITALIZATION $12.5 million increase in operating cash flow December 29, June 30, • Improved operating performance 2024 2024 • Working capital efficiency improvements, primarily pre- Cash and ca
Slide 10: Supplemental Slides
Q2 FY2025 Financial Results Supplemental Slides www.strattec.com
Slide 11: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 11
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 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 $ - $ - $ 5,022 Adjustments: Restru
Slide 13: Q2 FY2025 Financial Results
Q2 FY2025 Financial Results February 7, 2025 Nasdaq: STRT Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716-843-3908 dpawlowski@Allianceadvisors.com www.strattec.com