Slide 1: LD Micro Invitational XV
LD Micro Invitational XV April 10, 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: 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: $171M Recent Closing Price: $39.48 52-week High/Low: $51.
Slide 4: Three Platform Solutions
Three 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 lif
Slide 5: Leading Capabilities & Low-cost Manufacturing
Leading Capabilities & Low-cost Manufacturing Q2 FY25 TTM REVENUE: $548.8M 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 • Reinvigorating talent to affect change • Introducing a performance culture to instill accountability, ownership and urgency • Driving process improvement to drive margin expansion • Rationalizing footprint and reducing headcount to simplify organization • Evaluating product p
Slide 7: Bringing on New Talent to Accelerate Change
Bringing on New Talent to Accelerate Change Matthew Pauli Chey Becker-Varto Linda Redmann SVP, Chief Financial Officer Chief Commercial Officer Chief People Officer 7
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 Managing through the tariff turmoil 9
Slide 10: Gears in Motion: Financial Priorities
Gears in Motion: Financial Priorities Drive working capital velocity and B/S strength Establish processes for reporting and analysis Integrate SaaS into financial reporting processes Drive operating leverage Manage JV to strengthen performance Execute on tariff mitigation plans 10
Slide 11: STRATTEC Q2 FY2025 Highlights
OPERATIONAL CASH FLOW: Generated $9.4 million in Q2 • YTD cash from operations of $20.8 million STRATTEC REVENUE GROWTH: up $11.4 million to $129.9 million • Driven by increased customer demand for higher value products Q2 FY2025 • Boosted by successful new program launches PROFITABILITY: Delivered
Slide 12: Q2 FY25 Sales Increased 9.6% Y/Y
Q2 FY25 Sales Increased 9.6% Y/Y ($ 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 $129.9 11% 2% Door H
Slide 13: Higher Gross Profit and Margin Expansion
Higher Gross Profit and Margin Expansion ($ in millions; narrative compared with prior-year period unless otherwise noted) GROSS PROFIT & MARGIN (QTR) Gross margin expanded 180 basis points in Q2 + Stronger US dollar $17.2 • $3.5 million, or 270 bps, FX benefit associated with our Mexico operations
Slide 14: Strengthening Operations for Efficiency
Strengthening Operations for Efficiency ($ 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 • $0.8 million annual bonus
Slide 15: Enhanced Earnings Power
Enhanced Earnings Power ($ 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) 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 16: 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 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: Investor Relations Contact
Nasdaq: STRT April 10, 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