Slide 1: Q1 FY2025 Financial Results
Q1 FY2025 Financial Results November 4, 2024 Nasdaq: STRT Jennifer Slater President and CEO Dennis Bowe Vice President and Chief Financial Officer 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 Q1 FY2025 Highlights
STRATTEC Q1 FY2025 Highlights Strong cash generation of $11.3 million Included reduction in customer tooling balance Solid balance sheet $34.4 million in cash $13 million in JV debt (STRT 51% owner) Revenue up 2.7%, or 9.1% on adjusted net sales(1) Solid position on F-Series pickups New products and
Slide 4: Rethinking STRATTEC Priorities for Transformation
Rethinking STRATTEC Priorities for Transformation Reimagine product portfolio What do customers want What has defensible market position What delivers on profits What defines future product road map Improve operational efficiency Supply chain, inventory and operational process Optimizing operational
Slide 5: Customer Sales Changes
Customer Sales Changes Hyundai/Kia up $6.5 million due to timing of demand for power doors Ford up 19% on new tailgate latch content on Ford F-Series pickups Stellantis down $14.5 million: inventory destocking and lower production volumes ($ in millions; narrative compared with prior-year period unl
Slide 6: Q1 FY25 Gross Profit
9.1% 13.6% Q1 FY25 Gross Profit FX benefit of $2.7 million in Q1 2025 190 basis point benefit Also benefiting gross profit: Favorable sales mix $2.2 million of ongoing price increases $1.3 million reduction in material costs Offsets included higher: $1.4 million in Mexico manufacturing costs $0.7 mi
Slide 7: Engineering, Selling and Administrative Expense
($ in millions; narrative compared with prior-year period unless otherwise noted) (1) Engineering, selling and administrative expenses Q1 FY25 compared with Q1 FY24 Up $1.3 million to 10% of sales driven by: $0.8 million short-term incentive plan (PY period had no accrual for short-term incentive pl
Slide 8: Q1 FY25 Net Income and Adjusted Net Income
($ in millions except earnings per share data; narrative compared with prior-year period unless otherwise noted) $1.05 $0.92 Diluted Earnings per Share Q1 FY25 Net Income(1) Down $0.5 million $0.5 million of investment and other income, net, partially offset the $1.0 million decline in operating inc
Slide 9: Cash Flow and Financial Flexibility
$15.2 million increase in operating cash flow Improved operating performance Lower net working capital Financial flexibility $34.4 million in cash $40 million revolver with no borrowings $13 million on JV (ADAC-STRATTEC) revolver (at ~8.5% in 2024) FY 2025 CapEx expectations ~$15 million Supports ne
Slide 10: Q1 FY2025 Financial Results Supplemental Slides
Q1 FY2025 Financial Results Supplemental Slides www.strattec.com Nasdaq: STRT
Slide 11: Reconciliations of Net Sales, Gross Profit and Gross Margin to non-GAAP
Reconciliations of Net Sales, Gross Profit and Gross Margin to non-GAAP Reconciliation of Net Sales to Adjusted Net Sales ($ in thousands) Three Months Ended 9/29/2024 10/1/2023 Net sales (GAAP) $ 139,052 $ 135,406 One-time retroactive pricing from customers - (8,000) Adjusted net sales $ 139,052 $
Slide 12: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation Reconciliation of Net Income Attributable to STRATTEC to Adjusted Net Income Attributable to STRATTEC ($ in thousands) Three Months Ended 9/29/2024 10/1/2023 Net income attributable to STRATTEC SECURITY CORPORATION (GAAP) $ 3,703 $ 4,165 One-time retroactive pricin
Slide 13: Impact of Retroactive Pricing in Fiscal Year 2024
Impact of Retroactive Pricing in Fiscal Year 2024 One-time Pricing Impact to: Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 FY 2024 Net Sales $ 8,000 $ 1,600 NM(1) NM $ 9,700 Cost of Goods Sold(2) (900) (910) - - (1,700) Gross Profit $ 7,100 $ 690 NM NM $ 8,000 Gross Margin Contribution 4.7% 2.4% NM NM 1.
Slide 14: Investor Relations Contact
Q1 FY2025 Financial Results November 4, 2024 www.strattec.com Nasdaq: STRT Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716-843-3908 dpawlowski@Allianceadvisors.com