Strattec Security Corporation · NASDAQ:STRT
Strattec Security — Robert W. Baird & Company 2014 Industrial Conference
30 slides from Strattec Security's conference presentation, Nov 12, 2014
Slide 1: Robert W. Baird & Company 2014 Industrial Conference
Robert W. Baird & Company 2014 Industrial Conference November 12, 2014 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 2: Patrick J. Hansen, Senior Vice President & CFO
Patrick J. Hansen Senior Vice President & CFO 2 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 3: Disclosure for Presentation at Baird Industrial Conference
Disclosure for Presentation at Baird Industrial Conference This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include expected future financial results, product offerings, global expansion, liquidit
Slide 4: 1st Quarter, FY '15 Results
1st Quarter, FY ‘15 Results (000’s except per share amounts ) September September 2014 2013 Net Sales $ 122,242 $ 79,595 Gross Profit $ 28,057 $ 14,515 23.0% 18.2% Operating Expenses $ 13,187 $ 9,470 10.8% 11.9% Net Income $ 9,300 $ 3,211 Diluted Earnings Per Share $ 2.55 $ .91 4 VEHICLE ACCESS SYST
Slide 5: 1st Quarter Highlights
1st Quarter Highlights • Sales Increase Attributed to: – Incremental Service Sales from General Motor = $28 million – Launch of the New Kia Sedona Minivan = $5 million – Remaining $10 million Increase Related to North American Vehicle Production Growth and Product Growth in Latches, Driver Controls
Slide 6: Outlook Going Forward
Outlook Going Forward • Based on current customer orders we anticipate approximately $98 - 100 million in sales in our second quarter compared to $81.5 million in the prior year quarter. • Capital spending will be in the $20 – 21 million range during fiscal year 2015 compared to $13 million in prior
Slide 7: Frank J. Krejci, President & CEO
Frank J. Krejci (CRAY’ CHEE) President & CEO 7 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 8: History
History • 1908 – Briggs & Stratton Founded • 1995 – STRATTEC Spinoff • 2000 – VAST Alliance Formed • 2001 – VAST China Purchased • 2007 – ASDM – Joint Venture Formed • 2008 – Power Access Purchased from Delphi • 2011 – STRATTEC Component Solutions Formed • 2013 – NEXTLOCK Acquisition 8 VEHICLE ACCES
Slide 9: Briggs View of Itself: 1995
Briggs View of Itself: 1995 Engines Locks Swan Ugly Duckling 9 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 10: STRATTEC Profile
STRATTEC Profile Milwaukee, WI - 420 Employees Headquarters, Engineering, Parts Manufacturing Juarez, Mexico - 2,890 Employees 3 Facilities – Assembly, Key Finishing & Plastic Injection Molding El Paso, Texas - 30 Employees Distribution Troy, Michigan - 60 Employees Sales and Engineering 10 VEHICLE
Slide 11: Sales by Customer
Sales by Customer Other OEM Aftermarket and Industrial Customers 9% General Motors 23% Tier 1 19% Chrysler Ford Motor Fiscal Year 2014 Hyundai/Kia 34% Company 2% Net Sales = $348 million 13% 11 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 12: Sales by Products
Sales by Products Miscellaneous Industrial 2% Door Handles & Trim Components 14% Power Access & Latches 21% OEM Service & Aftermarket 14% Driver Controls 16% Key & Fiscal Year 2014 Locksets 33% Net Sales = $348 million 12 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 13: Products Portfolio
Products Portfolio • Locks & Keys • Power Doors • Handles • Latches • Steering Column Security • Fobs • Push Button Start • Aftermarket Products 13 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 14: What's New: Award
What’s New • AWARD – Ford Rotunda Supplier of the Year in Service 14 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 15: What's New: Diversification and Growth Initiatives
What’s New • Diversification – Bridgewood Advisors searching for acquisitions and partnerships – Security Products – Motion Control Products – Vertical Integration along with market diversification – Aftermarket – Strattec Component Solutions (contract manufacturing) • Growth Initiatives – Door Hand
Slide 16: Vehicle Access Systems Technology
Vehicle Access Systems Technology 16 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 17: VAST Partners
VAST Partners - Velbert, Germany – Founded 1899, Private - Grand Rapids, Michigan– Founded 1975, Private - 33% Ownership by STRATTEC - 51% Ownership by STRATTEC 17 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 18: VAST Profile
Profile • $1.3 billion + sales • 12 Manufacturing sites • 12 Engineering Centers • Employment over 8,700 18 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 19: Our Customers
Our Customers Passenger Vehicle Manufacturers Commercial Vehicle Manufacturers System Suppliers 19 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 20: China
China 150,000 sq. ft. manufacturing facility in Taicang, China. Second facility in Fuzhou. 20 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 21: China Sales Growth
China Sales Growth In Millions Of US Dollars $111.8 $100 $92.4 $90 $78.0 $80 $76.3 $70 $67.7 $60 $50 $40 $37.2 $37.5 $30 $21.6 $20 $14.6 $10.1 $8.9 $10 $4.0 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Fiscal Year Ending June 21 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC •
Slide 22: Diversification
Diversification 22 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 23: Precision Zinc Die Casting
Precision Zinc Die Casting Also: Plating Stamping Assembly 23 23 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 24: NextLock – Biometric Security
NextLock – Biometric Security Residential Instant & Hospitality Prototype Kit Office & High Home Automation & Security Ultimately Automotive 24 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 25: Accomplishments
Accomplishments • Chrysler Supplier of the Year – Electronic Products • Ford Rotunda Supplier of the Year • National Wellness Award from United Health Care – 3rd Year in a Row • Fully Funded Pension • Record Sales and Employee Bonuses • Added to Russell 2000 in July 2014 – Index Down 2% – STRATTEC u
Slide 26: Return to Shareholders
Return to Shareholders STRATTEC VALUE CREATION Market Value at 1995 Spin Off: $68 Million -Stock Repurchases(Avg Price: $37.32): $137 Million -Dividends: $17 Million -Current Market Value ($100.00 share price): $365 Million Total Return to Shareholders: $519 Million Value Creation: $451 Million 10.7
Slide 27: STRATTEC Sales, EPS, EVA and Stock Price
STRATTEC Fiscal Year SALES EVA Stock Price 30-Jun $ Millions EPS $000 Low High 2009 $126 -$1.86 ($13,742) $6 $38 2010 $208 $1.04 ($4,929) $13 $28 2011 $261 $1.63 ($3,719) $20 $38 2012 $279 $2.64 $579 $19 $27 2013 $298 $2.72 $2,597 $20 $42 2014 $348 $4.59 $6,313 $35 $78 2015 1st qtr $122 $2.55 $6,634
Slide 28: Summary
Summary • International & Product Growth • Strong Balance Sheet & Cash Flow • Diversification Initiatives 28 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 29: Questions?
Questions? 29 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 30: Robert W. Baird & Company 2014 Industrial Conference
Robert W. Baird & Company 2014 Industrial Conference November 12, 2014 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
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