Strattec Security Corporation · NASDAQ:STRT
Strattec Security — Gabelli Funds 47th Annual Auto Symposium (October 2023)
18 slides from Strattec Security's conference presentation, Oct 31, 2023
Slide 1: Gabelli Funds 47th Annual Auto Symposium
Gabelli Funds 47th Annual Auto Symposium October 31, 2023 STRT (NASDAQ)
Slide 2: Disclosure for Presentation on October 31, 2023
Disclosure for Presentation on October 31, 2023 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, liquidity needs, fi
Slide 3: Presenters: Frank J. Krejci and Dennis Bowe
Frank J. Krejci (CRAY’ CHEE) President & CEO Dennis Bowe (virtual) CFO and 3
Slide 4: About STRATTEC
About STRATTEC Headquarters – Milwaukee, Wisconsin Established 1908 Formerly part of Briggs & Stratton Corporation Spun off in 1995 as public company – STRT (NASDAQ) 51% owner of Joint Venture with ADAC Automotive making door handles Shareholder in VAST Automotive Group until June 30, 2023 Briggs &
Slide 5: About STRATTEC
About STRATTEC Sales: $500 million Employees: 3,300 Owned Facilities: Wisconsin, Michigan, 4 in Mexico (total of 892k sq. ft.) Leased Facility: Texas (115k sq. ft.) Consolidated Book Value of attributable to STRATTEC is $189m/$16m cash All consolidated debt of $13m held by Joint Venture 2023 share p
Slide 6: Facilities
Facilities Milwaukee, WI STRATTEC Headquarters Manufacturing Engineering Testing Auburn Hills, MI STRATTEC Power Access HQ STRATTEC Sales Office Engineering Program Management El Paso, TX (Distribution) SMO II STRATTEC Mexico Operations - Juarez, Mexico Engineering Assembly Testing SMO I ADAC STRATT
Slide 7: Key Performance Topics
Key Performance Topics RECENT TRANSACTIONS Sold VAST equity (China, India and Brazil) Acquired 20% STRATTEC Power Access Significant cash infusion to eliminate STRATTEC debt Greater focus on Strattec priorities MEXICAN COSTS Peso exchange rate deteriorated from 20.25 to 17.11 in FY23 January 2023 go
Slide 8: Key Performance Topics: UAW Strike and Strategic Vision
UAW STRIKE Less than 10% reduced shipments to date 8 STRATEGIC VISION Fresh thinking from 2 new Directors added to the Board of Directors Cash generation Improved return to shareholders Key Performance Topics
Slide 9: Sales by Customers and Products
Sales by Customers and Products NOTE: Tier 1’s sell products primarily to General Motors, Ford and Stellantis 9
Slide 10: STRATTEC Products
STRATTEC Products NOTABLE INNOVATION AWARDS – last 5 years 2 PACE AWARDS from Automotive News – approximately a dozen awarded annually General Motors Innovation Award – 1 of 4 awarded from 3,000 suppliers CORE PRODUCTS: Security Products – OEM & Aftermarket Fobs, Keys/Locks, Start Systems, Steering
Slide 11: Core Products – Security Products
Core Products – Security Products 11 Electronic Key Fobs & Locksets Column mounted Dash mounted Integrated electronics Sensors Solenoids Ignition Switches RFID Transceivers Illuminated Bezels Electronic Vehicle Start Systems Electronic and Mechanical Column Locks RKE and LF Passive Key Fobs Immobili
Slide 12: ISSTRATTEC|
ISSTRATTEC| |
Slide 13: E-Shifter, Steering Wheel Switches, Paddle Switches, ECU
13 E-Shifter PRND Steering Wheel Switches Transmission Paddle Shifter ECU E-Shifter, Steering Wheel Switches, Paddle Switches, ECU
Slide 14: Adjusted EPS Summary
5 Year Adjusted EPS Summary * Adjusted for Non-Cash Pension Settlement and compensation charges. See Appendix for reconciliation of non-GAAP performance measure to GAAP performance measure. ** Net Loss due to COVID-19 and non-cash compensation charge reduced EPS by $0.99.
Slide 15: Financial Results
Financial Results (000s) 15 QUARTER QUARTER FISCAL YEAR SEPT 2023 SEPT 2022 JUNE 2023 SALES $135,406 $120,360 $492,946 GROSS PROFIT 18,720 12,496 42,152 SG&A EXPENSE 12,614 12,700 48,241 OPERATING PROFIT 6,106 (204) (6,089) OTHER INCOME (264) 105 (1,579) TAX EXPENSE 1,387 36 1,281* CONSOLIDATED NI 4
Slide 16: Strategic Priorities
Strategic Priorities Continued reactions to UAW strike Growth focus on Power Access / Motion Control Internal Focus on product line expansion Search for complimentary acquisitions to diversify in other industries Growth in Electric Vehicles + Current Products Applicable Post- VAST global support Gen
Slide 17: Balance Sheet
Balance Sheet 17 October 1, 2023 July 2, 2023 ASSETS Current Assets: Cash and Cash Equivalents $ 15,665 $ 20,571 Receivables, net 87,470 89,811 Inventories, net 81,367 77,597 Other Current Assets 43,349 37,803 Total Current Assets 227,851 225,782 Other Long-term Assets 20,452 20,702 Property, Plant
Slide 18: Appendix: Reconciliation of Non-GAAP to GAAP Performance Measures
Appendix NJ STRATTEC RECONCILIATION OF NON.GAAP PERFORMANCE MEASURES TO GAAP PERFORMANCE MEASURES. (Ge tousands, excep earings per shar data) ‘Gros pot (GAAP measur) Compensation charge, pretax juste gross prot LEngneenng, sling &admnstatve ‘rpontes (GAAP measure) S476 ‘Compensaton charge, pr-ax 08
STRATTEC Security — Gabelli Funds 47th Annual Auto Symposium (October 2023) on 6ix