STRATEC SE — Investor Presentation 2017

Jul 25, 2017

H1 2017 Financial Results

as of June 30, 2017

Conference Call July 25, 2017

Forward-looking statements involve risks.

This company presentation contains various statements concerning the future performance of STRATEC. These statements are based on both assumptions and estimates. Although we are convinced that these forwardlooking statements are realistic, we can provide no guarantee of this.

This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected.

It is not planned to update these forward-looking statements.

• 1. Highlights of the first six months of 2017
• 1. Financials
• 1. Outlook & Focus

HIGHLIGHTS H1/2017

• Revenues increased by 29.1% to € 100.7 million
• Adjusted EBIT margin at 12.8 %
• organic adjusted EBIT margin in H1 at 16.0%
• Several product launches by customers
• Presentation of new "KleeYa" and "Aquila" platforms at AACC 2017

• Further expansion in workforce due to extensive development activities

• 1. Highlights of the first six months of 2017
• 1. Financials
• 1. Outlook & Focus

FINANCIALS AT A GLANCE

Key figures after the first six months

(€ million)	June 30, 2017	June 30, 2016	Change
Sales	100.7	78.0	+29.1%
EBITDA1	16.5	15.2	+8.8%
1 EBITDA margin (%)	16.4	19.4	-300 bps
EBIT1	12.9	12.6	+1.9%
1 EBIT margin (%)	12.8	16.2	-340 bps
Cons. net income1	9.9	10.32	-3.5%
1 Earnings per share (€)	0.84	0.872	-3.4%

¹ Figures adjusted for effects from acquisition activities

² Additionally adjusted for non-recurring items arising from the 2016 external tax audit for the assessment periods from 2009 to 2013

Conference Call – July 25, 2017 www.stratec.com 7

Adjustments as of June 30, 2017

$\epsilon$ 000s	$01.01 - 06.30.2017$
Adjusted EBIT	12.862
Adjustments • Expenses incurred in connection with transactions and associated restructuring	-489
expenses • Scheduled amortization (PPA)	$-3,727$
FBIT	8.64

EBIT Consolidated net income

€ 000s	$01.01 - 06.30.2017$ 9.948
Adjusted consolidated net income
Adjusted earnings per share in $\epsilon$	0.84
Adjustments
• Expenses incurred in connection with	-489
transactions and associated restructuring expenses
• Scheduled amortization (PPA)	$-3,727$
• Financing expenses due to company acquisitions	$-371$
• Deferred tax expenses	236
• Deferred tax income	617
Consolidated net income	6.215
Earnings per share in $\epsilon$	0.52

SALES

6-Months Sales compared to Annual Sales

H1/2017 Sales

• +29.1% to € 100.7 Mio.
• Diatron & STRATEC Consumables :
• € 25.1 Mio. in H1/2017

6-Months Sales as of 06/30

EBIT & EBIT MARGIN

As of June 30

EBIT margin at 12.8%

• H1/2017 organic: 16.0 %
• Dilution through acquisitions
• Recovery expected for FY 2017

Figures adjusted for effects from acquisition activities

OUTLOOK PROFITABILITY

• STRATEC Consumables expected to pick up in second half
• Expansion of manufacturing depth
• Increase in gross margin through product mix
• Decline in material intensive launch support activities

Mid-Term expectation

• Constant margin development forecasted
• Mid-term profitability planned to increase winning new contracts will soften positive effects

EARNINGS AFTER SIX MONTHS

Earnings per share as of June 30

• Adjusted EPS at € 0.84 (H1/2016: € 0.87)
• Adjusted H1 tax rate at 23.5% (H1/2016: 16.2%)
• Dividend pay out per share at € 0.77 (previous year: € 0.75)

Figures adjusted for effects from acquisition activities

• 1. Highlights of the first six months of 2017
• 1. Financials
• 1. Outlook & Focus

STRATEC – FINANCIAL GUIDANCE

• Sales guidance for 2017: € 205 million to € 220 million
• sales expected to significantly exceed the lower end of this range
• Organic double digit top line growth in 2017
• Profitability in 2017 on a broadly stable level

FUTURE GUIDANCE

• Sales and profitability guidance for current years with publication of annual report
• Broader statement regarding medium-term expectation: • Average annual organic sales growth (CAGR) in the high single-digit or low doubledigit percentage range in the years ahead with a broadly consistent EBIT margin

FOCUS IN 2017 AND BEYOND

• Improve profitability across business (benefits of scale driven by top-line growth)
• Further realize synergies through development activities across STRATEC businesses
• Expand leading market role
• Facilitate process of instrument/consumables integration for partners
• Achieve milestones & market launches
• Execute important development and supply agreements

STRATEC Biomedical AG Gewerbestr. 37 75217 Birkenfeld Germany Tel: +49 7082 7916-0 Fax: +49 7082 7916-999 www.stratec.com

Marcus Wolfinger CEO m.wolfinger@stratec.com

TICKER
Symbol:	SBS.DE
Bloomberg:	SBS:GR
Reuters:	SBSG.DE
ISIN:	DE0007289001
WKN:	728900

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