STRATEC SE — Investor Presentation 2017

Nov 15, 2017

9M 2017 Financial Results

as of September 30, 2017

Conference Call October 26, 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 nine months of 2017
• 1. Financials
• 1. Outlook & Focus

HIGHLIGHTS 9M/2017

• 9M sales increased by 19.6% yoy to € 151.1 million organic growth of 9.6%*
• 9M adjusted EBIT margin improvement of 130 bps yoy to 15.9%

Q3 adjusted EBIT margin at 22.1% (+1.010 bps yoy)

• Operating cash flow after nine months increased by 107% yoy to € 25.8 million
• Several new product launches by our customers
• Signing of further development contracts
• Presentation of new "KleeYa" and "Aquila" platforms at AACC 2017

^* Excluding acquisitions of 2016

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

FINANCIALS AT A GLANCE

Key figures after the first nine months

(€ million)	Sep 30, 2017	Sep 30, 2016	Change
Sales	151,067	126,334	+19.6%
EBITDA1	29,464	22,671	+30.0%
1 EBITDA margin (%)	19.5	17.9	+160 bps
EBIT1	23,973	18,3911	+30.4%
1 EBIT margin (%)	15.9	14.61	+130 bps
Cons. net income1	18,6273	15,2512	+22.1%
1 Earnings per share (€)	1.573	1.292	+21.7%

¹ Adjusted to exclude items relating to acquisition activities

² Additionally adjusted to exclude one-off items resulting from tax audit performed for 2009 to 2013 assessment periods

3 Additionally adjusted to exclude deferred tax benefits resulting from loss carry forwards at companies acquired in 2016

Adjustments as of September 30, 2017

€ 000s	$01.01 - 09.30.2017$
Adjusted EBIT	23,973
Adjustments • Expenses incurred in connection with transactions and associated restructuring	$-861$
expenses • Scheduled amortization (PPA)	$-5,587$
EBIT	17,525

EBIT Consolidated net income

€ 000s	$01.01 - 09.30.2017$
Adjusted consolidated net income	18,627
Adjusted earnings per share in $\epsilon$	1.57
Adjustments • Expenses incurred in connection with transactions and associated restructuring expenses	$-861$
• Scheduled amortization (PPA)	$-5,587$
• Financing expenses due to company acquisitions	$-510$
• Current tax expenses	377
• Deferred tax income	3,680
Consolidated net income	15,726
Earnings per share in $\epsilon$	1.32

SALES

9-Months Sales compared to Annual Sales

9M/2017 Sales

• Growth of 19.6% yoy to € 151.1 million
• Organic growth of 9.6%

(+) Good orders for established systems

(+) Strong service parts business

9-Months Sales as of 09/30

ADJUSTED EBIT & EBIT MARGIN

As of September 30, 2017

9M adjusted EBIT margin at 15.9%

• Improvement of 130 bps yoy

(+) Positive product mix triggered by strong service parts business

(+) Profitability improvements at subsidiaries during Q3

(-) Additional staffing related to strong project pipeline

(-) Margin dilutive capitalization of development activities

Figures adjusted for effects from acquisition activities

ADJUSTED EARNINGS PER SHARE

As of September 30, 2017

• Adjusted EPS at € 1.57 (9M/2016: € 1.29)
• Adjusted 9M tax rate at 22.6% (9M/2016: 16.2%)

Adjusted 9M EPS

Figures adjusted for effects from acquisition activities; 2016 figure additionally adjusted for one-off items resulting from the tax audit for the 2009 to 2013 assessment periods

www.stratec.com

CASH FLOW & NET DEBT

Operating cash flow as of Sep 30, 2017

Operating cash flow after nine months

• Operating cash flow after nine months increased by 107% yoy to € 25.8 million

• Net debt decreased by 12% to € 43.6 million versus € 49.3 million as of Sep 30, 2016

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

STRATEC – FINANCIAL GUIDANCE

Outlook for 2017

• Sales guidance of € 205 million to € 220 million
• Adjusted EBIT margin of around 17%

Medium-term expectations

• Average annual organic sales growth (CAGR) in the high single-digit or low doubledigit percentage range
• Broadly consistent EBIT margin development
• Positive scale effects partly offset by growth activities related to packed development pipeline

FOCUS IN 2017 AND BEYOND

• Improve profitability across business units
• Further realize synergies through development activities across STRATEC businesses
• Expand leading market role
• Leverage expanded platform offering
• 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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