STRATEC SE — Investor Presentation 2020

May 14, 2020

Q1 2020 FINANCIAL RESULTS

Forward-looking statements involve risks.

Q1 2020 FINANCIAL RESULTS – MAY 14, 2020 ² 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 forward-looking 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. Q1 2020 AT A GLANCE 2. FINANCIAL REVIEW 3. OUTLOOK 4. Q&A 5. APPENDIX

• Q1 2020 FINANCIAL RESULTS MAY 14, 2020 ³

• Sales up 21.3% yoy to € 56.5 million (Q1 2019: € 46.6 million) organic growth of 20.1% - Strong performance in all segments - To date COVID-19 pandemic had a very minor impact on Q1 sales performance

• Adjusted EBIT margin up by 290 bps yoy to 13.6% (Q1 2019: 10.7%)
• New product launches and achievement of several development milestones
• Software and hardware extensions for a molecular diagnostics analyzer system - KleeYa instrument (proprietary next-generation analyzer platform) achieves CE conformity
• Q1 2020 FINANCIAL RESULTS MAY 14, 2020 • Further progress with numerous negotiations for promising future projects

1. Q1 2020 AT A GLANCE 2. FINANCIAL REVIEW 3. OUTLOOK 4. Q&A 5. APPENDIX

• Q1 2020 FINANCIAL RESULTS MAY 14, 2020 ⁵

FINANCIALS AT A GLANCE1

FINANCIAL REVIEW
FINANCIALS AT A GLANCE1
€ 000s	Q1 20202	Q1 20192	Change
Sales	56,504	46,569	+21.3%
Adjusted EBITDA	10,142	7,177	+41.3%
Adjusted EBITDA margin (%)	17.9	15.4	+250 bps
Adjusted EBIT	7,658	4,975	+53.9%
Adjusted EBIT margin (%)	13.6	10.7	+290 bps
Adjusted consolidated net income3	6,246	3,756	+66.3%
Adjusted basic earnings per share (in €)3	0.52	0.31	+67.7%
Basic earnings per share IFRS (in €)3	0.37	0.11	+236.4%

• 1 For comparison purposes, adjusted figures exclude amortization resulting from purchase price allocations in the context of acquisitions and the associated reorganization expenses.
• ² To facilitate comparison, adjusted to account for the disposal of the Data Solutions business unit, which has been reported as a discontinued operation.

FINANCIAL REVIEW

SALES

In € million

Q1 2020 sales up 21.3% yoy to € 56.5 million

• organic growth of 20.1%
• (+) Strong service parts and consumables business
• (+) Higher call up numbers for several systems
• (+) Dynamic growth with veterinary diagnostics products in the Diatron segment

As of March 31

FINANCIAL REVIEW

ADJUSTED EBIT AND EBIT MARGIN

Q1 2020 adjusted EBIT up 53.9% yoy to € 7.7 million 290 bps yoy to 13.6% (+) Economies of scale 20%

Q1 2020 adjusted EBIT margin up 14% 16%

10%

(+) Sales/product mix 8%

As of March 31

FINANCIAL REVIEW

CASH FLOW AND NET DEBT

FINANCIAL REVIEW
CASH FLOW AND NET DEBT
€ 000s	Q1 2020	Q1 2019	Change
Cash flow – operating activities	3.2	9.5	-66.3%	to € 3.2 million
Cash flow – investment activities	-7.1	-7.8	nm
Cash flow – financing activities	14.5	-0.5	nm
Free cash flow	-3.9	1.7	nm
	Q1 2020	FY 2019	Change
€ 000s
Cash and cash equivalents at end of period	32.9	22.7	44.9%
Equity ratio (%)	49.7	53.1	-340 bps	investments

32.9	22.7	44.9%
49.7	53.1	-340 bps	investments
84.1	77.3	+8.8%

• Cash flow from operating activities down by 66.3% to € 3.2 million
• Temporary and intended increase in inventories (due to significant upcoming volume ramp-up) due to COVID-19 pandemic - Higher receivables position (timing effects) - Significant improvement in Q2 expected
• Investment spending still on a high level due to ongoing construction work for expansion of building capacity at HQ

• Higher net debt position driven by temporary increase of working capital and financing of capex investments

• 1. Q1 2019 AT A GLANCE 2. FINANCIAL REVIEW 3. OUTLOOK 4. Q&A 5. APPENDIX

• Q1 2020 FINANCIAL RESULTS MAY 14, 2020 ¹⁰

FINANCIAL GUIDANCE FOR FISCAL YEAR 20201

• Group sales expected to increase organically in a low double-digit percentage range2
• Adjusted EBIT margin of around 15%
• Positive scale effects; improving sales and product mix; defined earnings improvement measures
• Investments in tangible and intangible assets of around 10% to 12% of sales
• Ongoing construction measures for significant capacity expansion
• After completion of construction projects for capacity expansion, investment ratio is likely to decline in 2021

Q1 2020 FINANCIAL RESULTS – MAY 14, 2020 1 In connection with the COVID-19 pandemic, STRATEC is currently observing significantly positive and slightly negative effects in terms of customer orders and order forecasts. Overall, the company currently expects to see a notably positive impact on demand in the current financial year. All in all, the implications of the pandemic, such as those referred to above and also any potential interruptions within the supply chain, are still not fully visible. Apart from those effects that had already materialized by the end of April 2020, the above guidance therefore does not account for the effects of the pandemic.

2 Based on the restated 2019 sales figure of € 214.2 million (restated for the disposal of STRATEC's Data Solutions business unit)

OUTLOOK

FOCUS IN 2020 AND BEYOND

• Manage challenges arising from COVID-19 pandemic

• Health of our employees has highest priority
• Deliver on received extra orders and support customers in making their contribution in the fight against the pandemic
• Mitigate and manage supply chain risks
• Improve EBIT contribution of Smart Consumables segment
• Drive working capital efficiency and improve cash flow dynamics from Q2 onwards
• Achievement of development targets
• Sign new development and supply agreements (execute deal pipeline)
• Realize further efficiency gains (earnings improvement initiative, ERP system implementation)

Q1 2020 FINANCIAL RESULTS – MAY 14, 2020 ¹³ QUESTIONS & ANSWERS

APPENDIX

ADJUSTMENTS

APPENDIX
ADJUSTMENTS
EBIT			Consolidated net income
€ 000s	Q1 2020	Q1 2019
Adjusted EBIT	7,658	4,975
Adjustments:
PPA amortization	-2,062	-2,277	(basic)
Transaction-related expenses and associated restructuring expenses	0	-723	Adjustments:
EBIT	5,596	1,975
			Transaction-related expenses and

EBIT Consolidated net income

€ 000s Q1 2020 Q1 2019
Adjusted consolidated net income 6,246 3,756 from continuing operations
Adjusted earnings per share from continuing operations in € 0.52 0.31 (basic)
Adjustments:
PPA amortization -2,062 -2.277
Transaction-related expenses and 0 -723 associated restructuring expenses
Taxes on income 320 556
Consolidated net income from 4,503 1,312 continuing operations
Earnings per share from continuing 0.37 0.11 operations in € (basic)

CONTACT

STRATEC SE Gewerbestr. 37 75217 Birkenfeld Germany

Phone +49 7082 7916-991 Fax +49 7082 7916-9190 www.stratec.com

CONTACT

Marcus Wolfinger CEO

Jan Keppeler, CFA Head of IR & CC

Phone +49 7082 7916-6515 j.keppeler@stratec.com

THANK YOU FOR YOUR ATTENTION