STRATEC SE — Investor Presentation 2021

Mar 31, 2021

STRATEC FY 2020 FINANCIAL RESULTS

Birkenfeld, 2021-03-31

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 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.FY 2020 AT A GLANCE

• 2.FINANCIAL REVIEW
• 3.OUTLOOK
• 4.Q&A
• 1. APPENDIX

FY 2020 FINANCIAL RESULTS – MARCH 31, 2021

FY 2020 AT A GLANCE

• • High additional demands due to COVID-19 pandemic Growth of 18.4% yoy at constant currency 2020 guidance "growth of 14% - 18%" Sales up by 16.8% to € 250.1 million (new record high)
• • Adjusted EBIT increased by 42.6% yoy to € 41.7 million Adjusted EBIT margin up by 300 bps yoy to 16.7% (2019: 13.7%)
• • New market launches and achievement of major development milestones e.g.: Significant extensions for a molecular diagnostics analyzer system of a North American partner (Q1/20) Achieved CE conformity for KleeYa instrument (Q1/20)

Becton Dickinson received FDA Clearance for FACSDuet (Q3/20)

Start of serial production of a smart consumable for a partner in the field of flow cytometry (Q3/20)

Significant development progress for DIATRON's next generation hematology analyzer (Aquarius)

•Dividend proposal of € 0.90 per share (previous year: € 0.84)

17th consecutive dividend increase since the first dividend payment in 2004 (subject to AGM approval)

1.FY 2020 AT A GLANCE

2.FINANCIAL REVIEW

• 3.OUTLOOK
• 4.Q&A
• 1. APPENDIX

FINANCIALS AT A GLANCE1

€ 0 0 0s	F Y 2 0 2 0	2 F Y 2 0 1 9	C ha ng e	Q 4 2 0 2 0	2 Q 4 2 0 1 9	C ha ng e
Sa les	2 0, 0 9 9 5	2 4, 1 1 5 7	6. 8 % +1	0 7 1, 1 7	8 2 5 5, 1	+2 2 % 7.
A d d E B I T D A j te us	5 1, 9 7 8	3 8, 6 7 0	+3 4. 4 %	1 6, 1 5 7	1 1, 8 9 4	+3 5. 8 %
A T A ( % ) d d E B I D j in te us m ar g	2 0. 8	1 8. 1	+2 7 0 bp s	2 2. 8	2 1. 3	+1 5 0 bp s
A d d E B I T j te us	4 1, 7 1 3	2 9, 2 5 9	+4 2. 6 %	1 3, 5 9 2	9, 2 7 4	+4 6. 6 %
A d d E B I T ( % ) j in te us m ar g	1 6, 7	1 3. 7	+3 0 0 bp s	1 9. 1	1 6. 6	+2 5 0 bp s
3 A d d l da d j i inc te te t us co ns o ne om e	3 2 8 5, 1	2 4, 0 0 7	+4 6. 3 %	4 3 1 1, 5	8, 3 9 1	+4 0. % 7
3 A d d ba ha ( € ) j ic ing in te us s ea rn s p er s re	2. 9 2	2. 0 1	+4 5. 3 %	0. 9 5	0. 6 8	+3 9. 7 %
3 S ( € ) Ba ha I F R ic ing in s ea rn s p er s re	2. 3 6	1. 1 9	+9 8. 3 %	0. 8 1	0. 4 6	+7 6. 1 %

bps = basis points

1 For comparison purposes, adjusted figures exclude amortization resulting from purchase price allocations in the context of acquisitions and the associated reorganization expenses.

2 Retrospectively adjusted to account for the recognition of the Data Solutions business unit as a discontinued operation pursuant to IFRS 5.

3 Consolidated net income from continuing operations.

SALES

Sales in € million

As of December 31

FY 2020 sales organically up by 18.4% yoy to € 250.1 million (nominal growth of 16.8%)

• Strong additional demand for immunoassay and molecular diagnostic products a result of COVID-19 pandemic

•Significantly lower amount of recognized development revenues due to high basis of comparison in the previous year (particularly in Q2 2019)

SALES BYOPERATING DIVISIONS

2020

In % of total sales

Others Development and ServicesService Parts & ConsumablesSystems

As of December 31

Sales in € million

CER= Constant exchange rates

ADJUSTED EBIT AND EBIT MARGIN

As of December 31

FY 2020 adjusted EBIT up 42.6% yoy to € 41.7 million

FY 2020 adjusted EBIT margin at 16.7 %

Margin expansion of 300 bps yoy

• (+) Economies of scale
• (+) Positive sales and product mix
• (+) Earnings improvement initiative
• (-) Stock appreciation rights (negative margin effect of 210 bps)

SEGMENT PERFORMANCE

Instrumentation

€ 0 0 0s	2 0 2 0 F Y	2 0 9 F Y 1	C ha ng e	C A E R t
Sa les	1 7 6, 5 1 7	1 5 4, 4 4 2	1 4. 3 % +	1 6. 4 % +
A d E B I T j.	2 8. 2 7 7	2 2. 1 5 1	2 7. 7 % +
A d E B I T j. in ma rg	1 6. 0 %	1 4. 3 %	1 7 0 bp + s

• • High additional demand due to pandemic but significantly lower recognition of development & services sales
• • Adverse margin effect from stock appreciation rights

Smart Consumables

€ 0 0 0s	F Y 2 0 2 0	F Y 2 0 1 9	C ha ng e	A C E R t
Sa les	0 3 1 7, 1	6, 8 3 1 5	6 % 1. +	2. % 5 +
A d d E B I T j te us	8 3 -1 1 ,	2 4 -1 5 ,	nm
A d E B I T j. in ma rg	-6 9 %	-7 4 %	5 0 bp + s

• Ongoing high level of advance expenses for numerous development projects and high share of low-margin development sales

Diatron

€ 0 0 0s	2 0 2 0 F Y	2 0 9 F Y 1	C ha ng e	C A E R t
Sa les	5 6, 4 7 9	4 2, 8 8 0	3 1. 7 % +	3 2. 0 % +
A d E B I T j.	1 4, 6 1 9	8, 3 5 3	7 5. 0 % +
A d E B I T j. in ma rg	2 5, 9 %	1 9. 5 %	6 4 0 bp + s

• • Strong growth with molecular and veterinary diagnostics products
• • Scale effects and strong product mix

CER = Constant exchange rates

CASH FLOW AND NET DEBT

€ 0 0 0s	F Y 2 0 2 0	F Y 2 0 1 9	C ha ng e
Ca h f lo ing iv i ies t t t s er a a c w op –	3 1, 8 4 9	2 1, 2 6 2	% 4 9. 8 +
Ca h f lo inv iv i ies tm t a t t s es en c w –	2 1, 8 4 5 -	2 7, 7 1 9 -	/a n
Ca f f h lo ina ing iv i ies t t s nc a c w –	2 2 3 5,	4 4 5, 5	4. 2 % -
f Fr h lo ee c as w	0, 0 0 4 1	6. 4 5 7 -	/a n

€ 0 0 0s	F Y 2 0 2 0	F Y 2 0 1 9	C ha ng e
Ca h d h len iva ts s an ca s eq u d f p d io t e a n o er	3 7, 5 6 1	2 2, 7 0 8	6 5. 4 % +
( % ) Eq i io ty t ra u	2. 0 5	3. 5 1	0 1 1 bp s -
N de b t t e	8 2, 6 7 7	7 7. 2 5 4	7. 0 % +

• • Cash flow from operating activities increased by 49.8% to € 31.8 million
  • -Strong development in H2
  • • Still elevated inventory levels to address supply chain challenges
• •Higher investment spending due to significant capacity expansion at HQ (i.e. capacity expansion for development and prototyping). Construction work completed in 2020
• • Investment ratio¹ of 10.2% of sales
  • 2020 guidance 10% - 12%
• •Net debt / EBITDA of 1.6x

1 Total investments in intangible and tangible assets in % of sales

1.FY 2020 AT A GLANCE

2.FINANCIAL REVIEW

3.OUTLOOK

• 4.Q&A
• 1. APPENDIX

OUTLOOK

UPDATE COVID-19 PANDEMIC

Several STRATEC customers are at the forefront of containing the COVID-19 pandemic

-Significant proportion of genetic COVID-19 testing is performed on systems developed and manufactured by STRATEC

• -Additional demands for immunoassay solutions due to antibody screening and lab-based antigen tests
• • Still unprecedented demand levels and strong order trends strong business performance expected for H1 2021

Various factors set to influence H2 2021 demand levels:

• -Magnitude of replacement potential triggered by elevated utilization levels of installed base
• -Uplift of serological and other testing (e.g. full respiratory panels)
• -Overall testing volumes and penetration of genetic versus rapid antigen tests
• -Impact of significant expanded installed base on Service parts & Consumables business
• • Catch up potential of non-COVID-related product lines

Expected longer-term dynamics:

• -Improved perception of IVD methods and further increase in STRATEC brand awareness
• -Allocation of research budgets into infectious diseases
• -Renaissance of decentralized testing capacities (more testing againin hospitals)
• -Increased and sustainable public investments in healthcareinfrastructures
• • Sustainable additional testing demand (e.g. Long COVID, respiratory panels, other screening tests)

FY 2020 FINANCIAL RESULTS – MARCH 31, 2021

FINANCIAL GUIDANCE FOR FISCAL YEAR 20211

• •Constant-currency sales growth in at least a mid single-digit percentage range
• •Adjusted EBIT margin of around 17.0% to 18.0% (2020: 16.7%)
• •Investments in tangible and intangible assets combined of around 6.0% to 8.0% of sales

1 Overall, the company has most recently witnessed increased order forecasts for the second half of 2021. Due to the additional forecasting uncertainty on account of the pandemic, however, these increases have not been incorporated into the above financial guidance.

OUTLOOK

FOCUS IN 2021 AND BEYOND

•Manage challenges arising from COVID-19 pandemic

• Health of our employees still has highest priority (rollout of employee testing program started in March)
• Deliver on received extra orders and support customers in making their contribution in the fight against the pandemic

Mitigate and manage supply chain risks

• • Drive forward development program for next-generation MDx solution for one of the dominant market players
• •Focus on potential M&A activities in-light of solid balance sheet and upcoming opportunities
• •Sign further development and manufacturing agreements

Two bigger deals in the final negotiation stage

QUESTIONS & ANSWERS

FY 2020 FINANCIAL RESULTS – MARCH 31, 2021

APPENDIX

ADJUSTMENTS

EBIT

€ 0 0 0s	F Y 2 0 2 0	1 F Y 2 0 1 9
A d j d E B I T te us	4 3 1, 7 1	2 9, 2 9 5
A d j tm ts us en :
P P A iza io t t am or n	-8 0 3 6 ,	-8 9 9 7 ,
Ex lat ing io to tr ct en se s r e an sa ns p d a d iat ing str tu an sso c e re uc r ex p en se s	0	-3 0 7 4 ,
E B I T	3 3, 6 7 7	1 7, 1 8 8

Restated

1

Consolidated net income

€ 0 0 0s	F Y 2 0 2 0	1 F Y 2 0 1 9
j i in A d d l da d te te t us co ns o ne co m e fro in in io t t m c on u g op er a ns	3 5, 2 1 8	2 4, 0 7 0
A d j d in ha fro te us ea rn s p er s re m g in in io in € ( ba ic ) t t co n u g op er a ns s	2. 9 2	2. 0 1

Adjustments:

P P A iza io t t am or n	-8 0 3 6 ,	-8 9 9 7 ,
Ex lat d ing io to tr ct p en se s r e an sa ns an d iat ing str tu as so c e re uc r ex en se s p	0	-3 0 7 4 ,
Ta inc xe s o n om e	1, 2 5 3	2, 2 6 3
Co l i da d in te t ns o ne co m e fro in in io t t m co n op er a ns u g	2 8, 4 3 5	1 4, 2 6 2
in fro Ea ha rn g s p er s re m in in io in € ( ba ic ) t t co n u g op er a ns s	2. 3 6	1. 1 9

Restated

CONTACT

STRATEC SE Gewerbestr. 37 75217 Birkenfeld Germany

Phone +49 7082 7916-0 Fax +49 7082 7916-999 www.stratec.com

CONTACT

Jan Keppeler, CFA Head of Investor Relations & Corporate Communications

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

THANK YOU FOR YOUR ATTENTION