STRATEC SE

Investor Presentation • Oct 25, 2024

9M 2024

FINANCIAL RESULTS

Birkenfeld - October 25, 2024

ALL ON THE RADAR

SAFE HARBOR STATEMENT

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.

I. 9M 2024 AT A GLANCE

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

9M 2024 AT A GLANCE

• Sales dynamics still affected by lower demand for MDx systems (COVID capacity built-up) and postponement of some deliveries to Q4 and FY 2025
• Efficiency measures and structural improvements unfolding momentum: Gross margin 9M/2024 up yoy despite lower economies of scale and still suboptimal product mix
  $\Rightarrow$ Guidance update as of 10/17/2024: Margin target for FY 2024 confirmed despite slightly reduced sales outlook
• Strengthening of market position in Asia-Pacific and first sales synergies realized in the U.S. on the back of Natech acquisition

FINANCIAL REVIEW

$\left{\begin{array}{l}\text { - } \ \text { - }\end{array}\right.$

$\mathfrak{C} 000 \mathrm{~s}$

Sales

Adjusted EBITDA

Adjusted EBITDA margin (\%)
Adjusted EBIT

Adjusted EBIT margin (\%) 8.4

Adjusted consolidated net income
Adjusted basic earnings per share (in €)
Basic earnings per share IFRS (in €)

9M/2024

176,305
26,329
14.9
14.5
8.6
9,742
0.80
0.62

9M/2023

187,680
27,267
14.5
16,222
-6.1\%
(cc. -6.0\%)

14.9
14.5
-40 bps
16,222
-9.0\%

8.4
9,742
-16.5\%

0.80
-16.3\%

-40.3\%

Change

57,229
9,011

5,054

8.8

2,660

0.22

15.7

14.8

-8.7\%
(cc. -9.1\%)

15.7

5,054

8.8

2,660

0.47

-53.2\%

0.05

-88.1\%
$\mathrm{bps}=$ basis points / cc = constant currency
I To facilitate comparison, figures have been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions and other non-recurring items. These non-recurring items include advisory expenses relating to M\&A activities and one-off personnel expenses of $€ 1.7$ million in connection with the departure of a member of the Board of Management in the third quarter of 2024.

CHAPTER

SALES DEVELOPMENT 9M 2024

Sales in € million

As of September 30

9M/2024 down by $6.0 \%$ yoy at constant currency to $€ 176.3$ million; $-9.6 \%$ organic
$(-)$ Lower pandemic-related demand for molecular diagnostics solutions
$(-)$ Flatter than expected ramp-up phase of recently launched MDx product
$(-)$ Some deliveries, originally expected for Q3, have been postponed to Q4 2024 and FY 2025, respectively
(+) Healthy demand for service parts and consumables
(+) Moderate increase in development and services revenues

APPROFED

ADJUSTED EBIT AND EBIT MARGIN 9M 2024

Adj. EBIT in € million

As of September 30

Adj. EBIT margin in \%

Adjusted EBIT margin 9M/2024 8.4\% versus 8.6\% in the prior year period
(+) Efficiency measures and structural changes taking effect
(-) Negative economies of scale
(-) Still room for improvement for product mix within systems business

Lower earnings contribution from recognition of development revenues in Q3/2024 versus Q3/2023

CASH FLOW AND NET DEBT

$€ 000$ s	$9 M / 2024$	$9 M / 2023$	Change
Cash flow - operating activities	25,430	10,709	$+137.5 \%$
Cash flow - investment activities	$-12,432$	$-45,666$	nm
Cash flow - financing activities	$-13,482$	26,634	nm
Free cash flow	12,998	$-34,957$	nm

$€ 000$ s	$9 M / 2024$	FY/2023	Change
Cash	33,108	33,532	$-1,3 \%$
Equity ratio (\%)	50.5	50.0	+50 bps
Net working capital	109,025	121,088	$-10,0 \%$
Net debt	119,429	118,180	$+1,1 \%$

9M 2024 FINANCIAL RESULTS - OCTOBER 25, 2024

• Significantly improved cash flow dynamics on the back of reduced trade receivables position and lower cash tax payments; but still inflated inventory levels
• Investment ratio' at $7.0 \% \rightarrow$ in-line with full year target corridor of $6.0 \%$ to $8.0 \%$
• Net debt / LTM EBITDA of 3.1x

[^0]
[^0]: ${ }^{1}$ Total investments in intangible and tangible assets in \% of sales
LTM = Last twelve months

OUTLOOK

FINANCIAL GUIDANCE FOR FISCALYEAR 2024

• Sales expected to remain stable or decline slightly compared with the previous year on a constant-currency basis
• Adjusted EBIT margin of around $10.0 \%$ to $12.0 \%$ (2023: $10.3 \%$ )
• Sales and earnings dynamics are expected to improve significantly in the fourth quarter of 2024 due to expected signing of further additional orders with customers as well as shifts in deliveries from Q3 to Q4 2024
• Investments in tangible and intangible assets combined of around $6.0 \%$ to $8.0 \%$ of sales (2023: 6.7\%)
  

FOCUS IN 2024 AND BEYOND

• Maintaining cost discipline throughout the company given earnings improvement measures implemented
• Reaching pre-pandemic efficiency levels e.g. due to efficiency gains and structural measures established in supply chain
• Continue to grow footprint in selected life science segments with shorter time to market and/or other market mechanics
• Manage and process M\&A opportunities according to external growth and diversification strategy
• Execute deal pipeline regarding new development and manufacturing agreements
• Continue leveraging the combined customer base of both, STRATEC and Natech

QUESTIONS

ANSWERS

APPENDIX

ADJUSTMENTS 9M 2024

EBIT

€ 000s	$9 \mathrm{M} / 2024$	$9 \mathrm{M} / 2023$
Adjusted EBIT	14,769	16,222

Adjustments:

PPA amortization	$-2,772$	$-1,713$
Other ${ }^{1}$	$-2,052$	$-1,217$
EBIT	9,945	13,292

${ }^{1}$ Including advisory expenses and restructuring expenses relating to M\&A activities, as well as one-off personnel expenses of $€ 1.7$ million in connection with the departure of a board member in the third quarter of 2024

Consolidated net income

$€ 000 s$	$9 \mathrm{M} / 2024$	$9 \mathrm{M} / 2023$
Adjusted consolidated net income	8,139	9,742
Adjusted earnings per share in $€$ (basic)	0.67	0.80

Adjustments:

PPA amortization	$-2,772$	$-1,713$
Other ${ }^{1}$	$-2,052$	$-1,217$
Taxes on income	1,156	714
Consolidated net income	4,471	7,526
Earnings per share in $€$ (basic)	0.37	0.62

[^0]
[^0]: ${ }^{1}$ Including advisory expenses and restructuring expenses relating to M\&A activities, as well as one-off personnel expenses of $€ 1.7$ million in connection with the departure of a board member in the third quarter of 2024

CONTACT

STRATEC SE

Gewerbestr. 37
75217 Birkenfeld
Germany

Phone +497082 7916-0
Fax +49 7082 7916-999
www.stratec.com

CONTACT

Jan Keppeler, CFA
Head of Investor Relations, Sustainability \& Corporate Communications

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