Strattec Security Corporation · NASDAQ:STRT
Strattec Security — Sidoti & Company Presentation (March 2021)
37 slides from Strattec Security's conference presentation, Mar 25, 2021
Slide 1: Sidoti & Company
Sidoti & Company March 25, 2021 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 2: Disclosure for Presentation on March 25, 2021
Disclosure for Presentation on March 25, 2021 This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include expected future financial results, product offerings, global expansion, liquidity needs, fina
Slide 3: Frank J. Krejci, President & CEO
Frank J. Krejci (CRAY’ CHEE) President & CEO 3 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 4: Background Information
Background Information 4 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 5: STRATTEC – Facts & Figures
STRATTEC – Facts & Figures Headquarters: Milwaukee, Wisconsin Established: 1908 Formerly part of Briggs & Stratton Corporation Sales 600 Spun-off in February of 1995 487 500 Independent, publicly traded (NASDAQ) STRT 411 401 417 439 385 400 Employees: ~4,000 348 $M USD 298 300 261 279
Slide 6: Vehicle Access Systems Technology (VAST)
VEHICLE ACCESS SYSTEMS TECHNOLOGY (VAST) • Unique joint venture partnership (STRATTEC, Two Privately Held Companies - ADAC Automotive, and WITTE Automotive) • Shared technology and complimentary products • Joint investments outside of our home markets of North America and Europe (China, India, and B
Slide 7: Sales by Customers and Products
Sales by Customers and Products Customers Products Fiat Chrysler Miscellaneous Automobiles Industrial Hyundai/Kia 1% 22% 5% Honda Driver Power Access 5% Controls & Latches 8% 29% Commercial OEM Service & Other & Aftermarket 11% OEMs 13% Tier 1 Customers Door Handles 15% General & Trim Components Mot
Slide 8: Facilities
Facilities Milwaukee, WI Auburn Hills, MI • STRATTEC Headquarters • STRATTEC Power Access HQ • Manufacturing • STRATTEC Sales Office • Engineering • Engineering • Testing • Program Management El Paso, TX (Distribution) SMO I SMO II ADAC STRATTEC de Mexico STRATTEC Mexico Operations - Juarez, Mexico
Slide 9: Patrick J. Hansen, Senior Vice President & CFO
Patrick J. Hansen Senior Vice President & CFO 9 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 10: Financial Information
Financial Information 10 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 11: Outlook Going Forward for Fiscal Year 2021
Outlook Going Forward for Fiscal Year 2021 • Net Sales during the 2nd Quarter ended December 2020 were $127.4 million. Customer sales demand will remain relatively strong during the upcoming third quarter as we continue to roll out the Ford F-150 power end gate, but will be impacted by supplier part
Slide 12: Statements of Income 2nd Quarter December 2020 & 2019
Statements of Income 2nd Quarter December 2020 & 2019 (in thousands of USD) Actual % of Actual % of QTR Dec 2020 Net Sales QTR Dec 2019 Net Sales Net Sales $ 127,360 $ 106,283 Cost of Goods Sold 105,119 82.5% 94,574 89.0% Non Cash Compensation Expense - 0.0% 1,376 1.3% Gross Profit 22,241 17.5% 10,3
Slide 13: Sales Growth
3 Year and Six Months Ended Fiscal 2021 Net Sales Growth (in millions $) $500 $487 $439 $400 $385 $300 $254 $226 $200 $100 $- FY 2018 FY 2019 FY 2020* FY 2020 FY 2021 (6 months) (6 months) *FY 2020 was impacted by General Motor UAW strike that reduced sales by $10 million and COVID-19 by $78 million
Slide 14: 3 Year Adjusted EPS and Six Months FY2021
3 Year Adjusted EPS and Six Months FY2021 $5.00 $3.96 $4.00 $3.39 $3.00 $2.84 $2.00 $0.89 $1.00 $- $(1.00) $(2.00) $(2.04) $(3.00) FY 2018 FY 2019* FY 2020** FY 2020 FY 2021 (6 months) (6 months) adjusted *Adjusted for Non-Cash Pension Settlement and compensation charges of $36.0 million pre-tax. **
Slide 15: 3 Year and 6 Month EBITDA Summary
3 Year and 6 Month EBITDA Summary $40 $35 $28.9 $30.1 $28.7 $30 $25 $20 $15.2 $14.4 $15 $10 $5 $- FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 (6 months) (6 months) NOTE: The fiscal 2019 EBITDA was adjusted to add back the pre-tax/non-cash pension settlement charge of $31.8 million and non-cash compensat
Slide 16: Fiscal Year End Capital Spending and Depreciation Expense
4 Fiscal Year End Capital Spending Depreciation Expense and Projected FY 2021 (in millions $) $40 $37.0 $35 $30 $24.1 $25 $19.3 $20.0 $20 $14.6 $17.5 $17.2 Capital $15 $12.4 $12.0 Spending $11.4 $10 Depreciation $5 Expense $0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Projected NOTE: FY 2017 STRATTEC s
Slide 17: Fiscal Year End Debt Outstanding
3 Fiscal Year End Debt Outstanding and as of December 27, 2020 (in millions $) $60 $51.0 $50 $42.0 $40 ADAC STRATTEC $28.0 $35.0 ADAC $30.0 $30 STRATTEC ADAC $24.0 STRATTEC $17.0 ADAC $22.0 STRATTEC $20 $17.0 ADAC $16.0 STRATTEC STRATTEC $14.0 ADAC $10 $23.0 STRATTEC $18.0 STRATTEC $18.0 STRATTEC ST
Slide 18: Capitalization as of December 27, 2020 and prior years
Capitalization as of December 27, 2020, June 28, 2020, June 30, 2019 and July 1, 2018 (in millions $) December 27, 2020 June 28, 2020 June 30, 2019 July 1, 2018 Total Debt $22.0 $35.0 $42.0 $51.0 Less: Cash & Cash Equivalents ($10.4) ($11.8) ($7.8) ($8.1) Total Net Debt $11.6 $23.2 $34.2 $42.9 Share
Slide 19: Frank J. Krejci, President & CEO
Frank J. Krejci (CRAY’ CHEE) President & CEO 19 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 20: Product Information
Product Information 20 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 21: Core Products: Security Products
Core Products: Security Products Locksets & Keyfobs Start Systems, Column Locks (mechanical and electrical) 21 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 22: Core Products: Access Products
Core Products: Access Products Latch Products Power Access Systems 22 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 23: Industry Leading Technology
Industry Leading Technology • Winner of two PACE awards in 2018 and 2019 and 2020 GM Innovation award (one of four awarded worldwide) • STRATTEC’s innovation provided the Power Tailgate solution allowing GM to be first to market with this feature. This option has been the focus of GM’s ad campaign t
Slide 24: Power Tail Gate Sales Content Opportunity
Power Tail Gate Sales Content Opportunity • Chevrolet Silverado option launched in 2019 with current consumer take rate in excess of 20%. • Ford F-150 Pickup option launched September 2020. • Opportunity for higher sales content and profitability when this option at Ford expands to the F-250 and the
Slide 25: Vehicle Access Systems Technology d/b/a VAST Automotive Group
Vehicle Access Systems Technology d/b/a VAST Automotive Group 25 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 26: Vehicle Access Systems Technology
VEHICLE ACCESS SYSTEMS TECHNOLOGY Founded 1899 Founded 1908 Founded 1975 HEADQUARTERS: HEADQUARTERS: HEADQUARTERS: Velbert, Germany Milwaukee, Wisconsin, U.S. Grand Rapids, Michigan, Privately-held Publicly-traded U.S. EMPLOYEES: 4,000 (STRT Nasdaq) Privately-held Company LOCATIONS: EMPLOYEES: 4,000
Slide 27: VAST China growth and results
• Significant growth in China with new paint and assembly facility is starting up in calendar years 2021 and 2022. • VAST China’s major customers are Volkswagen, General Motors, Volvo, and Ford. • VAST China’s sales in Fiscal Year 2020 was $152.0 million US dollars. • Fiscal year 2021 six months end
Slide 28: Summary
Summary • Product Growth primarily in Power Access Products (Power End Gates with General Motors Chevrolet Silverado and FORD F-150 Pickup Trucks). • Financially strong Balance Sheet & Cash Flow • Defined Benefit Pension Obligation behind us • Working to Improve Gross Profit Margins through Cost Red
Slide 29: Questions?
Questions? 29 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 30: Appendix
Appendix 30 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 31: Income Statement YTD December 2020 & 2019
Income Statement YTD December 2020 & 2019 (in thousands of USD) Actual YTD % of Actual YTD % of Dec 2020 Net Sales Dec 2019 Net Sales Net Sales $ 253,594 $ 226,245 Cost of Goods Sold 208,842 82.4% 197,284 87.2% Non Cash Compensation Expense - 0.0% 2,742 1.2% Gross Profit 44,752 17.6% 26,219 11.6% Se
Slide 32: Balance Sheet (December 2020)
Balance Sheet (December 2020, in thousands of USD) December 27, 2020 June 28, 2020 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 10,432 $ 11,774 Receivables, net 85,796 41,955 Inventories, net 56,333 54,400 Other current assets 13,348 17,239 Total Current Assets 165,909 125,368 Inve
Slide 33: Cash Flow Statement YTD December 2020 & 2019
Cash Flow Statement YTD December 2020 & 2019 (in thousands of USD) Actual YTD Actual YTD Dec 2020 Dec 2019 Cash Flows From Operating Activities: Net Income (Loss) $ 19,646 $ 1,585 Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: Depreciation 9,797 9,580 Loss (Gain) on In
Slide 34: Vehicle Access Systems Technology
34 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 35: VAST Formed: 2000
VAST Formed: 2000 - Milwaukee, Wisconsin- Founded 1908, Public Company 1995. - Velbert, Germany – Founded 1899, Private - Grand Rapids, Michigan– Founded 1975, Private - 33% Ownership by STRATTEC (2001) - 51% Ownership by STRATTEC (2006) - 80% Ownership by STRATTEC (2008) - 16.6% Ownership by STRATT
Slide 36: Global Presence
GLOBAL PRESENCE Germany 57 - 10 1-4 France 9 6-7 11 Czech Republic 1-3 8 12 Bulgaria 12 11 United States 18 1013 Manufacturing Sites 4 5 India 15 14 1 U.S., Milwaukee 6 1317 2 U.S., Grand Rapids Mexico 3 U.S., Saranac 4 U.S., Muskegon (3) 5 Mexico, Juarez (3) Engineering Centers 6 Mexico, Leon 1 U.S
Slide 37: VAST Customers
VAST Customers Passenger Vehicle Manufacturers Commercial Vehicle Manufacturers System Suppliers 37 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
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