Strattec Security Corporation · NASDAQ:STRT
Strattec Security — Midwest IDEAS Conference 2021
38 slides from Strattec Security's conference presentation, Aug 20, 2021
Slide 1: Midwest IDEAS Conference
Midwest IDEAS Conference August 20, 2021 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 2: Disclosure for Presentation on August 20, 2021
Disclosure for Presentation on August 20, 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, fin
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 487 485 500 Independent, publicly traded (NASDAQ) STRT 411 401 417 439 385 400 Employees: ~4,000 348 $M USD 298 300 261 27
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 Miscellaneous Industrial Fiat Chrysler 2% Automobiles Honda 18% 4% Driver Power Access Controls & Latches Hyundai/Kia 8% 9% 30% OEM Service & After Market Commercial & 10% Other OEMs 11% Tier 1 Customers Door Handle General 14% & Trim Motors Company
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 2022
Outlook Going Forward for Fiscal Year 2022 • Net Sales during the 4th Quarter ended June 2021 were $110.1 million. Customer sales demand remains strong despite abnormally low dealer inventory. Our 4th Quarter and near term sales will be temporarily impacted by supplier part shortages in semiconducto
Slide 12: Statements of Income 4th Quarter June 2021 & 2020
Statements of Income 4th Quarter June 2021 & 2020 (in thousands of USD) Actual % of Actual % of QTR June 2021 Net Sales QTR June 2020 Net Sales Net Sales $ 110,057 $ 42,117 Cost of Goods Sold 94,805 86.1% 49,685 118.0% Non Cash Compensation Expense - 0.0% 215 0.5% Gross Profit 15,252 13.9% (7,783) (
Slide 13: Income Statement YTD June 2021 & 2020
Income Statement YTD June 2021 & 2020 (in thousands of USD) Actual % of Actual % of YTD YTD June 2021 Ne t Sale s June 2020 Ne t Sale s Net Sales $ 485,295 $ 385,300 Cost of Goods Sold 406,637 83.8% 346,897 90.0% Non Cash Compensation Expense - 0.0% 2,957 0.8% Gross Profit 78,658 16.2% 35,446 9.2% E
Slide 14: 4 Year Sales History
4 Year Sales History (in millions $) $500 $487 $485 $439 $400 $385 $300 $200 $100 $- FY 2018 FY 2019 FY 2020* FY 2021** *FY 2020 was impacted by General Motor UAW strike that reduced sales by $10 million and COVID-19 by $78 million. ** FY 2021 sales impacted by semiconductor chip shortage 14 VEHICLE
Slide 15: IHS Forecast North America Vehicle Build
IHS Forecast Data North America Vehicle Build (in millions of vehicles) July 2020 versus 2021 18 17.1 17 17 16.6 16.8 16 16.2 15 15.1 15.5 15.8 15.1 14 14.7 2020 IHS 2021 IHS 13 12 11 10 2021 2022 2023 2024 2025 Model Year 15 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 16: 4 Year Adjusted EPS Summary
4 Year Adjusted EPS Summary $7.00 $5.85 $6.00 $5.00 $4.00 $3.39 $2.84 $3.00 $2.00 $1.00 $- $(1.00) $(2.00) $(2.04) $(3.00) FY 2018 FY 2019* FY 2020** FY 2021 *Adjusted for Non-Cash Pension Settlement and compensation charges reduced EPS by $7.40. ** Net Loss due to COVID-19 and non-cash compensation
Slide 17: 4 Year EBITDA Summary
4 Year EBITDA Summary $50 $47.7 $45 $40 $35 $28.9 $30.1 $30 $25 $20 $15.2 $15 $10 $5 $- FY 2018 FY 2019 FY 2020 FY 2021 NOTE: The fiscal 2019 EBITDA was adjusted to add back the pre-tax/non-cash pension related settlement charge of $36.0 million. Fiscal 2020 was adjusted for $4.5 million of non-cash
Slide 18: Capital Spending and Depreciation Expense
4 Fiscal Year End Capital Spending Depreciation Expense (in millions $) $40 $37.0 $35 $30 $24.1 $25 $19.3 $19.8 $20 $14.6 $17.5 $17.2 Capital $15 $12.4 Spending $11.4 $10 $8.9 Depreciation $5 Expense $0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 NOTE: FY 2017 STRATTEC spent $24.0 million to construct t
Slide 19: Fiscal Year End Debt Outstanding Summary
4 Fiscal Year End Debt Outstanding Summary (in millions $) $60 $51.0 $50 $42.0 $40 ADAC $35.0 STRATTEC $28.0 ADAC $30.0 $30 STRATTEC ADAC $24.0 STRATTEC $17.0 ADAC $22.0 STRATTEC $20 $17.0 ADAC $16.0 STRATTEC $12.0 STRATTEC $14.0 ADAC $10 $23.0 STRATTEC $18.0 STRATTEC $18.0 STRATTEC STRATTEC ADAC $1
Slide 20: Capitalization as of June 27, 2021
Capitalization as of June 27, 2021, June 28, 2020, June 30, 2019 and July 1, 2018 (in millions $) June 27, 2021 June 28, 2020 June 30, 2019 July 1, 2018 Total Debt $12.0 $35.0 $42.0 $51.0 Less: Cash & Cash Equivalents ($14.5) ($11.8) ($7.8) ($8.1) Total Net Debt (Cash) ($2.5) $23.2 $34.2 $42.9 Share
Slide 21: Frank J. Krejci, President & CEO
Frank J. Krejci (CRAY’ CHEE) President & CEO 21 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 22: Product Information
Product Information 22 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 23: Core Products: Security Products
Core Products: Security Products Locksets & Keyfobs Start Systems, Column Locks (mechanical and electrical) 23 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 24: Core Products: Access Products
Core Products: Access Products Latch Products Power Access Systems 24 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 25: 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 26: 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 27: Vehicle Access Systems Technology
Vehicle Access Systems Technology d/b/a VAST Automotive Group 27 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 28: 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 29: VAST China growth
• 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 2021 was $210.0 million US dollars. • Fiscal year 2021 ended STRATTEC
Slide 30: 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 31: Questions?
Questions? 31 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 32: Appendix
Appendix 32 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 33: Balance Sheet (June 2021)
Balance Sheet (June 2021, in thousands of USD) Actual Actual June 27, 2021 June 28, 2020 ASSETS: (Unaudited) Current Assets: Cash and Cash Equivalents $ 14,465 $ 11,774 Accounts Receivable, net 69,902 41,955 Inventory 70,860 54,400 Other Current Assets 19,677 17,239 Total Current Assets 174,904 125,
Slide 34: Cash Flow Statement YTD June 2021 & 2020
Cash Flow Statement YTD June 2021 & 2020 (in thousands of USD) Actual Actual YTD YTD June 2021 June 2020 Cash Flows From Operating Activities: Net Income $ 29,897 $ (5,857) Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: Depreciation 19,786 19,329 Loss (Gain) on Investm
Slide 35: Vehicle Access Systems Technology
35 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC
Slide 36: 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 37: Global Presence
GLOBAL PRESENCE Sweden 10 Germany 57–9 1-4 6-8 10-11 Czech Republic 1-3 9 12 Bulgaria 13 12 United States 1113 4 5 India 14 6 1416 Mexico Manufacturing Sites 1 U.S., Milwaukee 2 Engineering Centers U.S., Grand Rapids 3 U.S., Saranac 1 U.S., Milwaukee 4 U.S., Muskegon (3) 2 U.S., Auburn Hills 5 Mexic
Slide 38: VAST Customers
VAST Customers Passenger Vehicle Manufacturers Commercial Vehicle Manufacturers System Suppliers 38 VEHICLE ACCESS SYSTEMS TECHNOLOGY WITTE • STRATTEC • ADAC