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ALL ON THE RADAR IR PRESENTATION January 2025
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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. 2
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Leading OEM player for automation solutions for the diagnostics industry and translational research Three decades of experience in highly regulated healthcare markets and growing technology pool Around 1.500 employees worldwide Around 50% allocable to R&D Production sites in Germany (HQ), Switzerland, Hungary, Austria and in the United States High number of systems installed globally Around 15,000 medium to high throughput systems Around 40,000 low throughput systems Sales of € 261.9 million in 2023 CAGR sales since IPO in 1998: ~14% Sales split 2023: Systems 44% Service parts and consumables 37% Development and services 19% STRATEC AT A GLANCE SELECTED PRODUCTS 3
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SOCIAL RESPONSIBILITY Secure diverse and inclusive work environment Strong policies and measures to promote an open, tolerant and discrimination-free corporate culture Extensive occupational health/safety policies and programs CORPORATE SOCIAL RESPONSIBILITY 4 Participant of the UN Global Compact: Further alignment of strategies and operations to the T en Principles of the UN Global Compact on human rights, labor, environment and anti-corruption / SDGs 1 30% absolute reduction of scope 1 and 2 emissions by 2030 (versus 2019) ENVIRONMENTAL RESPONSIBILITY Combat climate change Greenhouse gas reduction target 1 in-line with Paris agreement STRATEC reduced its total Scope 1 and 2 emissions by 57% since 2019 Unavoidable Scope 1 and 2 emissions fully compensated by certified emission reduction projects QUALITY MANAGEMENT Highest quality standards Established high-performance, certified quality management system Ensuring consistently high product quality Strong audit track record (regarding inspections by customers and regulatory authorities)
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UNIQUE POSITION WITHIN THE VALUE CHAIN Partner Market Access Reagents Plastic Consumables Software Analyzer Systems STRATEC provides instrumentation, consumables, software and automation solutions OEM development and manufacturing Around 10,000 fully automated analyzer systems manufactured annually Wide range of intellectual property rights / broad technology pool Long market lifecycles lead to longstanding partnerships Product lifecycles for a system typically in an area of 12 to 15 years Expanding installed base of systems Product enhancement and extension drives value / Life cycle management Development and market launch of successor product 2 to 4 years development phase Another 5 years of service parts & consumables 12 to 15 years Marketing phase of the analyzer system Service part & consumables Indicative revenue characteristics of an analyzer OEM project Long-term contractual setup Milestone payments during development stage (linked to agreed development budget and development targets) Operating sales during series production stage - minimum volume commitment by partner, firm transfer price) Recurring sales from service parts & consumables strong commitment by both partners Shared responsibilities 5
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ACTIVE IN FAST GROWING SEGMENTS 6 IVD MARKET SEGMENTS / IVD MARKET: ~100 BILLION USD IVD market by technologies IVD market by product group Molecular Diagnostics Random access analyser systems (mid-to-high throughput) Smart consumables (multiplexing) POC devices (multiplexing) with smart consumables Focus on market segments with above average complexity and growth Immunoassay Random access analyzer systems (mid-to-high throughput) Classic plastic consumables Smart consumables Hematology & other routine testing Decentralized testing solutions Veterinary diagnostics Plastics Further specialities / focus areas Immunohematology Complex Sample Processing Tissue Diagnostics Translational Research Source: MarketsandMarkets Research; own estimates
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BENEFITTING FROM OUTSOURCING TREND OUTSOURCED VS IN HOUSE INSTRUMENTATION MARKET 7 Proportion of outsourced instrumentation developments over time The majority of instrumentation equipment in the IVD market is still developed in-house by diagnostics companies. Share of outsourced developments has already increased significantly over the last couple of years. Past Ongoing paradigm shift even within the „blue chips“ towards outsourcing Trend of outsourcing towards specialized players set to continue, due to: Engineering of automation solutions often not core competence of diagnostics companies Shorter development timeframes due to already existent technology pools Guaranteed project budget and firm transfer prices Keeping up with regulatory developments easier for specialized players Structured processes in order to address end customer needs, such as ease of use, user experience, workflow efficiencies, remote access, serviceability and preventive maintenance
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Service parts and consumables (37% of sales) Maintenance parts Spare parts Classic plastic consumables (eg. Pipetting tips, reaction vessels) Smart consumables (highly complex cartridges; microfluidics, molding, mastering and coating technologies) Fueled by growing installed base and increasing complexity Continuously growing number of active systems in the lab Strong upward trend in the average complexity of systems STRONG RECURRING REVENUE BASE 8 Sales split 2023 Installed base 1 Mid to high throughput systems 1 Estimated with the assumption of an average six year replacement cycle in the lab SIMOA TM 24-ASSAY DISC Quanterix VITEK ® MS Disposable target slide bioMérieux Smart consumables Classic consumables Stackable Cuvette STRATEC Perestaltic Pump STRATEC Service and spare parts Installed base 1 Diatron Installed base (number of system) Systems 44% Development and Services 19% Service parts and consumables 37% 13,898 14,612 15,139 15,134 12,000 13,000 14,000 15,000 16,000 2020 2021 2022 2023 35,340 37,008 39,061 39,772 32,000 34,000 36,000 38,000 40,000 42,000 2020 2021 2022 2023
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STRONG LONG-TERM CUSTOMER RELATIONSHIPS A SELECTION OF STRATEC CUSTOMERS 9 Source: IVD News / non-public companies estimated / non-reported sector sales estimated STRATEC customer Not a STRATEC customer … And other technology pioneers GLOBAL TOP 20 IVD COMPANIES Sales 2023 (USD billion) 1. Roche 14.2 2. Abbott 10.0 3. Danaher 9.6 4. Siemens 4.8 5. Thermo Fisher 4.4 6. Becton Dickinson 3.6 7. bioMerieux 3.3 8. Sysmex 3.1 9. QuidelOrtho 3.0 10. Exact Sciences 2.5 11. Illumina 2.2 12. CH Werfen ( Inova, IL, Biokit) 2.1 13. Hologic 1.8 14. Bio-Rad Labs 1.5 15. Agilent Tech 1.5 16. Revvity (formerly PerkinElmer) 1.5 17. Shenzhen Mindray 1.4 18. DiaSorin 1.2 19. Natera 1.0 20. Qiagen 1.0
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KEY FIGURES - TRACK RECORD CAGR ~7% 10 FINANCIAL REVIEW CAGR ~3% Sales Adjusted EBIT 1 in million € in million € 1 Figures adjusted for comparison; adjusted for depreciation and amortization from purchase price allocation for acquisitions, related integration expenses and other extraordinary effects. Reconciliation to IFRS figures can be found in the respective annual report. 128 144.9 146.9 184.9 207.5 187.8 214.2 250.0 287.3 274.6 261.9 0 50 100 150 200 250 300 350 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 19.5 24.1 26.9 32.3 36.4 26.2 29.3 41.7 54.3 45.1 27.1 0.0 10.0 20.0 30.0 40.0 50.0 60.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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FINANCIAL REVIEW • 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 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 11 9M 2024 AT A GLANCE
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FINANCIALS AT A GLANCE 1 FINANCIAL REVIEW bps = basis points / cc = constant currency 1 To facilitate comparison, figures have been adjust ed 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. 12 € 000s 9M/2024 9M/2023 Change Q3/2024 Q3/2023 Change Sales 176,305 187,680 -6.1% (cc: -6,0%) 57,229 62,674 -8.7% (cc: -9,1%) Adjusted EBITDA 26,329 27,267 -3.4% 9,011 13,370 -32.6% Adjusted EBITDA margin (%) 14.9 14.5 +40 bps 15.7 21.3 -560 bps Adjusted EBIT 14,769 16,222 -9.0% 5,054 9,257 -45.4% Adjusted EBIT margin (%) 8.4 8.6 -20 bps 8.8 14.8 -600 bps Adjusted consolidated net income 8,139 9,742 -16.5% 2,660 5,682 -53.2% Adjusted basic earnings per share (in €) 0.67 0.80 -16.3% 0.22 0.47 -53.2% Basic earnings per share IFRS (in €) 0.37 0.62 -40.3% 0.05 0.42 -88.1%
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FINANCIAL REVIEW SALES DEVELOPMENT 9M 2024 13 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 Sales in € million As of September 30 134.6 158.3 179.1 225.4 207.7 187.7 176.3 0 50 100 150 200 250 9M/18 9M/19 9M/20 9M/21 9M/22 9M/23 9M/24
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FINANCIAL REVIEW ADJUSTED EBIT AND EBIT MARGIN 9M 2024 14 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 Adj. EBIT Adj. EBIT margin Adj. EBIT in € million Adj. EBIT margin in % As of September 30 17.0 20.0 28.1 48.7 38.1 16.2 14.8 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 0 5 10 15 20 25 30 35 40 45 50 55 60 9M/18 9M/19 9M/20 9M/21 9M/22 9M/23 9M/24
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FINANCIAL REVIEW CASH FLOW AND NET DEBT 15 € 000s 9M/2024 9M/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 € 000s 9M/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% 1 Total investments in intangible and tangible assets in % of sales LTM = Last twelve months • 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 1 at 7.0% in-line with full year target corridor of 6.0% to 8.0% • Net debt / LTM EBITDA of 3.1x
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FINANCIAL REVIEW 16 SALES BY OPERATING DIVISIONS H1/2024 54.4 44.4 25.5 0.6 35.8 52.3 30.4 0.7 0 10 20 30 40 50 60 Systems Service parts & consumables Development & services* Others H1/2023 H1/2024 +5.0% (+4.8% at cc) +17.7% (+17.5% at cc ) +18.8% (+18.9% at cc ) Sales in € million 20.4% 25.5% 35.5% 43.9% 43.5% 30.1% 0% 20% 40% 60% 80% 100% H1/2023 H1/2024 Systems Service parts and consumables Development & Services* Others In % of total sales -34.2% (-34.4% at cc ) As of June 30 cc = at constant currency *including pre-series systems and all earlier generations
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OUTLOOK FINANCIAL GUIDANCE FOR FISCAL YEAR 2024 17 • 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%)
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OUTLOOK 18 FOCUS IN 2024 AND BEYOND • Manage and process M&A opportunities according to external growth and diversification strategy • Maintaining cost discipline throughout the company given earnings improvement measures implemented • Continue to grow footprint in selected market focus areas • Execute deal pipeline regarding new development and manufacturing agreements • Continue leveraging the combined customer base of both, STRATEC and Natech
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APPENDIX 19
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APPENDIX KEY FIGURES AT A GLANCE 1 1 Figures adjusted for comparison; adjusted for depreciation and amortization from purchase price allocation for acquisitions, related integration expenses and other extraordinary effects. Reconciliation to IFRS figures can be found in the respective annual report. IFRS (€ million) 2019 2020 2021 2022 2023 Sales 214.2 250.1 287.3 274.6 261.9 Adjusted EBIT 29.3 41.7 54.3 45.1 27.1 Adjusted EBIT margin (%) 13.7 16.7 18.9 16.4 10.3 Adjusted Consolidated net income 24.1 35.2 45.1 34.7 16.7 Adjusted Earnings per share (€) 2.01 2.92 3.73 2.86 1.37 Dividend per share (€) 0.84 0.90 0.95 0.97 0.55 No. of employees 1,302 1,319 1,398 1,481 1,522 Total assets 299 332 369 398 467 Equity ratio (%) 53.1 52.0 55.8 56.6 50.0 Free cash flow -6.4 10.0 43.3 -8.7 -24.7 20
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Consolidated net income EBIT ADJUSTMENTS 9M 2024 21 € 000s 9M/2024 9M/2023 Adjusted EBIT 14,769 16,222 Adjustments: PPA amortization Other 1 -2,772 -2,052 -1,713 -1,217 EBIT 9,945 13,292 € 000s 9M/2024 9M/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 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 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 APPENDIX
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APPENDIX SHAREHOLDER STRUCTURE (AS OF: JANUARY 2024) SHARE IPO Aug. 1998 Number of shares 12,157,841 Share price (01/09/2025) € 29.50 Market capitalization € 359 million Fixed and family ownership (incl. their investment companies) Free float Institutional investors > 3%: Brown Capital Management Invesco Juno Investment Partners Union Investment Privatfonds 40.3% 59.7% 22
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STRATEC SE Gewerbestr. 37 75217 Birkenfeld Germany Phone +49 7082 7916-0 Fax +49 7082 7916-999 www.stratec.com CONTACT THANK YOU FOR YOUR ATTENTION CONTACT Jan Keppeler, CFA Head of Investor Relations, Sustainability & Corporate Communications Phone +49 7082 7916-6515 j.keppeler@stratec.com 23