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Midwest IDEAS Conference August 26, 2025 Nasdaq: STRT Jennifer Slater President and CEO Matthew Pauli Senior Vice President and CFO www.strattec.com
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Safe Harbor Statement 2 Safe Harbor Statement Certain statements contained in this presentation contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,” and “would.” Such forward-looking statements are inherently subject to many uncertainties in the Company’s operations and business environment. These uncertainties include general economic conditions, in particular, relating to the automotive industry, consumer demand for the Company’s and its customers’ products, competitive and technological developments, customer purchasing actions, changes in warranty provisions and customer product recall policies, work stoppages at the Company or at the location of its key customers as a result of labor disputes, foreign currency fluctuations, uncertainties stemming from U.S. trade policies, tariffs and reactions to same from foreign countries, the volume and scope of product returns, matters adversely impacting the timing and availability of component parts and raw materials needed for the production of our products and the products of our customers and fluctuations in our costs of operation (including fluctuations in the cost of raw materials). Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this presentation and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances occurring after the date of this presentation. In addition, such uncertainties and other operational matters are discussed further in the Company’s quarterly and annual filings with the Securities and Exchange Commission. Use of Non-GAAP Financial Metrics and Additional Financial Information In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Strattec provides Adjusted Non-GAAP information as additional information for its operating results. References to Adjusted Non-GAAP information are to non-GAAP financial measures. These measures are not required by, in accordance with, or an alternative for, GAAP and may be different from non-GAAP financial measures used by other companies. Strattec’s management uses these measures for reviewing the financial results of Strattec for budget planning purposes and for making operational and financial decisions. Management believes that providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, help investors evaluate Strattec’s core operating and financial performance and business trends consistent with how management evaluates such performance and trends. Additionally, management believes these measures facilitate comparisons with the core operating and financial results and business trends of competitors and other companies.
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3 Delivering Innovative, Comprehensive Range of Solutions to the Automotive Industry Leader in Smart Vehicle Access, Security and Authorization Solutions Nasdaq: STRT Founded: 1908 Public: 1995 Market Capitalization: $296M Recent Closing Price: $75.89 52-week High/Low: $83.00 / $31.57 Avg. Trading Vol (3 mos): 100,800 Shares Outstanding: 4.2M Institutional Ownership: 68% Insider Ownership: 9% Market data as of market close August 19, 2025 Shares Outstanding as of Q4 FY2025 Ownership as of most recent filing.
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25% 25% 18% 13% 11% 8% Door Handles Power Access Keys & Locksets Latches Other Aftermarket Leading Capabilities & Low-cost Manufacturing Core Capabilities • Design and Engineering • Quality Control and Inspection • Injection Molding • Zinc Die Cast • Stamping • Plating • Assembly 4 Milwaukee, WI • STRATTEC HQ • Sales • Engineering • Testing • Manufacturing • Die cast • Stamping • Plating Auburn Hills, MI • Sales • Engineering • Program Management • Prototype Development • Testing Juarez, Mexico (3 facilities) • Engineering • Testing • Manufacturing • Assembly • PCBA • Injection Mold Leon, Mexico • Injection Molding • Door Handle Mfg and Painting El Paso, TX • Distribution FY2025 REVENUE: $565.1M 12% Com’l & Other OEMs 29% 23%12% Tier 1 14% 10% Sales By Customer Sales By Product
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Building the Team • Investing in upgrading talent and enhanced leadership • Breaking down organizational silos • Expanding Capabilities – Supply Chain and Operations • Increasing accountability and sense of urgency • Driving change Driving to Operational Excellence • Optimizing cost structure (Milwaukee shift reduction, Mexico restructuring) • Continued focus on cost optimization in supply chain and manufacturing Creating Revenue Opportunities • Captured $8 million in annualized pricing in FY2025 • Advancing strategic product portfolio review • Creating brand • Differentiate from the competition - Expanding customer base Developing Modernization Plan • Upgrade equipment • Right size Milwaukee headquarters • Implement information systems to better capture data for analysis • Implement systems for supply chain, production, transportation Transforming Strattec 5 Making Rapid Progress…More to be Done
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6 FY25 Value Creation $25.4 $34.4 $42.6 $62.1 $84.6 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 • Margin expansion and working capital improvements drove strong cash generation • Cash balance enables investment in organic growth opportunities and operational initiatives • Defensive buffer in weakening market conditions and tariff recovery lag CASH SUPPORTS TRANSFORMATION EFFORTFOCUSED ON OPERATIONAL EXCELLENCE • Simplified organization including 15% headcount reduction • Modernizing infrastructure and systems • Implementing best-in-class processes • Strengthening operational discipline and accountability INVESTING IN TALENT • Created top-tier executive team • Continue to improve capabilities in critical areas of business ✓ Operations and supply chain ✓ Finance ✓ Commercial REFINE AND ENHANCE PRODUCT PORTFOLIO • Advancing strategic product portfolio review • Expand customer base with North America as the priority • Product focus areas: digital key and power access solutions ($ in millions)
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Platform Solutions Power Access Solutions Tailgates and liftgate Sliding and swing doors Decklid and frunk VEHICLE ACCESS Latches Tailgates and liftgate Hood and frunk Seat back Power Access Components SELECT USER INTERFACE CONTROLS Steering Wheel Switches Electronic Shifter Modules Transmission Paddle Shifters SECURITY & AUTHORIZATION Passive Entry Passive Start Systems Key Fobs & Start Stop Buttons Locksets & Steering Column Locks Digital Key Fob 7 Door handles PRIORITIZED GROWTH LEGACY CONTINUITY
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OPERATIONAL CASH FLOW: Generated $30.2 million in Q4 • FY2025 cash from operations of $71.7 million REVENUE GROWTH: Primarily driven by strategic pricing and higher demand • Q4 FY25 revenue up $9.0 million, or 6.3%, to $152.0 million • FY 2025 5% revenue growth reflects net new programs and higher demand PROFITABILITY: FX benefit, restructuring actions, pricing and higher production volume drive gross margin expansion for quarter • FY 2025 gross margin expanded 280 basis points as favorable FX, volume and restructuring more than offset prior-year one time pricing benefit and increased wages in Mexico DELIVERING RESULTS FROM TRANSFORMATION PROGRESS: • FY 2025 Adjusted EBITDA margin of 7.7% expanded 220 basis points • Still early innings of transformation to advance Strattec 8 Strattec Q4 FY2025 Quarter and Fiscal Year Highlights
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Financial Review Progress demonstrated in margin expansion and cash generation 9
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$485.3 $452.3 $493.0 $537.8 $565.1 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 ($ in millions) Strong Customer Relationships & Diverse Products NET SALES GROWTH FY25 net sales up $27.3 million, or 5.1% vs. FY24 + $14.0 million production volume + $10.8 million net new program launches + $7.2 million FY25 strategic pricing + $5.1 million new/higher value content - $9.7 million PY onetime price recoveries Q4 FY25 net sales up $9.0 million, or 6.3% + $3.7 million strategic pricing + $4.1 million higher demand for platforms + $1.2 million net new program launches $143.1 $152.0 Q4 FY24 Q4 FY25
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($ in millions; narrative compared with prior-year period unless otherwise noted) Higher Gross Profit and Margin Expansion GROSS PROFIT & MARGIN (QTR) 11 11.4% 13.2% GROSS PROFIT & MARGIN (YTD) $65.5 $84.6 FY2024 FY2025 $18.6 $25.4 Q4 FY24 Q4 FY25 16.7%13.0% 15.0%12.2% Gross margin expanded 370 basis points in Q4 + Stronger US dollar • $3.0 million, or 210 bps, FX benefit • Current rate of ~20 MXN peso at 5-year average + Margin-accretive strategic pricing actions and higher sales + $1.7 million in tooling gains + $1.3 million in restructuring savings, on track for $5 million annualized – Net $1.6 million tariff expenses as recovery process lags cost – Increased labor costs in Mexico YTD gross margin expanded 280 basis points + FX tailwind contributed 250 basis points + Delivered $7.2 million of margin accretive pricing + Operational leverage and restructuring savings of $1.4 million – Partially offset by Mexico labor costs (govt mandated) and net $2.2 million in tariff impacts – Prior year included $9.7 million of onetime pricing recoveries
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($ in millions; narrative compared with prior-year period unless otherwise noted) Strengthening Operations for Efficiency ES&A(1) | % OF SALES (QTR) 12 11.4% 13.2% $8.9 $16.9 6.2% 11.1% Q4 FY24 Q4 FY25 ES&A(1) | OF SALES (YTD) (1) Engineering, selling and administrative expenses $47.7 $61.8 8.9% 10.9% FY2024 FY2025 Increase in SAE(1) exaggerated with PY $4.7 million benefit of one- time engineering (ED&D) recovery • Holds steady at 11.1% of sales • $2.2 million incremental incentive and bonus compensation • $1.0 million in outside services and business transformation costs • $0.7 million reduction in restructuring charges (reclassified to Other income/expenses) Investments in leadership expected to deliver process efficiencies and related savings over time • $6.7 million incremental incentive and bonus compensation with strong performance for the fiscal year • Increase includes $1.0 million incremental executive transition costs, $1.0 million business transformation costs and restructuring costs (after reclassification of restructuring charges) • Prior year included onetime favorable ED&D recovery of $4.7 million
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13 ($ in millions except earnings per share data; narrative compared with prior-year period unless otherwise noted) Enhanced Earnings Power (1) Net Income Attributable to Strattec (2) Adjusted Net Income, Adjusted Diluted Earnings per Share, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP metrics. Refer to the reconciliation of GAAP to non-GAAP metrics in the supplemental tables of this presentation. ADJ. NET INCOME(2) (QTR) $9.8 $8.5 $2.42 $2.06 Q4 FY24 Q4 FY25 ADJ. NET INCOME(2) (YTD) $12.3 $21.9 $3.08 $5.38 FY2024 FY2025 NET INCOME(1) (QTR) $9.6 $8.3 $2.39 $2.01 Q4 FY24 Q4 FY25 NET INCOME(1) (YTD) $16.3 $18.7 $4.07 $4.58 FY2024 FY2025 ADJ. EBITDA(2) & MARGIN (QTR) $13.8 $13.0 9.6% 8.5% Q4 FY24 Q4 FY25 ADJ. EBITDA(2) & MARGIN (YTD) $28.9 $43.7 5.5% 7.7% FY2024 FY2025 FY2025 Net Income(1) up 14.5% FY2025 Adj. EPS(2) grew 75% to $5.38 + $11.9 million in favorable FX + Higher volume and $7.2 million in pricing - Offset $5.5 million in incremental bonus FY2025 Adj. EBITDA(2) margin expanded 220 basis points • Driven by higher operating income with incremental adjustments of: • $1.2 million stock-based compensation • $1.0 million executive transition costs • $1.0 million business transformation costs • $0.4 million restructuring charges
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14 ($ in millions; narrative compared with prior-year period unless otherwise noted) (1) Free cash flow is a non-GAAP metric defined as cash flow from operations less capital expenditures (CapEx) Strong Cash Generation CAPITALIZATION June 30, 2024 June 29, 2025 Cash and cash equivalents $ 25.4 $ 84.6 Total debt 13.0 8.0 Shareholders’ equity 225.6 246.4 Total capitalization $ 238.6 $ 254.4 Debt / total capitalization 5.4% 3.1% THREE MONTHS ENDED June 30, 2024 June 29, 2025 Cash from operations $ 19.5 $ 30.2 CapEx (3.7) (3.0) Free cash flow(FCF)(1) $ 15.8 $ 27.2 FISCAL YEAR June 30, 2024 June 29, 2025 $ 12.3 $ 71.7 (9.8) (7.2) $ 2.5 $ 64.5 Q4 FY2025 cash flow from operations increased $10.7 million • Higher cash earnings and improved working capital including inventory reduction, tooling recovery, and timing of receivables Reduced debt by $5.0 million to $8.0 million Financial flexibility • $84.6 million in cash • $52 million available under lines of credit FY 2026 CapEx • Planning approximately $13 million Capital priorities • Organic growth initiatives: product portfolio and expanded customer reach • Operational efficiencies & productivity: equipment and systems modernization, people • Conserve cash through uncertain times and moderated market conditions
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REVENUE: Modestly down to flat • Reflects lapping recent product launches, primarily in 2H 2025 • Customers in between launch cycles • Weak market forecasts reflect continued uncertainty MARGINS: Modest improvement • Captured low hanging fruit • Volume impacts, material and labor cost increases • Continued operational improvements CASH GENERATION: Expect to normalize • FY 2025 captured $12 million in latent preproduction costs and $25 million in working capital initiatives CONTINUE TRANSFORMATION PROGRESS: • Productivity enhancements and supply chain improvements • Investments in product portfolio enhancements, marketing and branding 15 Strattec FY 2026 Expectations
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Early stages of transformation to strengthen earnings power and competitive position Reimagining product portfolios to drive sustainable growth Improving operational efficiency to drive profits and consistency Developing team and talent to execute change Strong balance sheet to support modernization and upgrade investments Strattec Investment Rationale 16
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Q&A 17
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August 26, 2025 www.strattec.com Nasdaq: STRT 18 Investor Relations Contact: Deborah K. Pawlowski, Alliance Advisors IR 716-843-3908 dpawlowski@allianceadvisors.com
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Supplemental Slides August 26, 2025 www.strattec.com Nasdaq: STRT 19
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Well positioned to manage dynamic tariff environment. • ~93% of US imports are USMCA compliant and are not subject to additional tariffs. • Strong balance sheet and cost focus provide support as mitigation actions are implemented. • Numerous levers available to achieve 100% tariff mitigation. 20 T A R I F F I M P A C T Reassessing supplier and logistics network. Active customer engagement on mitigation plans. Established daily “T ariff T ask Force” to align cross functionally. Engaged third party to assist in review of USMCA compliance & HTS code classification. Indirect: • Uncertainty in potential changes in North American automotive production schedules • Identified additional areas for operational cost improvements (i.e. logistics) M I T I G A T I O N A C T I O N S Direct: • Current incremental tariffs impact ~$30m of sales (6% of consolidated sales) • Total estimated tariff costs are $5 million to $7 million before mitigation efforts* Manageable Tariff Exposure * Tariff impact as determined on May 12,2025
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Served Customer Vehicles 21 The vehicles listed below include models of various powertrain types—including electric (EV), hybrid, and internal combustion engine (ICE) platforms. Because our products are powertrain agnostic, our technologies can be integrated across these different configurations without significant modification. This enables consistent functionality regardless of propulsion system. Many of the vehicle models listed are offered in EV, hybrid, or ICE variants—and our components are used across all of these powertrain options. Passenger Cars Light Trucks, Vans, and Sport Utility Vehicles * Vehicles produced outside of North America, or both in and outside North America. EV – Electric Vehicle PH – Plug-In Hybrid Acura ZDX Aston Martin Vantage * Ford Focus Aston Martin AMR24 * Cadillac ATS * Ford Mustang Aston Martin DB 12 * Cadillac CT4 Volkswagen Jetta Aston Martin DBS * Cadillac CT5 * Aston Martin DBX * Cadillac Celestiq Aston Martin Valhalla * Chevrolet Corvette Aston Martin Valkyrie * Chevrolet Corvette E-Ray Aston Martin Valour * Dodge Charger Acura MDX Chevrolet Blazer Chrysler Pacifica GMC Savana Jeep Wrangler/Wrangler Unlimited Acura RDX Chevrolet Bolt Dodge Durango GMC Sierra & Sierra HD Kia Carnival * Audi Q5 Chevrolet Cobalt * Dodge Hornet GMC Sierra Pickup Lincoln Aviator Brightdrop EV400 Chevrolet Colorado * Ford Bronco Sport GMC Terrain Lincoln Corsair Brightdrop EV600 Chevrolet Equinox Ford Escape GMC Yukon and Yukon XL Lincoln Navigator Buick Enclave Chevrolet Express Van Ford Expedition Honda Odyssey Ram 1500 Classic Pickup Buick Envista * Chevrolet S-10 * Ford Explorer Honda Passport Ram 1500 Pickup BMW X7 Chevrolet Silverado Ford F-150 Lightning Honda Prologue Ram HD Pickup Cadillac Escalade Chevrolet Silverado & Ford F-Series Pickup Hyundai Staria * Ram REV Pickup Cadillac Escalade IQ Silverado HD Pickup Ford F-Series Super Duty Pickup Jeep Commander * Volkswagen Tiguan Cadillac Lyriq Chevrolet Spin * Ford Maverick Pickup Jeep Compass Volvo Polestar 3 Cadillac Optiq Chevrolet Suburban Ford Mustang Mach-E Jeep Gladiator Volvo EX90 Cadillac Vistiq Chevrolet Tahoe Ford Ranger Pickup * Jeep Grand Cherokee Volvo Heavy Truck Cadillac XT4 Chevrolet Trail Blazer * GMC Acadia Jeep Meridian Cadillac XT5 Chevrolet Traverse GMC Canyon * Jeep Recon Cadillac XT6 Chevrolet Trax * GMC Hummer Jeep Wagoneer
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22 STRATTEC Variety of Competitors Across Product Categories: Door Handles Keys & Locksets Power Access User Interface Controls Wireless Latches Aisin Inteva Shinchang Industry Atech Motorsports Kiekert Stabilus Brose Magna Tokai Rika Group Edscha Marquardt Group U-Shin Ltd. GECOM Corp Mitsuba Valeo Honda Lock Novares HUF Group OHI Automotive
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Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total ADJUSTED NET SALES: Net Sales (GAAP) 135,406 118,532 140,773 143,055 537,766$ 139,052 129,919 144,082 152,013 565,066$ Adjustments: - Retroactive FY23 one-time pricing recovery (7,950) (1,551) (397) 175 (9,723) - - - - - Adjusted Sales (Non-GAAP) 127,456 116,981 140,376 143,230 528,043 139,052 129,919 144,082 152,013 565,066 ADJUSTED EBITDA: Net income attributable to Strattec (GAAP) 4,165$ 1,022$ 1,506$ 9,620$ 16,313$ 3,703$ 1,319$ 5,396$ 8,267$ 18,685$ Net income (loss) attributable to non-controlling interest 290 (242) (380) 447 115 45 79 315 (205) 234 Provision for income tax 1,387 264 546 1,578 3,775 1,498 405 1,644 2,170 5,717 Other (income) expense, net 131 (1,098) 208 (1,958) (2,717) (129) 482 16 (1,189) (820) Investment and interest income (87) (107) (143) (235) (572) (349) (408) (529) (753) (2,039) Interest expense 220 219 222 239 900 295 257 243 212 1,007 Income from operations 6,106 58 1,959 9,691 17,814 5,063 2,134 7,085 8,502 22,784 Adjustments: Depreciation 4,385 4,330 4,059 3,773 16,547$ 3,662 3,544 3,746 3,812 14,764$ Non-cash stock-based compensation 505 479 240 243 1,467 188 891 760 887 2,726 Restructuring and similar charges - - - - - - 265 809 (676) 398 Retroactive FY23 one-time pricing recovery, net (7,078) (641) (298) 24 (7,993) - - - - - Executive transition costs - 774 211 73 1,058 941 921 214 (17) 2,058 Business transformation costs - - - - - 74 215 259 479 1,027 (2,188) 4,942 4,212 4,113 11,079 4,865 5,836 5,788 4,485 20,974 Adjusted EBITDA (Non-GAAP) 3,918$ 5,000$ 6,171$ 13,804$ 28,893$ 9,928$ 7,970$ 12,873$ 12,987$ 43,758$ Adjusted EBITDA as a % of Adjusted Net Sales 3.1% 4.3% 4.4% 9.6% 5.5% 7.1% 6.1% 8.9% 8.5% 7.7% Fiscal 2024 Fiscal 2025 Reconciliation of GAAP to Non-GAAP Financial Measures 23
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Reconciliation of GAAP to Non-GAAP Financial Measures 24 ADJUSTED NET INCOME AND EARNINGS/(LOSS) PER SHARE: Net income attributable to Strattec (GAAP) 4,165$ 1,022$ 1,506$ 9,620$ 16,313$ 3,703$ 1,319$ 5,396$ 8,267$ 18,685$ Adjustments: Restructuring and similar charges 265 3 - 63 331 - 265 809 (676) 398 Retroactive FY23 one-time pricing recovery, net (7,078) (641) (298) 24 (7,993) - - - - - Executive transition costs - 973 211 73 1,257 1,224 1,225 214 115 2,778 Business transformation costs - - - - - 74 215 259 479 1,027 Non-controlling interest impact on above adjustments 1,014 181 55 22 1,272 - - (160) 160 - Tax effect on above adjustments 1,305 (116) 7 (41) 1,155 (292) (384) (376) 107 (945) (4,494) 400 (25) 141 (3,978) 1,006 1,321 746 185 3,258 Adjusted Net Income/(Loss) attributable to Strattec (Non-GAAP) (329)$ 1,422$ 1,481$ 9,761$ 12,335$ 4,709$ 2,640$ 6,142$ 8,452$ 21,943$ Weighted Average Basic Shares Outstanding 3,948 3,976 3,988 3,988 3,975 4,005 4,035 4,039 4,039 4,030 Weighted Average Diluted Shares Outstanding 3,974 3,998 4,017 4,027 4,004 4,046 4,070 4,085 4,105 4,076 Diluted earnings per share (GAAP) 1.05$ 0.26$ 0.37$ 2.39$ 4.07$ 0.92$ 0.32$ 1.32$ 2.01$ 4.58$ Adjusted dilutive earnings/(loss) per share (Non-GAAP) (0.08)$ 0.36$ 0.37$ 2.42$ 3.08$ 1.16$ 0.65$ 1.50$ 2.06$ 5.38$